Reliance Wood Preserving, Inc

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In THE MATTER OF RELIANCE WOOD PRESERVING, INC., ET AL.

CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC.5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3210. Complaint, April 2, 1987—Decision, April 2, 1987 This consent order prohibits, among other things, the Federalsburg, MD manufacturer of flame-retardant, pressure-treated wood from misrepresenting the flame-retardant value of its products and requires respondents to notify purchasers that some of the wood may not meet established safety standards. Appearances For the Commission: Charles Peterson and Truett M. Honeycutt. For the respondents: Starke Evans, Federalsburg, MD. Complaint The Federal Trade Commission, having reason to believe that Reliance Wood Preserving, Inc., a corporation, McCoy Industries, Inc., a corporation, Reliance Treated Wood, Inc., a corporation, and Daniel Roy Dorman, individually and as an officer of Reliance Wood Preserving, Inc., (“respondents”) have violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. (a) Respondent Reliance Wood Preserving, Inc. (Reliance), is a Maryland corporation with its office and principal place of business located in the Federalsburg Industrial Park, P.O. Box 349, Federalsburg, Maryland 21632. Respondent Reliance manufactures, advertises, and sells fire retardant treated wood (FRTW). (b) Respondent Daniel Roy Dorman (Dorman) resides in the State of Maryland. He is president of respondent Reliance; he directs, controls, formulates, or participates in the acts and practices of respondent Reliance.

(c) Respondent Reliance Treated Wood, Inc. (Treated Wood), is a North Carolina corporation with its office located at 300 East Wendover Avenue, Greensboro, North Carolina 27420 and its principal place of business located at Federalsburg Office Park, Federalsburg, Maryland. Respondent Treated Wood advertises and sells FRTW. (d) Respondent McCoy Industries, Inc. (McCoy), is a North Carolina Complaint 109 F.T.C.

corporation with its office and principal place of business located at 300 East Wendover Avenue, Greensboro, North Carolina 27420. McCoy owns 100% of the outstanding stock of respondent Treated Wood.

DEFINTIONS Par. 2. For the purposes of this Complaint, the following definitions apply:

