FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

D riving a car fueled by something other than gasoline or diesel fuel is no longer the stuff of science fiction. In addition to conventional gasoline and diesel fuel, 

reformulated — cleaner — gasoline and alternative fuels now are sold in many parts of the 

country. Alternative fuels such as methanol, ethanol, compressed natural gas, liquefied 

petroleum gas, and electricity produce fewer tail pipe pollutants than conventional gasoline 

and diesel fuel. Using them could improve air quality. 

Congress passed the Energy Policy Act in 1992 to promote the use of alternative fuels. 

For example, the law requires owners of fleet vehicles to purchase a certain number of 

alternative fueled vehicles. Congress also directed the Federal Trade Commission (FTC), 

the nation’s consumer protection agency, to issue labeling requirements for alternative fuels 

and alternative fueled vehicles. The Alternative Fuels and Vehicles (AFV) Rule and the 

Fuel Rating Rule require fuel dispensers and alternative fueled vehicles to be labeled with 

information to help consumers make knowledgeable decisions when it comes to filling up or 

buying a vehicle. The AFV Rule applies to new and used alternative fueled vehicles that are 

sold to consumers or leased to them for at least 120 days. 

AUTOMOBILES

Consider the Alternatives: 

Alternative Fueled Vehicles and 

Alternative Vehicle Fuels

E F

ALTERNATIVES
Facts for Consumers

ALTERNATIVE FUELED VEHICLES

AFVs are vehicles that operate on alternative 

fuels, such as methanol, ethanol, compressed 

natural gas, liquefied petroleum gas, or electricity, 

as designated by the U.S. Department of Energy. 

Some AFVs that can run on conventional fuels 

like gasoline as well as alternative fuels, are 

called dual-fueled vehicles.

The required labels must be in plain view on the 

surface of all new and used AFVs. The labels on 

new AFVs must include the vehicle’s cruising 

range as estimated by the manufacturer, as well 

as general descriptive information. It’s important 

to know how many miles your new AFV will 

travel on a supply of fuel because, gallon-forgallon, some AFVs don’t travel as far as gasolinepowered vehicles. 

The labels on new and used AFVs also advise 

consumers to consider the following items before 

buying or leasing an AFV: 

• Fuel Type and Availability. What kind of 

fuel powers the vehicle? Find out whether 

refueling or recharging facilities are available 

in your area for the fuel the vehicle uses. 

• Operating Costs. Fuel and maintenance 

costs for AFVs can vary considerably and 

may differ from gasoline or diesel-fueled 

vehicles. Visit www.fueleconomy.gov for 

detailed information on gas mileage and 

cruising range for conventional vehicles and 

AFVs. 

• Performance/Convenience. Vehicles 

powered by different fuels vary in their 

ability to start when they are cold; their 

acceleration rates; the time it takes to 

completely refill the vehicle’s tank; and how 

they are refueled.

• Energy Security/Renewability. Find out 

where and how the fuel powering the vehicle 

is produced so you can anticipate long-term 

fuel availability at a reasonable price.

• Emissions. All vehicles affect the 

environment directly (from tailpipe emissions) 

and indirectly (how the fuel is produced 

and brought to market). Compare the 

environmental costs of driving an AFV to 

driving a gasoline-powered vehicle. Visit 

www.epa.gov/greenvehicle/ for comparative 

information about vehicle emissions.

Hybrid electric vehicles offer another option for 

car buyers, although the AFV Rule’s labeling 

requirements do not apply to them. According to 

DOE and the Environmental Protection Agency 

(EPA), these vehicles combine the benefits of 

gasoline engines and electric motors and can be 

configured to achieve a variety of objectives, such 

as improved fuel economy and increased power. 

For more information from DOE about hybrid 

electric vehicles, visit www.eere.energy.gov/

cleancities/vbg/consumers/hybrid.shtml.

ALTERNATIVE FUELS

The Fuel Rating Rule and the AFV Rule 

cover methanol, ethanol, natural gas, liquefied 

petroleum gases, hydrogen, coal derived liquid 

fuels, biodiesel, and electricity, among other 

fuels. For example, methanol is an odorless, clear 

liquid produced from natural gas, coal, or biomass 

resources, such as crop and forest residues. It 

usually is sold as a blend of 85 percent methanol 

and 15 percent gasoline. Ethanol, a liquid produced 

from grain or agricultural waste, usually is sold 

as a blend of 85 percent denatured ethanol and 15 

percent gasoline. 

