Defendant Is Parent Of Anaheim Firm : FTC Suit Seeks Heat Detector Refunds

The Federal Trade Commission on Monday sued the parent corporation of an Anaheim manufacturer of heat detectors, alleging that the company had fraudulently misrepresented the usefulness of such detectors in saving lives. The suit seeks up to $20 million in consumer refunds.

The commission filed suit against Richmond, Va.-based Figgie International in U.S. District Court in Los Angeles. The lawsuit asks full refunds for consumers who paid $500 to $1,000 apiece for the estimated 15,000 to 20,000 Vanguard brand heat detector systems sold between May 18, 1980, and July 20, 1987.

Each system contained five heat detectors--manufactured at an Anaheim factory by Interstate Engineering, a Figgie subsidiary--and one smoke detector.

FTC Regional Director Marcy J. K. Tiffany alleged at a news conference that Figgie advertised the system as providing early warning of a residential fire even though this was untrue and Figgie knew it was untrue. “Figgie knew that (its advertised claims) were misrepresentations. . . . The system does not give you early warning,” she said.

The FTC ruled in 1986, and a federal court of appeals agreed last year, that the claims were deceptive and ordered them stopped. Heat detectors may be useful in kitchens and garages--where non-threatening smoke and fumes might repeatedly set off a smoke detector--but should be used together with smoke detectors placed in bedrooms and hallways, Tiffany said.

Figgie spokesman Donald E. Eagon Jr. said the company had complied with the 1986 order. He declined comment on Monday’s lawsuit, saying his firm had not yet received a copy.

Household heat detectors and cheaper, more common smoke detectors are designed to set off an alarm when a fire breaks out. Smoke detectors are best at sensing slow, smoldering fires while heat detectors are supposed to quickly signal sudden, hot fires, such as when curtains or piles of paper ignite.

Interstate Engineering is one of 40 companies that Figgie owns, Eagon said. Another Figgie subsidiary, Rawlings, is the nation’s largest manufacturer of team sport equipment, he said. Last year Figgie earned $49 million on sales of $1.02 billion.

Tiffany announced the lawsuit after the close of trading Monday. The company’s common shares closed at $67, up 50 cents on moderate over-the-counter trading of 13,000 shares.

Times Staff Writer Eric Schine in Orange County contributed to this story.