a. ASTM5 1 6 1 1 3 904 1130 31 32 93.061119 E5 1 6 1 1 4 951 1132 63 31 95.037254 84”5 1 6 1 1 5 1033 1132 28 32 96.311913 is5 1 6 1 1 6 1079 1142 21 22 96.162872 a5 1 6 1 1 7 1117 1135 70 30 96.719055 tests 1 6 1 1 8 1204 1134 198 39 96.706085 recognized5 1 6 1 1 9 1421 1136 35 31 96.423393 in5 1 6 1 1 10 1475 1135 60 32 96.987473 thes 1 6 1 1 11 1552 1136 136 33 96.739456 lumber5 1 6 1 1 12 1706 1137 160 40 96.230629 industry5 1 6 1 1 13 1884 1148 38 22 96.230629 as5 1 6 1 1 14 1939 1149 22 21 96.678787 a4 1 6 1 2 0 652 1182 1308 42 -1 5 1 6 1 2 1 652 1190 160 22 96.460434 measures 1 6 1 2 2 832 1182 40 31 96.525566 of5 1 6 1 2 3 884 1182 60 32 96.525566 thes 1 6 1 2 4 964 1182 64 33 93.300674 fires 1 6 1 2 5 1048 1184 208 40 92.594772 retardancy5 1 6 1 2 6 1275 1184 40 32 96.556297 of5 1 6 1 2 7 1327 1185 94 33 96.840286 woods 1 6 1 2 8 1440 1186 105 33 96.323792 based5 1 6 1 2 9 1564 1197 44 22 95.528336 on5 1 6 1 2 10 1627 1187 60 33 95.528336 thes 1 6 1 2 11 1706 1191 77 30 96.877388 rates 1 6 1 2 12 1802 1189 39 32 95.516708 of5 1 6 1 2 13 1853 1189 107 32 95.516708 flame4 1 6 1 3 0 652 1232 133 39 -1 5 1 6 1 3 1 652 1232 133 39 96.445045 spread.3 1 6 2 0 0 650 1283 1308 195 -1 4 1 6 2 1 0 692 1283 1266 46 -1 5 1 6 2 1 1 692 1283 31 32 92.978455 b.5 1 6 2 1 2 739 1283 55 33 95.883560 An5 1 6 2 1 3 814 1284 144 33 92.268013 “ASTM5 1 6 2 1 4 958 1279 23 54 92.268013 E5 1 6 2 1 5 1012 1286 42 31 96.783989 845 1 6 2 1 6 1068 1286 107 40 96.738945 flames 1 6 2 1 7 1189 1288 124 39 96.298172 spreads 1 6 2 1 8 1329 1288 121 32 95.880692 index”5 1 6 2 1 9 1466 1288 118 37 96.578842 (flames 1 6 2 1 10 1599 1291 124 38 96.710335 spreads 1 6 2 1 11 1738 1291 115 36 96.006401 index)5 1 6 2 1 12 1868 1292 39 32 96.328514 of5 1 6 2 1 13 1915 1292 43 32 96.328514 254 1 6 2 2 0 651 1335 1307 48 -1 5 1 6 2 2 1 651 1346 38 21 96.979057 or5 1 6 2 2 2 703 1335 67 33 95.939369 less5 1 6 2 2 3 783 1336 29 32 96.818413 is5 1 6 2 2 4 825 1335 60 33 96.818413 thes 1 6 2 2 5 898 1346 96 23 96.823242 scores 1 6 2 2 6 1006 1337 80 33 96.486328 that5 1 6 2 2 7 1099 1342 100 33 96.711960 most,5 1 6 2 2 8 1213 1338 31 33 93.982849 if5 1 6 2 2 9 1253 1342 60 29 93.982849 not5 1 6 2 2 10 1326 1339 56 38 94.644485 all,5 1 6 2 2 11 1396 1340 158 40 96.928505 buildings 1 6 2 2 12 1567 1341 98 33 96.605347 codes5 1 6 2 2 13 1679 1343 137 40 96.750664 requires 1 6 2 2 14 1830 1353 20 23 96.722786 a5 1 6 2 2 15 1863 1344 95 32 96.709091 wood4 1 6 2 3 0 650 1386 1307 46 -1 5 1 6 2 3 1 650 1386 146 40 96.955254 products 1 6 2 3 2 813 1390 35 29 96.949242 to5 1 6 2 3 3 865 1387 119 33 96.275726 obtains 1 6 2 3 4 1003 1389 36 31 96.975945 in5 1 6 2 3 5 1057 1389 102 32 96.091469 orders 1 6 2 3 6 1176 1393 35 29 96.871895 to5 1 6 2 3 7 1228 1389 42 33 96.916412 be5 1 6 2 3 8 1289 1391 83 32 96.572830 used5 1 6 2 3 9 1390 1392 35 30 96.362366 in5 1 6 2 3 10 1444 1392 133 32 96.257385 certain5 1 6 2 3 11 1596 1393 228 39 96.876877 applications5 1 6 2 3 12 1842 1395 115 32 96.309273 where4 1 6 2 4 0 650 1437 356 41 -1 5 1 6 2 4 1 650 1437 124 32 91.644836 FRTW5 1 6 2 4 2 791 1438 29 32 93.988167 is5 1 6 2 4 3 838 1439 168 39 96.599319 required.3 1 6 3 0 0 649 1489 1307 140 -1 4 1 6 3 1 0 691 1489 1265 40 -1 5 1 6 3 1 1 691 1499 25 22 91.335037 c.5 1 6 3 1 2 739 1489 91 32 88.012566 “Fires 1 6 3 1 3 844 1489 195 32 96.303864 Retardant5 1 6 3 1 4 1056 1490 141 34 96.122055 Treated5 1 6 3 1 5 1216 1491 121 33 95.822090 Wood”5 1 6 3 1 6 1352 1503 38 21 89.112885 or5 1 6 3 1 7 1409 1493 162 32 80.709869 “FRTW”5 1 6 3 1 8 1587 1494 29 32 96.866821 is5 1 6 3 1 9 1629 1495 96 32 96.240425 woods 1 6 3 1 10 1739 1495 80 32 96.544312 that5 1 6 3 1 11 1832 1495 64 33 96.490677 has5 1 6 3 1 12 1910 1507 46 22 96.993294 an4 1 6 3 2 0 649 1539 1307 46 -1 5 1 6 3 2 1 649 1539 122 33 96.268028 ASTM5 1 6 3 2 2 792 1540 106 32 96.328812 flames 1 6 3 2 3 919 1542 125 37 96.713692 spreads 1 6 3 2 4 1066 1542 103 31 96.713692 index5 1 6 3 2 5 1189 1543 40 30 95.997116 of5 1 6 3 2 6 1245 1544 41 30 96.975266 255 1 6 3 2 7 1309 1554 37 21 96.958641 or5 1 6 3 2 8 1367 1544 67 31 96.062866 less5 1 6 3 2 9 1456 1545 68 30 96.234703 ands 1 6 3 2 10 1545 1545 29 31 96.905510 is5 1 6 3 2 11 1596 1545 205 40 96.437805 chemically5 1 6 3 2 12 1821 1547 135 32 96.832458 treated4 1 6 3 3 0 649 1590 883 39 -1 5 1 6 3 3 1 649 1590 111 32 96.096123 under5 1 6 3 3 2 777 1601 161 28 96.329277 pressures 1 6 3 3 3 954 1592 85 31 96.341995 with5 1 6 3 3 4 1056 1592 65 31 96.964241 fires 1 6 3 3 5 1138 1593 184 33 96.672874 retardant5 1 6 3 3 6 1339 1593 193 34 96.440628 chemicals.3 1 6 4 0 0 649 1641 1321 142 -1 4 1 6 4 1 0 690 1641 1280 46 -1 5 1 6 4 1 1 690 1641 29 32 92.608513 d.5 1 6 4 1 2 740 1641 264 41 89.127869 “Respondents’5 1 6 4 1 3 1015 1643 146 32 89.912979 FRTW”5 1 6 4 1 4 1176 1655 121 21 95.696953 means5 1 6 4 1 5 1310 1646 95 31 96.362961 woods 1 6 4 1 6 1419 1646 78 31 96.423485 that5 1 6 4 1 7 1510 1647 163 32 96.374023 Reliance5 1 6 4 1 8 1687 1648 64 32 93.172180 has5 1 6 4 1 9 1764 1652 191 35 80.588364 represent-5 1 6 4 1 10 1968 1671 2 2 63.346451 .4 1 6 4 2 0 649 1692 1305 44 -1 5 1 6 4 2 1 649 1692 40 30 96.756187 ed5 1 6 4 2 2 700 1701 39 22 95.789032 or5 1 6 4 2 3 749 1692 147 33 96.040352 Treated5 1 6 4 2 4 907 1693 104 32 96.500587 Woods 1 6 4 2 5 1022 1694 64 31 96.522552 has5 1 6 4 2 6 1097 1695 196 32 96.348473 advertised5 1 6 4 2 7 1305 1705 38 22 96.934464 as5 1 6 4 2 8 1353 1696 103 40 96.543053 beings 1 6 4 2 9 1465 1696 65 32 96.046165 fires 1 6 4 2 10 1542 1698 182 31 96.741272 retardant5 1 6 4 2 11 1735 1709 38 21 96.993217 or5 1 6 4 2 12 1783 1698 88 33 94.638069 class5 1 6 4 2 13 1883 1699 71 32 69.576859 “A”4 1 6 4 3 0 649 1743 742 40 -1 5 1 6 4 3 1 649 1753 37 21 95.975304 or5 1 6 4 3 2 703 1743 129 39 96.740265 having5 1 6 4 3 3 848 1755 21 21 96.670380 a5 1 6 4 3 4 886 1744 106 32 96.455421 flames 1 6 4 3 5 1009 1746 124 37 96.628654 spreads 1 6 4 3 6 1150 1746 40 31 96.628654 of5 1 6 4 3 7 1201 1746 41 31 96.787102 255 1 6 4 3 8 1260 1756 38 22 96.825401 or5 1 6 4 3 9 1315 1746 76 33 96.768776 less.3 1 6 5 0 0 647 1794 1307 84 -1 4 1 6 5 1 0 688 1794 1266 46 -1 5 1 6 5 1 1 688 1804 28 22 92.272560 e.5 1 6 5 1 2 732 1794 30 31 96.301765 A5 1 6 5 1 3 782 1794 105 33 85.313354 “class5 1 6 5 1 4 907 1794 49 33 93.833740 ‘A’5 1 6 5 1 5 969 1796 134 40 93.143242 rating”5 1 6 5 1 6 1120 1807 121 22 96.747093 means5 1 6 5 1 7 1255 1797 80 32 93.292015 that5 1 6 5 1 8 1348 1798 124 32 92.019836 FRTW5 1 6 5 1 9 1487 1809 172 29 96.799904 possesses5 1 6 5 1 10 1674 1810 21 21 95.975578 a5 1 6 5 1 11 1708 1800 108 32 95.975578 flames 1 6 5 1 12 1831 1801 123 39 96.569092 spread4 1 6 5 2 0 647 1845 360 33 -1 5 1 6 5 2 1 647 1845 103 31 95.980438 index5 1 6 5 2 2 767 1845 39 31 95.980438 of5 1 6 5 2 3 817 1845 42 31 96.449532 255 1 6 5 2 4 877 1856 37 21 96.895966 or5 1 6 5 2 5 932 1846 75 32 94.237961 less.3 1 6 6 0 0 646 1896 1308 82 -1 4 1 6 6 1 0 688 1896 1266 43 -1 5 1 6 6 1 1 688 1896 22 30 81.874039 f.5 1 6 6 1 2 736 1896 266 40 72.933083 “Flameguard”5 1 6 6 1 3 1022 1897 30 32 96.743622 is5 1 6 6 1 4 1072 1908 26 21 40.532879 