Long Fence & Home, LLLP

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IN THE MATTER OF LONG FENCE & HOME, LLLP CONSENT ORDER, ETC. IN REGARD TO ALLEGED VIOLATIONS OF SECTION 5 OF THE FEDERAL TRADE COMMISSION ACT Docket No. C-4352; File No. 112 3005 Complaint, April 5, 2012 – Decision, April 5, 2012 This consent order addresses Long Fence & Home, LLLP’s marketing and sale of replacement windows for use in residences. The complaint alleges that respondent did not possess and rely upon a reasonable basis substantiating the representations that consumers who replace their windows with Long Windows’ Quantum2 replacement windows with SuperPak Glass are likely to achieve residential energy savings of 50% or save 50% on residential heating and cooling costs. The consent order prohibits respondent from making any representation that: (A) consumers who replace their windows with respondent’s windows achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; or (B) respondent guarantees or pledges that consumers who replace their windows with respondent’s windows will achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; unless the representation is non-misleading and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence to substantiate that all or almost all consumers are likely to receive the maximum represented savings or reduction. Participants For the Commission: Robert Frisby, Zachary Hunter, Joshua Millard, and Sarah Waldrop.

For the Respondent: D.S. Berenson, Johanson Berenson LLP. COMPLAINT The Federal Trade Commission, having reason to believe that Long Fence & Home, LLLP (“respondent”) has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Long Fence is a Maryland limited liability limited partnership with its principal office or place of business at 10236 Southard Drive, Beltsville, Maryland 20705. Respondent VOLUME 153 Complaint does business under its own name and various trade names bearing the “Long” mark, including “Long Windows.” 2. Respondent advertises, offers for sale, sells, and/or distributes windows, including its “Long Windows” replacement window lines manufactured by Serious Energy, Inc., which formerly did business under the name Serious Materials, Inc. Respondent sells these windows through its own salespersons to consumers for residential use.

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. 4. Respondent has disseminated or has caused the dissemination of advertising and promotional materials, including print advertising, advertising on its website, and brochures and other promotional materials provided to its salespersons, including but not necessarily limited to the attached Exhibits A through F. Respondent disseminated or caused the dissemination of these advertisements and promotional materials to consumers. The advertisements and promotional materials contain the following statements or depictions:

a. Long Windows Print Advertisement 50% SAVINGS GUARANTEED PLEASE READ! Our energy use dropped so much after installing your windows — Dominion Virginia Power thought our meter was broken! We look forward to using Long Fence and Home for many years to come! Derek and Jennifer H.

Springfield, Virginia Exhibit A (Jan. 2010) (Washington Post, Red Plum). LONG FENCE & HOME, LLLP 641 Complaint b. Long Windows Print Advertisement 50% ENERGY SAVINGS GUARANTEED* AMAZING RESULTS! Our energy use dropped so much after installing your windows — Dominion Virginia Power thought our meter was broken! We look forward to using Long Fence and Home for many years to come! Derek and Jennifer H.

Springfield, Virginia . . . .

* 50% Energy Savings based on manufacturer’s one year savings guarantee. Many factors determine actual savings and results may vary. Call for further details on our written savings guarantee.

Exhibit B (Jan.-Nov. 2010) (Washington Post, Red Plum, Examiner). c. Long Windows Print Advertisement _ Save 50% on Energy Bills – or LONG® PAYS YOU! Exhibit C (Mar.-June 2009) (Washington Post, Red Plum, Examiner, Merchandiser).

VOLUME 153 Complaint d. Long Windows Print Advertisement will save you more than other replacement windows.

Save More Money and Energy . . . .

 50% energy savings guarantee Exhibit D (Sept. 2009) (Washington Post, Red Plum, Examiner, Merchandiser).

e. Long Windows Internet Promotional Material 50% We guarantee you'll save 50% on your heating and cooling costs - and SAVINGS cut your energy bills in half - when you install Long Windows GUARANTEE throughout your home or we’ll reimburse you the difference.[ ] Speak to your Long Windows consultant for full details.

