Cliffdale Associates, Inc.
Federal Trade Commission
103 F.T.C. 110 (1984)
Cliffdale Associates (defendant) marketed a device called the Ball-Matic Gas Saver Valve, advertising that it would improve fuel efficiency by about 20 percent, calling it the most significant automotive breakthrough in a decade and claiming every car needed one. The FTC alleged the device was essentially indistinguishable from long-existing products, performed no better than a standard carburetor, and that Cliffdale's cited scientific tests didn't actually support its fuel-efficiency claims. An administrative law judge found Cliffdale violated § 5 of the FTC Act, and Cliffdale appealed to the full Commission.
Whether a material representation or omission that is likely to mislead consumers acting reasonably under the circumstances is deceptive within the meaning of § 5 of the Federal Trade Commission Act.