"Liquid Siding" Makers
Settle FTC Charges

WASHINGTON, April 3, 2002 -- Dealers of Multi-Gard "liquid siding" have agreed to settle Federal Trade Commission charges that ads claiming their product provided consumers with an insulation value of R-20 were unsubstantiated and violated federal law.

According to the FTC, Kryton Coatings International, Inc. and its distributor Procraft, Inc., claimed that their "Multi-Gard" liquid coating not only worked as well as fiberglass insulation, but could save consumers up to 40 percent on their energy bills. The FTC alleged that Kryton and Procraft did not substantiate adequately the performance claims for the product, which is also advertised under the names "Liquid Siding," "Liquid Vinyl," and "Multi-Gard R-20."

Under the terms of the consent order, the companies would be barred from making similar unsubstantiated claims in the future - including comparisons of their coating products to any type of insulation or other material.

"Companies have a responsibility to provide accurate information about their products and must be able to back up their claims with solid verifiable evidence," said J. Howard Beales, III, Director of the FTC's Bureau of Consumer Protection. "Whether it's an ad for instant oatmeal or 'insulating' paint, consumers should not be left guessing as to the accuracy of the claims presented."

Consumers should be careful when considering energy-related claims for home products. In the complaint, the FTC alleged that, while the companies' coating product (in combination with caulk) may seal air leaks and cracks in buildings and, as a result, may reduce energy costs in some cases, they did not have a reasonable basis for their R-value and significant energy- savings claims.

Back to the top | Consumer News