Great North American Industries, Inc

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

IN THE MATTER OF GREAT NORTH AMERICAN INDUSTRIES, INC., ET AL. CONSENT ORDER , ETC. , IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-3077. Complaint, Oct. 19B/-Decision, Oct. , 1981 This consent order requires, among other things, two Gainesvile, Texas corporations and a corporate officer to cease representing that substantial fuel economy can be achieved by the use of Teflon oil additives such as Tephguard." Further, respondents are prohibited from making representations that the use of any automobile retrofit device, fuel or engine oil additive will increase fuel economy, unless substantiated by competent scientific evidence, and accompanied by the disclosure of any limitations on the performance or effcacy of such products. Additionally, the Order bars claims of government approval without written and dated authorization; prohibits misrepresentations concerning the conclusions of product tests or surveys; and requires that consumer endorsements of any product or service reflect typical consumer experiences.

Appearances For the Commission: Laurence M. Kahn and William Haynes, For the respondent: Jack Paller, Katz, Paller Land Atlanta Ga. Marshall Dooley, Dallas, Tex. , and Donald Higgenbotham Austin, Tex.

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 Great North American Industries, Inc., a corporation, Products on the Move, Inc. a corporation, and Patrick O. McCrary, individually and as an officer of Great North American Industries, Inc., and Products on the Move Inc. , hereinafter sometimes referred to as "respondents " have 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. Respondents Great North American Industries, Inc., and Products on the Move, Inc. , are corporations organized existing, and doing business under and by virtue of the laws of the Complaint 98 F.

State of Texas with their office and principal place of business located at 104 West Main St., Gainesville, Texas. Respondent Patrick O. McCrary is President of the corporate respondents Great North American Industries, Inc., and Products on the Move, Inc. He formulates, directs, and controls the acts and practices of all said corporate respondents, including the acts and practices hereinafter set forth. His address is the same as that of said corporations.

The aforementioned respondents cooperate and act together in carrying out the acts and practices hereinafter set forth. PAR. 2. Respondents are now and for sometime last past have been engaged in the advertising, offering for sale, sale, and distribution of a product known as Tephguard (Tefguard), hereinafter sometimes referred to as !!product " which product is advertised as a means of improving fuel economy in automobiles. Said product is an automobile engine oil additive. Respondents, in connection with the marketing of said product, have disseminated, published and distributed and now disseminate, publish and distribute advertisements and promotional materials for the purpose of promoting the sale of said product.

PAR. 3. In the course and conduct of their said business, the respondents have disseminated and caused the dissemination of certain advertisements for said product through the United States mails 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 have 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. 4. Among the advertisements and other sales promotional materials disseminated by respondents are the materials identified as Exhibits A and B which are attached hereto. PAR. 5. Through the use of the advertisements referred to in Paragraph Four, and other advertisements and sales promotional materials, respondents represented and now represent, directly or by implication, that a. Tephguard when used in a typical automobile engine will substantially improve fuel economy;

b. under normal conditions, a typical driver can ordinarily obtain "'U'J. J.J.J. r:un.aJ.uv.MJ.' J.J.'JJUUJ.J.U""U, u'v., c..l fil.. Ot:1 817 Complaint a fuel economy improvement which will approximate or equal twenty-six percent when Tephguard is used in his/her automobile; c. competent scientific tests have proven the fuel economy claims made for Tephguard;

d. results of consumer usage, as evidenced by consumer endorsements, prove that Tephguard substantially improves fuel economy; e. the Environmental Protection Agency (E.P. ) has approved the use of Tephguard in automobiles to improve fuel economy; f. the consumer endorsements which appear in advertisements and sales promotional materials for Tephguard reflect the typical or ordinary experience of members of the public who have used Tephguard.

PAR. 6. In truth and in fact, contrary to respondent' s representations set forth in Paragraph Five:

a. Tephguard when used in a typical automobile will not substantially improve fuel economy;

b. under normal driving conditions, a typical driver cannot ordinarily obtain a fuel economy improvement which will approximate or equal twenty-six percent when Tephguard is used in his/her automobile;

c. no competent scientific tests have proven the fuel economy claims for Tephguard;

d. results of consumer usage, as evidenced by consumer endorsements, do not prove that Tephguard substantially improves fuel economy;

e. the Environmental Protection Agency (E.P.A.) has not approved the use of Tephguard in automobiles to improve fuel economy;

f. the consumer endorsements which appear in advertisements and sales promotional materials for Tephguard do not reflect the typical or ordinary experience of members of the public who have used Tephguard.

