[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Proposed Rules]
[Pages 4382-4389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2431]



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FEDERAL TRADE COMMISSION

16 CFR Part 409


Trade Regulations Rule Concerning the Incandescent Lamp (Light 
Bulb) Industry

AGENCY: Federal Trade Commission.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Trade Commission (``Commission'' or ``FTC'') 
announces the commencement of a rulemaking proceeding to consider 
whether or not the Trade Regulation Rule Concerning the Incandescent 
Lamp (Light Bulb) Industry (``Light Bulb Rule'' or ``Rule'') should be 
repealed. This notice includes a description of the procedures to be 
followed, an invitation to submit written comments, a list of questions 
and issues upon which the Commission particularly desires comments, and 
instructions for prospective witnesses and other interested persons who 
desire to participate in the proceeding.

DATES: Written comments must be submitted on or before March 7, 1996.
    Notifications of interest in testifying must be submitted on or 
before March 7, 1996. If interested parties request the opportunity to 
present testimony, the Commission will publish a notice in the Federal 
Register stating the time and place when the hearings will be held and 
describing the procedures that will be followed in conducting the 
hearings. In addition to submitting a request to testify, interested 
parties who wish to present testimony must submit, on or before March 
7, 1996, a written comment or statement that describes the issues on 
which the party wishes to 

[[Page 4383]]
testify and the nature of the testimony to be given.

ADDRESSES: Written comments and requests to testify should be submitted 
to Office of the Secretary, Federal Trade Commission, Room H-159, Sixth 
Street and Pennsylvania Avenue, N.W., Washington, DC 20580, telephone 
number 202-326-2506. Comments and requests to testify should be 
identified as ``16 CFR Part 409--Comment--Light Bulb Rule'' and ``16 
CFR Part 409--Request to Testify--Light Bulb Rule,'' respectively. If 
possible, submit comments both in writing and on a personal computer 
diskette in Word Perfect or other word processing format (to assist in 
processing, please identify the format and version used). Written 
comments should be submitted, when feasible and not burdensome, in five 
copies.

FOR FURTHER INFORMATION CONTACT: Kent C. Howerton or James G. Mills, 
Attorneys, Federal Trade Commission, Bureau of Consumer Protection, 
Division of Enforcement, Room S-4302, 601 Pennsylvania Avenue, N.W., 
Washington, DC 20580, telephone (202) 326-3013 or (202) 326-3035, 
respectively.

SUPPLEMENTARY INFORMATION:

I. Background Information

A. Purpose of this Proceeding

    On April 6, 1995, the Commission published a request for comments 
concerning the Light Bulb Rule as part of the Commission's regulatory 
review program for all of its rules and guides.1 When the 
Commission issued the lamp amendments to the Appliance Labeling Rule, 
it announced that, although there were no conflicts between the two 
Rules, it would decide following the amendment proceeding what further 
action, if any, it should take concerning the Light Bulb Rule. The 
April 6, 1995, notice solicited comments about the benefits and burdens 
of the Light Bulb Rule to consumers and industry, and about whether a 
need still exists for the Light Bulb Rule in light of the new labeling 
requirements in the Appliance Labeling Rule.2 The Commission 
received nine comments in response to the notice. The comments are 
discussed in Part II.A, below.

    \1\ Request for comments, 60 FR 17491. The comment period was 
scheduled to end on June 6, 1995, but was extended until August 7, 
1995, at the request of industry members.
    \2\ Under section 18(b)(2) of the FTC Act, 15 U.S.C. 57a(b)(2), 
the Commission must publish an advance notice of proposed rulemaking 
(``ANPR'') prior to initiating a proceeding to promulgate, amend, or 
repeal a trade regulation rule. The Commission has determined to 
treat the April 6, 1995, notice as an ANPR because it contained all 
the elements that section 18(b)(2) requires in an ANPR. 
Specifically: (1) it contained a brief description of the area of 
inquiry under consideration, the objectives which the Commission 
seeks to achieve, and possible regulatory alternatives under 
consideration; and (2) it invited interested parties to submit 
comments, including any suggestions or alternative methods for 
achieving such objectives. To comply with section 18, the Commission 
subsequently submitted the notice to the Chairman of the Committee 
on Commerce, Science, and Transportation, United States Senate and 
the Chairman of the Subcommittee on Commerce, Trade and Hazardous 
Materials, United States House of Representatives.
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    Pursuant to the FTC Act, 15 U.S.C. 41-58, and the Administrative 
Procedure Act, 5 U.S.C. 551-59, 701-06, by this Notice of Proposed 
Rulemaking (``NPR'') the Commission initiates a proceeding to consider 
whether the Light Bulb Rule should be repealed, modified, or remain in 
effect as is.3 The Commission solicits public comments on these 
issues. Section 18 of the FTC Act, 15 U.S.C. 57a, authorizes the 
Commission to promulgate, amend, and repeal trade regulation rules that 
define with specificity acts or practices that are unfair or deceptive 
in or affecting commerce within the meaning of section 5(a)(1) of the 
FTC Act, 15 U.S.C. 45(a)(1). If the Commission determines, based on the 
data, views and arguments submitted, that the Commission should 
consider additional alternatives, it will publish a supplemental notice 
of proposed rulemaking and will request public comments on those 
alternatives.

