[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Notices]
[Pages 7793-7795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4692]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
[File No. 932-3011]
Amoco Oil Company; Consent Agreement With Analysis to Aid Public
Comment
AGENCY: Federal Trade Commission.
ACTION: Consent Agreement.
-----------------------------------------------------------------------
SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
bar the Chicago-based corporation from making any performance or
environmental benefit claim for any of its gasoline without first
having scientific evidence to back it up. The consent agreement settles
allegations stemming from Amoco's ``Crystal Clear Amoco Ultimate''
advertising campaign.
DATES: Comments must be received on or before April 29, 1996.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT:
Joel Winston, Federal Trade Commission, S-4002, 6th and Pennsylvania
Avenue, NW, Washington, DC 20580. (202) 326-3153. Michael Dershowitz,
Federal Trade Commission, S-4002, 6th and Pennsylvania Avenue, NW,
Washington, DC 20580. (202) 326-3158.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the following consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of sixty (60) days. Public comment is invited. Such
comments or views will be considered by the Commission and will be
available for inspection and copying at its principal office in
accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of
Practice (16 CFR 4.9(b)(6)(ii)).
In the Matter of Amoco Oil Company, a corporation; File No. 932-
3011.
Agreement Containing Consent Order to Cease and Desist
The Federal Trade Commission having initiated an investigation of
certain acts and practices of Amoco Oil Company, a corporation,
hereinafter sometimes referred to as proposed respondent, and it now
appearing that proposed respondent is willing to enter into an
agreement containing an order to cease and desist from the use of the
acts and practices being investigated,
It is hereby agreed by and between Amoco Oil Company, by its duly
authorized officer, and its attorney, and counsel for the Federal Trade
Commission that:
1. Proposed respondent Amoco Oil Company is a Maryland corporation,
with its offices and principal place of business located at 200 East
Randolph Drive, Chicago, Illinois 60601.
2. Proposed respondent admits all the jurisdictional facts set
forth in the draft complaint here attached.
3. Proposed respondent waives:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement.
4. This agreement shall not become part of the public record in the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission it, together with the draft of
the complaint contemplated thereby, will be placed on the public record
for a period of sixty (60) days and information in respect thereto
publicly released. The Commission thereafter may either withdraw its
acceptance of this agreement and so notify the proposed respondent, in
which event it will take such action as it may consider appropriate, or
issue and serve its complaint (in such form as the circumstances may
require) and decision, in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by proposed respondent that the law has been
violated as alleged in the draft of complaint here attached, or that
the facts as alleged in the draft complaint, other than jurisdictional
facts, are true.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the
[[Page 7794]]
Commission's Rules, the Commission may, without further notice to the
proposed respondent, (1) issue its complaint corresponding in form and
substance with the draft of complaint here attached and its decision
containing the following order to cease and desist in disposition of
the proceeding and (2) make information public in respect thereto. When
so entered, the order to cease and desist shall have the same force and
effect and may be altered, modified or set aside in the same manner and
within the same time provided by statute for other orders. The order
shall become final upon service. Delivery by the U.S. Postal Service of
the complaint and decision containing the agreed-to order to proposed
respondent's address as stated in this agreement shall constitute
service. Proposed respondent waives any right it may have to any other
manner of service. The complaint may be used in construing the terms of
the order, and no agreement, understanding, representation or
interpretation not contained in the order or the agreement may be used
to vary or contradict the terms of the order.
7. Proposed respondent has read the proposed complaint and order
contemplated hereby. It understands that once the order has been
issued, it will be required to file one or more compliance reports
showing that it has fully complied with the order. Proposed respondent
further understands that it may be liable for civil penalties in the
amount provided by law for each violation of the order after it becomes
final.
Order
I.
It is ordered that respondent Amoco Oil Company, a corporation, its
successors and assigns, and its officers, representatives, agents and
employees, directly or through any corporation, subsidiary, division or
other device, in connection with the advertising, labeling, offering
for sale, sale or distribution of Amoco Silver 89 octane gasoline,
Amoco Ultimate 92 or 93 octane gasoline, or any other gasoline in or
affecting commerce, as ``commerce'' is defined in the Federal Trade
Commission Act, do forthwith cease and desisit from making any
representation in any manner, directly or by implication, that:
(A) Amoco Ultimate gasoline is superior to all other brands of
premium gasoline with respect to engine performance or environmental
benefits because it is refined more than all other such brands;
(B) The clear color of Amoco Ultimate gasoline demonstrates the
superior engine performance or environmental benefits Amoco Ultimate
provides compared to other brands of gasolines that are not clear in
color;
(C) A single tankful of Amoco Silver or Ultimate gasoline will make
dirty or clogged fuel injectors clean;
(D) Amoco Silver or Ultimate gasoline provides superior fuel
injector cleaning compared to other brands of gasoline;
(E) Automobiles driven more than 15,000 miles with regular gasoline
generally suffer from lost engine power or acceleration which will be
restored by the higher octane of Amoco Silver gasoline; or
(F) Concerns the relative or absolute attributes of any gasoline
with respect to environmental benefits or with respect to engine
performance, power, acceleration, or engine cleaning ability,
unless, at the time of making such representation, respondent possesses
and relies upon competent and reliable scientific evidence that
substantiates the representation. For purposes of this Order,
``competent and reliable scientific evidence'' shall mean tests,
analyses, research, studies, or other evidence based upon the expertise
of professionals in the relevant area, that has been conducted and
evaluated in an objective manner by persons qualified to do so, using
procedures generally accepted in the profession to yield accurate and
reliable results.
