Consumer Protection Mission
Part 3 Consent Orders Issued
Type of Matter
|Exxon Corporation||D9281||9/12/97||Unsubstantiated Performance Claims||Gasoline|
|New Balance Athletic Shoe, Inc.||D9268||12/02/96||Country-of-Origin Labeling||Athletic Footwear|
|(RustEvader Corporation)||D9274||10/30/96||False and Unsubstantiated Efficacy and Performance Claims||Automobile Electronic Corrosion-Control Device|
1A company name shown in parentheses is for identification of the case only. The company is not a respondent in the item shown in the table.
The Commission approved a consent order with Exxon, the largest oil company in the United States, that triggered the launch of a massive consumer education and advertising campaign informing consumers that regular gasoline, not the more expensive high octane, is the right fuel for most cars. Exxon is running television advertisements in 18 major metropolitan markets and distributing consumer information brochures at its service stations nationwide. The order settled allegations that the company made unsubstantiated and misleading advertising claims about the ability of its high-octane gasoline to clean engines and reduce automobile maintenance costs. The order also prohibits Exxon from making similar claims without adequate scientific evidence to back them up.
New Balance Athletic Shoe, Inc.
New Balance settled allegations that it misrepresented that all of its athletic footwear is made in the United States when a substantial amount is made wholly abroad. In addition, New Balance allegedly misrepresented the quantity of footwear it exports to Japan annually. The consent order prohibits the company from such misrepresentations in the future.
David F. McCready
The Commission finalized a consent order with David McCready, former president of RustEvader and inventor of a purported electronic corrosion-control device for motor vehicles, settling allegations that he made false claims about the effectiveness of the device, used a deceptive demonstration, and illegally conditioned warranty coverage on inspections by an authorized RustEvader dealer. The order requires McCready to pay $200,000 for redress to consumers. It bars him from using the names "Rust Evader" or "Rust Buster" for this or similar devices, from misrepresenting performance or test results, and from conditioning warranty coverage on the purchase of certain brand-named or trade-named products or services. The order also requires him to have substantiation to back up performance or efficacy claims about any product for use in motor vehicles. (Also see RustEvader Corporation, page 89.)