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UNITED STATES DISTRICT COURT 

FOR THE MIDDLE DISTRICT OF FLORIDA 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

LITHIONICS BATTERY, LLC, a limited 

liability company; and 

STEVEN TARTAGLIA, individually and as an 

officer of LITHIONICS BATTERY, LLC, 

Defendants. 

Case No. ____________ 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

CIVIL PENALTY JUDGMENT 

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission (“Commission” or “FTC”), filed its 

Complaint for Permanent Injunction, Civil Penalties, and Other Relief (“Complaint”), for a 

permanent injunction, civil penalties, and other relief in this matter, pursuant to Sections 13(b), 

19, and 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b), 57b, 

and 56(a)(1). Defendants have waived service of the summons and the Complaint. Plaintiff 

and Defendants stipulate to the entry of this Stipulated Order for Permanent Injunction and Civil 

Penalty Judgment (“Order”) to resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45 and 16 C.F.R. Part 323, in connection with 

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the labeling and advertising of certain battery systems containing significant imported content as 

“Made in USA.” 

3. Defendants neither admit nor deny any of the allegations in the Complaint, except as 

specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to Justice Act, 

28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and 

agree to bear their own costs and attorney fees. 

5. Defendants and Plaintiff waive all rights to appeal or otherwise challenge or contest the 

validity of this Order. 

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

A. “Clear(ly) and Conspicuous(ly)” means that a required disclosure is difficult to miss 

(i.e., easily noticeable) and easily understandable by ordinary consumers, including in all of the 

following ways: 

1. In any communication that is solely visual or solely audible, the disclosure must 

be made through the same means through which the communication is presented. In any 

communication made through both visual and audible means, such as a television 

advertisement, the disclosure must be presented simultaneously in both the visual and 

audible portions of the communication even if the representation requiring the disclosure 

is made in only one means. 

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2. A visual disclosure, by its size, contrast, location, the length of time it appears, 

and other characteristics, must stand out from any accompanying text or other visual 

elements so that it is easily noticed, read, and understood. 

3. An audible disclosure, including by telephone or streaming video, must be 

delivered in a volume, speed, and cadence sufficient for ordinary consumers to easily 

hear and understand it. 

4. In any communication using an interactive electronic medium, such as the 

Internet or software, the disclosure must be unavoidable. 

5. On a product label, the disclosure must be presented on the principal display 

panel. 

6. The disclosure must use diction and syntax understandable to ordinary consumers 

and must appear in each language in which the representation that requires the disclosure 

appears. 

7. The disclosure must comply with these requirements in each medium through 

which it is received, including all electronic devices and face-to-face communications. 

8. The disclosure must not be contradicted or mitigated by, or inconsistent with, 

anything else in the communication. 

9. When the representation or sales practice targets a specific audience, such as 

children, the elderly, or the terminally ill, “ordinary consumers” includes reasonable 

members of that group. 

B. “Defendants” means the Individual Defendant and the Corporate Defendant, 

individually, collectively, or in any combination. 

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1. “Corporate Defendant” means Lithionics Battery, LLC, and its successors and 

assigns. 

2. “Individual Defendant” means Steven Tartaglia. 

C. “Made in the United States” means any representation, express or implied, that a 

product or service, or a specified component thereof, is of U.S.-origin, including, but not limited 

to, a representation that such product or service is “made,” “manufactured,” “built,” “produced,” 

or “crafted” in the United States or in America, or any other U.S.-origin claim. 

ORDER 

I. 

PROHIBITION AGAINST MISREPRESENTATIONS 

REGARDING U.S.-ORIGIN CLAIMS 

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with promoting or 

offering for sale any good or service, are permanently restrained and enjoined from representing 

or assisting others in representing, expressly or by implication, that a good or service is Made in 

the United States unless: 

A. 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; or 

B. A Clear and Conspicuous qualification appears immediately adjacent to the 

representation that accurately conveys the extent to which the product contains foreign parts, 

ingredients or components, and/or processing; or 

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C. For a claim that a product is assembled in the United States, the product is last 

substantially transformed in the United States, the product’s principal assembly takes place in the 

United States, and United States assembly operations are substantial. 

II. 

PROHIBITION AGAINST MISLEADING OR UNSUBSTANTIATED 

COUNTRY-OF-ORIGIN REPRESENTATIONS 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other persons in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

promoting or offering for sale any good or service, are permanently restrained and enjoined from 

making any representation, expressly or by implication, regarding the country of origin of any 

product or service unless the representation is non-misleading, including that, at the time such 

representation is made, Defendants possess and rely upon a reasonable basis for the 

representation. 

III. 

MONETARY JUDGMENT FOR CIVIL PENALTY 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of $105,319.56 is entered in favor of Plaintiff against the 

Individual Defendant and the Corporate Defendant, jointly and severally, as a civil penalty. 

