Safe Brands Corporation

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

SAFE BRANDS CORPORATION, ET AL. 379

379 Complaint

IN THE MATTER OF

SAFE BRANDS CORPORATION, ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3647. Complaint, March 26, 1996--Decision, March 26, 1996

This consent order requires the respondents, among other things, to have reliable scientific evidence to substantiate certain claims regarding the environmental benefits, the level of engine protection and the safety of any antifreeze, coolant or deicer. The consent order also requires the respondents to provide a disclosure statement cautioning consumers that Sierra antifreeze may be harmful if swallowed. In addition, the consent order prohibits the respondents from misrepresenting the recyclability of such products and their packages.

Appearances

For the Commission: Joel Winston, Michael Dershowitz, C. Lee Peeler and Michael Ostheimer. For the respondents: Robert Magielnicki, Kutak & Rock, Washington, D.C. V. Peter Wynne, in-house counsel for ARCO Chemical Co., Newton Square, PA.

COMPLAINT

The Federal Trade Commission, having reason to believe that Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO Chemical Company, a corporation ("respondents"), have 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 Safe Brands Corporation ("Safe Brands") is a Nebraska corporation which is a wholly owned subsidiary of respondent Warren Distribution, Inc. ("Warren Distribution"), a Nebraska corporation. Respondents Safe Brands and Warren Distribution have their principal offices or places of business at 727 South 13th Street, Omaha, Nebraska.

Complaint 121 F.T.C.

Respondent ARCO Chemical Company ("ARCO Chemical") is a Delaware corporation with its principal office or place of business at 3801 West Chester Pike, Newtown Square, Pennsylvania. PAR. 2. Respondents Safe Brands and Warren Distribution have advertised, labeled, offered for sale, sold, and distributed a propylene glycol-based automobile antifreeze, under the trade name "Sierra Antifreeze-Coolant" (hereinafter "Sierra antifreeze"), and other products to the public. Respondent ARCO Chemical sold the propylene glycol used in the manufacture of Sierra antifreeze. PAR. 3. Respondent ARCO Chemical has furnished the means and instrumentalities to respondents Safe Brands and Warren Distribution to engage in the acts and practices alleged in paragraphs five through twenty-one herein by providing information for, participating in the preparation of, paying for, and reviewing and/or approving Sierra antifreeze advertising and promotional materials, including but not limited to the attached Exhibits A through G. In addition, respondent ARCO Chemical has itself disseminated advertisements under its own name for propylene glycol-based antifreeze generally, including but not limited to the attached Exhibit H. Respondents Safe Brands and Warren Distribution have also disseminated ARCO Chemical advertisements for propylene glycol-based antifreeze generally, including but not limited to the attached Exhibit H. PAR. 4. The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act. PAR. 5. Respondents have disseminated or have caused to be disseminated advertisements, including television advertisements, product labeling, and other promotional materials, for Sierra antifreeze, and propylene glycol-based antifreeze generally, including but not necessarily limited to the attached Exhibits A through H. These advertisements contain the following statements and depictions:

A. If you care about this big beautiful world, show me. Depiction of clouds, sky, trees.

Don't give me another toxic antifreeze.

Give me something different. Depiction of containers of Sierra antifreeze. Don't just tell me it protects to seventy below. And guards against rust. Any antifreeze can do that. Depiction of sunlight through the trees. Tell me it's safer. For my dog. Depiction of dog and car.

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379 Complaint

My family. Depiction of father with child and mother in background. The kids. Depiction of family walking together holding hands. Tell me nothing protects better.

And it's biodegradable. Depiction of a field with flowers. That's what I want to know. Depiction of body of water with green plants in foreground.

That's what I want to hear.

New Sierra. It's not just antifreeze. Super: It's not just Antifreeze. It's safety freeze. Depiction of adult holding little girl. Super: It's Safety Freeze.™ (Exhibit A, television advertisement).

B. Depiction of house with sky and trees in background. They care about the world these days. They just don't want me to put another toxic antifreeze in their car. I mean, who needs toxic. Depiction of girl on tire swing. So what if it protects to seventy below. Depiction of tree branches. Any antifreeze can do that. Tell me it's different. Depiction of container of Sierra antifreeze. Safer. Depiction of little girl with dog.

Tell me nothing protects better. Depiction of boy looking under car hood as man pours Sierra into car radiator. Depiction of woman with girl and dog. And it's biodegradable. Depiction of lake and trees. I mean, what if their dog gets into it? Depiction of dog with man by garage. Or their kids? Depiction of little girl with a barrel. This is serious. Depiction of little girl looking into barrel. It's a changing world. Poison's out.

New Sierra. It's not just antifreeze. Super: It's not just Antifreeze. It's safety freeze. Depiction of little girl with cat. Super: It's Safety Freeze.™ (Exhibit B, television advertisement).

