[Federal Register Volume 61, Number 76 (Thursday, April 18, 1996)]
[Notices]
[Pages 16920-16922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9552]



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FEDERAL TRADE COMMISSION
[File No. 952-3210]


Ford Motor Company; Proposed Consent Agreement With Analysis To 
Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair or deceptive acts or practices and unfair methods of 
competition, this consent agreement, accepted subject to final 
Commission approval, would prohibit, among other things, the Dearborn, 
Michigan-based automobile manufacturer from making broad pollution-
removal claims for its MicronAir Filtration System or any substantially 
similar system. The Consent Agreement settles allegations that Ford and 
its advertising agency, Young & Rubicam, Inc., made false claims about 
the extent to which the MicronAir Filtration System can remove air 
pollutants in automobile passenger cabins.

DATES: Comments must be received on or before June 17, 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:
Linda K. Badger, Federal Trade Commission, San Francisco Regional 
Office, 901 Market Street, Suite 570, San Francisco, CA 94103, (415) 
356-5270.
    Jeffrey Klurfeld, Federal Trade Commission, San Francisco Regional 
Office, 901 Market Street, Suite 570, San Francisco, CA 94103, (415) 
356-5270.

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: Ford Motor Company, a corporation; File No. 
952-3210.

Agreement Containing Consent Order To Cease and Desist

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Ford Motor Company, a corporation, and it 
now appearing that the 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 Ford Motor Company, a 
corporation, by its duly authorized officer, and its attorney, and 
counsel for the Federal Trade Commission that:
    1. Proposed respondent Ford Motor Company, is a corporation 
organized, existing and doing business under and by virtue of the laws 
of the State of Delaware with its offices and principal place of 
business located at The American Road, Dearborn, Michigan 48121.
    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft of complaint.
    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 of 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 
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 the proposed respondent that the law has 
been violated as alleged in the draft Complaint, 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 Section 2.34 of the 
Commission's Rules, the Commission may, without further notice to the 
proposed respondent, (a) issue its complaint corresponding in form and 
substance with the draft of complaint and its decision containing the 
following order to cease and desist in disposition of the proceeding 
and (b) 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 the proposed 
respondent's address as stated in this agreement shall constitute 
service. The 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. The proposed respondent has read the proposed complaint and 
order contemplated hereby. The proposed respondent 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. 
The 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, Ford Motor Company, a corporation, 
its successors and assigns, and its officers, and respondent's agents, 
representatives and employees, directly or through any corporation, 
subsidiary, division or other device, in connection with the labelling, 
advertising, promotion, offering for sale, sale or distribution of

[[Page 16921]]

the ``MicronAir Filtration System'' as configured in the 1995 Lincoln 
Continental or 1995 Mercury Mystique or any substantially similar 
product in or affecting commerce, as ``commerce'' is defined in the 
Federal Trade Commission Act, do forthwith cease and desist from making 
any representation, directly or by implication, that such product 
removes virtually all pollutants. For the purposes of this Order, 
``substantially similar product'' shall mean any automotive cabin air 
filter which is an electrostatic filter, consisting of layers of non-
woven fabric, with at least one layer that has been electrically 
charged.

II

    It is further ordered that respondent, Ford Motor Company, a 
corporation, its successors and assigns, and its officers, and 
respondent's agents, representatives and employees, directly or through 
any corporation, subsidiary, division or other device, in connection 
with the manufacturing, labelling, advertising, promotion, offering for 
sale, sale or distribution of any automotive cabin air filter, in or 
affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desist from making any 
representation, in any manner, directly or by implication, about the 
efficacy of any such product in reducing or removing pollutants, unless 
such representation is true, and at the time of making such 
representation, respondent possesses and relies upon competent and 
reliable scientific evidence, that substantiates such representation. 
For purposes of this Order, ``competent and reliable scientific 
evidence'' shall mean tests, analyses, research, studies or other 
evidence based on 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.

III

    It is further ordered that for three (3) years after the last date 
of dissemination of any representation covered by this Order, 
respondent, or its successors and assigns, shall maintain and upon 
request make available to the Federal Trade Commission for inspection 
and copying:
    A. All materials that were relied upon in disseminating such 
representation; and
    B. All tests, reports, studies, surveys, demonstrations or other 
evidence in its possession or control that contradict, qualify, or call 
into question such representation, or the basis relied upon for such 
representation, including written complaints from consumers.

IV

    It is further ordered that respondent notify the Commission at 
least thirty (30) days prior to any proposed change in the corporate 
respondent such as dissolution, assignment or sale resulting in the 
emergence of a successor corporation, the creation or dissolution of 
subsidiaries or any other change in the corporation which may affect 
compliance obligations arising out of the Order.

V

    It is further ordered that respondent shall, within ten (10) days 
from the date of service of this Order upon it, distribute a copy of 
this Order to each of its officers, agents, representatives or 
employees engaged in the preparation, review or placement of 
advertising or other materials covered by this Order.

VI

    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.

VII

    It is further ordered that respondent shall, within sixty (60) days 
from the date of 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 an agreement, subject to 
final approval, to a proposed consent order from respondent Ford Motor 
Company (``Ford''), a Delaware corporation.
    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 and take other appropriate action or make 
final the agreement's proposed order.
    Ford manufactures and distributes automobiles, automotive parts, 
and other products to consumers. Certain models of Ford automobiles, 
such as the Mercury Mystique and Lincoln Continental, include an 
automotive cabin air filter called the ``MicronAir Filtration System.'' 
The Commission's complaint charges that Ford's advertising of this 
filter contained the false representation that it removes virtually all 
pollutants likely to be encountered by a driver. The complaint alleges 
that the MicronAir Filtration System does not, in fact, remove 
virtually all such pollutants. For example, the filter has no effect on 
gaseous pollutants, such as hydrocarbons, carbon monoxide, and nitrogen 
oxides.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the respondent from engaging in 
similar acts and practices in the future. Part I of the proposed order 
prohibits the respondent from claiming that the ``MicronAir Filtration 
System'' as configured in the 1995 Lincoln Continental or 1995 Mercury 
Mystique, or any substantially similar product, removes virtually all 
pollutants.
    Part II of the proposed order prohibits the company from making any 
representation, in any manner, directly or by implication, about the 
efficacy of any cabin air filter in reducing or removing pollutants, 
unless such representation is true, and at the time of making such 
representation, respondent possesses and relies upon competent and 
reliable scientific evidence, that substantiates such representation.
    The proposed order also requires the respondent to maintain 
materials relied upon to substantiate claims covered by

[[Page 16922]]

the order; to provide a copy of the consent agreement to all employees 
or representatives involved in the preparation and placement of the 
company's advertisements; to notify the Commission of any changes in 
corporate structure that might affect compliance with the order; and to 
file 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. 96-9552 Filed 4-17-96; 8:45 am]
BILLING CODE 6750-01-M