FOR RELEASE: OCTOBER 15, 1992
WILLIAM P. WRIGHT SETTLES FTC CHARGES OF OVERSTATING
OCTANE RATING OF GASOLINE AND GASOHOL, OTHER RULE VIOLATIONS
William P. Wright, a distributor and retailer of gasoline
and gasohol in California and Nevada, has agreed to settle
Federal Trade Commission charges that he overstated the octane
ratings displayed on gasoline pumps, and failed to properly
certify the octane ratings of gas he sold, among other violations
of the FTC's Octane Labeling Rule. The settlement agreement
prohibits future Octane Rule violations and misrepresentations
concerning the octane level of gasoline or gasohol sold by
Wright.
Wright, who lives in Henderson, Nevada, was sued
individually and in his capacity as an officer and director of
Wright Companies, Express Oil and Gas of Nevada, and Diversified
Desert Properties, Inc.
Octane ratings are a measure of the gasoline's ability to
resist automotive engine "knock" or "ping," which results from an
uneven burning of the compressed fuel-air mixture, notes an FTC
consumer fact sheet. The FTC's Octane Rule requires retailers to
disclose the octane rating of their gasoline by posting the now-
familiar bright yellow sticker on each pump. Under the rule,
gasoline refiners and importers determine the octane rating.
Thereafter, each entity in the distribution chain must certify
the octane rating to the next recipient, based either on its own
determination or the certification it received. The disclosure
requirements of the Octane Rule are intended to help consumers
choose the gasolines which are properly suited to their vehicles.
- more -
(W.P. Wright settlement--10/15/82)
The FTC filed complaints against Mr. Wright, and Wright Cos.
last February. Wright Cos. agreed to settle the charges at that
time under a consent decree which, for the first time, clearly
signaled that marketers of gasohol and similar blends of gasoline
must follow the rule's requirements. The related settlement
announced today covers gasohol.
In its original complaint detailing the charges against
Wright, the FTC asked the court to prohibit him from engaging in
future rule violations, and to order him to pay a civil penalty.
The settlement does not provide for the payment of civil
penalties, however, as Wright has filed for bankruptcy under
Chapter 11. If it is later found that Wright misrepresented his
financial status, however, the FTC could ask the court to assess
a civil penalty at that time.
The consent decree to settle the charges prohibits Wright
from:
-- violating any provision of the Octane Rule;
-- misrepresenting, directly or by implication, the octane
level of any gasoline, including gas blended with alcohol,
oxygenates, or blending agents; and
-- representing, without competent and reliable evidence as
substantiation, the octane level of any such gasoline.
The settlement also includes various reporting requirements
designed to assist the FTC in monitoring Wright's compliance.
The consent decree was filed in U.S. District Court for the
Southern District of California, in San Diego, on Oct. 14, and
was approved by the judge the same day.
The FTC's Dallas Regional Office handled the investigation
and litigation of this case.
NOTE: This consent decree is for settlement purposes only and
does not constitute an admission by the defendant of a law
violation. Consent decrees are subject to court approval and
have the force of law when signed by the judge.
(W.P. Wright settlement--10/15/92)
Copies of the consent decree, as well as the release issued
at the time the FTC filed its charges in the cases, 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. The FTC consumer fact sheet referenced above
is titled "Octane Ratings." It provides answers to some typical
consumer questions about octane and is available free from the
same address.
# # #
MEDIA CONTACT: Howard Shapiro, Office of Public Affairs
202-326-2176
STAFF CONTACT: Tom Carter or David Griggs
Dallas Regional Office
100 North Central Expressway, Suite 500
Dallas, Texas 75201
214-767-5503
(Civil Action No. 92-281H (CM))
(wright2)