Leroy Gordon Cooper, Jr., A/K/A Gordon Cooper

Text (OCR of the scan at left; may contain errors)

Complaint 94 F.T.C.

IN THE MATTER OF

LEROY GORDON COOPER, JR. a/k/a GORDON COOPER

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT

Docket C-2993. Complaint, Sept. 25, 1979 — Decision, Sept. 25, 1979

This consent order, among other things, requires an individual from Encino, Calif. engaged in advertising, selling and endorsing a product known, among other names, as the G.R. Valve, to cease representing, without substantiation, that installing the G.R. Valve or any substantially similar automobile retrofit device in a motor vehicle will result in fuel economy improvement. The order further prohibits respondent from using or providing any endorsement or testimonial which has not been properly authorized or which contains unsubstantiated representations; and bars him from misrepresenting an endorser's expertise in a field of knowledge, and the conclusions of tests or surveys relating to the performance of a product or service. Additionally, the order requires that advertising disclose any material economic interest in the sale of a product or service that may exist between endorser and marketer of such product or service.

Appearances

For the Commission: Laurence M. Kahn.

For the respondent: Murray Lertzman, Beverly Hills, Calif.

COMPLAINT

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 Gordon Cooper, an individual, hereinafter referred to as "respondent," having violated the provisions of the 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 Gordon Cooper is an individual whose address is 5011 Woodley Ave., Encino, California and is a former N.A.S.A. astronaut.

PAR. 2. Respondent, in conjunction with Dan Mar Products, Inc., a California corporation, RR International, Inc., a Delaware corporation, C.I. Energy Development, Inc., a California corporation, and American Consumer, Inc., a Pennsylvania corporation, has been and is now engaged in the marketing and advertising of a product variously known as the G.R. Valve, the Turbo-Dyne Energy Cham-

LEROY GORDON COOPER, JR. 675 674 Complaint ber, and by other names, (hereinafter "product") which product is advertised to be a means of improving fuel economy in automobiles. Said product is an automobile retrofit device as "automobile retrofit device" is defined in § 301 of the Energy Policy and Conservation Act of 1975, 15 U.S.C. 2011. Respondent, in conjunction with the other above-named parties and in connection with the marketing of said product, has disseminated, published and distributed and now disseminates, publishes and distributes advertisements and promotional material for the purpose of promoting the sale of said product. PAR. 3. One of the means that has been used to market and advertise said product has been to use a celebrity endorsement of said product. Respondent has aided the promotion of said product by providing such endorsement. This endorsement appeared in disseminated advertisements and other sales promotional materials for said product. In return for his role in the marketing of said product, respondent has received remuneration from the manufacturer and distributor of the product. The amount of such remuneration was and is dependent upon the number of products sold. PAR. 4. In the course and conduct of his said business in conjunction with the other parties named in Paragraph Two, respondent has disseminated and caused the dissemination of certain advertisements for said product through the United States mail and by various means in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, including but not limited to, the insertion of advertisements in magazines and newspapers with national circulations and the placement of advertisements through television stations with sufficient power to broadcast across state lines and into the District of Columbia; and has disseminated and caused the dissemination of advertisements for said product by various means, including but not limited to the aforesaid media, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of said product in commerce. PAR. 5. Among the advertisements and other sales promotional materials are the materials identified as Exhibits A-H which are attached hereto. PAR. 6. Through the use of advertisements referred to in Paragraph Five and other advertisements and sales promotional materials, respondent, in conjunction with the other parties named in Paragraph Two, represented and now represents, directly or by implication, that

Complaint 94 F.T.C.

a. the G.R. Valve when installed in a typical automobile will significantly improve fuel economy; b. a typical driver can ordinarily obtain, under normal driving conditions, a fuel economy improvement which will approximate or equal seven miles per gallon when the G.R. Valve is installed in his/her automobile; c. competent scientific tests for fuel economy of automobiles in which the G.R. Valve has been installed prove the fuel economy claims made for the G.R. Valve; d. Gordon Cooper bears only the relationship of endorser to the marketing of said product; e. Gordon Cooper has the education, training, and knowledge necessary to qualify him as an expert in the field of automotive engineering; f. results of consumer usage, as evidenced by consumer testimonials, prove that the G.R. Valve significantly improves fuel economy.

