Case 2:20-cv-02366-HLT Document 149 Filed 09/22/22 Page 1 of 14 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF KANSAS 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. Case No. 2:20-cv-02366-HLT 

SUPERIOR PRODUCTS INTERNATIONAL 

II, INC., and JOSEPH E. PRITCHETT, 

Defendants. 

PERMANENT INJUNCTION 

Plaintiff Federal Trade Commission brings this enforcement action against Defendants 

Superior Product International II, Inc. (“SPI”) and its president and CEO Joseph E. Pritchett.

Defendants market and sell Super Therm® and Sunshield. The Court resolved the competing 

summary judgment motions and determined that Plaintiff is entitled to a permanent injunction. The 

Court thus enters the following orders: 

FINDINGS 

1. This Court has jurisdiction over the subject matter of this case and jurisdiction over 

all parties. Venue in the District of Kansas is proper under 28 U.S.C. § 1391(b) and 15 U.S.C. 

§ 53(b). 

2. The Amended Complaint charges that Defendants participated in deceptive acts or 

practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45, in the marketing of 

architectural coating products that they purported were the equivalent of adding insulation with 

particular R-values and would save users substantial amounts of money on their energy bills. 

3. The Amended Complaint also charges that Defendants participated in deceptive acts 
 

 

 

 

 

 

 

 

 

 

 

 

 

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or practices in violation of Section 460.22 of the Trade Regulation Rule Concerning the Labeling 

and Advertising of Home Insulation (“R-value Rule” or “Rule”), 16 C.F.R. Part 460, in the 

marketing of their non-insulation products. 

4. The Complaint states a claim upon which relief may be granted against Defendants 

under Sections 5(a), 13(b), and 19 of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C.

§§ 45(a), 53(b), and 57b. 

5. The acts and practices of Defendant were, and are, in or affecting commerce, as 

defined in Section 4 of the FTC Act, 15 U.S.C. § 44. The record demonstrates that, absent the 

issuance of a permanent injunction, Defendants’ deceptive acts and practice are likely to recur.

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

“Defendants” means the Individual Defendant and the Corporate Defendant, individually, 

collectively, or in any combination. 

“Corporate Defendant” means Superior Products International II, Inc., and its successors 

and assigns. 

“Individual Defendant” means Joseph E. Pritchett. 

“Non-Insulation Products” means products Defendants create that are not insulation but 

marketed, in whole or in part, to reduce energy use. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:20-cv-02366-HLT Document 149 Filed 09/22/22 Page 3 of 14 

ORDER 

CONDUCT RELIEF 

I. 

THE COURT ORDERS that Defendants, Defendants’ officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale or distribution of any NonInsulation Product are permanently restrained and enjoined from misrepresenting or assisting others 

in misrepresenting, expressly or by implication: 

A. that Defendants’ Non-Insulation Products have an R-value equivalent to or 

substantially similar to the R-value of any other product or system, or provide the 

equivalent of adding insulation with any specific R-value; 

B. that Defendants’ Non-Insulation Products provide energy savings or any particular 

amount of energy savings; 

C. the existence, contents, validity, results, conclusions, or interpretations of any test 

or study; or 

D. any other material fact concerning Defendants’ Non-Insulation Products. 

II. 

THE COURT FURTHER ORDERS that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation with any of them, 

who receive actual notice of this Order, whether acting directly or indirectly, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any Non-
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Insulation Products, are permanently restrained and enjoined from making any representation, 

expressly or by implication: 

A. that Defendants’ Non-Insulation Products are equivalent to or substantially similar 

to the R-value of any other product or system, or provide the equivalent of adding 

insulation with any specific R-value; or 

B. that Defendants’ Non-Insulation Products will provide energy savings, or any 

particular amount of energy savings, 

unless the representation is non-misleading, and, at the time such representation is made, 

Defendants possess and rely upon competent and reliable scientific evidence that is sufficient in 

quality and quantity based on standards generally accepted in the relevant scientific fields, when 

considered in light of the entire body of relevant and reliable scientific evidence, to substantiate 

that the representation is true. 

III. 

THE COURT FURTHER ORDERS that Defendants, Defendants’ officers, agents,

employees, and attorneys, and all other persons in active concert or participation with any of them, 

who receive actual notice of this Order, whether acting directly or indirectly, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any NonInsulation Products, are hereby permanently restrained and enjoined from failing to comply with 

any provision of the Commission’s Trade Regulation Rule Concerning the Labeling and 

Advertising of Home Insulation (16 C.F.R. Part 460) (“R-value Rule” or the “Rule”), including but 

not limited to: 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:20-cv-02366-HLT Document 149 Filed 09/22/22 Page 5 of 14 

A. Failing to base R-value claims only on tests done under the methods set forth in 

16 C.F.R. § 460.5; 

B. Failing, in any advertised R-value, to fairly reflect the results of the tests conducted 

under to 16 C.F.R. § 460.5, as set forth in 16 C.F.R. § 460.22. 

IV. 