Therefore, said advertisements and sales promotional materials are deceptive or unfair.

PAR. 7. At the time respondents made the representations alleged in Paragraph Five of the complaint, they did not possess and rely upon a reasonable basis for such representations. Therefore said advertisements and sales promotional materials are deceptive or unfair.

PAR. 8. The advertisements referred to in Paragraph Four and other advertisements and sales promotional materials represent Complaint 98 F.

directly or by implication, that respondents had a reasonable basis for making, at the time they were made, the representations alleged in Paragraph Five. In truth and in fact, respondents had no reasonable basis for such representations. Therefore, said advertisements and sales promotional materials are deceptive or unfair. PAR. 9. In the course and conduct of their business, and at all times mentioned herein, respondents have been, and now are, in substantial competition in or affecting commerce with corporations firms and individuals engaged in the sale of engine oil additives gasoline additives, and automobile retrofit devices. PAR. 10. The use by respondents of the aforesaid unfair or deceptive statements, representations, acts and practices, directly or by implication, has had, and now has, the capacity and tendency to mislead members of the public into the erroneous and mistaken belief that said statements and representations were and are true and complete, and into the purchase of substantial quantities of respondents' product by reason of said erroneous and mistaken belief.

PAR. 11. The acts and practices of respondents, 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 respondents' 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. The acts and practices of respondents, as herein alleged, are continuing and will continue in the absence of the relief herein requested. Chairman Miller did not participate.

:: .!::.:::.:;:::::.?(,?,/.;:;.. .,. .. .. yj,,.,,.,,. . (( :;. ,, , ( , / . GREAT NORTH AMERICAN INDUSTRIES, INC., ET AL. 821 817 Complaint T0;' L";:

:r::. OF 0\Cf'NT 'Iv ffi (o'/t;,\ . rJfjft." D-" O -1 ' .y Dv,c 1E.

'".J-, '1V7- , 'J, 3'q'.

V"", l;!'iii;; tl.

---""MO... ""M"_'_"' "oc'.""U'l,.mll"go "duc," 'ml..i aw., 'lu.clle""'''",.''.n 'll""'''''."in'.,n.,p'''' .low.rop.""'Qlom;:''''e'.

: ; , ..: . _ ,:.:, ::, :, .;;: _.. .., .....;::..,:::: :: . :;:;:,; :::: :;:, ::::; : .:,\;:,; :;:(:.;:::,::::.:,:.::::,::::,...,,::,;;:.,.....:;., ::;;::;,., , \ .. ., ..//,,,. Complaint 98 F.

D.i,elopm.nt C;:n :j,5 olll; !o an com!:',,:ion encin:, ;:Ius 5 Ihrol:"J 1,1crab1S-'c.fuel ace I;.

iff !;r! j;1!i /;,A' , ::J Wart'- tllil ;i:' "1.5 '" 0.,. 0;" f1 "':J . v !:i f::

;!!E!'jf;' :W::Sf. .