PAR. 7. At the time respondent, in conjunction with the other parties named in Paragraph Two, made the representations alleged in Paragraph Six of the complaint, he did not possess and rely upon a reasonable basis for such representations. Therefore, said advertisements are deceptive, misleading, or unfair. PAR. 8. In truth and in fact, contrary to the representations in Paragraph Six:

a. the G.R. Valve when installed in a typical automobile will not significantly improve fuel economy; b. a typical driver cannot ordinarily obtain under normal driving conditions a fuel economy improvement which will approximate or equal seven miles per gallon when the G.R. Valve is installed in his/her automobile; c. no competent scientific tests for fuel economy of automobiles in which the G.R. Valve has been installed prove the fuel economy claims made for the G.R. Valve; d. Gordon Cooper bears not only the relationship of endorser to the marketing of said product, but also bears the relationship of principal to the marketing of said product which fact is not disclosed and is material; e. Gordon Cooper does not have the education, training, and knowledge to qualify him as an expert in the field of automotive engineering; f. results of consumer usage, as evidenced by consumer testimonials, do not prove that the G.R. Valve significantly improves fuel economy.

LEROY GORDON [illegible]

Complaint

Therefore, said advertisements are deceptive, misleading, or unfair. PAR. 9. Exhibits A-H and other advertisements represent, directly and by implication, that respondent had a reasonable basis for making, at the time they were made, the representations alleged in Paragraph Six. In truth and in fact, respondent had no reasonable basis for such representations. Therefore, said advertisements are deceptive, misleading, or unfair. PAR. 10. In the course and conduct of his said business, in conjunction with the other parties named in Paragraph Two, and at all times mentioned herein, respondent has been, and now is, in substantial competition in or affecting commerce with corporations, firms and individuals engaged in the sale of automobile retrofit devices. PAR. 11. The use by respondent, in conjunction with the other parties named in Paragraph Two, of the aforesaid unfair or deceptive representations and the dissemination of the aforesaid false advertisements has had, and now has, the capacity and tendency to mislead members of the consuming public into the erroneous and mistaken belief that said representations were and are true and into the purchase of substantial quantities of products sold by respondent, in conjunction with the other parties named in Paragraph Two, by reason of said erroneous and mistaken belief. PAR. 12. The aforesaid acts and practices of respondent, as herein alleged, including the dissemination of the aforesaid false advertisements, were and are all to the prejudice and injury of the public and of respondent's competitors, and constituted and now constitute, unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, in violation of Section 5 of the Federal Trade Commission Act.

Complaint 94 F.T.C.

Ex. A "IT'S A FACT!—INCREASES MILEAGE UP TO 8 MILES PER GALLON."

Says GORDON COOPER GEMINI ASTRONAUT "IMPROVES ENGINE PERFORMANCE, REDUCES SMOG EMISSION AND CLEANS YOUR ENGINE."

[illegible]

LEROY GORDON COOPER, JR.

Complaint Now transform air into fuel and increase your mileage up to 28% *! [illegible] COL. GORDON COOPER [illegible] Ex. B Copy of ad published 5/17/78 Valley News spec 2

Complaint 94 F.T.C.

Ex. C It Really Works! THIS AMAZING DEVICE CAN INCREASE YOUR GAS MILEAGE UP TO 8 MILES PER GALLON!

Says GORDON COOPER Gemini Astronaut

Yes! Save Gas by the Gallon!

Make Your Car Run Better Too!

New Gas Saver Slips On in Minutes!

If there's one thing an astronaut has no use for, It's a new invention that doesn't do what it's supposed to do! That's why we asked astronaut Gordon Cooper to test the G-R GAS SAVER VALVE in his independent engineering laboratory. Here's what Gordon Cooper told us the G-R GAS SAVER VALVE would do for any carbureted automobile:

* INCREASE GAS MILEAGE -- UP TO 28% MORE! * ACTUALLY IMPROVE ENGINE PERFORMANCE AT THE SAME TIME! * CLEAN THE ENGINE OF CRIPPLING CARBON DEPOSITS WHILE DRIVING! * REDUCE SMOG EMISSIONS MEASURABLY!

Impressive results? Definitely. But we are particularly fussy about our cars. So, Mr. Cooper's results not withstanding, we went to the Dept. of Industrial Education at Loma Linda University and gave them a dozen or so G-R GAS SAVER VALVES. We asked them to test this now

LEROY GORDON COOPER, JR. 681

674 Complaint

invention in city and highway driving -- use it on different kinds of cars, big and small -- even trucks -- and report the conclusions, good or bad. Here's what the Loma Linda University tests confirmed about the G-R GAS SAVER VALVE:

* It Cuts Gas Consumption in Every Car Tested -- Up to 28%! * It Makes the Engine Run More Efficiently! * It Reduces Polluting Exhaust Emissions as Much as 50%!

Then reports came back from our own "seat of the pants" test. That's where ordinary drivers like you and me pop a G-R GAS SAVER VALVE into their car and record the results for themselves. For example:

"...on my Pontiac Le Mans...mileage increased from 10 to 27.2...the improvement is phenomenal."

