The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Guthy-Renker Australia Pty Limited, in relation to an infomercial advertising Motor Up "No Oil Change" Engine Oil.
Guthy-Renker conducted a trial television advertising campaign in May 2004 for Motor Up "No Oil Change" Engine Oil. The ACCC received several complaints from consumers who said a check of the internet showed that the United States Federal Trade Commission had, in May 2000, made orders against Motor Up Corporation Inc in relation to unsubstantiated claims concerning the effectiveness of Motor Up "No Oil Change" Engine Oil.
Guthy-Renker was the exclusive distributor and marketer in Australia of the oil when the advertising was undertaken. At the time of broadcasting the infomercial, Guthy-Renker was unaware of the FTC's action.
The infomercial included representations that the oil:
- prevents corrosion in engines
- reduces engine wear and tear by up to 50 per cent, and
- protects against engine wear even without motor oil.
The ACCC contacted Guthy-Renker with its concerns that representations contained in the infomercial may have been misleading or deceptive.
Guthy-Renker has provided undertakings not to make the representations and to implement a compliance program to ensure that similar issues will not arise in the future.
Additionally, Guthy-Renker will write to 130 persons who bought the oil as a result of the infomercial offering to refund the full purchase price.
"This matter reinforces the need for advertisers using infomercials to ensure the accuracy of the claims made", ACCC Chairman, Mr Graeme Samuel, said today. "Distributors of imported products should ensure that the product has not been the subject of proceedings by a consumer protection organisation in another country".