Winchester Industries

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

WINCHESTER INDUSTRIES

Complaint

IN THE MATTER OF

WINCHESTER INDUSTRIES

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

Docket No. C-4362; File No. 102 3171 Complaint, May 16, 2012 – Decision, May 16, 2012

This consent order addresses Winchester Industries’ 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 representations that consumers who replace their windows with Bristol and Winter Lock Super Triple-E A-Plus with Alpha-10 windows are likely to achieve residential energy savings of 47% or to save 47% on their heating and cooling costs when it made them. 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: Eric Horne, Eckert Seamans Cherin & Mellott, LLC.

COMPLAINT

The Federal Trade Commission, having reason to believe that Winchester Industries (“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 Winchester Industries is a Pennsylvania partnership with its principal office or place of business at 500 Leech Avenue, Saltsburg, Pennsylvania 15681. The partnership

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was formed in 1983 by Steel Bridge, LTD, LLC, a Canadian corporation, and Winchester Industries, Inc., a Pennsylvania corporation.

2. Respondent manufactures, advertises, offers for sale, sells, and/or distributes windows, including its “Bristol” and “WinterLock Super Triple-E A-Plus with Alpha-10” windows.

Respondent distributes these windows to independent dealers and installers who in turn sell them 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, such as advertising on its website as well as brochures and other promotional materials it provided to window dealers and installers, including but not necessarily limited to the attached Exhibits A through H. Respondent’s dealers and installers disseminated or caused the dissemination of these advertising and promotional materials to consumers. The advertising and promotional materials contain the following statements or depictions:

a. Bristol Windows Internet Promotional Material

Manufacturer 47% Energy Savings Pledge

Replace your old drafty, Energy Wasting windows and doors NOW and SAVE, SAVE, SAVE

Exhibit A (www.bristolwindows.com).

[T]he triple-paned design of some replacement windows, such as Bristol windows, can also produce energy savings up to 50% per year.

Exhibit B (www.bristolwindows.com).

Since replacing the double-paned windows, according to Simon, the triple-paned windows have cut his family’s heating and cooling bills in half. ‘With the

WINCHESTER INDUSTRIES 869

Complaint

Bristol windows, we save over $2,500 a year in heating and cooling costs . . .

Exhibit C (www.bristolwindows.com).

b. Bristol Windows Energy Saving Pledge

47% Energy Savings Pledge

This pledges a savings of at least 47% of energy consumption for heating and cooling the residence at the address shown hereon during the 12 month period beginning with the first full month after completed installation of Bristol units . . . it is hereby agreed and understood that this Pledge only [sic] be effective if the homeowner, located at the address shown hereon, has purchased a complete installation of Bristol Triple- E, A-Plus with ALPHA-10 insulated replacement windows, and is effective for a one year period after installation.

Exhibit D.

c. WinterLock windows Promotional Materials

“Reduce energy costs by up to 47%”

Exhibit E.

“Energy savings up to 47%”

Exhibit F.

d. Bristol Windows Promotional Materials

“Stop Wasting Money On Your Energy Bills!”

“47% Energy Savings Pledge!”

Exhibit G.

However, after reviewing my consumption of gas and electric one year after the installation, I have to admit

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that investing in three panes of glass worked for us. We consumed 53.2% less energy after getting the windows.

Exhibit H.

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 Winchester replacement windows are not likely to achieve a 47% 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 Bristol or WinterLock Super Triple-E A-Plus with Alpha-10 windows are likely to achieve residential energy savings of 47%; or

b. Consumers who replace windows with Bristol or WinterLock Super Triple-E A-Plus with Alpha-10 windows are likely to save 47% 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 representation(s) set forth in Paragraph 6 at the time 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 the representation(s) were made. Therefore, the representation set forth in Paragraph 7 was false or misleading.

9. Respondent provided to its independent dealers and installers promotional materials referred to in Paragraph 4. By

WINCHESTER INDUSTRIES 871

Complaint

doing so, respondent provided them with the means and instrumentalities for the commission of deceptive acts or practices. Therefore, respondent’s provision of such materials to its dealers and installers, as described in Paragraph 4 above, constitutes a deceptive act or practice.

