[Federal Register Volume 64, Number 193 (Wednesday, October 6, 1999)]
[Notices]
[Pages 54328-54329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26033]
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FEDERAL TRADE COMMISSION
[File No. 972-3209]
Castrol North America, 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 Comments 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 6, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 600 Pennsylvania Ave., NW, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: C. Lee Peeler or Michael Derschowitz,
FTC/S-4002, 600 Pennsylvania Ave., NW, Washington, DC 20580, (202) 326-
3090 or 326-3158.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 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 complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for September 15, 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, DC 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, DC 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 comments. 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
Sec. 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 containing a consent order from respondent
Castrol North America Inc. (``Castrol'').
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.
Castrol manufactures and sells automotive products, including fuel
additive products added by consumers to a car's gas tank. This matter
concerns allegedly deceptive advertising claims regarding the
performance attributes of a fuel additive product, Castrol's Syntec
Power System (``Castrol Syntec''). The Commission's proposed complaint
alleges that Castrol made unsubstantiated claims that Castrol Syntec
significantly improves engine power and acceleration for motor vehicles
generally. The complaint also challenges as unsubstantiated the claim
that Castrol Syntec is superior to other fuel system treatments in
improving engine power and acceleration. Finally, the complaint
challenges as false or misleading the claims the laboratory tests prove
that Castrol Syntec (a) significantly improves engine power and
acceleration, and (b) is superior to other fuel system treatments in
improving engine power and acceleration.
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 claiming that
Castrol Syntec or any other fuel oil additive improves power or
acceleration, or is superior to other products in this regard, unless
the claim is substantiated by competent and reliable scientific
evidence. Part II of the proposed order requires Castrol to have
substantiation for any representation concerning the performance,
benefits, efficacy, attributes of use of Castrol Syntec or any other
fuel additive product.
Part III of the proposed order prohibits respondent from
misrepresenting the existence, contents, validity, results,
conclusions, or interpretations of any test, study or research done on
any fuel additive product.
Part IV of the proposed order requires respondent to maintain
copies of all materials relied upon in making any representation
covered by the order.
Part V of the proposed order requires respondent to distribute
copies of the order to its operating divisions and to
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various officers, agents and employees of respondent.
Part VI of the proposed order requires respondent to notify the
Commission of any changes in corporate structure that might affect
compliance with the order.
Part VII of the proposed order requires respondent to file with the
Commission one or more reports detailing compliance with the order.
Part VIII of the proposed 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.
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.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-26033 Filed 10-05-99; 8:45 am]
BILLING CODE 6750-01-M