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Investigation launched into fuel saving devices

10 August 2008

Fuel saving devices such as additives and catalysts will be the focus of an Office of Fair Trading investigation launched today by the NSW Minister for Fair Trading Linda Burney.

“With households feeling the squeeze of petrol prices, consumers may be more vulnerable to claims that they can save money by adding products to their petrol tanks or installing devices in their car,” Ms Burney said.

Ms Burney said the Government was responding to automotive industry concerns about the validity of claims by a range of manufacturers and distributors of fuel saving devices.

“The Institute of Automotive Mechanical Engineers (IAME) wrote to me with serious concerns about these devices,” she said.

IAME CEO Frank Burgess said his organisation had real concerns about devices in the market.

“We welcome the investigation by Fair Trading because it’s important that consumers experience honesty and value when dealing with the automotive industry,” he said.

Ms Burney said the Office of Fair Trading had also contacted the NRMA, Motor Traders Association (MTA) and Choice. 

“All share Fair Trading’s concerns and have agreed to support our investigation,” she said.

Ms Burney said Fair Trading had identified at least 8 products currently manufactured or distributed within Australia but was seeking input from the public to support the investigation.

“From Monday 11 August to Friday 22 August, I encourage motorists to call Fair Trading on 1800 055 555 to provide information about their experiences with fuel saving devices,” she said.

“Fair Trading will investigate claims made by manufacturers and distributors to make sure consumers are getting what they pay for.

“Companies must be able to provide Fair Trading with independent scientific evidence to prove that their products actually do what they claim to do, or they will be issued with a substantiation notice.

Fair Trading will then commission testing of evidence by accredited authorities. If the claims are found not to have been substantiated Fair Trading will issue a public warning regarding the products.”

Ms Burney said the NRMA, in late 2007, had independently tested one product, the Fitch Fuel Catalyst (In-line) and found it provided no significant reduction in fuel consumption or exhaust emission.

“The results of the NRMA testing of this product will be included in Fair Trading’s investigation,” she said.

“Fair Trading officers have also recently conducted research to determine if fuel saving devices are being widely sold through automotive retail outlets. It was found that the majority of outlets contacted do not sell these devices because of concerns about their validity.

“Many of these products are sold over the internet, seeking to attract purchasers with claims including: “reduction of fuel bills by up to 25%”, “savings of up to $48 every week on fuel guaranteed” and “low emissions, more power, better efficiency”.

”Prices can range from $89 to $310 depending on the type of vehicle. The products can take the form of tablets or mechanical devices designed to be fitted to a car’s engine.”

Ms Burney said motorists should be wary of advertising claims that sound too good to be true and to seek advice from a licensed motor mechanic or the car’s manufacturer before adding substances or devices to their car’s fuel system or engine.

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