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Spokane, Washington  Est. May 19, 1883

Anti-Lock Brake Dealer Faces Charge Ftc Says Brake-Guard Ads Misstate Product’s Capability

Grayden Jones Staff writer

FOR THE RECORD: Tuesday, October 31, 1995 CORRECTION: A business story Oct. 6 about Brake-Guard Products Inc. should have said that a lawsuit filed in Spokane County Superior Court claimed that Brake-Guard and President Ed Jones had not paid McFarland & Alton for accounting services. The story incorrectly implied that Brake-Guard and Jones had several unpaid bills.

Brake-Guard Products Inc. of Spokane and two other manufacturers of supplemental automobile brake systems have been charged by the federal government with falsely advertising that their products prevent wheels from locking up.

But Brake-Guard officials say it’s the Federal Trade Commission that’s dealing in lies.

Based on a study by the government’s top automotive testing agency, the FTC said earlier this week that Brake-Guard’s $300 mechanical system differs from factory-installed, electronic anti-lock braking equipment in both design and operation. It also said Brake-Guard could not support claims that the systems stop vehicles in shorter distances.

“The add-on brake systems do not prevent or substantially reduce wheel lock-up, skidding, and loss of steering control in emergency stopping situations,” said the FTC complaint.

The FTC is seeking an order to prohibit the misrepresentations and require Brake-Guard and two other companies in Texas and New York to support any performance or safety claims. Such an order, if issued, would be costly since it would require Brake-Guard to notify thousands of customers of the FTC’s conclusions.

A Washington, D.C., judge is expected to hear the case sometime next year, FTC attorneys said Wednesday.

“Brake-Guard can continue to advertise and sell its products, but it’s taking its chances,” said Janet Evans, attorney for the trade commission’s bureau of consumer protection.

Brake-Guard President Ed Jones lashed out at the FTC, saying it relied on flawed tests conducted by the National Highway Traffic Safety Administration. NHTSA is the same agency that announces equipment recalls.

“The tests were so fraudulent they would make Al Capone blush,” Jones said in an interview from company headquarters, 1047 W. Garland.

In June, Jones wrote 18 members of Congress, asking for an investigation of NHTSA.

Jones won’t say how badly NHTSA’s findings have hurt sales of the Brake-Guard system. Last year, Jones said the system was sold through a network of 5,000 dealers worldwide.

A lawsuit filed in June in Spokane Superior Court claims that Jones and Brake-Guard are not paying some of their bills.

McFarland & Alton, a Spokane-based public accounting firm, alleges in the suit that Jones owes the firm more than $24,000 for accounting and consulting services. Jones has contested the complaint, saying McFarland & Alton made mistakes in his 1992 and 1993 income tax returns.

Anti-lock braking systems automatically control the amount wheels slip during braking.

Unlike factory-installed electronic anti-lock brakes, the Brake-Guard system is installed by dealers and mechanics after the vehicle is sold. Marketed as the Advanced Braking System, the Brake-Guard system regulates hydraulic fluid pressure in the brake lines.

Private tests by two different engineering firms showed a 14 percent to 21 percent drop in stopping distances using Brake-Guard, Jones said.

NHTSA, however, did not get the same results. While it found no safety problems with the product, it concluded that Brake-Guard does not control wheel slippage or ensure vehicle control.

At times, the system actually increased stopping distances, the agency said.

Two other companies named in the complaint are: BST Enterprises Inc., maker of ABS BrakeSafe, of Garland, Texas; and Automotive Breakthrough Sciences Inc. and ABS Tech Sciences Inc., makers of A-B-S-Trax systems, of Wheatley Heights, N.Y.

Consumers pay between $400 and $700 for the add-on devices sold by these companies, the FTC said.

, DataTimes