The rule would implement statutory requirements designed to encourage the use of recycled oil, and would permit manufacturers 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 new FTC rule would govern labeling of containers for recycled oil intended for use as engine oil. The FTC has undertaken the rulemaking proceeding announced today as required by the Energy Policy and Conservation Act. As required by EPCA, the FTC must promulgate its final rule for used engine oil container labels by Oct. 25. The Commission is seeking public comments on the proposed rule announced today until Sept. 27. The proposal will be published in the Federal Register shortly.