FOR IMMEDIATE RELEASE:  October 23, 1989



          FLORIDA INSULATION COMPANY AND ITS OWNER AGREE
           TO PAY $20,000 IN CIVIL PENALTIES TO SETTLE
                 FTC CHARGES THEY MISREPRESENTED
             EFFECTIVENESS OF THEIR HOME INSULATION


     The Federal Trade Commission announced that Thermex Inc. of
Jacksonville, (Fla.), and its owner, Fred W. Hinson, Jr., have
agreed to pay $20,000 in civil penalties to settle charges that
they overstated the R-value and coverage of their cellulose
insulation product.

     In April 1989, the Commission filed a complaint in federal
court charging Thermex with violating the FTC's "R-Value" rule. 
That rule is designed to provide consumers with information to
compare the effectiveness of different types and brands of
insulation.  R-value is the resistance of insulating material to
heat flow -- a measure of the effectiveness of insulation.  The
higher the R-value, the greater the insulating power of the
material.  The FTC rule requires the use of standard test
procedures for determining R-value and requires advertisers to
base their claims about insulating ability on these tests.  

     The complaint charges that Thermex violated the rule by
failing to base its R-value claims on the required tests; by
selling insulation with an R-value that was more than 10% below
the R-value claimed on the coverage chart; and by misrepresenting
coverage information contained on labels and fact sheets.  

     In addition to paying civil penalties, Thermex and Hinson
are enjoined from violating the R-value rule in the future, and
are required to implement a specific quality control program to
be conducted over the next three years.

     The consent decree was filed in the U.S. District Court for
the Middle District of Florida, Jacksonville Division, on October
13, 1989.  The consent decree must be approved by the judge
before it becomes effective.



                             (More)
„Consent decrees are for settlement purposes only and do not
constitute an admission by the company or individual that they
violated  the law.  When approved, consent decrees have the force
of law.

     Copies of the consent decree will be available shortly from
the FTC's Public Reference Branch, Room 130, 6th St. and
Pennsylvania Ave. N.W., Washington, D.C.  20580; 202-326-2180;
TTY 202-326-2502.

                              # # #

MEDIA CONTACT:      Brenda A. Mack, Office of Public Affairs,
                    202-326-2180

STAFF CONTACT:      Kent C. Howerton, Bureau of Consumer
                    Protection, 202-326-3013


(FTC File No. X890020)


(Civil Action No. 89-299-CIV-J-12)


(Thermex-2)€