FOR RELEASE: January 31, 1992
MANUFACTURER OF HOME INSULATION CHARGED WITH VIOLATING R-VALUE RULE; WILL PAY CIVIL PENALTY TO SETTLE COMPLAINT
The Federal Trade Commission has charged the manufacturer and marketer of "Perma R Plus" home insulation with overstating the R-value, or insulating ability, of the product. The complaint names LeClair Industries, Inc. and Perma R Products of Mississippi, Inc., both of Grenada, Mississippi; Perma R Products of Tennessee, Inc., in Johnson City; and Armond F. LeClair, president of all three companies. A proposed consent decree to settle the charges, filed in federal court with the complaint, would prohibit future violations of the FTC's R-Value Rule with regard to any home insulation the defendants manufacture and sell, and require them to pay a civil penalty of $5,000. The R-Value is a measure of an insulation's resistance to heat flow: the higher the R-value, the greater the insulating power. The FTC's R-value Rule requires manufacturers to disclose the R-values of their home-insulation products. Under the rule, R-values claimed on labels, fact sheets and promotional materials must be determined according to specific test procedures, and manufacturers must maintain specific records concerning those tests.
The "Perma R Plus" home insulation sold by the defendants was a polystyrene sheathing board insulation with foil-facing on both sides. This type of product is often used as insulation in the exterior walls of new homes. The defendants have ceased producing and selling this product, although it continues to sell other home insulation products that are not at issue in this case. - more -
(Perma R Products--01/31/92)
According to the complaint, the defendants manufactured, distributed, sold and promoted "Perma R Plus" home insulation with R-values that were not based on R-value tests conducted according to the test procedures required by the rule. The FTC also charged that the actual R-value of "Perma R Plus" home insulation was more than 10% below the R-values displayed in fact sheets, labels, and promotional materials. In addition, the FTC charged the defendants with failing to keep all R-value test records required by the rule.
The FTC's complaint and proposed consent decree were filed by the Department of Justice on the FTC's behalf, in the U.S. District Court for the Northern District of Mississippi, on January 29.
NOTE: A consent decree is for settlement purposes only and does not constitute admission of a law violation. A consent decree is subject to court approval and has the force of law when signed by the judge.
Copies of the complaint and proposed consent decree will be available shortly from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Ave., N.W., Washington, D.C. 20580; 202-326-2222; TTY 1-866-653-4261
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MEDIA CONTACT: Howard Shapiro, Office of Public Affairs, 202-326-2176
STAFF CONTACT: Kent C. Howerton, Bureau of Consumer Protection, 202-326-3013
(Civil Action No. 3:92-CV-012-B-D)
(FTC File No.902 3002)