Mitch A
I guess you missed the FTC action against Spit Fire.. lol
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
SPLITFIRE, INC., a corporation.
FILE NO. 952-3029
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain acts
and practices of SplitFire, Inc., a corporation ("proposed respondent").
Proposed respondent, having been represented by counsel, is willing to enter
into an agreement containing a consent order resolving the allegations
contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between SplitFire, Inc., and counsel for the
Federal Trade Commission that:
1. Proposed respondent SplitFire, Inc. is an Illinois corporation with its
principal office or place of business at 4065 Commercial Avenue, Northbrook,
Illinois, 60062-1851.
2. Proposed respondent admits all the jurisdictional facts set forth in the
draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a statement of
findings of fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge or contest
the validity of the order entered pursuant to this agreement.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft
complaint, will be placed on the public record for a period of sixty (60)
days and information about it publicly released. The Commission thereafter
may either withdraw its acceptance of this agreement and so notify proposed
respondent, in which event it will take such action as it may consider
appropriate, or issue and serve its complaint (in such form as the
circumstances may require) and decision in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not constitute an
admission by proposed respondent that the law has been violated as alleged
in the draft complaint, or that the facts as alleged in the draft complaint,
other than the jurisdictional facts, are true.
6. This agreement contemplates that, if it is accepted by the Commission,
and if such acceptance is not subsequently withdrawn by the Commission
pursuant to the provisions of Section 2.34 of the Commission's Rules, the
Commission may, without further notice to proposed respondent, (1) issue its
complaint corresponding in form and substance with the attached draft
complaint and its decision containing the following order in disposition of
the proceeding, and (2) make information about it public. When so entered,
the order shall have the same force and effect and may be altered, modified,
or set aside in the same manner and within the same time provided by statute
for other orders. The order shall become final upon service. Delivery of the
complaint and the decision and order to proposed respondent by any means
specified in Section 4.4 of the Commission's Rules shall constitute service.
Proposed respondent waives any right it may have to any other manner of
service. The complaint may be used in construing the terms of the order. No
agreement, understanding, representation, or interpretation not contained in
the order or in the agreement may be used to vary or contradict the terms of
the order.
7. Proposed respondent has read the draft complaint and consent order.
Proposed respondent understands it may be liable for civil penalties in the
amount provided by law and other appropriate relief for each violation of
the order after it becomes final.
ORDER
DEFINITIONS
For the purposes of this order, the following definitions shall apply:
1. "Competent and reliable scientific evidence" shall mean tests, analyses,
research, studies, or other evidence based on the expertise of professionals
in the relevant area, that have been conducted and evaluated in an objective
manner by persons qualified to do so, using procedures generally accepted in
the profession to yield accurate and reliable results.
2. Unless otherwise specified, "Respondent" shall mean SplitFire, Inc., a
corporation, its successors and assigns, and its officers, agents,
representatives and employees. For purposes of this order, "successors"
shall include, but not be limited to:
(a) any person who
(1) markets the SplitFire spark plug, any split-electrode spark plug, or any
spark plug with more than two electrodes; and
(2) holds or has held an ownership interest in and/or serves or has served
as an officer of respondent SplitFire, Inc.; and
(b) any entity that
(1) markets the SplitFire spark plug, any split-electrode spark plug, or any
spark plug with more than two electrodes; and
(2) is owned or controlled, wholly or in part, by any person who holds or
has held an ownership interest in respondent SplitFire, Inc. and/or serves
or has served as an officer of respondent SplitFire, Inc.
3. "In or affecting commerce" shall mean as defined in Section 4 of the
Federal Trade Commission Act, 15 U.S.C. 44.
IT IS ORDERED that respondent, directly or through any corporation,
subsidiary, division, or other device, in connection with the manufacturing,
labeling, advertising, promotion, offering for sale, sale, or distribution
of the "SplitFire Spark Plug," or any other motor vehicle product, in or
affecting commerce, shall not make any representation, in any manner,
expressly or by implication, about:
The effect of such product on a vehicle's fuel economy;
The effect of such product on a vehicle's level of emissions;
The effect of such product on a vehicle's horsepower; or
The comparative or absolute cost savings that such product will contribute
to or achieve, unless, at the time it is made, respondent possesses and
relies upon competent and reliable scientific evidence that substantiates
the representation.
IT IS FURTHER ORDERED that respondent, directly or through any corporation,
subsidiary, division, or other device, in connection with the manufacturing,
labeling, advertising, promotion, offering for sale, sale, or distribution
of any motor vehicle product, in or affecting commerce, shall not
misrepresent, in any manner, expressly or by implication, the existence,
contents, validity, results, conclusions or interpretations of any test,
study, or research.
IT IS FURTHER ORDERED that respondent, directly or through any corporation,
subsidiary, division, or other device, in connection with the manufacturing,
labeling, advertising, promotion, offering for sale, sale, or distribution
of any motor vehicle product, in or affecting commerce, shall not represent,
in any manner, expressly or by implication, that the experience represented
by any user testimonial or endorsement of the product represents the typical
or ordinary experience of members of the public who use the product, unless:
At the time it is made, respondent possesses and relies upon competent and
reliable scientific evidence that substantiates the representation; or
Respondent discloses, clearly and prominently, and in close proximity to the
endorsement or testimonial, either:
What the generally expected results would be for users of the product, or
The limited applicability of the endorser's experience to what consumers may
generally expect to achieve, that is, that consumers should not expect to
experience similar results.
For purposes of this Part, "endorsement" shall mean as defined in 16 C.F.R.
255.0(b).
IT IS FURTHER ORDERED that respondent, directly or through any corporation,
subsidiary, division, or other device, in connection with the manufacturing,
labeling, advertising, promotion, offering for sale, sale, or distribution
of any motor vehicle product, in or affecting commerce, shall not make any
representation, in any manner, expressly or by implication, about the
benefits, performance, or efficacy of such product, unless, at the time the
representation is made, respondent possesses and relies upon competent and
reliable evidence, which when appropriate must be competent and reliable
scientific evidence, that substantiates the representation.
IT IS FURTHER ORDERED that respondent SplitFire, Inc. and its successors and
assigns shall, for five (5) years after the last date of dissemination of
any representation covered by this order, maintain and upon request make
available to the Federal Trade Commission for inspection and copying:
A. All advertisements and promotional materials containing the
representation;
B. All materials that were relied upon in disseminating the representation;
and
C. All tests, reports, studies, surveys, demonstrations, or other evidence
in their possession or control that contradict, qualify, or call into
question the representation, or the basis relied upon for the
representation, including complaints and other communications with consumers
or with governmental or consumer protection organizations.
IT IS FURTHER ORDERED that respondent SplitFire, Inc. and its successors and
assigns, shall deliver a copy of this order to all current and future
principals, officers, directors, and managers, and to all current and future
employees, agents, and representatives having responsibilities with respect
to the subject matter of this order, and shall secure from each such person
a signed and dated statement acknowledging receipt of the order. Respondent
shall deliver this order to current personnel within thirty (30) days after
the date of service of this order, and to future personnel within thirty
(30) days after the person assumes such position or responsibilities.
IT IS FURTHER ORDERED that respondent SplitFire, Inc., and its successors
and assigns, shall notify the Commission at least thirty (30) days prior to
any change in the corporation that may affect compliance obligations arising
under this order, including but not limited to a dissolution, assignment,
sale, merger, or other action that would
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