C. Depiction of man and boy working on car. People care these days. They just don't want me to put another toxic antifreeze in their car. I mean, who needs something that toxic. Depiction of girl on tire swing. So what if it protects to seventy below. Depiction of man and boy working on car. Any antifreeze can do that. Give me something different. Depiction of container of Sierra antifreeze. Something safer. Depiction of little girl with dog. That's essentially non-toxic. Depiction of dog with bucket of clear liquid. I mean, what if their dog gets into it? Depiction of dog with man by garage. Or their kids? Depiction of girl and woman with dog. This is serious. Depiction of family with dog. Sierra. Its not just antifreeze. Super: Parents: Store safely. Not for drinking. It's safety freeze. Depiction of girl with cat. Super: It's Safety Freeze.™ Parents: Store safely. Not for drinking. (Exhibit C, television advertisement).

D. 1. S I E R R A Antifreeze * Coolant * Essentially Non Toxic * Safer For People & Pets * Superior Engine Protection

B I O D E G R A D A B L E (Exhibit D.1, former product label - front).

Complaint 121 F.T.C.

Exhibit D.1 also included on the front a product logo that included the statement "ENVIRONMENTALLY SAFER" and depicted trees, mountains, water, and sky. D.2. THE ULTIMATE IN AUTOMOTIVE PROTECTION AND ENVIRONMENTAL SAFETY ULTIMATE AUTOMOTIVE PROTECTION:

SIERRA protects cars from freeze-ups during the harshest winter conditions and from boil-overs in extreme summer temperatures.... ESSENTIALLY NON-TOXIC ENVIRONMENTALLY SAFER SIERRA's essentially non-toxic formula guards against poisonings of children and pets. All other leading brands of antifreeze contain ethylene glycol which is highly toxic.

SIERRA is naturally biodegradable and is converted to harmless components in activated treatment systems.

. . . However, mixing SIERRA with ethylene glycol antifreeze eliminates the toxicity and performance advantages of SIERRA.

SIERRA contains propylene glycol and although it is not "toxic" as defined by the regulations of the Consumer Product Safety Commission at 16 CFR 1500.3(c)(2), it is not for human consumption and should be kept out of reach of children. (Exhibit D.2., former product label - back). Exhibit D.2 also included on the back the statement "Recyclable Plastic Container" below a depiction of a three chasing arrow symbol. E.1. SIERRA Antifreeze * Coolant * Essentially Non Toxic To People & Pets SAFETY FREEZE (Exhibit E.1., subsequent product label - front). Exhibit E.1. also includes on the front a product logo that includes the statement "SAFER PROTECTION" and depicts a man, a girl, a dog, and a bird. E.2. SAFER AND PHOSPHATE FREE - SIERRA PROTECTS YOUR FAMILY...

ENVIRONMENTAL BENEFITS * Toxicity -- Because it is essentially non toxic, SIERRA is safer for people, pets, and wildlife in the environment than other leading brands. Many poisonings of animals are caused by their drinking conventional antifreeze that has spilled or leaked from cars. SIERRA greatly reduces this risk. * Biodegradability -- Sierra biodegrades readily in the natural environment and in activated sewage treatment systems as may other brands. All antifreeze can become contaminated with trace amounts of lead or other metals and should be disposed of properly and in accordance with local regulations. Even if contaminated with trace metals, used SIERRA is far less poisonous to animal life than conventional antifreeze.

* Recyclability -- Used SIERRA can be mixed with conventional antifreeze in collection systems and recycling processes. This SIERRA container . . . can be further recycled. Recycling may not be available in all areas. CAUTIONARY INFORMATION

SAFE BRANDS CORPORATION, ET AL. 383

379 Complaint

SIERRA contains propylene glycol and although it is not "toxic" as defined by the regulations of the Consumer Product Safety Commission, SIERRA is NOT INTENDED FOR HUMAN OR ANIMAL CONSUMPTION so: KEEP OUT OF REACH OF CHILDREN.

(Exhibit E.2., subsequent product label - back). F. Safety & Environmental Advantages ANTIFREEZE - A TOXIC PROBLEM SIERRA - THE SAFER ANTIFREEZE With its mission being to develop effective but environmentally safer products for the automotive market, Safe Brands Corporation initiated research to find a nontoxic, environmentally safer alternative to existing EG based antifreeze brands. We discovered that it was possible to formulate a highly effective, heavy duty antifreeze from essentially non-toxic components -- completely omitting ethylene glycol. The results of this research is SIERRA -The Safer Antifreeze. Sierra is formulated with propylene glycol. Unlike EG, propylene glycol (PG) is safe. It is so safe that it is used in the formulation of many consumer products such as cosmetics including lipstick and medicines such as Children's Tylenol. It is also a key moisturizing ingredient used in . . . pet foods. Pharmaceutical grade PG has received a "generally recognized as safe" designation from the Food and Drug Administration. . . .

SIERRA IS BIODEGRADABLE PG does not persist in the environment. It is readily consumed by microorganisms. In addition to its natural biodegradability, it is fully degraded within 24 hours in activated sludge treatment plants operating at 65°F. Performance Advantages COOLING SYSTEM PERFORMANCE ADVANTAGES OF SIERRA SUPERIOR FREEZE PROTECTION . . . Unlike EG based antifreeze solutions which begin expanding soon after their initial freezing point is reached, SIERRA solutions do not begin to expand until the temperature becomes considerably lower than the initial freezing point. This characteristic of SIERRA adds a margin of safety against the expansion breakage of engines and cooling systems components. SUPERIOR CORROSION PROTECTION . . . In a paper presented at the 1990 Society of Automotive Engineers (SAE) Convention in Detroit, representatives of Cummins Engine Fleetguard Division and Arco Chemical Company presented data which demonstrated the superior corrosion protection characteristics of propylene glycol over ethylene glycol based coolants. (Exhibit F, former neck tag pamphlet).