Exhibit E (Sept. 2010) (http://www.longwindows.com).

f. Long Windows Energy Saving Pledge: 50% Energy Savings Guarantee This pledges a savings of at least 50% of energy consumption for heating and cooling the residence listed below during the 12 month period beginning with the date of this pledge. In the event energy saving[s] are less than 50% of the previous 12 months[’] energy consumption, the homeowner should LONG FENCE & HOME, LLLP 643 Complaint notify Long Fence and Home who will provide the homeowner with the necessary forms to file for benefits under this pledge. If energy savings are less than 50% of the previous 12 month[s’] energy consumption, the homeowner will be reimbursed the difference between the actual savings and 50% of the energy costs for the previous 12 months. Notwithstanding anything herein to the contrary, it is hereby agreed and understood that this pledge only be effective if the homeowner, located at the address shown hereon, has purchased a complete installation of Quantum2 replacement windows with SuperPak Glass glazing, and is effective on the dates shown. . . . .

Exhibit F.

5. Many factors determine the savings homeowners can realize by replacing their windows, including the home’s geographic location, size, insulation package, and existing windows. Consumers who replace single or double-paned wood or vinyl-framed windows – common residential window types in the United States – with Long Windows replacement windows are not likely to achieve a 50% reduction in residential energy consumption or heating and cooling costs. 6. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that: a. Consumers who replace windows with Quantum2 replacement windows with SuperPak Glass are likely to achieve residential energy savings of 50%; or b. Consumers who replace windows with Quantum2 replacement windows with SuperPak Glass are likely to save 50% on residential heating and cooling costs. 7. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the VOLUME 153 Complaint representation(s) set forth in Paragraph 6 at the time that the representation(s) were made.

8. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representation(s) set forth in Paragraph 6 at the time that the representation(s) were made. Therefore, the representation set forth in Paragraph 7 was false or misleading.

9. Respondent’s practices, 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.

THEREFORE, the Federal Trade Commission, this fifth day of April 2012, has issued this complaint against respondent. By the Commission.

LONG FENCE & HOME, LLLP 645 | a LONG bed SAVINGS GUARANTEED Tawer i bok forward, to using Long Fence ad Howe for van yrs to coe! Dertk and. Jowsfer H.

Complaint Exhibit A LONG SIDING LIFETIME WARRANTY & ENERGY: a LONG ATTIC MIRROR \\\ DOUBLE \ PANE PERFORMANCE + Q-Foam® insulation Es. —— + Heat Mirror™ Technology + 5 Coats Low-e® 51500 dos CALL NOW! 1-800-637-9014 FREE ESTIMATES www.longfenceandhome.com ! Improve your home. Improve your life. AffordableFinancing os = Licensed + Bonded + insured MHICE 51346 + DC# 6700678 - VAS 27050481838 VOLUME 153 Complaint Exhibit B LONG FENCE & HOME, LLLP 647 Complaint Exhibit C Receive °1500 Tax Credit from the Federal Government! 7 Save 50% on Energy Bills - or NG® PAYS YOU! NEWS)1) Lo ng® Windows will MATCH Your af TAX CREDIT! ) FREE Estimates! Call Now! 1-800-637-9014 www.longwWindows.com MIC #51246 DCE G70067B-VAB Z70soastEAA —) ‘sicerees=( Eas Cond * Minimum purchase 6 windows. Cannot be combined with other offers. VOLUME 153 Complaint Exhibit D and Home LONG FENCE & HOME, LLLP Complaint Exhibit E HOME | CONTACT US | ABOUTUS | OUR BLOG | POT gS tor hs Improve your home. Improve your 1-800-417-LONG (5664) SS | 527 LONG WINDOWS | |LON! HENS | |LONG SIDING} | LONG GUTTERS | |LONG Doors | (LONG ATTIC MIRROR} | LONG INSULATIO! LONG Winpows - Comparison Chart - Energy Savings - Noise Reduction and UV Protection From supplying green fo reducing energy us Long ‘Windows are good for our antire planet Let President Obama fil you in 30% FEDERAL TAX CREDIT =|$1,500 > |PER HOUSEHOLD we ener OMG WRNOOWS eT LEARN MORE LOOKING FOR PAYMENT OPTIONS? Long Fence and Home has partnered with Landmark Funding to provide financing to our clants. Learn More _ on.

“ —y ci “Excellent Job! Wil refer you to friends and neighbors! * ENERGY SAVINGS Engineered and Built for Maximum Energy Savings Long Windows combine an enhanced Insulated glass package with O share EO.

