Ashland, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 962-3072]

Ashland, Inc.; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged

violations of federal law prohibiting unfair or deceptive acts or

practices or unfair methods of competition. The attached Analysis to

Aid Public Comment describes both the allegations in the draft

complaint that accompanies the consent agreement and the terms of the

consent order--embodied in the consent agreement--that would settle

these allegations.

DATES: Comments must be received on or before December 15, 1997.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Elaine D. Kolish, Federal Trade Commission, S-4302, 6th St. and

Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-3042. Robert

Frisby, Federal Trade Commission, S-4302, 6th St. and Pennsylvania

Ave., NW., Washington, DC 20580. (202) 326-2098.

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 above-captioned 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. The following Analysis to Aid

Public Comment describes the terms of the consent agreement, and the

allegations in the accompanying complaint. An electronic copy of the

full text of the consent agreement package can be obtained from the

Commission Actions section of the FTC Home Page (for October 8, 1997),

on the World Wide Web, at ``http://www.ftc.gov/os/actions97.htm.'' A

paper copy can be obtained from the FTC Public Reference Room, Room H-

130, Sixth Street and Pennsylvania Ave., NW., Washington, DC 20580

either in person or by calling (202) 326-3627. 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).

Analysis of Proposed Consent Order To Aid Public Comment

The Federal Trade Commission has accepted, subject to final

approval, an agreement to a proposed consent order from Ashland, Inc.

(``Ashland''). The agreement would settle a proposed complaint by the

Federal Trade Commission that Ashland engaged in unfair or deceptive

acts or practices in violation of section 5(a) of the Federal Trade

Commission Act.

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 practices related to the sale of

Valvoline TM8 Engine Treatment (``TM8''). The proposed complaint

charges that, through the use of statements contained in its

advertisements and promotional materials, Ashland made the following

unsubstantiated representations: (1) TM8 bonds Teflon to engine parts;

(2) compared to motor oil alone, TM8: reduces engine wear; reduces

camshaft bearing wear by up to 75%; reduces main bearing wear by up to

75%; under high temperature conditions experienced by engines, provides

twice as much wear protection; extends the duration of engine life; and

improves fuel economy; and (3) One treatment of TM8 lasts for 50,000

miles. Lastly, the proposed complaint alleges that Ashland falsely

represented that tests prove that, compared to motor oil alone, TM8:

reduces camshaft bearing wear by up to 75%; reduces main bearing wear

by up to 75%; under high temperature conditions experienced by engines,

provides twice as much wear protection; and improves fuel economy.

The proposed consent order contains provisions designed to prevent

Ashland from engaging in similar acts and practices in the future. Part

I of the proposed order prohibits Ashland from making any

representation about the performance or attributes of any engine

treatment unless, at the time it makes the representation, Ashland

possesses and relies upon competent and reliable evidence, which when

appropriate must be scientific evidence, that substantiates the

representation. Part I also prohibits Ashland from misrepresenting the

results of tests or studies.

The proposed order also contains standards provisions regarding

record-keeping, notification of changes in corporate status,

distribution of the order, termination of the order, and the filing of

a compliance report.

The purpose of this analysis is to facilitate public comment on the

proposed order, and it is not intended to constitute an official

interpretation of the agreement and the proposed order or to modify

their terms in any way.

Donald S. Clark,

Secretary.

[FR Doc. 97-27358 Filed 10-15-97; 8:45 am]

BILLING CODE 6750-01-M