'"0"'- ;:r: C G, ",ile Jse 93%,/2G, .Wh"1 r.nhgua'dl NOT . T"D gum(jlsNOTa"do;1 "dolllv gUa'dl$ NOT and od 1,.alm :,,1 .",.0 . OJ' "ph guard I NOT" " :'ToIIV . e . TCpl1gu,adl. NOTa ,v",r,ellcol! """o """ "O"' . . :::..,..::... .,. ......,;:::::...,:;\ :,,,,,,,.,,:,.,.,,. _, : ,,:,,,:::,,.. ::.,: ::,;:,:;, :.. ....,,,.,;::::,::::.., ?:::;, .....,.,::,,::,::::. :::,: : ., ::.,. ;:;:,,,,,,. ,,.........:: .;:;...,;.. : .,:::::, ,,,.,,,....,..., ....;:.,..,,,,,.,...,.,.,..,. ..,,.,.,, ,..,..........,.,.,,,.,.,: ;... ,,,.:.., ,,,.:.:,,.,....,.;:,,,,.,:,,..,,,.., ;:.,,,,,,,,.,,,,,,,..,.,.,....,,,,,... . ; ,j .U' ' U''' '-..n.l.u.. , 1.,.1 l1j 817 Complaint YO. U!1/1 ''-'J . FuelEconomy . E.pla".tI"n"tR.p"rll ""'01...,.....,,, j.n."'. '"'''"'''''''0' 00'."""""""""""'''''''''''''''00 O''''O' '"' ,e,,,,,'" ''',,,",co ),o,.",,",,oa,",-,,,,,,,,'-'"..OU"""' .,,...".,..," ,".,.,,,,, "'"'' .n",.. 0''''11100"".0....,,,."0. ''''.''0'0''''0, .0,"".u5 ," ,,,... ,,,""" '0,""'0,"'0"0 .n., "'""'0"'00"'0." ",". 'OU '"0 ., '"toolo"'''"O ' 0' J' .'c:, .""m""n ;Io""'0 0 ' "0",."..,'"".00'0",. 1,...,. '0''''"''"'''"'"'0"'0'''''"'''' ""'"""0"",,,,,,,",""' 0', '.'"""""0""""' 0"'0,"'"0'0"" "00 m,,,. 00 '". ", .". "'11 -- _"""_0"00""""0 ''''''''''''''-00' ''0-'' '-"'''.'''0"'. ''''.'0'''''0 """"'"""""'0"'0"'''''''''''0''"..",o"""o,o"o..".., ,0. "....O"".ooc .". co". - -,'''''O-'''''''' ''""''o """'0.0,,,,,,,., ,,,",,......0'"'''''' O ... OC. C" ,- "'00' . .0' ''''0"''0." ,"C'"'.""""""'O""''''' O'''.''' :::;:'r. '""'.'""'000",.0 00" '''.''00''''0_"" .. ....0.' 0'" 0"'00' '0' '''o"e. ."" ""'", """, ,o 'OO"C",' ",e,.0''00.',O",.,''0'-'',e, o",".. ., '0"0""", 'or.- ", 'e'"o,,,,",,"" 00\ '.""0"""""

" ,e,.o,., " o' 7 '-""'-0-'"''''" ,"""..O".. ..J '". eo,"". O,,, ,o.,,, '".' '- T'...,o""'""'-"""O" oo'" .

c.' ',WO"" ' "0'0"-"""'"' ''0''' -'''-'''0''''''' d l,orks, . ' o'''"O'-' iep'ngUo.f ;"G.'",'OC'O'""''''0,o","'coi '..- """,,0""0""-, 0".0 "..0. "e.,' "O', ,,, ". ,o.c,- ,:"o. uO"""" '0" "0..,,". .,......,... ..!:; ::::,:.:: .,,;::;:: ::.:::,: :... ;::::.: :.:: ,:::::..,...::;::, ,.., :,.!;:,,.....:. ::::; : :::: ::,::, :;.:, ::. ::,.. ,, :::;;;. , ;!::;;, y,.:,..,;:::,.: , ,,.,;.,. , . , 824 FEDERAL TRADE COMMISSION m;CISIONS 98 F.T. Complaint . T 5I1m nI815 ",.,11.

o..,,,.",, a",,,,,.. ' 'n' :::i. o,' '''''mo"''',,' 00''' " "".u O"O" ",m ,., ,,'mo"'" '0 10.""0..""""

.Ud .

G", ,,o...

0.".. t!: ;1;\;t ;0"

... 0,"' .

