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)
