Mobil Oil Corporation

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IN THE MATTER OF MOBIL OIL CORPORATION CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3415. Complaint, Feb. |, 1993--Decision, Feb. |, 1993 This consent order prohibits, among other things, a Virginia-based manufacturer and seller of plastic bags from making unsubstantiated degradability and environmental benefit claims.

Appearances For the Commission: Michael Dershowitz and Mary Koelbel Engle.

For the respondent: Judith Oldham and John Williams, Collier, Shannon & Scott, Washington, D.C.

COMPLAINT The Federal Trade Commission, having reason to believe that Mobil Oil Corporation, a corporation, has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. Respondent Mobil Oil Corporation is a New York corporation with its office and principal place of business located at 3225 Gallows Road, Fairfax, Virginia. PAR. 2. Respondent has manufactured, advertised, offered for sale, sold, and distributed plastic trash bags to the public under such trade names as Hefty, Kordite, and Baggies. Respondent has also manufactured, advertised, offered for sale, sold, and distributed plastic grocery store bags to grocery stores and supermarkets under Complaint 116 F.T.C.

the brand names Marketote and Minitote and under the stores’ private labels.

PAR. 3. The acts or practices of respondent alleged in this complaint have been in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act. PAR. 4. Respondent has disseminated or has caused to be disseminated advertisements and promotional materials, including package labeling, for plastic trash and grocery store bags, including, but not necessarily limited to, the attached Exhibits A, B, and C. The aforesaid package labeling (Exhibit A) contains the following statements:

DEGRADABLE {Hefty Degradable Bags} contain a special ingredient that promotes their breakdown after exposure to elements like sun, wind, and rain. This ingredient promotes degradation without harming the environment. Once the elements have triggered the process, these bags will continue to break down into harmless particles even after they are buried in a landfill. --you don't have to worry that [Hefty Bags] will degrade sitting on your shelf or at the curb. These bags have been specially formulated so they're only activated by exposure to the elements.

Hefty Degradable Bags -- a step in our commitment to a better environment.

Hefty Helps! The aforesaid grocery store bag labeling contains the following statements:

THIS BAG * Degrades in sunlight * Landfill safe * Non-toxic when incinerated * No ground water contamination * Recyclable PAR. 5. Through the statements referred to in paragraph four in both package labeling and grocery store bag labeling, and others in labeling not specifically set forth herein, respondent has represented, directly or by implication, that:

MOBIL OIL CORPORATION 115 113 Complaint 1. Compared to other plastic bags, respondent's plastic bags offer a significant environmental benefit when consumers dispose of them as trash; and 2. Respondent’s plastic bags will completely break down, decompose, and return to nature in a reasonably short period of time after consumers dispose of them as trash. PAR. 6. Through the statements and representations referred to in paragraphs four and five, and others not specifically set forth herein, respondent has represented, directly or by implication, that at the time it made such representations, respondent possessed and relied upon a reasonable basis for such representations. PAR. 7. In truth and in fact, at the time respondent made such representations, respondent did not possess and rely upon a reasonable basis for such representations. Therefore, the representation set forth in paragraph six was, and is, false and misleading. PAR. 8. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act.

