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I can't answer how much of red tag was a sales tactic, but search CO poisoning on google news, or create a news alert and you'll see news reports of deaths and people hospitalized daily.
Any device disconnected from the flue is dangerous. That means any natural draft appliance, because they are all disconnected from the chimney they supposedly vent through.
Here's a great blog by David Richardson on the subject: http://bit.ly/davidrDrafthoods
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