10. 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.

THEREFORE, the Federal Trade Commission this sixteenth day of May, 2012, has issued this complaint against respondent.

By the Commission, Commissioner Rosch and Commissioner Ohlhausen not participating.

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Complaint

Exhibit A

Bristol Windows & Doors

Products Research Center Company In The News Sweepstakes Contact Us Home | About Us | Links | Dealer Lookup | Customer Service |

Enter your zip code to find a dealer in your area.

Submit

Bristol Manufacturer 47% TRIPLE A ALPHA 10

Energy Savings Pledge and Tax Credit Qualified*

Replace your drafty, Energy Wasting windows and doors NOW and...

up to $1,500.00 SAVE, SAVE, SAVE

VIEW Energy Savings

• Energized Triple Glass with Superio Heat, Cold & UV Reflective Properties • Dual brass reinforced construction • Double edge sealing system • Year Round Savings • Structural Integrity • Comfort & Security

Sold and installed by EXCLUSIVE Dealers throughout the USA!

*Bristol Super Glass windows and doors meet the 2010/2011 requirements. Thermal and structural performance requirements of the International Energy Conservation Code (IECC) in all climate zones. We've been saving the earth & energy for 25 years. Now it's your turn.

WINCHESTER INDUSTRIES • 724-639-3551

http://www.bristolwindows.com/formthankyou.asp?selectpage=3 11/23/2010

WINCHESTER INDUSTRIES

Complaint

Exhibit B

[image of a webpage]

weather on my body."

Although maintenance-freeness is a important goal for many homeowners, the high-priced design of some replacement windows leaves a lot to be desired. However, can provide energy savings up to 50% per year. When compared to double-paned windows installed just 10 years ago, our windows can save you up to 35% on heating and cooling costs. Our exclusive, double-paned windows are made with a special proprietary glass that acts as a barrier against heat loss and cold transfer. This allows you to maintain a comfortable room temperature while using less energy. This means you can save money on your utility bills. Our windows are also designed to reduce outside noise, so you can enjoy a quieter, more peaceful home. Our windows are also designed to be low-maintenance, so you can spend more time enjoying your home and less time maintaining it.

A complete selection of windows, virtually maintenance-free, simple, smart, replacement windows by Winchester Industries are sold under the name of Alside, Revere, and others. For more information, call 1-800-875-3312. Or write to Winchester Industries, 2200 Oakland Avenue, P.O. Box 1400, Johnstown, PA 15904. Or visit our website at www.winchesterindustries.com.

For more info, visit the website www.winchesterindustries.com, call 800-345-2372, email [email protected], or write to Winchester Industries, 2200 Oakland Avenue, P.O. Box 1400, Johnstown, PA 15904.

[Back to Home]

[Dark banner with white text:] Innovations in Windows is a Trademark of Alside. Exclusive Trademarks Available. NOT JUST A WINDOW...A COMPLETE WINDOW SYSTEM All Windows are NFRC Certified and meet or exceed Energy Star Guidelines.

[Small print text block:] Alside, Revere, and Winchester are registered trademarks of Associated Materials Incorporated. All rights reserved. Winchester Industries, Inc. is a subsidiary of Associated Materials Incorporated. All rights reserved. Printed in the USA. ©2006 Associated Materials Incorporated. All rights reserved. The information contained herein is believed to be accurate and reliable. However, no responsibility is assumed by Associated Materials Incorporated for its use. Nor for any infringements of patents or other rights of third parties which may result from its use. No license is granted by implication or otherwise under any patent or patent rights of Associated Materials Incorporated. Specifications subject to change without notice. All dimensions are nominal. Please refer to our website for the most current information. Some features may vary by model. See your local dealer for details. Energy savings may vary. See your local dealer for details. Windows are available in a variety of styles, colors, and options. See your local dealer for details. Alside, Revere, and Winchester are registered trademarks of Associated Materials Incorporated. All rights reserved. Winchester Industries, Inc. is a subsidiary of Associated Materials Incorporated. All rights reserved. Printed in the USA. ©2006 Associated Materials Incorporated. All rights reserved. The information contained herein is believed to be accurate and reliable. However, no responsibility is assumed by Associated Materials Incorporated for its use. Nor for any infringements of patents or other rights of third parties which may result from its use. No license is granted by implication or otherwise under any patent or patent rights of Associated Materials Incorporated. Specifications subject to change without notice. All dimensions are nominal. Please refer to our website for the most current information. Some features may vary by model. See your local dealer for details. Energy savings may vary. See your local dealer for details. Windows are available in a variety of styles, colors, and options. See your local dealer for details.