-Mr. P. v. S.

Newbury Park, Calif.

"...on my Volkswagen Bus, it's mileage increased from 18 to 23 miles per gallon...also have better start in the morning."

-Mr. Otto Geller, President, Volkswagen Club of America Ventura, Calif.

We found that a 1966 GMC 66-passenger school bus got 40% better gas mileage! A pickup truck with camper got 38.2% better mileage! A 1973 Ford got 28.7% better mileage! And so it went. Everybody we heard from reported a significant increase in gas mileage and often a noticeable improvement in performance the moment they snapped the G-R GAS SAVER VALVE on their car!

SLIP IT IN PLACE YOURSELF...IN SECONDS!

By now we were thoroughly convinced that there really was an exciting and easy way to save big money at the gas pump. We wanted a G-R GAS SAVER VALVE on every company car as fast as possible! But we still wondered if installing this fascinating money saver was as simple as it was cracked up to be. Instead of going to a mechanic we handed the

Complaint 94 F.T.C.

device and its simple instructions to three people:

1. A young lady who is so mechanically minded she really needed help opening the hood.

2. A self-admitted fumble-fingers copy chief who shies away from a pair of pliers.

3. A guy who spends his weekends tinkering with the innards of his imported English sports car.

Care to guess the outcome of the race?

Frankly, it was a dead heat! (Subtracting the time it took the young lady to get the hood open). Mechanical skill just isn't required! Nearly everybody can follow the one-two-three step instructions and be saving gas by the gallon in minutes! (Susan Cooper, Gordon's lovely wife, popped a G-R GAS SAVER VALVE into her '74 Vega in a mere 30 seconds!)

BUY THOSE SPECIAL THINGS YOU WANT WITH WHAT YOU SAVE ON GAS!

Now, instead of spiraling gasoline prices stealing money from your pocket (even on short trips), you'll put the brakes to this money drain! You'll do it effortlessly in minutes -- and your insatiably thirsty carburetor will be under control at last! Certainly we all nave plenty of things to do with our hard-earned money and pouring it into the gas tank isn't one of them!

FEEL YOUR ENGINE RUN BETTER - AND CLEAN ITSELF TOO!

The G-R GAS SAVER VALVE makes your carburetor work with optimum efficiency AT ALL SPEEDS. (Most carburetors are really efficient only at about 35 mph.) It makes your carburetor breathe freely, perfectly mixing, with almost computer accuracy, the precise ratio of gas and air needed at any given split second. Not a drop more gas than necessary -- just all you really need and no more. Better yet, the G-R GAS SAVER VALVE

LEROY GORDON COOPER, JR.

Complaint makes your engine run so right that many exhaust fumes which used to pollute the air around your car are now re-burned as valuable fuel! ORDER NOW ON OUR UNCONDITIONAL MONEY-BACK GUARANTEE! We want you to put a G-R GAS SAVER VALVE on your car right away -- before you spend another unnecessary dollar for gas your car is now consuming ravenously.

We want to prove that Gordon Cooper's laboratory results, the special investigation by the staff at Loma Linda University and our own results are everything we say they are. Use the order form below...and if for any reason you don't agree -- enthusiastically, wholeheartedly -- that the G-R GAS SAVER VALVE is the best idea you've ever seen for your car, send it back for refund, no questions asked. Try it for two weeks; then if you're not convinced return it. The G-R GAS SAVER VALVE costs $15.95. You'll be amazed how fast it will pay for itself -- and start putting money back into your pocket! HAPPY CUSTOMERS WRITE...

"I have a 1977 Malibu Classic Station Wagon which I use for work. I was getting an average of 11.9 miles per gallon ... since the installation of the G-R Valve I am getting an average of 16.4 miles per gallon ... I am a very cautious man about pushing or praising any item before I know from my own personal use that it works. I must say that I would advise everyone... to use the new G-R Valve, plus I feel my car's performance has increased." Mr. T. M.

Compton, Calif.

"In my capacity as Sales Manager I drive several hundred miles per week. My work car is a 1968 Ford Galaxy. Last May I installed a G-R Valve, increasing the mileage from 15.2 to 19.8 m.p.g."

Mr. W. S.

Santa Monica, Calif.

"I installed one of your gas savers on my '74 Continental Mark IV in December. Since that time I have averaged at least 2 1/2 miles per gallon more than before."

Mr. D. A.

Tarzana, Calif.

ORDER FOR EVERY CAR IN YOUR FAMILY! ORDER FORM C. I. ENERGY DEVELOPMENT, INC.

