Mass v. Braswell Motor Freight Lines, Inc.

577 F.2d 665
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 5, 1978
DocketNo. 77-1162
StatusPublished
Cited by34 cases

This text of 577 F.2d 665 (Mass v. Braswell Motor Freight Lines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mass v. Braswell Motor Freight Lines, Inc., 577 F.2d 665 (9th Cir. 1978).

Opinion

KENNEDY, Circuit Judge:

In this consolidated appeal, petitioners Standard Oil Company of California (Standard), and Batten, Barton, Durstine & Osborn, Inc. (BBD&O), challenge a decision and a cease and desist order issued by the Federal Trade Commission (FTC or Commission). The Commission found that Standard and BBD&O had broadcast advertising that was false, misleading, and deceptive, in violation of section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45. Standard and BBD&O contend that the advertising was accurate and in all respects lawful. They further state that even if the advertising were improper, the cease and desist order issued by the FTC is overly broad. We affirm the Commission’s finding that the advertising violated section 5 of the Act, but we agree that the cease and desist order is unwarranted and therefore direct that the scope of the order be modified.

The case concerns three television commercials that promoted a gasoline additive known as F-310. The commercials were broadcast on television from January 9 to June 9, 1970. Two commercials were based on demonstrations which were designed to afford viewers a visual comparison of automobile exhaust before and after using F— 310. See Appendix I. In one, a large clear balloon was attached to the exhaust pipe of an idling automobile. The balloon was shown inflating with black, opaque vapor, while the announcer described it as “filling with dirty exhaust emissions that go into the air and waste mileage.” The announcer then stated that “Standard Oil of California has accomplished the development of a remarkable gasoline additive, Formula F-310, [656]*656that reduces exhaust emissions from dirty engines.” He informed the viewer that the same car was run on six tankfuls of Chevron F-310 and the result was “no dirty smoke, cleaner air.” To prove the point, a clear balloon was again shown being attached to the car. This time the balloon inflated with transparent vapor. In conclusion the television viewer was told: “Chevron with F-310 turns dirty smoke into good, clean mileage. There isn’t a car on the road that shouldn’t be using it.”

The second commercial, known as the bag demonstration, was similar to the commercial just described except that the automobile was completely enclosed in a transparent bag. In the before segment of the demonstration, the automobile was hidden from view by black exhaust smoke. In the after segment the automobile was plainly visible, thus illustrating the effects of using the F-310 additive.

The third commercial considered by the Commission focused on a meter dial labeled “exhaust emissions.” The dial showed a scale from 0 to 100. The word “clean” labeled the 0 extremity, and the word “dirty” was printed under 100. Once again a before-and-after format was used, with the meter pointing to 100 before use of F-310 and to 20 afterwards. The announcer’s accompanying message was: “[AJfter just six tankfuls of Chevron F-310 — exhaust emissions reduced.” The commercial again closed with the message that: “There isn’t a car on the road that shouldn’t be using it.”

On May 19, 1970 the FTC advised Standard that it objected to the advertisements because it was not clear that the car depicted in the before segment of each commercial had been driven previously with a gasoline that was deliberately formulated to accelerate carbon deposits, resulting in an especially dirty engine. The FTC expressed concern that the commercials did not indicate either that the degree of improvement in gasoline mileage and pollution reduction would vary according to the condition of the engine, or that the gasoline used to prepare the test cars for the before part of the sequence caused much dirtier engines than would have been caused by normal gasoline.

Standard submitted an assurance of voluntary compliance to the Commission on May 25, 1970. Beginning June 10 the commercials were altered by superimposing on the film phrases such as, “Very Dirty Engine Purposely Used to Provide Severe Test,” and “Degree of Improvement in Your Car Depends on Condition of Engine.”

On December 29, 1970 the Commission filed a complaint against Standard and BBD&O based on the commercials as they were presented prior to June 10,1970, specifying eleven charges of false advertising. The charges were sweeping. The FTC alleged not only that the ads were misleading in the respects indicated above, but also that F-310 did not reduce pollution to any significant degree.1 After extended hear[657]*657ings, the administrative law judge found that F-310 was effective as claimed, and that it did result in a significant reduction in exhaust emissions. He further found that the commercials accurately depicted the product’s performance. Accordingly he recommended that the administrative complaint be dismissed in its entirety.

The Commission adopted substantially all of the findings of the administrative law judge pertaining to the efficacy of the product. The FTC’s charges that the product did not reduce pollution were found to be wholly without merit. The Commission agreed they should be dismissed and stated that the development of F-310 was “laudable.”

The Commission did not, however, adopt the findings of the administrative law judge as to certain of the alleged disparities between the claims which the commercials were interpreted to make and the data offered to substantiate those claims. Specifically, the Commission found that the commercials falsely represented (1) that use of F-310 would result in a complete reduction of air pollutants; (2) that all cars would show the same degree of improvement as was illustrated by the reduction of pollution in the exceptionally dirty engine; (3) that the use of F-310 would affect all types of exhaust emissions; and (4) that the meter used in the third commercial portrayed an eighty percent reduction of pollution with F-310. Based on these findings the Commission held that Standard and BBD&O had violated section 5 and issued broad cease and desist orders against them.

Before turning to an analysis of the cease and desist orders and a determination of their propriety, we examine the petitioners’ contention that there is no substantial evidence in the administrative record to support the Commission’s finding that the commercials were misleading and deceptive, and BBD&O’s additional contention that there is no support for the finding that it knew or should have known that the three advertisements were deceptive. The court has jurisdiction over this appeal under section 5(c) of the FTC Act, 15 U.S.C. § 45(c).

The Commission’s Findings

Although the law is intended to protect “that vast multitude which includes the ignorant, the unthinking and the credulous,” Aronberg v. FTC, 132 F.2d 165, 167 (7th Cir. 1942), neither the courts nor the Commission should freely speculate that the viewing public will place a patently absurd interpretation on an advertisement. On the facts before it, the Commission could not properly have found that these ads claimed that F-310 removed all harmful chemical emissions from automobile exhaust.

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577 F.2d 665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mass-v-braswell-motor-freight-lines-inc-ca9-1978.