Policies & IssuesFeb 02, 2022
Jewelers Using Payment Apps Should Know This New Tax RulePolicies & IssuesApr 21, 2022
FTC Looking to Levy First Fine Under New ‘Made in USA’ Rules
It has brought a complaint against a battery maker labeling its products as “Made in U.S.A” when some parts allegedly come from China.
Stock image
Washington, D.C.—The Federal Trade Commission is looking to issue its first fine under the new rules regarding when products can be labeled, marketed, and sold as “Made in the U.S.A.”
The FTC announced last week it has brought a complaint against a company called Lithionics Battery LLC and its founder, owner, and general manager, Steven Tartaglia.
Based in Clearwater, Florida, Lithionics designs and sells batteries and battery accessories for boats as well as recreational and low-speed electric vehicles.
In the complaint, the FTC alleges the company labeled its products with an American flag surrounded by the words “MADE IN U.S.A,” with some product packaging also displaying the statement “Proudly Designed and Built in USA.”
The company used this label and similar origin claims on its website and social media platforms, including in YouTube videos. It also published a chart in its marketing materials highlighting the “advantages” of its products over “imports,” the complaint states.
However, the lithium ion cells the company used were made in China and its battery management systems “incorporate significant other imported components,” the FTC alleges, in violation of the new Made in the USA Labeling Rule.
The attorney listed in court documents as representing Lithionics and Tartaglia, John Dicks II of Akerman LLP, did not respond to an email and voice message left Wednesday seeking comment on the case.
Related stories will be right here …
The FTC announced last week it has brought a complaint against a company called Lithionics Battery LLC and its founder, owner, and general manager, Steven Tartaglia.
Based in Clearwater, Florida, Lithionics designs and sells batteries and battery accessories for boats as well as recreational and low-speed electric vehicles.
In the complaint, the FTC alleges the company labeled its products with an American flag surrounded by the words “MADE IN U.S.A,” with some product packaging also displaying the statement “Proudly Designed and Built in USA.”
The company used this label and similar origin claims on its website and social media platforms, including in YouTube videos. It also published a chart in its marketing materials highlighting the “advantages” of its products over “imports,” the complaint states.
However, the lithium ion cells the company used were made in China and its battery management systems “incorporate significant other imported components,” the FTC alleges, in violation of the new Made in the USA Labeling Rule.
The attorney listed in court documents as representing Lithionics and Tartaglia, John Dicks II of Akerman LLP, did not respond to an email and voice message left Wednesday seeking comment on the case.
Under the Made in the USA Labeling Rule, which went into effect in August 2021, it is considered unfair or deceptive to label any product as Made in the United States unless “the final assembly or processing of the product occurs in the United States, all significant processing that goes into the product occurs in the United States, and all or virtually all ingredients or components of the product are made and sourced in the United States,” per the FTC.
An FTC official clarified that the commission has issued decisions and orders on “Made in USA” claims since the 1940s.
What the labeling rule did was codify the established principle that when consumers see claims of “Made in the USA,” “American made,” etc., they believe that no more than a de minimis amount of the product is of foreign origin.
In the Lithionics case, the FTC wants the court to levy a civil penalty of a little over $105,000, three times its profits attributed to “illegal” activity. It also wants the court to prohibit Lithionics from making “unqualified” U.S. origin claims going forward.
The FTC referred the complaint to the U.S. Department of Justice, which filed it and the proposed settlement in a Florida federal court on the FTC’s behalf.
It is up to a federal judge to decide if or when to sign the settlement.
For additional guidance on the standards that must be met to claim that a product is “Made in the USA,” visit the FTC website.
Editors' Picks
Sponsored by
More on Policies & Issues
The Latest
Recorded WebinarsMay 27, 2022
Watch: The 5 Things I Always Take to a Trade ShowEditor-in-Chief Michelle Graff is joined by three industry veterans to talk about the items they never leave behind and why.
CollectionsMay 27, 2022
92Y Has Selected its 2022 Artist in ResidenceGerman jewelry artist Alexander Blank is the fourth designer to receive the honor.
CollectionsMay 27, 2022
Piece of the Week: Which Movie Inspired This Chopard Masterpiece?The answer is “Hair,” and the necklace is from Chopard’s 2022 Red Carpet Collection, rolled out at the Cannes Film Festival.
Brought to you by
3 Reasons to Offer Estate Buying at Your StoreProvide your customers with a seamless selling solution by partnering with Windsor Jewelers, Inc.
