OTTAWA, December 20, 2005 -- The Competition Bureau has filed two consent agreements against Canadian spammers of a bogus product called Fuel Saver Pro, which claims to increase fuel efficiency and reduce emissions.
Acting on information obtained under the "Button Pusher Spam Sweep" from the U.S. Federal Trade Commission (FTC), the Bureau commenced an inquiry into the marketing practices of several individuals involved in the sale and promotion of the Fuel Saver Pro, which sold for $89.99 (U.S.).
The Bureau's investigation revealed that between January 2002 and May 2004, Cory Grattan and Tracey Grattan of Douglas, N.B., and Mike Stothers, of Montreal, Quebec, worked with an American distributor of the Fuel Saver Pro. These individuals sent spam containing false or misleading representations about the ability of the product to increase fuel efficiency and reduce emissions. The emails contained links to a number of Internet sites where the product could be purchased.
It is estimated that there are as many as 400 victims - from the operations of these Canadian spammers alone - in Canada, the U.S., Switzerland, the United Kingdom, France and Australia.
Extensive testing conducted on behalf of the FTC, as well as testing by the U.S. Environmental Protection Agency, has concluded that the claims made about the Fuel Saver Pro cannot be substantiated.
"The close working relationship that we have developed with the FTC and other law enforcement agencies is very effective in combatting the many deceptive scams that transcend borders," said Raymond Pierce, Deputy Commissioner. "The Bureau will continue to pursue those making bogus performance claims. If it sounds too good to be true, it probably is."
The consent agreements, which are valid for 10 years, require the parties to:
not make any representations to the public, including via Internet and email, which are false or misleading;
not make any performance claims to the public without having first provided proof of adequate and proper testing to the Bureau; and
pay administrative monetary penalties.
Consumers should be aware that there are a number of fuel saving devices on the market that claim to lower fuel consumption and reduce emissions. Consumers should exercise caution and be skeptical if manufacturers cannot provide proof about the performance claims of their products.
The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
FTC News Release: http://www.ftc.gov/opa/2005/12/buttonpushers.htm
For media enquiries, please contact:
Maureen McGrath
Communications Advisor
Competition Bureau
819) 953-8982, or (613) 296-2187 (cell)
For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358