Two Panes of Double REQUEST A FREE NO OBLIGATION IN-HOME fully-nsufated framing systems to achieve the highest nsufation Strength Glass CONSULTATION performance across the full-trame - not just measured at center of Five Layers of SEStIMaAIE ~ giass. High Performance Low-E Coating Most homeowners fing that Long Windows pay for themsetves within 10 years of installation. Use the Energy Cost Savings Calculator below to see what kind of cost savings Long Windows can bring to you. ‘ ENERGY COST SAVINGS CALCULATOR Enter your average monthly energy bill: $ | CALCLAATE SAWINGS | Annual Energy Cost $0.00 Estimated Savings After 5 $0.00 Years Estimated Annual $0.00 Estimated Savings After 10 $0.00 Savings Years We guarantee your save 50% on your heating and cooling costs - and cut your energy bits in hait- when you Install Long Windows Proughout your home or wet reimburse you the difference." Speak to your Long Windows consultant for full detsts. Saunas ‘There are a number of ways to scientitcally measure the energy-eMiciency of windows. Long Windows are one of the most energy-efficient windows you can purchase, by any of these measures. R Value A key factor of energy-eMiciency is R value, which measures the thermal Insulation capabllty of 2 window. The higher the R value, the better the window Insutates to keep your home coo! In the summer and warm in the winter.

Long Windows nave Industryieading R values of 4.0 to 6.25. These are significanty higher than the R values for typical single- or double-pane windows ~ 50 advanced that they exceed Energy Star oteria for year 2015.

=| CA —s at Te U-Factor Another factor In energy-eMiciency Is the U-Factor, which measures how well the product traps heat Inside your home. In this case, the lower the value fe greater tne energyefficiency of your window.

Long Windows nave an industry-leading U-Factor of 0.16. ‘This surpasses the 2009 Energy Star Standards, which recognize a U-Factor of 0.35 as acceptable. ‘The guidelines for the Federal Tax Credit require that your windows camry a U-Factor of 0.30 or less. All Long Windows quality; many Energy Star windows do not. Solar Heat Gain Coeffcient (SHGC) CUGKTOENLAROE CLICK TORMLARGE SCHEDULE NOW OR CALL 1-800-417-LONG elena waareo HME ‘yall wid) ary Cteoe ettors or Secours Sarre cxchuu one appt Spent tm your Long Window careuitent 19 |0arn wore OWS 1-800-417-LONG (5664) | Pcrcn tls highly untkely that any defects in materia! and wortmanshpp wil arise In the future; however, Ifa defect does occur, the Gefectve part wil De repaired or replaces by Long Fence and Home. We stand behing all the work we do.

Palla John OoPaola Presient VOLUME 153 Complaint GUEK TORNLAROE ‘Yet another factor in energy-eMiciency is the SHGC, which Rag” On Serorne Perk, measures how well the window’ blocks solar heat coming Inside the nous. Again, the lower the value the greater the energy-eMiciency of your window.

Long Windows have an Industry-leading SHGC of 0.20. This surpasses Me 2009 Energy Star Standards, which recognize 3 SHGC of 0.32 as acceptable.

‘The guidelines for the Federal Tax Credit require that your windows camy a SHGC of 0.30 or less. All Long Windows qualty; many Energy Star windows do not. UV Transmission A final factor in energy-eficiency Is the transmission of UV light. Long Windows utiize Heat Mirror™ Technotogy, recognized In Popular Science magazhne as one of the top 100 Inventions of the last 1,000 years. Long Windows with Heat Miror™ Technology only allow 0.3% of damaging UV rays Into your home. Other windows on the market today allow roughly 50% of damaging UV rays Into your home.

‘The difference Is clear If you look at heat mapping photos of Long Windows versus competitors.

cucKTOEMARGe Or the color ba (show, ww imdocnes obo agg deguee af coor wih at socom enter mauanlag a 1Odepwe dap fe emperirane Bee cots com tab she inftonad pers she ABwane mesrmacted seems phy Old Window Average Replacement — i nnoow Long* Window Request a free, no obligation in-home consultation and estimate today or call us at 1-800-417-LONG (5664).

