[Federal Register Volume 64, Number 174 (Thursday, September 9, 1999)]
[Notices]
[Pages 49017-49018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23417]
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FEDERAL TRADE COMMISSION
[File No. 972 3014]
Prolong Super Lubricants, 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 November 8, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 600 Pennsylvania Ave., NW, Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT: Gerald Wright, Federal Trade
Commission, Western Regional Office, 901 Market St., 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 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
[[Page 49018]]
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 complaint. An electronic
copy of the full text of the consent agreement package can be obtained
from the FTC Home Page (for September 2, 1999), 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, 600
Pennsylvania Avenue, NW, Washington, D.C. 20580, either in person or by
calling (202) 326-3627.
Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW,
Washington, D.C. 20580. Two paper copies of each comment should be
filed, and should be accompanied, if possible, by a 3\1/2\ inch
diskette containing an electronic copy of the comment. 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 Prolong Super
Lubricants, Inc. (``PSL''). The agreement would settle a proposed
complaint by the Federal Trade Commission that PSL 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
Prolong-brand Engine Treatment Concentrate (``ETC''). Prolong ETC is
marketed for use as a supplemental additive to the motor oil used in
gasoline automobile engines. The proposed complaint charges that,
through the use of statements contained in PSL's television infomercial
and other promotional materials, PSL made the following unsubstantiated
representations: (1) Compared to motor oil alone, ETC reduces engine
wear at start up; (2) compared to motor oil alone, ETC extends the
duration of engine life; (3) ETC reduces corrosion in engines; and (4)
ETC protects against engine breakdowns. In addition, the proposed
complaint alleges that PSL made unsubstantiated claims that benefits
that may be achieved through use of ETC in race cars or under racing
conditions can be achieved by ordinary consumers in ordinary driving;
and that consumer testimonials in PSL's infomercial reflected the
typical and ordinary experience of consumers.
The proposed consent order contains provisions designed to prevent
PSL from engaging in similar acts and practices in the future. Part I
of the proposed order requires PSL to have scientific evidence
substantiating claims that, compared to motor oil alone, ETC or any
other product for use in an automobile, reduces engine wear at start
up, or extends the duration of engine life, under any circumstances or
conditions or by any quantitative amount. Similarly, Part I of the
order requires PSL to have scientific evidence substantiating claims
that ETC or any other product for use in an automobile reduces
corrosion in engines, or protects against engine breakdowns, under any
circumstances or conditions or by any quantitative amount.
Part I of the order also requires PSL to have scientific evidence
substantiating claims that benefits achieved in race cars or under
racing conditions will be achieved in ordinary automobiles in
conventional use. Similarly, Part IV of the order requires PSL to have
scientific evidence substantiating user testimonials or endorsements,
or disclosing the limitations on the applicability of the speaker's
experience to ordinary users.
Moreover, Part II of the proposed order requires PSL to have
competent and reliable evidence, scientific where appropriate,
substantiating any claim about the performance, benefits, efficacy,
attributes or use of any product it sells. In addition, the proposed
order prohibits PSL from misrepresenting the results of tests or
studies relating to any product, or utilizing demonstrations to
misrepresent a material quality, feature or merit of any product, or
the superiority or comparability of a product.
The order also contains standard 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.
By direction of the Commission
Benjamin I. Berman,
Acting Secretary.
Statement of Commissioner Orson Swindle Concurring in Part and
Dissenting in Part
The Commission accepts for public comment a consent agreement
settling allegations that Prolong Super Lubricants, Inc., et al.
(``Prolong''), made unsubstantiated claims about the attributes and
benefits of Prolong's motor oil additive. I support the provisions in
the proposed order prohibiting Prolong from making such claims in the
future without adequate substantiation.
The consent agreement, however, also contains provisions
prohibiting Prolong, in connection with the sale of any product, from
misrepresenting the existence or results of tests and from
misrepresenting that a demonstration confirms the benefits of a
product. While firms should not misrepresent the existence or results
of tests or demonstrations, it is inappropriate to include specific
establishment and demonstration requirements as remedies in an order
without corresponding complaint allegations. In this case, and in
others from the recent past, there is a troubling lack of symmetry
between the complaint and the order.
Accordingly, I dissent as to Paragraphs III and V of the proposed
order.
[FR Doc. 99-23417 Filed 9-8-99; 8:45 am]
BILLING CODE 6750-01-M