18346 VENTURA BOULEVARD TARZANA, CALIFORNIA 91356 Gentlemen: Send me ____ G-R GAS SAVER VALVES @ $15.95 each. I enclose $_______ in ( ) Cash ( ) Check ( ) M.O. in full payment.

( ) Send my order COD. I enclose 20% deposit. ( Sorry, no COD's outside the Continental USA).

ACCT.

NO.

Exp. Date: Mo. [ ] Yr. [ ] INTERBANK NO. Mastercharge Only [ ][ ][ ][ ] (The number over your Name) SIGNATURE ________________________________ NAME _____________________________________ ADDRESS __________________________________ CITY ________________ STATE_____ ZIP_______

Complaint Ex. D (4 frames only) TO PUT THE GRRRRR IN YOUR CAR. CARS TESTED WITH G.R. VALVES IMPROVE THEIR GAS MILEAGE IN THESE DAYS OF RISING GAS PRICES AND REDUCED AUTOMOTIVE PERFORMANCE, WE INTRODUCE THE G.R. VALVE.

SPEC 2

674 Complaint

MOONSHIP COMMANDER COLONEL GORDON COOPER

AND IT'S A FACT. THE U.S. WASTES A CO SYSTEM.

4A

UP TO 28%

3 A/B

SPEC 2

Complaint 94 F.T.C.

UP TO $150 SAVINGS PER YEAR

AND SAVE UP TO $150 DOLLARS PER YEAR

5B

UP TO 28% MORE MILEAGE

7 cars tested at a leading California university ranged in mileage increases of 18% to 28%

THAT'S RIGHT. GET UP TO 28% MORE

MILEAGE

4B

674 Complaint

O $150 PER YEAR

$150 DOLLARS PER YEAR

[illegible] 67A

Complaint 94 F.T.C.

Ex. E

A...TER HAMILTON CO., LTD.

...C Shoreham Drive West Hollywood, CA 90069 (213) 652-2396

SAM NASSI CO.

G.R. Valve One Minute Commercial TV

VIDEO AUDIO

OPEN CU COOPER COOPER 1. Hi, I'm Gordon Cooper. As you may know I was selected to be one of the first

SLOW ZOOM OUT TO SEE WOMAN 2. astronauts to explore space due to my IN THE BG WORKING ON A CAR. extensive engineering background. At the present time I'm actively heading m own engineering company, where we are

HE HOLDS UP G.R. VALVE, DOESN'T engaged in the design and testing of GESTURE TO IT.... products for industry.

AS HE DOES GESTURE TO VALVE CUT 4. The G.R. VALVE I am holding has been TO XCU VALVE HELD IN HIS HAND. tested and retested by leading independent laboratories

CUT TO CU 2/SHOT, COOPER'S FACE 5. along with my own tests. And it's a AND VALVE.... fact....this G.R. Valve will increase

DISS. TO ROLLING FOOTAGE, CAR 6. your auto mileage DRIVING DOWN PRETTY ROAD, PROFILE

SUPER "INCREASE AUTO MILEAGE UP 7. up to twenty eight per cent.... TO 28%"

CHANGE SUPER TO "IMPROVE 8. improve your car's performance, PERFORMANCE" AND WIDEN SHOT ALLOWING CAR TO PULL AHEAD INTO A 3/4 REAR TO FRONT SHOT.....

CHANGE SUPER TO "CLEAN YOUR ENGINE" 9. clean your engine.....

LET CAR PULL IN FRONT AND ZOOM 10. And reduce smog emissions [illegible] IN ON ECU TAIL PIPE FEATURING LACK OF SMOKE, CHANGE SUPER TO "REDUCE SMOG EMISSIONS & ENGINE WEAR".

CUT BACK TO COOPER, MCU HOLDING 11. In short, the G.R. VALVE will save you VALVE (IN PACKAGE) 23 money...and save precious fuel...while helping to clean the air for [illegible]

LEROY GORDON COOPER, JR. 689

674 Complaint

SLOW ZOOM TO CU COOPER 12. Before I say a system is "go" I check it and recheck it...and the G.R. VALVE is a "go" system.

COOPER STEPS OUT OF SHOT, 13. In the time I've taken to tell you she RACK FOCUS TO MLS SUSAN COOPER JUST CLOSING THE HOOD ON HER about this important technological CAR, SHE TURNS TOWARD CAMERA A SMILES A SELF SATISFIED SMILE breakthrough, XXXXXXXXXXXX AS WE ZOOM MCU.....

COOPER WALKS INTO SHOT, PUT ARM 14. My wife Susan installed AROUND WIFE....PUTS C.R. VALVE PACKAGE ON HOOD OF CAR....XXXX XXXXXXXXXXXX

CUT TO XCU PACKAGE ON HOOD OF CAR 15. the C.R. VALVE on her car. & HOLD

HOLD ON END SHOT, EXCU PACKAGE 16. STATION ANNCR., VO.: TAG FOR LOCAL FOR LIVE SLIDE SUPER AT STATION X STORES.

