March 26, 2010 - NOTICE OF DECERTIFICATION; NOTICE TO CEASE AND DESIST AND TERMINATION OF ALL CONTRACTS OF PARTICIPATION ISSUED TO IMPACT RACING
SFI Foundation, Inc., has issued a Notice of Decertification; Notice of Cease and Desist, and a notice terminating all Contracts of Participation to Impact Racing. Effective April 27, 2010, all products manufactured and/or distributed by Impact Racing pursuant to SFI Specification Programs 3.2A, 3.3, 16.1, and 16.5 are decertified. Evidence obtained by SFI shows that over a period of years Impact Racing has engaged in the production and use of counterfeit SFI conformance labels and patches, and affixed them to Impact products for use in motorsports. Under the Contracts of Participation between SFI and Impact, SFI conformance labels and patches may only be obtained from SFI and no other source. Evidence shows that Impact had counterfeit SFI labels and patches made in Asia and then affixed them to Impact products it distributed to members of the racing community. To SFI’s knowledge, Impact never advised its customers that its products contained phony SFI labels and patches. Impact never advised SFI of its systematic and longstanding practice of counterfeiting and distributing SFI patches and labeling.
Impact has been directed to cease and desist from this practice. SFI has directed Impact to immediately notify all affected customers to remove the counterfeit labeling and to offer the affected customers a full refund of the purchase price. SFI is requesting that all counterfeit conformance labels removed from Impact products be sent to SFI.
SFI has elected not to decertify these products immediately in order to minimize the potential hardships to members of the racing community that have been brought about by Impact’s counterfeiting activities.
SFI has also elected to terminate all Contracts of Participation with Impact Racing effective 90 days from March 24, 2010. Under the terms of the Contracts, either party may terminate the agreements without penalty upon 90 days notice. This means that Impact will no longer be able to participate in any SFI programs after this 90 day period.
SFI has taken these actions in the best interests of the safety and integrity of the racing community. This is in keeping with SFI’s mission and purpose.