1TB external hard drive has 16MB of storage

So I was going to get my files copied over from my laptop to my NEW 1TB External Hard drive. When they tried moving some of my files over, which is less than 1TB, it showed an error stating that it has insufficient space for the files and that my drive has only 16MB of storage. They formatted it and still it has 16MB of storage. How do I fix this because I really don't want to go to the store and have the warranty replace it as the store is few trips over and will take the whole day.

Note: It did have 1TB of storage when I first used it out of the box.

Additional Info: I tried to clone my desktop from my laptop to that external drive using EaseUS Todo Backup.