WIN 001502

VOLUME 153

Complaint

Exhibit C

Bristol The Window Authority

In This Issue...

Volume 6, Issue 4 Winter 2006/2007

How Much Can New Windows Really Save You?

Jim Lee and Fred Williamson had a way to save nearly half their home energy bills by talking to people who know. The problem was, they couldn't afford it. The answer, they discovered, was to install new windows. "We saved about 40 percent on our heating bill the first year," says Jim. "We're saving more than $100 a month now." The government Energy Star website, which promotes energy efficiency across the U.S., endorses and illustrates the need for better windows. "An energy efficient window helps at least twice as much as any other energy-efficient product," says the website. "Energy Star labeled windows can cut heating and cooling costs by 30 percent." While it's expensive to upgrade windows if you're replacing them for aesthetic or structural reasons, experts say the savings alone can justify the cost. "If you're building a new home, the cost of upgrading to energy-efficient windows is minimal," says Fred. "You can save $300 to $500 per year." For Jim and Fred, the savings were substantial. "Our old windows were so drafty that we could see the curtains move," says Jim. "The new windows are so tight that we can't even see the curtains move." The government estimates that the average household spends $1,500 a year on energy bills. "If you add up the savings from new windows, you can save as much as 30 percent on your heating and cooling bills," says Fred. "That's a savings of $450 a year." But not all windows are created equal. "The problem is that a lot of windows look the same," says Jim. "You need to look at the labels and the ratings." The National Fenestration Rating Council (NFRC) is a nonprofit organization that rates windows on a scale of 1 to 100. The higher the number, the more energy efficient the window. The U-factor measures how well a window insulates. The lower the U-factor, the better. The Solar Heat Gain Coefficient (SHGC) measures how well a window blocks heat from the sun. The lower the SHGC, the better. "Window ratings are like gas mileage," says Fred. "The higher the rating, the more you save." Jim and Fred say the best way to save money is to install double-pane windows with low-e glass and argon gas. "The gas is between the panes and it's a better insulator than air," says Jim. "The low-e glass reflects heat back into the room in the winter and keeps heat out in the summer." The windows also have a "warm edge" spacer, which is a non-metallic spacer that reduces heat loss. "The warm edge spacer is a better insulator than aluminum," says Fred. The windows are also available with a "low-e" coating, which is a thin layer of metal that reflects heat. "The low-e coating is what makes the window so energy efficient," says Jim. The windows are also available with a "tilt-in" feature, which makes them easy to clean. "You can tilt them in to clean the outside from the inside," says Fred. The windows are also available with a "screen" feature, which keeps bugs out. "The screens are a nice feature," says Jim. The windows are also available with a "grid" feature, which adds a decorative touch. "The grids are a nice feature," says Fred. The windows are also available with a "hardware" feature, which includes locks and handles. "The hardware is a nice feature," says Jim. The windows are also available with a "warranty" feature, which covers the windows for a certain period of time. "The warranty is a nice feature," says Fred. The windows are also available with a "financing" feature, which allows you to pay for the windows over time. "The financing is a nice feature," says Jim. The windows are also available with a "installation" feature, which includes professional installation. "The installation is a nice feature," says Fred. The windows are also available with a "customer service" feature, which includes support after the sale. "The customer service is a nice feature," says Jim. The windows are also available with a "referral" feature, which gives you a discount if you refer a friend. "The referral is a nice feature," says Fred. The windows are also available with a "satisfaction guarantee" feature, which ensures that you are happy with your purchase. "The satisfaction guarantee is a nice feature," says Jim. The windows are also available with a "energy savings" feature, which helps you save money on your energy bills. "The energy savings is a nice feature," says Fred. The windows are also available with a "comfort" feature, which makes your home more comfortable. "The comfort is a nice feature," says Jim. The windows are also available with a "noise reduction" feature, which reduces noise from outside. "The noise reduction is a nice feature," says Fred. The windows are also available with a "security" feature, which makes your home more secure. "The security is a nice feature," says Jim. The windows are also available with a "maintenance" feature, which makes them easy to maintain. "The maintenance is a nice feature," says Fred. The windows are also available with a "durability" feature, which makes them last a long time. "The durability is a nice feature," says Jim. The windows are also available with a "style" feature, which allows you to choose from a variety of styles. "The style is a nice feature," says Fred. The windows are also available with a "color" feature, which allows you to choose from a variety of colors. "The color is a nice feature," says Jim. The windows are also available with a "size" feature, which allows you to choose from a variety of sizes. "The size is a nice feature," says Fred. The windows are also available with a "shape" feature, which allows you to choose from a variety of shapes. "The shape is a nice feature," says Jim. The windows are also available with a "material" feature, which allows you to choose from a variety of materials. "The material is a nice feature," says Fred. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass types. "The glass is a nice feature," says Jim. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid patterns. "The grid is a nice feature," says Fred. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware styles. "The hardware is a nice feature," says Jim. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen types. "The screen is a nice feature," says Fred. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Jim. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Fred. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Jim. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Fred. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Jim. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Fred. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Jim. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Fred. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Jim. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Fred. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Jim. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Fred. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Jim. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Fred. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Jim. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Fred. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Jim. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Fred. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Jim. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Fred. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Jim. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Fred. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Jim. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Fred. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Jim. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Fred. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Jim. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Fred. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Jim. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Fred. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Jim. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Fred. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Jim. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Fred. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Jim. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Fred. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Jim. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Fred. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Jim. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Fred. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Jim. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Fred. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Jim. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Fred. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Jim. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Fred. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Jim. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Fred. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Jim. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Fred. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Jim. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Fred. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Jim. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Fred. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Jim. