Tire Company Settles with 17 AGs for $375,000 over Allegedly Deceptive Advertising

Michelin North America Inc. has reached a multistate settlement with 17 state attorneys general to resolve claims that the company falsely advertised its fuel-efficient tires. The attorneys general alleged that Michelin ran a national ad campaign that claimed consumers could save money by using the company's fuel-efficient tires. In its ads, Michelin said such things as: "Michelin fuel-efficient, long-lasting tires help you save money" and "Michelin makes the most fuel-efficient line of tires on the road, which saves you money over the life of your tires." The attorneys general said the company's claims were based solely on fuel costs and did not include other factors that might affect savings, such as initial cost of the tire or average life of the tire. The attorneys general also were concerned that the Michelin tires were the most fuel-efficient tires only in 78 percent of its classes of tires. Under the settlement, Michelin agreed to pay a total of $375,000 to the participating states, as well as substantiate its fuel efficiency claims in future ads.

TIP: When making claims about an entire line of products, advertisers should ensure that the claim applies to every product in the line or qualify the claim accordingly.