FTC: Exxon to retract claims about octane

Exxon Corp. has agreed to run advertisements retracting claims that premium gasoline makes cars run more efficiently, the U.S. Federal Trade Commission said. The agency said Exxon's claim that its gasoline burned more cleanly and left fewer engine deposits could not be substantiated. Joel Winston, FTC assistant director of advertising practices, said the out-of-court settlement marks "the first time a major U.S. oil company is coming out and telling the truth about octane needs and telling

June 30, 1997

3 min read

Exxon Corp. has agreed to run advertisements retracting claims that premium gasoline makes cars run more efficiently, the U.S. Federal Trade Commission said.

The agency said Exxon's claim that its gasoline burned more cleanly and left fewer engine deposits could not be substantiated.

Joel Winston, FTC assistant director of advertising practices, said the out-of-court settlement marks "the first time a major U.S. oil company is coming out and telling the truth about octane needs and telling consumers they don't need high-octane gas."

He said Exxon will air 15-sec. television ads in 18 large metropolitan markets during September-December until FTC determines 75% of the television audience has been reached. The firm also will make information brochures available at its 8,700 service stations.

FTC filed an administrative action against Exxon last September, alleging it had made false advertising claims for its premium gasoline (OGJ, Sept. 23, 1996, p. 43).

For several years, FTC has campaigned against oil company claims touting their premium gasolines. Exxon is the fourth oil firm to be cited in an enforcement action. In the past, FTC has usually required firms to cease running offending ads.

Misleading ads

According to the FTC complaint, Exxon aired television and radio ads that promoted Exxon gasolines, including Exxon 93 Supreme. The ads claimed that "Exxon gasoline keeps your engine cleaner...So it can help drive down maintenance costs," and "Exxon 93 Supreme...with the power to drive down maintenance costs. Gas that can save you money. For more reliable performance."

FTC alleged the Exxon ads represented that consumers could reduce significantly their auto maintenance costs by switching to Exxon or by switching from lower-octane Exxon gasolines.

The complaint said Exxon did not have a reasonable basis for these claims. Federal rules require that all gasolines, no matter what octane level, contain additives that prevent the accumulation of deposits in engines or fuel supply systems.

The settlement was reached prior to a trial on the FTC's charges. It bars Exxon from making unsubstantiated claims about the engine-cleaning ability of its gasoline and requires a television ad featuring an Exxon official who states, "Most cars will run properly on regular octane, so check your owner's manual and stop by Exxon for this helpful pamphlet."

Amoco Oil Co., Sun Co., and Unocal Corp. had previously settled FTC charges in connection with superiority claims for their high-octane gasolines.

The Commission voted 4-0 to accept the consent agreement, with Commissioner Mary Azcuenaga dissenting in part and Commissioner Roscoe Starek recused.

Azcuenaga said the order "provides less relief than the commission contemplated when it issued the complaint and less relief than it ordered against other companies that previously have settled similar charges."

She said Exxon should have been subjected to a long-term injunction against future claims.

Azcuenaga argued the FTC-ordered ad campaign is unlikely to be effective: "The commercial is uninspired at best, and we have no basis for concluding that it will be effective in conveying the desired message to consumers or in changing their misperceptions. The order does not provide a performance standard or other means of assuring that this goal will be met."