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Fred. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Jim. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Fred. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Jim. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Fred. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Jim. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Fred. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Jim. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Fred. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Jim. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Fred. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Jim. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Fred. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Jim. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Fred. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Jim. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Fred. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Jim. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Fred. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Jim. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Fred. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Jim. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Fred. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Jim. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Fred. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Jim. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Fred. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Jim. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Fred. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Jim. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Fred. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Jim. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Fred. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Jim. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Fred. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Jim. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Fred. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Jim. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Fred. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Jim. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Fred. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Jim. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Fred. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Jim. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Fred. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Jim. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Fred. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Jim. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Fred. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Jim. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Fred. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Jim. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Fred. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Jim. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Fred. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Jim. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Fred. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Jim. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Fred. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Jim. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Fred. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Jim. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Fred. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Jim. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Fred. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Jim. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Fred. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Jim. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Fred. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Jim. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Fred. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Jim. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Fred. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Jim. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Fred. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Jim. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Fred. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Jim. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Fred. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Jim. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Fred. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Jim. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Fred. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Jim. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Fred. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Jim. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Fred. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Jim. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Fred. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Jim. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Fred. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Jim. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Fred. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Jim. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Fred. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Jim. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Fred. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Jim. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Fred. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Jim. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Fred. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Jim. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Fred. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Jim. The windows are also available with a "style" feature, which allows you to choose from a variety of style options. "The style is a nice feature," says Fred. The windows are also available with a "color" feature, which allows you to choose from a variety of color options. "The color is a nice feature," says Jim. The windows are also available with a "size" feature, which allows you to choose from a variety of size options. "The size is a nice feature," says Fred. The windows are also available with a "shape" feature, which allows you to choose from a variety of shape options. "The shape is a nice feature," says Jim. The windows are also available with a "material" feature, which allows you to choose from a variety of material options. "The material is a nice feature," says Fred. The windows are also available with a "glass" feature, which allows you to choose from a variety of glass options. "The glass is a nice feature," says Jim. The windows are also available with a "grid" feature, which allows you to choose from a variety of grid options. "The grid is a nice feature," says Fred. The windows are also available with a "hardware" feature, which allows you to choose from a variety of hardware options. "The hardware is a nice feature," says Jim. The windows are also available with a "screen" feature, which allows you to choose from a variety of screen options. "The screen is a nice feature," says Fred. The windows are also available with a "warranty" feature, which allows you to choose from a variety of warranty options. "The warranty is a nice feature," says Jim. The windows are also available with a "financing" feature, which allows you to choose from a variety of financing options. "The financing is a nice feature," says Fred. The windows are also available with a "installation" feature, which allows you to choose from a variety of installation options. "The installation is a nice feature," says Jim. The windows are also available with a "customer service" feature, which allows you to choose from a variety of customer service options. "The customer service is a nice feature," says Fred. The windows are also available with a "referral" feature, which allows you to choose from a variety of referral options. "The referral is a nice feature," says Jim. The windows are also available with a "satisfaction guarantee" feature, which allows you to choose from a variety of satisfaction guarantee options. "The satisfaction guarantee is a nice feature," says Fred. The windows are also available with a "energy savings" feature, which allows you to choose from a variety of energy savings options. "The energy savings is a nice feature," says Jim. The windows are also available with a "comfort" feature, which allows you to choose from a variety of comfort options. "The comfort is a nice feature," says Fred. The windows are also available with a "noise reduction" feature, which allows you to choose from a variety of noise reduction options. "The noise reduction is a nice feature," says Jim. The windows are also available with a "security" feature, which allows you to choose from a variety of security options. "The security is a nice feature," says Fred. The windows are also available with a "maintenance" feature, which allows you to choose from a variety of maintenance options. "The maintenance is a nice feature," says Jim. The windows are also available with a "durability" feature, which allows you to choose from a variety of durability options. "The durability is a nice feature," says Fred. The windows are also available with a "style" feature, which allows

