FOR RELEASE: JULY 17, 1992
MARKETER OF PETROMIZER "GAS-SAVING DEVICE"
AGREES TO SETTLE FEDERAL TRADE COMMISSION CHARGES
Robert H. Morrison, Jr., a director of Advanced Automotive
Technologies, Inc. -- a Phoenix, Arizona-based firm that marketed
a purported gas-saving device called the "PetroMizer" -- has
entered into an agreement with the Federal Trade Commission to
pay $35,000 for consumer redress and to be bound by a court order
prohibiting him from making any false, misleading or unsubstan-
tiated representations regarding any "aftermarket" automotive
product he sells in the future. Morrison lives in Moorpark,
California.
The agreement, if approved by the U.S. District Court in
Arizona, would settle FTC charges stemming from a complaint filed
against Morrison in 1991. The FTC alleged that he participated
in the placement of full-page ads in newspapers across the coun-
try touting that the PetroMizer would increase gas mileage by 28
percent, reduce automobile emissions, and that it was developed
under a grant from NASA, among other allegedly false statements.
Upon the filing of the FTC complaint, the court immediately
granted a temporary restraining order prohibiting the challenged
practices.
(In addition to naming Morrison and Advanced Automotive, the
FTC complaint named a second firm, Amerdream Corporation, and the
president of both companies, Frank J. Sarcone. The complaint
detailed the allegedly-deceptive marketing of the PetroMizer, as
well as a diet plan called the Ultimate Solution Diet Program.
The court froze the assets of both corporations and Sarcone
immediately after the FTC filed its complaint. Last January,
the court entered a default judgment against both corporations
and Sarcone that includes permanent prohibitions on the chal-
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Morrison--07/17/92)
lenged conduct, and requires them to pay nearly $675,000 for
redress. The money collected from Morrison will be combined with
as much of the funds as can be collected on the judgment against
the other defendants and, if practical, distributed to consumers
who purchased either of the products.)
The proposed consent judgment settling the charges against
Morrison would prohibit him from making any false or misleading
statement in connection with marketing any aftermarket automotive
product (additive substances, or devices or equipment intended as
additions, replacements or modifications of original automotive
components). Further, he would be required to have substantia-
tion for any statement he makes about the performance or efficacy
of any such device. The $35,000 payment required under the set-
tlement would be paid in two installments within 90 days after
the court approves the agreement. The settlement also contains a
standard provision permitting the FTC to reconsider the redress
amount should Morrison be found to have misrepresented his finan-
cial condition, as well as other standard record-keeping provi-
sions. Finally, Morrison would be required to give a copy of the
consent judgment to every officer, employee or consultant who
markets any aftermarket auto product he sells.
The proposed consent judgment was filed in U.S. District
Court for the District of Arizona, in Phoenix, this morning. It
is subject to court approval. The case is being handled by the
FTC's Denver Regional Office.
NOTE: This consent judgment is for settlement purposes only and
does not constitute an admission by the defendant of a law
violation. Consent judgments have the force of law when signed
by the judge.
Copies of the proposed consent judgment, as well as news
releases issued at previous stages in the case, are available
from the FTC's Public Reference Branch, Room 130, 6th Street and
Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222;
TTY 1-866-653-4261.
# # #
MEDIA CONTACT: Bonnie Jansen, Office of Public Affairs
202-326-2161
STAFF CONTACT: Claude C. Wild III, Denver Regional Office
1405 Curtis Street, Suite 2900
Denver, Colorado 80202-2393
303-844-2271
(Civil Action No. 91-0505 PHX RCB) (FTC Matter No. X910028)
(Morrison)