a.5 1 6 6 1 5 1110 1898 112 31 40.532879 brands 1 6 6 1 6 1242 1908 103 22 96.812294 names 1 6 6 1 7 1365 1899 78 32 96.345749 that5 1 6 6 1 8 1462 1901 227 38 95.929520 respondents5 1 6 6 1 9 1709 1911 62 22 95.929520 uses 1 6 6 1 10 1790 1902 53 32 96.416489 for5 1 6 6 1 11 1861 1902 93 32 96.416489 their4 1 6 6 2 0 646 1946 133 32 -1 5 1 6 6 2 1 646 1946 133 32 91.577469 FRTW.3 1 6 7 0 0 645 1997 1309 142 -1 4 1 6 7 1 0 686 1997 1268 47 -1 5 1 6 7 1 1 686 2007 30 29 91.951233 g.5 1 6 7 1 2 742 1997 266 34 86.064461 “Underwriters5 1 6 7 1 3 1027 1999 261 33 96.058159 Laboratories”5 1 6 7 1 4 1308 2001 83 35 96.628006 (UL)5 1 6 7 1 5 1411 2001 28 32 96.962845 is5 1 6 7 1 6 1459 2012 22 21 96.693741 a5 1 6 7 1 7 1501 2001 197 42 96.189537 laboratory5 1 6 7 1 8 1718 2004 89 37 96.539604 that,5 1 6 7 1 9 1828 2014 126 30 96.558235 among4 1 6 7 2 0 646 2048 1307 47 -1 5 1 6 7 2 1 646 2048 100 32 96.857056 others 1 6 7 2 2 762 2049 126 39 96.808235 things,5 1 6 7 2 3 905 2052 86 29 96.902542 tests5 1 6 7 2 4 1007 2049 60 32 96.940277 thes 1 6 7 2 5 1084 2050 64 33 93.290306 fires 1 6 7 2 6 1165 2051 208 41 92.959412 retardancy5 1 6 7 2 7 1389 2052 39 32 96.910324 of5 1 6 7 2 8 1437 2053 95 32 96.854172 woods 1 6 7 2 9 1549 2054 69 32 96.467468 ands 1 6 7 2 10 1633 2054 171 39 96.034279 performs5 1 6 7 2 11 1820 2055 133 40 95.871155 quality4 1 6 7 3 0 645 2099 562 40 -1 5 1 6 7 3 1 645 2099 132 32 96.626907 controls 1 6 7 3 2 795 2100 210 39 96.510620 inspections5 1 6 7 3 3 1022 2101 40 31 92.675179 of5 1 6 7 3 4 1074 2101 133 32 91.338013 FRTW.3 1 6 8 0 0 644 2150 1308 93 -1 4 1 6 8 1 0 686 2150 1266 46 -1 5 1 6 8 1 1 686 2150 33 32 92.888496 h.5 1 6 8 1 2 739 2151 87 32 85.245766 “Thes 1 6 8 1 3 838 2151 186 33 95.991585 Americans 1 6 8 1 4 1042 2152 100 32 93.303535 Woods 1 6 8 1 5 1155 2153 189 32 91.711937 Preservers5 1 6 8 1 6 1357 2154 159 32 96.159981 Bureau”5 1 6 8 1 7 1531 2155 28 31 96.643745 is5 1 6 8 1 8 1574 2166 45 21 96.449844 an5 1 6 8 1 9 1634 2156 161 40 93.297165 industry5 1 6 8 1 10 1808 2157 144 32 91.291199 associa-4 1 6 8 2 0 644 2201 781 42 -1 5 1 6 8 2 1 644 2201 74 32 96.320923 tions 1 6 8 2 2 735 2202 191 32 96.430977 concerned5 1 6 8 2 3 942 2202 86 32 96.758530 with5 1 6 8 2 4 1044 2203 60 32 96.313889 thes 1 6 8 2 5 1122 2204 134 39 96.691360 quality5 1 6 8 2 6 1272 2205 39 31 95.602142 of5 1 6 8 2 7 1321 2205 104 32 96.919731 wood.3 1 6 9 0 0 644 2252 1305 92 -1 4 1 6 9 1 0 686 2252 1263 46 -1 5 1 6 9 1 1 686 2253 19 31 92.593468 i.5 1 6 9 1 2 732 2252 153 32 96.594513 “Timber5 1 6 9 1 3 901 2253 166 33 96.530411 Products5 1 6 9 1 4 1085 2254 214 40 96.474541 Inspection”5 1 6 9 1 5 1319 2256 29 31 96.474541 is5 1 6 9 1 6 1367 2266 21 21 96.848221 a5 1 6 9 1 7 1408 2256 133 40 96.048691 quality5 1 6 9 1 8 1560 2257 131 32 96.562424 controls 1 6 9 1 9 1711 2268 132 30 96.825134 agency5 1 6 9 1 10 1861 2258 88 38 96.670494 that,4 1 6 9 2 0 644 2304 1287 40 -1 5 1 6 9 2 1 644 2313 126 28 96.609955 among5 1 6 9 2 2 787 2304 100 31 96.690498 others 1 6 9 2 3 904 2304 126 40 96.520805 things,5 1 6 9 2 4 1048 2307 125 30 96.799515 attests5 1 6 9 2 5 1190 2308 36 30 96.642189 to5 1 6 9 2 6 1242 2306 60 32 96.310028 thes 1 6 9 2 7 1319 2306 70 32 96.688881 facts 1 6 9 2 8 1405 2307 79 31 96.799034 that5 1 6 9 2 9 1500 2307 95 32 96.693344 woods 1 6 9 2 10 1612 2309 29 31 95.920570 is5 1 6 9 2 11 1658 2308 65 32 95.920570 fires 1 6 9 2 12 1740 2309 191 32 96.728516 retardant.3 1 6 10 0 0 643 2354 1307 136 -1 4 1 6 10 1 0 685 2354 1265 44 -1 5 1 6 10 1 1 685 2354 83 31 95.957832 Par.5 1 6 10 1 2 786 2355 28 31 96.691536 3.5 1 6 10 1 3 831 2355 71 31 96.175858 Thes 1 6 10 1 4 919 2359 73 28 96.175858 acts5 1 6 10 1 5 1007 2355 69 32 96.497147 ands 1 6 10 1 6 1092 2357 168 38 96.325241 practices5 1 6 10 1 7 1276 2357 39 31 96.279610 of5 1 6 10 1 8 1325 2358 227 39 96.306725 respondents5 1 6 10 1 9 1568 2359 133 39 96.231216 alleged5 1 6 10 1 10 1717 2360 36 31 96.420578 in5 1 6 10 1 11 1768 2360 71 32 93.296616 this5 1 6 10 1 12 1855 2360 95 32 92.432648 Com-4 1 6 10 2 0 643 2403 1305 43 -1 5 1 6 10 2 1 643 2403 113 40 92.251305 plaints 1 6 10 2 2 769 2405 89 32 96.574150 have5 1 6 10 2 3 871 2405 88 32 96.673317 been5 1 6 10 2 4 973 2406 36 31 94.704346 in5 1 6 10 2 5 1023 2416 38 21 96.414330 or5 1 6 10 2 6 1075 2406 166 40 96.356346 affecting5 1 6 10 2 7 1255 2418 199 27 96.394020 commerce,5 1 6 10 2 8 1469 2418 38 22 95.589157 as5 1 6 10 2 9 1522 2409 231 34 90.284439 “commerce”5 1 6 10 2 10 1768 2411 28 32 95.627029 is5 1 6 10 2 11 1810 2411 138 32 96.592560 defined4 1 6 10 3 0 643 2455 739 35 -1 5 1 6 10 3 1 643 2455 37 31 96.790443 in5 1 6 10 3 2 696 2455 60 32 96.420845 thes 1 6 10 3 3 774 2455 143 33 96.469360 Federal5 1 6 10 3 4 934 2456 111 32 96.492241 Trades 1 6 10 3 5 1062 2457 229 32 96.567276 Commissions 1 6 10 3 6 1308 2458 74 32 96.488113 Act.2 1 7 0 0 0 1222 2568 147 23 -1 3 1 7 1 0 0 1222 2568 147 23 -1 4 1 7 1 1 0 1222 2568 147 23 -1 5 1 7 1 1 1 1222 2568 120 23 95.691605 COUNTS 1 7 1 1 2 1358 2569 11 22 95.691605 I2 1 8 0 0 0 640 2657 1307 192 -1 3 1 8 1 0 0 641 2657 1306 94 -1 4 1 8 1 1 0 683 2657 1264 46 -1 5 1 8 1 1 1 683 2657 83 32 88.204834 Par.5 1 8 1 1 2 781 2659 29 30 96.767509 4.5 1 8 1 1 3 825 2658 71 31 97.006638 Thes 1 8 1 1 4 910 2659 205 39 96.369278 allegations5 1 8 1 1 5 1129 2660 184 32 96.268089 contained5 1 8 1 1 6 1327 2662 36 30 96.809639 in5 1 8 1 1 7 1377 2662 214 39 96.532867 paragraphs5 1 8 1 1 8 1605 2673 64 21 96.637909 ones 1 8 1 1 9 1682 2664 152 39 96.860283 through5 1 8 1 1 10 1847 2664 100 31 96.660583 three4 1 8 1 2 0 641 2709 720 42 -1 5 1 8 1 2 1 641 2719 60 21 96.819710 ares 1 8 1 2 2 719 2709 240 39 96.099510 incorporated5 1 8 1 2 3 976 2710 122 32 96.099510 herein5 1 8 1 2 4 1114 2710 45 41 96.225380 by5 1 8 1 2 5 1175 2711 186 32 96.758644 reference.3 1 8 2 0 0 640 2759 1305 90 -1 4 1 8 2 1 0 682 2759 1263 44 -1 5 1 8 2 1 1 682 2759 84 32 96.064743 Par.5 1 8 2 1 2 786 2761 29 30 95.735748 5.5 1 8 2 1 3 834 2760 239 40 96.005318 Respondents5 1 8 2 1 4 1091 2761 163 33 96.406059 Reliance5 1 8 2 1 5 1273 2762 68 32 96.168457 ands 1 8 2 1 6 1359 2762 153 33 96.359261 Dorman5 1 8 2 1 7 1530 2764 89 32 96.445900 have5 1 8 2 1 8 1637 2764 120 39 96.445900 placed5 1 8 2 1 9 1775 2765 108 32 96.994949 labels5 1 8 2 1 10 1902 2776 43 21 96.643951 on4 1 8 2 2 0 640 2811 787 38 -1 5 1 8 2 2 1 640 2811 238 38 93.035439 respondents’5 1 8 2 2 2 896 2812 123 31 92.709419 FRTW5 1 8 2 2 3 1036 2812 79 32 96.681847 that5 1 8 2 2 4 1132 2812 82 33 96.431808 reads 1 8 2 2 5 1232 2823 38 22 96.431808 as5 1 8 2 2 6 1288 2814 139 31 96.122253 follows: RELIANCE WOOD PRESERVING, INC., ET AL. 87 85 Complaint a. FLAMEGUARD ASTM-E 84 25 OR LESS MEA 140-83 M Exterior b. 83 FLAMEGUARD 84 Fire Retardant Treated Wood ASTM-E 84 25 OR LESS Reliance Wood Preserving, Inc., Federalsburg, Maryland Quality assured by Timber Products Inspection Par. 6. Through the use of the labels on respondents’ FRTW described in paragraph five above, respondents Reliance and Dorman have made the following material representations, directly or by implication:

(1) Respondents’ FRTW bearing the labels placed on it by respondents Reliance and Dorman, as described in paragraph five above, has a flame spread index of 25 or less as measured by the ASTM E 84 test. (2) Respondents’ FRTW bearing the labels placed on it by respondents Reliance and Dorman, as described in paragraph five above, is quality assured or otherwise approved by Timber Products Inspection.

Par. 7: In truth and in fact:

(1) At least some of respondents’ FRTW bearing the labels placed on it by respondents Reliance and Dorman, as described in paragraph five above, which was sold prior to April 15, 1985, does not have a flame spread index of 25 or less.

(2) At least some of respondents’ FRTW bearing the labels placed on it by respondents Reliance and Dorman, as described in paragraph five above, which was sold prior to April 15, 1985, is not quality assured or otherwise approved by Timber Products Inspection. Therefore, the representations set forth in paragraph six were and are false and misleading.

COUNT II Par. 8. The allegations contained in paragraphs one through three are incorporated herein by reference.

Par. 9. Respondent Treated Wood advertises FRTW through promotional flyers and brochures. In such advertisements, Treated Wood Complaint 109 F.T.C.

has made various statements, prior to April 15, 1985, concerning the fire retardant properties and the quality classifications, approvals, or certifications of respondents’ FRTW. Typical and illustrative of these statements, but not all-inclusive thereof, are the following from the promotional flyer attached hereto as Exhibit A: a. “Flameguard has a low flame spread index of 25 or less”; b. ‘“Flameguard is UL classified”;

c. “All tests have been conducted and certified by the TPI Agency, Conyers, Georgia”; and d. “All lumber and plywood to be fire-retardant treated will be pressure treated with Reliance Flameguard to comply with the requirements of a flame spread rating of 25 or less when tested for a period of not less than 30 minutes without evidence of significant progressive combustion in accordance with the standard test method for surface burning characteristics of building materials (ASTM-E 84...)....” Par. 10. Typical and illustrative of the statements made by Treated Wood, prior to April 15, 1985, concerning respondents’ FRTW, but not all-inclusive thereof, are the following from the promotional flyer attached hereto as Exhibit B:

a. ‘Flameguard Underwriters Laboratories tested and certified”; b. “Fire retardant”;

c. “Class ‘A’ rating”;

d. A depiction of Timber Products Inspection’s logo; and e. A depiction of the American Wood Preservers Bureau’s logo. Par. 11. Through the use of the statements contained in paragraphs nine and ten above and other statements not specifically set forth herein, Treated Wood has made the following material representations, directly or by implication:

(1) Respondents’ FRTW has a flame spread index of 25 or less. (2) Respondents’ FRTW possesses a class “A” rating. (8) UL classifies or otherwise approves respondents’ FRTW. (4) Timber Products Inspection assures the quality of or otherwise approves respondents’ FRTW.

(5) American Wood Preservers Bureau approves or certified respondents’ FRTW for fire retardancy.

Par. 12. In truth and in fact:

(1) At least some of respondents’ FRTW, which was sold prior to April 15, 1985, has a flame spread index higher than 25. (2) At least some of respondents’ FRTW, which was sold prior to April 15, 1985, does not possess a class “A” rating. (3) UL has not classified or otherwise approved respondents’ FRTW. RELIANCE WOOD PRESERVING, INC., ET AL. 89 85 Complaint (4) At least some of respondents’ FRTW, which was sold prior to April 15, 1985, is not quality assured or otherwise approved by Timber Products Inspection.

(5) American Wood Preservers Bureau has not approved or certified respondents’ FRTW for fire retardancy.

Therefore, the representations set forth in paragraph eleven were and are false and misleading.

Par. 13. The acts or practices of respondents as alleged in this. complaint constitute unfair or deceptive acts or practices in or affecting interstate commerce in violation of Section 5 of the Federal Trade Commission Act.

Page los y RELDAINCE Complaint FLAMEGUARD® FIRE- RETARDANT TREATED WOOD HAS MANY USES.

FLAMEGUARD * pressure-treated wood rrocucts con be used both for interior crextericr construction where safety from fire is Moncatory. Flameguard fire-retardant wood is ideal for roof and floor trusses. beams, roofdecks. trim, loadbecring and non-bearing partitions, steps. stainweoys. ladders.

scatfolding, siding. framing, balconies. walkwcys ond facades or any other application that requires fire-resistant and noncombustible building materials.

As Fliomeguard trected wood remains clecr and will not develop the unsightly surface bloom common with mony cther fire retardant treatments, Ficmeguerd croducts are perticulcrly suited to erchitectural millwork, moicings. cnc paneling.

RELIANCE WOOD PRESERVING, INC., ET AL. 91 ADVANTAGES FLAMEGUARD is o special formulation of fire retcrdant chemicals pressure impregnated for maximum wood penetration and protection.

FLAMEGUARD has a low flame spread tating of 25 or less and generates low smoke levels. Its self-extinguishing characteristic eliminates wood so treated as a source of fuel thereby limiting the spread of fire.

FLAMEGUARD fire-retardant treated wood retains its strength under fire conditions longer than untreated wood and many other building materials inducing steel.

FLAMEGUARD has a very low hygroscopicity and does not absorp ond retain moisture even in high humidities. Use in humidities up to”

95% is recommended.

FLAMEGUARD is compatibie with metal fasteners. Unlike the sulphate ond chloride contained in many fireretardant trectments. the chemicc's #7 our process cre non-corrosive.

FLAMEGUARD is a clear fire-re*”

treatment which causes little.

change in the original colerc wood, Unlike wood treated with fire-retardant processes. Flameg! 3 products are free of chemical depusils ond nave no unsightly residue to mcr the surface of the wood.

GF100U0092 Complaint FLAMEGUARD is Non-bioaming even in exttemely humic conditions. Like untreated wood, Flamequard treated wood will weather noturally.

FLAMEGUARD treated wood does not require secling. The surace of the trected wood will remain clean and can be leff unfinished, stained or painted with oil based products.

FLAMEGUARD lire-retardant treated WOO? quaifies for lower insurance states with major isting organizations.

In mony states buildings constructed with fwe-retaracnt treated lumber is granted the seme rating as mascnry Construction Gnd is Classified simniiar to noncombusridie material Shingles treated with Freguara cory a 8 rating without foi being slacec under them.

FLAMEGUARD is halogen free and is acceptatie tcr construction of nuclear power picnts Free formaldehyde is not given cff by Flameguard treated wood FLAMEGUARD treated wood, although Not marketed as preservative-treated Products, does give protection tlom decay since the wood is sealed and the chemicals ate toxic to insects.

FLAMEGUARD is injected through a pressure treatment that forces the firefeterdant chemicals into wood without injuring the wood fibers. The Process is Operated on a time-pressure schedule that equaiizes the natural differences present in tumnber and Plywood.

FLAMEGUARD reduces the splitting and checking characteristics of untreated wood.

FLAMEGUARD treated wood is feagily Ovailable with substantic! inventories of treated wood croducts and an abundant supply of raw materiats, EXHIBIT A, page 3 ¢ SPECIFICATIONS All number and plywood to be fireretarcon! trected will be pressure treated with Reliance * Flameguard? to comply with the requirements of o flame spread rahng of 25 or less when tested for a period of not less than 30 minutes without evidence of significant progressive Combustion in accordance with the standard test method for surface burning chcracteristics of building materiats (ASTM £-84, NFPA 255, AWPA C-2G and C-27). UL. 723.

GF.1n0 RELIANCE WOOD PRESERVING, INC., ET AL.

Complaint Each treated product will be tested ond wiil bear the performance identification label assuring its compliance with the standards of the American Wood Preservers Association.

Shingles and shakes will be fireretardant pressure treated to meet the fequirements for a Class B or Class C covering in accordance with the Standard Test, ASTM E-108 Test for Roof Covenng Moterials.