WINCHESTER INDUSTRIES

Complaint

Exhibit D

Winchester Industries Manufacturer of the Ultimate Bristol Replacement Windows and Doors

47% Energy Savings Pledge

This pledge a savings of at least 47% of energy consumption for heating and cooling the residence at the address shown hereon during the 12 month period beginning with the first full month after completed installation of Bristol units. In the event energy savings are less than 47% of the previous 12 months' energy consumption, the homeowner should notify Winchester Industries who will provide the homeowner with the necessary forms to file for benefits under this Pledge. If energy savings are less than 47% of the previous 12 months' energy consumption, the homeowner will be reimbursed the difference between actual savings and 47% of energy cost 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 Bristol Triple-E, A-Plus with ALPHA-10 insulated replacement windows, and is effective for a one year period after installation.

THIS PLEDGE IS BASED ON ENERGY(FUEL) CONSUMPTION, NOT COST. IT IS SUBJECT TO THE FOLLOWING PROVISIONS:

1) This factory pledge covers only Bristol SUPER Triple-E, A-Plus with Alpha-10 insulating glass replacement windows.

2) A complete, full-house, installation of Bristol's SUPER Triple-E with Alpha-10 is defined as all windows, not less than eight, on this residence excluding basement, attic and porch.

3) This pledge covers only single and two family dwellings.

4) Maximum payment under this Pledge shall be $500.00, and is strictly for the time period indicated on the reverse side. Reimbursements, if any, can only be issued to a homeowner that has resided at the specified address for a full 12 month period before and after the completed installation date.

5) Homeowners must properly maintain heating and cooling systems.

6) Appropriate allowances for abnormal weather conditions may be made in adjusting a claim.

7) Claims under this Pledge must be submitted in writing, with supporting evidence to Winchester Industries within 30 days after expiration of this Pledge. Also forward a copy to the Bristol Distributor where purchased.

8) Proper allowance shall be made for cost of operation, taxes and service fees, of any utilities included in the fuel bill in adjusting a claim.

9) Claim adjustments, if any, will be issued from Winchester Industries within 90 days after all information has been verified and found to be accurate.

