STP Corporation

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IN THE MATTER OF STP CORPORATION, F:T AL.

COI\SENT ORDEX, ETC., II\ REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COl\L\1JSSIO ACT Ducke! C-2777 COlip/oliil Jan. D . 1.'J7()- DecisiulI , J(w. Ii, 1.976 Consent order requiring a Fort Lauderdale, Fla., manufacturer of oil and ga;;olin' additives and oil filters and its Chicago, 11L, advertising agency, among other things to cease making false area misleading effectiveness claims and representd tions for its products Appenra' nces For the Commission: B,' '(ce J. Parker. For the respondents: J. Wallace Ada,,. Howrey, Si'iwn, Baker & WIU'chL",o' Washington, D.

CO:YIPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federa. Trade Commission, having reason to believe that STP Corporation corporation, and Stern, \Valters & Simmons, Inr., a corporation. hereinafter referred to a respondents, have violated the provi ions said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues it complaint stating its charges in that respect as follo\vs: PARAGRAPH 1. STP Corporation is a corporation organized, existing and doing business under and by virtue of the la\\ls of the State of Delaware, with its principal office and place of business located at 1400 W. Commercial Blvd., Fort Lauderdale, Florida. Respondent Stern alters & Simmons, Inc. is a corporation existing and doing business under and by virtue of the laws of the State of Illnois, \with its principal office and plare of ousincss located at 150 E. Huron St., Chicago, Ilinois.

PAR 2. Respondent STP Corporation is now and for some time past has been engaged in the sale and distribution of automotive filters, oil and gasoline treatments and other products to the publir under the trade name STP.

Respondent Stern. Walters & Simmons, Inc. is now and for some time past has been an advertising agenry; it prepared for publication advertising material including but not limited to the advertising material referred to herein. for the purpose of promoting the sale of STP Corporation products.

.. , STP CORP.. ET AL.

;")(i Complaint PAR. :3. Respondent STP Corporation, in thc course and conduct of its business as aforesaid, now causes and for some time past has caused said products, when sold, to be shipped from its place of business to purchasers thereof located in various other States of the L:united States and maintains, and at all times mentioned herein has maintained, a substantial course of trade in said products in commerce, as commerce" is defined in the Federal Trade Commission Act. Respondent Stern, Walters & Simmons, Inc., in the course and conduct of its businesses as aforesaid, now and for some time past has performed its said services in various States of the United States; it maintains, and at all times mentioned herein has maintained a substantial course of trade in said services in commerce, as Hcommerce is defined in the Federal Trade Commission Act. PAR. 4. In the course and conduct of its business as aforesaid, and for the purpose of inducing the purchase of STP Corporation products respondent STP Corporation has made and is now making statements and representations through advertisements published in newspapers and magazines, and by means of television and radio broadcasts. Respondent Stern, Walters & Simmons, Inc., in the course and conduct of its business as aforesaid, and for the purpose of inducing the purchase of STP Corporation products, made statements and representations through advertisements published in newspapers and magazines, and by means of television and radio broadcasts. Typical of the statements and representations contained in said advertisements, but not all inclusive, are the following: A. STP OIL TRbATMENT 1. I'm a retired banker who likes to tinker with his car. I use STP Oil Treatment and value it very highly. I asked tJw dealer if it would be alright to use STP. He says If all our customers used it, we might just as well dose down our repair shop. ;; New York Traffic. A real nightmare for taxis any time of the day. Meet cah driver Louis Cohen . lie fights that traffic for a Jiving- l Cabbie J: The secret to this job is to keep rolling. That s why I' ve used S1'1- OjJ Treatment in all my cabs for over six years now That s over :300 000 miles " "' ,. without a single starting problem or engine repair lAnner. Tai\€ a tip from a cab driver. Have your servil'e station add STP to your car s oil :3. I have a daughter in co!lege in Arizona. She s using our Cutlass car which hag 000 miles on it. And in her Christmas package, I included STP Oil Treatment so she could keep the old huggy running and she could get it back home one of these days . If an engine s gotta go it alone. it might not make the finish. That s why there STP Oil Treatment.

