The rule, which implements statutory requirements designed to encourage the use of recycled oil, permits manufacturers and other sellers to represent on a recycled engine-oil container label that the oil is substantially equivalent to new engine oil, as long as the determination of equivalency is based on test procedures prescribed by the new FTC rule. Approximately 65 million gallons of re-refined oil are sold in the United States each year.
Recycled oil is used in making passenger car motor oils, diesel engine oils, and other products.
The FTC promulgated the rule as required by the Energy Policy and Conservation Act. On July 27, NIST reported test procedures to the Commission for determining the equivalency of re-refined or otherwise processed used engine oils with new engine oils. On Aug. 24, the Commission sought comments on a proposed rule, and the 20 comments it received are summarized in the Federal Register notice published today announcing the final rule. The rule will be enforced by the Department of Justice, but the FTC has the authority to conduct investigations and recommend cases to Justice where warranted. The rule will be published in the Federal Register shortly.