Michelin Pays $375,000 to Settle Advertising Complaint

In the US Tennessee state 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 tyres.” The manufacturer agreed to make minor changes in the copy of print advertisements it has run concerning the purported fuel efficiency of its tyres, and is paying $375,000 to cover the alleged cost of the investigation, Tire Review reports. 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 tyres.” 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 tyre or other cost-saving factors. Further, the state’s review of Michelin’s own studies indicates that its tyres are only the most fuel efficient in 78 per cent of its classes of tyres. The states also expressed concern that footnote disclosures regarding the fuel efficiency advertisements were not clear and conspicuous.” (Tire Review/Akron)