STANDARDS AND APPROVALS Flameguard? meets the requirements of the following specifying agencies:

Federal Specification MIL-L-19440C:

Building Officials and Code Administrators international:

Interncticnal Conference of Building Officicls: Southern Building Code Cengtess International, Inc.; Nctional Fire Frotection Association. tnc.;

American Wood Preservers Association:

Neticnal Building Code, insurance Services Office, Nuclear Energy Liability Property Insurance Association and many other local, county and state building codes, insurance underwiters and rating bureaus.

All tests have been conducted ond certified by The T.P.!. Agency.

Conyers, Georgia.

Flomeguard is U.L. Classified (ULL. 723).

Flameguard® treated lumber and plywood is o product of Reliance? Treated Wood. For additional information or to place orders contact one of our offices:

TREATED WOOD P.O. Box 22101 Greenstoro, NC 27420 919/379-0801 Outside North Carolina 860/324-9113 PO. Box 400 Federclsburg. MD 21632 301/754-5714 P.O. Box 203 Newtown Square. PA 19073 215/353-6465 Complaint 109 F.T.C.

EXHIBIT B RELIANCE TREATED WOOD ATT = ROGT OFFICE BOK 205 « “NEWTOWN GQUARE, Pa OTE» TULAPHEOcel Cave 680-0008 ” pEBQDUCERS OF C.C.A, PRESSURE TREATED LUMBER & PLYWOOD, LEX sana w-BXTERIOR FIRE RETARDENT LUMBER & PLYWOOD OFFER THE FOLLOMZMGS. SHOW ‘STOPPER SPECIAL.

4 pkg./12', 1 pkg./l6' 2X 6 - 1 pkg./l4' 2X 8 - 1 pkg./12', 1 pkg./16' 4X 4 - 1 pkg./8' 1X 4 - 1 pkg./12° AND YOUR CHOICE OF EITHER 3X 5 - 1 pkg./8' OR 6 X 6 - 1 pkg./8' THEE TRUCKLOAD OF C.C.A. 40 G'S #2 SOUTHERN YELLOW PING. CAR. OT - YOU IN THE PRESSURE TREATED LUMBER BUSINESS FOR ONLY $4, Sae-00 A Agid A SMALL DELIVEXY CHAPGE TO YOUR YARD. FLAMEGUARD UNDERWRITERS LABORATORIES TESTED AND CERTIFIED EXTERIOR CLASS A RATING INTERIOR CLAUDE SHANNON JIM BRADY RITCH BENNER EXHIBIT B BOOT! 16 Timber Exoovcrs Insrection, GC2vs0ct0 RELIANCE WOOD PRESERVING, INC., ET AL. 95 85 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Atlanta Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The respondents, their attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Reliance Wood Preserving, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Maryland, with its office and principal place of business located at Federalsburg Industrial Park, P.O. Box 349, in the City of Federalsburg, State of Maryland.

Respondent Daniel Roy Dorman is an officer of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation, and his principal office and place of business is located at the above stated address.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER For purposes of this order, the following definitions shall apply: A. ASTM5 1 6 1 2 3 783 2770 22 52 92.727615 E5 1 6 1 2 4 835 2778 63 31 95.314301 84”5 1 6 1 2 5 916 2778 28 31 96.519081 is5 1 6 1 2 6 961 2788 21 21 96.952286 a5 1 6 1 2 7 998 2781 70 29 96.706329 tests 1 6 1 2 8 1084 2778 199 39 96.705246 recognized5 1 6 1 2 9 1300 2779 37 30 96.812111 in5 1 6 1 2 10 1354 2778 60 32 96.167427 thes 1 6 1 2 11 1431 2778 137 32 96.167427 lumber5 1 6 1 2 12 1584 2778 161 40 96.204445 industry5 1 6 1 2 13 1761 2788 38 22 96.632881 as5 1 6 1 2 14 1816 2788 21 22 96.632881 a Decision and Order 109 F.T.C.

measure of the fire retardancy of wood based on the rate of flame spread.

B. An “ASTM E 84 flame spread index” (flame spread index) of 25 or less is the score that most, if not all, building codes require a wood product to obtain in order to be used in certain applications where FRTW is required.

