[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Notices]
[Pages 7793-7795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4692]



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FEDERAL TRADE COMMISSION

[File No. 932-3011]


Amoco Oil Company; Consent Agreement With Analysis to Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION: Consent Agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair acts and practices and unfair methods of competition, this 
consent agreement, accepted subject to final Commission approval, would 
bar the Chicago-based corporation from making any performance or 
environmental benefit claim for any of its gasoline without first 
having scientific evidence to back it up. The consent agreement settles 
allegations stemming from Amoco's ``Crystal Clear Amoco Ultimate'' 
advertising campaign.

DATES: Comments must be received on or before April 29, 1996.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:
Joel Winston, Federal Trade Commission, S-4002, 6th and Pennsylvania 
Avenue, NW, Washington, DC 20580. (202) 326-3153. Michael Dershowitz, 
Federal Trade Commission, S-4002, 6th and Pennsylvania Avenue, NW, 
Washington, DC 20580. (202) 326-3158.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the following consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of sixty (60) days. Public comment is invited. Such 
comments or views will be considered by the Commission and will be 
available for inspection and copying at its principal office in 
accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of 
Practice (16 CFR 4.9(b)(6)(ii)).
    In the Matter of Amoco Oil Company, a corporation; File No. 932-
3011.

 Agreement Containing Consent Order to Cease and Desist

     The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Amoco Oil Company, a corporation, 
hereinafter sometimes referred to as proposed respondent, and it now 
appearing that proposed respondent is willing to enter into an 
agreement containing an order to cease and desist from the use of the 
acts and practices being investigated,
    It is hereby agreed by and between Amoco Oil Company, by its duly 
authorized officer, and its attorney, and counsel for the Federal Trade 
Commission that:
    1. Proposed respondent Amoco Oil Company is a Maryland corporation, 
with its offices and principal place of business located at 200 East 
Randolph Drive, Chicago, Illinois 60601.
    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft complaint here attached.
    3. Proposed respondent waives:
    (a) Any further procedural steps;
    (b) The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law; and
    (c) All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement.
    4. This agreement shall not become part of the public record in the 
proceeding unless and until it is accepted by the Commission. If this 
agreement is accepted by the Commission it, together with the draft of 
the complaint contemplated thereby, will be placed on the public record 
for a period of sixty (60) days and information in respect thereto 
publicly released. The Commission thereafter may either withdraw its 
acceptance of this agreement and so notify the proposed respondent, in 
which event it will take such action as it may consider appropriate, or 
issue and serve its complaint (in such form as the circumstances may 
require) and decision, in disposition of the proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by proposed respondent that the law has been 
violated as alleged in the draft of complaint here attached, or that 
the facts as alleged in the draft complaint, other than jurisdictional 
facts, are true.
    6. This agreement contemplates that, if it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of Sec. 2.34 of the 

[[Page 7794]]
Commission's Rules, the Commission may, without further notice to the 
proposed respondent, (1) issue its complaint corresponding in form and 
substance with the draft of complaint here attached and its decision 
containing the following order to cease and desist in disposition of 
the proceeding and (2) make information public in respect thereto. When 
so entered, the order to cease and desist shall have the same force and 
effect and may be altered, modified or set aside in the same manner and 
within the same time provided by statute for other orders. The order 
shall become final upon service. Delivery by the U.S. Postal Service of 
the complaint and decision containing the agreed-to order to proposed 
respondent's address as stated in this agreement shall constitute 
service. Proposed respondent waives any right it may have to any other 
manner of service. The complaint may be used in construing the terms of 
the order, and no agreement, understanding, representation or 
interpretation not contained in the order or the agreement may be used 
to vary or contradict the terms of the order.
    7. Proposed respondent has read the proposed complaint and order 
contemplated hereby. It understands that once the order has been 
issued, it will be required to file one or more compliance reports 
showing that it has fully complied with the order. Proposed respondent 
further understands that it may be liable for civil penalties in the 
amount provided by law for each violation of the order after it becomes 
final.

Order

I.

    It is ordered that respondent Amoco Oil Company, a corporation, its 
successors and assigns, and its officers, representatives, agents and 
employees, directly or through any corporation, subsidiary, division or 
other device, in connection with the advertising, labeling, offering 
for sale, sale or distribution of Amoco Silver 89 octane gasoline, 
Amoco Ultimate 92 or 93 octane gasoline, or any other gasoline in or 
affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desisit from making any 
representation in any manner, directly or by implication, that:
    (A) Amoco Ultimate gasoline is superior to all other brands of 
premium gasoline with respect to engine performance or environmental 
benefits because it is refined more than all other such brands;
    (B) The clear color of Amoco Ultimate gasoline demonstrates the 
superior engine performance or environmental benefits Amoco Ultimate 
provides compared to other brands of gasolines that are not clear in 
color;
    (C) A single tankful of Amoco Silver or Ultimate gasoline will make 
dirty or clogged fuel injectors clean;
    (D) Amoco Silver or Ultimate gasoline provides superior fuel 
injector cleaning compared to other brands of gasoline;
    (E) Automobiles driven more than 15,000 miles with regular gasoline 
generally suffer from lost engine power or acceleration which will be 
restored by the higher octane of Amoco Silver gasoline; or
    (F) Concerns the relative or absolute attributes of any gasoline 
with respect to environmental benefits or with respect to engine 
performance, power, acceleration, or engine cleaning ability,
unless, at the time of making such representation, respondent possesses 
and relies upon competent and reliable scientific evidence that 
substantiates the representation. For purposes of this Order, 
``competent and reliable scientific evidence'' shall mean tests, 
analyses, research, studies, or other evidence based upon the expertise 
of professionals in the relevant area, that has been conducted and 
evaluated in an objective manner by persons qualified to do so, using 
procedures generally accepted in the profession to yield accurate and 
reliable results.
    For purposes of this Part, any representation, directly or by 
implication, that any gasoline will clean or clean up fuel injectors to 
a level that engine performance is not adversely affected will be 
deemed to be substantiated if respondent possesses and relies upon 
competent and reliable testing demonstrating that the flow rate of each 
fuel injector was returned to at least 95 percent of its original 
value.
    Provided that, nothing in this Order shall prohibit respondent from 
truthfully representing the numerical octane rating of any gasoline.