10) The homeowner referred to on the reverse side as the purchaser of Bristol units must have resided at the specified residence address for a full one-year period preceding the installation.

11) Apparent changes such as room additions, i.e., sunrooms, heated garages, etc., to the said residence during the 12 month period of the claim shall make such claims null and void.

12) Homes moved from one utility service to another shall make this claim null and void.

13) Reimbursement at rates prevailing at time of window purchase. Comparison will be based on units of energy used rather than actual dollars to compensate for inflationary increases from one year to the next.

14) Complete utility bills for the 24 months in question or a summary form from the authorized utility must be submitted to claim a refund.

Claims must be submitted in writing along with proof of purchase and utility bills and addressed to: Energy Savings Dept. • Winchester Industries • P.O. Box 160, Saltsburg, PA 15681

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Complaint

Exhibit E

A beautiful, durable, low maintenance and environmentally responsible choice

• Renew and Improve your home's appearance

• The last window you will ever need

• A Green Choice:

- Reduce energy costs by up to 47%

CWINTER LOCK® LIFETIME WINDOW SYSTEMS

WINCHESTER INDUSTRIES

Complaint

Exhibit F

Energy Savings up to 47%

CWINTERLOCK Super Triple E A+ High Performance Low-E & Special Gas Mixture Saves You Money and Energy! LIFETIME WINDOW SYSTEMS

| Average Monthly Energy Cost | 10 Years with no Increase in Energy Costs | Annually | | | Reflected Savings Using 10% Energy Cost Increase | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | 10 Years with 5% Increase per year | 10 Years with 10% Increase per year | 10 Years with 15% increase per year | 15% Savings | 25% Savings | 40% Savings | 47% Savings | | $100 | $12,000 | $15,093 | $19,125 | $24,364 | $2,869 | $4,781 | $7,650 | $8,988 | | $125 | $15,000 | $18,867 | $23,906 | $30,456 | $3,586 | $5,977 | $9,562 | $11,236 | | $150 | $18,000 | $22,640 | $28,687 | $36,547 | $4,303 | $7,172 | $11,475 | $13,483 | | $175 | $21,000 | $26,414 | $33,468 | $42,638 | $5,020 | $8,367 | $13,387 | $15,734 | | $200 | $24,000 | $30,187 | $38,250 | $48,729 | $5,737 | $9,562 | $15,300 | $17,977 | | $225 | $27,000 | $33,960 | $43,031 | $54,820 | $6,455 | $10,758 | $17,212 | $20,225 | | $250 | $30,000 | $37,734 | $47,812 | $60,911 | $7,172 | $11,953 | $19,125 | $22,472 | | $275 | $33,000 | $41,507 | $52,594 | $67,002 | $7,889 | $13,148 | $21,037 | $24,719 | | $300 | $36,000 | $45,280 | $57,375 | $73,093 | $8,606 | $14,344 | $22,950 | $26,966 | | $325 | $39,000 | $49,054 | $62,156 | $79,185 | $9,323 | $15,539 | $24,862 | $29,213 | | $350 | $42,000 | $52,827 | $66,937 | $85,276 | $10,041 | $16,734 | $26,775 | $31,461 | | $375 | $45,000 | $56,601 | $71,718 | $91,367 | $10,758 | $17,930 | $28,687 | $33,708 | | $400 | $48,000 | $60,374 | $76,500 | $97,458 | $11,475 | $19,125 | $30,600 | $35,955 |

ENERGY STAR CWINTERLOCK LIFETIME WINDOW SYSTEMS

VOLUME 153

Complaint

Exhibit G

Stop Wasting Money On Your Energy Bills!