Complaint Ex. F ASTRONAUT GORDON COOPER ANNOUNCES:

NOW! CONVERT AIR INTO ENERGY— EXPLODE IT LIKE FUEL—and GET up to 7 MORE MILES PER GALLON! Yes, save up to $18 a month, save up to 350 gallons of gas each year, save up to 2 full gallons every 60 minutes you drive — ALL FREE — because air costs you not one single penny! [illegible] National Enquirer. JTD-58

LEROY GORDON COOPER

Complaint

[illegible] the G:R: VALVE [illegible] GO [illegible] [illegible] Leroy [illegible] GORDON COOPER

COMPARE THE G:R: VALVE Similar devices are on the market, but the G:R: Valve operates on the time-proven, durable, trouble-free principle of the spring loaded ball-and-seat. Unlike "opener" or "feed" type valves, the ball and seat has these distinct features:

* Continuous positive seating because the ball will always adjust to its seat.

* Self-cleaning action due to the constant rotation of the ball in its seat.

Look at the diagrams below and BUY THE VERY BEST for your car.

VALVE CLOSED VALVE OPEN AT IDLING AND UP TO 15 MPH OVER 15 MPH

100% UNCONDITIONAL MONEY-BACK GUARANTEE NCI guarantees that with proper installation of the G:R: VALVE, your engine will show instant improvement in fuel economy, performance, or both. If, for any reason, you are not fully satisfied with the performance of the device after installation, return the G:R: VALVE to the dealer from whom it was purchased within 30 days and the purchase price will be cheerfully refunded.

N C Industries Dan Norman, President Pursuant to Executive Order 01, the G:R: VALVE may be legally installed on 1974 and older vehicles in California with the exception of the provisions of Vehicle Code 27156 with respect to VW, diesel, fuel injection or supercharged engine vehicle.

TECHNICAL DESCRIPTION The G:R: VALVE is a precision engineered air induction valve which fits into the hose between the PCV valve and the carburetor. It is automatically controlled by the amount of vacuum produced by the engine under varying speeds and loads. The ideal mixture of air-to-fuel in an automobile engine is approximately 15:1. However, the most normal carburetors are unable to provide this ideal mixture at all times. Normal carburetors are set when in the idle position with the correct mixture. This is efficient only until about 2000 rpm. Under acceleration, heavy loads and grades, this efficiency is lost because there is not enough air to properly mix with the added fuel being pumped into the combustion chamber. The G:R: VALVE is precision calibrated to help remedy this situation by shutting down when the mixture is correct and opening up when the mixture is starved. Its valve action is controlled by the constantly changing vacuum in the manifold as the engine makes it demands for air. An added feature of the G:R: VALVE is the re-ionizing of dead gases as they return to the carburetor from the crankcase. As the PCV valve releases these gases, they are mixed with oxygen in the G:R: VALVE, thus making these gases a combustible fuel. Since the G:R: VALVE works in perfect harmony with the carburetor and smog device, THERE ARE ABSOLUTELY NO TUNING ADJUSTMENTS TO MAKE. Since it is always working to provide the correct (not lean) air-to-fuel mixture, IT CANNOT DAMAGE YOUR ENGINE IN ANY WAY. On the contrary, it will give it cleaner, longer-lasting life. That is why the G:R: VALVE is covered with full product liability insurance.

(Typical Responses on File From Satisfied Customers)

| | Miles Per Gallon | | Percent Increase | | | Without G:R:V | With G:R:V | | | 1972 V.W. BUS | 18 | to 23 | 27.78% | | 1974 MARK IV CONTINENTAL | 10 | to 12.25 | 22.5% | | 1973 FORD | 10.1 | to 13.0 | 28.7% | | 1966 G.M.C. SCHOOL BUS [illegible] | 4.0 | to 5.6 | 40.0% | | 1972 DODGE | 15.3 | to 13.5 | 17.1% | | 1966 CHEVROLET PICKUP WITH CAMPER | 11 | to 15.2 | 38.2% |

Complaint

the facts are...

1. THE G.R. VALVE SAVES MONEY by giving your car, boat, truck, or motor home up to 8 more miles per gallon. That could mean a savings of up to 30¢ per gallon of gasoline. In a year this could amount to several hundred dollars, depending on how much you drive.