    \3\ In accordance with section 18 of the FTC Act, 15 U.S.C. 47a, 
the Commission submitted this NPR to the Chairman of the Committee 
on Commerce, Science, and Transportation, United States Senate and 
the Chairman of the Subcommittee on Commerce, Trade and Hazardous 
Materials, United States House of Representatives 30 days prior to 
publication of the NPR.
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    The Commission is undertaking this rulemaking proceeding as part of 
the Commission's ongoing program of evaluating trade regulation rules 
and industry guides to determine their effectiveness, impact, cost and 
need. This proceeding also responds to President Clinton's National 
Regulatory Reinvention Initiative, which, among other things, urges 
agencies to eliminate obsolete or unnecessary regulations.

B. History and Requirements of the Light Bulb Rule

    The Commission promulgated the Light Bulb Rule on July 23, 1970, 
following a public rulemaking proceeding.4 The Rule became 
effective on January 25, 1971. The Light Bulb Rule applies only to 
general service incandescent electric lamps (commonly referred to as 
``light bulbs'').5

    \4\ Final Rule and Statement of Basis and Purpose (``Light Bulb 
Rule SBP''), 35 FR 11784 (1970).
    \5\ The Rule defines ``general service incandescent lamps'' as 
all medium screw base incandescent electric lamps, 15-watt through 
150-watt, 115-volt through 130-volt. The term includes lamps in the 
customary ``A'' type and other bulb shapes included in Interim 
Federal Specification W-L-00101G, and lamps that are produced in 
generally comparable bulb shapes for sale in competition with other 
general service incandescent lamps. The Rule specifically excludes 
lamps designed and promoted primarily for decorative applications, 
appliances, traffic signals, showcases, projectors, airport 
equipment, trains, and lamps such as color, flood, reflector, rough 
service, and vibration service. 16 CFR 409.1 n. 3. The lamp products 
covered by the Light Bulb Rule commonly are referred to as ``light 
bulbs.'' The term ``lamp products,'' on the other hand, refers more 
broadly to all types of lighting products. In this notice, the term 
``light bulb'' refers only to those lamp products covered by the 
Light Bulb Rule.
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    Based on the record in the rulemaking proceeding, the Commission 
made the following factual findings, among others: (1) manufacturers 
normally marked light bulbs or their containers with only voltage and 
wattage ratings; (2) a substantial portion of the consuming public 
believed that all light bulbs of the same wattage would last 
approximately the same length of time and/or would emit approximately 
the same amount of light; (3) light bulbs of the same wattage were 
marketed with different rated lives and varying amounts of lumen output 
(light output); (4) there is a scientific principle that, for any given 
wattage, as the design life of a bulb increases, the bulb's light 
output decreases; (5) a substantial portion of the consuming public 
preferred purchasing light bulbs for specific purposes such as reading, 
working, or for convenience; (6) cost savings claims had been made, 
such as ``Save ____ Dollars'' or ``Outlasts ____ Bulbs,'' that did not 
include all of the data essential for consumers to make valid cost 
comparisons and that resulted in half truths; and (7) claims had been 
made concerning ``more or brighter light'' and ``longer life'' without 
disclosing the specific comparisons being drawn. 35 FR at 11785.
    The Commission concluded that: (1) the failure to disclose lumens, 
life, cost, and other data can mislead and deceive consumers; (2) cost 
savings claims that do not tell the complete story are deceptive; (3) 
unqualified claims such as ``long life'' or ``more light'' are 
inherently deceptive if the lumen and life ratings of the products 
being advertised and the products being compared are not disclosed; and 
(4) claims such as ``maintain brightness better'' are deceptive if not 
accompanied by a disclosure of lumens maintained over time for both the 
advertised and compared products. Id. at 11788, 11791.
    The Commission promulgated the Light Bulb Rule to prevent these 
misleading and deceptive acts and 

[[Page 4384]]
practices. In summary, the Rule declares it is an unfair method of 
competition and an unfair and deceptive act or practice, in connection 
with the sale of general service incandescent light bulbs, to:
    (1) fail to disclose clearly and conspicuously on the containers of 
such light bulbs (or, if there are no containers, on the bulbs 
themselves) their average initial wattage, average initial lumens, and 
average laboratory life, 16 CFR 409.1(a)-(b);
    (2) fail to disclose clearly and conspicuously on the bulbs 
themselves their average initial wattage and design voltage, Id. at 
409.1(b); 6

