FOR IMMEDIATE RELEASE:  March 30, 1987

     "MR. TUFF-TIRE" FRANCHISORS ORDERED TO PAY $2.3 MILLION
     IN CONSUMER REFUNDS AND CIVIL PENALTIES, FTC ANNOUNCES

     The Federal Trade Commission announced today that a federal
court has ordered the sellers of "Mr. Tuff-Tire" franchises to
pay $1.4 million in refunds to consumers who bought 87 franchises
based on misrepresentations by the sellers.  The Tuff-Tire fran
chisors have also been ordered to pay $870,000 in civil
penalties.
     The Justice Department, at the FTC's request, filed a
complaint with the court in April 1985 charging Tuff-Tire America
Inc., Tuff-Tire Industries Inc., and their two principals,
Lawrence E. Jaspon and Ross H. Artus, with violating the
Commission's franchise rule.  That rule requires franchisors to
make complete and accurate pre-sale disclosures to potential
purchasers.  In April 1986 the Court ordered the defendants not
to violate the rule in the future, but deferred the award of
monetary relief pending further court proceedings.
     The Tuff-Tire companies sold franchises that installed "Mr.
Tuff-Tire" in car and truck tires.  The companies claimed that
the product sealed punctures, thus preventing flat tires.
     The court order requires the defendants to make refunds to
the purchasers of franchises.  Purchasers paid amounts ranging
from $2,000 to $98,000.
     The Commission's 1985 complaint charged that the companies
misrepresented that franchisees could earn from $110,000 to
$410,000 annually, and that other franchisees had actually earned
this amount.  The companies had no reasonable basis for these
claims and did not provide the prospective franchisees with the
pre-sale information about the earnings claims that was required
by the FTC's rule, according to the complaint.
     This settlement covers only Jaspon and the two Tuff-Tire
companies.  The allegations against Artus were settled in a
consent decree filed in court August 29, 1986, in which he agreed
to pay $15,000 in civil penalties and not to violate the
franchise rule in the future.
     The order was issued by the U.S. District Court for the
Middle District of Florida, Tampa Division.  Tuff-Tire was first
based in Framingham, Mass., and later in Largo, Fla.
     Copies of the Order of Final Judgment, Order of Restitution,
and Default Order and Judgment are available from the FTC's
Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave.
N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502.
                              # # #


MEDIA CONTACT:     Susan Ticknor, Office of Public Affairs,
                   202-326-2179

STAFF CONTACT:     Susanne S. Patch, Bureau of Consumer
                   Protection,
                   202-326-2981

(FTC File No. 832 3061)   (Civil Action No. 85-728-CIV-T-15)

(TuffTire2)