In March 2004 the California municipality of Aliso Viejo (a suburb in Orange County) came within a cat’s whisker of falling for this hoax after a paralegal there convinced city officials of the danger posed by this chemical. The leg-pull got so far as a vote having been scheduled for the City Council on a proposed law that would have banned the use of foam containers at city-sponsored events because (among other things) they were made with DHMO, a substance that could “threaten human health and safety.”
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One of my favorite shows, Penn & Teller’s Bull **** , used this in an episode. They sent someone to a hippie rally to get signatures on a petition to ban this horrible chemical. It is amazing how many they got.