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Federal-Mogul Motorparts LLC; Analysis to Aid Public Comment

American Government Special Collections Reference Desk

American Government Topics:  Federal-Mogul

Federal-Mogul Motorparts LLC; Analysis to Aid Public Comment

April J. Tabor
Federal Trade Commission
6 April 2020


[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19147-19149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07170]


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FEDERAL TRADE COMMISSION

[File No. 172 3102]


Federal-Mogul Motorparts LLC; Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis to Aid Public Comment describes both 
the allegations in the complaint and the terms of the consent order--
embodied in the consent agreement--that would settle these allegations.

[[Page 19148]]


DATES:  Comments must be received on or before May 6, 2020.

ADDRESSES: Interested parties may file comments online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Federal-Mogul 
Motorparts LLC; File No. 172 3102'' on your comment, and file your 
comment online at https://www.regulations.gov by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Sydney Knight (202-326-2162), Bureau 
of Consumer Protection, Federal Trade Commission, 600 Pennsylvania 
Avenue NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC website (for March 25, 2020), at this web address: https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before May 6, 2020. 
Write ``Federal-Mogul Motorparts LLC; File No. 172 3102'' on your 
comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the https://www.regulations.gov website.
    Due to the public health emergency in response to the COVID-19 
outbreak and the agency's heightened security screening, postal mail 
addressed to the Commission will be subject to delay. We strongly 
encourage you to submit your comments online through the https://www.regulations.gov website.
    If you prefer to file your comment on paper, write ``Federal-Mogul 
Motorparts LLC; File No. 172 3102'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite 
CC-5610 (Annex D), Washington, DC 20580; or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure your comment does not include 
sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 
16 CFR 4.10(a)(2)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the public FTC website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC website, 
unless you submit a confidentiality request that meets the requirements 
for such treatment under FTC Rule 4.9(c), and the General Counsel 
grants that request.
    Visit the FTC website at http://www.ftc.gov to read this Notice and 
the news release describing it. The FTC Act and other laws that the 
Commission administers permit the collection of public comments to 
consider and use in this proceeding, as appropriate. The Commission 
will consider all timely and responsive public comments that it 
receives on or before May 6, 2020. For information on the Commission's 
privacy policy, including routine uses permitted by the Privacy Act, 
see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order to Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a consent 
order with Federal-Mogul Motorparts LLC (``respondent'').
    The proposed consent order (``order'') has been placed on the 
public record for 30 days for receipt of comments by interested 
persons. Comments received during this period will become part of the 
public record. After 30 days, the Commission will again review the 
order and the comments received, and will decide whether it should 
withdraw the order or make it final.
    This matter involves the respondent's advertising for Wagner OE\X\ 
brake pads. The proposed complaint alleges that Federal-Mogul violated 
Section 5(a) of the FTC Act by disseminating a series of false and 
unsubstantiated advertisements claiming that: (1) In an emergency, when 
a driver is trying to stop in the shortest distance possible, Wagner 
OE\X\ brake pads will stop a pickup truck, SUV, or crossover up to 50 
feet sooner than competing brake pads; and (2) In an emergency, when a 
driver is trying to stop in the shortest distance possible, Wagner 
OE\X\ brake pads installed on a pickup truck, SUV, or crossover 
significantly reduce the risk of collisions compared to competing brake 
pads.
    The order includes injunctive relief that prohibits these alleged 
violations and fences in similar and related conduct. The product 
coverage would apply to any Federal-Mogul-branded or marketed 
aftermarket brake pads, including Wagner OE\X\ aftermarket brake pads, 
as well as any third-party-branded aftermarket brake pads for which the 
respondent provides marketing materials.

[[Page 19149]]

    Part I prohibits the respondent from making any representation 
about the braking benefits, performance, or efficacy of any covered 
product, including that such product: (1) Will stop a vehicle 
significantly sooner than competing brake pads; and (2) reduces the 
risk of collisions compared to competing brake pads, unless the 
representation is non-misleading, and, at the time of making such 
representation, the respondent possesses and relies upon competent and 
reliable scientific evidence that is sufficient in quality and quantity 
based on standards generally accepted by experts in the field of 
automotive braking, when considered in light of the entire body of 
relevant and reliable scientific evidence, to substantiate that the 
representation is true.
    Part II requires the respondent to submit a signed acknowledgment 
that respondent received the order.
    Part III requires the respondent to file compliance reports with 
the Commission, and to notify the Commission of bankruptcy filings or 
changes in corporate structure that might affect compliance 
obligations. Part IV contains recordkeeping requirements for accounting 
records, personnel records, consumer correspondence, advertising and 
marketing materials, and claim substantiation, as well as all records 
necessary to demonstrate compliance or non-compliance with the order. 
Part V contains other requirements related to the Commission's 
monitoring of the respondent's order compliance. Part VI provides the 
effective dates of the order, including that, with exceptions, the 
order will terminate in 20 years.
    The purpose of this analysis is to facilitate public comment on the 
order, and it is not intended to constitute an official interpretation 
of the complaint or order, or to modify the order's terms in any way.

    By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020-07170 Filed 4-3-20; 8:45 am]
 BILLING CODE 6750-01-P

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