Supplier BulletinMay 26, 2022
Extraordinary Italian Jewelry at JCK and COUTURESponsored by Italian Trade Agency
Weekly QuizMay 26, 2022
This Week’s QuizTest your knowledge of the latest jewelry news with this quick test.
SourcingMay 26, 2022
Q&A: Deciphering De Beers’ Blockchain PlatformDavid Prager virtually sat down with Editor-in-Chief Michelle Graff to answer questions about the rollout of Tracr at scale.
AuctionsMay 26, 2022
Bonhams New York Jewels Auction Is a White Glove SaleJewelry and objects belonging to Bette Midler, heiress Hélène Irwin Crocker Fagan, and Lady Sylvia Ashley were among the highlights.
Brought to you by
Dive into GIA’s Pearl ExpertiseWhen it comes to knowing the identity and quality of your pearls, count on GIA as your independent pearl experts.
FinancialsMay 26, 2022
Movado Posts Record Q1 Sales Despite ‘Challenging’ US MarketThe company opted not to raise its fiscal guidance, citing a slowdown in the U.S. market as a key reason.
TechnologyMay 26, 2022
State of Retail: The Pros and Cons of 4 Jewelry-Selling PlatformsFrom “old-school” eBay to new kid on the block 1stDibs, we asked jewelers about their experiences selling jewelry in non-traditional places.
EditorsMay 25, 2022
7 Standout Tiaras in Sotheby’s Platinum Jubilee ExhibitionSenior Editor Brecken Branstrator chooses the pieces she’d most want to see in person.
MajorsMay 25, 2022
Anne Hathaway Is Bulgari’s Newest AmbassadorThe actress joins Zendaya and others in a new advertising campaign.
IndependentsMay 25, 2022
The Mexican Shack to Close After 47 YearsOwner Steve Delzio shares his thoughts on retirement after nearly five decades in the jewelry industry.
IndependentsMay 25, 2022
Designer Theo Fennell Has Written a Memoir “I Fear for This Boy” takes readers through the ups and downs of his business and is available for pre-order now.
IndependentsMay 25, 2022
MVEye, Wedding Report Partner on New Jewelry Research Platform“Today’s Wedding Jewelry Consumer” shares data about engagement ring market size, lab-grown and natural diamonds, and more.
ColumnistsMay 24, 2022
The PR Adviser: 10 Questions to Contemplate Columnist Lilian Raji wants to walk you through the customer journey. But first, she’d like you to answer a few questions.
Events & AwardsMay 24, 2022
8 Gold Jewelry Designers Unveil New Platinum DesignsSeveral Couture brands have partnered with Platinum Guild International ahead of the jewelry trade show.
Lab-GrownMay 24, 2022
Kendra Scott Unveils Lab-Grown Engagement Ring CollectionThe jewelry company is moving into bridal just a month after branching out into the watch world.
SourcingMay 24, 2022
State of the Diamond Industry: Where Does Supply Go From Here?The 2008 economic crisis, COVID-19, and sanctions on Russian goods have set the stage for an interesting decade for natural diamond supply.
Events & AwardsMay 24, 2022
WJA to Host Diversity Keynote at New Las Vegas Breakfast Event The Generating Community Impact fundraiser on June 11 will feature Karine Bah Tahé of Blue Level Training.
WatchesMay 23, 2022
Steven Kaiser, Watch Industry Veteran and Beloved Mentor, Dies at 68 Kaiser, whose illustrious career spanned decades, died suddenly on Friday.
IndependentsMay 23, 2022
Long’s Jewelers to Open New LocationThe family-owned jeweler is relocating its Braintree, Massachusetts, store to a new space.
IndependentsMay 23, 2022
Luxury Goods Veteran Olivier Stip Joins Chicago Jeweler CD Peacock He will step into the retailer’s newly created role of chief development officer.
GradingMay 23, 2022
Gem-A Launches Digital Entry-Level Gemology CourseGemIntro is meant to give a broad introduction to gems and gemology.
Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain Three industry experts discuss “recycled” gold vs. mined, their challenges and benefits, and how jewelers can navigate the area.
FinancialsMay 20, 2022
Richemont’s 2022 Jewelry Sales in the Americas Nearly DoubleCartier, Van Cleef & Arpels, and Buccellati put on stellar performances.
AuctionsMay 20, 2022
Piece of the Week: ‘Birds in Flight’ by Oscar Heyman The New York jeweler made this incredible, colorful Art Deco bracelet featuring tropical birds in 1927.