2. THE G.R. VALVE IMPROVES PERFORMANCE by allowing additional air to reach your engine only when it is needed. Most normal carburetors cannot meet the entire range of engine demands for air, so they are set for idle and speeds under 35 mph. This means your engine is air-starved when accelerating, climbing hills and pulling loads, but your car can reach its full horsepower every time you "step-on-it."

3. THE G.R. VALVE FIGHTS POLLUTION by insuring a more complete combustion of gasoline elements. It also re-energizes particles from the smog device so they can be burned. We call this process "Gas Re-energizing" (G.R.). Smog tests* have shown you can expect up to 90% decrease in air pollutants with this device on your present car.

4. THE G.R. VALVE INCREASES ENGINE LIFE by reducing the amount of carbon build up on valves and pistons. When gasoline burns more efficiently, it leaves less harmful by-products to clog and wear out your engine.

*Tests conducted at Loma Linda University at engine idle utilizing Marquette Exhaust Gas Analyzer: 42-151 Infra Red tube, used in testing exhaust emissions.

As demonstrated on TV SUSAN COOPER did it in 30 seconds on her 1974 Vega!

YOU TOO can install the G.R. Valve in minutes without special tools or mechanical ability. Just follow the simple 1-2-3 instructions included with each valve.

A TYPICAL LAB TEST RESPONSE:

"We have tested the G.R. Valve in our university auto lab on a number of vehicles differing in size and make. The results have shown a significant overall increase in gas mileage and reduced smog emissions. I am convinced that within normal driving habits, the G.R. Valve would soon pay for itself in fuel savings, better performance and cleaner engines." Jake Walcher Professor of Industrial Education Loma Linda University *Detailed test data on file at NCI.

The unconditional money back guarantee offered by G.R. Valve distributors is positive proof of their confidence in these claims.

Complaint Ex. H

REVOLUTIONARY • SPACE AGE • GAS SAVER OR HOW TO ATTRACT THOUSANDS OF NEW, SATISFIED CUSTOMERS TO YOUR STORE: INCREASE YOUR SALES AND PROFIT! LET GEMINI ASTRONAUT GORDON COOPER GIVE YOU THE FACTS...

"IT'S A FACT! The G•R Valve gives you up to 8 more miles per gallon" GAS MILEAGE INCREASE UP TO 28% GEMINI ASTRONAUT GORDON COOPER

"IT'S A FACT!—INCREASES MILEAGE UP TO 8 MILES PER GALLON."

[illegible]

How can this $15.99 valve save hundreds of dollars a year on each car or truck?

The G•R Valve is a precision engineered regulator that is installed into the hose between the PCV Valve and the carburetor. It operates automatically by the amount of vacuum produced by the engine under varying speeds and loads.

The G•R Valve contains a calibrated spring and rotating self-cleaning ball that seats and remains closed at idling and up to 35 mph. It actually shuts off when air/fuel mixture is correct and opens when this mixture is air starved. The unit opens only sufficiently to give the proper fuel/air ratio.

The G•R Valve also re-energizes the unburned fuel from the crankcase through the PCV Valve to the carburetor. The G•R Valve mixes air with the unburned fuel creating a combustible mixture that flows into the carburetor. The G•R Valve is always operating to provide the proper air/fuel mixture based on RPM and engine load. This metering action saves gas and adds mileage.

The G•R Valve has been tested and retested by leading independent laboratories along with my own tests.

It's a fact... the G•R Valve will increase your auto mileage up to 28 per cent — improve your car's performance — clean your engine and reduce smog emissions.

In short, the G•R Valve will save money... and save precious fuel while helping to clean the air for everyone. Be sure I say a system is go I check it and recheck it... and the G•R Valve is a go system.

— Gordon Cooper

ASTRONAUT GORDON COOPER Data compiled by independent research on the G•R Valve provide the following proof of increased gas miles per gallon:

LOMA LINDA UNIVERSITY DEPARTMENT OF INDUSTRIAL EDUCATION

[illegible table]

Ford 1971 351 V8 City 0.9 0.7 160 120 14.1 to 18.1 14.18 Ford 1973 Freeway 3.0 2.8 100 80 10.1 to 13.0 28.71 Buick 1964 300 V8 City 7.8 5.3 280 200 13.0 to 16.5 18.23 Pontiac 1967 City 2.8 2.2 260 220 12.1 to 14.2 17.36

Marquette Exhaust Gas Analyser model 42 151 Infra Red Tube used in testing exhaust emissions Note PCV Valve not changed as recommended [illegible] We have tested the G•R Valve on a number of vehicles differing in size and make. The results on the whole are very favorable in both better mileage and also cleaner burning. Our tests indicate that within the normal driving habit the G•R Valve is a safe device and would soon pay for itself in fuel savings, including other benefits, such as cleaner engines, noticeable increase in power, etc.