    \6\ In the Light Bulb Rule SBP, the Commission explained that 
industry stressed the need to maintain a prominent wattage 
disclosure on incandescent light bulbs because the use of excess 
wattage in fixtures is unsafe and because consumers were accustomed 
to buying on the basis of wattage. 35 FR at 11786.
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    (3) represent or imply that savings in light bulb cost or the cost 
of light output will result from the use of a particular light bulb 
product because of the bulb's life or light output unless, in computing 
such savings, the following factors are taken into account and 
disclosed clearly and conspicuously for the light bulb being sold and 
the bulb with which the comparison is being made: light bulb cost, 
electrical power cost, labor cost for bulb replacement (if any), actual 
light output in average initial lumens, and average laboratory life in 
hours, Id. at 409.1(c); and
    (4) represent or imply that a light bulb will give more light, 
maintain brightness longer, or furnish longer life without clearly and 
conspicuously disclosing, for both the light bulb being sold and the 
light bulb with which the comparison is being made: the average initial 
light output in lumens, the average initial wattage, the laboratory 
life in hours, and, if there is a claim that the light bulb maintains 
brightness longer, the light output in lumens at 70% of the bulbs' 
rated lives (``maintained average lumens''), Id. at 409.1(d).
    Four notes at the end of the Rule define terms used in the Rule or 
require certain procedures or tests to be used in making disclosures 
required by the Rule. Specifically, these notes: (1) state how 
manufacturers must determine the wattage, lumen, and life rating 
disclosures required by the Rule, and require these ratings to be 
determined at the light bulb's stated design voltage, Id. at 409.1 n. 
1; (2) required for one year following the effective date of the Rule 
that all light bulb labels explain the meaning of the word ``lumen'' 
whenever it was used, Id. at 409.1 n. 2; (3) define the term ``general 
service incandescent lamp'' to mean all medium screw base incandescent 
light bulbs, including ``A'' type bulbs and all other incandescent 
bulbs that are substantially the same as ``A'' type bulbs, Id. at 409.1 
n. 3; and (4) define the meaning of the Rule's term ``clear and 
conspicuous'' with respect to the minimum type size and style for 
required disclosures and state where the required disclosures must be 
made, Id. at 409.1 n. 4.

C. Comparison to Requirements of the Appliance Labeling Rule

    In 1994, pursuant to a directive of the Energy Policy Act of 1992 
(``EPA 92''),7 the Commission amended its 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''), 16 CFR 305, to specify 
new labeling requirements for lamp products.8 EPA 92 directed the 
Commission to prescribe rules requiring that certain types of lamp 
products be labeled with ``such information as the Commission deems 
necessary to enable consumers to select the most energy efficient lamps 
which meet their requirements.'' 42 U.S.C. 6294(a)(2)(C)(i).

    \7\ Pub. L. No. 102-486, 106 Stat. 2776, 2817-2832 (Oct. 24, 
1992) (codified in 42 U.S.C. 6201, 6291-6309). EPA 92 amended in 
several respects the Energy Policy and Conservation Act of 1975 
(``EPCA''), which requires the Commission to prescribe labeling 
rules for certain major household appliances and other products.
    \8\ Final Rule and Statement of Basis and Purpose (``Appliance 
Labeling Rule/Lamps SBP''), 59 FR 25176 (1994). The lamp labeling 
requirements of the Appliance Labeling Rule became effective on May 
15, 1995. In light of amendments to the Appliance Labeling Rule that 
the Commission proposed on March 22, 1995, in response to a petition 
from the National Electrical Manufacturers Association (``NEMA''), 
and apparent uncertainties among incandescent lamp manufacturers 
regarding their compliance responsibilities under the combined 
requirements of the Appliance Labeling Rule and the Light Bulb Rule, 
the Commission determined, however, that it would not take law 
enforcement actions until December 1, 1995, against manufacturers of 
incandescent lamp products not in compliance with the Appliance 
Labeling Rule. 60 FR 15198 (March 22, 1995).
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    In addition to incandescent light bulbs, the Appliance Labeling 
Rule applies to incandescent reflector lamps, 16 CFR at 305.03(m), 
medium screw base compact fluorescent lamps, Id. at 305.03(l), and 
general service fluorescent lamps, Id. at 305.03(k). Although there are 
no direct conflicts between the Light Bulb Rule and the Appliance 
Labeling Rule, there are overlapping requirements for the light bulbs 
that are covered by both Rules. The discussion in this notice 
summarizes only the requirements of the two Rules that apply to these 
light bulbs.
    Like the Light Bulb Rule, the Appliance Labeling Rule requires 
disclosures on package labels of light output, wattage, and life 
ratings. 16 CFR 305.11(e)(1) (i)-(ii). As required by EPCA, 42 U.S.C. 
6294(a)(2)(C)(i), the Appliance Labeling Rule requires that these 
disclosures be based on performance at 120 volts input, regardless of 
the rated lamp voltage (design voltage).9 The Appliance Labeling 
Rule, however, allows manufacturers the option of adding disclosures on 
lamp packages based on the lamp's performance at a different design 
voltage of 125 volts or 130 volts, if the applicable voltage (i.e., 
120, 125, or 130) is disclosed on the label along with each disclosure 
of light output, wattage, and life. Manufacturers may choose to place 
the performance information at a design voltage of 125 volts or 130 
volts on the primary display panel of the package and place the 
performance information at 120 volts elsewhere on the package. If they 
do so, they must add a specific disclosure on the primary display panel 
that describes the effect on performance of the difference in voltage 
and where on the package the performance information at 120 volts may 
be found.10