THE COURT FURTHER ORDERS that Defendants, Defendants’ officers, agents,

employees, and attorneys, and all other persons in active concert or participation with any of them, 

who receive actual notice of this Order, whether acting directly or indirectly, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any 

product, package, or service in or affecting commerce, shall not provide to others the means and 

instrumentalities with which to make, directly or indirectly, expressly or by implication, including 

through the use of endorsements or trade names, any false, unsubstantiated, or otherwise misleading 

representation of material fact covered by Sections I, II, or III. 

V. MONETARY JUDGMENT 

THE COURT FURTHER ORDERS that Judgment in the amount of $14,182.95 will be 

entered in favor of the Commission against Individual Defendant and Corporate Defendant, jointly 

and severally, as monetary relief. 

VI. ADDITIONAL MONETARY PROVISIONS 

THE COURT FURTHER ORDERS that: 

A. Defendants acknowledge that their Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendants 

previously submitted to the Commission, may be used for collecting and reporting 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. 

§ 7701. 

B. All money received by the Commission pursuant to this Order may be deposited into 

a fund administered by the Commission or its designee to be used for consumer 

relief, consistent with the Court’s Order, relating to certain sales of Super Therm® 

from May 13, 2020, through the date of this Order, and any attendant expenses for 

the administration of any redress fund. If a representative of the Commission decides 

that direct redress to consumers is wholly or partially impracticable or money 

remains after such redress is completed, the Commission shall so-notify the Court 

and Defendants. Defendants may seek a return of remaining assets at that time. 

VII. CUSTOMER INFORMATION 

THE COURT FURTHER ORDERS that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation with any of them, 

who receive actual notice of this Order, whether acting directly or indirectly, are permanently 

restrained and enjoined from directly or indirectly failing to provide sufficient customer information 

to enable the Commission to efficiently administer consumer redress. Defendants represent that 

they have provided this redress information to the Commission. If a representative of the 

Commission requests in writing any information related to redress, Defendants must provide it, in 

the form prescribed by the Commission, within 21 days. 

VIII. NOTICE TO MANUFACTURERS, RESELLERS, AND 

DISTRIBUTORS 

THE COURT FURTHER ORDERS that within 30 days of entry of this Order, Defendants 

shall send by electronic mail and certified U.S. mail, with return receipt, a copy of this Order and 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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the notice attached hereto as Attachment A to each reseller, distributor, and authorized 

representative to whom they sold their Non-Insulation Products; Defendants shall also require the 

recipients of such notice to remove from their marketing materials any false, misleading, or 

deceptive claims about Defendants’ Non-Insulation Products that are not in compliance with this 

Order. The mailing shall not include any other document. The cost of this mailing shall be borne 

by Defendants. Within five (5) days after the date this mailing is completed, Defendants shall 

provide to the Commission a list of all persons to whom Attachment A was sent, together with the 

address to which it was mailed (including email address(es), for notices provided electronically). 

Defendants shall maintain records evidencing the sending of the notice attached hereto as 

Attachment A for a period of 5 years following the date of entry of this Order. 

IX. ORDER ACKNOWLEDGMENTS 

THE COURT FURTHER ORDERS that Defendants obtain acknowledgments of receipt of 

this Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission 

an acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order, the Individual Defendant for any business that such 

Defendant, individually or collectively with any other Defendant, is the majority owner 

or controls directly or indirectly, and each Corporate Defendant, must deliver a copy of 

this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) 

all employees having managerial responsibilities for the marketing of Non-Insulation 

Products and all agents and representatives who participate in the marketing of NonInsulation Products; and (3) any business entity resulting from any change in structure 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 

days of entry of this Order for current personnel. For all others, delivery must occur 

before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this Order, that 

Defendant must use all reasonable efforts to obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

X. COMPLIANCE REPORTING 

THE COURT FURTHER ORDERS that Defendants make timely submissions to the 

Commission: 

A. One year after entry of this Order, each Defendant must submit a compliance report, 

sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which 

representatives of the Commission may use to communicate with Defendant; (b) 

identify all of that Defendant’s businesses by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe the 

activities of each business and the involvement of any other Defendant (which 

Individual Defendant must describe if they know or should know due to their 

own involvement); (d) describe in detail whether and how that Defendant is in 

compliance with each Section of this Order; and (e) provide a copy of each Order 

Acknowledgment obtained pursuant to this Order, unless previously submitted 

to the Commission. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2. Additionally, each Individual Defendant must: (a) identify all telephone numbers 

and all physical, postal, email and Internet addresses, including all residences; 

(b) identify all business activities, including any business for which such 

Defendant performs services, whether as an employee or otherwise, and any 

entity in which such Defendant has any ownership interest; and (c) describe in 

detail such Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership. 

B. For 5 years after entry of this Order, each Defendant must submit a compliance notice, 

sworn under penalty of perjury, within 21 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of contact; 

or (b) the structure of any Corporate Defendant or any entity that Defendant has 

any ownership interest in or controls, directly or indirectly, that may affect 

compliance obligations arising under this Order, including: creation, merger, 

sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages 

in any acts or practices subject to this Order. 