G. Depiction of products including Dolly Madison Bakery Zingers, Wyler's Bouillon Cubes, Vicks Children's NyQuil, Infant's Tylenol, Chubs Baby Wipes, Maybelline Great Lash Mascara, ALPO Beef Jerky Bits, and Ken-L Ration Kibbles 'n Bits.

In addition to consumer safety, these trusted products have one thing in common... They all contain propylene glycol.

So does ...

384 \hfill FEDERAL TRADE COMMISSION DECISIONS

\begin{center} Complaint \hfill 121 F.T.C.

\end{center}

Depiction of the front of a Sierra antifreeze container including the statements, "Essentially Non Toxic," "Safer For People & Pets," "Superior Engine Protection," "BIODEGRADABLE," and "ENVIRONMENTALLY SAFER" and the depiction of trees, mountains, water, and sky. It's Not Just Antifreeze.

It's Safety Freeze.

(Exhibit G, promotional material).

\hspace{0.5in} H. PG Antifreeze Safety and Environmental Advantages Although EG is effective as a car and truck antifreeze, it is toxic to humans and animals if ingested. EG is metabolized to oxalic acid, which crystallizes in the kidney, causing death. There Is A Safer Alternative...

PG has received a "generally recognized as safe" designation from the Food and Drug Administration. PG has been used safely for many years as an ingredient in foods, cosmetics, and medicinal products. Pet and Animal Exposure Dogs and cats are naturally attracted to EG because of its sweet taste and smell, but EG-based antifreeze can be lethal to pets and other animals if ingested. . . . By contrast, PG is harmless. In fact, it is used as a moisturizing ingredient in many pet foods. EG also can be toxic to poultry. PG on the other hand is used in many animal feed formulations to keep the feed moist and palatable. Biodegradability PG does not persist in the environment. It is readily consumed by microorganisms. In an activated sludge treatment plant operating at 65 degrees Fahrenheit, PG is fully degraded within 24 hours. (Exhibit H, promotional material).

\hspace{0.5in} PAR. 6. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits A, B, D, E, F, G, and H, respondents have represented, directly or by implication, that:

\hspace{0.5in} a. Compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze, and other propylene glycol-based antifreezes, are safer for the environment generally; \hspace{0.5in} b. Sierra antifreeze, and other propylene glycol-based antifreezes, are absolutely safe for the environment after ordinary use; and \hspace{0.5in} c. Because Sierra antifreeze, and other propylene glycol-based antifreezes, are biodegradable, they are absolutely safe for the environment after ordinary use.

SAFE BRANDS CORPORATION, ET AL. 385

379 Complaint

PAR. 7. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits A, B, D, E, F, G, and H, respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraph six, respondents possessed and relied upon a reasonable basis that substantiated such representations. PAR. 8. In truth and in fact, at the time respondents made the representations set forth in paragraph six, while they possessed and relied upon a reasonable basis to substantiate that when compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze, and other propylene glycol antifreezes, are less toxic, and therefore safer for that part of the environment that is composed of humans, pets, and wildlife that may accidentally ingest it, respondents did not possess and rely upon a reasonable basis to substantiate that (a) compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze, or other propylene glycol-based antifreezes, are safer for the environment generally, e.g., the air, water, soil, plants, or aquatic life; or (b) Sierra antifreeze, or other propylene glycol-based antifreezes, are absolutely safe for the environment after ordinary use; or (c) because Sierra antifreeze, and other propylene glycol-based antifreezes, are biodegradable, they are absolutely safe for the environment after ordinary use. One reason for this is that used antifreeze, whether ethylene glycol-based or propylene glycol-based, may contain lead and/or other substances that are hazardous to the environment. Therefore, the representation set forth in paragraph seven was, and is, false and misleading. PAR. 9. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits A through H, respondents have represented, directly or by implication, that:

a. Sierra antifreeze, and other propylene glycol-based antifreezes, are absolutely safe for people and pets; and b. Because Sierra antifreeze, and other propylene glycol-based antifreezes, contain the same ingredient designated by the FDA as "generally recognized as safe" and found in foods, drugs, cosmetics, and pet foods, they are absolutely safe for people and pets.

Complaint 121 F.T.C.

PAR. 10. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits A through H, respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraph nine, respondents possessed and relied upon a reasonable basis that substantiated such representations.

PAR. 11. In truth and in fact, at the time respondents made the representations set forth in paragraph nine, while they possessed and relied upon a reasonable basis to substantiate that when compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze, and other propylene glycol-based antifreezes, are less toxic and therefore safer for people and pets if accidentally ingested, respondents did not possess and rely upon a reasonable basis to substantiate that Sierra antifreeze, or other propylene glycol-based antifreezes are absolutely safe for people and pets. Therefore, the representation set forth in paragraph ten was, and is, false and misleading.