Complaint EXHIBIT A : Desi GIN X3FT ait : ACTNATEDB5 1 5 1 2 3 1046 1358 22 24 75.581520 BY5 1 5 1 2 4 1073 1353 78 62 23.229507 EXRSURE5 1 5 1 2 5 1160 1362 17 48 62.994095 TO5 1 5 1 2 6 1186 1353 27 62 62.994095 THES 1 5 1 2 7 1218 1353 88 62 0.000000 ELVENTS2 1 6 0 0 0 850 1695 303 98 -1 3 1 6 1 0 0 850 1695 303 97 -1 4 1 6 1 1 0 850 1695 303 97 -1 5 1 6 1 1 1 850 1695 105 69 12.288437 Floss5 1 6 1 1 2 922 1718 96 50 95.753487 ingredients 1 6 1 1 3 1022 1738 90 31 63.395954 Promotes5 1 6 1 1 4 1113 1739 40 53 43.981781 me4 1 6 1 2 0 850 1757 251 36 -1 5 1 6 1 2 1 850 1760 82 33 91.504196 harming5 1 6 1 2 2 933 1757 32 32 96.858971 thes 1 6 1 2 3 973 1757 128 32 62.820427 environment.2 1 7 0 0 0 844 1809 426 52 -1 3 1 7 1 0 0 844 1809 426 44 -1 4 1 7 1 1 0 846 1809 424 44 -1 5 1 7 1 1 1 846 1809 2 2 63.799942 ‘5 1 7 1 1 2 1097 1813 19 14 86.515892 ito5 1 7 1 1 3 1120 1812 86 21 23.327415 harmless5 1 7 1 1 4 1210 1810 60 43 26.108215 partic4 1 7 1 2 0 844 1823 359 38 -1 5 1 7 1 2 1 844 1841 2 12 29.292519 y5 1 7 1 2 2 850 1823 45 38 77.297577 even5 1 7 1 2 3 903 1823 42 38 57.360855 atier5 1 7 1 2 4 951 1823 40 38 64.323883 they5 1 7 1 2 5 993 1826 32 34 88.403816 ares 1 7 1 2 6 1032 1826 55 34 96.802689 buried5 1 7 1 2 7 1097 1839 32 12 0.000000 ina5 1 7 1 2 8 1134 1835 69 21 46.223366 fandfitl.2 1 8 0 0 0 839 1851 448 193 -1 3 1 8 1 0 0 839 1851 448 142 -1 4 1 8 1 1 0 847 1851 431 56 -1 5 1 8 1 1 1 847 1851 67 53 42.246437 [Rew5 1 8 1 1 2 922 1851 61 53 0.000000 riety5 1 8 1 1 3 971 1869 113 37 71.350822 Degradable’5 1 8 1 1 4 1084 1873 53 34 19.890587 Bags5 1 8 1 1 5 1136 1870 47 35 82.903915 have5 1 8 1 1 6 1188 1865 34 41 96.923508 thes 1 8 1 1 7 1219 1879 59 28 91.892670 same4 1 8 1 2 0 855 1892 430 35 -1 5 1 8 1 2 1 855 1901 78 19 78.752975 ‘Strengths 1 8 1 2 2 938 1902 35 15 90.874313 ands 1 8 1 2 3 978 1898 88 24 51.291092 durabitily5 1 8 1 2 4 1072 1892 36 35 92.470741 that5 1 8 1 2 5 1113 1905 62 20 92.856041 you've5 1 8 1 2 6 1179 1908 10 12 52.573246 ci5 1 8 1 2 7 1283 1924 2 2 0.000000 -4 1 8 1 3 0 841 1923 446 25 -1 5 1 8 1 3 1 841 1930 2 2 46.717419 *5 1 8 1 3 2 855 1925 63 20 0.000000 @qpect5 1 8 1 3 3 922 1923 43 16 94.673523 from5 1 8 1 3 4 970 1924 54 20 89.238159 Hefty,5 1 8 1 3 5 1030 1926 36 15 93.799911 ands 1 8 1 3 6 1070 1929 35 16 94.032166 you5 1 8 1 3 7 1110 1923 48 19 77.859718 don’t5 1 8 1 3 8 1234 1932 53 16 84.525917 ‘worry4 1 8 1 4 0 845 1938 437 38 -1 5 1 8 1 4 1 845 1963 2 2 0.000000 .5 1 8 1 4 2 851 1938 38 38 54.012867 Shat5 1 8 1 4 3 898 1938 36 38 87.177719 they5 1 8 1 4 4 942 1938 12 38 68.576790 Tl5 1 8 1 4 5 964 1938 65 38 94.972496 degrade5 1 8 1 4 6 1037 1938 61 38 94.569145 sitting5 1 8 1 4 7 1107 1938 20 38 51.860958 on5 1 8 1 4 8 1136 1938 38 38 51.860958 yours 1 8 1 4 9 1183 1938 43 38 78.585312 shells 1 8 1 4 10 1237 1955 15 12 33.139511 