Ford Motor Company

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IN THE MATIER OF FORD MOTOR COMPANY CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT . Docket C-3679. Complaint, August22, 1996--Decision, August 22, /996 This consent order prohibits, among other things, a Michigan-based automobile manufacturer from making any representation about the efficacy of any automotive cabin air filter in the reduction or removal of pollutants, unless such representations are true and the respondent possesses reliable and competent scientific evidence to substantiate such representations. Appearances For the Commission: Linda Badger and Jeffrey Klurfeld. For the respondent: Gerald Durcharme, in-house counsel, Dearborn, MI.

COMPLAINT The Federal Trade Commission, having reason to believe that Ford Motor Company ("respondent"), 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 Ford Motor Company is a Delaware corporation, with its offices and principal place of business located at The American Road, Dearborn, Michigan. . PAR. 2. Respondent has manufactured, advertised, offered for sale, sold, and distributed automobiles, automotive parts, and other products to consumers. Certain models of Ford automobiles, such as ~he Mercury Mystique and Lincoln Continental, include an automotive cabin air filter called the "MicronAir Filtration System." PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as. "commerce" is defined in Section 4 of the Federal Trade Commission Act. PAR. 4. Respondent has disseminated or has caused to be disseminated advertisements for the MicronAir Filtration System, Comptaint 122 F.T.C. including but not necessarily limited to the attached Exhibits A-C. These advertisements contain the following statements: A. "Eat No One's Dust.

All-New Mercury Mystique With Exclusive MicronAir Filter. Here, quite literally, is a breath of fresh air in automotive design. The new Mercury Mystique. The only car in its class with a MicronAir filter that removes virtually all dust, pollen and other impurities from the interior." (Exhibit A: print ad).

B. "MicronAir Filtration System screens out virtually all pollen, road dust and potentially harmful air pollutants before they enter the car. This means allergy sufferers, and anyone concerned with air pollution, can breathe easier." (Exhibit B: promotional mateii.al).

·. C. "Dear Mr. Sample, .Do you like clean air? Mystique's standard MicronAir Filtration System removes virtually all pollen, road dust and other pollutants from air entering the car. It's an especially nice feature if you happen to be bothered by allergies." ·(Exhibit C: promotional material). · . PAR. 5. Through the use of the statements contained in the advertisements referred to in paragraph four, including but not necessarily limited to the advertisements attached as Exhibits A-C, respondent has represented, directly or by implication, that the MicronAir Filtration System removes virtually all pollutants likely to be encountered by a driver.

PAR. 6. hi truth and in fact, the MicronAir Filtration System does not remove virtually all pollutants likely to be encountered by a driver. For example, the MicronAir Filtration System has no effect on gaseous pollutants, such as hydrocarbons, carbon monoxide, and nitrogen oxides. Therefore, the representation set foJ1h in paragraph five was, and is, false and misleading.

PAR. 7. ·Through the use of the statements contained in the advertisements referred to in paragraph four, including but not necessarily limited to the advertisements attached as Exhibits A-C, respondent has represented, directly or by implication, that at the time it made the representation set forth in paragraph five, respondent possessed and relied upon a reasonable basis that substantiated s~ch representation.

PAR. 8. ln truth and in fact, at the time it made the representation set forth in paragraph five, respondent did not possess and rely upon a reasonable basis that substantiated such representation. Therefore, the representation set forth in paragraph seven was, and is, false and · misleading.

FORD MOTOR COMPANY 71 69 Complaint PAR. 9. 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(a) of the Federal Trade Commission Act.

Complaint 122 F.T.C. EXHIBIT A No One's Dust Eat .AI}New Here, quire literally, is a breath of fresh air .1. VJ. y-? Mystique. The only car in its class with a Mercury}. A. J'C'n·que· in auto~ design. The new Mercury \\with Exclusive Micron Air filter that removes virtually Filte..,.. all~. pollen ani other irnpuritic:s from J.... the interior. Mi·cronAii• -The Micron Air filter is particularly useful should r~ ever find~ fallon-ing arother car on a dusty road.Then again, gM::n the performarw:e of MystiqueS available 24-valve Dur.ucx: V-6, such occasions could be rare. Ani with Duma:, Mystique is the only car in its class· that goes 100,000 miles~ scheduled nm:-ups.