:;;tii::: ;:i ,.""",,,m," .O'"""'d' :' ::. 0 ..o",-,,.O""'''''- "nJ.-...." ;i3 '"o""OQ'" '"0 G.", "",mo. '"""'O'DO"''''.''''''''''.''" '"",' -0' ...n ,.. ,'m.._ . l." U, ",0," r'""QU"d ",. ,. do '0' yOu'M "cot U"""", ,,,no',I,,n on '" ,"" n" 1'' ." W" ;.' n "'0." (., .. _ ,. ... . . Un!!ltl 1'''1110 ",.n!!nJ.\jni., U''',='';I",U''U, u,v'l 1;* no"", M17 (J.mpl.!"1 M T NCIN TlM'IMI:N" pion tli'' ;?#..J'. "" "l,., !J. I I l!EliAllf)' i. I lkli, ',i'RliiitlIIJ JI\II I"' r'8!Hli8H HIIIR III, IJill' I 1811.k IIAI'Hll'litl tter lIiH 8f.lw OO \ fI 8H' 18 U Ii .. ffdi kill!! fflli;il1 I ilidllHaiffl\lI8AI ,thl.ah'\.r \1iF I bui811 rHIAIIIH;iIlIli;

I bil ,HI. 8n 1IIIHiltiIIII Illl'O' 1I ,H\will 11fi illl aii1= tJ " .. 53 QLa .....: ,, , ......, ,,, ,, , p, , / : , .,,,.. .... . ,: ( \.:. ::_.:: ,,).),:,,,:::, ! , Complaint 98 F. c,;C)f"', "."l.r:rrmvQJm\ J)) i'l iJ r\lI I i( J , I ,I I ! L 2!l ) HERE IS WHAT OTHERS HAVE SAID:

- 0....1 (n im" Tic.Ch;cf nor. 10 I.. Jaw ' a'" '"''',",00/1I. 191'"p' 111. llj u.' I. l ,,,,,J' Jla ,1.,u.." o.' l,,.!io ?:;;r.:, :.,Jo ou' l"Pp N' .", /1.., h'Q , 11up ",'AI, 6GJ ",,1,,- "n r.o, I,id.;n ""/'''i' o" /04. ..d. 1" ,1,., I II.Jn, (0. ON OO""f' I;". ".o.J, oflJ. .1 '/'""1 "F";,,,,i- 1 f' ,t ,I., if, 0.. I,,,Q" you nb. li."(t 'i".., .,. 1'- ,- )1., i, '" c.."'o",I, I)'.v...t.,,;1 C,,"r r:.. 1/"" P';o, bl.i""..,,,ofH. 6'-I1'ou oo"n'"''''' pp"'H;.n"..1 T.pl'.".J"/i,, "'J,."ld'''o./ '""b. 'i". ,-I" q."",oJoiL :"".....1116. 61"1/" ",,,(,..fo. 1fl" ,ddit T' (iJ" L: "- HOW TEPHGUARD war!' Uqu ;d c..ri,..dinri.mo , ';t d",,!cn'"J'0l;quid c"""..'" ,h",h.y.nm unl PU";" ,II m.,,1 ,u.r.c.. 0 . .od r"""I" hJo th...,dh",.o,h...po"d'"pur h. I ly""" "".c' "'0' d I . ".."" o ,,. .. ,,,..., .,. ;,,,. . ;;:: ,,..,,.::,;;,.,:.,,,/ ,. , :; _._._.......,. ,../;,,,........,.. . \.:::_..,j....,..:.,;(, ... . ._. .,.._j\,,,_.j:._.__._\,;.:;: _. ; ,..: . .: GREAT NORTH AMERICAN INDUSTRIES, INC., ET AL. 827 817 Complaint : ii: i':l:i, 1:- . i: !L i;\, . /\ J. jlP: irG) ,;:- 11;'J. f'j Ran Dti...

;/Ol'.' II' I.,f"' 1....,,,,,,.Jlh.d.n,,,",,,,,,j,",,r.. "i' '''I '''4"J rtlG d,", .i" i,), d 181 c"o. /96J CI"".II 1"-- ,1/'.,- q.d'''"J,,;/fo.rl..p..;o Ir, I.. .,, ,tJ, or "", i' ",.. ,It.. /.d h.." lli, I '0 ""I'''' l"" O'J , J....."Y hJ .."J l /. no".. idl 16 " M." "f T.pltJ""J ''''' J,,, ,1fI.' ,hi. .11 ,",,,r,,,...,,11 f'/" P""'''' 1:: :d: :1:I" for iJ. 0,J "" ",II ,n 00 ",,,,d,";...Jf'o'" '!""' l,......d 4.:;.

