![](media/image1.png){width="4.7in" height="1.2826388888888889in"} July
23, 2007

Federal Trade Commission (FTC)/Office of the Secretary

Room H-135 (Annex M)

600 Pennsylvania Avenue, NW.

Washington, DC 20580

> Re: Guide Concerning Fuel Economy Advertising for New Automobiles; 16
> CFR [Part 259; Fuel Economy Guide Review, Matter No. R711008;
> FTC-2007-0043]{.underline}

Ladies and Gentlemen:

The National Automobile Dealers Association (NADA) represents
approximately 20,000 franchised automobile and truck dealers who sell
new and used motor vehicles and engage in service, repair and parts
sales. Together they employ in excess of 1,300,000 people nationwide yet
a significant number are small businesses as defined by the Small
Business Administration. 

Last spring, the FTC initiated a review of its Guide Concerning Fuel
Economy Advertising for New Automobiles (the Guide). 72 Fed. Reg.
26328-9 (May 9, 2007). In response, NADA offers the following specific
comments and suggestions.

I. [The Continuing Need For The Guide]{.underline}

The Guide should continue to be published as it serves to assure
prospective new vehicle purchasers that fuel economy claims consistently
will be advertised in an understandable manner. The Guide requires
manufacturer or dealer new vehicle fuel economy advertising to disclose
applicable Environmental Protection Agency (EPA) fuel economy estimates
in a clear and conspicuous manner. By specifically detailing how and
what information must be disclosed, the Guide helps ensure that
prospective purchasers receive objective, uniform information, and that
manufacturers and dealers fairly and even-handedly advertise the fuel
economy of the new vehicles they sell.

II\. [Deletion Of 49 CFR §259.2(c)]{.underline}

The FTC should delete 49 CFR §259.2(c). This section currently allows
advertisers to refer to non-EPA fuel economy estimates, so long as
specific references to appropriate EPA estimates for the same vehicle
also are made. The benefit of being able to advertise non-EPA fuel
economy estimates is outweighed by the need for uniformity, clarity, and
fairness. This section only should be retained in the Guide if the FTC
can show that manufacturers and/or dealers have regularly advertised
non-EPA fuel economy estimates, and are expected to conduct similar
advertising in the future.

III\. [New Technology and Alternate-Fuel Vehicles]{.underline}

Manufacturers are introducing new technology, alternative fuel, and
dual- and flex-fuel vehicles at an ever-increasing rate. These include
hybrid vehicles designed to run on electricity, on a liquid fuel, or on
a combination of the two, dedicated alternative fuel vehicles, and duel-
or flex-fuel vehicles. In light of this trend, the Guide should be
amended to require disclosure of:

> 1\. All fuel(s) advertised vehicle(s) are designed to use.
>
> 2\. The fuels actually used to generate advertised EPA estimates.
>
> 3\. Such information from the *FTC's Labeling Requirements For
> Alternative Fuels and Alternative Fueled Vehicles* as may be
> appropriate. 16 CFR Part 309. For example, vehicles that run on
> alternative fuels and gasoline should indicate the estimated range for
> each type of fuel.

Additional information of this sort will enable consumers to better
compare vehicles using the same fuel and/or technology and to better
compare new technology and alternative fuel vehicles to their gasoline
counterparts. This is of particular importance during times when
gasoline prices increase significantly, resulting in a heightened
awareness of fuel economy and a commensurate increase in fuel economy
advertising.

# IV. Conformity With EPA's Fuel Economy Testing and Labeling Requirements

EPA recently revised its fuel economy testing and labeling requirements.
72 FR 77872, *et seq.* (December 27, 2006). In order that the Guide
better conform with EPA's new rule, the following changes should be
made:

> 1\. The Section 259.1(a) definition of *new automobile* should be
> amended to include vehicles that are defined as medium duty passenger
> vehicles, and which are manufactured during the 2011 model year or
> thereafter.
>
> 2\. Section 259.1(b) and (c) should be amended to substitute the term
> *fuel economy* for *gasoline and alternative fuel consumption or
> mileage,* and to replace *40 CFR 600.210* with the more generic *40
> CFR Part 600*.
>
> 3\. The Guide should allow for the advertisement of combined fuel
> economy estimates. EPA defines *Combined fuel economy* as:
>
> \(i\) The fuel economy value determined for a vehicle (or vehicles) by
> harmonically averaging the city and highway fuel economy values,
> weighted 0.55 and 0.45 respectively.
>
> \(ii\) For electric vehicles, the term means the equivalent
> petroleum-based fuel economy value as determined by the calculation
> procedure promulgated by the Secretary of Energy.
>
> 3\. Advertisements should specify the vehicle's model year (MY). Given
> that the 2006 revisions to EPA's fuel economy standards take effect in
> MY 2008, it is important that prospective purchasers clearly
> understand which MY automobile is being advertised in order to enable
> appropriate comparisons.

On behalf of NADA I thank the FTC for the opportunity to comment on this
matter.

> Respectfully Submitted,
>
> ![](media/image2.png){width="2.0in" height="0.6069444444444444in"}
>
> Douglas I. Greenhaus
>
> Director, Environment, Health & Safety