PAR. 12. Through the use of the statements contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits D, F, and G, respondents have represented, directly or by implication, that compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze provides superior automotive protection from freezing temperatures, boil-overs, and corrosion.

PAR. 13. Through the use of the statements contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits D, F, and G, respondents have represented, directly or by implication, that at the time they made the representation set forth in paragraph twelve, respondents possessed and relied upon a reasonable basis that substantiated such representation.

PAR. 14. In truth and in fact, at the time they made the representation set forth in paragraph twelve, respondents did not possess and rely upon a reasonable basis that substantiated that when compared to conventional, ethylene glycol-based antifreeze, Sierra antifreeze provides superior automotive protection from freezing temperatures, boil-overs, and corrosion. Therefore, the representation set forth in paragraph thirteen was, and is, false and misleading.

PAR. 15. Through the use of the statements contained in the advertisements referred to in paragraph five, including but not

SAFE BRANDS CORPORATION, ET AL. 387

379 Complaint

necessarily limited to the advertisement attached as Exhibit E, respondents have represented, directly or by implication, that Sierra antifreeze is recyclable.

PAR. 16. In truth and in fact, while Sierra antifreeze is capable of being recycled, the vast majority of consumers cannot recycle it because there are few collection facilities nationwide that will accept propylene glycol-based antifreeze for recycling. Therefore, the representation set forth in paragraph fifteen was, and is, false and misleading.

PAR. 17. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits D and E, respondents have represented, directly or by implication, that the container in which Sierra antifreeze is sold is recyclable.

PAR. 18. In truth and in fact, while the plastic container in which Sierra antifreeze is sold is capable of being recycled, the vast majority of consumers cannot recycle it because there are few collection facilities nationwide that will accept high-density polyethylene plastic antifreeze containers for recycling. Therefore, the representation set forth in paragraph seventeen was, and is, false and misleading.

PAR. 19. Through the use of the statements and depictions contained in the advertisements referred to in paragraph five, including but not necessarily limited to the advertisements attached as Exhibits D and E respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraphs fifteen and seventeen, respondents possessed and relied upon a reasonable basis that substantiated such representations. PAR. 20. In truth and in fact, at the time they made the representations set forth in paragraphs fifteen and seventeen, respondents did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in paragraph nineteen was, and is, false and misleading. PAR. 21. The acts and practices of respondents as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

Commissioner Starek recused.

Complaint 121 F.T.C.

EXHIBIT A

RADIO TV REPORTS 41 East 42nd Street, New York, N.Y. 10017 (212) 309-1500

PRODUCT SIERRA ANT-FREEZE TITLE "ENVIRONMENTALLY SAFE"

PROGRAM NOTRE DAME FOOTBALL STATION NBC

DATE 10-18-87 TIME 2:20 NEW YORK 1:30PM

[MUSIC] 1st MAN: If you care about this big beautiful world show me.

WOMAN: Don't give me another toxic antifreeze. 2nd MAN: Give me something

different.

3rd MAN: Don't just tell me how it changes to severity below WOMAN: And guards against rust.

[MUSIC]

2nd MAN: Any antifreeze can do that.

1st MAN: Tell me it's safer for

my dog, my family. The kids. WOMAN: Tell me nothing protects better.

1st MAN: And it's biodegradable.

WOMAN: That's what I want to know. 2nd MAN: That's what I want to hear.

MALE ANNOUNCER: New Sierra. It's not just antifreeze.

It's safety freeze. [MUSIC OUT]

Exhibit A

ALSO AVAILABLE IN COLOR VIDEO-TAPE CASSETTE Radio TV Reports, Inc. 41 East 42nd Street, New York, N.Y. 10017 (212) 309-1500

SAFE BRANDS CORPORATION, ET AL. 389 379 Complaint

EXHIBIT B

RADIO TV REPORTS 41 East 42nd Street, New York, N.Y. 10017 212-697-4400

MUSIC MAN: They care about the world these days

They just don't want me to put another toxic antifreeze

in their car.

I mean, who needs toxic?

So what if it protects to 70 below, any antifreeze can do that.

Tell me that it's different, safer.

Tell me nothing better

and if it's biodegradable

I mean, what if their dog gets into it,

or their kids? This is serious.

It's a changing world. Poison's out.

SERA: You see, it's not just antifreeze.

it's safety, freeze. MUSIC OUT.

Exhibit B

ALSO AVAILABLE IN COLOR VIDEO-TAPE CASSETTE SERIAL NO. 02145-2 EXHIBIT NO. 02145-2 DATE 2/28/89 TIME 12:03 SUPERVISING ATTORNEY: [illegible]

Complaint 121 F.T.C.

EXHIBIT C

RADIO TV REPORTS 41 East 42nd Street, New York, NY 10017 (212) 309-1400

PRODUCT SIERRA ANTIFREEZE 94-12750 El TITLE "PEOPLE CARE THESE DAYS"

PROGRAM NOTRE DAME FOOTBALL 9/24/94 30 STATION NBC (NEW YORK) 1:10PM REVISION OF COMMERCIAL 93-10449

[MUSIC]

LARRY: People care these days.

They just don't want me to put another toxic antifreeze in their car

I mean, who needs something that toxic?