FITS ANY CAR OR TRUCK [illegible] Takes 3 minutes to install.

Persons in charge of tests [illegible signature]

SOLD WITH UNCONDITIONAL MONEY BACK GUARANTEE It's worth checking out!

To order samples for evaluation, or more information, write to: GEM INDUSTRIES, Dept. CS, 13438 Wyandotte St., No. Hollywood, CA 91605 (213) 765-1498

CHAIN STORE AGE, General Merchandise Edition, September 1977

Decision and Order 94 F.T.C.

DECISION AND ORDER

The Federal 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 violated as alleged in such complaint, and waivers and other provisions as required by the Commission's 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 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, 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. Respondent Gordon Cooper is an individual whose address is 5011 Woodley Ave., Encino, 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

PART I

It is ordered, That respondent Gordon Cooper, an individual, his agents, representatives, employees, successors and assigns, either jointly or individually, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, offering for sale, sale or distribution of the automobile retrofit device, variously known as the G.R. Valve, the Turbo-Dyne Energy Chamber, and by other names, or of any other automobile retrofit device, as "automobile retrofit device" is defined in §301 of the

Decision and Order

Energy Policy and Conservation Act of 1975, 15 U.S.C. 2011, having substantially similar properties, in or affecting commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that the automobile retrofit device variously known as the G.R. Valve, the Turbo-Dyne Energy Chamber, and by other names, or any other automobile retrofit device having substantially similar properties, will or may result in fuel economy improvement when installed in an automobile, truck, recreational vehicle, or other motor vehicle.

PART II

*It is further ordered,* That respondent, his agents, representatives, employees, successors and assigns, either jointly or individually, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, offering for sale, sale or distribution of any automobile retrofit device as "automobile retrofit device" is defined in §301 of the Energy Policy and Conservation Act of 1975, 15 U.S.C. 2011, in or affecting commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that such device will or may result in fuel economy improvement when installed in an automobile, truck, recreational vehicle, or other motor vehicle unless (1) such representation is true, and (2) at the time of making such representation, respondent possesses and relies upon written results of dynamometer testing of such device according to the then current urban and highway driving test cycles established by an agency or department of the United States government and these results substantiate such representation, and (3) where the representation of the fuel economy improvement is expressed in miles per gallon or percentage, all advertising and other sales promotional materials which contain the representation expressed in such a way must also contain, in a way that clearly and conspicuously discloses it, the following disclaimer: "REMINDER: Your actual fuel saving may be less. It depends on the kind of driving you do, how you drive and the condition of your car."

PART III

*It is further ordered,* That respondent, his agents, representatives, employees, successors and assigns, either jointly or individually, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, offering for sale, sale or distribution of any product or service in or affecting commerce as

Decision and Order 94 F.T.C.

"commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

a. representing, directly or by implication, that an endorser of such product or service has expertise in a field of knowledge unless the endorser has the education, training, and knowledge necessary to be qualified as an expert in that field; b. using, publishing, or referring to any testimonial or endorsement from any person or organization for such product or service unless, within the twelve (12) months immediately preceding any such use, publication or reference, respondent has obtained from that person or organization an express written and dated authorization for such use, publication, or reference; c. failing to disclose a material connection, where one exists, between an endorser of such product or service and respondent. A "material" connection shall mean, for purposes of this order, any direct or indirect economic interest in the sale of the product or service which is the subject of this endorsement other than (1) a fixed sum payment for the endorsement, all of which is paid before any advertisement containing the endorsement is disseminated, or (2) payment for the endorsement which is directly related to the extent of the dissemination of advertising containing it; d. representing, directly or by implication, any performance characteristic of such product or service unless (1) at the time of making the representation, respondent possessed and relied upon competent and reliable scientific tests substantiating the representation, and (2) respondent possesses a written test report which describes both test procedures and test results. A competent and reliable "scientific test" is one in which one or more persons, qualified by professional training, education and experience, formulate and conduct a test and evaluate its results in an objective manner using testing procedures which are generally accepted in the profession to attain valid and reliable results. The test may be conducted or approved by (a) a reputable and reliable organization which conducts such tests as one of its principal functions, (b) an agency or department of the government of the United States, or (c) persons employed or retained by respondent if they are qualified (as defined above in this paragraph) and conduct and evaluate the test in an objective manner;

e. misrepresenting in any manner the purpose, content, or conclusion of any test or survey pertaining to such product or service;

f. misrepresenting in any manner either consumer preference for

674 Decision and Order

such product or service or the results obtained by consumer usage of such product or service;

g. misrepresenting in any manner the performance, efficacy, capacity, or usefulness of such product or service.