;';-L',2: . :t' . "0 , r')'- !C.. .JI m.ul.ud.,..... p"" "ootly. , .I. t.,,; ",d,h"o ldonn- ,I .nd '0"' ,1 "',1. . m 'o,.. 'ino""p,n.-d.-.h".b."""..n lor.. of p"l,,,,,. U\d tho ,h. only o..'n;" ! ('''10' ,"oold I ""I." h... pm...'! 0' . d.".. of 'n LM 'u"e. Alm,h., \t'''''''" b."c r., ;; ,h.

.J"n"," of. p"f,m..,"". ::. o '. m.o, ..." ...i. d. It .Do",. tru ..110,, .1 r".. e"" r,,m,d by ,,0 0""""0 Ru,,,' tlh""......"df,;elan. S.."'",,," 1 in- IJ ""1 .1,0" m\l"to ''''n 1",1,.. n, 6':op"n...

, . . ,.._.. ,. ,. , ,,) , ,,. ._ _... 828 FEDEMLTRADE COMMISSION DECISIONS Complnt D8 F.

II, ! 'i' , '" 'NI" !IIII' 1:1 I!.1I r I,ql" tl "'" "1 ti"h.J' 'i'"II"""",.M' I. ,!I It\lfi.JI- '''i.' iil! . lt,.. ("IIATunD.)T I. 4. II ,,, h!I ,'Itu it!!,h HYlr... IIC 1"1111 'II/fil 1111/111 1", 'fil 'RI"' Ttlll a.llli il.U UI, ffO .!U4 :1), II. Atl II"I 1,1 11. 4., 4IU 1M4 JIM 11..,""4'111" le, tH, 11,' J;II.I "t, t''' ..U' WOKI.l)' ILAIU'IUT tN'UINQI;/'"IlrtlMQl'tYI! bA' I HIUIiWA'I HIIUI!:tINO I't Tilt AN" 'fic:AI. DATA fI,iI"Ulh"I\I. iilllJ r 41f1,Cp,'" 'CIUI p H,iim!..h."I!k,, t!& I Jj' CPPf! "R MI!""II I (k' I aim IUC,1 p,' ifb,," MR uid. (1IIIk'l, Uppm Mpfl1 R.idt (&. 'ijlll II MII CI\"j"DiuIJ.(fhl II"\I iI) I . 111100 ful "" HJI.TJ tt:M'I IMtUII U,Only "'"I"' 1I. i911 IUU ""I' ,Hun 44', 911) I'I,d 'w.I .I''' ''''r' I""mn 11, )1 HI" (inmm rnl;.) _.o._.,;-c:1. ACummiH;1 Di...)l(n;IM".. '" UP"" .d1""I\""'I'U "'"..inl ..Ibl, n J,ca 'p7l. ",. r.II,..I", IIIW l'1 'roIL ro, I I.." H 1'\\ ",M a.r""Applll"ioo IIrT'ph ..d '10 II "lIowlfl ""f AHII!"ioll Iloe 'OMI"Yllllru,,I?pllr,,i,," Itell GREAT NORTH AMERICAN INDU::'jJjI , INC., 1;"1 AL. 817 Deision and Order 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 s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violate this said Act, and that complaint should issue stating its charges in that respect, and havi thereupon accepted the execute consent ageement and plaed iuch ageement on the public reord for a of sixty (60) days, now in the further peconformity with the proedure prescribe in Section 2.34 of its Rules the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondents Great North American Industries, Inc., and Products on the Move, Inc., are corporations organized, existing, and doing business under and by virtue of the laws of the State of Texas, with their principal offce and place of business at 104 West Main St., Gainesville, Texa. Respondent Patrick O. McCrary is an officer of said corporations. He formulate, dirts and controls the policies, acts and practices of sad corporations and his principal offce and place of business is located at the above state address. 2, The Federal Trade Commission ha jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER Part I It is ordered, That respondents Great North American Industries, , !! Decision and Order 98 ,' Inc.) a corporation, and Products on the Move, Inc., a corporation their successors and assigns, and their officers, and Patrick O. McCrary, individually and as an officer of Great North American Industries, Inc., and Products on the Move, Inc., and respondents 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 the engine oil additive known as Tephguard (Tefguard) or of any other engine oil additive containing polytetrafluoroethylene (PTFE) fluoropolymers in resin or micropowder form, including, but not limited to Teflon Fluon," and "Halon" resins, 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 additive wil or may result in substantial fuel economy improvement when used in an automobile, truck, recreational vehicle, or other motor vehicle.