G. Being a mother with: little children, I don t know too much about cars. The reason I use STF' Oil Treatment" " " if you had car problems, there isn t I sic I too many places around here that could help you l eie\'ision advertisement showing mother with; sma:1 children driving (:al" through apparently sparse1j-.' populated farming country j. It gives ml' 2H- 969 O- LT - ?7 - 5 , ;')S FSDEIL\L TRADE COMMISSIO DECISJO Complaint Wi FTC. peace 0: mind knowing I can use a product such as S1'1' , and I can get from O)1e place to J.other1' without having to won' (j. I (l1-ive to work in my Lincoln and I do my \, ork in my Volkswagen. Never had any engine trouble with either car and! give S1'1' Oil Treatment a lot of credit for that. This Vol;'swagen has nearly 2G2 OOO miles on it and it s still going great. Did you know, with the help of 51'1' , that s more than a quartel" of a million miles. 7. 1';r, a firm believer in STP Oil Treatment. Ever since I bought my car new, I' had STP in L'1e c1'an;'case and that s over 170 000 miles without engine troubic, Il lsic;' would still be driving today except foi" the damage in the front end. 8. Last year s Indy winner and C.S. National Champion Mario Andretti talks about auto I'acing and his plans for the future. f:.Iario .1: Driving cars for a living is exciting, but its lsic j also very demanding. There s plenty to do without naving to think about mechanical failure. That s why I l"ely on STP Oil Treatment to keep everything running smoothly . THIS WIr.TER, KEEP YOUR OIL UP ALL NIGHT. Your engine won t say no to you in the morning, if you let STP Oil Treatment go to work for you at night. You see, oil alone even all-weather oil, drains off the cylinder \valls, pistons and other vital part;: and runs down in the oil pan where it stiffens from the colel " STP helps your motor oil cling. No matter how long your cal' sits 01 '" how cold it gets. And you get the lubrication YOll need right from the start.

10. WINTERIZE YOUR OIL. Your ear isn t ready winter- weather-ready unless you winteri ed your motor oil with STP. Let any car sit awhile - like overnight and the oil, even all-weather oil, drains off tnl' cylinder walls, pistons and other vital parts and runs down in the oil pan whel' C' it stiffens from the cold. So in the morning, there isn always enough lubl-ication left on crucial parts to let the engine turn over easily without friction and wear. STP helps your motm' oil stay up without draining dov.' n. No matter how iong your car sits or how colc! it gets. And you get the lubrication you need right from the start.

11. STP Oil Treatment is so rich and strong it won't drain off vital engine parts the way ordinary motor oil alone docs.

12. Unlike ordinary motor oils, STP Oil Treatment clings to vita! eI1gine parts. 1:3 i\O -FRJCT1ON RF:ST SI:LLE:R '" '" * , The engine of your new car is subject to more friction and wear in the first 1000 miles than it is in tr.e 10 000 miles that follow. HO\v do you cut the friction that grinds away at engine life'! ;Viator oil alone doesn t cut it, in our book. But STP blended with your favorite oil. does. STP , world's best-selling oil treatmer. , is so rich and strong it won t drain off engine parts or break down, the way ordinary motor oils alone do . r.EW CAR SURA:-CE O:"LY $1.85. The first few miles of driving a new car may be the most fun fol" you. But they re the toughest for your engine * * * (PJrotect your investment by adding STI' to the motor oil right from the start. STI' Oil Treatment is so rich and strong it won t drain off vital engine parts the way ordinary motor oil alone does By keeping harmful friction and wear out, STP coverage keeps your engine s youthful spirit in * * "for year:' 15. A racing engine and your engine have some things in common. Heat. Friction. And wear. On thc' track . wir.ning c1!-ivers like :\olrio Andretti rply on the strong, silent treatment that helps prevent these hazards: STP Oil Treatment. Strong because STP gives motor oil the added film strength it r.ecds to stand up under heat and pressure. Figllts damaging friction and wear iike motor oil alone neVf'r ('ould. lG. You\' e spent L'Jree grand or mOI'C' on a sleek, suped-up, sporty (' ar. Protect your investment. Add STI' to your motor oi: At high speeds, new engines, especially high performance engines, are subject to friction that can cause metal breakdowns . STP cub tne friction. Cub the wear. Cuts it like no ordinary motor ojJ alone can , .

STP CORP., ET Ai.

5ri Complaint 17 :\othing COl! weal' down an engine'. vital moving parts like friction and heat. Damage valves and rings. Bring the life cycle of any engine to a grinding halt. But .vou can kick that \\'noJc route with STP Oil Treatment. STP clings to metal parts better than ordinal' Y motor' oi: alone. So mile after miJe, your machine " engine gets all the extra lubrication it needs to cut friction to a fraction lS. lTejevision advertisement sho\ving spacecraft heading for the moon, and an Indianapolis 1' act' carl A Iilln' What do these two vehicles have in common? They re both the product of long years of scientific testing. They both I'equire special care; special fuel and special lubrication. And your family car isn t any different. It needs special Jubrieation to protect its vita; f engine parts from everyday friction and wear. It need:: STP Oij Treatment 19. IT S :-01' YOCH BATTERY THAT S Rt:N DOWN, IT S YOUR OIL. Your battery s not always to blame fol' hard winter starts. The real winter villain is probably your oil. You see, ordinary motor oil drains off and runs dov.'n to a pan - where it stiffens from the cold. Result? When you try to start your car, the engine doesn t have sufficient lubrication to turn over. So you overworrrrrk the battery 'til you, yourself, run it down. The answer -- STP Oil Treatment. Cnlike onlinary motor oils, STP Oil Treatment clings to vital engine parts. Gives you the lubrication you need to start up faster aU winter long. ZO. That summer drive is restful for you. But the pace wears your engine thin. You drive faster, farther, hottel' than at any other time of the year. \Which can cause ordinary motor oil to break down- Hesult: extreme heat on metal parts. Then engine wear. Then er:gine damage. Cnless. of course, you use our cooling engine tonic: STP Oil Treatment. STP is so super-concentrated it dings to crucial parts, no matter how many miles you rack up in a day.