    \9\ 16 CFR 305.11(e)(1)(iii) (1995). The Commission amended this 
paragraph regarding other requirements on June 13, 1995. Final Rule 
(``1995 lamp amendments''), 60 FR 31077, 31081 (1995) (to be 
codified at 16 CFR 305.11(e)(1)(iii)).
    \10\ Id. The specific disclosure is: ``This product is designed 
for [125/130] volts. When used on the normal line voltage of 120 
volts, the light output and energy efficiency are noticeably 
reduced. See [side/back] panel for 120 volt ratings.''
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    The Appliance Labeling Rule requires that these disclosures appear 
together in a specified order and be worded in a certain way (i.e., as 
``Light Output: ____ Lumens; Energy Used: ____ Watts; Life: ____ 
Hours'') on the label's principal display panel. 16 CFR 
305.11(e)(1)(ii). The Light Bulb Rule, on the other hand, does not 
specify any order or wording for its required disclosures. It simply 
specifies that the three ratings be disclosed in terms of lumens, 
watts, and hours, and appear together on at least two panels of the 
label, and on any other panel on which a lumen, wattage, or hours of 
life claim is made. 16 CFR 409.1(a), 409.1 n. 4.
    The Appliance Labeling Rule requires that the disclosures of light 
output, energy used, and life appear with equal clarity and 
conspicuousness. 16 CFR 305.11(e)(ii). It does not specify any 
particular type style or type size, but it requires that certain 
disclosures be made in the same size print, and that 

[[Page 4385]]
other disclosures be approximately 50% as large. The Light Bulb Rule 
specifies that both the lumens and hours rating disclosures be in a 
medium- or bold-face type that is at least two-fifths the height of the 
wattage rating figure on the same panel or three-sixteenths of an inch 
in height, whichever is larger. 16 CFR 409.1 n. 4. The Light Bulb Rule 
also includes similar type size and style requirements for the 
disclosures for multiple filament (three-way) light bulbs.
    The Appliance Labeling Rule specifies two additional disclosures 
that are not required by the Light Bulb Rule. First, the following 
statement must appear on the principal display panel of the package 
label: 11

    \11\ 16 CFR 305.11(e)(1)(vi) (1995). On June 13, 1995, the 
Commission amended this provision to allow manufacturers of 
incandescent reflector lamps to add to this advisory statement a 
reference to selecting a lamp at the beam spread, as well as the 
light output, that purchasers need. 60 FR at 31081 (1995) (to be 
codified at 16 CFR 305.11(e)(1)(vi)).

    To save energy costs, find the bulbs with the light output you 
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need, then choose the one with the lowest watts.

Second, all cartons of covered lamps that are shipped within or 
imported into the United States must be marked with the following 
statement:
    These lamps comply with Federal energy efficiency labeling 
requirements. 16 CFR 305.11(e)(4).
    The Light Bulb Rule requires that the disclosures of light output, 
wattage, and life be determined in accordance with a specific Federal 
purchase specification and be based upon generally accepted and 
approved test methods and specifications, at the lamp product's design 
voltage.12 The Appliance Labeling Rule requires that disclosures 
of design voltage, wattage, light output or life be based upon a 
reasonable basis consisting of competent and reliable scientific tests 
that substantiate the disclosures. Under the Appliance Labeling Rule, 
for light output and life ratings the Commission will accept, but does 
not require, tests conducted according to specific test protocols 
issued by IES,13 or testing in accordance with final test 
procedures issued by the U.S. Department of Energy.14