or5 1 8 1 4 11 1256 1938 26 38 33.139511 at.4 1 8 1 5 0 839 1968 400 27 -1 5 1 8 1 5 1 839 1968 47 17 50.225060 thes 1 8 1 5 2 890 1970 47 16 87.774445 curb.5 1 8 1 5 3 942 1969 59 17 96.752106 These5 1 8 1 5 4 1006 1971 47 20 96.164276 bags5 1 8 1 5 5 1059 1964 39 35 96.164276 have5 1 8 1 5 6 1106 1964 42 35 96.868439 been5 1 8 1 5 7 1157 1969 82 26 94.565559 specially3 1 8 2 0 0 846 1992 371 43 -1 4 1 8 2 1 0 846 1992 371 24 -1 5 1 8 2 1 1 846 2008 2 2 5.023483 /5 1 8 2 1 2 855 1992 103 21 20.833908 formulated5 1 8 2 1 3 962 1991 25 18 85.715668 so5 1 8 2 1 4 988 1993 68 24 85.503723 they're5 1 8 2 1 5 1060 1995 45 20 49.712860 only5 1 8 2 1 6 1106 1993 84 19 49.712860 activated5 1 8 2 1 7 1195 1996 22 20 96.893410 by4 1 8 2 2 0 850 2007 297 37 -1 5 1 8 2 2 1 850 2007 87 37 73.445786 exposure5 1 8 2 2 2 945 2014 22 17 88.268250 to5 1 8 2 2 3 970 2014 31 18 96.200294 thes 1 8 2 2 4 1005 2012 98 32 81.369034 elements,5 1 8 2 2 5 1118 2025 29 7 55.294708 wy2 1 9 0 0 0 835 2033 416 72 -1 3 1 9 1 0 0 835 2033 416 72 -1 4 1 9 1 1 0 835 2033 416 72 -1 5 1 9 1 1 1 835 2065 6 21 49.973354 35 1 9 1 1 2 848 2033 78 72 13.786156 (Hlery5 1 9 1 1 3 938 2033 291 72 0.000000 ococttiesoge-astpinow5 1 9 1 1 4 1249 2068 2 4 48.317394 :2 1 10 0 0 0 834 2085 345 20 -1 3 1 10 1 0 0 834 2085 345 20 -1 4 1 10 1 1 0 834 2085 345 20 -1 5 1 10 1 1 1 834 2086 3 8 39.242607 {+5 1 10 1 1 2 856 2085 120 27 59.345993 Commitments 1 10 1 1 3 981 2081 16 35 52.781853 to5 1 10 1 1 4 1003 2089 12 13 52.781853 25 1 10 1 1 5 1020 2086 57 17 93.305794 better5 1 10 1 1 6 1081 2088 98 22 33.343018 environme:2 1 11 0 0 0 727 712 1170 1527 -1 3 1 11 1 0 0 727 712 1170 1527 -1 4 1 11 1 1 0 727 712 1170 1527 -1 5 1 11 1 1 1 727 712 1170 1527 95.000000 2 1 12 0 0 0 1858 500 135 27 -1 3 1 12 1 0 0 1858 500 135 27 -1 4 1 12 1 1 0 1858 500 135 27 -1 5 1 12 1 1 1 1858 500 42 24 68.787582 1165 1 12 1 1 2 1912 502 81 25 68.787582 F.T.C, MOBIL OIL CORPORATION 117 113 Complaint EXHIBIT B Kordite — TRASH & 'GRASS BAGS BAGS WITH TIES/1.01 MIL OFT. IN.X2FT. TIN, : ACTIVATED5 1 6 1 2 3 954 1497 24 34 86.739548 BY5 1 6 1 2 4 989 1497 146 35 86.739548 EXPOSURE4 1 6 1 3 0 834 1535 205 34 -1 5 1 6 1 3 1 834 1535 241 60 50.597542 THEELEMENTS2 1 7 0 0 0 579 1719 325 134 -1 3 1 7 1 0 0 579 1719 329 134 -1 4 1 7 1 1 0 579 1719 325 134 -1 5 1 7 1 1 1 579 1770 5 8 28.128349 |5 1 7 1 1 2 600 1719 304 134 40.170906 Kordite2 1 8 0 0 0 574 1866 397 75 -1 3 1 8 1 0 0 574 1866 397 75 -1 4 1 8 1 1 0 574 1866 291 32 -1 5 1 8 1 1 1 574 1896 2 2 64.409531 |5 1 8 1 1 2 637 1866 228 25 50.872429 COEGRADABLE*4 1 8 1 2 0 582 1912 389 29 -1 5 1 8 1 2 1 582 1912 5 5 0.000000 '5 1 8 1 2 2 601 1921 110 20 87.713486 KORDITE5 1 8 1 2 3 728 1920 162 21 90.199669 DEGRADABLE5 1 8 1 2 4 904 1920 67 21 96.029213 BAGS2 1 9 0 0 0 601 1950 585 45 -1 3 1 9 1 0 0 601 1950 585 45 -1 