C. “Fire Retardant Treated Wood” or FRTW”5 1 3 3 1 8 1636 933 30 33 96.095749 is5 1 3 3 1 9 1680 932 95 34 96.265137 woods 1 3 3 1 10 1791 933 206 40 96.265137 chemically4 1 3 3 2 0 686 982 1309 39 -1 5 1 3 3 2 1 686 983 137 31 96.929787 treated5 1 3 3 2 2 845 982 112 32 96.768654 under5 1 3 3 2 3 979 992 161 29 96.168686 pressures 1 3 3 2 4 1162 983 85 31 96.645714 with5 1 3 3 2 5 1270 983 65 32 95.521812 fires 1 3 3 2 6 1358 984 183 32 96.278397 retardant5 1 3 3 2 7 1563 985 186 32 95.772881 chemicals5 1 3 3 2 8 1772 986 69 31 96.774818 ands 1 3 3 2 9 1863 986 64 31 96.361923 has5 1 3 3 2 10 1950 996 45 21 94.735573 an4 1 3 3 3 0 686 1034 765 40 -1 5 1 3 3 3 1 686 1034 122 33 96.126465 ASTM5 1 3 3 3 2 825 1034 106 33 96.101074 flames 1 3 3 3 3 948 1035 125 39 96.935677 spreads 1 3 3 3 4 1090 1035 103 33 95.873932 index5 1 3 3 3 5 1210 1036 40 32 96.612099 of5 1 3 3 3 6 1261 1037 42 31 96.657623 255 1 3 3 3 7 1320 1046 38 22 96.657623 or5 1 3 3 3 8 1375 1036 76 32 96.807396 less.3 1 3 4 0 0 685 1087 1310 145 -1 4 1 3 4 1 0 727 1087 1268 44 -1 5 1 3 4 1 1 727 1088 39 31 90.494095 D.5 1 3 4 1 2 785 1087 266 41 79.023239 “Respondents’5 1 3 4 1 3 1060 1088 151 32 79.656601 FRTW”5 1 3 4 1 4 1222 1089 28 32 96.107033 is5 1 3 4 1 5 1266 1088 94 33 96.638306 woods 1 3 4 1 6 1375 1089 77 32 96.878853 that5 1 3 4 1 7 1463 1089 164 33 96.076935 Reliance5 1 3 4 1 8 1639 1090 73 32 96.997269 ands 1 3 4 1 9 1724 1090 154 32 92.265114 Dorman5 1 3 4 1 10 1892 1102 103 29 92.728302 repre-4 1 3 4 2 0 685 1140 1310 43 -1 5 1 3 4 2 1 685 1140 118 32 96.555710 sented5 1 3 4 2 2 819 1151 38 21 96.840302 as5 1 3 4 2 3 875 1140 99 40 96.588692 beings 1 3 4 2 4 986 1140 66 39 96.330078 fires 1 3 4 2 5 1068 1141 179 32 96.273293 retardant5 1 3 4 2 6 1262 1152 38 21 96.527893 or5 1 3 4 2 7 1315 1141 97 32 95.898277 Class5 1 3 4 2 8 1433 1142 70 31 95.278908 “A”5 1 3 4 2 9 1516 1153 38 21 96.292549 or5 1 3 4 2 10 1570 1142 130 40 96.927826 having5 1 3 4 2 11 1714 1154 21 20 95.615814 a5 1 3 4 2 12 1750 1142 107 40 96.468681 flames 1 3 4 2 13 1871 1142 124 41 96.584351 spread4 1 3 4 3 0 686 1192 237 40 -1 5 1 3 4 3 1 686 1192 41 40 96.911423 of5 1 3 4 3 2 737 1193 42 31 96.003532 255 1 3 4 3 3 796 1203 38 21 96.847145 or5 1 3 4 3 4 852 1192 71 32 96.398651 less.3 1 3 5 0 0 686 1244 1308 85 -1 4 1 3 5 1 0 727 1244 1267 42 -1 5 1 3 5 1 1 727 1244 36 31 92.393372 E.5 1 3 5 1 2 778 1244 30 31 95.927048 A5 1 3 5 1 3 827 1244 105 33 96.123291 “class5 1 3 5 1 4 952 1244 49 31 73.402573 ‘A’5 1 3 5 1 5 1013 1245 134 39 86.536728 rating”5 1 3 5 1 6 1162 1255 121 22 96.215179 means5 1 3 5 1 7 1297 1246 79 32 93.138748 that5 1 3 5 1 8 1390 1246 124 32 92.686150 FRTW5 1 3 5 1 9 1528 1256 172 29 96.864098 possesses5 1 3 5 1 10 1715 1257 21 21 96.991318 a5 1 3 5 1 11 1749 1247 107 32 96.626373 flames 1 3 5 1 12 1870 1247 124 39 96.758270 spread4 1 3 5 2 0 686 1296 360 33 -1 5 1 3 5 2 1 686 1296 102 32 96.374390 index5 1 3 5 2 2 805 1296 40 32 96.436615 of5 1 3 5 2 3 856 1297 42 32 96.156677 255 1 3 5 2 4 915 1307 38 22 95.588394 or5 1 3 5 2 5 970 1297 76 32 96.722183 less.3 1 3 6 0 0 685 1348 1309 84 -1 4 1 3 6 1 0 727 1348 1267 41 -1 5 1 3 6 1 1 727 1349 34 31 88.842758 F.5 1 3 6 1 2 786 1348 267 41 73.404907 “Flameguard”5 1 3 6 1 3 1072 1350 28 30 96.801636 is5 1 3 6 1 4 1119 1359 20 22 96.966087 a5 1 3 6 1 5 1156 1350 112 32 96.614746 brands 1 3 6 1 6 1287 1360 103 22 96.356255 names 1 3 6 1 7 1408 1350 79 32 96.393456 that5 1 3 6 1 8 1505 1351 228 38 96.269020 respondents5 1 3 6 1 9 1752 1362 61 21 96.412758 uses 1 3 6 1 10 1831 1351 52 32 96.628441 for5 1 3 6 1 11 1901 1351 93 32 96.939377 their4 1 3 6 2 0 685 1400 133 32 -1 5 1 3 6 2 1 685 1400 133 32 91.439873 FRTW.3 1 3 7 0 0 685 1452 1307 92 -1 4 1 3 7 1 0 727 1452 1265 42 -1 5 1 3 7 1 1 727 1452 38 33 91.868088 G.5 1 3 7 1 2 789 1452 153 33 96.303345 “Timber5 1 3 7 1 3 957 1452 165 33 96.025856 Products5 1 3 7 1 4 1139 1453 214 40 96.720444 Inspection”5 1 3 7 1 5 1371 1455 29 30 96.613182 is5 1 3 7 1 6 1417 1464 21 22 96.808105 a5 1 3 7 1 7 1456 1455 133 39 96.719261 quality5 1 3 7 1 8 1606 1455 133 32 96.823845 controls 1 3 7 1 9 1756 1465 131 29 96.766296 agency5 1 3 7 1 10 1903 1455 89 37 96.033623 that,4 1 3 7 2 0 685 1505 1288 39 -1 5 1 3 7 2 1 685 1515 127 29 96.386795 among5 1 3 7 2 2 828 1505 100 31 96.672508 others 1 3 7 2 3 944 1505 128 39 96.913704 things,5 1 3 7 2 4 1090 1508 125 29 96.748512 attests5 1 3 7 2 5 1231 1509 36 28 96.702316 to5 1 3 7 2 6 1284 1506 60 31 96.702316 thes 1 3 7 2 7 1361 1506 70 32 96.352737 facts 1 3 7 2 8 1448 1506 78 32 96.674210 that5 1 3 7 2 9 1542 1507 95 32 96.406876 woods 1 3 7 2 10 1655 1508 28 31 96.621262 is5 1 3 7 2 11 1700 1507 66 32 96.357002 fires 1 3 7 2 12 1782 1507 191 32 96.244743 retardant.2 1 4 0 0 0 1326 1608 23 32 -1 3 1 4 1 0 0 1326 1608 23 32 -1 4 1 4 1 1 0 1326 1608 23 32 -1 5 1 4 1 1 1 1326 1608 23 32 58.445641 I.2 1 5 0 0 0 682 1710 1310 352 -1 3 1 5 1 0 0 682 1710 1310 352 -1 4 1 5 1 1 0 724 1710 1268 42 -1 5 1 5 1 1 1 724 1710 33 30 91.830124 It5 1 5 1 1 2 771 1710 27 31 91.830124 is5 1 5 1 1 3 812 1710 148 36 96.598106 ordered,5 1 5 1 1 4 976 1710 91 31 96.683174 That5 1 5 1 1 5 1081 1710 162 32 96.341995 Reliance5 1 5 1 1 6 1257 1710 105 33 96.549713 Woods 1 5 1 1 7 1375 1711 216 39 93.293411 Preserving,5 1 5 1 1 8 1606 1712 78 37 90.519836 Inc.,5 1 5 1 1 9 1699 1712 69 31 96.576065 ands 1 5 1 1 10 1782 1712 124 31 96.568657 Daniels 1 5 1 1 11 1920 1712 72 40 96.107384 Roy4 1 5 1 2 0 683 1761 1309 42 -1 5 1 5 1 2 1 683 1761 165 38 96.392708 Dorman,5 1 5 1 2 2 864 1761 145 39 96.399933 directly5 1 5 1 2 3 1024 1772 37 21 96.872681 or5 1 5 1 2 4 1075 1762 153 39 96.418823 through5 1 5 1 2 5 1243 1773 70 29 96.497261 any5 1 5 1 2 6 1327 1764 228 38 96.128998 corporation,5 1 5 1 2 7 1571 1764 204 39 96.644783 subsidiary,5 1 5 1 2 8 1792 1764 146 31 96.479218 divisions 1 5 1 2 9 1954 1774 38 22 97.000549 or4 1 5 1 3 0 683 1813 1307 40 -1 5 1 5 1 3 1 683 1814 101 31 97.019325 others 1 5 1 3 2 805 1813 127 38 95.647255 device,5 1 5 1 3 3 955 1814 36 31 95.647255 in5 1 5 1 3 4 1014 1815 204 30 96.692955 connections 1 5 1 3 5 1240 1815 85 30 96.082703 with5 1 5 1 3 6 1348 1815 60 31 96.082703 thes 1 5 1 3 7 1430 1815 255 38 96.218758 manufacture,5 1 5 1 3 8 1708 1815 282 38 96.533516 advertisement,4 1 5 1 4 0 683 1865 1308 41 -1 5 1 5 1 4 1 683 1865 149 39 96.777061 offerings 1 5 1 4 2 850 1865 53 31 96.878822 for5 1 5 1 4 3 922 1866 82 36 96.650139 sale,5 1 5 1 4 4 1026 1866 82 36 96.729591 sale,5 1 5 1 4 5 1129 1875 37 22 96.800919 or5 1 5 1 4 6 1186 1866 223 32 96.653946 distributions 1 5 1 4 7 1430 1867 39 31 96.690636 of5 1 5 1 4 8 1483 1867 238 39 91.263512 respondents’5 1 5 1 4 9 1741 1868 135 37 91.263512 FRTW,5 1 5 1 4 10 1897 1869 36 30 96.839043 in5 1 5 1 4 11 1953 1878 38 21 95.951736 or4 1 5 1 5 0 683 1917 1308 39 -1 5 1 5 1 5 1 683 1917 166 39 96.244286 affecting5 1 5 1 5 2 865 1927 200 28 96.520622 commerce,5 1 5 1 5 3 1084 1928 37 22 96.025719 as5 1 5 1 5 4 1139 1918 232 32 53.376083 “commerce”5 1 5 1 5 5 1388 