    \12\ 16 CFR 409.1 n. 1. The Light Bulb Rule states that, for 
light bulbs covered by that Rule, the ``average initial wattage, 
average initial lumen, and average laboratory life disclosures 
required by this section shall be in accordance with the 
requirements of interim Federal Specification, Lamp, Incandescent 
(Electric, Large, Tungsten-Filament) W-L-00101 G and shall be based 
upon generally accepted and approved test methods and procedures.'' 
In 1977, that specification ceased being interim and is now known as 
Federal Specification, Lamp, Incandescent (Electric, Large, 
Tungsten-Filament) W-L-101H/GEN. This specification refers to 
pertinent American National Standards Institute (``ANSI'') test 
protocols, which are consistent with the Illuminating Engineering 
Society of North America (``IES'') protocols that are cited in the 
Appliance Labeling Rule, 16 CFR 305.5(b), as an acceptable 
reasonable basis for determining the light output and life of 
incandescent light bulbs. 59 FR at 25200 n. 251.
    \13\ 16 CFR 305.5(b). See also note 12, supra.
    \14\ 59 FR at 25200.
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    Both Rules contain provisions concerning claims about a lamp 
product's operating cost. The Appliance Labeling Rule requires that any 
label, printed material prepared for display or distribution at the 
point of sale, or catalog from which a covered lamp product may be 
ordered that contains an operating cost claim clearly and conspicuously 
disclose, in close proximity to the claim, the assumptions upon which 
the claim is based, including, e.g., purchase price, unit cost of 
electricity, hours of use, patterns of use. 16 CFR 305.11(e)(3), 
305.13(a)(3), 305.14(c)(2). These Appliance Labeling Rule disclosure 
requirements do not apply to such claims made in other promotional 
materials, such as advertisements.
    The Light Bulb Rule's provision applies to claims that savings in 
either light bulb cost or cost of light will result from the use of a 
particular light bulb because of the bulb's life or light output. It 
covers all comparative light bulb life, light output, and light bulb 
cost claims. The Light Bulb Rule specifies additional factors (e.g., 
labor costs for replacement, light output, life) that, depending on the 
particular claim being made, must be taken into consideration and 
clearly and conspicuously disclosed, for both the light bulb being 
offered for sale and the bulb(s) with which the comparison is being 
made. 16 CFR 409.1(c). The Light Bulb Rule's requirements apply to 
these claims made in all types of advertising, as well as on labels, 
point-of-sale printed materials, and catalogs.
    Unlike the Light Bulb Rule, the Appliance Labeling Rule does not 
include disclosure requirements concerning comparative claims that a 
lamp product will give more light, maintain brightness longer, or 
furnish longer life. In addition, the Appliance Labeling Rule does not 
require that lamp products be marked with any information. The Light 
Bulb Rule, on the other hand, requires that light bulbs themselves be 
marked clearly and conspicuously with wattage and design voltage. 16 
CFR 409.1(b).

II. Discussion and Analysis

A. Regulatory Review Comments

    The Commission received nine comments in response to the April 6, 
1995, notice.15 Four comments were submitted by individual 
consumers, one by an organization that purchases and uses light bulbs 
(``organization/user comment''), three by lamp product manufacturers, 
and one by a trade association that represents lamp product 
manufacturers.16

    \15\ Anderson, #1; Raeth, #2; Bowe, #3; McGarry, #4; Hytron 
Electric Products, a division of Trojan Inc. (``Hytron''), #5; Delta 
Phi Epsilon, Washington, DC, #6 (``DPE''); Philips Lighting, Philips 
Elmet, a division of North American Philips Corporation 
(``Philips''), #7; GE Lighting, General Electric Company (``GE''), 
#8; and Lamp Section, NEMA, #9. The comments submitted in response 
to the April 6, 1995, notice are filed as document numbers 
B17240700001, B17240700002, etc. In today's notice, the comments are 
cited as #1, #2, etc.
    \16\ The trade association, NEMA, is the largest U.S. trade 
association representing manufacturers of products used in the 
generation, transmission, distribution, control, and end-use of 
electricity. Member companies in the Lamp Section of NEMA produce 
more than 90% of general service incandescent and fluorescent lamp 
products sold in the United States. NEMA Lamp Section members 
include General Electric Lighting, Osram Sylvania, Inc., Philips 
Lighting Company, Supreme Corp., Venture Lighting International, 
Duro-Test Corp. and EYE Lighting International. NEMA, #9, cover 
letter, comment pg. 1.
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    The four individual consumer comments state that the Rule is still 
needed because the disclosures required by the Rule help consumers make 
informed purchasing decisions.17 They want labels to continue to 
disclose light output, wattage, and life information. These comments do 
not address whether, if the Commission repealed the Light Bulb Rule, 
the labeling requirements of the Appliance Labeling Rule would require 
that manufacturers provide consumers with this information. The 
organization/user comment also opposes the elimination of the Light 
Bulb Rule. It contends consumers would lose valuable consumer 
protections that are only contained in the Light Bulb Rule.18

    \17\ Matt Anderson, #1 (Rule very valuable to him as a consumer; 
reads labels very closely, particularly as to lumens and voltage; 
label information can be a safety factor since many enclosed 
fixtures are rated for up to 60W but 75+W bulbs will fit the same 
sockets); Marilyn Raeth, #2 (eliminating the Rule would be a great 
disservice to the consumer, who would not know the value of what he 
or she was purchasing); Madeline Bowe, #3 (maintain Rule requiring 
packages to show wattage, lumens, and bulb life; consumers have a 
right to know what they are buying); and James A. McGarry, #4 (do 
not weaken the labeling requirements; uses information to make 
comparative decisions when purchasing).
    \18\ DPE, #6.
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    Hytron, a manufacturer of extended-service, long-life incandescent 
lamp products, including incandescent reflector lamps and traffic 
signal lamps, supports keeping the Light Bulb Rule, and, instead, 
eliminating the lamp labeling requirements of the Appliance 

[[Page 4386]]
Labeling Rule.19 It appears that Hytron primarily objects to the 
Appliance Labeling Rule because it requires labeling disclosures of 
incandescent lamps at 120 volts regardless of the lamp's design 
voltage, and because it requires the labeling of incandescent reflector 
lamps.20