21. Watch out: Those wild beasts of heat, friction and weal' can claw apart engine parts. You need extra protection against those mill-eating predators. The extra protection of STP Oil Treatment. STP lubricates bettel' than regular motor oil alone. Helps your engine endure ferocious attacks " " * On dirt. On hard stuff. Load yom machine with STP while you still can. It s survival of the fittest 22. lTelevision demonstration j AnneI': On the left Jesse Takamiyama, biggest and most popular sumo wrestler in all Japan -. " " he s come here to challenge Andy Gnmatelli in a test of strength. (Advertisement shows GranateJJi and Takamiyama arm wrestling J SFX: GRt;NTS UF EXERTIOI\'. (Shows GranateJJ acknowledging Takamiyama strength with a grin J. Alldy no wonder you re champ! Next contest choose the weapons. rohm\vs Takamiyarna dipping a screwdl'iver tip into a can labelled " motor oil" J. AII,d!J- Put it in there. And try to hang on! (Shows Takamiyama holding onto oil-coated screwdriver tip with no effort J. Jesse: It's very easy, Andy. Andy: I know . )Jaw the re(!1 te:it. (emphasis original). (Shows Takamiyam.a putting screwdriver tip in STP Oil Treatment can J. Alia/Un STP Oil Treatment is slipperier than motor oil alone '" " " so thi:' time, Andy should do better. SF X: CLANG! lShows Takamiyama unable to hold onto scl' ewdriver J Andy: You can t win them all, .Jesse. (Shows Takamiyama returning to try again and againj. SFX: CLAKG! 2:3. (Television demonstration, with voice of Mike Maertens, ::ora Springs, 1owaj: Dear STP - Our mass media class at l\ ora Springs '" " '" High School has be(,n conducting tests on a number of products. We chose to test STP Oil Treatment when we saw your commercial. Vie dipped a screwdriver in motor oil and found we could hang on. The vie rcpeated the procedure with 51'1' and found we could not hang on " '" '" which proves STP is slipperier than motor oil alone. In conclusion, we found your product i:: as advertised.

24. A:JTJ-FREEZE FOR OIL. Short of Antarctica, all-weather oil doesn t ready freer:e But tell that to your no-go car some cold winter morning when the oil is so still in the pan it can t get up in time to help turn oyer the engine. Or saye your breath (and (i() FEDERAL TRADE CO lmission DECISIO:\S Complaint K7 F.TC.

battery) by adding STP t.o the oil at your favorite ga" :,tation. STP Oil Treatment :'tays racing- start better than oil alone car.. ,up all r,ig-ht Lubricates you off to a Maybe it did "tarUe you to learn there's an antifree,,e for oil ' lAdvertisement plctures an engine covered with snow and icicles, with a matrh being- lit under the engine 1.

B. STP GAS TREATMDJT 1. STP Cas Treatment cleans and tunes ,your engine as you drive. Restores all the pep and power you expect from that four-wheel flame. Next time you fill 'er up, try STP Gas Treatment ir. yom' tank. If that doesn t light her fire, nothing wil;. 2. Nun' when you add it to your gas it cleans .'10111' spark plugs better, it cleans your carburetor better so you re cleaning and tuning your engine as you drive. lemphasis in original J.

:3. Indianapolis, :'ay ;30 * 'k Mario Andretti' s car endured more punishment than your car s engine encounters in a lifetime * " * (A)nd STP Gas Treatment helped him get the mileage he needed to finish . kept his fuel system clean and trouble free, kept his engine tuned as he drove " 0;' "

4 If STP products worked so well for !dario Andretti, think what they il do for your own family car . (A)cld a can of STP Gas Treatment to your fuel today to dean your fuel system, tune your engine as you drive and give you the go-power that helped Anclretti win the 500.

