Under the terms of a settlement reached with attorneys general representing 17 states, Michelin will have to provide “reliable scientific evidence” supporting any fuel efficiency claims made in the company’s future tire advertisements. Michelin is also paying $375,000 to be distributed among the states taking part in the investigation.
The tire maker denies all wrongdoing.According to Tennessee Attorney General Bob Cooper, who headed the probe, “Michelin promoted questionable savings associated with its fuel-efficient tires in its ads.”
A company tire campaign last summer featured full-page ads in the Wall Street Journal and USA Today along with radio and television spots airing on ESPN during athletic events such as Southeastern Conference college football games.
The ads contained comments such as “It’s time to fight back. 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.”
Cooper and the other attorneys general contend 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 ads did not mention consumers may save more money by buying a cheaper tire or other cost-saving factors.”
He goes on to report that a “review of Michelin’s own studies indicates that its tires are only the most fuel efficient in 78 percent of its classes of tires. The (other states’ officials involved in the investigation) also expressed concern that footnote disclosures regarding the fuel efficiency advertisements were not clear and conspicuous.”
Aside from Tennessee, the states taking part in the investigation were: Alaska, Arizona, Delaware, Iowa, Kentucky, Massachusetts, Montana, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas and Vermont.
“We think it is important that consumers have all the information they need to make purchasing decisions and are pleased that we were able to resolve this matter,” says Cooper, adding that Michelin fully cooperated with the probe and that the safety and quality of its tires are not in question.
Michelin executives say they had received just one complaint about the ads’ claims – that coming from Nashville-based Bridgestone Firestone. Cooper says the investigation was instigated by a complaint originating from a consumer.
The company agreed to alter its advertising and pay the $375,000 “to save time and expense,” according to Scott Clark, chief operating officer 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,” Clark says.
“Michelin presented test data demonstrating a major advantage in rolling resistance and related fuel-efficiency compared to most tires in its competitive set. In 29 of 37 tire categories (78 percent), the average rolling resistance of the Michelin tires was lower than the average of all other competitive tires. In addition, the data showed that a Michelin-brand tire was the most fuel efficient in the majority of tire categories. The link between tires and vehicle fuel economy has increasingly been a Michelin focus since its introduction of the silica-based tire in 1992.” Clark asserts.
“We fully cooperated with the AGs’ investigation into this matter because we support the highest level of precision in consumer communications,” Clark adds. “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.”
For more information, visit http://www.tn.gov/attorneygeneral/cases.michelin.michelin.html