So what if it protects to 70 below?

Any antifreeze can do that.

Save me something different.

Something safer that's essentially non-toxic.

I mean, what if their dog gets into it?

Or their kids?

this is serious.

ANNO: Sierra. It's not just antifreeze.

It's safety freeze. [MUSIC OUT]

Exhibit C

ALSO AVAILABLE IN COLOR VIDEO-TAPE CASSETTE

SAFE BRANDS CORPORATION, ET AL.

Complaint EXHIBIT D.1

SIERRA Antifreeze · Coolant

ENVIRONMENTALLY SAFER ▲ Essentially Non Toxic ▲ Safer For People & Pets ▲ Superior Engine Protection

BIODEGRADABLE

Exhibit D.1.

Complaint 121 F.T.C.

EXHIBIT D.2

1256 10 10

THE ULTIMATE IN AUTOMOTIVE PROTECTION AND ENVIRONMENTAL SAFETY ULTIMATE AUTOMOTIVE PROTECTION:

SIERRA protects cars from freeze-ups during the harshest winter conditions and from boil-overs in extreme summer temperatures. SIERRA has passed the industry's most demanding corrosion tests including those of ASTM D 1384 and General Motors Specification GM 1899M.

• Protects against freeze-ups.

• Protects against boil-overs.

• Prevents corrosion of all engine metals.

ESSENTIALLY NON-TOXIC ENVIRONMENTALLY SAFER SIERRA is essentially non-toxic formula guards against poisoning of children and pets. All other leading brands of antifreeze contain ethylene glycol which is highly toxic.

SIERRA is naturally biodegradable and is converted to harmless components in activated treatment systems.

INSTALLATION DIRECTIONS:

1. Drain out old antifreeze.

2. Thoroughly flush cooling system with water. 3. Inspect cooling system. Tighten clamps and replace hoses if necessary.

4. Install SIERRA using a 50/50 mix with water for a freezing point of -27°F (-32°C). Consult the SIERRA protection chart for other desired freeze point protection.

5. SIERRA is compatible with leading brands of conventional antifreeze. However, mixing SIERRA with conventional antifreeze will diminish the toxicity and performance advantages of SIERRA. 6. Used antifreeze frequently contains toxic metallic compounds which leach out of cooling systems and can be hazardous to the environment. For information regarding the proper disposal of used antifreeze contact your local waste disposal or environmental control authorities or contact SafeBrands.

SIERRA PROTECTION CHART | Sierra | Water | Protects against freeze-ups | Protects against boil-overs | | :---: | :---: | :---: | :---: | | 50% | 50% | -27°F | 258°F* | | 60% | 40% | -54°F | 261°F* | | 67% | 33% | -75°F | 265°F* | *14 psi radiator cap

TESTING SIERRA COOLANT:

Sierra freeze point protection should be accurately measured with conventional antifreeze tester. Special testers are available from SafeBrands. If you would like to order SIERRA testers, or if you have other questions about SIERRA, contact SafeBrands, P.O. Box 3007, Omaha, NE 68103. phone 800-729-7234.

SIERRA contains propylene glycol and although it is not toxic, it should not be taken internally. The Consumer Product Safety Commission at its CPSC 3030-84-10E has ruled that animal consumption and should be kept out of reach of children.

[Recycle logo with text "Recyclable Plastic Container"]

Distributed by SafeBrands Corporation P.O. Box 3007 Omaha, NE 68103 Part No.

Exhibit D.2.

SAFE BRANDS CORPORATION, ET AL.

Complaint EXHIBIT E.1

6 YEAR · 60,000 MILE Newer Car Cooling System · Limited WARRANTY SEE BACK PAGE

SIERRA® Antifreeze · Coolant

SAFER PROTECTION ▲ Essentially Non Toxic To People & Pets ▲ Helps Protect Wildlife In The Environment ▲ Outstanding Engine Protection

SAFETY FREEZE™

Exhibit E.1.

Complaint 121 F.T.C.

EXHIBIT E.2

SAFER AND PHOSPHATE FREE - SIERRA PROTECTS YOUR FAMILY AND YOUR CAR COOLING SYSTEM BENEFITS In addition to quality freeze up and boil over protection, SIERRA contains no phosphates and provides outstanding cooling system corrosion protection. SIERRA passes the ASTM D 5216 tests for propylene glycol coolants and meets performance requirements of ASTM D 3306. SIERRA meets many important car and light truck manufacturers' requirements including the Ford Dynamometer BL2-2 test and ASTM D 2847, D 2570, D 2809 and D 4340 tests specified in GM and Ford owner's manuals. Unlike conventional antifreeze, SIERRA's phosphate free formula prevents corrosion better.

ENVIRONMENTAL BENEFITS • Toxicity — Because it is essentially non-toxic, SIERRA is safer for people, pets and wildlife in the environment than other leading brands. Many poisonings of animals are caused by their drinking conventional antifreeze that has spilled or leaked from cars. SIERRA greatly reduces this risk. • Biodegradability — SIERRA biodegrades readily in the natural environment and in activated sewage treatment systems as may other brands. All antifreeze can become contaminated with trace amounts of lead or other metals and should be disposed of properly and in accordance with the law. If disposed of properly, SIERRA is far less harmful to the environment than conventional antifreeze. • Recyclability — Used SIERRA can be mixed with conventional antifreeze in collection systems and recycling processes. This SIERRA container contains at least 25% recycled material and is recyclable. Recycling may not be available in all areas.

