[Federal Register Volume 64, Number 198 (Thursday, October 14, 1999)]
[Notices]
[Pages 55727-55728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26843]


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FEDERAL TRADE COMMISSION

[File No. 982-3107]


Shell Oil Company, et al.; 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 13, 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 Dershowitz, 
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 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 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

[[Page 55728]]

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 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 containing a consent order from respondents 
Shell Oil Company and Shell Chemical Company (collectively, ``Shell'').
    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.
    Shell has manufactured, tested, advertised, and sold gasoline 
additives to its trade customers for inclusion in aftermarket fuel 
system treatment products that they, in turn, sold to the public. The 
Commission's proposed complaint alleges that by providing its trade 
customers with allegedly deceptive advertising and promotional 
materials, as well as with making allegedly false or misleading 
representations to them about test data, Shell provided the means and 
instrumentalities to its trade customers to deceive the public. The 
Commission's proposed complaint alleges the Shell made unsubstantiated 
representations that Shell gasoline additives significantly improve 
engine power and acceleration in motor vehicles generally. The 
complaint also challenges as unsubstantiated the representations that 
Shell gasoline additives are superior to other fuel system additives in 
improving engine power and acceleration. The complaint also challenges 
as false or misleading Shell's representations that scientific tests 
prove that Shell gasoline additives (a) significantly improve engine 
power and acceleration, and (b) are superior to other fuel system 
treatments in improving engine power and acceleration.
    Furthermore, the proposed complaint alleges that in reporting test 
results to its trade customers in regard to tests Shell conducted on 
its additives and in regard to tests Shell conducted on its customer's 
aftermarket fuel additive products which contained Shell's additives, 
Shell made false or misleading representations that such test results 
(a) constitute scientific proof that Shell gasoline additives and its 
customer's products that contain Shell additives, significantly improve 
engine power and acceleration, and (b) constitute scientific proof that 
Shell gasoline additives, and its customers products that contain Shell 
additives, are superior to other fuel system additives in improving 
engine power and acceleration.
    The proposed consent order contains provisions designed to prevent 
respondents from engaging in similar acts and practices in the future.
    Part I of the proposed order prohibits respondents claiming that 
any of their fuel additive products or ingredients improves power or 
acceleration, or is superior to other products in this regard, unless 
the claim is substantiated by competent and reliable scientific 
evidence. It also requires respondents to have substantiation for any 
representation concerning the performance, benefits, efficacy, 
attributes or use of any fuel additive product or ingredient.
    Part II of the proposed order prohibits respondents from 
misrepresenting the existence, contents, validity, results, conclusion, 
or interpretations of any test, study or research done on any fuel 
additive product or ingredient.
    Part III of the proposed order requires respondents to mail copies 
of the Commission's complaint and order to each trade customer that 
purchased the fuel additive product or ingredient involved in this 
matter.
    Part IV of the proposed order requires respondents to maintain 
copies of all materials relied upon in making any representation 
covered by this order.
    Part V of the proposed order requires respondents to distribute 
copies of the order to its operating divisions and to various officers, 
agents and employees of respondents.
    Part VI of the proposed order requires respondents to notify the 
Commission of any changes in corporate structure that might affect 
compliance with the order.
    Part VII of the proposed order requires respondents 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.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 99-26843 Filed 10-13-99; 8:45 am]
BILLING CODE 6750-01-M