WINDOWS KITCHENS SIDING GUTTERS DOORS ‘SITE MAP ATTIC MIRROR INSULATION ENERGY SOLUTIONS ABOUT CONTACT PRIVACY ESTIMATE Re Long Fence and Home Is 8 home Improvement and remodeling company serving clents in Maryand, Virginia and Washington, DC. Contact us for a free estmate on your home Improvement ar remodeling project. Other areas we service Long Fence and Home + 10236 Southard Drive + Beltsville, MD 20705 + 1-800-417-LONG (5664) © 2010 Long Fence and Home:

This pledges a savings of at least 50% of energy consumption for heatmg and cooling the residence listed below during the 12 month period beginning with the date of this pledge. In the event energy saving are less than 50% of the previous 12 months energy consumption, the homeowner should notify Long Fence and Home who will provide the homeowner with the necessary forms to file for benefits under this pledge. If energy savings are less than 50% of the previous 12 month energy consumption, the homeowner will be rembursed the difference between the actual savings and 50% of the energy costs for the previous 12 months. Notwithstanding anything herem to the contrary, it is hereby agreed and understood that this pledge only be effective uf the homeowner, located at the address shown hereon, has purchased a complete installation of Quantum? replacement windows with SuperPak Glass” glazing, and is effective on the LONG FENCE & HOME, LLLP Complaint Exhibit F LONG WINDOWS 50% Energy Savings Guarantee dates shown.

THIS PLEDGE IS BASED UPON CONSUMPTION, NOT COST. IT IS SUBJECT TO THE FOLLOWING PROVISIONS:

1.

ta Homeowner Name:

Homeowner Address:

City:

This pledge only covers Quantum? Teplacement windows with SuperPak Glass™ glazing.

. Complete installation of Quantum? teplacement windows with SuperPak Glass™ glazing is defined as all windows in this residence except attic, basement, and porches.

. This pledge covers only single family dwellings and townhomes.

. Maximum payment under this pledge is $500.00 5. Clams under this pledge must be filed In whiting with supporting evidence within 30 days of 1" anniversary.

6. Homeowners must properly maintain heating and cooling systems.

7. Proper allowance shall be made for cost of operation of any utilities included m energy bill m adjusting a claim.

8. Proper allowance for abnonmal weather conditions shall be made in adjusting a claim.

State:

Zip:

Date of Installation:

Long CID Response 1.1 Presentation ‘COMPLAINT EXHIBIT F VOLUME 153 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 a Complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued, would charge the respondent with violation of the Federal Trade Commission Act; and The respondent 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 the agreement is for settlement purposes only and does not constitute an admission by the respondent that the law has been violated as alleged in such complaint, or that any of 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 Federal Trade Commission 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 thirty (30) days for the receipt and consideration of public comments, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, 16 C.F.R. § 2.34, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Long Fence & Home, LLLP (“LF&H”) is a Maryland limited liability limited partnership with its principal office or place of business at 10236 Southard Drive, Beltsville, Maryland 20705.

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. LONG FENCE & HOME, LLLP 653 Decision and Order ORDER DEFINITIONS For purposes of this order, the following definitions shall apply:

A. “Clearly and prominently” means 1. In print communications, the disclosure shall be presented in a manner that stands out from the accompanying text, so that it is sufficiently prominent, because of its type size, contrast, location, or other characteristics, for an ordinary consumer to notice, read and comprehend it; 2. In communications made through an electronic medium (such as television, video, radio, and interactive media such as the Internet, online services, and software), the disclosure shall be presented simultaneously in both the audio and visual portions of the communication. In any communication presented solely through visual or audio means, the disclosure shall be made through the same means through which the communication is presented. In any communication disseminated by means of an interactive electronic medium such as software, the Internet, or online services, the disclosure must be unavoidable. Any audio disclosure shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. Any visual disclosure shall be presented in a manner that stands out in the context in which it is presented, so that it is sufficiently prominent, due to its size and shade, contrast to the background against which it appears, the length of time it appears on the screen, and its location, for an ordinary consumer to notice, read and comprehend it; and 3. Regardless of the medium used to disseminate it, the disclosure shall be in understandable language VOLUME 153 Decision and Order and syntax. Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any communication.

B. “Close proximity” means on the same print page, web page, online service page, or other electronic page, and proximate to the triggering representation, and not accessed or displayed through hyperlinks, pop-ups, interstitials, or other means.