B. Defendants are ordered to pay to Plaintiff, by making payment to the Treasurer of the 

United States, $105,319.56, which, as Defendants stipulate, their undersigned counsel holds in 

escrow for no purpose other than payment to Plaintiff. Such payment must be made within 7 

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days of entry of this Order by electronic fund transfer in accordance with instructions previously 

provided by a representative of Plaintiff. 

IV. 

ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendants relinquish dominion and all legal and equitable right, title, and interest in all 

assets transferred pursuant to this Order and may not seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in any 

subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order. 

C. Defendants agree that the judgment represents a civil penalty owed to the government of 

the United States, is not compensation for actual pecuniary loss, and, therefore, as to the 

Individual Defendant, it is not subject to discharge under the Bankruptcy Code pursuant to 

11 U.S.C. § 523(a)(7). 

D. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security 

Numbers or Employer Identification Numbers), which Defendants must submit to the 

Commission, may be used for collecting and reporting on any delinquent amount arising out of 

this Order, in accordance with 31 U.S.C. §7701. 

E. The Commission or Plaintiff may request any tax-related information, including amended 

tax returns and any other filings, that Defendants have the authority to release. Within 14 days 

of receipt of a written request from a representative of the Commission or Plaintiff, Defendants 

must take all necessary steps (such as filing a completed IRS Form 4506 or 8821) to cause the 

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Internal Revenue Service or other tax authority to provide the information directly to the 

Commission or Plaintiff. 

V. 

NOTICE TO CUSTOMERS 

IT IS FURTHER ORDERED that Defendants must notify customers as follows: 

A. Defendants must identify all consumers who purchased any Lithionics product between 

August 13, 2021 and August 30, 2021 (“Affected Customers”). 

1. Such Affected Customers, and their contact information, must be identified to the 

extent such information is in Defendants’ possession, custody, or control; 

2. Affected Customers include those identified at any time, including after 

Defendants’ execution of the Agreement through the eligibility period, which runs for 1 

year after the date the Order was entered. 

B. Defendants must notify all identified Affected Customers by emailing each a notice in the 

form shown in Attachment A. The email containing the notice may contain a copy of this 

Order, but no other document or enclosures. 

C. Defendants must notify all Affected Customers within 30 days after the date the Order 

was entered, and any Affected Customers identified thereafter within 30 days of their 

identification. 

D. Defendants must report on its notification program under penalty of perjury: 

1. Defendants must submit a report within 60 days of entry of this Order and at the 

conclusion of the program summarizing its compliance to date. 

2. If a representative of the Plaintiff or Commission requests any information 

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regarding the program, including any of the underlying customer data, Defendants must 

submit it within 10 days of the request. 

VI. 

ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this 

Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission an 

acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order, Individual Defendant, for any business that 

such Defendant is the majority owner or controls directly or indirectly, and Corporate Defendant, 

must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers 

and members; (2) all employees having managerial responsibilities for conduct related to the 

subject matter of the Order and all agents and representatives who participate in conduct related 

to the subject matter of the Order; and (3) any business entity resulting from any change in 

structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 

days of entry of this Order for current personnel. For all others, delivery must occur before they 

assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this Order, that 

Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this 

Order. 

VII. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

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Commission: 

A. One year after entry of this Order, each Defendant must submit a compliance report, 

sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which representatives of 

the Commission and Plaintiff may use to communicate with Defendant; (b) identify all of 

that Defendant’s businesses by all of their names, telephone numbers, and physical, 

postal, email, and Internet addresses; (c) describe the activities of each business, 

including the goods and services offered, the means of advertising, marketing, and sales, 

and the involvement of any other Defendant (which Individual Defendant must describe 

if he knows or should know due to his own involvement); (d) describe in detail whether 

and how that Defendant is in compliance with each Section of this Order; and (e) provide 

a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

2. Additionally, the Individual Defendant must: (a) identify all telephone numbers 

and all physical, postal, email and Internet addresses, including all residences; (b) 

identify all business activities, including any business for which such Defendant performs 

services whether as an employee or otherwise and any entity in which such Defendant 

has any ownership interest; and (c) describe in detail such Defendant’s involvement in 

each such business, including title, role, responsibilities, participation, authority, control, 

and any ownership. 

B. For 10 years after entry of this Order, each Defendant must submit a compliance 

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notice, sworn under penalty of perjury, within 14 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of contact; 

or (b) the structure of Corporate Defendant or any entity that Defendant has any 

ownership interest in or controls directly or indirectly that may affect compliance 

obligations arising under this Order, including: creation, merger, sale, or dissolution of 

the entity or any subsidiary, parent, or affiliate that engages in any acts or practices 

subject to this Order. 

2. Additionally, the Individual Defendant must report any change in: (a) name, 

including aliases or fictitious name, or residence address; or (b) title or role in any 

business activity, including any business for which such Defendant performs services 

whether as an employee or otherwise and any entity in which such Defendant has any 

ownership interest, and identify the name, physical address, and any Internet address of 

the business or entity. 

