FILED 

1 WILLARD K. TOM 

General Counsel 10 SEP - 7 /\/'111; 50 2 

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ROBIN ROSEN SPECTOR 

rSj:lectorrmftc.gov 

DC Bar No. 42J.9324 

GREGORY J. MADDEN 

gmaddenrmftc.gov 

Member Of the MD Bar 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Room M-8J 02B 

Washington, DC 20580 

202~ 32'6-3740 ~tel.~ (Spector) 202 326-2426 tel. (Madden) 

202 326-2558 fax 

STACY PROCTER (Local Counsel) 

sprocterrmftc.gov 

CA Bar No. 221078 

Federal Trade Commission 

10877 Wilshire Boulevard, Suite 700 

Los Angeles, CA 90024 

(310) 824-4343 (teL) 

(310) 824-4380 (fax) 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

qy:-- -"--

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION, CV- SA ev 1 0'- 0 1 333 l\lS 

Plaintiff, 

v. 

LIGHTS OF AMERICA, INC., 

a California Corporation; 

USMAN VAKIL, 

an individual; and 

FAROOg VAKIL, 

an indIvidual, 

Defendants. 

COMPLAINT FOR PERMANENT 

INJUNCTIVE AND OTHER 

RELIEF 
1 Plaintiff, the Federal Trade Commission ("FTC"), for its Complaint 

2 alleges: 

3 1. The FTC brings this action under Sections 5(a)(1) and 13(b) ofthe Federal 

4 Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(a)(1) and 53(b), to 

5 obtain a permanent injunction, rescission or reformation of contracts, 

6 restitution, the refund of monies paid, disgorgement of ill-gotten monies, 

7 and other equitable relief, against Defendants Lights of America, Inc., 

8 Usman Vakil, and Farooq Vakil (collectively "Defendants") for engaging 

9 in deceptive acts or practices in connection with the advertising and sale of 

10 lighting products, in or affecting commerce, in violation of Section 5(a) of 

11 the FTC Act, 15 U.S.C. § 45(a). 

12 JURISDICTION AND VENUE 

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This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 

1337(a), and 1345, and 15 U.S.c. §§ 45(a) and 53(b). 

Venue is proper in this district under 28 U.S.c. § 1391(b)-(c), and 15 

U.S.C. § 53(b). 

PLAINTIFF 

The FTC is an independent agency ofthe United States Government 

created by statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of 

20 the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or 

21 practices in or affecting commerce. 

22 5. The FTC is authorized to initiate federal district court proceedings, by its 

23 own attorneys, to enjoin violations ofthe FTC Act and to secure such 

24 equitable relief as may be appropriate in each case, including rescission or 

25 reformation of contracts, restitution, the refund of monies paid, and the 

26 disgorgement of ill-gotten monies. 15 U.S.C. § 53(b). 

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2 6. 

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DEFENDANTS 

Defendant Lights of America, Inc. ("LOA") is a California corporation 

with its principal place of business at 611 Reyes Drive, Walnut, CA 91789. 

4 LOA transacts or has transacted business in this district and throughout the 

5 United States. At all times relevant to this Complaint, acting alone or in 

6 concert with others, LOA has advertised, marketed, distributed, or sold 

7 lighting products to consumers throughout the United States. 

8 7. Defendant Usman Vakil is the President of, and has a fifty-one percent 

9 ownership interest in, LOA. At all times relevant to this Complaint, acting 

10 individually or in concert with others, he has formulated, directed, 

11 controlled, had authority to control, or participated in the acts or practices 

12 set forth in this Complaint and knew or should have known that the acts or 

13 practices described herein were unfair or deceptive. Defendant Usman 

14 Vakil transacts or has transacted business in this district and throughout the 

15 United States. 

16 8. Defendant Farooq Vakil is the Vice President of, and has a forty-nine 

17 percent ownership interest in, LOA. At all times relevant to this 

18 Complaint, acting individually or in concert with others, he has formulated, 

19 directed, controlled, had authority to control, or participated in the acts or 

20 practices set forth in this Complaint and knew or should have known that 

21 the acts or practices described herein were unfair or deceptive. Defendant 

22 Farooq Vakil transacts or has transacted business in this district and 

23 throughout the United States. 