Part II It is further ordered That respondents Great North American Industries, Inc., a corporation, and Products on the Move, Inc., a corporation, their successors and assigns, and their officers, and Patrick O. McCrary, individually and as an offcer of Great Nortb American Industries, Inc., and Products on the Move, Inc., and respondents' 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 any engine oil additive, any fuel additive, or any automobile retrofit device as "automobile retrofit device" is defined in Section 301 of the Energy Policy and Conservation Act of 1975 , 15 VB. 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 additive or 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, respondents rely upon written results of competent, scientific testing on a chassis dynamometer according to the then current urban dynamometer driving schedule (40 C. R. 86, Appendix I) and the then current highway fuel economy driving schedule (40 C. R. 600, Appendix I) established by the Environmental Protection Agency to substantiate GREAT NORTH AMERICAN INDUSTRIES, INC., ET AL. 831 817 Decision and Order such representation. Provided that, for any such test, respondents may select the type of vehicle, its model year, its engine size mileage, fuel type, and motor oil. Any break-in period used in the testing of any engine oil additive, fuel additive, or automobile retrofit device shall be the break-in period specified in the respondents' use directions for such additive or device; and (3) respondents clearly and conspicuously disclose (i) any limitation on the effcacy of the engine oil additive, fuel additive, or automobile retrofit device; (ii) the characteristics of any vehicle used in any test, including the vehicle type, vehicle model year, engine size, mileage, and the break-in period for the engine oil additive, fuel additive, or automobile retrofit device; and (iii) where any representation of fuel economy improvement from the use of a retrofit device, oil additive, or fuel additive is expressed in miles per gallon, miles per tankful, percentage, or other numerical representation, or where the representation of the benefit from the use of such additive or device is expressed as a monetary saving in dollars, percentage, or other numerical representation, all advertising and other sales promotional materials which contain the representation must also clearly and conspicuously disclose the following disclaimer: "Reminder: Your actual saving may vary. It depends on the kind of driving you do, how you drive, and the condition of your car. Part II It is further ordered That respondents Great North American Industries, Inc., a corporation, and Products on the Move, Inc. , a corporation, their successors and assigns, and their officers, and Patrick O. McCrary, individually and as an officer of Great North American Industries, Inc., and Products on the Move, Inc., and respondents' 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 any product or service in or affecting commerce, as " commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

a. representing, directly or by implication, any performance characteristic of any product or service, other than any representation covered by Part II of this order concerning any engine oil additive, any fuel additive, and any automobile retrofit device as automobile retrofit device" is defined in Section 301 of the Energy Policy and Conservation Act of 1975, 15 V. C. 2011, unless, at the time of making the representation, respondents possess and reason- 832 FEDER.AL TRADE COMMISSION DECISIONS Decision and Order 98 F. ably rely upon a reasonable basis which substantiates such representation. For . any representation of any performance characteristic of any product, other than any representation covered by Part II of this order concerning any engine oil additive, any fuel additive, or any automobile retrofit device as "automobile retrofit device" is defined in Section 301 of the Energy Policy and Conservation Act of 1975, 15 C. 2011, such reasonable basis must consist of competent scientific evidence;

b. representing, directly or by implication, that any federal state, or local governmental agency has approved, in any manner any product or service unless respondents possess, at the time of making such representation, written and dated authorization from such governmental agency that such representation may appear in advertising or sales promotional materials for the specific purpose for which such representation is used in the advertising or sales promotional materials.