2. Additionally, each Individual Defendant must report any change in: (a) name, 

including aliases or fictitious names, or residence address; or (b) title or role in 

any business activity, including any business for which such Defendant performs 

services, whether as an employee or otherwise, and any entity in which such 

Defendant has any ownership interest, and identify the name, physical address, 

and any Internet address of the business or entity. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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C. Each Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against such Defendant 

within 21 days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: “I declare under penalty of perjury under the laws of the United States of 

America that the foregoing is true and correct. Executed on: _____” and supplying the 

date, signatory’s full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all submissions 

to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent 

by overnight courier (not the U.S. Postal Service) to: Associate Director for 

Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 

Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC 

v. Superior Products International II, Inc., FTC Matter No. X200053. 

XI. RECORDKEEPING 

THE COURT FURTHER ORDERS that Defendants must create certain records for 5 years 

after entry of this Order, and retain each such record for 5 years. Specifically, Corporate Defendant 

and Individual Defendant for any business that such Defendant, individually or collectively with 

any other Defendant, is a majority owner or controls directly or indirectly, must create and retain 

the following records: 

A. Accounting records showing the revenues from all goods or services sold; 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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B. Personnel records showing, for each person providing services, whether as an employee 

or otherwise, that person’s: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

C. Records of all consumer complaints and refund requests, whether received directly or 

indirectly, such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with each provision of this Order, 

including all submissions to the Commission; 

E. A copy of each unique advertisement or other marketing material; and 

F. For any claim covered by Section II of this Order, Defendants shall maintain all records 

that prove or disprove such claim for five years, and such five-year period shall begin 

anew each time Defendants make the claim. A claim is “made” each time Defendants

make it as well as on each day it appears on Defendants’ website or other forum. 

XII. COMPLIANCE MONITORING 

THE COURT FURTHER ORDERS that, for the purpose of monitoring Defendants’

compliance with this Order, including any failure to transfer any assets as required by this Order: 

A. Within 21 days of receipt of a written request from a representative of the Commission, 

each Defendant must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; and 

produce documents for inspection and copying. The Commission is also authorized to 

obtain discovery, without further leave of court, using any of the procedures prescribed 

by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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34, 36, 45, and 69. Defendants may seek any appropriate relief from the Court on the 

propounded discovery. 

B. For matters concerning this Order, the Commission is authorized to communicate 

directly with each Defendant. Defendant must permit representatives of the Commission 

to interview any employee or other person affiliated with any Defendant who has agreed 

to such an interview. The person interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, through its 

representatives, as consumers, suppliers, or other individuals or entities, to Defendants 

or any individual or entity affiliated with Defendants, without the necessity of 

identification or prior notice. Nothing in this Order limits the Commission’s lawful use 

of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 

57b-1. 

D. Upon written request from a representative of the Commission, any consumer reporting 

agency must furnish consumer reports concerning the Individual Defendant, pursuant to 

Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1). 

XIII. RETENTION OF JURISDICTION 

THE COURT FURTHER ORDERS that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

IT IS SO ORDERED. 

Dated: September 22, 2022 /s/ Holly L. Teeter 

HOLLY L. TEETER 

UNITED STATES DISTRICT JUDGE 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:20-cv-02366-HLT Document 149 Filed 09/22/22 Page 13 of 14 

ATTACHMENT A 

NOTICE TO DISTRIBUTORS 

[To be printed on Superior Products International II, Inc. letterhead and sent by email and certified 

mail] 

[Date] 

[Name and address of recipient] 

Re: Federal Trade Commission v. Superior Products International II, Inc., No. 2:20-cv-2366-HLTGEB (D. Kan.) 

Dear [Recipient]: 

The Federal Trade Commission (FTC), the nation’s consumer protection agency,sued usfor making

false and misleading claims about two of our products, Super Therm® and Sunshield. 

We said that: 

• Super Therm provides substantial energy savings 

• Super Therm has an R-value of R-19, or is equal, equivalent, or comparable to R-19 

• Sunshield has an R-17 equivalent rating. 

The FTC said that: 

• These claims are false because we do not have scientific evidence to prove them 

• The R-value, and R-value equivalent, of Super Therm and of Sunshield is no greater than 

R-0.1, not R-19. 

A U.S. federal court has determined that our claims were false and unsubstantiated. The Court 

entered a Permanent Injunction against us prohibiting us from making these types of claims about 

our products if we do not have competent and reliable scientific evidence to prove them. Anecdotal 

evidence and consumer testimonials are not considered competent and reliable scientific evidence. 

As a distributor of Super Therm and/or Sunshield, you must correct your marketing, 

advertising, and promotional materials to remove any false or misleading claims about these 

products. If you make any claims about the performance of these products, you must have 

competent and reliable scientific evidence to prove them. 

We have enclosed a copy of the final court order. Read it. Failure to follow any provisions of the 

order that apply to you could result in civil or criminal sanctions. 

For more information, go to https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reformproceedings/r-value-rule. If you have any questions, please contact [name, address, phone number, 

and email address of representative of Defendants]. 
 

Case 2:20-cv-02366-HLT Document 149 Filed 09/22/22 Page 14 of 14 

Sincerely, 

J.E. Pritchett 

Superior Products International II, Inc.