ILMA Submits Comments on FTC’s Recycled Oil Rule

FEBRUARY 13, 2018

ILMA submitted comments this week, recommending that the Federal Trade Commission (FTC) maintain its “Test Procedures and Labeling Standards for Recycled Oil” rule (ROR) without any significant modification.

The only substantive change the Association recommended was to revise the ROR to reference the most recent version of API Publication 1509, given the constantly evolving nature of engine oil standards.

The ROR was promulgated in 1995, and it permits manufacturers and other sellers 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 ROR. The FTC periodically reviews its rules.

ILMA advocated for the adoption of the ROR when the FTC initially proposed it. ILMA noted in its comments that its position today is the largely unchanged from as what it was in 1995.

The Association highlighted the continuing need for the ROR, noting that oil and lubricant marketers need certainty to sell effectively their products in all 50 states. ILMA said if the rule were to be rescinded, some states may elect to require their own container labeling mandates that could result in varying requirements across jurisdictional lines.  This potential “patchwork” of state regulations is unworkable for the industry and could create needless confusion for consumers, the Association pointed out.