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American Government Topic:  Rust Evader

$204,000 Available for "RustEvader" Refunds, FTC Announces

Agency: Federal Trade Commission
Date: 1 April 1997
The Federal Trade Commission said today that this summer it will distribute refunds from a $204,000 fund to consumers who purchased purported vehicle anti-corrosion devices sold by RustEvaders Corporation. The devices were sold under the brand names Rust Evader, Rust Buster, Eco-Guard, and Electro-Image and possibly others. Consumers who purchased these devices must obtain a claim form and return it to the address below by July 1. The devices were sold from 1985 through 1996 by automobile dealers, automotive specialty stores, general retailers and mail order catalogs for anywhere from $100 to $600. To obtain a claim form, call 415-461-4094 and leave your name and address, or write to the address below, by May 1:

Rust Evader Refund Offer

c/o Gilardi & Co. L.L.C.

P.O. Box 8040 San Rafael,

California 94912-8040

To prove their claim, consumers will need to provide documents showing they purchased a Rust Evader device and how much they paid. Proof of claim could include a receipt, invoice, warranty or a combination of these documents. Consumers who previously notified the FTC’s Cleveland Regional Office that they purchased one of the devices will receive a claim form automatically.

The redress fund was established following resolution of FTC charges that RustEvader Corporation, of Altoona, Pennsylvania, and its former president, David McCready, made false claims that the electronic devices used current from the battery to inhibit corrosion in the body of the vehicle to which it was attached. The devices are ineffective, the FTC alleged. The Commission entered a default judgment against RustEvader Corporation last summer; McCready agreed under a settlement with the FTC not to make the challenged claims and to pay $200,000 in redress. The balance of the money was obtained from the bankruptcy proceedings of RustEvader Corporation.

Copies of news releases and documents associated with the FTC’s case against RustEvader Corporation and McCready are available from the FTC’s web site at http://www.ftc.gov and also from the FTC’s Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.

(FTC Docket No. D-9274)



Media Contact:
Bonnie Jansen
Office of Public Affairs
202-326-2161 or 202-326-2180
Staff Contact:
Michael Milgrom
Cleveland Regional Office
668 Euclid Avenue, Suite 520-A
Cleveland, Ohio 44114
216-522-4210




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