1920 29 30 95.308372 is5 1 5 1 5 6 1434 1919 138 32 96.319046 defined5 1 5 1 5 7 1589 1920 36 30 95.870201 in5 1 5 1 5 8 1642 1920 60 31 96.792587 thes 1 5 1 5 9 1719 1920 144 32 96.099625 Federal5 1 5 1 5 10 1879 1920 112 32 96.968674 Trade4 1 5 1 6 0 683 1969 1307 42 -1 5 1 5 1 6 1 683 1969 228 32 82.468445 Comimission5 1 5 1 6 2 926 1969 75 38 96.828674 Act,5 1 5 1 6 3 1018 1970 42 32 95.790993 do5 1 5 1 6 4 1076 1970 180 32 96.708801 forthwith5 1 5 1 6 5 1272 1980 98 22 96.635544 ceases 1 5 1 6 6 1386 1971 69 32 95.908752 ands 1 5 1 6 7 1471 1971 106 32 95.908752 desist5 1 5 1 6 8 1592 1972 89 31 96.824936 from5 1 5 1 6 9 1697 1973 242 38 96.356567 representing5 1 5 1 6 10 1954 1973 36 31 96.189713 in4 1 5 1 7 0 682 2022 869 40 -1 5 1 5 1 7 1 682 2032 70 29 96.901016 any5 1 5 1 7 2 769 2031 157 28 95.901787 manner,5 1 5 1 7 3 943 2022 146 40 96.370949 directly5 1 5 1 7 4 1106 2032 38 22 96.068466 or5 1 5 1 7 5 1159 2022 46 40 96.068466 by5 1 5 1 7 6 1221 2022 225 40 96.576622 implication,5 1 5 1 7 7 1464 2023 87 33 96.869766 that:2 1 6 0 0 0 680 2098 1309 723 -1 3 1 6 1 0 0 723 2098 1244 41 -1 4 1 6 1 1 0 723 2098 1244 41 -1 5 1 6 1 1 1 723 2098 40 32 96.507515 A.5 1 6 1 1 2 781 2098 249 40 93.130768 Respondents’5 1 6 1 1 3 1048 2099 124 32 91.519119 FRTW5 1 6 1 1 4 1189 2100 29 31 96.161064 is5 1 6 1 1 5 1234 2099 66 32 96.591995 fires 1 6 1 1 6 1317 2100 192 37 96.279503 retardant,5 1 6 1 1 7 1527 2100 118 32 96.624260 unless5 1 6 1 1 8 1662 2101 86 32 96.674942 such5 1 6 1 1 9 1765 2101 28 32 96.328239 is5 1 6 1 1 10 1810 2101 60 32 96.673470 thes 1 6 1 1 11 1887 2101 80 38 96.894653 fact;3 1 6 2 0 0 682 2151 1307 91 -1 4 1 6 2 1 0 724 2151 1265 41 -1 5 1 6 2 1 1 724 2151 35 31 92.064857 B.5 1 6 2 1 2 773 2151 249 40 93.250153 Respondents’5 1 6 2 1 3 1035 2151 125 32 93.019058 FRTW5 1 6 2 1 4 1172 2162 172 29 96.398544 possesses5 1 6 2 1 5 1357 2163 21 22 96.683891 a5 1 6 2 1 6 1389 2152 107 33 95.897324 flames 1 6 2 1 7 1508 2153 125 39 96.099960 spreads 1 6 2 1 8 1645 2153 103 32 96.424156 index5 1 6 2 1 9 1761 2154 39 31 96.774307 of5 1 6 2 1 10 1807 2154 41 31 96.962143 255 1 6 2 1 11 1861 2164 39 21 96.934929 or5 1 6 2 1 12 1912 2153 77 38 96.882996 less,4 1 6 2 2 0 682 2203 440 39 -1 5 1 6 2 2 1 682 2203 118 32 96.847603 unless5 1 6 2 2 2 817 2203 85 32 96.816887 such5 1 6 2 2 3 919 2204 28 31 95.558449 is5 1 6 2 2 4 964 2203 61 32 96.927284 thes 1 6 2 2 5 1041 2203 81 39 95.889664 fact;3 1 6 3 0 0 681 2255 1308 90 -1 4 1 6 3 1 0 723 2255 1266 41 -1 5 1 6 3 1 1 723 2255 35 32 92.805580 C.5 1 6 3 1 2 773 2255 249 40 93.288902 Respondents’5 1 6 3 1 3 1037 2256 125 31 92.701530 FRTW5 1 6 3 1 4 1176 2266 172 29 96.493919 possesses5 1 6 3 1 5 1363 2267 20 21 96.933121 a5 1 6 3 1 6 1397 2256 89 32 95.794006 class5 1 6 3 1 7 1501 2256 71 32 41.576355 “A”5 1 6 3 1 8 1588 2257 125 39 96.423004 rating,5 1 6 3 1 9 1729 2257 118 32 96.309601 unless5 1 6 3 1 10 1861 2257 85 32 96.636780 such5 1 6 3 1 11 1961 2258 28 31 96.636780 is4 1 6 3 2 0 681 2307 157 38 -1 5 1 6 3 2 1 681 2307 61 32 96.746078 thes 1 6 3 2 2 758 2307 80 38 96.700569 fact;3 1 6 4 0 0 682 2360 1307 90 -1 4 1 6 4 1 0 723 2360 1266 41 -1 5 1 6 4 1 1 723 2360 38 31 93.233261 D.5 1 6 4 1 2 777 2360 248 39 93.293320 Respondents’5 1 6 4 1 3 1041 2360 125 32 92.358780 FRTW5 1 6 4 1 4 1180 2361 64 31 96.388611 has5 1 6 4 1 5 1258 2361 163 39 96.441368 specified5 1 6 4 1 6 1435 2361 66 31 96.296837 fires 1 6 4 1 7 1516 2361 182 32 96.535484 retardant5 1 6 4 1 8 1712 2362 201 39 93.126343 properties,5 1 6 4 1 9 1929 2372 60 21 93.027855 un-4 1 6 4 2 0 682 2412 388 38 -1 5 1 6 4 2 1 682 2412 67 32 96.657494 less5 1 6 4 2 2 766 2412 85 32 95.366020 such5 1 6 4 2 3 868 2412 28 32 95.366020 is5 1 6 4 2 4 913 2412 60 32 95.899719 thes 1 6 4 2 5 990 2412 80 38 95.752182 fact;3 1 6 5 0 0 682 2464 1306 91 -1 4 1 6 5 1 0 723 2464 1265 42 -1 5 1 6 5 1 1 723 2464 35 32 92.897102 E.5 1 6 5 1 2 776 2464 249 39 93.292778 Respondents’5 1 6 5 1 3 1042 2465 124 32 92.815002 FRTW5 1 6 5 1 4 1183 2466 28 31 93.155724 is5 1 6 5 1 5 1228 2465 172 32 96.748230 classified5 1 6 5 1 6 1417 2476 37 21 96.581055 or5 1 6 5 1 7 1471 2466 182 32 96.776764 otherwise5 1 6 5 1 8 1669 2467 174 39 96.347168 approved5 1 6 5 1 9 1858 2467 45 39 96.232666 by5 1 6 5 1 10 1919 2467 69 36 96.232666 UL,4 1 6 5 2 0 682 2517 439 38 -1 5 1 6 5 2 1 682 2517 117 31 96.577866 unless5 1 6 5 2 2 816 2517 85 31 96.764633 such5 1 6 5 2 3 918 2518 29 30 95.712234 is5 1 6 5 2 4 964 2517 60 31 96.350128 thes 1 6 5 2 5 1040 2517 81 38 96.287178 fact;3 1 6 6 0 0 681 2569 1308 93 -1 4 1 6 6 1 0 723 2569 1266 42 -1 5 1 6 6 1 1 723 2569 34 31 92.014801 F.5 1 6 6 1 2 771 2569 248 40 93.297478 Respondents’5 1 6 6 1 3 1033 2569 124 33 92.502998 FRTW5 1 6 6 1 4 1169 2570 30 32 96.569321 is5 1 6 6 1 5 1211 2570 134 41 96.920280 quality5 1 6 6 1 6 1357 2570 144 32 96.378113 assured5 1 6 6 1 7 1513 2581 38 22 96.560806 or5 1 6 6 1 8 1564 2572 183 31 96.502251 otherwise5 1 6 6 1 9 1759 2571 174 40 96.755135 approved5 1 6 6 1 10 1945 2571 44 40 96.814713 by4 1 6 6 2 0 681 2622 1001 40 -1 5 1 6 6 2 1 681 2622 138 31 96.470680 Timber5 1 6 6 2 2 835 2622 167 32 96.394287 Products5 1 6 6 2 3 1019 2622 206 40 95.729355 Inspection,5 1 6 6 2 4 1243 2623 118 32 96.309219 unless5 1 6 6 2 5 1378 2623 85 32 95.228157 such5 1 6 6 2 6 1480 2624 29 31 96.957893 is5 1 6 6 2 7 1525 2624 61 32 96.663422 thes 1 6 6 2 8 1603 2623 79 39 96.233124 fact;3 1 6 7 0 0 680 2674 1308 93 -1 4 1 6 7 1 0 722 2674 1266 42 -1 5 1 6 7 1 1 722 2674 39 32 91.975853 G.5 1 6 7 1 2 781 2674 249 39 93.298317 Respondents’5 1 6 7 1 3 1049 2674 125 32 91.356133 FRTW5 1 6 7 1 4 1193 2675 28 32 91.348160 is5 1 6 7 1 5 1240 2674 157 33 96.102821 certified5 1 6 7 1 6 1416 2686 38 21 96.569664 or5 1 6 7 1 7 1472 2675 183 33 96.315895 otherwise5 1 6 7 1 8 1674 2676 173 40 96.726562 approved5 1 6 7 1 9 1865 2675 45 41 96.707115 by5 1 6 7 1 10 1928 2676 60 31 96.913757 thea 1 6 7 2 0 680 2727 1249 40 -1 5 1 6 7 2 1 680 2727 187 32 96.543068 Americans 1 6 7 2 2 884 2727 105 32 93.304619 Woods 1 6 7 2 3 1006 2727 212 32 91.620239 Preservers’5 1 6 7 2 4 1235 2728 149 37 96.438148 Bureau,5 1 6 7 2 5 1402 2728 118 33 96.191376 unless5 1 6 7 2 6 1537 2728 85 33 96.681168 such5 1 6 7 2 7 1639 2729 29 32 96.128937 is5 1 6 7 2 8 1685 2729 60 32 96.516716 thes 1 6 7 2 9 1762 2729 80 38 96.799416 fact;5 1 6 7 2 10 1860 2728 69 33 96.828125 and3 1 6 8 0 0 721 2779 1267 42 -1 4 1 6 8 1 0 721 2779 1267 42 -1 5 1 6 8 1 1 721 2779 43 32 90.357063 H.5 1 6 8 1 2 783 2779 248 39 93.300140 Respondents’5 1 6 8 1 3 1050 2779 125 32 92.609840 FRTW5 1 6 8 1 4 1192 2780 28 32 96.189819 is5 1 6 8 1 5 1238 2780 156 32 96.064423 certified5 1 6 8 1 6 1412 2791 38 21 96.799393 or5 1 6 8 1 7 1468 2781 182 31 96.799393 otherwise5 1 6 8 1 8 1668 2781 173 39 96.410492 approved5 1 6 8 1 9 1858 2781 44 40 96.396141 by5 1 6 8 1 10 1919 2792 69 29 96.237328 any RELIANCE WOOD PRESERVING, INC., ET AL. 97 85 Decision and Order organization, individual, or governmental agency, unless such is the fact.

