Michelin Ordered to Pay $375k...

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See article:
 Quote:
Tennessee Attorney General Bob Cooper yesterday announced a multi-state settlement with Michelin North America “regarding alleged misrepresentations Michelin made in its advertising of Michelin fuel efficient tires.” The tiremaker agreed to make minor changes in the copy of print advertisements it has run concerning the purported fuel efficiency of its tires, and is paying $375,000 to cover the alleged cost of the investigation. The attorney general, though, “acknowledges that Michelin fully cooperated with the multi-state investigation and the investigation did not question the safety or quality of Michelin’s tires.” Michelin, which said it followed prevailing Federal Trade Commission advertising guidelines, denied any wrongdoing. The Tennessee attorney general reacted to a complaint filed by Bridgestone Americas, which Michelin claimed was the only complaint filed. However, attorney general spokesperson Sharon Curtis-Flair told Boston media that “the investigation started based on a consumer complaint, not a complaint by Bridgestone.” Other states joining the agreement include Alaska, Arizona, Delaware, Iowa, Kentucky, Massachusetts, Montana, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas and Vermont. Each will receive a share of Michelin’s settlement payment. Tennessee’s complaint alleged “that Michelin’s fuel efficiency advertisements did not adequately disclose that the advertised costs savings were based solely on savings in fuel costs, not on the comparative costs of competing tires,” the attorney general said. “The ads did not mention consumers may save more money by buying a cheaper tire or other cost-saving factors. Further, the state’s review of Michelin’s own studies indicates that its tires are only the most fuel efficient in 78% of its classes of tires. The states also expressed concern that footnote disclosures regarding the fuel efficiency advertisements were not clear and conspicuous.” “Michelin supports the Tennessee Attorney General's efforts to inform consumers about the important role tires play in the fuel economy of their vehicle," said Scott Clark, COO of Michelin Americas Small Tires. “The truth is, tires do make a significant difference in the fuel economy of a vehicle and Michelin fuel efficient tires not only improve fuel economy by saving drivers money at the pump, but they do so without sacrificing any of the other performances – long wear, wet braking, excellent handling that consumers have come to expect from Michelin.” “We fully cooperated with the AG's investigation into this matter because we support the highest level of precision in consumer communications,” said Clark. “We believe that the messaging in the advertisement, as well as the substantiation behind the product claims, is accurate and factual. We will continue to promote the fuel-efficiency advantages of Michelin tires in future advertising.” (Tire Review/Akron)
http://www.tirereview.com/default.aspx?type=wm&module=4&id=2&state=DisplayFullText&item=14578
 
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sucks for michelin. i think it is sour grapes from bridgestone isn't it common knowledge that (a) michelin tyres are more expensive than others and (b) they are talking about fuel savings in their ads? AFAIK common knowledge means it does not have to be stated. in my insurance contract i do not need to tell the insurer anything that is "common knowledge".
 
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[paranoid] That's just protectionist policies trying to protect the local players at the disadvantage of ordinary consumers...it's so blatant you could drive a bus through[/paranoid] oops, wrong thread
 
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If we had a standardized rolling resistance test for tires we could just quote the test results. Can't buy a $100 window AC unit without knowing how efficient it is... There are car dealers around here advertising cars at "up to XXX MPG" which is above the official EPA rating. That could be an easy way to get into legal trouble...
 
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Argument apparently wasn't about Rolling Resistance, but that fact that there was a cheaper alternative in initial cost, minus fuel savings. Clearly protectionist.
 
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 Originally Posted By: Shannow
Argument apparently wasn't about Rolling Resistance, but that fact that there was a cheaper alternative in initial cost, minus fuel savings. Clearly protectionist.
I concur.
 
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 Originally Posted By: Tornado Red
Bridgestone now has its own line of LRR tires, Ecopia. Let's see how they advertise them.
If there anything like the last Bridgestones i've had (Dueler H/Ts) "Traction Free" could be one feature.
 
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I was getting 15-16mpg on Contis, and I regularly pull mid 19-20mpg on Michelins here. I'll chuck the no-Integrities on the hybrid for Michelins when the time comes.
 
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From 15-16mpg to 19-20mpg is about 25% improvement, which is NOT possible from high rolling resistance tire to NO rolling resistance tire, not talking about low rolling resistance tire. It is possible to get 4-5% gas mileage improvement in changing tire alone, assume both are same size and same pressure.
 
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Just a case of the lessers attacking the superiors. Michelins Cost more, and they are worth it. 375k actually is a good deal for the amount of advertising this will result in. Great turnabout by Micheline turning this complaint into a positive!
 
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I have Michelin LTX AT2 which are said to have the best rolling resistance of any AT tire. I never checked the mileage for any difference. I think Michelin makes a great tie and usually buy Michin tires.
 
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Jan 12, 2007
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 Originally Posted By: heavyhitter
Who is next for lawsuit, Goodyear? I just saw a Goodyear commercial last night and it was about a "fuel saving tire"
Would not surprise me. Then again, I despise Goodyears; Tires still have like new tread depth and hydroplane at every opportunity. BFGs for my cars from now on.
 
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