Issue Date:  -  Friday, 31 October 2003

'Fuel Magic' pills - Magic moment in court

The Department of Consumer and Employment Protection (DOCEP) has today successfully prosecuted Milestone Marketing for making false statements about a product known as the 'Fuel Magic' pill.

Avned Holdings Pty Ltd, Malcolm Charles Emery, Pamela Faye Emery, Langlois Robert Bruce Lefroy and Cynthia Jeannine Lefroy, all trading as Milestone Marketing, pleaded guilty to a total of 32 charges under the Fair Trading Act 1987.

Avned Holdings Pty Ltd, the Emerys and Lefroys were fined and had costs awarded to a total of $24,200.

"The magic fuel pills were without the performance characteristics, uses or benefits claimed for them", Magistrate Mr Jeremy Packington concluded.

The Department first began investigations in 2000 after a consumer complaint to the Australian Competition and Consumer Commission (ACCC), which was referred to the Ministry of Fair Trading (now DOCEP).

In 2000 and 2001, Milestone Marketing marketed a brown tablet called 'Fuel Magic'.

Motorists were told that the 'pill' would slash fuel costs by up to 42%, providing a cost savings average of between $10-20 per tank. The 'pills' were sold for $2.50 each.

"Independent tests conducted by the University of WA's Engineering and Design and Consultancy Centre in December 2000 found the 'pills' produced no measurable reduction in fuel consumption", Consumer Protection Commissioner Patrick Walker said.

The traders also claimed use of the tablet was covered by a $15 million insurance policy against engine damage. However the policy was cancelled due to non-payment of premiums.

"The 'pills' were released during a time when there was significant public concern over fuel prices.

"These opportunistic traders were obviously taking advantage of consumers with their false claims."

Complaints can be reported by calling Consumer Protection on 1300 30 40 54.

Bronwyn Frazer
A/ Principal Media Liaison Officer
Consumer Protection
Department of Consumer and Employment Protection, WA
P: 08 9282 3961
M: 0403 866 742