S. STP " "' '" cleans and tunc.' your engine as you drive "' * "' You ll feel the difference with the very fir:;t can.

Ii. lTelevision advertisemf'nt, audio portionj. Chadey Hey. Bill, get rid of that clunker yet'! Rili. 1\0, its running great now. C'n hardly believe it * * '" (PJut some nev,,. stuff in the tank ;, "' "' This is somethin' different. STP Gas Treatment. It s jike a complete motor tune-up. " "' '" (K)now the best part, Charley. I was thinkin' of seHin ' that car. Andl fixed it fine * '" "' for on,y 7 Add it to your fuel and it eliminates power-robbing deposits of gun and varnish Cleans and tunes your engine as you drive H. lVoice of Andy Granatell, from audio portion of television advertisement I: Gentlemen, clean .your engines. Y DU lJ really feel the difference !J. Just add a can to your gasoline and, right away, it starts cleaning up on engine deposits STP Dual Oil Filter 1. STP Double Oil Filter. A filter in a filter to double clean your oi: 2 Two separate filters working together for dual filtration. 3. Because we utilize two filters, instead of just one, the STP Double Oil Filter is a lot lest; likely to clog.

. The STP Internal Differential Pressure Valve "' "' "' control(s) the amount of oil flow through the two filters depending on engine and weather demands. 5. iFrom audio portion of television advertisement J: A:-DY GRA:-AT1:LI.: You !'e looking at a rotary engine. We re testing the double oil filter on it now "' " * because I believe the Wankel Rotary Engine will power the cars of tomorrow. Meanwhile, get the STP Double Oil Filter for your present car. Not just a single filter on it hke the three leading brands, but a filter " " * Isound effectsJ * '" " in a filter lsholA'ing one filll'r being inserted inside anotherJ for extra protection. Nex: oil change, ask for tr1e STP Double Oil Filter. A filter in a filter to double clean your oil. G. STP Corporation unconditionally guarantecs this filter. It meets or exceeds all STP CORP., ET AL.

) Ii Cumplaint listed American automobile manufacturers' original equipment and/or warranty specifications.

PAR. 5. By and through the use of the statements, representations and demonstrations set out in Paragraph Four above, and others of similar import not specifically set out herein, respondents have represented and are now representing that:

STP OIL TREATME"T 1. Every car needs STP Oil Treatment in order to obtain adequate protection against friction and wear; (see particularly Paragraph Four subparagraphs A 13 18l;

2. E very motor oil requires the addition of STP Oi1 Treatment in order to provide adequate engine lubrication; fsee particularly Paragraph Four, subparagraphs A 9 21 J;

3. STP Oil Treatment makes every car which uses it easier to start in cold weather; (see particularly Paragraph Four, subparagraphs 9, 10 241;

4. STP Oil Treatment eliminates friction and wear in an automobile engine; (see particularly Paragraph Four, subparagraphs A 14J; 5. The use of STP Oil Treatment win prevent every car which uses it from breaking down or requiring engine repairs; isee particularly Paragraph Four, subparagraphs A 1 81;

6. The screwdriver television demonstration proves that STP Oij Treatment mixed with motor oil wil lubricate engines better than motor oil alone; (see particularly Paragraph Four, subparagraphs A 221;

STP GAS TREATMEKT 7. STP Gas Treatment will provide a complete engine tune up, or the equivalent of a complete engine tune-up, as the car is driven; (see particularly Paragraph Four, subparagraphs B 1 7J; 8. STP Gas Treatment wi1 clean the entire engine; lsee particularly Paragraph Four, subparagraphs B 1 8 J;

STP DUAL OIl. FILTER 9. The STP Dual Oil Filter meets or exceeds all automobile manufacturers' original equipment specifications for oil filters; (see particularly Paragraph Four, subparagraph C 6J; 10. The motor oil flows consecutively through tv.'o separate filters and therefore receives two separate cleanings, each time it passes through the STP Dual Oi1 Filter lsee Paragraph Four, subparagraphs C 5 1;

fi2 FEDERAL TRADE CmDIISSION DECISIONS Complaint Hi F.

PAR. G. In truth and in fact:

STP OIL TREATMENT 1. E very car docs not need STP Oil Treatment in order to obtain adequate protection against friction and wear. 2. Every motor oil does not require the addition of STP Oil Treatment in order to provide adequate engine lubrication. ::S. STP Oil Treatment does not make every car which uses it easier to start in cold weather.

4. STP Oil Treatment does not eliminate friction and \vear in an automobile engine.

5. The use of STP Oil Treatment will not prevent every car which uses it from breaking down or requiring engine repairs. 6. The screwdriver television demonstration does not prove that STP Oil Treatment mixed v.,with motor oil will lubricate engines better than motor oil alone.

STP GAS TREATME"T 7. STP Gas Treatment wil not provide a complete tune-up or the equivalent of a complete tunc-up, as the car is driven. 8. STP Gas Treatment wil not clean the entire engine. STP DUAL OIL !"FILTER 9. Thc STP Dual Oil Filter does not meet or exceed all automobilc manufacturers' original equipment specifications for oil filters. 10. The motor oil does not flow consecutively through t\VO separate filters, and does not therefore receive two separate cleanings, each time it passcs through thc STP Dual Oil Filter.

Therefore, the aforesaid statements, representations, and the demonstration set forth in Paragraphs Four and Five were and are false, misleading, and deceptive.