INSTALLATION Treat SIERRA like any antifreeze. . . . . Carefully note the following: SIERRA is compatible with conventional antifreeze; its safety benefit is eliminated if mixed, so thoroughly flush and drain a cooling system with water. Follow the drain from a cooling system, check car owners manual for system capacity to determine the proper amount of SIERRA to install to achieve desired protection.

| SIERRA | Water | Freezing point down to | Boiling point up to* | | :---: | :---: | :---: | :---: | | 50% | 50% | -26°F | 265°F | | 60% | 40% | -45°F | 270°F | | 67% | 33% | -75°F | 287°F |

*15 psi radiator cap

To maintain optimum corrosion protection, replace SIERRA annually.

TESTING SIERRA COOLANT SIERRA freeze point protection can be measured with conventional antifreeze testers. SIERRA testers are available from SIERRA retailers or may be purchased from Safe Brands at the address below.

CALIFORNIA INFORMATION SIERRA contains propylene glycol and although it is not "toxic" as defined by regulations of the Consumer Product Safety Commission, SIERRA is NOT INTENDED FOR HUMAN OR ANIMAL CONSUMPTION.

KEEP OUT OF REACH OF CHILDREN.

Part No. 091 Do not reuse an open or unlabeled container.

[The following text is printed vertically alongside a barcode] 0 76167 91001 0

Safe Brands Corporation P.O. Box 3007 Omaha, NE 68103 800-289-7234

Exhibit E.2.

SAFE BRANDS CORPORATION, ET AL. 395 Complaint EXHIBIT F

SIERRA Antifreeze THE SAFER ONE

Safety & Environmental Advantages

ANTIFREEZE — A TOXIC PROBLEM Millions of gallons of antifreeze containing ethylene glycol are sold and used in the United States. This product is a severe health hazard and has caused many deaths. Because it is colorless, odorless and has a sweet taste, it is readily consumed by children and household pets. In 1989, the American Association of Poison Control Centers reported 3,200 accidental antifreeze ingestions and 1,100 animal poisonings. The majority of these exposures occurred in children under the age of six. As little as two tablespoons can be fatal to a small child. For pets, even smaller amounts can be lethal. It has been estimated that 10,000 to 90,000 animals are poisoned each year by ingesting antifreeze solutions. In addition, antifreeze is a major source of water pollution. Each year, do-it-yourselfers change 150 million gallons of antifreeze, most of which is improperly disposed of down drains, in gutters, or in storm sewers. This is equivalent to 20 million gallons of ethylene glycol entering the environment. It is estimated that 40% of the antifreeze sold in the United States is disposed of in this manner. Ethylene glycol is a serious groundwater contaminant. A single quart of ethylene glycol can contaminate 1 million gallons of water. It is biodegradable and can deplete the oxygen in water, killing fish and other aquatic life.

SIERRA ANTIFREEZE — A SAFER PRODUCT Sierra antifreeze is a propylene glycol-based antifreeze. Propylene glycol is nontoxic. It is used as a food additive and in cosmetics and pharmaceuticals. It is not a threat to children, pets or wildlife. Sierra antifreeze is readily biodegradable. It can be disposed of in ordinary sewers. It is not a groundwater contaminant. Sierra antifreeze is made from propylene glycol, a by-product of natural gas production, not from ethylene glycol, which is made from natural gas and petroleum. The use of Sierra antifreeze can reduce the consumption of nonrenewable resources.

SIERRA ANTIFREEZE — PERFORMANCE Sierra antifreeze provides protection against freezing, boil-over, rust and corrosion. It is formulated to meet the performance requirements of the major automobile manufacturers and is recommended for use in all automobiles and light trucks. It is compatible with all other antifreezes and can be mixed with them. It contains a special dye so that leaks can be detected. It is available in gallons and quarts.

SIERRA ANTIFREEZE IS MADE FROM PROPYLENE GLYCOL. IT IS NONTOXIC.

IT IS BIODEGRADABLE.

IT IS NOT A GROUNDWATER CONTAMINANT.

SIERRA THE SAFER ONE

Performance Advantages

LONG-LIFE COOLANT PERFORMANCE ADVANTAGES OF SIERRA

SIERRA WITH SILICATE Sierra antifreeze is a propylene glycol based formula containing a patented, heavy-duty inhibitor package. The inhibitor package provides excellent protection against rust and corrosion for all metals, including aluminum, and provides long-life performance. Sierra antifreeze has a reserve alkalinity of 5.0, which is significantly better than conventional antifreeze. The results of standard tests performed on Sierra antifreeze are shown below:

SIERRA'S LONG-LIFE PERFORMANCE Test | Sierra | Conventional ---|---|--- ASTM D 1384 | 0 | 0 ASTM D 2570 | 0 | 0 ASTM D 2809 | 0 | 0 ASTM D 4340 | 0 | 0

SIERRA'S HIGH-TEMPERATURE PERFORMANCE Sierra antifreeze provides excellent high-temperature protection. In tests performed by an independent laboratory, Sierra antifreeze was compared to a leading conventional antifreeze. The results showed that Sierra antifreeze provided significantly better protection against boil-over and deposit formation. The results of the Hot Tube Test are shown below:

SIERRA'S HOT TUBE TEST Test | Sierra | Conventional ---|---|--- 300°F | 10 | 4 350°F | 10 | 2 400°F | 10 | 1

Exhibit F

396 FEDERAL TRADE COMMISSION DECISIONS 121 F.T.C. Complaint EXHIBIT G Baby mag Benadryl cold ALPO Tylenol Zingers In addition to consumer safety, these trusted products have one thing in common . . .

