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FTC Halts Bogus Claims For FuelMax

August 23, 2006
The manufacturer of a magnetic "fuel saving" and emissions-reduction device that did not save fuel or reduce emissions will pay $4.2 million to settle Federal Trade Commission charges that his advertising claims were false.

The FTC will seek to provide redress to consumers who bought the device based on the false advertising claims. In addition, the defendants will be banned from selling or manufacturing magnetic fuel savings and emissions reduction devices.

"Consumers are looking for ways to increase fuel efficiency and save money at the pump," said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. "There are some practical ways to do that, like following the maintenance schedule in your owner's manual, combining errands, and avoiding jack-rabbit starts. The fact is that many products that claim to save fuel don't work, and worse yet, may damage your car and end up costing you more."

In October 2004, the FTC filed a suit in U.S. district court charging that marketers, and the resellers working with them, were making deceptive claims for FuelMax and Super FuelMax products. The Web site operators and their affiliates -- spammers who drove traffic to their sites -- made claims such as:

• Increases gas mileage 27%;
• Reduces Fuel Consumption;
• Reduces Emissions.

The FTC stated that the magnetic "fuel saver" does not save fuel, does not increase gas mileage, and does not reduce emissions. The agency charged that the false claims violate the FTC Act. The agency also said that by providing promotional materials with false claims to affiliates, the defendants provided them with the means to violate the FTC Act.

In May 2005, the Web site marketers and spammers who promoted the products settled the FTC suits. The settlements barred violations of the FTC Act and the CAN-SPAM Act and barred them from making deceptive claims.

This latest action settles charges against the manufacturer, International Research & Development Corp. of Nevada, and its principal, Anthony Renda. It imposes a lifetime ban on the manufacture, advertising, or sale of FuelMAX, Super FuelMAX, or any similar fuel saving or emissions-decreasing product.

In addition, it prohibits false or unsubstantiated claims and misrepresentations that products increase gas mileage or reduce emissions, and bars the defendants from misrepresenting the contents, validity, results, conclusions, or interpretations of studies and bans them from making performance or efficacy claims unless they possess and rely upon competent and reliable evidence.

It also stops them from assisting others or providing others with the means and instrumentalities to commit deception and orders them to pay $4.2 million for consumer redress.

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