PAR. 7. In the course and conduct of its business as aforesaid, and at all times mentioned herein, respondent STP Corporation has been, is now in substantial competition in commerce with corporations, firms and individuals in the sale of additives and other automotive products of the same general kind and nature as those sold by respondent STP Corporation.

In the course and conduct of its business as aforesaid, and at all times mentioned herein, respondent Stern, \Valters & Simmons has been and is now in substantial competition in commerce with corporations, firms and individuals in the business of rendering advertising services. PAR. 8. The use by respondents of the aforesaid false, misleading and STP CORP. , ET A L. ();3 Gf) Df'ci ion and Ordi!!' deceptive statements. representations, and demonstrations has haci and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements, representations, and the demonstrations were and are true and into the purchase of substantial quantities of' STP Corporation products, by reason of said erroneous and mistaken belief. PAR. 9. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitute, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the bureau proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violations of the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of such agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint and waivers and other provisions as required by the Commission Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the sair! Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and having duly considered the comments filed thereafter pursuant to Section 2.:J4(b) of its Rules, now in further conformity with the procedure prescribed in Section 2.:34 of its Rules the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Proposed respondent STP Corporation is a corporation existing and doing business under and by virtue of the laws of the State of Delaware, with its principal place of business located at 1400 Commercial Blvd., Fort Lauderdale, Florida.

(-d FEDERAL TRADE COM)lISSlON DECISIONS Decision and Order 87 F.TC 2. Proposed respondent Stern, Walters & Simmons, Inc. is a corporation existing and doing business under and by virtue of the laws of the State of Ilinois, with its principal place of business located at 150 E. Huron St., Chicago, Ilinois.

3. The Federal Trade Commission has jurisdiction of tbe subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That responde,nts STP corporation, and Stern, Walters & Simmons, Inc., corporations, and their officers, successors, assigns representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device: 1. In connection with the advertising, offering for sale, sale, or distribution of STP Oil Treatment, or any other product the customary or usual use of which is as an additive to motor oil, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, direcUy or by implication, that any such product:

a. Prevents cars which use it from experiencing mechanical breakdO\vns or from requiring repairs;

b. Cures or remedies mechanical malfunctions; c. Eliminates friction or wear or is required to protect against friction or wear;

d. Acts or performs like or has the effect of antifreeze in the oil; or \vi1 enable cars to start, or to start more easily, in cold weather; e. Is required in order to obtain lubrication from motor oil; f. Is slipperier than motor oil alone.

2. In connection with the advertising, offering for sale, sale, or distribution of STP Oil Treatment, or any other product the customary or usual use of which is as an additive to motor oil, or which is " isadverbsed for such use, in or affecting commerce, as "commerce defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the capacities, characteristics, or qualities of motor oil or of any grade or weight of motor oil. It is Iltrther ordered That respondents STP Corporation, and Stern Walters & Simmons, Inc., corporations, and their officers, successors assigns, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device in connection with j(j STP COHP., ET AL. (;5 Deci ion and Onler Lhe advertising, offering for sale, sale or distribution of STP Gas Treatment, or any other product the cu tomary or usual use of which is as an additive to gasoline, in or affecting commerce, a commerce " is defined in the Federal Trade Commission Act, cia forthwith cease and desist from representing, directly or hy implication, that any such product:

1. Tune an engine, or will provide the equivalent of a complete engine tunc-up, or make engine tune-ups unnecessary; 2. Provides an:i portion of an engine tune-up unless, in immediate conjunction therewith, respondents disclose, clearly and con picuously, that the advertised product does not provide all of the features of a mechanical engine tune-up;

3. Cleans or helps to clean an entire engine without clearly designating the component or components or functional areas of the engine or other portion of the motor vehicle which are affected. It 1:8 further ordered That respondents STP Corporation, and Stern \Valters & Simmons . Inc., corporations, and their officers, successors assigns, agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device in connection with the advertising, offering for sale, sale or distribution of oil filters in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do cease and desist from:

I. Eepresenting, directly or by implication, that any such product: a. Meets, conforms with, or exceeds any automotive manufacturers specifications, or is approved by any automobile manufacturer for use in connection \with any vehicle or engine, when such is not the fact; b. "Double cleans" motor oil, or representing in any other manner that any such product filters motor oil more than once each time the oil flows through the filter cannister except as provided in paragraph 2 immediately below, unless the motor oil flows through two or more filtering elements in series each time the motor oil flows through the filter cannister.

2. Using the words "dual double double stage two filters in one two stage filter within a filter " or any other terminology , towhich suggests the presence of more than one filtering element disclosing that thedescribe any automotive oil filter \vithout clearly motor oil is filtered only once each time it flows through the filter cannister. unless the motor oil flo\vs through two or more filtering elements in series each time the motor oil flows through the filter cannister. In television advertising, the disclosure that motor oil may be filtered only once each time it flo\vs through the filter cannister when (ir; FEDERAL TRADE COMMISSJO:- DECISIONS Decision and Order H7 F .

such is the fact shall be made in such a manner that it is clearly disclosed.