C. “Commerce” shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44. D. “Competent and reliable scientific evidence” shall mean tests, analyses, research, or studies that have been conducted and evaluated in an objective manner by qualified persons, that are generally accepted in the profession to yield accurate and reliable results, and that are sufficient in quality and quantity based on standards generally accepted in the relevant scientific fields, when considered in light of the entire body of relevant and reliable scientific evidence, to substantiate that a representation is true. E. “Covered product or service” means any fenestration product, any component thereof, and any product or any service for which respondent makes any claim about energy savings, energy costs, energy consumption, U-factor, SHGC, R-value, K-value, insulating properties, thermal performance, or energyrelated efficacy.

F. “Fenestration product” means any window, sliding glass door, or skylight.

G. “K-value” is a measure of a material’s thermal conductivity.

H. Unless otherwise specified, “respondent” shall mean Long Fence & Home, LLLP, its successors and assigns, and its officers, agents, representatives, and employees.

LONG FENCE & HOME, LLLP 655 Decision and Order I. “R-value” is a measure of a material’s resistance to heat flow.

J. “SHGC” means solar heat gain coefficient, which is the fraction of incident solar radiation admitted through a window, both directly transmitted and absorbed and subsequently released inward. K. “U-factor” is a measure of the rate of heat loss. I.

IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any covered product or service in or affecting commerce, shall not make any representation, directly or indirectly, expressly or by implication, including through the use of endorsements or trade names that: A. Consumers who replace their windows with respondent’s windows achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; or B. Respondent guarantees or pledges that consumers who replace their windows with respondent’s windows will achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs;

unless the representation is non-misleading and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence to substantiate that all or almost all consumers are likely to receive the maximum represented savings or reduction.

Provided, however, that if respondent represents that consumers who replace their windows with respondent’s windows achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs under specified circumstances, or if respondent guarantees or pledges up to or a VOLUME 153 Decision and Order specified amount or percentage of energy savings or reduction in heating and cooling costs under specified circumstances, it must disclose those circumstances clearly and prominently in close proximity to such representation, guarantee, or pledge and it must substantiate that all or almost all consumers are likely to receive the maximum represented, guaranteed, or pledged savings or reduction under those circumstances (e.g., when replacing a window of a specific composition in a building having a specific level of insulation in a specific region). II.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any covered product or service in or affecting commerce, shall not make any representation, directly or indirectly, expressly or by implication, including through the use of endorsements or trade names: A. That any specific number or percentage of consumers who replace their windows with respondent’s windows achieve energy savings or reduction in heating and cooling costs; or B. About energy consumption, energy savings, energy costs, heating and cooling costs, U-factor, SHGC, Rvalue, K-value, insulating properties, thermal performance, or energy-related efficacy of any covered product or service;

unless the representation is non-misleading and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence to substantiate that such representation is true.

III.

IT IS FURTHER ORDERED that respondent LF&H, and its successors and assigns, shall, for five (5) years after the last date of dissemination of any representation covered by this order, LONG FENCE & HOME, LLLP 657 Decision and Order maintain and upon request make available to the Federal Trade Commission for inspection and copying: A. All advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations.

IV.

IT IS FURTHER ORDERED that respondent LF&H, and its successors and assigns, shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to such current personnel within thirty (30) days after the date of service of this order, and to such future personnel within thirty (30) days after the person assumes such position or responsibilities. Respondent shall maintain and upon request make available to the Federal Trade Commission for inspection and copying all acknowledgments of receipt of this order obtained pursuant to this Part. V.

IT IS FURTHER ORDERED that respondent LF&H, and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the partnership that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor; the creation or VOLUME 153 Decision and Order dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the partnership name or address. Provided, however, that, with respect to any proposed change in the partnership about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. Unless otherwise directed by a representative of the Commission in writing, all notices required by this Part shall be emailed to [email protected] or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: “Long Fence & Home, File No. 112 3005, Docket No. C-4352.” VI.

IT IS FURTHER ORDERED that respondent LF&H, and its successors and assigns, within sixty (60) days after the date of service of this order, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form of its own compliance with this order. Within ten (10) days of receipt of written notice from a representative of the Commission, it shall submit additional true and accurate written reports.

VII.