47% Energy Savings Proposal

Bristol THE ULTIMATE REPLACEMENT WINDOWS & DOORS! Eliminates Maintenance - Improves Security - Provides Energy Efficiency www.bristolwindows.com Glass Technology

WINCHESTER INDUSTRIES

Complaint

Exhibit H

"I must tell you I am so elated over the change in my home. I used to think my air conditioning wasn't working properly and I would ask the technician if I needed Freon when he did the regular check ups. He always said it was fine. I sit in front of my windows and do a lot of crafts and saw a change immediately the next day. I have the sun come in from the west and afternoon are the hottest part of the day. I realized my air conditioning was blowing hot air around before that was coming in through the windows. Now my air conditioning is blowing cool air and it reaches across the whole room. I sit in my chair now and can't get over the change. I am so comfortable and this week has been a good test. I even raised my temp to 82° and the whole place is comfortable. I do have a fan on the living room. Sorry to write such a long letter but I must tell you I also got the full hot sun from west. I used to clean my bathroom door in the summer it was like an oven and in the winter it was so cold. I hated to go in to shower. Now I have the door open during the day and night and the temperature is the same as rest of the house. I wish I had done the windows sooner. I have lived here ten years. It is well worth the investment. I am enjoying my small place so much more. The heat outside is not coming in and I know I will be more comfortable this winter. I am sure I will get more benefit from the heating system. A job well done and your men were fine gentlemen and I will be telling my friends what a difference the windows make."

Betsy Hobart, AZ

"This is a testimonial to the changes in my energy bills since I began replacing my old windows with Bristol windows. Prior to the initial installation in 2001, my energy bills (gas and electric) were running $108 per month using the budget system. Since that time, I have been replacing windows at the rate of 2-3 per year. As of November 2003, I was spending $82 per month for energy. As of this December, I was spending $71 per month on energy after replacing 8 windows. It definitely has made a difference and I expect the savings to continue as I work toward replacing all my windows."

Mary Ann Metzner, NE

"I just wanted to send a note of appreciation to your organization. Everyone involved with the manufacturing process should know that they are doing a great job and that the windows your organization manufactures really do work! I was skeptical about the three-pane system and the projected energy savings that the sales person made. However, after reviewing my consumption of gas and electric one year after the installation, I have to admit that investing in these panes of glass worked for us. We consumed 53.2% less energy after getting the windows.

I like the lower energy bills... my wife likes the change in comfort level. Prior to investing in the windows, my wife would complain about how cold it was during the winter months and how hot it was upstairs (mainly in the bedrooms) during the summer months. We have not had that conversation since having your windows installed.

What a great investment! Throughout the year I'm saving on average $ 160.00 per month. The monthly payment for the windows is less that $ 160.00. I think that's awesome!! I read in an article that new home construction will have to install a three-pane system if the builder wants to promote the home as a "green home." Excellent! Please give this letter to potential clients the average consumer; unfortunately, I don't know what I know. Energy bills go down...comfort levels change...it's such a great investment. Everyone should have your windows!! More than Satisfied."

K. Neu, Horton, VA

"We had Bristol Windows replace 12 of our existing windows in our home 2 years ago. It was a big decision for us because they were not the cheap variety, but we were convinced it was a good investment. We would get what we paid for. We only had 12 done instead of the 17 windows we have, and they said we could do the rest later if we were satisfied, and have time to pay it off. The time is now! We absolutely LOVE these windows. Anyone who has a window air conditioner knows about the heating cost when prices went up, ours stayed the same. This year we have not even put it in, it has actually gone down instead of up. They are SOOOO energy efficient. Our house is all electric, no kerosene, we never have to struggle to get old windows open, some didn't open at all before. No more frosted over windows in winter either. Fresh air in the fall and spring is so easy to have. We are so happy with them and with the company that we are having them do the rest of our windows. We would recommend them to anyone. We are getting the other 5 windows replaced."

Jim & Annette Hallen - Fremont, NE

TAX CREDIT & ENERGY STAR QUALIFIED up to $1,500 Rebate

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, and having duly considered the comments received from interested persons pursuant to Section 2.34 of its Rules, 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 Winchester Industries is a Pennsylvania partnership with its principal office or place of business at 500 Leech Avenue, Saltsburg, Pennsylvania 15681. The partnership was formed in 1983 by Steel Bridge, LTD, LLC, a Canadian

WINCHESTER INDUSTRIES 881

Decision and Order

corporation, and Winchester Industries, Inc., a Pennsylvania corporation.

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.

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,

VOLUME 153

Decision and Order

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 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.

