FOR IMMEDIATE RELEASE: August 23, 1989 FTC CHARGES "FUEL SAVING" DEVICE MAKER WITH MAKING FALSE AND UNSUBSTANTIATED AD CLAIMS; CONSENT AGREEMENT SETTLES CHARGES The Federal Trade Commission has charged Nutronics Corp. of Longmont, Colorado, with making false and unsubstantiated claims in advertising its fuel-saving device known as the Alter-Brake System (ABS). The company has agreed not to misrepresent the device in the future. The ABS is an "automobile retrofit device" designed to disengage the automobile alternator during acceleration, thereby momentarily decreasing the load on the engine, and resulting in claimed fuel savings and increased engine performance. According to the Commission's complaint, advertising for the ABS claimed that: ABS increases gas mileage from 12-28 percent; through increased fuel economy, ABS "will pay for itself in only a few months"; the ABS has been endorsed for consumer use by the Departments of Energy and Commerce; and the DOE and DOC have conducted scientific tests which substantiate a gas mileage increase of 24 percent. All of these claims are false and misleading, the complaint charges. Under a proposed consent agreement placed on the public record for comment, Nutronics has agreed to have "competent and reliable" scientific research to substantiate its increased fuel- savings claims, and to cease misrepresenting that its ABS device has been approved by the government for sale to the public. Nutronics has also agreed to include the following disclaimer in any of its continuing ads: "Reminder: The actual fuel savings or level of performance attained may vary, depending on the kind of driving you do, how you drive, and the condition of your car." The Commission's complaint also names Gary Kelsay, president and CEO of Nutronics Corp. The investigation was handled by the FTC's Denver Regional Office. More A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future violations. Each violation of such an order may result in a civil penalty of up to $10,000. The consent agreement appeared in the Federal Register on August 22. It will be subject to public comment for sixty days, until October 23, after which the Commission will decide whether to make it final. Comments should be addressed to the Office of the Secretary, FTC, 6th St. & Pennsylvania Ave., N.W., Washington, D.C. 20580. Copies of the agreement, the complaint, and an analysis of the agreement are available from the FTC's Public Reference Branch, Rm. 130, 6th St. & Pennsylvania Ave., N.W., Washington D.C. 20580; 202-326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Howard Shapiro, Office of Public Affairs, 202-326-2176 STAFF CONTACT: Claude C. Wild III, Denver Regional Office, 303-844-2271 (FTC File No. 882 3248) (nutron)