    \19\ Hytron, #5.
    \20\ The Commission does not have the authority to eliminate 
these requirements from the Appliance Labeling Rule. EPCA requires 
that labeling information for incandescent lamps under the Appliance 
Labeling Rule be based on operation at 120 volts. 42 U.S.C. 
6294(a)(2)(C)(i). EPCA also defines the lamp products, including 
incandescent reflector lamps, that are to be covered by the lamp 
labeling rules under the Appliance Labeling Rule. 42 U.S.C. 
6291(30), 6294(a)(2)(C)(i).
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    The comments from two manufacturers (Philips and GE) and the trade 
association state that the Light Bulb Rule's disclosure requirements of 
light output, wattage, and life for general service incandescent light 
bulbs are unnecessary because of the uniform disclosure requirements 
for various types of competing lamp products in the Appliance Labeling 
Rule.21 They recommend that the Commission repeal the Light Bulb 
Rule's disclosure requirements to avoid conflicts, multiple and 
overlapping requirements, and inconsistencies with the disclosure 
requirements of the Appliance Labeling Rule.

    \21\ Philips, #7; GE, #8; and NEMA, #9.
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    GE recommends that the Commission repeal the entire Light Bulb 
Rule.22 It believes the Appliance Labeling Rule's requirements are 
better for today's modern products and consumers' information needs, 
and for advancing the energy efficiency goals of our modern day 
workplace. According to GE, retaining the Light Bulb Rule, in addition 
to the Appliance Labeling Rule, is inefficient and exposes 
manufacturers to a significant risk that they may fail to comply with 
both sets of Rules. Further, although the Light Bulb Rule requires that 
light bulbs be marked clearly and conspicuously with wattage and design 
voltage and the Appliance Labeling Rule does not, GE believes that such 
marking is a common industry practice that would not be affected by the 
rescission of the Light Bulb Rule. It states that this is a ``sound 
business practice that reduces liability and gives consumers important 
information.'' Accordingly, GE marks many products that are not covered 
by the Light Bulb Rule with wattage, and, as appropriate, with design 
voltage.

    \22\ GE, #8.
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    NEMA states that lamp product manufacturers should be subject to 
only one set of lamp labeling and disclosure regulations, which would 
ensure uniform disclosures of lamp product performance information to 
consumers. NEMA believes that the Appliance Labeling Rule represents 
the more comprehensive and modern approach to lamp labeling and that 
the disclosures required under the Appliance Labeling Rule fully and 
fairly inform consumers about lamp product performance.23 It 
believes that the objectives of the Light Bulb Rule are fully served by 
the disclosures required by the Appliance Labeling Rule. For these 
reasons, NEMA recommends that the Commission repeal the Light Bulb Rule 
and retain the Appliance Labeling Rule as the sole federal labeling and 
disclosure requirements for lamp products.

    \23\ NEMA, #9.
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    NEMA also believes that repealing the Light Bulb Rule would not 
induce manufacturers to abandon their practice of inscribing wattage 
and design voltage on incandescent lamps and wattage on fluorescent 
lamps. NEMA states that manufacturers routinely mark their general 
service incandescent and fluorescent lamps, even those for which such 
marking is not required under federal labeling rules. Further, NEMA 
states that an international safety standard issued by the 
International Electrotechnical Commission (``IEC'') (IEC 432-1, 1993) 
requires marking of wattage and voltage on general service incandescent 
lamps. NEMA, therefore, believes that manufacturers generally would 
continue the marking practices required by the Light Bulb Rule, even if 
the Commission repealed the Rule.
    Philips strongly supports NEMA's position. Philips, however, also 
states that the best alternative would be for the Commission to repeal 
the Light Bulb Rule, and to modify the Appliance Labeling Rule to 
include the requirements of paragraph 409.1(c) (which requires 
disclosures in connection with product comparison claims about lamp 
cost or cost of light), but without requiring disclosure of the lamp 
cost or cost of replacement, and paragraph 409.1(d) (which requires 
disclosures in connection with claims that a light bulb will give more 
light, maintain brightness longer or furnish longer life) of the Light 
Bulb Rule.24 Philips believes that adding these disclosure 
requirements would strengthen the Appliance Labeling Rule.

    \24\ Philips, #7.
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B. Current Need for the Light Bulb Rule

    The Commission has compared the requirements of the Light Bulb Rule 
and the Appliance Labeling Rule, analyzed the bases for both Rules 
explained in the Light Bulb Rule SBP and the Appliance Labeling Rule/
Lamps SBP, and reviewed the comments filed in response to the request 
for comments in the regulatory review of the Light Bulb Rule. The 
requirements of the two Rules fall into three categories: (1) basic 
disclosures of performance information (light output, watts, and life); 
(2) substantiation based on testing for these disclosures; and (3) 
additional disclosures that must be made in conjunction with certain 
performance claims. Based on the Commission's comparison, analysis, and 
review, the Commission believes there may not be a continuing need for 
the Light Bulb Rule and proposes repealing the Rule for the following 
reasons.
    First, the requirements in the Light Bulb Rule that the basic 
disclosures of light output, watts, and life be made on package labels 
may be unnecessary because they are duplicated by the Appliance 
Labeling Rule. The Appliance Labeling Rule requires that this 
information also be disclosed in catalogs from which the products can 
be ordered. Further, it requires that these disclosures be made on 
labels and in catalogs for competing medium screw base compact 
fluorescent lamps and incandescent reflector lamps, as well as for 
light bulbs covered by the Light Bulb Rule. These disclosures, in 
conjunction with the required advisory statement about how consumers 
can select the most energy-efficient lamp that meets their needs, will 
give consumers the information they need at the point of sale to select 
the appropriate lamp product.25