1be Duratcc V-ti ani MicronAir filter are just t'MlofMystiquis 21 first-in-class inn.Jvati:ms. m11 also w things hh all-speed traction conacl, solar tint glass ani a remote~ sysrcnL' Drive the rw:w Mystique ani )0-111 sec why we feci it's more than just a rr:w car. It's a whole rw:w Mercury For tjl()('C infi:xmaoon, call l&Xl446-8888. ~MERCURY FORD MOTOR COMPANY I 73 69 Complaint EXHIBITB Complaint 122 F.T.C. EXHIBITC 0001/0001 Mr. John A. Sample 123 Main Street Anytown, US 12345-6789 Dear Mr. Sample, Every now and then an automobile like the all-~ew Mercury Mystique comes along that is so different, so comfortable and so much fun to drive, you just can't wait for the next excuse to get behind the wheel. · ·Right now, test drive a Mercury mystique and you'll receive a $50 U.S. Savings Bond! How's that for an excuse to drive? A $50 U.S. Savings Bond and the chance to put this terrific new sedan through its paces. We think you'll fmd a lot to like as you drive Mystique. It has 21 unique features never before offered by its major competitors. ... Do you like clean air? Mystique's ·standard MicronAir Filtration System removes virtually all pollen, road dust and other pollutants from air entering the car. It's an especially nice feature if you happen to be bothered by allergies. Speaking of being bothered, taking a car in for service probably isn't one of your top ten favorite things to do. That's why we've designed the standard Zetec DOHC 4-cylinder engine to go 60,000 miles before its first scheduled tune-up. Still too soon? The optional Duratec DOHC V-6 isn't scheduled for its first tune-up until 100,000 miles.

We even wanted to make driving in rain ·or snow more enjoyable. That's why Mystique is available with an Anti-lock Brake System (ABS) and All-Speed Traction Control which helps you keep from spinning your wheels on slippery surfaces.

Mystique has a few features we hope you'll never use. Like dual air bags and hightensile, boron-steel door beams which help Mystique meet all1997 federal safety standards, today.

So get behind the wheel of Mercury Mystique and see what·all the excitement is about. Remember to bring the certificate below to the dealership named when you take your test drive and you'll receive a $50 United States Savings Bond. One drive in Mystique and you'll understand-- it's a whole new Mercury. Sincerely, Keith C. Magee Vice President, General Manager Lincoln-Mercury Division Ford Motor Company . . P.S. A $50 U.S. Savings Bond is yours when you test drive a 1995 Mercury ystique, but only ifyou act soon. Offer expires January 31, 1995. _.,.Always wear your safety belt. MicronAir is a registered U.S. trademark of Freudenberg Nonwovens. 01100231 FORD MOTOR COMPANY 75 69 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 of complaint which the San Francisco Regional Office proposed to pres~nt 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 consenf order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of 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, 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 respondent has violated the said Act, and that a 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 comment filed thereafter by an interested person pursuant to Section 2.34 of its Rules, 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 fmdings and enters the following order:

1. Respondent Ford Motor Company, is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its offices a!!d principal place of business located at The American Road, in the City of Dearborn, State of Michigan.

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 122 F.T.C. ORDER I.

It is ordered, That respondent, Ford Motor Company, a corporation, its successors and assigns, and its officers, and respondent's agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection. with the labelling, advertising, promotion, offering for sale, sale or distribution of the "MicronAir Filtration System" as configured in the 1995 Lincoln Continental or 1995 Mercury Mystique or any substantially similar product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from making any representation, directly or by implication, that such product removes virtually all pollutants. For the purposes of this order, "substantially similar product" shall mean any automotive cabin air filter which is an electrostatic filter, consisting of layers of non-woven fabric, with at least one layer that has been electrically charged. II.

It is further ordered, That respondent, Ford Motor Company, a corporation, its successors and assigns, arid its officers, and respondent's agents, representatives . and · employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, labelling; advertising, promotion, offering for sale, sale or distribution of any automotive cabin air filter, 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 efficacy of any such product in reducing or removing pollutants, unless such representation is true, and at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence, that substantiates such representation. For purposes of this order, "competent and reliable scientific evidence" sh~ll mean tests, analyses, research, studies or other evidence based on the expertise of professionals in the relevant area, that has been conc_l~cted and evaluated in an objective manner FORD MOTOR COMPANY 77 69 Decision and Order by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results. III.

It is further ordered, That for three (3) years after the last date of dissemination of any. representation covered by this order, respondent, or its 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 its possession or control that contradict, qualify, or call into question such representation, or the basis relied upon for such representation, including written complaints from consumers. IV.

It is further ordered, That respondent notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent 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 ari~ing out of the order. v.

It is further ordered, That respondent shall, within ten (1 0) days from the date of service of this order upon it, distribute a copy of this order to each of its officers, agents, representatives or employees engaged in the preparation, review or placement of advertising_or other materials covered by this order. .._ VI.

It is further ordered, That this order will terminate on August 22, 2016, or twenty years from the most re~~nt date that the United States or the Federal Trade Commission files a complaint (with or without Decision and Order 122 F.T.C. 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 part~_graph 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 for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

VII.

It is further ordered, That respondent shall, within sixty (60) days from the date of 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.

YOUNG & RUBICAM INC. 79 79 Complaint