ILMA Compoundings - April 2019 - 33

W

hen a consumer or business purchases a product
of any kind, there is an
expectation that the label on that
product should clearly convey what's
in the package. That's as true of motor
oil as it is of food products and, in
both industries, rules and regulations
stipulate exactly what can - and
can't - be included in the labeling.
But despite seemingly clear-cut and
long-standing requirements through
organizations like NIST, PQIA, API
and others, confusion and claims of
misrepresentation often remain.
Jeffrey Leiter, who serves as general
counsel to ILMA, pointed to the Dollar General class-action suit claiming
that it sells motor oil that can cause
engine damage and that is not suitable
for cars made after 1988. The crux of
the matter: "Lead plaintiff and South
Milwaukee resident Seit Alla alleges
that Dolgencorp LLC, owner of Dollar
General, made DG motor oil labels
that are misleading to the average
consumer because given their product
placement and front label, they do
not suggest the consumer read the fine
print on the back."

THE REGULATIONS

The National Institute of Standards
and Technology (NIST) National
Conference on Weights and Measures
(NCWM) and Handbook 130
(HB130) are well known in the industry.
HB130 has model labeling and method
of sales requirements that get adopted by
the states, said Leiter. About half of the
states adopt these measures. Practically
speaking, though, for manufacturers
that sell in all 50 states, the Handbook
becomes the guide.
Labels are required to clearly identify
the oil's Society of Automotive Engineers
(SAE) viscosity and American Petroleum Institute (API) performance levels
- both important bits of information
for vehicle owners and vehicle operators
managing fleets. The requirements,

though, didn't originally address the
same form of labeling for bulk motor
oils, which have become more predominant in the industry. Changes
were proposed and applied to oils sold
in bulk in 2012, requiring motor oil
manufacturers to include this information on the containers, and installers to
do the same on their invoices.
The updated requirement is
designed to rid the industry of products that make unspecified claims on
their labels. The label needs to clearly
inform consumers about what is in the
container and how it can be used. Part
of the amendment reads: "The label on
a container of transmission fluid shall
not contain any information that is
false or misleading." Leiter noted that
there is currently a proposal pending
in front of NCWM with respect to
cautionary statements for tractor
hydraulic fluid (THF).
In addition to HB130, manufacturers also often apply for licensure
through the API, which represents
all facets of the natural gas and oil
industry, supporting 103 million U.S.
jobs and nearly 8 percent of the U.S.
economy, according to its website. Its
mission is to "promote safety across the
industry globally and to influence public policy in support of a strong, viable
U.S. oil and natural gas industry."
Kevin Ferrick is manager, engine oil
licensing and certification systems, with
API. "API's main concern is how our
trademarks and registered marks on
engine oils are depicted on the label,"
said Ferrick. "There are requirements
that they have to meet, so even if they're
looking at designs, or changes, they
have to be in compliance with the size
requirements for the trademarks, and
they have to make sure they're depicting
them appropriately and correctly."
"The only other concern we would
generally have, although it's not
something we necessarily enforce, is
a requirement that's been in effect

33
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