[Federal Register Volume 62, Number 200 (Thursday, October 16, 1997)]
[Notices]
[Page 53786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27358]


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FEDERAL TRADE COMMISSION

[File No. 962-3072]


Ashland, Inc.; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before December 15, 1997.

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

FOR FURTHER INFORMATION CONTACT:
Elaine D. Kolish, Federal Trade Commission, S-4302, 6th St. and 
Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-3042. Robert 
Frisby, Federal Trade Commission, S-4302, 6th St. and Pennsylvania 
Ave., NW., Washington, DC 20580. (202) 326-2098.

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 above-captioned 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. The following Analysis to Aid 
Public Comment describes the terms of the consent agreement, and the 
allegations in the accompanying complaint. An electronic copy of the 
full text of the consent agreement package can be obtained from the 
Commission Actions section of the FTC Home Page (for October 8, 1997), 
on the World Wide Web, at ``http://www.ftc.gov/os/actions97.htm.'' A 
paper copy can be obtained from the FTC Public Reference Room, Room H-
130, Sixth Street and Pennsylvania Ave., NW., Washington, DC 20580 
either in person or by calling (202) 326-3627. 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).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement to a proposed consent order from Ashland, Inc. 
(``Ashland''). The agreement would settle a proposed complaint by the 
Federal Trade Commission that Ashland engaged in unfair or deceptive 
acts or practices in violation of section 5(a) of the Federal Trade 
Commission Act.
    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 practices related to the sale of 
Valvoline TM8 Engine Treatment (``TM8''). The proposed complaint 
charges that, through the use of statements contained in its 
advertisements and promotional materials, Ashland made the following 
unsubstantiated representations: (1) TM8 bonds Teflon to engine parts; 
(2) compared to motor oil alone, TM8: reduces engine wear; reduces 
camshaft bearing wear by up to 75%; reduces main bearing wear by up to 
75%; under high temperature conditions experienced by engines, provides 
twice as much wear protection; extends the duration of engine life; and 
improves fuel economy; and (3) One treatment of TM8 lasts for 50,000 
miles. Lastly, the proposed complaint alleges that Ashland falsely 
represented that tests prove that, compared to motor oil alone, TM8: 
reduces camshaft bearing wear by up to 75%; reduces main bearing wear 
by up to 75%; under high temperature conditions experienced by engines, 
provides twice as much wear protection; and improves fuel economy.
    The proposed consent order contains provisions designed to prevent 
Ashland from engaging in similar acts and practices in the future. Part 
I of the proposed order prohibits Ashland from making any 
representation about the performance or attributes of any engine 
treatment unless, at the time it makes the representation, Ashland 
possesses and relies upon competent and reliable evidence, which when 
appropriate must be scientific evidence, that substantiates the 
representation. Part I also prohibits Ashland from misrepresenting the 
results of tests or studies.
    The proposed order also contains standards provisions regarding 
record-keeping, notification of changes in corporate status, 
distribution of the order, termination of the order, and the filing of 
a compliance report.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the agreement and the proposed order or to modify 
their terms in any way.
Donald S. Clark,
Secretary.
[FR Doc. 97-27358 Filed 10-15-97; 8:45 am]
BILLING CODE 6750-01-M