    \25\ In addition, the Appliance Labeling Rule's format 
requirements for the disclosure of basic performance data on labels 
and in catalogs obviate the need for the specific type size and 
placement requirements of the Light Bulb Rule for package labels.
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    Second, the requirement in the Light Bulb Rule that manufacturers 
mark bulbs with wattage and voltage information appears to be 
unnecessary. According to the comments, currently manufacturers 
voluntarily mark various types of lamp products with wattage and design 
voltage information so that consumers can use these lamp products 
safely. The Commission believes that the marketplace would provide 
incentives for manufacturers to continue marking this information on 
lamp products, even if the Commission repealed the Light Bulb Rule. The 
Commission, however, is particularly interested in receiving public 
comments concerning the continuing need for the requirement that 
manufacturers mark light bulbs with wattage and design voltage 
information, along with additional information regarding the 

[[Page 4387]]
specific requirements of IEC international safety standard (IEC 432-1, 
1993) and its application.
    Third, the Light Bulb Rule's substantiation requirements may be 
unnecessary because these requirements are duplicated in the Appliance 
Labeling Rule. The requirement in the Appliance Labeling Rule that the 
basic disclosures be based on ``a reasonable basis consisting of 
competent and reliable scientific tests substantiating the 
representation'' is sufficient to ensure the accuracy and uniformity of 
the disclosures for competing lamp products. Further, based on the 
evidence in the rulemaking proceeding for the Appliance Labeling Rule, 
it appears that the test protocols required by the Light Bulb Rule are 
consistent with IES test protocols that the Appliance Labeling Rule 
recognizes as sufficient to satisfy its reasonable basis standard for 
the disclosures of light output and life.26 However, the Appliance 
Labeling Rule provides manufacturers flexibility to use other 
scientific test protocols if they are competent and reliable.

    \26\ 59 FR at 25200 n. 251.
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    Fourth, the Light Bulb Rule requires that labels, ads, and other 
promotional materials that make comparison claims about savings in 
light bulb cost or cost of operation,27 or claims that a light 
bulb will give more light, maintain brightness longer, or furnish 
longer life,28 also include certain disclosures about the 
advertised light bulb and the bulb to which it is compared. The 
disclosures may be unnecessary or inappropriate, for the following 
reasons:

    \27\ See Part I.B, supra.
    \28\ Id.
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    (1) Under the Appliance Labeling Rule, light output and life 
information must be disclosed in labels and catalogs even if the Light 
Bulb Rule is repealed. The Appliance Labeling Rule requires that labels 
and catalogs for incandescent ``A'' type bulbs, as well as for 
competing medium screw base compact fluorescent lamps and incandescent 
reflector lamps, disclose light output, wattage, and life, along with 
an advisory statement about how the consumer can select the lamp 
product that will cost the least to operate for a specific light 
output. This information enables consumers to evaluate comparison light 
output and lifetime claims for competing products at the point of sale 
and to select the appropriate lamp that meets their needs.
    (2) Under the Appliance Labeling Rule, claims about cost of 
operation of a covered lamp product in labels, point-of-sale printed 
materials, and catalogs must be accompanied by disclosures of the 
assumptions on which the claims are based (e.g., purchase price, unit 
cost of electricity, hours of use, patterns of use). These disclosures, 
along with the advisory statement and the disclosures of light output, 
wattage, and life, for competing lamp products on product labels and in 
catalogs give consumers the information they need at the point of 
purchase to evaluate comparison claims about savings in cost of 
operation.
    (3) Purchase price information is readily available to consumers at 
the point of sale (both in retail stores and in catalogs). Thus, 
consumers have information at the point of sale to evaluate comparison 
claims about lamp product purchase costs.
    (4) Unit electrical cost information is readily available to 
consumers on their monthly electric utility bills or from their 
electrical utility companies. Consumers can use this information, along 
with the advisory statement and the disclosures of basic performance 
information on packages and catalogs, to evaluate any comparison 
operating cost claims.
    The Appliance Labeling Rule does not contain a disclosure 
requirement similar to the Light Bulb Rule covering claims that a light 
bulb will maintain brightness longer. It also does not require that 
disclosures about product comparison claims be made in advertisements 
or promotional materials other than labels, point-of-sale printed 
materials, or catalogs. The Commission does not currently have 
information about the occurrence of brightness claims and whether the 
Light Bulb Rule's requirements continue to be important. In addition, 
the Commission does not presently have information to evaluate how 
extensively product comparison claims are made in advertisements and 
other promotional materials not covered by the Appliance Labeling Rule. 
Thus, the significance of repealing these portions of the Light Bulb 
Rule is unclear, and the Commission is particularly interested in 
comments about the continued need for these requirements.
    Repealing these Light Bulb Rule disclosure requirements would 
prevent the Commission from obtaining civil penalties for the failure 
to make these disclosures. But, the Commission believes it would not 
seriously impair the Commission's ability to act effectively. The 
Commission could address any significant problems that might arise 
concerning specific performance claims or a failure to disclose 
material purchase information on a case-by-case basis, 
administratively, under section 5 of the FTC Act, 15 U.S.C. 45, or 
through section 13(b) actions, 15 U.S.C. 53(b), filed in federal 
district court. Prosecuting serious misrepresentations and the failure 
to disclose material information in district court allows the 
Commission to obtain injunctive relief as well as equitable remedies, 
such as redress or disgorgement.