Exhibit G

SAFE BRANDS CORPORATION, ET AL. 397 Complaint

EXHIBIT G

So does...

SIERRA Antifreeze/Coolant

ENVIRONMENTALLY SAFER • Safe For People & Pets • Essentially Non-Toxic • Superior Engine Protection • Phosphate Free Formula

1 GAL. 3.78L BIODEGRADABLE

It's Not Just Antifreeze.

It's Safety Freeze.

Exhibit G

Complaint EXHIBIT G

They all contain propylene glycol.

[illegible]

SAFE BRANDS CORPORATION, ET AL. 399

379 Complaint

EXHIBIT

**PG Antifreeze Safety and Environmental Advantages**

Although EG is effective as a car and truck antifreeze, it is toxic to humans and animals if ingested. EG is metabolized to oxalic acid, which crystallizes in the kidney, causing death.

**There Is A Safer Alternative...** PG has received a "generally recognized as safe" designation from the Food and Drug Administration. PG has been used safely for many years as an ingredient in foods, cosmetics, and medicinal products.

The United States Occupational Safety and Health Administration (OSHA) has established an exposure limit of 50 parts per million (ppm) for EG. OSHA has not found it necessary to set an exposure limit for PG because of PG's inherent low toxicity.

Concern over the handling of EG has led to the search for alternatives. Bus maintenance workers in the city of Copenhagen, Denmark, for example, have refused to

handle EG-based antifreeze due to health and safety concerns. As a result, Copenhagen has switched to the safer PG antifreeze.

**Pet and Animal Exposure** Dogs and cats are naturally attracted to EG because of its sweet taste and smell, but EG-based antifreeze can be lethal to pets and other animals if ingested. The Colorado State University Veterinary Hospital reported that more than 50 percent of all poisoning deaths of dogs and cats were linked to EG. By contrast, PG is harmless. In fact, it is used as a moisturizing ingredient in many pet foods.

EG also can be toxic to poultry. PG, on the other hand, is used in many animal feed formulations to keep the feed moist and palatable.

**Biodegradability** PG does not persist in the environment. It is readily consumed by microorganisms. In an activated sludge treatment plant operating at 67 degrees Fahrenheit, PG is fully degraded within 24 hours.

**Recyclability** As with all spent engine coolants, PG antifreeze should be disposed of properly or recycled after use. Although both antifreeze can be used effectively to dispose of spent coolants, many firms are moving to recycling PG antifreeze is fully recyclable and ARCO Chemical is working through the ASTM to develop specifications for recycled antifreeze.

For more information please call our toll free number: 1 800 321 7000.

Exhibit II

Decision and Order 121 F.T.C.

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 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 respondents with violation 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 complaint, a statement that the signing of the 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, or that the facts as alleged in such complaint, other than jurisdictional facts, are true 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 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, and having duly considered the comments filed thereafter by interested persons pursuant to Section 2.34 of its Rules, and having modified the order in one respect, 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 Safe Brands Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska. It is a wholly-owned subsidiary of respondent Warren Distribution, Inc. Respondent Warren Distribution, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska. Respondents Safe Brands Corporation and Warren Distribution, Inc. have their principal offices or places of business at 727 South 13th Street, Omaha, Nebraska.

SAFE BRANDS CORPORATION, ET AL. 401

379 Decision and Order

Respondent ARCO Chemical Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware with its principal office or place of business at 3801 West Chester Pike, Newtown Square, Pennsylvania. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER

DEFINITION

For purposes of this order, the following definition shall apply:

"Competent and reliable scientific evidence" means tests, analyses, research, studies or other evidence based on the expertise of professionals in the relevant area, that has been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.

I.

It is ordered, That respondents, Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO Chemical Company, a corporation, their successors and assigns, and their officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, promotion, offering for sale, sale, or distribution of any antifreeze, coolant, or deicer product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, in any manner, directly or by implication, that any such product will not harm the environment, is less harmful to the environment than other products, or offers any environmental benefit, unless at the time of making such representation, respondents possess and rely upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.

Decision and Order 121 F.T.C.

II.

It is further ordered, That respondents, Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO Chemical Company, a corporation, their successors and assigns, and their officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, promotion, offering for sale, sale, or distribution of any antifreeze, coolant, or deicer product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from making any representation, in any manner, directly or by implication, about the safety or relative safety of such product for humans or animals unless, at the time of making such representation, respondents possess and rely upon competent and reliable scientific evidence that substantiates such representation.

III.