4 1 9 1 1 0 601 1950 585 21 -1 5 1 9 1 1 1 601 1958 7 6 50.984871 +5 1 9 1 1 2 614 1952 85 16 48.426479 Contain:a5 1 9 1 1 3 706 1953 62 18 94.471443 specials 1 9 1 1 4 774 1953 88 18 72.096367 ingredients 1 9 1 1 5 868 1951 34 17 68.385391 that5 1 9 1 1 6 907 1953 85 18 69.152939 promotes5 1 9 1 1 7 998 1951 38 16 96.591721 theirs 1 9 1 1 8 1042 1950 98 17 93.190224 breakdown5 1 9 1 1 9 1146 1950 40 16 87.956932 atter4 1 9 1 2 0 616 1974 285 21 -1 5 1 9 1 2 1 616 1979 83 16 86.021164 exposure5 1 9 1 2 2 705 1977 16 13 88.345367 to5 1 9 1 2 3 727 1975 90 17 90.219635 sun..wind,5 1 9 1 2 4 824 1974 33 16 96.685806 ands 1 9 1 2 5 864 1977 37 12 92.487465 rain.2 1 10 0 0 0 603 2001 484 22 -1 3 1 10 1 0 0 603 2001 484 22 -1 4 1 10 1 1 0 603 2001 484 22 -1 5 1 10 1 1 1 603 2006 7 6 63.804123 *5 1 10 1 1 2 616 2001 108 20 90.232979 Degradation5 1 10 1 1 3 730 2003 60 13 95.196190 occurs5 1 10 1 1 4 795 2001 64 15 84.759087 without5 1 10 1 1 5 865 2001 72 19 84.759087 harming5 1 10 1 1 6 943 2001 29 15 93.289673 thes 1 10 1 1 7 977 2001 110 22 92.021393 enviranment2 1 11 0 0 0 596 2026 617 42 -1 3 1 11 1 0 0 596 2026 617 42 -1 4 1 11 1 1 0 603 2026 610 20 -1 5 1 11 1 1 1 603 2032 7 6 50.407639 ©5 1 11 1 1 2 616 2027 48 16 94.188217 Once5 1 11 1 1 3 670 2027 158 19 92.094910 photodegradation5 1 11 1 1 4 832 2028 64 18 87.570938 begins,5 1 11 1 1 5 902 2028 50 15 96.706039 these5 1 11 1 1 6 958 2027 44 19 96.446754 bags5 1 11 1 1 7 1007 2026 76 16 96.446754 continues 1 11 1 1 8 1088 2028 17 14 62.920422 te.5 1 11 1 1 9 1110 2026 50 16 79.121895 breaks 1 11 1 1 10 1165 2026 48 16 88.235466 down4 1 11 1 2 0 596 2049 377 19 -1 5 1 11 1 2 1 596 2058 2 2 0.000000 -5 1 11 1 2 2 619 2049 32 16 10.932419 into5 1 11 1 2 3 657 2049 82 15 88.212479 harmless5 1 11 1 2 4 744 2049 75 19 36.973198 particles5 1 11 1 2 5 824 2052 44 13 96.144165 even5 1 11 1 2 6 874 2052 15 12 88.020454 in5 1 11 1 2 7 895 2049 78 16 42.806187 atandhilt.2 1 12 0 0 0 605 2076 407 48 -1 3 1 12 1 0 0 605 2076 407 48 -1 4 1 12 1 1 0 605 2076 407 21 -1 5 1 12 1 1 1 605 2076 44 15 55.987888 «Will5 1 12 1 1 2 655 2076 108 20 74.809525 not-degrade5 1 12 1 1 3 768 2079 22 13 95.797623 on5 1 12 1 1 4 796 2080 39 17 95.797623 yours 1 12 1 1 5 841 2076 42 17 90.199036 shelf5 1 12 1 1 6 889 2079 18 13 95.770187 or5 1 12 1 1 7 913 2076 50 16 5.761253 atthe5 1 12 1 1 8 969 2076 43 15 71.789810 curb.4 1 12 1 2 0 606 2102 340 22 -1 5 1 12 1 2 1 606 2108 7 16 43.597263 =5 1 12 1 2 2 619 2102 52 16 84.367332 Same5 1 12 1 2 3 677 2102 63 16 91.287987 Kardite5 1 12 1 2 4 746 2103 72 21 96.239975 strengths 1 12 1 2 5 823 2104 34 16 96.638763 ands 1 12 1 2 6 862 2103 84 20 89.130814 durability.2 1 13 0 0 0 528 732 1372 1474 -1 3 1 13 1 0 0 528 732 1372 1474 -1 4 1 13 1 1 0 528 732 1372 1474 -1 5 1 13 1 1 1 528 732 1372 1474 95.000000 Complaint Hl6F.T.C.