It is fni'hc)' ordered That respondents STP Corporation and Stern Walters & Simmons, Inc., corporations, and their officers, successors assigns, agents, representatives and employees, directly or through any corporation, subsidiary division or other device, in connection with the advertising, offering for sale, sale or distribution of STP Oil Treatment or any other product the customary or usual use of which is as an additive to motor oil, in or affecting commerce, as "commerce " is defined in the Federal Trade Commission Act, do forthwith cease and desist from disseminating any advertisement in which a representation of benefit is made as to such product when used as an additive to motor oil unless (I) such representation is true; (2) respondent STF Corporation possesses and relies upon, prior to the time such representation is first made, a competent and reliable scientific test or tests or other objective data which substantiate such representation; or (3) '0/ith respect to respondent Stem, Walters & Simmons, Inc. respondent possesses and relies upon, prior to the time such representation is first made, a reasonable basis for such representation which shall consist of an opinion in writing signed by a person qualified by education and experience to render such an opinion (who, if qualified by education and experience, may be a person retained or employed by respondent' s client) that a competent and reliable scientific test or tests or other objective data exist to substantiate such representation; pT()'uided that any such opinion also discloses the nature of such test or tests or other objective data and provided further that respondent neither knows, nor has reason to kno\v, nor upon reasonable inquiry could have known, that such test or tests or other objective data do not in fact substantiate such representation or that any such opinion does not constitute a reasonable basis for such representation. It is further ordered That respondents STP Corporation and Stern Walters & Simmons, Inc., corporations, and their officers, successors assigns, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device in connection with the advertising, offering for sale, sale or distribution of STP Oil Treatment, STP Gas Treatment, STP Oil Filters, or any other product manufactured, sold or ehstributed by STP Corporation the customary or usual use of which is as an additive to motor oil or gasoline or as an :)( ;

STl' CORP. . ET AL.

Deci ion and Order oil filter, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do cease and desist from: 1. Advertising by or through the use of or in conjunction with any test, experiment, or demonstration or the result thereof, or any other information or evidence that appears or purports to confirm or prove or is offered as confirmation, evidence, or proof of any fact, product characteristic or the truth of any representation, which does not accurately demonstrate, prove or confirm such fact, product characteristic, or representation.

2. Using any pictorial or other visual means of communication with or without an accompanying verbal text which directly or by implication creates a misleading impression in the minds of viewers as to the true state of material facts which are the subject of said pictures or other visual means of communication.

3. :\lisrepresenting in any manner or by any means any characteristic, property, quality, or the result of use of any such product. It i8 further ordered That respondents STP Corporation and Stern Walters & Simmons, Inc., shall forthwith distribute a copy of this ordcr to each of their operating divisions and to each of their officers, agents representatives or employees engaged in the creation or approval of advertisements.

It is jiO'ther ordered That respondents STP Corporation and Stern Walters & Simmons, Inc., notify the Commission at least thirty (80) days prior to any proposed change in said corporate respondent such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of this oreler.

It is further ordered That respondents STP Corporation and Stern Walters & Simmons, Inc" shall, within sixty (60) days after service of this order upon them, file with the Commission, in writing, a report setting forth in detail the manner and form in which they have complied with this order.

Commissioner Hanford dissented on the grounds that the order is too weak and that STP should bc explicitly required to qualify its future claims.

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(11' FEDI'HAL TRADE COMMISSIO;; DECISIO;;S Complaint 1',/1'.1. I" THE :VIATTER OF PARKER ADVERTISI)JG, INC.

CO?\SENT ORDER , ETC., II\' REGARD TO ALLEGED VIOLATIO THE FEDERAL TRADE C01IMISSlON ACT Docket 2,,8 ('()IiIIJ/alnl inn. 1.ri6- Dccii;J(lil . '/1111 !J7(j Cor. sent order requiring a Palo", Venles PE"ninsula, CCI:if., advertising agency, among other tr)lng to cease representing that any automobile tire hils any safety or perfonr, e characteristic or is superior in quality:., or performance to other tires; a;1(1 making any generalized safety claims. such as "securit:y. " Further respondent is required to have a "reasonable basis " in substantiation of claims reganling the safety or performance charac eristics of an:.,,:automobile product. Appearances For the Commission: Bruce Parker.

For the respondent: Anthony Liebig, Lillick, j1,cHnse Charles Los Angeles, Calif.