PART IV

It is further ordered, That respondent, his agents, representatives, employees, successors and assigns, either jointly or individually, directly or through any corporation, subsidiary, division or other device in connection with the advertising, offering for sale, distribution or sale of any product or service in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Providing an endorsement which relates directly or by implication to the performance or efficacy of such product or service, or which refers to any characteristic, property, use, or result of use of such product or service, unless:

a. when respondent’s endorsement pertains to subject matter falling within respondent’s area of expertise, at the time of the first dissemination of such endorsement, respondent possesses and relies upon competent and reliable scientific evidence to substantiate any representation made directly or by implication in the endorsement, or b. in all other cases, at the time of the first dissemination of such endorsement, respondent has made a reasonable inquiry into the truthfulness of his endorsement, and possesses and relies upon information resulting from such inquiry which substantiates any representation made directly or by implication in the endorsement. “Reasonable inquiry” shall be defined as follows:

(1) obtaining information from at least two competent and reliable sources independent of the advertiser and any other party with an economic interest in the sale of the product or service which is the subject of the endorsement; or (2) obtaining information from the advertiser or from other parties with an economic interest in the product or service which is the subject of the endorsement and having such information independently evaluated by at least two competent and reliable sources.

2. Failing to disclose a material connection, where one exists, between an endorser of such product or service and its advertiser(s). A “material” connection shall mean, for purposes of this order, any direct or indirect economic interest in the sale of the product or

Decision and Order 94 F.T.C.

service which is the subject of this endorsement other than (1) a fixed sum payment for the endorsement all of which is paid before any advertisement containing the endorsement is disseminated, or (2) payment for the endorsement which is directly related to the extent of the dissemination of advertising containing it.

PART V

It is further ordered, That respondent, his agents, representatives, employees, successors and assigns, either jointly or individually, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, offering for sale, sale or distribution of any product or service in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from failing to maintain the following accurate records which may be inspected by Commission staff members upon fifteen (15) days' notice: copies of and dissemination schedules for all advertisements, sales promotional materials, and post-purchase materials; documents authorizing use, publication, or reference to testimonials or endorsements; documents which substantiate or which contradict any claim which is a part of the advertising, sales promotional material, or post-purchase materials disseminated by respondent directly or through any business entity. Such records shall be retained by respondent for a period of three (3) years from the last date any such advertising, sales promotional, or post-purchase materials were disseminated.

PART VI

It is further ordered, That respondent promptly notify the Commission of the discontinuance of his present business or employment. In addition, for a period of ten years from the effective date of this order, the respondent shall promptly notify the Commission of each affiliation with a new business or employment where he is responsible, directly or, by his delegation, through any employee or agent, for the dissemination or approval of any advertising claim relating to any product or service. Each such notice shall include the respondent's new business address and a statement of the nature of the business or employment in which the respondent is newly engaged as well as a description of respondent's duties and responsibilities in connection with the business or employment. The terms of this paragraph shall not affect any other obligation arising under this order.

LEROY GORDON COOPER, JR. [illegible] 674 Decision and Order PART VII It is further ordered, That the respondent shall within sixty (60) days after service upon him of this order file with the Commission a report, in writing, setting forth in detail the manner and form in which he has complied with this order.

Interlocutory Order 94 F.T.C.

IN THE MATTER OF

HASTINGS MANUFACTURING COMPANY

Docket 4437 [illegible] Oct. 12, 1979

ORDER DENYING F [illegible] UCTION OF

[illegible] June 1, 1982 [illegible]

On September 6 [illegible] ings Manufactur[illegible] to rebrief certain i[illegible] his proceeding. On [illegible] r an order directir[illegible] nents purportedly bear[illegible] n. The Commission's P[illegible] discovery in conne[illegible] whether to reopen [illegible] F.R. 40635, 40637 (J[illegible] cluded that the disco[illegible] elay, without materially assis[illegible] of whether to reopen this proceeding.

Respondent's arguments re[illegible] ights under the Freedom of Information Act [illegible] are not properly presented to the Commission [illegible] t motion. However, the Commission notes that it[illegible] will be ruling shortly on respondent's separate [illegible] ation Act appeal in accordance with Rule 4 [illegible] ommission's Rules of Practice (16 CFR 4.11(a)([illegible] It is ordered That res[illegible] lanufacturing Company's motion for discovery b[illegible]

¹ If the Commission decides to [illegible] will conduct any necessary evidentiary hearing in accordance with Rule 3.72(b)(2) ot .. [illegible] 0635, 40637 (July 12, 1979). ² Compulsory discovery was likewise [illegible] e predecessor rule, 16 CFR 3.72(b)(2)(1979), prior to a Commission decision to conduct a new e..