For purposes of this Part, any representation, directly or by
implication, that any gasoline will clean or clean up fuel injectors to
a level that engine performance is not adversely affected will be
deemed to be substantiated if respondent possesses and relies upon
competent and reliable testing demonstrating that the flow rate of each
fuel injector was returned to at least 95 percent of its original
value.
Provided that, nothing in this Order shall prohibit respondent from
truthfully representing the numerical octane rating of any gasoline.
II.
It is further ordered that respondent Amoco Oil Company, shall
within thirty (30) days after service distribute a copy of this Order
to all operating divisions, subsidiaries, officers, managerial
employees, and all of its employees or agents engaged in the
preparation and placement of advertisements or promotional sales
materials covered by this Order and shall obtain from each such
employee a signed statement acknowledging receipt of the order.
III.
It is further ordered that for three (3) years after the last date
of dissemination of any representation covered by this Order,
respondent Amoco Oil Company or its successors or assigns, shall
maintain and upon request make available to the Federal Trade
Commission or its staff for inspection and copying:
A. All materials that were relied upon to substantiate any
representation covered by this Order; and
B. All tests, reports, studies or surveys, in respondent's
possession or control that contradict any representation covered by
this Order.
IV.
It is further ordered that respondent Amoco Oil Company shall
notify the Commission at least thirty (30) days prior to the effective
date of any proposed change in the corporation that may affect
compliance obligations under this Order such as a dissolution,
assignment or sale resulting in the emergence of a successor
corporation(s), the creation or dissolution of subsidiaries or any
other change in the corporation.
V.
It is further ordered that this Order will terminate twenty years
from the date of its issuance, or twenty years from the most recent
date that the United States or the Federal Trade Commission files a
complaint (with or without an accompanying consent decree) in federal
court alleging any violation of the order, whichever comes later;
provided, however, that the filing of such a complaint will not affect
the duration of:
A. Any paragraph in this Order that terminates in less than twenty
years;
B. This Order's application to any respondent that is not named as
a defendant in such complaint; and
C. This Order if such complaint is filed after the Order has
terminated pursuant to this paragraph.
Provided further, that if such complaint is dismissed or a federal
court rules that the respondent did not violate any provision of the
Order, and the dismissal or ruling is either not appealed or upheld on
appeal, then the Order will terminate according to this paragraph as
though the complaint was never filed, except that the Order will not
terminate between the date such complaint is filed and the later of the
deadline for appealing such dismissal or ruling and the date such
dismissal or ruling is upheld on appeal.
[[Page 7795]]
VI.
It is further ordered that respondent Amoco Oil Company shall,
within sixty (60) days after service of this Order upon it, and at such
other times as the Commission may require, file with the Commission a
report, in writing, setting forth in detail the manner and form in
which it has complied with this Order.
Analysis of Proposed Consent Order to Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement containing a consent order from Amoco Oil
Company (``Amoco'').
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) 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 concerns advertising claims regarding the performance
attributes of Amoco Silver midgrade and Amoco Ultimate premium
gasolines. The Commission's proposed complaint alleges that Amoco's
advertising has made unsubstantiated claims that Amoco Ultimate
provides superior performance and environmental benefits compared to
all other premium brands, because it is refined more than such brands,
and that Ultimate's clear color demonstrates its superiority. The
complaint also challenges as unsubstantiated the claim that automobiles
driven more than 15,000 miles generally suffer from lost engine power
and acceleration, which Amoco Silver's higher octane will restore.
Finally, the complaint challenges as unsubstantiated the claims that
Silver and Ultimate will clean dirty fuel injectors in one tankful, and
are superior to other brands in cleaning fuel injectors.
The proposed consent order contains provisions designed to prevent
respondent from engaging in similar acts and practices in the future.
Part I of the proposed order prohibits respondent from making any
of the unsubstantiated representations alleged in the complaint, or any
other representation concerning the attributes of any Amoco gasoline
with respect to environmental benefits or engine performance, power,
acceleration or engine cleaning ability, unless it has competent and
reliable scientific evidence that substantiates the representation, at
the time it is made.
Part I of the proposed order also states that any claim by
respondent that a gasoline will clean or clean up fuel injectors to a
level that engine performance is not adversely affected will be deemed
to be substantiated by competent and reliable testing showing that the
flow rate of each injector was restored to at least 95% of its original
value. Part I of the proposed order also allows truthful
representations regarding the numerical octane rating of any gasoline.
Part II of the order requires Amoco to distribute copies of the
order to its operating divisions and to various officers, agents and
employees of Amoco.
Part III of the order requires Amoco to maintain copies of all
materials relied upon in making any representation covered by the
order.
Part IV of the order requires Amoco to notify the Commission of any
changes in corporate structure that might affect compliance with the
order.
Part V of the order is a ``sunset'' provision, dictating that the
order will terminate twenty years from the date it is issued or twenty
years after a complaint is filed in federal court, by either the United
States or the FTC, alleging any violation of the order.
Part VI of the order requires Amoco to file with the Commission one
or more reports detailing compliance with the order.
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 agreement and proposed order or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-4692 Filed 2-28-96; 8:45 am]
BILLING CODE 6750-01-M
