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News Release

For Immediate Release
May 14, 2009

Contact:
Associate Attorney General Richard Head
(603) 271-1248

New Hampshire And 16 States Enter Into Settlements With Michelin North America, Inc. Regarding Advertisements Promoting Fuel Efficiency Savings

Attorney General Kelly A. Ayotte announced a multistate settlement with Michelin North America, Inc. ("Michelin") of Greenville, South Carolina, regarding alleged representations Michelin made in its advertising of Michelin fuel efficient tires. The multistate investigation was led by the Tennessee Attorney General's Office and involved the states of Alaska, Arizona, Delaware, Iowa, Kentucky, Massachusetts, Montana, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Texas and Vermont.

The Attorneys General allege that in May or June of 2008, Michelin advertisements began promoting savings associated with its fuel-efficient tires. Some were full page ads that were run in the Wall Street Journal and USA Today newspapers, as well as radio and television advertisements on ESPN during athletic events such as SEC football. The ads contained representations 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."

The States allege that Michelin's fuel efficiency advertisements did not adequately disclose that the advertised costs savings were based solely on savings in fuel costs. There are factors other than fuel efficiency that might affect the savings a consumer could achieve by choosing one tire over another, such as initial cost of the tire, average life of the tire in terms of mileage. Further, the States review of Michelin's own studies indicates that its tires are only the most fuel efficient in 78 percent of classes of tires. However, in some classes of tires, a Michelin tire is not the most fuel-efficient. The States also expressed concern that footnote disclosures used by Michelin in the fuel efficiency advertisements were not clear and conspicuous.

The States acknowledge that Michelin fully cooperated with the multistate investigation and the investigation did not question the safety or quality of Michelin's tires. Michelin denies any wrongdoing.

Under the terms of the settlement, Michelin has agreed to possess competent and reliable scientific evidence substantiating any fuel efficiency claim regarding its tires and to make other business practice improvements. Additionally, Michelin is paying the States a total of $375,000.00.

Attorney General Ayotte said, "I am pleased to announce today's settlement with Michelin. My office will continue its efforts to ensure consumers can rely on claims made by companies when promoting their products."

Additionally, consumers may obtain information about consumer protection issues, or report consumer complaints, on the Consumer Protection Bureau's Web site at www.doj.nh.gov/consumer/.


New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658