COl\IPLAI Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Parker Advertising, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Parker Advertising, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offices and place of business located at (j09 Deep Valley Dr., Palos Verdes Penninsu1a, California. PAR. 2. Respondent Parker Advertising, Inc. has been, and now is, an Inc., and advertising agency of Bridgcstone Tire Company of America, has prepared and placed for publication advertising material, including but not limited to the advertising referred to herein. to promote the sale of the H. 170V steel belted radial tire, an automobile passenger tire sold and distributed by Bridgestone Tire Company of America, Inc. respondent Parker r AR. 3. In the course and conduct of its business, Advertising Inc. , has disseminated, and caused the dissemination of advertisements concerning the aforementioned producl by various limited to means in or affecting commerce, including but not advertisements printed in magazines and newspapers distributed by PARKER ADVF:RTISING . I:\C. fig (is Complaint the mail across State lines, and transmitted by television and radio stations located in various States of the l:united States and in theand District of Columbia, having" sufficient power to carry such broadcasts across State lines, for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of said product. PAR. 4. Among the advertisements so disseminated or caused to be disseminated by respondent is a print advertisement attached as Bxhibit A.

PAR. 5. Through the use of the aforesaid statements and representations made in Exhibit A, respondent represented and is now representing, rlirectly or by implication, that the RD-J70V steel-belted radial tire is the best radial tire in America. PAR. G. At the time respondent made the representation as alleged in Paragraph Five, respondent did not possess and rely on a reasonable basis consisting of steel-belted radial tire is superior in terms of overall performance to all other radial tires in America. Therefore, the making of said representation as alleged in Paragraph Five constituted, and nO\v constitutes, an unfair and deceptive act or practice in and affecting commerce.

PAR. 7. Further, through the use of the aforesaid statements and representations made in Exhibit A, respondent represented and is now representing, directly or by implication, that the RD- 170V steel-belted radial tire is superior to all other radial tires in America with respect to the follo\ving characteristics:

1. Puncture protection;

2. Cornering and stopping; and :J. Gas mileage.

PAR. 8. Further, through the use of the aforesaid statements and representations made in Exhibit A respondent represented and is now representing, directly or by implication, that the RD- I 70V steel-belted radial tire provides a degree of long-run security and comfort that is rare in all other radial tires in America.

PAR. 9. At the time respondent made the statements and representa- Uons as alleged in Paragraphs Seven and Eight, respondent did not possess and rely on a reasonable basis consisting of competent scientific tests for making said statements and representations as herein alleged constituted, and now constitute, unfair and deceptive acts or practices in or affecting commerce.

PAR. 10. In the course and conduct of' its aforesaid business, and at all times mentioned herein, respondent Parker Advertising, Inc. , has been and no\v is in substantial competition in or affecting commerce with other advertising agencies.

PAR. 11. The use by respondent of the aforesaid false, misleading, FEDERAL TRADE COM:dISSION DECISIO:'S Complaint 87 FTC.

deceptive or unfair statements and representations as alleged herein and the dissemination of the aforesaid unfair or deceptive advertisements, has had, and now has, the capacity and tendency to mislead members of the consuming public into the purchase of substantial quantities of the RD- 170V steel-belted radial tire sold and distributed by Bridgestone Tire Company of America, Inc. Further, as a result thereof, substantial trade is being unfairly diverted to respondent Parker Advertising, Inc., from its competitors. PAR. 12. The aforesaid acts and practices of respondent, as herein alleged, including the dissemination of unfair or deceptive advertisements, were and are all to the prejudice and injury of the public and of respondent Parker Advertising, lnc.'s competitors, and constituted and now constitute, unfair and deceptive acts or practices and unfair methods of competition in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act.

. : , \ , ( . ) .., . ......... PARKER ADVERTISING , I:\C.

(is Complaint ulJ I ( :Jr1r r: LQ)no. A .

