| Say you have an energy system, like an engine. Here's a perfect, perpetual motion type of system that runs itself. This is impossible. 
Now let's say you want to get some power out of that system: 
You're trying to draw power out of this system. Without power coming from anywhere, this just isn't going to happen. So you add some fuel to the system to introduce some energy to the overall system: 
Now you have a source of energy for your power. The engine converts it into motion, and that motion runs the accessories which produce electricity and such. But say you want to increase the gas mileage and decrease fuel consumption like that site claims their product does. If you decrease your fuel consumption which is fueling the overall system, where will you get your power from? They're claiming that the electrolysis of water is where they're getting their power from. It will take electricity to electrolysize the water, and the resultant hydrogen and oxygen will be burned in the engine to produce power. So we add this little subsystem to your larger engine system. 
But let's zoom in on the little subsystem: 
From past experience, we know that it takes more energy to separate the hydrogen and oxygen from the water than produced hydrogen and oxygen can provide. You lose some energy in this process. Therefore, you cannot make an engine that burns strictly water because more power has to go INTO the engine to run it is greater than the power that can come out of it. So this subsystem has an overall power loss. When you add it to your overall engine system in your car, the subsystem will be drawing more power than it contributes. So what you end up with is a parasitic subsystem which decreases power and efficiency. 
This product is a scam which operates on flawed premises.
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I'll try to explain this in simple terms with cheesy pics - 
