FOR RELEASE: APRIL 7, 1993
INDIANA OIL COMPANY SETTLES FTC CHARGES IN CONNECTION WITH OCTANE RULE
Davis Brothers Oil, Inc., a gasoline distributor head- quartered in Clarksville, Indiana, and its president, Paul E. Davis, has agreed to settle Federal Trade Commission charges that it violated the Commission's Octane Rule by failing to certify the octane ratings of gasoline it transferred to retail service stations and by failing to keep delivery tickets or letters of certification on which it based its octane certifications. Under the proposed settlement, Davis Brothers Oil, Inc. would be required to pay a $25,000 civil penalty and be prohibited from violating the rule in the future. An octane rating is a measure of a gasoline's ability to resist automotive engine "knock" or "ping," resulting from an uneven burning of the compressed fuel-air mixture. The Octane Rule requires retailers to disclose the octane rating of their gasoline by posting the now-familiar bright yellow sticker on each pump. Under the rule, gasoline refiners and importers determine the octane rating. After that point, each entity in the distribution chain must certify the octane rating to the next recipient, based either on its own determination or the certification it received. The disclosure requirements of the Octane Rule are intended to help consumers choose the gasolines which are properly suited to their vehicles.
- more -
The complaint and proposed consent decree were filed yesterday on behalf of the FTC by the Department of Justice in U.S. District Court for the Southern District of Indiana in Indianapolis.
NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the company that it violated the law. Consent decrees have the force of law when signed by the judge.
Copies of the complaint and consent decree will be available shortly from the FTC's Public Reference Branch, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. The FTC also has a consumer brochure titled, "Octane Ratings," which explains the Octane Rule and how consumers can choose the best gasoline for their automobiles. It is available from the same address.
# # #
MEDIA CONTACT: John Leslie III, Office of Public Affairs 202-326-2178
STAFF CONTACT: Jeffrey Feinstein, Bureau of Consumer Protection 202-326-2372
(FTC File No. 922 3104)
(Civil Action No. IP93-458C)