FOR RELEASE: January 31, 1992
MANUFACTURER OF HOME INSULATION CHARGED WITH
VIOLATING R-VALUE RULE; WILL PAY CIVIL PENALTY
TO SETTLE COMPLAINT
The Federal Trade Commission has charged the manufacturer
and marketer of "Perma R Plus" home insulation with overstating
the R-value, or insulating ability, of the product. The
complaint names LeClair Industries, Inc. and Perma R Products of
Mississippi, Inc., both of Grenada, Mississippi; Perma R Products
of Tennessee, Inc., in Johnson City; and Armond F. LeClair,
president of all three companies. A proposed consent decree to
settle the charges, filed in federal court with the complaint,
would prohibit future violations of the FTC's R-Value Rule with
regard to any home insulation the defendants manufacture and
sell, and require them to pay a civil penalty of $5,000.
The R-Value is a measure of an insulation's resistance to
heat flow: the higher the R-value, the greater the insulating
power. The FTC's R-value Rule requires manufacturers to disclose
the R-values of their home-insulation products. Under the rule,
R-values claimed on labels, fact sheets and promotional materials
must be determined according to specific test procedures, and
manufacturers must maintain specific records concerning those
tests.
The "Perma R Plus" home insulation sold by the defendants
was a polystyrene sheathing board insulation with foil-facing on
both sides. This type of product is often used as insulation in
the exterior walls of new homes. The defendants have ceased
producing and selling this product, although it continues to sell
other home insulation products that are not at issue in this
case.
- more -
(Perma R Products--01/31/92)
According to the complaint, the defendants manufactured,
distributed, sold and promoted "Perma R Plus" home insulation
with R-values that were not based on R-value tests conducted
according to the test procedures required by the rule. The FTC
also charged that the actual R-value of "Perma R Plus" home
insulation was more than 10% below the R-values displayed in fact
sheets, labels, and promotional materials. In addition, the FTC
charged the defendants with failing to keep all R-value test
records required by the rule.
The FTC's complaint and proposed consent decree were filed
by the Department of Justice on the FTC's behalf, in the U.S.
District Court for the Northern District of Mississippi, on
January 29.
NOTE: A consent decree is for settlement purposes only and does
not constitute admission of a law violation. A consent decree is
subject to court approval and has the force of law when signed by
the judge.
Copies of the complaint and proposed consent decree will be
available shortly from the FTC's Public Reference Branch, Room
130, 6th Street and Pennsylvania Ave., N.W., Washington, D.C.
20580; 202-326-2222; TTY 1-866-653-4261
# # #
MEDIA CONTACT: Howard Shapiro, Office of Public Affairs,
202-326-2176
STAFF CONTACT: Kent C. Howerton, Bureau of Consumer
Protection, 202-326-3013
(Civil Action No. 3:92-CV-012-B-D)
(FTC File No.902 3002)
(permplus)