It is further ordered, That respondents, Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO Chemical Company, a corporation, their successors and assigns, and their officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the labeling, offering for sale, sale, or distribution of any propylene glycol-based antifreeze or coolant product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, shall disclose on the front of the container of all such products the following:

"See Back Panel for CAUTIONARY INFORMATION"

and shall disclose on the back of the container of all such products the following:

"CAUTIONARY INFORMATION: This Product MAY BE HARMFUL IF SWALLOWED. STORE SAFELY AWAY FROM CHILDREN AND PETS. Do not store in open or unlabeled containers."

Each disclosure shall be in a conspicuous and prominent place on the container, in conspicuous and legible type in contrast by typography,

SAFE BRANDS CORPORATION, ET AL. 403

379 Decision and Order

layout, or color with all other printed material on the container. The disclosure on the back of the container shall be surrounded by a one (1) point rule. The disclosure on the front of the container and the first two sentences of the disclosure on the back of the container shall be in type at least as large as the largest print type on the back of the container, except for the brand name, but, in any case, no smaller than ten (10) point type. The words "CAUTIONARY INFORMATION" on the front and back of the container shall be in bold type. The last sentence of the disclosure on the back of the container shall be in type at least as large as the type in which the majority of the printed material on the back of the container is printed.

The back of the container shall also contain the following statement, printed in type at least as large as the type in which the majority of the printed material on the back of the container is printed:

"Clean up any leaks or spills."

IV.

It is further ordered, That respondents, Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO Chemical Company, a corporation, their successors and assigns, and their officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, promotion, offering for sale, sale, or distribution of any antifreeze, coolant, or deicer product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, in any manner, directly or by implication, the level of vehicular engine protection provided by any such product, unless at the time of making such representation, respondents possess and rely upon competent and reliable scientific evidence that substantiates such representation.

V.

It is further ordered, That respondents, Safe Brands Corporation, a corporation, Warren Distribution, Inc., a corporation, and ARCO

Decision and Order 121 F.T.C.

Chemical Company, a corporation, their successors and assigns, and their officers, representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, promotion, offering for sale, sale, or distribution of any antifreeze, coolant, or deicer product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, in any manner, directly or by implication, the extent to which:

A. Any such product or its package is capable of being recycled; or, B. Recycling collection programs for such product or its package are available.

VI.

It is further ordered, That the provisions of this order shall not apply to any label or labeling printed prior to the date of service of this order and shipped by respondents to distributors or retailers prior to one hundred (100) days after the date of service of this order.

VII.

It is further ordered, That for five (5) years after the last date of dissemination of any representation covered by this order, respondents, or their successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All materials that were relied upon in disseminating such representation; and B. All tests, reports, studies, surveys, demonstrations, or other evidence in their possession or control that contradict, qualify, or call into question such representation, or the basis relied upon for such representation, including complaints from consumers.

SAFE BRANDS CORPORATION, ET AL. 405

379 Decision and Order

VIII.

It is further ordered, That respondents shall distribute a copy of this order to each of their operating divisions and to each of their officers, agents, representatives, or employees engaged in the preparation and placement of advertisements, promotional materials, product labels or other such sales materials covered by this order.

IX.

It is further ordered, That respondents shall notify the Commission at least thirty (30) days prior to any proposed change in the corporations 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 corporations which may affect compliance obligations under this order.

X.

This order will terminate on March 26, 2016, or twenty years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:

A. Any paragraph in this order that terminates in less than twenty years; B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this paragraph.

Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this paragraph as though the complaint was never filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline

Decision and Order 121 F.T.C.

for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

XI.

It is further ordered, That respondents shall, within sixty (60) days after service of this order upon them, 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 they have complied with this order.

Commissioner Starek recused.

PRAXAIR, INC. 407

407 Complaint

IN THE MATTER OF

PRAXAIR, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 7 OF THE CLAYTON ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3648. Complaint, April 1, 1996--Decision, April 1, 1996

This consent order requires, among other things, Praxair, Inc., a Connecticut corporation, to divest, within 12 months to Commission-approved acquirers, four CBI atmospheric gases production plants, located in Vacaville and Irwindale, California; Bozrah, Connecticut; and Madison, Wisconsin. If the transaction is not completed in the prescribed time, a trustee may be appointed to divest the four plants.

Appearances

For the Commission: Ann B. Malester, James Holden and William Baer. For the respondent: Nathan Eimer, Sidley & Austin, Chicago, IL.

COMPLAINT

The Federal Trade Commission ("Commission"), having reason to believe that respondent, Praxair, Inc. ("Praxair"), a corporation subject to the jurisdiction of the Commission, has agreed to acquire all of the common shares of CBI Industries, Inc. ("CBI"), a corporation subject to the jurisdiction of the Commission, in violation of Section 5 of the Federal Trade Commission Act ("FTC Act"), as amended, 15 U.S.C. 45, and that such acquisition, if consummated would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. 18 and Section 5 of the FTC Act, as amended, 15 U.S.C. 45; and it appearing to the Commission that a proceeding in respect thereof would be in the public interest, hereby issues its complaint, stating its charges as follows:

I. RESPONDENT

1. Respondent Praxair is a corporation organized and existing under and by virtue of the laws of the United States, with its principal