EXHIBIT C Mobil Chemical Company CAUTION:

PASS DABS Cam Comst Sussex ation ALASE BEEP THIS PRODUCT AND ALL PLASC BAGS OUT Of Tmt REACH OF CHM DAEN 00 WOT Pt Aut! CH DAEN TO PLAY Win TH AND DO MOT USE THE Ms IM CRIBS, PLAYPENS OR CARALAGES Consumer Products Divimon. Pillstord. New York, 14834 OMobd 1967, 1989 Pinied nm USA 547-2287 , BE5-4012 MOBIL OIL CORPORATION 119 113 Decision and Order 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 complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent, its attorney, 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 complaint, a statement that the signing of said 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 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 makes the following jurisdictional findings and enters the following order: .

1. Respondent Mobil Oil Corporation is a Delaware corporation with its office and principal place of business at 3225 Gallows Road, Fairfax, Virginia.

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.

Decision and Order 116 F.T.C.

ORDER DEFINITION For purposes of this order, the following definition shall apply: “Mobil plastic bag’ means any plastic grocery bag, or any plastic “disposer” bag, including but not limited to trash bags, lawn bags, and kitchen bags, that is offered for sale, sold, or distributed to the public by respondent, its successors and assigns, under the “Hefty,” “Kordite,” or “Baggies” brand name or any other brand name of respondent, its successors and assigns; and also means any such plastic bag sold or distributed to the public by third parties under private labeling agreements with respondent, its successors and assigns.

A. It is ordered, That respondent Mobil Oil Corporation, a corporation, its successors and assigns, and its officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, offering for sale, sale, or distribution of any Mobil plastic bag, 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, by words, depictions, or symbols:

(1) That any such plastic bag is “degradable,” “biodegradable,” or “photodegradable”’; or (2) Through the use of “degradable,” “biodegradable,” “photodegradable,” or any other substantially similar term or expression, that the degradability of any such plastic bag offers any environmental benefits when disposed of as trash in a sanitary landfill, unless at the time of making such representation, respondent possesses and relies upon a reasonable basis for such representation, MOBIL OIL CORPORATION 121 113 Decision and Order consisting of competent and reliable scientific evidence that substantiates such representation. To the extent such evidence of a reasonable basis consists of scientific or professional tests, analyses, research, studies, or any other evidence based on expertise of professionals in the relevant area, such evidence shall be “competent and reliable” only if those tests, analyses, research, studies, or other evidence are conducted and evaluated in an objective manner by persons qualified to do so, and using procedures generally accepted in the profession to yield accurate and reliable results. B. Provided, however, respondent will not be in violation of this order, in connection with the advertising, labeling, offering for sale, sale, or distribution of plastic grocery bags, if it prints a diamond-shaped symbol on such bags in compliance with Florida state law, and/or truthfully states that such bag “Complies with Florida law.”

C. Provided, further, respondent will not be in violation of this order, in connection with the advertising, labeling, offering for sale, sale, or distribution of plastic bags, if it truthfully represents that its plastic bags are designed to degrade or break down, and become part of usable compost, along with the bag’s contents, when disposed of in programs that collect yard or other waste for composting (that is, the accelerated breakdown of waste into soil-conditioning material), provided that the labeling of such bags and any advertising referring to the degradability of such bags discloses clearly, prominently, and in close proximity to such representation: (1)(a) That such bags are not designed to degrade in landfills, or (1)(b) In those states in which composting facilities are required for yard waste, that composting bags are only designed to degrade in such composting facilities; and further discloses (2)(a) that yard waste composting programs may not be available in the consumer’s area, Or (2)(b) The approximate percentage of the U.S. population having access to yard waste composting programs. Decision and Order 116 F.T.C.

