Lithionics Battery to Pay Over $100,000 in 'Made in USA' Violation Settlement
DOJ and the Federal Trade Commission settled a case against Lithionics Battery and its founder and owner, Steven Tartaglia, accusing them of falsely claiming that their battery and battery module products were made in the U.S., DOJ announced May 4. Lithionics and Tartaglia agreed to pay $105,319.56 in civil penalties (U.S. v. Lithionics Battery, M.D. Fla. #8:22-00868).
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Lithionics sells battery products for recreational vehicles, amusement park rides and low-speed electric vehicles, among other things. In an April complaint at the U.S. District Court for the Middle District of Florida, the FTC alleged Lithionics had falsely labeled its battery products as "Made in U.S.A." since 2018 when they actually are primarily made overseas. Tartaglia was listed as a defendant alongside the company because he had "sole responsibility" over Lithionics' marketing and labeling decisions, the FTC said (see 2204140053).
The Made in USA Labeling Rule bars companies from listing products as being made in the U.S. unless the final assembly or processing occurs in the U.S. or all or virtually all of its components are made and sourced in America. The FTC said Lithionics' products don't clear either of these standards and that its goods violate the labeling rule. As a consequence, the FTC sought for the court to shutter the Made in USA claims and get Lithionics to pay a hefty penalty.
Lithionics and Tartaglia agreed to pay the penalty, per the court's order. Under the order, Lithionics must stop making "Made in USA" and other "unsubstantiated origin misrepresentations in the future," DOJ said. Lithionics also will be required to notify affected customers, submit compliance reports to the FTC for the next 10 years and submit to compliance monitoring. DOJ won't "tolerate companies who deceive customers by falsely claiming that their products were made in the United States,” said Principal Deputy Assistant Attorney General Brian Boynton. “The department is committed to protecting consumers from the deceptive practices of companies who hope to gain an unfair advantage through dishonesty.”