II.

    It is further ordered that respondent Amoco Oil Company, shall 
within thirty (30) days after service distribute a copy of this Order 
to all operating divisions, subsidiaries, officers, managerial 
employees, and all of its employees or agents engaged in the 
preparation and placement of advertisements or promotional sales 
materials covered by this Order and shall obtain from each such 
employee a signed statement acknowledging receipt of the order.

III.

    It is further ordered that for three (3) years after the last date 
of dissemination of any representation covered by this Order, 
respondent Amoco Oil Company or its successors or assigns, shall 
maintain and upon request make available to the Federal Trade 
Commission or its staff for inspection and copying:
    A. All materials that were relied upon to substantiate any 
representation covered by this Order; and
    B. All tests, reports, studies or surveys, in respondent's 
possession or control that contradict any representation covered by 
this Order.

IV.

    It is further ordered that respondent Amoco Oil Company shall 
notify the Commission at least thirty (30) days prior to the effective 
date of any proposed change in the corporation that may affect 
compliance obligations under this Order such as a dissolution, 
assignment or sale resulting in the emergence of a successor 
corporation(s), the creation or dissolution of subsidiaries or any 
other change in the corporation.

V.

    It is further ordered that this Order will terminate twenty years 
from the date of its issuance, or twenty years from the most recent 
date that the United States or the Federal Trade Commission files a 
complaint (with or without an accompanying consent decree) in federal 
court alleging any violation of the order, whichever comes later; 
provided, however, that the filing of such a complaint will not affect 
the duration of:
    A. Any paragraph in this Order that terminates in less than twenty 
years;
    B. This Order's application to any respondent that is not named as 
a defendant in such complaint; and
    C. This Order if such complaint is filed after the Order has 
terminated pursuant to this paragraph.
Provided further, that if such complaint is dismissed or a federal 
court rules that the respondent did not violate any provision of the 
Order, and the dismissal or ruling is either not appealed or upheld on 
appeal, then the Order will terminate according to this paragraph as 
though the complaint was never filed, except that the Order will not 
terminate between the date such complaint is filed and the later of the 
deadline for appealing such dismissal or ruling and the date such 
dismissal or ruling is upheld on appeal.

[[Page 7795]]


VI.

    It is further ordered that respondent Amoco Oil Company shall, 
within sixty (60) days after service of this Order upon it, and at such 
other times as the Commission may require, file with the Commission a 
report, in writing, setting forth in detail the manner and form in 
which it has complied with this Order.

Analysis of Proposed Consent Order to Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement containing a consent order from Amoco Oil 
Company (``Amoco'').
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    This matter concerns advertising claims regarding the performance 
attributes of Amoco Silver midgrade and Amoco Ultimate premium 
gasolines. The Commission's proposed complaint alleges that Amoco's 
advertising has made unsubstantiated claims that Amoco Ultimate 
provides superior performance and environmental benefits compared to 
all other premium brands, because it is refined more than such brands, 
and that Ultimate's clear color demonstrates its superiority. The 
complaint also challenges as unsubstantiated the claim that automobiles 
driven more than 15,000 miles generally suffer from lost engine power 
and acceleration, which Amoco Silver's higher octane will restore. 
Finally, the complaint challenges as unsubstantiated the claims that 
Silver and Ultimate will clean dirty fuel injectors in one tankful, and 
are superior to other brands in cleaning fuel injectors.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts and practices in the future.
    Part I of the proposed order prohibits respondent from making any 
of the unsubstantiated representations alleged in the complaint, or any 
other representation concerning the attributes of any Amoco gasoline 
with respect to environmental benefits or engine performance, power, 
acceleration or engine cleaning ability, unless it has competent and 
reliable scientific evidence that substantiates the representation, at 
the time it is made.
    Part I of the proposed order also states that any claim by 
respondent that a gasoline will clean or clean up fuel injectors to a 
level that engine performance is not adversely affected will be deemed 
to be substantiated by competent and reliable testing showing that the 
flow rate of each injector was restored to at least 95% of its original 
value. Part I of the proposed order also allows truthful 
representations regarding the numerical octane rating of any gasoline.
    Part II of the order requires Amoco to distribute copies of the 
order to its operating divisions and to various officers, agents and 
employees of Amoco.
    Part III of the order requires Amoco to maintain copies of all 
materials relied upon in making any representation covered by the 
order.
    Part IV of the order requires Amoco to notify the Commission of any 
changes in corporate structure that might affect compliance with the 
order.
    Part V of the order is a ``sunset'' provision, dictating that the 
order will terminate twenty years from the date it is issued or twenty 
years after a complaint is filed in federal court, by either the United 
States or the FTC, alleging any violation of the order.
    Part VI of the order requires Amoco to file with the Commission one 
or more reports detailing compliance with the order.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-4692 Filed 2-28-96; 8:45 am]
BILLING CODE 6750-01-M