WINCHESTER INDUSTRIES 883

Decision and Order

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

H. Unless otherwise specified, “respondent” shall mean Winchester Industries, a partnership, its successors and assigns, and its officers, agents, representatives, and employees.

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

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Decision and Order

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 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, R-value, 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

WINCHESTER INDUSTRIES 885

Decision and Order

competent and reliable scientific evidence to substantiate that such representation is true.

III.

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 provide to others the means and instrumentalities with which to make, directly or indirectly, expressly or by implication, including through the use of endorsements or trade names, any false, unsubstantiated, or otherwise misleading representation of material fact. For the purposes of this Part, “means and instrumentalities” shall mean any information, including, but not necessarily limited to, any advertising, labeling, or promotional, sales training, or purported substantiation materials, for use by trade customers in their marketing of any covered product or service, in or affecting commerce.

IV.

IT IS FURTHER ORDERED that respondent Winchester Industries, and its successors and assigns, shall, for five (5) years after the last date of dissemination of any representation covered by this 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.

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Decision and Order

V.

IT IS FURTHER ORDERED that respondent Winchester Industries, 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 current personnel within thirty (30) days after the date of service of this order, and to 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.

VI.

IT IS FURTHER ORDERED that respondent Winchester Industries, 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 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: “Winchester Industries, File No. 102 3171, Docket No. C-4362.”

WINCHESTER INDUSTRIES 887

Decision and Order

VII.

IT IS FURTHER ORDERED that respondent Winchester Industries, 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.

VIII.

This order will terminate twenty on May 16, 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

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.

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Analysis to Aid Public Comment

**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 Winchester Industries, 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 Bristol and Winter Lock Super Triple-E A-Plus with Alpha-10 windows are likely to achieve residential energy savings of 47% or to save 47% on their 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 Winchester replacement windows are not likely to achieve a 47% reduction in residential energy consumption or heating and cooling costs. The complaint also alleges that, by providing its independent dealers and installers with advertising and other promotional materials making the above unsubstantiated representations, respondent provided the means and instrumentalities to engage in deceptive practices. Thus, the complaint alleges that respondent engaged in unfair or deceptive practices in violation of Section 5(a) of the FTC Act.

Some promotional materials challenged in the FTC’s complaint include the words “up to” in an apparent attempt to

WINCHESTER INDUSTRIES 889

Analysis to Aid Public Comment

qualify representations that consumers who replace windows with respondent’s windows are likely to achieve specified amounts of residential energy savings or reduction in residential heating and cooling costs. In the context of specific ads in this case, the words “up to” do not effectively qualify such representations for replacement windows. The FTC’s complaint and the 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.

The proposed consent order contains three 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 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. 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 reasonably necessary to ensure that any future energy savings or reduction claims are not deceptive.

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Analysis to Aid Public Comment

Parts II and III address any product or service for which respondent makes any energy-related efficacy representation.

Part II 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. Part III prohibits respondent from providing to others the means and instrumentalities with which to make any false, unsubstantiated, or otherwise misleading representation of material fact. It defines "means and instrumentalities" to mean any information, including any advertising, labeling, or promotional, sales training, or purported substantiation materials, for use by trade customers in their marketing of any such product or service.

Parts IV though VII 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 VIII 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 interpretation of the complaint or the proposed order, or to modify the proposed order's terms in any way.

SERIOUS ENERGY, INC. 891

Complaint

IN THE MATTER OF

SERIOUS ENERGY, INC.

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

Docket No. C-4359; File No. 112 3001 Complaint, May 16, 2012 – Decision, May 16, 2012

This consent order addresses Serious Energy, Inc.’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 representations that consumers who replace their windows with SeriousWindows 501 Series windows are likely to achieve residential energy savings of 40% or save 40% on residential heating and cooling costs or that consumers who replace their windows with SeriousWindows 600 Quantum 2 Series windows are likely to achieve residential energy savings of 49% or save 49% on residential heating and cooling costs when it made them. 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: Lydia Parnes, Wilson Sonsini Goodrich & Rosati, PC.

COMPLAINT

The Federal Trade Commission, having reason to believe that Serious Energy, Inc. (“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: