[Federal Register Volume 60, Number 55 (Wednesday, March 22, 1995)]
[Rules and Regulations]
[Pages 15198-15199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7059]
[[Page 15197]]
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Part V
Federal Trade Commission
_______________________________________________________________________
16 CFR Part 305
Energy Consumption and Water Use of Certain Home Appliances and Other
Products; Final Rule and Proposed Rule
Federal Register / Vol. 60, No. 55 / Wednesday, March 22, 1995 /
Rules and Regulations
[[Page 15198]]
FEDERAL TRADE COMMISSION
16 CFR Part 305
Rule Concerning Disclosures Regarding Energy Consumption and
Water Use of Certain Home Appliances and Other Products Required Under
the Energy Policy and Conservation Act (``Appliance Labeling Rule'')
AGENCY: Federal Trade Commission.
ACTION: Final rule, policy statement delaying enforcement.
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SUMMARY: The Federal Trade Commission, in response to a petition,
issues an Enforcement Policy Statement under which the Commission will
avoid taking law enforcement actions against manufacturers of general
service incandescent lamps (including reflector lamps) not in
compliance with the labeling disclosure requirements of the Appliance
Labeling Rule until December 1, 1995.
EFFECTIVE DATE: March 22, 1995.
FOR FURTHER INFORMATION CONTACT: Kent C. Howerton, Attorney, Division
of Enforcement, Bureau of Consumer Protection, Room S-4631, Federal
Trade Commission, Washington, DC 20580, telephone 202/326-3013.
SUPPLEMENTARY INFORMATION:
I. Background
On May 13, 1994, the Commission published amendments to the
Appliance Labeling Rule to bring certain lamp products under the Rule's
coverage.1 The amendments will become effective on May 15, 1995.
The Commission promulgated the amendments in response to a directive in
the Energy Policy Act of 1992 (``EPA 92'').2 In a petition dated
January 31, 1995 (``Petition''), the Lamp Section of The National
Electrical Manufacturers Association (``NEMA'')3 requested that
the Commission allow manufacturers of specific types of incandescent
lamp products an option as to where on the package specific disclosures
must be made, and stay compliance with the Rule through November 30,
1995. In a document published elsewhere in this issue of the Federal
Register, the Commission proposes amendments to the lamp labeling
requirements of the Appliance Labeling Rule and requests comments on
the amendments. The Commission responds to NEMA's request for a stay
below.
\1\Final rule and Statement of Basis and Purpose (``SBP''), 59
FR 25176. On December 29, 1994, the Commission published minor,
technical amendments to resolve certain inconsistencies in paragraph
numbering and language that had arisen during the course of four
recent proceedings amending the Rule. 59 FR 67524.
\2\Pub. L. No. 102-486, 106 Stat. 2776, 2817-2832 (Oct. 24,
1992) (codified at 42 U.S.C. 6201, 6291-6309).
\3\NEMA is a trade association representing the nation's largest
manufacturers of lamp products. Its members produce more than 90
percent of the lamp products subject to the lamp labeling
requirements of the Appliance Labeling Rule. Petition at 2.
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II. NEMA's Request for a Stay
NEMA's Petition requests that the Commission stay, through November
30, 1995, ``compliance against manufacturers who, in good faith and
despite the exercise of due diligence, are unable to change all of
their lamp packages prior to the May 15, 1995 effective date of the
Lamp Labeling Rule.'' In support of its request for a stay, NEMA
asserts that manufacturers must change by May 15, 1995, a large number
of packaging designs and equipment for many stock-keeping units
(``SKUs'').4 The extent of the changes to the lamp packages, the
number of product-types affected, and the need to coordinate energy
efficiency disclosures with other marketing information, such as logos,
names, and comparative representations, has resulted in a more time-
consuming and costly conversion process than NEMA and its members
initially projected. The lamp labeling amendments have had the effect
of requiring manufacturers to undertake substantial redesign of the
lamp package. According to NEMA, some manufacturers have undertaken
extensive market research to determine the most effective placement of
required disclosures in conjunction with other marketing information.
Because the marketing significance of a lamp package is much greater
than that of a yellow EnergyGuide attached to a larger and more
expensive home appliance, the redesign of lamp packages entails much
more than merely adding a disclosure box and some explanatory
statements.5
\4\NEMA's counsel informed the Commission's staff that its
members produce over two thousand SKUs that will be covered by the
lamp labeling requirements of the Appliance Labeling Rule.
\5\Petition at 7.
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In addition, NEMA asserts that, because of ambiguities in the lamp
labeling requirements of the Appliance Labeling Rule and the different
requirements of the preexisting Light Bulb Rule, 16 CFR Part 409, it
has been necessary for manufacturers to seek various clarifications and
other advice from the Commission's staff before manufacturers could
finalize package designs for their entire inventory.6 NEMA states
that, while the Commission's staff offered informal advice on many
occasions, NEMA believes it needs formal, written guidance concerning
specific issues.7 Because of the number of issues involved, NEMA
asserts that manufacturers have been unable in many respects to
complete their packaging designs, or to order new printing plates and
paper stock pending resolution of specific issues. NEMA contends,
therefore, that even acting in good faith and exercising due diligence,
manufacturers are unlikely to be able to complete the changeover of
their entire packaging inventory prior to the May 15, 1995, effective
date.8 Accordingly, NEMA requests that the Commission stay
compliance of the lamp labeling provisions of the Appliance Labeling
Rule for all lamps other than general service fluorescent lamps for six
months, through November 30, 1995.9
\6\Petition at 8.
\7\Id. at 2 note 1, 8. NEMA has consolidated and limited the
issues on which it requests written advice in a letter to the
Commission's staff dated January 30, 1995. The Commission's staff
responded to the issues raised in that letter in a separate, written
staff opinion letter.
\8\Id.
\9\Id. at 9-10.
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III. Enforcement Policy Statement
The Commission has determined that it would not be appropriate for
the Commission to stay the effective date of the lamp labeling
amendments to the Appliance Labeling Rule because the effective date is
set by the EPA 92 amendments to EPCA and the statute does not authorize
the Commission to extend the effective date. 42 U.S.C.
6294(a)(2)(C)(i). The Commission, however, has determined to grant
manufacturers of incandescent lamps the additional time petitioner
requests.
In light of the amendments to the Rule the Commission proposes
today elsewhere in this issue of the Federal Register in response to
the Petition from NEMA and the apparent uncertainties among
incandescent lamp manufacturers regarding their compliance
responsibilities under the combined requirements of the Appliance
Labeling Rule and the Light Bulb Rule, 16 CFR Part 409, and in order to
minimize relabeling costs, the Commission has determined to not take
law enforcement actions until December 1, 1995, against manufacturers
of incandescent lamp products not in compliance with the lamp labeling
requirements of the Appliance Labeling Rule. Petitioner, however, has
not demonstrated why a similar delay should apply to the labeling
disclosure requirements for medium base compact fluorescent lamps, as
requested in the Petition. The Commission, therefore,
[[Page 15199]] has determined that the delay in taking law enforcement
actions will not apply to the labeling requirements for medium base
compact fluorescent lamps.10
\10\No evidence was presented in the original rulemaking record
concerning the effect, if any, of different voltages on compact
fluorescent lamps, which operate through the use of a ballast that
regulates the lamp current during operation, or that medium base
compact fluorescent lamps are produced or marketed with design
voltages other than 120 volts. Similarly, the delay will not apply
to the labeling disclosure requirements for general service
fluorescent lamps, for which petitioner did not request a stay.
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List of Subjects in 16 CFR Part 305
Advertising, Consumer protection, Energy conservation, Household
appliances, Labeling, Lamp products, Penalties, Reporting and
recordkeeping requirements.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-7059 Filed 3-21-95; 8:45 am]
BILLING CODE 6750-01-P