If jCQDcQ Dlf (0 rr A((0 u L u U0(Q J\ow fha, r djal rarher I:ripona!lkjadlofp""emery. bc;,J ! R 9(dej.ree;o"p:lc work I h an ord in" ry h; ;' pI)' t i rc,; a rl' Then Bridj.cs,onchuilt" ;0 p llel to permit ",ax.mum bc..omin til: s,Li drivin spcr r" I r.d i" I ,; rc fan 0' Aexinl: wirhou"awin 'tandard for lhu,, h,ful For punct.:re prolccllon rioJjn mororisa. iu" ",ha' doe \'e Incorporaled three steel Bridgc'!one icc;al 1" k c ro be ro ps i" ,h; rad i" I bei15((m,nourown "cel rord combina,ionofre il;em (sbei, revolution? plies with j.irdlinl' 'tecl beh, Arr.ong o!h r :hlng.. pro ide rare ree of joni' superior \'ear- up ro 4U,OUO run sccurirl' and, omforr miJ., orbeuer. Fint ra'.. Among 3,200 Iypesof punnureprOfcnion_ Superinr Srldgestone !ltesdo we build cornetin and ""I'pin, A II I thcbesr Tadj"l;n Amcrica/ q"iel ("on,fon"hlc ride and You be the jLlde, Vis;, your not;ceably b n("r mileage -:l Bridgenone dc jer IOd,,). And a pr;cc thr! keef"'he ro" per tire mrl Jown;n ,hc I'I nr) in"c or rh,. lJ,u rn;n;- Brldgestone designed its rwo- The\, jrdlcd,e ,ire . hold RD-170V::te",! belled radiallo ,he rreJrf ""n;on- f1rn\ u" meelaUlheserequiremenl,. reduce fre e"rinl' ''1uirm !CC I , : , '1 !lr nrr \ ::.z f!' ""U Adj"io"..1 L,h,;,' f'1i.. LI !f ;L. runo;nj. srruil'fH "cr,,,, rh. I:!id1Jld.L\' l i;i 111ILil, l1 I Inourn" c,,,d, LLhur;"arie . we found the Ii uD rij: h,rubbl' rron'p"undsand rheYel\nw Pal''" for your !rt- J '0 7r"mc(' , jll OOO 1tJ, \ Uriul:cswneTire D-lIler- c"'r-ridi,, mill., ",j,h;1 !""uu i:'',,!'"L-...:J:. Checck SITO UDw i0 -6- The ,j"", Io""",,',I q". li" ,jrc- 7:2 FEDERAL TRADE CO I"IISSI()K DECISIONS Dccision and Orrl 87 F DECISIO" AKD ORDER The FeclcJ'al Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter \with a copy of a draft of complaint which the bureau proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violations of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of such agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been vio1atecl as alleged in such complaint and \vaivers and other provisions as required by the Commission Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Act, and that complaint should issue stating its cbarges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (GO) days, now in further conformity with the procedure prescriberl in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Parker Advertising, Inc. is a corporation, organized existing and doing business under and by virtue of the la\vs of the State of California \with its principal offices and place of business located at G09 Deep Valley Dr., Palos Verdes Peninsula, California. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent and the proceeding is in the public interest.

ORDER It is oJ'de/' That respondent Parker Advertising, Inc., a corporation, its successors and assigns, officers, representatives, agents employees, directly through any corporate or other device, in connec tion with the advertising, offering for sale, sale or distribution of any product in or affecting commerce as ncommerce " is defined in the Federal Trade Commission Act, do forthwith cease and desist from: PARKEr, AlJVERTISI);G. INC.

(ji" Decision and Onle)' 1. Representing, directly or by implication, that any automobile tire has any safety or performance characteristic or is superior in quality or performance to other tires, either overall or with respect to any such characteristic, unless at the time such representation is first disseminated respondent has a reasonable basis for such representation based on competent scientific tests in the possession of respondent or its client, and respondent has relied upon such tests. PTO'vided, furthername That with respect to any representation concerning the safety of automobile tires \which representation is not expressly limited to a specific safety charactcristic(s), the basis for such a representation shall include, at the minimum, tests for the following characteristics: (a) stopping; (h) cornering; (c) puncturc protection; and (d) high speecl performance.

2. Failing to maintain in conjunction with Paragraph One of this order, all test results, data, and information which come into its possession and which constitute a basis for said representation, all of which shall be available in written form for inspection, upon reasonable notice, for at least three years following the final use of tbe representation.

3. Making any representation, directly or by implication, regarding the safety or performance characteristics of any automotive product unless at the time such representation is first disseminated respondent has a reasonable basis for such representation in the possession of respondent or its chent, and respondent has relied upon such basis. Provided, however That with respect to automobile tires, the only reasonable basis for such a representation shall be competent scientific tests as specified in Paragraph One of this order. 4. Faihng to provide for the maintenance of, in conjunction with Paragraph Three of this order, all test results, data, and information which come into its possession and which constitute a basis for said representation, all of which shall be available in written form for inspection, upon reasonable notice, for at least three years following the final use of the representation.

It ;s jilrther ordaed That for the purpose of Paragraph One of Part I of this order:

1. A claim of "security" shall be construed as a safety claim in connection with automobile tires.

2. A representation as to the quality or performance characteristics of any automobile tire implies that it is superior in quality or perfo;mance to any other automobile tire or all other automobile tires if it is phrased in the comparative or superlative degree, or if any 216- 969 O- LT - 77 - (;

l)EI(AL TRADE COMMISSION DECISIONS Deri ion and Order Hi FTC. advertising contained such representation conveys a net impression of comparative superiority.

It 18 fUi'ther ordel' That respondent Parker Advertising, Inc., shall forthwith deliver a copy of this order to each of its operating divisions. It is fui' the)' o)'de/'ed That respondent notify the Commission at least thirty (:30) days prior to any proposed change such as dissolution assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation that may affect the compliance obligations arising out of the order, It is ji,rther ordered That respondent shall, within sixty (GO) days after service upon it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in \which it has complied with the order to cease and desist. KOSCOT INTERPLANETARY , I:\C., ET AL.

Modifying Order