This order will terminate on April 5, 2032, or twenty (20) 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 Part in this order that terminates in less than twenty (20) years;

B. This order’s application to any respondent that is not named as a defendant in such complaint; and LONG FENCE & HOME, LLLP 659 Analysis to Aid Public Comment C. This order if such complaint is filed after the order has terminated pursuant to this Part.

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 as though the complaint had never been 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. By the Commission, Commissioner Rosch and Commissioner Ohlhausen not participating.

ANALYSIS OF CONSENT ORDER TO AID PUBLIC COMMENT The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final approval, an agreement containing a consent order from Long Fence & Home, LLLP, a partnership (“respondent”).

The proposed consent order has been placed on the public record for thirty (30) days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement or make final the agreement’s proposed order.

This matter involves respondent’s marketing and sale of replacement windows for use in residences. According to the FTC complaint, respondent represented that consumers who replace their windows with Long Windows’ Quantum2 replacement windows with SuperPak Glass are likely to achieve residential energy savings of 50% or save 50% on residential VOLUME 153 Analysis to Aid Public Comment heating and cooling costs. The complaint alleges that respondent did not possess and rely upon a reasonable basis substantiating these representations when it made them. Many factors determine the savings homeowners can realize by replacing their windows, including the home’s geographic location, size, insulation package, and existing windows. Consumers who replace single or double-paned wood or vinyl-framed windows – common residential window types in the United States – with LongWindows replacement windows are not likely to achieve a 50% reduction in residential energy consumption or heating and cooling costs. Thus, the complaint alleges that respondent engaged in unfair or deceptive practices in violation of Section 5(a) of the FTC Act.

The proposed consent order contains two provisions designed to prevent respondent from engaging in similar acts and practices in the future. Part I addresses the marketing of windows. It prohibits respondent from making any representation that: (A) consumers who replace their windows with respondent’s windows achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; or (B) respondent guarantees or pledges that consumers who replace their windows with respondent’s windows will achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; unless the representation is nonmisleading and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence to substantiate that all or almost all consumers are likely to receive the maximum represented savings or reduction. Further, if respondent represents, guarantees, or pledges that consumers achieve such energy savings or heating and cooling cost reductions under specified circumstances, it must: disclose those circumstances clearly and prominently in close proximity to such representation, guarantee, or pledge; and substantiate that all or almost all consumers are likely to receive the maximum represented, guaranteed, or pledged savings or reduction under those circumstances (e.g., when replacing a window of a specific composition in a building having a specific level of insulation in a specific region). The performance standard imposed under this Part constitutes fencing-in relief LONG FENCE & HOME, LLLP 661 Analysis to Aid Public Comment reasonably necessary to ensure that any future energy savings or reduction claims are not deceptive.

Part I of the order requires substantiation for representations including the words “up to” because the respondent may elect to make such representations in the future. The words “up to” do not effectively qualify representations regarding the energy savings or cost reductions likely to be achieved through replacement windows. Therefore, Part I requires the same level of substantiation regardless of whether the covered representation includes the words “up to.” The FTC’s proposed consent order should not be interpreted as a general statement of how the Commission may interpret or take other action concerning representations including the words “up to” for other products or services in the future.

Part II addresses any product or service for which respondent makes any energy-related efficacy representation. It prohibits respondent from making any representation: (A) that any specific number or percentage of consumers who replace their windows with respondent’s windows achieve energy savings or reduction in heating and cooling costs; or (B) about energy consumption, energy savings, energy costs, heating and cooling costs, U-factor, solar heat gain coefficient, R-value, K-value, insulating properties, thermal performance, or energy-related efficacy; unless the representation is non-misleading and substantiated by competent and reliable scientific evidence. Parts III though VI require respondent to: keep copies of advertisements and materials relied upon in disseminating any representation covered by the order; provide copies of the order to certain personnel, agents, and representatives having responsibilities with respect to the subject matter of the order; notify the Commission of changes in its structure that might affect compliance obligations under the order; and file a compliance report with the Commission and respond to other requests from FTC staff. Part VII provides that the order will terminate after twenty (20) years under certain circumstances. The purpose of this analysis is to facilitate public comment on the proposed order. It is not intended to constitute an official VOLUME 153 Analysis to Aid Public Comment interpretation of the complaint or the proposed order, or to modify the proposed order’s terms in any way. CARPENTER TECHNOLOGY CORPORATION 663 Complaint