Press Release
☷Battery Manufacturer Ordered to Pay Civil Penalties for Alleged Violations of “Made in USA” Labeling Rule and Federal Trade Commission Act
U.S. Department of Justice ( By Press Release office)
May 04,2022
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The Department of Justice , together with the Federal Trade Commission ( FTC ) , announced today that the government will collect $105 , 319 . 56 in civil penalties from Lithionics Battery LLC and its general manager , Steven Tartaglia ( together , Lithionics ) , as part of a settlement to resolve allegations that Lithionics violated the FTC’s “Made in USA” Labeling Rule and the FTC Act in connection with marketing its battery products . In a complaint filed in the U . S . District Court for the Middle District of Florida , the government alleged that Lithionics violated the rule by improperly labeling and advertising batteries , battery modules and battery management systems as “Made in USA , ” even though key components of the products — including the lithium ion cells that powered the batteries — were imported . This is the first action under the FTC’s new “Made in USA” rule . “The Department of Justice will not tolerate companies who deceive customers by falsely claiming that their products were made in the United States , ” said Principal Deputy Assistant Attorney General Brian M . Boynton , head of the Justice Department’s Civil Division . “The department is committed to protecting consumers from the deceptive practices of companies who hope to gain an unfair advantage through dishonesty . ” “As our country works to onshore production of lithium ion batteries , it’s critical that honest businesses have a chance to compete , and that consumers can buy American , ” said Director Sam Levine of the FTC’s Bureau of Consumer Protection . “Falsely labeling batteries as made in the United States is against the law , and the FTC is using its new Made in USA rule to make sure this misconduct comes with a price . ”In addition to the civil penalties , the stipulated order entered by the court today prohibits Lithionics from making “Made in USA” and other unsubstantiated origin misrepresentations in the future . The stipulated order also requires Lithionics to notify affected customers and to submit compliance reports to the FTC for over a decade . This matter is being handled by Trial Attorneys Deborah Sohn and Zachary Cowan of the Civil Division’s Consumer Protection Branch . Julia Ensor represented the FTC . For more information about the Consumer Protection Branch and its enforcement efforts , visit its website at https://www . justice . gov/civil/consumer - protection - branch . For more information about the FTC , visit its website at https://www . FTC . gov .
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