FTC Reviews Used Oil Rule

The Federal Trade Commission has proposed to repeal its 1964 Used Oil Rule as unnecessarily duplicative. The agency said the rule has been pre-empted in large part by the FTC’s Recycled Oil Rule, which the Commission promulgated in October 1995 as required by the Energy Policy Conservation Act (EPCA). The Commission is seeking public comments on the proposed repeal for 30 days, until May 3.

The Recycled Oil Rule governs the labeling of containers for recycled -- or re-refined -- oil intended for use as engine oil, and permits manufacturers and sellers to represent that such oil is substantially equivalent to new engine oil, as long as the determination of equivalency is based on test procedures prescribed by the FTC. Approximately 65 million gallons of re-refined oil are sold in the United States each year.

The Commission has asked that comments address whether there is a continuing need for the Used Oil Rule, if it were to be kept what changes might need to be made, the costs of the rule and any proposed changes, whether misrepresentations about the quality of used oil are being made, and whether the Recycled Oil Rule is likely to provide all or most of the benefits of the Used Oil Rule.

Comments should be identified as “16 CFR Part 406 Comment,” and addressed to the FTC, Office of the Secretary, Room 159, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580. A notice regarding the proposal is published in today’s Federal Register. The Commission vote to publish the proposed repeal notice was 5-0.

Copies of the Federal Register notice are available from the FTC’s Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC’s World Wide Web site at: http://www.ftc.gov

(FTC Matter No. R511959)