Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of YOLO Colorhouse, LLC, File No. 1623082

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final

approval, an agreement containing a consent order from YOLO Colorhouse, LLC, a limited 

liability company (“respondent”).

The proposed consent order has been placed on the public record for thirty (30) days for

receipt of comments by interested persons. Comments received during this period will become

part of the public record. After thirty (30) days, the Commission will again review the

agreement and the comments received, and will decide whether it should withdraw from the

agreement or make final the agreement’s proposed order.

This matter involves respondent’s marketing, sale, and distribution of purportedly “VOCfree” paints. “VOC” is the abbreviation for volatile organic compounds. VOC-free includes 

claims such as “zero VOCs,” “0 VOCs,” and “No VOCs.” According to the FTC complaint, 

respondent made unsubstantiated representations that its paints: (1) are VOC-free; (2) are VOCfree during or immediately after painting; (3) will not emit any chemical or substance, including 

VOCs, that causes material harm to consumers, including sensitive populations such as children; 

and (4) will not emit any chemical or substance, including VOCs, during or immediately after 

painting, that causes material harm to consumers, including sensitive populations such as 

children. The FTC further alleges that respondent provided independent retailers with 

promotional materials containing the same claims it made to consumers. Thus, the complaint 

alleges that respondent engaged in deceptive practices in violation of Section 5(a) of the FTC 

Act.

The proposed consent order contains three provisions designed to prevent respondent

from engaging in similar acts and practices in the future. Part I prohibits emission-free and 

VOC-free claims unless both content and emissions are actually zero or at trace levels. The 

orders define “emission” to include all emissions (not just VOCs that cause smog). This 

definition reflects the Commission’s Enforcement Policy Statement and consumer expectations: 

consumers are likely concerned about the potential health effects from exposure to chemical 

emissions found in indoor air, not just VOCs that affect outdoor air quality. The order defines

“trace level of emission” to mean (1) no intentionally added VOC, (2) emission of the covered 

product does not cause material harm that consumers typically associate with emission, including 

harm to the environment or human health, and (3) emission of the covered product does not 

result in more than harmless concentrations of and compound higher than would be found under 

normal conditions in the typical residential home without interior architectural coating. Part II 

prohibits misleading representations regarding emission, VOC levels, odor, and any general 

environmental and health benefit of paints. The order requires competent and reliable scientific 

evidence to substantiate these representations. Part IV prohibits respondent from providing third 

parties with the means and instrumentalities to make false, unsubstantiated, or otherwise 

misleading representations of material fact regarding paints, including any representation 

prohibited by Parts I or II.
To correct existing unsubstantiated zero emission and VOC claims, Part III requires the 

respondent to send letters to its dealers and distributors, instructing them to put stickers on paint 

cans to obscure allegedly unsubstantiated emission and VOC claims.

Parts V through IX are reporting and compliance provisions. Part V mandates that 

respondent acknowledge receipt of the order, distribute the order to certain employees and 

agents, and secure acknowledgments from recipients of the order. Part VI requires that 

respondent submit compliance reports to the FTC within sixty (60) days of the order’s issuance 

and submit additional reports when certain events occur. Part VII requires that respondent must 

create and retain certain records for five (5) years. Part VIII provides for the FTC’s continued 

compliance monitoring of respondent’s activity during the order’s effective dates. Part IX is a 

provision “sunsetting” the order after twenty (20) years, with certain exceptions.

If the Commission finalizes the agreement’s proposed order, it plans to propose 

harmonizing with this order the consent orders issued in the PPG Architectural Finishes, Inc. 

(Docket No. C-4385) and The Sherwin-Williams Company (Docket No. C-4386) matters.

Specifically, the Commission plans to issue orders to show cause why those matters should not 

be modified pursuant to Section 3.72(b) of the Commission Rules of Practice, 16 C.F.R. § 

3.72(b).

The purpose of the analysis is to aid public comment on the proposed order. It is not 

intended to constitute an official interpretation of the proposed order or to modify its terms in 

any way.