API sues cheaters

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Tom NJ

Tom NJ

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API Sues Motor Oil Marketers Three cheers to the API for taking decisive action against alleged cheaters! "The lawsuit was filed in a federal court against two Michigan companies. It charges that Detroit-based U.S. Energy Resources LLC and Warren-based Babylon Trading & Development manufacture and distribute engine oils bearing imitation API logos. API says the companies are not licensed to use its trademarks and their oil does not meet its quality standards." "They are “unfairly trading on API’s goodwill” with the intention “of deceiving the public,” API alleges." "It (API) wants damages of $1 million for each grade oil that the firms sold using its logos." Tom NJ
 
Originally Posted By: chubbs1
Bravo!! Did your buddy bust 'em Tom...I mean Tom Glenn;)
PQIA did not publish any test results on the brands named in the API suit. I don't know who tipped off the API, but I'm glad they did. Tom NJ
 
Good for API. Those who mislead the ignorant public should be brought to account. If the states and the feds won't do it, at least API will.
 
Tom Glenn wrote a great article in the current issue of Lubes & Greases magazine titled "Doing the Right Thing" that discusses the industry's responsibility to consumers with such bogus oils. See page 14 here Lubes & Greases Tom NJ
 
This reminds me. I noticed the HEB down by the university (Texas A&M) had some API SA oil on the shelves. I meant to contact the manager or something to complain about that. I hate to think of how many college kids could might have put that in their cars. robert
 
Originally Posted By: BigCahuna
If an oil is sold and it "claims" that it meets or exceeds API standard whatever, and it doesn't, can they sue the mfgr over that?.,,
I was thinking the same thing. I think a company can make all kinds of claims, as long as they don't display the actual logo, the API probably doesn't care and doesn't check. JMO
 
Originally Posted By: BigCahuna
If an oil is sold and it "claims" that it meets or exceeds API standard whatever, and it doesn't, can they sue the mfgr over that?.,,
The API Certification Marks (Starburst and Donut symbols) are registered trademarks belonging to API and they can only be used if you meet certain conditions set by the API. API can sue if a company uses these marks without authorization. False claims are a different situation. Certain governmental agencies can act on this, such as the FTC or Weights & Measures, but they often lack resources, thus allowing cheaters to fly under the radar. Likewise any consumer can sue if they can prove oil related damage as a result of the false claims, which can be very difficult. Many claims are intentionally vague and deceptive, such as "best" or "finest" or "latest technology", not to mention descriptors such as "Super" or "Gold" or "Premium", all meaningless marketing terms and not actionable. In addition, you can deceive consumers by what you don't say. Those companies marketing junk oils know how to play the game, and if caught can fold up shop and reopen elsewhere. The API now polices oils that are not licensed, and if these oils display API marks they can act, as they did here. Tom NJ
 
Wait a second, I thought API was like a specing/grading system for oils and such. Kinda like the USDA has grades AA butter, Grade A Butter, and so on and any product that meets the spec can use the logo. I guess not, huh. So all these years using SuperTech made by Warren, I may have not gotten what I paid for? NAPA and Proline are made by major brands Valvoline and Penns Oil repsectivly. Should I be suspect of those also?
 
In order to use an API Certification Mark (Starburst or Donut), an oil company must submit data to the API showing that the formulation was tested and passed all of the requirements of the specification. The API polices their system by purchasing hundreds of oils each year and testing them to confirm that the formulation meets the specs and matches the original certified oil. If a discrepancy is found, they work with the oil company to resolve the issue. In the case of outright fraud, they may choose to sue the oil company. The API charges a fee to use their marks in order to fund the program. Walmart also test the oils they carry and bill the supplier for the testing cost - just part of the cost of doing business with Walmart. So long as the oil you are buying displays an API Certification Mark you should be fine, except in the rare case of fraud. It is very unlikely you will find fraud among major or established private brands such as those you named. Tom NJ
 
Originally Posted By: Tom NJ
In order to use an API Certification Mark (Starburst or Donut), an oil company must submit data to the API showing that the formulation was tested and passed all of the requirements of the specification. The API polices their system by purchasing hundreds of oils each year and testing them to confirm that the formulation meets the specs and matches the original certified oil. If a discrepancy is found, they work with the oil company to resolve the issue. In the case of outright fraud, they may choose to sue the oil company. The API charges a fee to use their marks in order to fund the program. Walmart also test the oils they carry and bill the supplier for the testing cost - just part of the cost of doing business with Walmart. So long as the oil you are buying displays an API Certification Mark you should be fine, except in the rare case of fraud. It is very unlikely you will find fraud among major or established private brands such as those you named. Tom NJ
What happens in a case where an oil company claims to meet or even exceed the spec yet not display the API Certification Mark? Since they decided not to pay or submit data does the API even check these products? Or can they continue to make claims and have no fear since they aren't part of the program? Thanks.
 
API does check some unlicensed oils, but to my knowledge do not have a basis for taking legal action against them. The fee for getting a license to use an API certification mark is small, and the marketing value of the certification mark is high, so personally I am suspicious of oils that claim to meet licensible API service categories but don't display an API mark. Many companies are doing this with GMs Dexos because the license fee is high, but not getting an API license when you claim to meet all of the specifications makes no sense to me. Tom NJ
 
Originally Posted By: Tom NJ
The fee for getting a license to use an API certification mark is small,
What is their fee structure? Is it a one-time flat fee per each oil and grade? Or is it on a per each bottle sold basis (volume based)?
 
Originally Posted By: Tom NJ
API does check some unlicensed oils, but to my knowledge do not have a basis for taking legal action against them. The fee for getting a license to use an API certification mark is small, and the marketing value of the certification mark is high, so personally I am suspicious of oils that claim to meet licensible API service categories but don't display an API mark. Many companies are doing this with GMs Dexos because the license fee is high, but not getting an API license when you claim to meet all of the specifications makes no sense to me. Tom NJ
Thanks Tom! The way it always seemed to appear was the fees were high and the compaines not displaying the API certification mark used that as an excuse. Then bragged about how good they were and that the API set low standards, LOL. Poor excuse after reading this thread.
 
I thought the reason the "strategically unlicensed" oils were not API approved was chemical, not physical. Excess phosphorus is one example I remember. The pitch is that "our oil performs better because it has (insert secret ingredient here) that prevents it from being approved, unlike the (insert insulting adjective here) oils that the rest of the industry makes" or something like that.
 
Originally Posted By: Quattro Pete
Originally Posted By: Tom NJ
The fee for getting a license to use an API certification mark is small,
What is their fee structure? Is it a one-time flat fee per each oil and grade? Or is it on a per each bottle sold basis (volume based)?
Current license fee is $1,250 per year plus 0.2 cents per gallon (1/20 of one cent per quart) only on volume after the first million gallons. Not exactly a prohibitive fee! Tom NJ
 
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