UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

WASHINGTON. D.C. 20580

Division of Advertising Practices

August 1, 2008

VIA COURIER

D. Reed Freeman, Jf. Esq.

Kelley Drye Collier Shannon

Washington Harbour

Suite 400

Washington, DC 20007

Re: Johns Manville Corp., FTC File No. 072-3077

Dear Mr. Freeman:

As you know, the staff of the Federal Trade Commission's Division of Advertising

Practices has conducted an investigation into advertising by Johns Manville Corporation ("Johns

Manville") for possible violations of Section 5 of the Federal Trade Commission Act

("FTC Act"), 15 U.S.C. § 45. The investigation focused on the company's advertising for its

formaldehyde-free fiberglass insulation that referred to health risks associated with the use of

competitors' formaldehyde-bonded fiberglass insulation products.

This matter was referred to the FTC by the National Advertising Division of the Council

of Better Business Bureaus ("NAD"). In a letter dated February 15, 2007 , NAD informed the

FTC that it was unable to resolve a dispute between Johns Manville and The Formaldehyde

Council, Inc. regarding Johns Manville's advertising of its formaldehyde-free fiberglass

insulation. In its letter, NAD noted that despite three proceedings in this matter before that body,

Johns Manville continued to disseminate certain troubling advertising. In particular, the NAD

noted its continuing concern about certain claims regarding health risks associated with

formaldeh yde-bonded insulation versus formaldehyde-free insulation. NAD was also concerned

about continuing claims that Johns Manville's insulation products were the only ones that had

passed certain environmental testing standards.

After conducting a careful review of the matter, including non-public information

submitted to the staff, we have determined not to recommend enforcement action at this time.

Among the factors we considered is Johns Manville's agreement to take steps, including

modification of its ads, to address the concerns expressed by the FTC. Johns Manville has
D. Reed Freeman, Jr. Esq.

August 1, 2008

Page 2

agreed to ensure that advertising claims about a "healthier, safer home" resulting from the use of

the formaldehyde-free insulation are made only in the context of the overall reduction of

formaldehyde in the home so that the ad avoids any implication that formaldehyde-bonded

insulation presents a health risk. This would allow Johns Manville to use ads claiming that

reducing the amount of formaldehyde in the home can be healthier, and using the Johns Manville

product is one way of achieving that goal. Alternatively, Johns Manville may choose to add a

clear and prominent disclosure that "There is no evidence that the level of formaldehyde released

by formaldehyde-bonded insulation is harmful," provided that other representations in the ad do

not contradict or mitigate the disclosure.

Johns Manville has also agreed to ensure that claims referring to the classification of

formaldehyde as a carcinogen by the International Agency for Research on Cancer (lARC) would

only be made by Johns Manville if the claim also included a clear and prominent disclosure that

"there is no evidence that the level of formaldehyde released by formaldehyde-bonded insulation

is harmful." Again, this disclosure should not be contradicted or mitigated by other

representations contained in the ad. Finally, Johns Manville has agreed to take steps to ensure

that express or implied claims that "Johns Manville is the only fiber glass insulation that passes

Environmental Specification 1350 with non-detect for formaldehyde" are modified in the future.

The language of the modified claim must not imply that all other insulation fails to pass the

standard, since that is not the case.

Given Johns Manville's agreement to modify its advertising claims as set forth above ,

staff has decided to close the investigation. This action is not to be construed as a determination

that a violation may not have occurred, just as the pendency of an investigation should not be

construed as a determination that a violation has occurred. The Commission reserves the right to

take such further action as the public interest may require.

Very truly yours,

MAelEngle

}1 ::t.+-

Associate Director