The Crittenden Automotive Library

Topic: Rust Evader

Announced Actions for November 1, 1996

Agency: Federal Trade Commission
Date: 1 November 1996
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Consent agreements given final approval: Following a public comment period, the Commission has made final consent agreements with the following entities. The Commission action makes the consent order binding on the respondents.

The Commission finalized a consent order with David F. McCready, former president of RustEvader Corporation (of Altoona, Pennsylvania) and inventor of the "Rust Evader," a purported anti-corrosion device for vehicles, settling charges that he made false claims about the product's ability to substantially reduce motor vehicle body corrosion, employed a deceptive demonstration, and illegally conditioned warranty coverage on consumers paying the labor costs of having their vehicles inspected every 24 months by an authorized Rust Evader dealer. The order requires McCready to pay $200,000 over six months for consumer redress; bars him from using the names Rust Evader or Rust Buster for this or similar devices; prohibits him from claiming that this or similar devices prevent or substantially reduce corrosion, and from misrepresenting the existence or results of test or studies or that any demonstration proves any material feature of any product for use in motor vehicles; requires him to have substantiation to back up performance or efficacy claims about any product for use in motor vehicles; and bars him from conditioning warranty coverage for any consumer product on the purchase by consumers of a certain brand-named or trade-named product or service. (See July 3, 1996 news release for more details regarding this consent order; Docket No. D-9274; Commission vote on Oct. 30 to issue the order in final form was 5-0.) Staff contact is Michael Milgrom, FTC Cleveland Regional Office, 216-522-4210.

Copies of the news releases and most of the related documents referenced above are available from the FTC's World Wide Web site at http://www.ftc.gov (no period). All public documents 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 for the hearing impaired 202-326-2502. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.

Media Contact:

Office of Public Affairs
202-326-2180