Castrol North America, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 972-3209]

Castrol North America, 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 Comments 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 6, 1999.

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

Room 159, 600 Pennsylvania Ave., NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: C. Lee Peeler or Michael Derschowitz,

FTC/S-4002, 600 Pennsylvania Ave., NW, Washington, DC 20580, (202) 326-

3090 or 326-3158.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 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 complaint. An electronic copy of the full text of

the consent agreement package can be obtained from the FTC Home Page

(for September 15, 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, DC 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, DC 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 comments. 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

Sec. 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 containing a consent order from respondent

Castrol North America Inc. (``Castrol'').

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.

Castrol manufactures and sells automotive products, including fuel

additive products added by consumers to a car's gas tank. This matter

concerns allegedly deceptive advertising claims regarding the

performance attributes of a fuel additive product, Castrol's Syntec

Power System (``Castrol Syntec''). The Commission's proposed complaint

alleges that Castrol made unsubstantiated claims that Castrol Syntec

significantly improves engine power and acceleration for motor vehicles

generally. The complaint also challenges as unsubstantiated the claim

that Castrol Syntec is superior to other fuel system treatments in

improving engine power and acceleration. Finally, the complaint

challenges as false or misleading the claims the laboratory tests prove

that Castrol Syntec (a) significantly improves engine power and

acceleration, and (b) is superior to other fuel system treatments in

improving engine power and acceleration.

The proposed consent order contains provisions designed to prevent

respondent from engaging in similar acts and practices in the future.

Part I of the proposed order prohibits respondent claiming that

Castrol Syntec or any other fuel oil additive improves power or

acceleration, or is superior to other products in this regard, unless

the claim is substantiated by competent and reliable scientific

evidence. Part II of the proposed order requires Castrol to have

substantiation for any representation concerning the performance,

benefits, efficacy, attributes of use of Castrol Syntec or any other

fuel additive product.

Part III of the proposed order prohibits respondent from

misrepresenting the existence, contents, validity, results,

conclusions, or interpretations of any test, study or research done on

any fuel additive product.

Part IV of the proposed order requires respondent to maintain

copies of all materials relied upon in making any representation

covered by the order.

Part V of the proposed order requires respondent to distribute

copies of the order to its operating divisions and to

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various officers, agents and employees of respondent.

Part VI of the proposed order requires respondent to notify the

Commission of any changes in corporate structure that might affect

compliance with the order.

Part VII of the proposed order requires respondent to file with the

Commission one or more reports detailing compliance with the order.

Part VIII of the proposed order is a ``sunset'' provision,

dictating that the order will terminate twenty years from the date it

is issued or twenty years after a complaint is filed in federal court,

by either the United States or the FTC, alleging any violation of the

order.

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

proposed order. It is not intended to constitute an official

interpretation of the agreement and proposed order or to modify in any

way their terms.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 99-26033 Filed 10-05-99; 8:45 am]

BILLING CODE 6750-01-M