24 9. At all times relevant to this Complaint, the alleged acts and practices of 

25 Defendants have been in or affecting commerce, as "commerce" is defined 

26 in Section 4 ofthe FTC Act, 15 U.S.C. § 44. 

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1 DEFENDANTS' COURSE OF CONDUCT 

2 10. Since February 2008 and continuing thereafter, Defendants have 

3 advertised, promoted, offered for sale, sold and distributed Light Emitting 

4 Diode lamps ("LED lamps") to major national retailers for sale to 

5 consumers. These LED lamps are screw light bulbs that can be used in 

6 households in place of incandescent bulbs. LEDs typically produce more 

7 lumens (i.e., a measure of brightness) with less wattage (i.e., energy use) 

8 than traditional incandescent bulbs. 

9 11. Defendants created, prepared, disseminated, or caused to be disseminated 

10 product labels, brochures, and other promotional materials, including, but 

11 not limited to, the attached Exhibits 1 to 3, containing, among other things, 

12 the following statements and depictions: 

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a. Lights of America Packaging (Exhibit 1) 

Save $112** 

In Energy Cost Per Bulb 

90% 

More Efficient 

(Compared to incandescent 

and halogen bulbs) 

30,000 Hour Life 

(Life Rating of LED's) 

"You'll never change your bulbs again."*** 

rThe asterisks after "Save $112 "and "You'll never change your bulbs again" refer consumers to text appearing on the back of the 

package in very small print.] 

* *Based on the lifetime _()perating cost difference of a 40W bulb 

when compared to a 2.5W LED Bulb operated 4 hours per day 365 

days per year at $0.10 kwh over 30,00CY hrs. 

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***Statement based on the minimum # oftimes the led [sic] bulb 

needs to be changed. 

b. Lights of America Packaging (Exhibit 2) 

Light Output: 201 lumens 

Rated Life: 20,,000 hours 

c. 

Energy Used: j.5 Watts 

Color of Light: 5600K(Daylight) 

[Graphic: picture of a large LED light bulb equal to ten small 

Incandescent light bulbs arranged In a pyramId.] 

LASTS 10 TIMES LONGER 

rzraphic described above] tIian 2,000 hour incandescent bulbs 

Lights of America Brochure (Exhibit 3) 

Accent 

Bulb 

SPECIFICATIONS 

WATTAGE:4W 

INCANDESCENT CAMPARISON [sic]: 45W 

COLOR TEMP: 3500K 

BULB LIFE HOURS: 30,000 

HEAT FREE TECHNOLOGY 

15 12. In numerous instances, Defendants' LED lamps produced significantly less 

16 light output than a typical incandescent light bulb at the wattage 

17 represented in Defendants' promotional materials. For example, although 

18 Defendants represented that one of their LED lantern lamps replaces a 40-

19 watt incandescent light bulb, this particular LED lamp produced only 74 

20 lumens oflight, while a typical 40-watt incandescent bulb produces 405 

21 lumens. 

22 13. In numerous instances, Defendants' LED lamps produced significantly less 

23 lumens oflight than Defendants represented in their promotional materials. 

24 For example, Defendants represented that one oftheir LED recessed lamps 

25 produces 90 lumens of light, but their own tests demonstrated that this 

26 LED lamp produces only 43 lumens. 

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1 14. In numerous instances, Defendants' LED lamps would not last the 

2 specified number of hours that Defendants represented in their promotional 

3 materials. If the lumen output decreases by more than 10% in the first 

4 1,000 hours, it will not last 30,000 hours. Defendants represented that one 

5 oftheir LED recessed lamps will last 30,000 hours, but, in independent 

6 testing, this particular LED lamp lost 80% of its light output after only 

7 1,000 hours. 

8 VIOLATIONS OF THE FTC ACT 

9 15. Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a), prohibits unfair or 

10 deceptive acts or practices in or affecting commerce. As set forth below, 

11 Defendants have engaged in unlawful practices in connection with the 

12 marketing and sale of LED lamps. 

13 FALSE OR UNSUBSTANTIATED CLAIMS 

14 IN VIOLATION OF SECTION 5 OF THE FTC ACT 

15 Count! 

16 16. In numerous instances, in connection with the advertising, marketing, 

17 promotion, offering for sale, sale, or distribution of LED lamps, 

18 Defendants have represented, expressly or by implication, that the LED 

19 lamps will provide light output equivalent to particular watt incandescent 

20 light bulbs. 

