Standard Oil Company of California

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

IN THE MATTER OF STANDARD OIL COMPANY OF CALIFORNIA, ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Doket 8827. Decisi, Nov. 1974-Modifid Orr, June 1980 This order modifies a Nov. 26 1974 order 84 F. C. 1401 40 FR 134, against a San Francisco, Calif. distributor of gasoline and other petroleum products and its New Yark City advertising agency, requiring compliance with a court of appeals decision that the " blanket" order provision as to all advertising of "any" product was wholly unwarrante based on thr misleading advertiaements. The order is modified to cover only advertising of its additive, F -310. MODIFIED ORDER TO CEASE AND DESIST Respondents having filed in the United States Court of Appeals for the Ninth Circuit petitions for review of the Commission s cease and desist order issued herein on November 26, 1974; and the Court having rendered its decision. modifying the Commission s order and, as so modified, affirming and enforcing the order; and the time for filing a petition for certiorari having expired and no petition for certiorari having been filed:

Now, therefore, it is hereby ordered That the aforesaid order to cease and desist be, and hereby is, modified in accordance with the decision and judgment of the Court of Appeals to read as follows: It is ordered That respondent Standard Oil Company of California, a corporation, its successors and assigns, its officers, representatives agents, employees, directly or through any corporate or other device, in connection with the advertising of the additive F -:IG, forthwith cease and desist from:

Representing directly or hy implication that such product: (a) Will produce or result in motor vehicle exhaust which is pollution ree or generally pollution free; or (b) Will eliminate or reduce air pollution caused by motor vehicles; or (c) Wil eliminate or reduce emissions from all or any number or oup of motor vehicles in which it is used;

that:

(d) Such gasoline additive product has any other quality, performce abilty or other characteristic; or STANDARD OIL CO. OF CALIFORNIA, ET AL.

866 Modifying Order (e) Tests, demonstrations, research or experiments have been conducted which prove or substantiate any of said representations; Unless and only to the extent that each and every such representation is true and has been fully and completely substantiated by competent scientific tests. The results of said tests, the original data collected in the course thereof and a detailed description of how said tests were performed shall be kept available in written form for at least three years following the final use of the representation. 2. Representing directly or by implication that: (a) Automotive exhaust has certain observable or measurable characteristics in all or any number or group of motor vehicles when such is not the fact; or (b) Any machines, measuring devices or technical instruments have particular characteristics or capacities when such is not the fact; or (c) Such product has any effectiveness in reducing air pollution or any air pollutant or air pollutants without at the same time, in the same advertisement or other form of communication, conspicuously disclosing that not an of the harmful pollutants in automotive exhaust are affected by said product; or (d) Such product win reduce any emissions of pollutants from automobile exhaust by any percentage or numerical quantity unless in connection therewith there is a clear, accurate and conspicuous disclosure of the type of vehicle which can expect to achieve reductions of such magnitude and the approximate percentage of such vehicles in the general car population.

II.

It is ordered That respondent Standard Oil Company of California, a corporation, its successors and assigns, its officers, representatives agents, employees, directly or through any corporate or other device, in connection with the advertising of the additive F --10, forthwith cease and desist directly or indirectly 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 ModifyJrigOrder or without an accompany;ng verbal text which 95 F. T. tion creates a misleading impression in the minds of viewers as to the directly or by implicatrue state of material facts which are the subject of said pictures or other visual means of communication.

3. Misrepresenting in any tic, property, quality, or the mannerresult ofor byuseanyof meanssuch gasolineany characteris-additive product.

II. It is orred That respondent Batten Inc., a corporation, its successors and assigns, Barton, Durstine & tives, agents, , its employees, directly or through anyofficers,corporaterepresenta-or other device, in connection with the advertising, offering for sale distribution of the additive F --IO , forthwith cease and desist, salefrom:or Representing directly or by implication that such product: (a) Wil produce or result in motor vehicle exhaust which is free or generally pollution free; or (b) Wil eliminate or reduce air pollution caused by pollution (c) Wil eliminate or reduce emissions from motor vehicles; or group of motor vehicles in which it is used; a11 or any number Or or that:

(d) Such gasoline additive product has any other quality, performance ability or other characteristic; or (e) Tests, conducted whichdemonstrations,prove or substantiateresearch or experiments have been any of said representations;

Unless arid only to the extent that respondent has a reasonable basis for such representation based its client. The results. of said testsupon andcompetentthe data scientific tests thereof relied upon by res"pondentsha11 be by;t or collected in the course form for at least three years following the kept available in written tion. filial Use of the representa- 2. Representing directly or by implicatioll that:

(a) Automotive exhaust has certain haracteristics in a11 or any number or observable or measurable och is not the fact; Or group of motor vehicle when (b) Any machines, measuring devices or technical instruments havelrticular characteristics Or capacities when such is (c) SuChprodlJct hasariy effectiveriessin reducing air notthe fact; Or Pollution or .l.IU'lLll'l\U Uli. VV. v!' \.1\I.llu.tllll\ , l!T AL. 866 Modifying Order any air pollutant or air pollutants without at the same time, in the same advertisement or other form of communication, conspicuously disclosing that not all of the harmful pollutants in automotive exhaust are affected hy said product; or (d) Such product wil reduce any emissions of pollutants from automobile exhaust by any percentage or numerical quantity unless in connection therewith there is a clear, accurate and conspicuous disclosure of the type of vehicle which can expect to achieve reductions of such magnitude and the approximate percentage of such vehicles in the general car population.

IV.

It is ordered That respondent Batten, Barton, Durstine & Osborn Inc., a corporation, its successors and assigns, its officers, representatives, agents, employees, directly or through any corporate or other device, in connection with the advertising of the additive f' -3lO forthwith cease and desist directly or indirectly 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 of the truth of any representation which does not accurately demonstrate, prove, or confirm such fact, product characteristic, or representation unless the respondent can establish it neither knew, nor had reason to know, nor upon reasonable inquiry could have known that such was the case.

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 unless the respondent can establish it neither knew nor had reason to know nor upon reasonable inquiry could have known the true facts.

3. Misrepresenting in any manner or by any means any characteristic, property, quality, or the result of the use of such gasoline additive product unless the respondent can establish it neither knew nor had reason to know nor upon reasonahle inquiry could have known that such representations arc false.

It is further o-rdered That respondent corporations shall forthwith distribute a copy of this order to each of their operating divisions. It is further ordered That respondents herein shall notify the Modifying Order 95 F.

Commission at least thirty (30) days prior to any proposed change in any of the corporate respondents 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 affcct compliance obligations arising out of the order. It is further ordered That respondents shall, within sixty (60) days after service of thc order upon them, file with the Commission a written report, signed by the respondents, settng forth in detail the manner and form of their compliance with the order to cease and desist.

Commissioner Pitofsky did not participate.

, "V'''H_ ''.n.I ''U''''' .C'' , "'.I .L .0.... 871 Complaint