. Provided that this paragraph shall not be construed to prohibit respondents from directly representing that they have tested any product or service in accordance with test procedures established by any federal, state, or local governmental agency so long as such representation is otherwise in compliance with the provisions of this order;

c. representing, directly or by implication, that any consumer endorsement of any product or service which appears in advertising or sales promotional materials reflects the typical experience of consumers with such product or service unless such representation is true;

d. misrepresenting, in any manner the ,purpose content, or conclusion of any test or survey pertaining to ny product or service. Part IV It is further ordered That respondents Great North American Industries, Inc., a corporation, and Products on the Move, Inc., a corporation, their successor and assigns, and their officers, and Patrick O. McCrary, individually and as an officer of Great North American Industries, Inc., and Products on the Move, Inc., and respondents' 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 any product or service in or affecting commerce, as commerce defined in the Federal Trade Commission Act, do forthwith cease md desist from failng to maintain the following accurate records GREAT NORTH AMERICAN INDUSTRIES, INC., ET AL. 833 817 Decision and Order 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; all documents which substantiate, contradict, or otherwise relate to any claim which is a part of the advertising, sales promotional materials, or post-purchase materials disseminated by respondents directly or through any business entity; copies of all documents generated by the requirements of Part V of this order. Such documentation relating to advertising shall be retained by respondents for a period of three (3) years from the last date any such advertising, sales promotional material, or post-purchase material was disseminated. Documentation relating to Part V of the order shall be retained by respondents for a period of three (3) years from the last date Exhibit C was disseminated. Part V It is further ordered, That respondents shall forthwith distribute a copy of this order to all operating divisions of said corporations, and to all present and future personnel, agents, or representatives having sales, advertising or policy responsibilties with respect to the subject matter of this order and that respondents shall secure from each such person a signed statement acknowledging receipt of such order.

Respondents shall also, within thirty (30) days of the date this order is served upon them, distribute, via first class mail, a copy of Exhibit C and a copy of this Agreement Containing Consent Order to Cease and Desist to each and every individual or other entity that has purchased from them, through one purchase or through a series of purchases, more than twelve (12) cans of Tephguard. Respondents shall also, at least five (5) days prior to filing any order or series of orders which individually or collectively indicate that more than twelve (12) cans of Tephguard have been ordered by any individual or other entity, distribute, via first class mail or any faster means, a copy of Exhibit C and a copy of this Agreement Containing Consent Order to Cease and Desist to each and every such individual or other entity.

Exhibit C and the envelope containing it shall be the corporate stationery of one of the corporate respondents. The envelope containing Exhibit C shall contain no marking other than name and return address of that corporate respondent, the name and address of the individual or other entity purchasing or ordering Tephguard Decision and Order 98 F. and the words .. IMPORTANT NOTICE " conspicuously disclosed on the front of the envelope.

Part VI It is further ordered That the corporate respondents notify the Commission at least thirty (30) days prior to any proposed change in 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 affect compliance obligations arising out of the order. Part VII It is further ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment. In addition, for a period of five years from the effective date of this order, the respondent shall promptly notify the Commission of each affiliation with a new business or employ ment. 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 expiration of the notice provision of this paragraph shall not affect any other obligation arising under this order.

Part VII It is further ordered That the respondents shall, within sixty (60) days after service upon them of this order, and also one (1) year in writing, setting thereafter, file with the Commission a report, forth in detail the manner and form in which they have complied with this order.

Chairman Miler did not participate.

EXHIBIT C Dear Tephguard Customer:

I am enclosing for your information a copy of an Agreement and Consent Order entered into by Great North American Industries Products on the Move, myself and the Federal Trade Commission. The Agreement and Consent Order, as stated in the Agreement GREAT NORTH AMERICAN INDUSTRIES, INC. , ET AL. 835 817 Decision and Order itself, is not an admission that any law enforced by the Federal Trade Commission has been violated, but, rather, sets forth certain requirements for any future advertising of Tephguard that Great North American Industries, Products on the Move, and I must follow. These requirements affect you also in the sense that they represent the views of the Federal Trade Commission on how Tephguard should be advertised in the future. I thus encourage you to closely review the enclosed document.

Your continued confidence in our line of products is appreciated. Very truly yours Patrick O. McCrary, President Great North American Industdes, Inc.

and Products on the Move, Inc.

Complaint 98 F.