C. Each Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 

days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I 

declare under penalty of perjury under the laws of the United States of America that the 

foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full 

name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all submissions to 

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the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight 

courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of 

Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 

DC 20580. The subject line must begin: FTC v. Lithionics Battery, LLC. 

VIII. 

RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 10 years 

after entry of the Order, and retain each such record for 5 years. Specifically, Corporate 

Defendant, and Individual Defendant, for any business that such Defendant, individually or 

collectively with the Corporate Defendant, is a majority owner or controls directly or indirectly, 

must create and retain the following records: 

A. Accounting records showing the revenues from all goods or services sold; 

B. Personnel records showing, for each person providing services, whether as an employee 

or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of 

service; and (if applicable) the reason for termination; 

C. Records of all consumer complaints and refund requests concerning the subject matter of 

the Order, whether received directly or indirectly, such as through a third party, and any 

response; 

D. All records necessary to demonstrate full compliance with each provision of this Order, 

including all submissions to the Commission; and 

E. A copy of each unique advertisement, label, or other marketing material that includes any 

express or implied Made in the United States claim. 

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IX. 

COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’ compliance 

with this Order and any failure to transfer any assets as required by this Order: 

A. Within 14 days of receipt of a written request from a representative of the Commission or 

Plaintiff, each Defendant must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission and Plaintiff are also authorized to 

obtain discovery, without further leave of court, using any of the procedures prescribed by 

Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, 

and 69. 

B. For matters concerning this Order, the Commission and Plaintiff are authorized to 

communicate directly with each Defendant. Defendants must permit representatives of the 

Commission or Plaintiff to interview any employee or other person affiliated with any Defendant 

who has agreed to such an interview. The person interviewed may have counsel present. 

C. The Commission and Plaintiff may use all other lawful means, including posing through 

their representatives as consumers, suppliers, or other individuals or entities, to Defendants or 

any individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

D. Upon written request from a representative of the Commission or Plaintiff, any consumer 

reporting agency must furnish consumer reports concerning Individual Defendant, pursuant to 

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_______________________________ 

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Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1). 

X. 

RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

SO ORDERED this day of , 202_. 

UNITED STATES DISTRICT JUDGE 

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SO STIPULATED AND AGREED: 

Of Counsel: 

JAMES A. KOHM 

Associate Director 

Division of Enforcement 

LAURA KOSS 

Assistant Director 

Division of Enforcement 

JULIA SOLOMON ENSOR 

Attorney 

Federal Trade Commission 

600 Pennsylvania Avenue, N.W. 

Mail Stop CC-9528 

Washington, D.C. 20580 

Tel.: 202-326-2377 

Fax: 202-326-3197 

jensor@ftc.gov 

FOR PLAINTIFF: 

THE UNITED STATES OF AMERICA: 

BRIAN BOYNTON 

Principal Deputy Assistant Attorney General 

Civil Division 

ARUN G. RAO 

Deputy Assistant Attorney General 

GUSTAV W. EYLER 

Director 

Consumer Protection Branch 

LISA K. HSIAO 

Assistant Director

 /s/ Deborah S. Sohn 

DEBORAH S. SOHN 

ZACHARY L. COWAN 

Trial Attorneys 

Consumer Protection Branch 

U.S. Department of Justice 

450 5th Street, N.W., Suite 6400-S 

Washington, DC 20002 

Phone: (202) 305-9983 

Fax: (202) 514-8742 

Deborah.S.Sohn@usdoj.gov 

Zachary.L.Cowan@usdoj.gov 

ROGER B. HANDBERG 

United States Attorney 

Middle District of Florida 

LACY R. HARWELL, JR. (Florida Bar No. 714623) 

Assistant United States Attorney 

Middle District of Florida 

400 North Tampa Street, Suite 3200 

Tampa, FL 33602 

Phone: (813) 301-3008 

Fax: (813) 274-6358 

RHarwell@usa.doj.gov 

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ATTACHMENT A: NOTICE TO CUSTOMERS 

The notification email must be in the following form, from an authorized Lithionics Battery, 

LLC email address, and containing a Lithionics Battery, LLC signature line with the sender’s full 

contact information: 

Subject: Settlement of FTC Deceptive Advertising and Labeling Case 

Dear <Name of customer>: 

Our records show that when you bought a product from Lithionics Battery, LLC, we 

labeled or advertised it as “Made in USA.” We’re writing to tell you that the Federal Trade 

Commission, the nation’s consumer protection agency, has sued us for deceptive or false 

labeling and advertising. According to the FTC, our claim that your product was “Made in 

USA” was misleading. 

To settle the FTC’s lawsuit, we’re contacting you to tell you that the product you bought 

was not all or virtually all “Made in USA.” In fact, it contains significant imported components 

including, in the case of battery and battery module products, imported lithium ion cells. 

If you have questions about this lawsuit, visit [get short URL]. For more information 

about “Made in USA” advertising and labeling, visit [get short URL]. 

Sincerely, 

[signature] 

[Lithionics Battery, LLC signature block] 

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