For purposes of this provision, a disclosure elsewhere on the product package shall be deemed to be “‘in close proximity” to such representation if there is a clear and conspicuous cross- reference to the disclosure. The use of an asterisk or other symbol shall not constitute a clear and conspicuous cross-reference. A crossreference shall be deemed clear and conspicuous if it is of sufficient prominence to be readily noticeable and readable by the prospective purchaser when examining the package. If such representation appears in more than one place on a package, it shall be sufficient if the above-required disclosures appear only on the principal display panel of the package, as “principal display panel” is defined in the Fair Packaging and Labeling Act, 15 U.S.C. 1459(f) (1988). If the advertising and labeling of respondent's plastic bags otherwise comply with subpart A of part I of this order, respondent will not be in violation of this order if it does not make the disclosures in this proviso (subpart C).

I.

It is further ordered, That respondent Mobil Oil Corporation, a corporation, its successors and assigns, and its officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising or labeling of any Mobil plastic bag, in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from using the terms “safe for the environment,” “no harm to the environment,” “no injury to the environment,” “no risk to the environment,” “friendly to the environment,” or any rearrangement of such terms, é.8., “environmentally safe,” “environmentally harmless,” ‘“environmentally risk-free” or “environmentally friendly,” unless: (1) respondent discloses clearly, prominently, and in close proximity thereto with reasonable specificity what is meant by such term, and (2) at the time of making such representation, respondent possesses and relies upon a reasonable basis, consisting of competent and reliable scientific evidence that substantiates such representation. MOBIL OIL CORPORATION 123 113 Decision and Order To the extent such evidence of a reasonable basis consists of scientific or professional tests, analyses, research, studies, or any other evidence based on expertise of professionals in the relevant area, such evidence shall be “competent and reliable” only if those tests, analyses, research, studies, or other evidence are conducted and evaluated in an objective manner by persons qualified to do so, and using procedures generally accepted in the profession to yield accurate and reliable results. For purposes of this provision, a disclosure elsewhere on the product package shall be deemed to be ‘in close proximity” to such terms if there is a clear and conspicuous cross-reference to the disclosure. The use of an asterisk or other symbol shall not constitute a clear and conspicuous cross-reference. A cross-reference shall be deemed clear and conspicuous if it is of sufficient prominence to be readily noticeable and readable by the prospective purchaser when examining the package. HI.

Nothing in this order shall prevent respondent from using any of the terms cited in parts I and II, or similar terms or expressions, if necessary to comply with any federal rule, regulation, or law governing the use of such terms in advertising or labeling. IV.

It is further ordered, That for three (3) years from the date that the representations to which they pertain are last disseminated, respondent shall maintain and upon request make available to the Federal Trade Commission for inspection and copying: A. All materials relied upon to substantiate any representation covered by this order; and B. All test reports, studies, surveys, or other materials in its possession or control that contradict, qualify, or call into question such representation or the basis upon which respondent relied for such representation.

Statement 116 F.T.C.

V.

It is further ordered, That respondent shall distribute a copy of this order within sixty (60) days after service of this order upon it to each of its operating divisions and to each of its officers, agents, representatives, or employees engaged in the preparation of labeling and advertising and placement of newspaper, periodical, broadcast, and cable advertisements covered by this order. VI.

It is further ordered, That respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the corporation such as a 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 under this order. VII.

It is further ordered, That respondent shall, within sixty (60) days after service of this order upon it, and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.

Commissioner Owen dissenting as to the “specificity” requirement.

STATEMENT OF COMMISSIONER DEBORAH K. OWEN As in other degradability cases,' the consent order in this matter requires Mobil to provide specificity with respect to certain claimed general environmental benefits. According to the Notice to Aid First Brands, Inc., C-3358 (Final Order Issued Jan. 3, 1992): American Enviro Products, Inc.. C-3376 (Final Order Issued Mar. 18, 1992). MOBIL OIL CORPORATION 125 113 Statement Public Comment, the purpose of the provision is to “ensure compliance” with the order. In Archer Daniels Midland, File No. 902-3283, the Commission for the first time in its recent series of degradability cases accepted for comment an order that did not include the specificity requirement. If Archer Daniels Midland is a harbinger that the Commission intends to pursue a future policy of not mandating “specificity” in cases of this nature, I would prefer to have modified the order against Mobil to delete the specificity requirement prior to making the order final. Modifying Order 116 F.T.C.