21 17. In numerous ofthese instances, the representations set forth in Paragraph 

22 16 are false or were not substantiated at the time the representations were 

23 made. Therefore, the making ofthe representations set forth in Paragraph 

24 16, above, constitutes a deceptive act or practice, in or affecting commerce, 

25 in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

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1 Count II 

2 18. In numerous instances, in connection with the advertising, marketing, 

3 promotion, offering for sale, sale, or distribution of LED lamps, 

4 Defendants have represented, expressly or by implication, that the LED 

5 lamps will provide a purported level oflight output in lumens. 

6 19. In numerous of these instances, the representations set forth in Paragraph 

7 18 are false or were not substantiated at the time the representations were 

8 made. Therefore, the making of the representations set forth in Paragraph 

9 18, above, constitutes a deceptive act or practice, in or affecting commerce, 

10 in violation of Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a). 

11 Count III 

12 20. In numerous instances, in connection with the advertising, marketing, 

13 promotion, offering for sale, sale, or distribution of LED lamps, 

14 Defendants have represented, expressly or by implication, that the LED 

15 lamps will last a specified number of hours. 

16 21. In numerous ofthese instances, the representations set forth in Paragraph 

17 20 are false or were not substantiated at the time the representations were 

18 made. Therefore, the making ofthe representations set forth in Paragraph 

19 20, above, constitutes a deceptive act or practice, in or affecting commerce, 

20 in violation of Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a). 

21 CONSUMER INJURY 

22 22. Consumers throughout the United States have suffered and continue to 

23 suffer substantial consumer injury as a result of Defendants' violations of 

24 the FTC Act. In addition, Defendants have been unjustly enriched as a 

25 result of their unlawful acts or practices. Absent injunctive relief by this 

26 Court, Defendants are likely to continue to injure consumers, reap unjust 

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enrichment, and harm the public interest. 

THIS COURT'S POWER TO GRANT RELIEF 

Section l3(b) ofthe FTC Act, 15 U.S.C. § 53(b), empowers this Court to 

grant injunctive and such other relief as the Court may deem appropriate to 

halt and redress violations of any provision of law enforced by the FTC. 

The Court, in the exercise of equitable jurisdiction, may award ancillary 

relief, including rescission or reformation of contracts, restitution, the 

refund of monies paid, and the disgorgement of ill-gotten monies, to 

prevent and remedy any violation of any provision of law enforced by the 

FTC. 

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PRAYER FOR RELIEF 

Wherefore, the FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. 

§ 53(b), and the Court's equitable powers, requests that the Court: 

a. Enter a permanent injunction to prevent future violations of the FTC 

Act by Defendants; 

b. Award such relief as the Court finds necessary to redress injury to 

consumers resulting from Defendants' violations ofthe FTC Act, 

including but not limited to, rescission or reformation of contracts, 

restitution, the refund of monies paid, and the disgorgement of illgotten monies; and 

c. Award Plaintiffthe costs of bringing this action, as well as such 

other and additional relief as the Court may determine to be just and 

proper. 

Respectfully submitted, 

WILLARD K. TOM 

General Counsel 

GREGORY J. MADDEN 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Room M-Sl 02B 

Washington DC 20580 

202~ 326-3740 ~tel.~ (Spector) 202 326-2426 tel. (Madden) 202 326-2558 fax 

rspector@ftc.gov, gmadden@ftc.gov 

STACY PROCTER (Local Counsel) 

Federal Trade Commission 

10877 Wilshire Boulevard, Suite 700 

Los Angele~ CA 90024 

(310) 824-4j43 (tel.) 

(310) 824-4380 (fax) 

sprocter@ftc.gov 

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Exhibit 1 

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Exhibit 1 

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2004: 9/16/09 

Exhibit 2 

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©2009l1GHTS OF AMERICA, Inc 

Walnut, CA 91789 0 

www.lightsofamerica.com 

PIN: 2D04LEDDL-35K·(I 

, 1IIIll~~~~II[~~mlll. (369) 

Exhibit 3 

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