[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