Chrysler Corporation

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IN THE MAlTER OF CHRYSLER CORPORATION MODIFIED ORDER, IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Doket 8995. Final Order, Apr. 13, 1976 - Modified Order, Dec. 5, 1977 This modified order to ceaae and desist replaces an earlier order issued on April 13 1976, 41 FR 20653, 87 F. C. 719. In accordance with the decision and judgment rendered by the Court of Appeals for the District of Columbia on July 6, 1977, 561 F.2d 357 (1977), this order deletes Paragaphs 2 and 3 of the original order, which pertain to performance tests and results. Appearances For the Commission: Robert Field, Carlton Eastlake and Richard Bloomfield.

For the respondent: Walter B. Maher and Hogan Hartson, Washington, D. C.

MODIFIED ORDER To CEASE AND DESIST Respondent having filed in the United States Court of Appeals for the District of Columbia on June 30, 1976, a petition to review an order to cease and desist issued on April 13, 1976 (87 F, C. 719); and the Court having rendered its decision and judgment on July 6, 1977 affrming and enforcing the Commission s order with the deletion of Paragraphs 2 and 3, and respondent not having fied a petition for certiorari within the time permitted by law; Now, therefore, it is hereby ordered, That the aforesaid order to cease and desist be, and it hereby is, modified in accordance with the decision and judgment of the Court to read as follows: ORDER It is ordered, That respondent Chrysler Corporation and its offcers, representatives, and agents and employees, directly or through any corporate or other device, in connection with the advertising, offering for sale, sale or distribution of products sold by the respondent in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or by implication, by reference to a test or tests, that any of respondent's automobiles are superior with , 606 Modified Order regard to fuel economy to any other automobiles whether manufactured by respondent or others unless:

a, such superiority has been demonstrated as to the model(s) for which it is claimed by such test or tests with respect to each sample, or the valid average of all identical samples, of each model represented to have been tested; or b. the valid test results for each sample, or the valid average of all identical samples, of each model so compared, including the advertised model as well as such makes and models to which the advertised model is compared, are clearly and conspicuously disclosed.

For the purpose of this order sample" shall mean an actual automobile tested, 2. Misrepresenting in any manner the fuel economy of any automobile or the superiority of any automobile over competing products in terms of fuel economy.

It is further ordered, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is further ordered, That respondent notify the Commission at least 30 days prior to any proposed change in the 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 the order. It is further ordered, That respondent shall, within sixty (60) days after this order becomes "final " fie with the Commission a report, in writing, setting forth in detail the manner and form of its compliance with this order, Complaint 90 F.