Article: Exxon settles gasoline advertising dispute, agrees to renounce claims for premium grades.(out-of-court settlement with FTC)(Brief Article)

The U.S. oil industry could end up losing some of the extra $1.7 billion a year that American drivers spend buying premium rather than regular gasoline, following an out-of-court settlement of a gasoline advertising dispute between Exxon Corp. and the Federal Trade Commission (FTC).

The dispute dates back to last September, when FTC accused Exxon of falsely claiming in radio and television advertisements that its high-octane gasolines reduce engine maintenance costs, and threatened to take the company to court (TOD, 9-18-96, p.4).

In what FTC said Tuesday was a landmark settlement, Exxon has agreed to begin running ads renouncing its earlier claims about the ...

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