Prolong Super Lubricants, Inc.; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 972 3014]

Prolong Super Lubricants, 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 November 8, 1999.

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

Room 159, 600 Pennsylvania Ave., NW, Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Gerald Wright, Federal Trade

Commission, Western Regional Office, 901 Market St., Suite 570, San

Francisco, CA 94103 (415) 356-5270.

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

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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 complaint. An electronic

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

from the FTC Home Page (for September 2, 1999), 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, 600

Pennsylvania Avenue, NW, Washington, D.C. 20580, either in person or by

calling (202) 326-3627.

Public comment is invited. Comments should be directed to: FTC/

Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW,

Washington, D.C. 20580. Two paper copies of each comment should be

filed, and should be accompanied, if possible, by a 3\1/2\ inch

diskette containing an electronic copy of the comment. 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 Prolong Super

Lubricants, Inc. (``PSL''). The agreement would settle a proposed

complaint by the Federal Trade Commission that PSL 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

Prolong-brand Engine Treatment Concentrate (``ETC''). Prolong ETC is

marketed for use as a supplemental additive to the motor oil used in

gasoline automobile engines. The proposed complaint charges that,

through the use of statements contained in PSL's television infomercial

and other promotional materials, PSL made the following unsubstantiated

representations: (1) Compared to motor oil alone, ETC reduces engine

wear at start up; (2) compared to motor oil alone, ETC extends the

duration of engine life; (3) ETC reduces corrosion in engines; and (4)

ETC protects against engine breakdowns. In addition, the proposed

complaint alleges that PSL made unsubstantiated claims that benefits

that may be achieved through use of ETC in race cars or under racing

conditions can be achieved by ordinary consumers in ordinary driving;

and that consumer testimonials in PSL's infomercial reflected the

typical and ordinary experience of consumers.

The proposed consent order contains provisions designed to prevent

PSL from engaging in similar acts and practices in the future. Part I

of the proposed order requires PSL to have scientific evidence

substantiating claims that, compared to motor oil alone, ETC or any

other product for use in an automobile, reduces engine wear at start

up, or extends the duration of engine life, under any circumstances or

conditions or by any quantitative amount. Similarly, Part I of the

order requires PSL to have scientific evidence substantiating claims

that ETC or any other product for use in an automobile reduces

corrosion in engines, or protects against engine breakdowns, under any

circumstances or conditions or by any quantitative amount.

Part I of the order also requires PSL to have scientific evidence

substantiating claims that benefits achieved in race cars or under

racing conditions will be achieved in ordinary automobiles in

conventional use. Similarly, Part IV of the order requires PSL to have

scientific evidence substantiating user testimonials or endorsements,

or disclosing the limitations on the applicability of the speaker's

experience to ordinary users.

Moreover, Part II of the proposed order requires PSL to have

competent and reliable evidence, scientific where appropriate,

substantiating any claim about the performance, benefits, efficacy,

attributes or use of any product it sells. In addition, the proposed

order prohibits PSL from misrepresenting the results of tests or

studies relating to any product, or utilizing demonstrations to

misrepresent a material quality, feature or merit of any product, or

the superiority or comparability of a product.

The order also contains standard 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.

By direction of the Commission

Benjamin I. Berman,

Acting Secretary.

Statement of Commissioner Orson Swindle Concurring in Part and

Dissenting in Part

The Commission accepts for public comment a consent agreement

settling allegations that Prolong Super Lubricants, Inc., et al.

(``Prolong''), made unsubstantiated claims about the attributes and

benefits of Prolong's motor oil additive. I support the provisions in

the proposed order prohibiting Prolong from making such claims in the

future without adequate substantiation.

The consent agreement, however, also contains provisions

prohibiting Prolong, in connection with the sale of any product, from

misrepresenting the existence or results of tests and from

misrepresenting that a demonstration confirms the benefits of a

product. While firms should not misrepresent the existence or results

of tests or demonstrations, it is inappropriate to include specific

establishment and demonstration requirements as remedies in an order

without corresponding complaint allegations. In this case, and in

others from the recent past, there is a troubling lack of symmetry

between the complaint and the order.

Accordingly, I dissent as to Paragraphs III and V of the proposed

order.

[FR Doc. 99-23417 Filed 9-8-99; 8:45 am]

BILLING CODE 6750-01-M