For at least three years from the last dissemination of any such representation, respondents shall maintain records to be made available upon reasonable request for review by the Federal Trade Commission substantiating representations referred to in this section of the order. Substantiation for representations in Sections I.A. through ILD. shall consist of certifications or tests made in accordance with customary industry standards by an inspection service for fire retardant wood recognized by one of the following bodies: Building Officials and Code Administrators International, Inc.; International Conference of Building Officials; or the Southern Building Code Congress International, Inc.

Il.

It is further ordered, That, within fifteen (15) days after the date of service of this order, respondent Reliance Wood Preserving, Inc., shall request that the follow-up service currently inspecting its FRTW confirm that it is inspecting respondents’ FRTW by forwarding to the service a letter in the form attached as Appendix A. III.

It is further ordered, That, within fifteen (15) days after the date of service of this order, respondents shall notify all purchasers of respondents’ FRTW prior to April 15, 1985, that some of respondents’ FRTW sold prior to April 15, 1985, may not have the fire retardant properties specified in respondents’ representations concerning that FRTW. Such notice in the form of Appendix B shall be made by postage pre-paid, certified mail, return receipt requested, addressed to the last known address of the purchasers of respondents’ FRTW who purchased prior to April 15, 1985, as reflected in respondents’ business records and in a list furnished to respondents by Reliance Treated Wood, Inc., Greensboro, N.C.

IV.

It is further ordered, That respondent, Reliance Wood Preserving, Inc., shall notify the Commission at least thirty (30) days prior to any proposed change in its organization, such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in its Decision and Order 109 F.T.C.

organization that may affect compliance obligations arising out of this order.

V.

It is further ordered, That the individual respondent Daniel Roy Dorman notify the Commission fifteen (15) days in advance of any proposed change of his affiliation with respondent Reliance and within fifteen (15) days of any new affiliation that he has with any corporation, partnership, proprietorship, or other business entity engaged in the manufacture, advertisement, offering for sale, sale, or distribution of fire retardant treated wood.

VI.

It is further ordered, That, within fifteen (15) days after service of this order, respondent Reliance Wood Preserving, Inc., shall provide a copy of this order and of the complaint in this proceeding to each current officer and director of Reliance Wood Preserving, Inc., and, for a period of three (3) years after that date, shall provide a copy of such order and complaint to each new officer and director of Reliance Wood Preserving, Inc., within fifteen (15) days after each new officer or director is appointed or relected, and shall secure from each current and future officer and director a signed statement acknowledging receipt of such copy.

VIL.

It is further ordered, That:

A. Within sixty (60) days after the date of service of this order, each respondent shall file or cause to be filed with the Commission a written report setting forth in detail the manner and form in which it has complied with this order, including a list of the individuals or entities notified pursuant to Paragraph III of this order together with a copy of the return receipts from such individuals or entities showing their receipt of such required notification.

B. In addition to the report required by VII(A), each respondent shall file or cause to be filed, within sixty days after service of this order, copies of the most recent ASTM E 84 tests conducted to obtain certification that each species of respondents’ FRTW is fire retardant together with reports from the follow-up service utilized by respondents regarding its two most recent follow-up inspections. C. In addition to the report required by VII(A) and test results RELIANCE WOOD PRESERVING, INC., ET AL. 99 85 Decision and Order required by VII(B), each respondent shall file or cause to be filed, one (1) year after the date of service of this order and at such times as the Commission or its staff by written notice require, a written report setting forth in detail the manner and form in which it has complied and is complying with this order.

APPENDIX A [Date] Dear.

On _____________. Reliance Wood Preserving, Inc., entered into a consent agreement with the Federal Trade Commission. The agreement, among other things, requires Reliance to possess substantiation for the claim that Reliance’s fire retardant treated wood (“FRTW”) is fire retardant (i.e., has a flame spread index of 25 or less). Reliance requests that you write a letter directly to the Commission confirming that you are currently performing follow-up inspections to assure that Reliance’s FRTW is in fact fire retardant. In your letter, please indicate that you will notify the Commission should you cease performing follow-up inspections on Reliance’s FRTW. Your letter should be sent to the address below:

Federal Trade Commission Division of Enforcement 6th Street & Pennsylvania Ave.

Washington, D.C. 20580 Your cooperation will be greatly appreciated. Reliance Wood Preserving, Inc.

By:

APPENDIX B {Date} Dear [Customer:} On ________Reliance Wood Preserving, Inc., entered into a consent agreement with the Federal Trade Commission settling charges that some Flameguard fire retardant treated wood (FRTW) manufactured and sold prior to April 15, 1985, may not in fact be fire retardant.

Most of our FRTW is sold by Reliance Treated Wood, Inc., a subsidiary of McCoy Industries, Inc., both of which are located in Greensboro, N.C. Because our records and/or Reliance Treated Wood’s records indicate that you may have purchased Flameguard during the applicable time period, our agreement with the Federal Trade Commission requires us to notify you of the possibility that some Flameguard fire retardant treated wood may not be fire retardant:so that you may take whatever steps, if any, that you deem appropriate. Please bear in mind that only FRTW manufactured and sold prior to April 15, 1985, is involved. Reliance Wood Preserving, Inc.

By:

Dissenting Statement 109 F.T.C.

DISSENTING STATEMENT OF COMMISSIONER, ANDREW J. STRENIO, JR. I would reject the agreement for the reasons specified at length in my earlier dissent from the Commission action of December 29, 1986 accepting the consent agreement, subject to final approval. In my view, both the danger to public safety from the misrepresentations alleged in this matter and the difficulty for consumers of detecting the existence and extent of injury indicate that monetary redress should be included in the settlement.

In the absence of any such monetary redress, I respectfully dissent from the Commission’s action granting final approval to this consent agreement.