FOR RELEASE: JANUARY 28, 1993
THE HECHINGER COMPANY WILL SETTLE CHARGES
IT FAILED TO GIVE CONSUMERS REQUIRED DATA ABOUT
INSULATING ABILITY OF HOME-INSULATION PRODUCTS
The Hechinger Company, a major retailer of home-improvement
products in the Washington, D.C.-area, has agreed to settle
Federal Trade Commission charges that it failed to make certain
disclosures in its advertising for home-insulation products as
required by the FTC's R-value Rule. A proposed consent decree
settling these charges would prohibit Hechinger from violating
the rule in the future and require the firm to pay a civil
penalty of $40,000.
The FTC's R-value Rule requires that the R-value (a measure
of resistance to heat flow) and other relevant information for
home-insulation products be disclosed in ads when certain claims
are made. The rule also requires R-value disclosures at the
point of sale and on product labels, to ensure consumers have
necessary information to make cost-effective choices among
competing products. Further, the rule requires that a fact sheet
containing additional information be made available to consumers
before they make their purchases.
According to the Commission's complaint, Hechinger had
violated the rule by stating in advertisements:
-- an R-value, but failing to disclose the type of
insulation, the thickness needed to get that R-value, and/or
the required statement explaining R-values that is set forth
in the rule;
-- a price, but failing to disclose the R-value at a
specific thickness, the required statement explaining R-
values set forth in the rule, and/or the coverage area for
that thickness; and
- more -
(Hechinger--01/28/93)
-- an insulation thickness, but failing to disclose the R-
value at that thickness and/or the required statement
explaining R-values set forth in the rule.
The FTC charged also that some of Hechinger's ads stated or
implied that insulation can cut fuel bills or fuel use but failed
to include the rule's required statement that savings vary and
that the consumer should see the seller's fact sheet for further
information about energy savings. In addition, Hechinger
allegedly failed to make fact sheets available to consumers as
required by the rule.
The Hechinger Company is a Delaware corporation with its
home office in Landover, Maryland. The complaint and proposed
consent decree were filed in the U.S. District Court for the
District of Maryland, in Baltimore, by the Department of Justice,
on behalf of the FTC, on Jan. 27. The consent decree is subject
to court approval.
NOTE: A consent decree is for settlement purposes only and does
not constitute admission of a law violation. Consent decrees
have the force of law when signed by the judge.
Copies of the complaint and proposed consent decree will be
available soon from the FTC's Public Reference Branch, Room. 130,
6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580;
202-326-2222; TTY 1-866-653-4261.
# # #
MEDIA CONTACT: Howard Shapiro, Office of Public Affairs,
202-326-2176
STAFF CONTACT: Kent C. Howerton, Bureau of Consumer
Protection, 202-326-3013
or
Elaine D. Kolish, Bureau of Consumer
Protection, 202-326-3042
(Civil Action No. -- not available at press time)
(FTC File No. 912 3294)
(Hechinger)