University of Virginia Library

Consumer Protection Chief
Discusses New FTC Policy

By MARGARET ALFORD

Consumer protection efforts by the
Federal Trade Commission will be the
subject of a speech tomorrow by Robert
Pitofsky, chief of the Division of
Consumer Protection of the FTC.

The lecture, entitled "The New
Federal Trade Commission and the
Consumer" is to be given at 4 p.m.
tomorrow in the Law School Lounge.

The FTC currently requires major industries
to substantiate advertising claims for public
release, under a new policy originally proposed
by consumer advocate Ralph Nader.

According to United Press International, the
FTC yesterday released facts cited by auto
manufacturers to support claims that their cars
are better than competitors. Although the
commission declined comment on the auto
industry's data, it said it was studying the
material for any evidence of deceptive or
misleading advertising subject to prosecution.

Auto manufacturers spend about $300
million a year on advertising. Examples of the
data submitted in response to the FTC order
include the following:

American Motors submitted test results to
support its claim that the Gremlin "gets up to
25 miles to the gallon." General Motors,
backing its claim of 25 mile per gallon for the
Chevrolet Vega, submitted an April, 1971,
Consumers Bulletin article rating the Gremlin at
20.5 miles per gallon.

'Economy'

A Dodge advertisement stated: "So if you're
interested in economy, and who isn't these
days, check out Dart Demon, the economy car
that's not a mini car but saves like one."

The documentation included a list of 11
small cars, of which Demon bore the second
highest list price. Dodge said U.S. cars are
discounted more than imports, which largely
explained the difference, but of six U.S. brands
listed, only the Chevrolet Capri had a higher list
price than the Demon.

General Motors listed the "109 advantages
to keep the Chevelle from becoming old before
its time." The list includes the automatic
choke, balanced wheels and tires, keyless door
locking "up to four interior color choices," and
safety features required by law for all cars.

Years Of Tests

Ford submitted results of years of tests to
support its claim that Fords are
quieter-running. Although some tests compared
new cars, a 1966 test matched a new Ford
against a 1963 Daimler with 37,225 miles and a
1964 Jaguar with more than 20,000 miles. The
Ford won.

Claims of superiority do not always involve
a comparison with competing brands. Toyota
advertised that the 1971 Corona "accelerates
faster, has a higher top speed." "Higher speed
than what? The FTC asked. "Than the 1970
Corona," Toyota replied.

Auto makers were the first manufacturers
asked to submit data. Information from
manufacturers of air conditioners and electric
razors will follow.