The labels for these fuels are orange to distinguish 

them from gasoline octane labels, which are 

yellow. They must be placed on the fuel dispenser 

so that they are fully visible to consumers. 

Gasoline labels tell you the octane rating. 

Alternative fuel labels describe the fuel and its 

principal component(s). The rating for an 

alternative fuel — other than electricity — is the 

commonly used name of the fuel and the amount 

of its principal component, expressed as a 
Facts for Consumers

minimum percentage. For electric vehicle fuel 

dispensing systems, the fuel rating is a common 

identifier — like electricity and the system’s 

kilowatt capacity, voltage, amperage, and whether 

the voltage is alternating or direct current, and 

whether the system is conductive or inductive. 

CONSIDER THE ALTERNATIVES

Why consider switching to alternative fueled 

vehicles or alternative fuels? According to EPA, 

the tailpipe emissions from cars and trucks — 

unburned hydrocarbons, nitrogen oxides, carbon 

monoxide, particulate matter, and carbon dioxide 

— account for almost a third of the air pollution 

in the U.S. Driving alternative fueled vehicles 

could reduce the level of vehicle emissions. And 

many alternative fuels are produced domestically, 

so they promote economic activity in the U.S.

At the same time, consider that some alternative 

fuels have a lower energy content than gasoline. 

On a gallon-for-gallon basis, some alternative 

fuels do not allow consumers to travel as many 

miles as they could in a vehicle powered by 

gasoline or diesel fuel. In addition, an AFV may 

cost more than a comparable gasoline-powered 

vehicle. 

The good news is that you can help reduce 

pollution from vehicle emissions even if you 

don’t choose an AFV or alternative fuel. If you 

live or work in an area where air pollution is a 

continuing problem, your local service stations 

may carry reformulated gasoline, which has added 

oxygen and burns more cleanly than conventional 

gasoline. It is required in areas with the most 

serious levels of ozone air pollution and is being 

used by choice in others. 

FOR MORE INFORMATION

The Energy Policy Act of 1992 gave the 

Department of Energy primary responsibility 

for telling the public about alternative fuels and 

alternative fueled vehicles and promoting their 

use. Call DOE’s toll-free National Alternative 

Fuels Hotline, 1-800-423-1DOE, for more 

information about alternative fuels and alternative 

fueled vehicles, or visit the Department’s 

Alternative Fuels Information Center websites at 

www.afdc.doe.gov or www.eere.energy.gov/afdc. 

Additional information on automobile safety is 

available from the National Highway Traffic 

Safety Administration’s toll-free hotline 

(1-800-424-9393) and website, www.safercar.gov. 

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business 

practices in the marketplace and to provide 

information to help consumers spot, stop, and 

avoid them. To file a complaint or to get free 

information on consumer issues, visit ftc.gov or 

call toll-free, 1-877-FTC-HELP (1-877-382-4357); 

TTY: 1-866-653-4261. The FTC enters Internet, 

telemarketing, identity theft, and other fraudrelated complaints into Consumer Sentinel, a 

secure, online database available to hundreds of 

civil and criminal law enforcement agencies in the 

U.S. and abroad.
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

April 2006

Federal Trade Commission

Bureau of Consumer Protection

Offi ce of Consumer and Business Education

The Federal Trade Commission is the nation’s 

consumer protection agency. Here are some 

tips from the FTC to help you be a more savvy 

consumer.

1. Know who you’re dealing with. Do business 

only with companies that clearly provide their 

name, street address, and phone number.

2. Protect your personal information. Share 

credit card or other personal information only 

when buying from a company you know and trust. 

3. Take your time. Resist the urge to “act now.” 

Most any offer that’s good today will be good 

tomorrow, too.

4. Rate the risks. Every potentially high-profit 

investment is a high-risk investment. That means 

you could lose your investment — all of it. 

5. Read the small print. Get all promises in 

writing and read all paperwork before making any 

payments or signing any contracts. Pay special 

attention to the small print. 

6. “Free” means free. Throw out any offer that 

says you have to pay to get a gift or a “free” gift. 

If something is free or a gift, you don’t have to 

pay for it. Period. 

7. Report fraud. If you think you’ve been a victim 

of fraud, report it. It’s one way to get even with 

a scam artist who cheated you. By reporting your 

complaint to 1-877-FTC-HELP or ftc.gov, you 

are providing important information to help law 

enforcement officials track down scam artists and 

stop them!