III. Rulemaking Procedures

    The Commission finds that the public interest will be served by 
using expedited procedures in this proceeding. First, there do not 
appear to be any material issues of disputed fact that are necessary 
for the Commission to resolve in determining whether to repeal the 
Rule. Second, the use of expedited procedures will support the 
Commission's goal of eliminating obsolete or unnecessary regulations 
without an undue expenditure of resources, while ensuring that the 
public has an opportunity to submit data, views and arguments on 
whether the Commission should repeal the Rule.
    The Commission, therefore, has determined, pursuant to 16 CFR 1.20, 
to use the procedures set forth in this notice. These procedures 
include: (1) publishing this Notice of Proposed Rulemaking; (2) 
soliciting written comments on the Commission's proposal to repeal the 
Rule; (3) holding an informal hearing, if requested by interested 
parties; (4) obtaining a final recommendation from staff; and (5) 
announcing final Commission action in a document published in the 
Federal Register.

IV. Request for Comments

    Interested persons are requested to submit written data, views or 
arguments on any issue of fact, law or policy they believe may be 
relevant to the Commission's decision on whether it should repeal the 
Light Bulb Rule in its entirety, or, as an alternative, whether it 
should repeal those portions that are duplicated by the Appliance 
Labeling Rule and retain some or all of the remaining provisions. The 
Commission requests that commenters provide representative factual data 
in support of their comments. Individual firms' experiences are 
relevant to the extent they typify industry experience in general or 
the experience of similar-sized firms. Comments opposing the proposed 
repeal of the Rule should explain the reasons they believe the Rule is 
still needed and, if appropriate, suggest specific alternatives. 
Proposals for alternative requirements should include reasons and data 
that indicate why the alternatives would better protect consumers from 
unfair or 

[[Page 4388]]
deceptive acts or practices under section 5 of the FTC Act, 15 U.S.C. 
45. 
    Below, the Commission identifies specific questions for which it 
solicits public comment. The questions are designed to assist the 
public and should not be construed as limiting the issues on which 
public comment may be submitted. All written comments should state 
clearly the question or issue that the commenter is addressing. The 
Commission has placed the comments submitted in response to the April 
6, 1995, notice on the public record of this proceeding. Commenters 
whose views have not changed and who wish to rely on their previous 
comments may do so and need not file an additional comment at this 
time. Previous commenters who have additional information or views, 
however, may wish to submit a comment in response to this notice.
    Before taking final action, the Commission will consider all 
written comments timely submitted to the Secretary of the Commission 
and testimony given on the record at any hearings scheduled in response 
to requests to testify. Written comments submitted will be available 
for public inspection in accordance with the Freedom of Information 
Act, 5 U.S.C. 552, and Commission regulations, on normal business days 
between the hours of 8:30 a.m. to 5:00 p.m. at the Federal Trade 
Commission, Public Reference Room, Room H-130, Federal Trade 
Commission, Sixth Street and Pennsylvania Avenue, NW., Washington, DC 
20580, telephone number 202/326-2222.

Questions for Comment

    (1) In what manner and to what extent would repealing the Light 
Bulb Rule affect the specific benefits consumers or other purchasers 
derive from the Light Bulb Rule beyond the benefits they derive from 
the Appliance Labeling Rule?
    (2) In what manner and to what extent would repealing the Light 
Bulb Rule affect or relieve the specific burdens experienced by 
manufacturers or other sellers that are due to the Light Bulb Rule 
beyond any burdens or costs that are incurred in complying with the 
Appliance Labeling Rule?
    (3) Are there any other federal or state laws or regulations, or 
private industry standards, in addition to the Appliance Labeling Rule, 
that apply to the labeling, testing, or advertising of lamp products 
covered by the Light Bulb Rule?
    (a) If so, what are those federal or state laws or regulations, or 
private industry standards, and what do they require?
    (b) If so, to whom do they apply?
    (4) Are there any current federal, state, or local laws or 
regulations, or private industry standards, in addition to the Light 
Bulb Rule, that require lamp products to be marked with wattage or 
voltage information?
    (a) If so, what are these federal, state, or local laws or 
regulations, or private industry standards, and what specific markings 
do they require?
    (b) If so, to whom do they apply?
    (5) Do manufacturers or other sellers currently make comparison 
claims about lamp product cost, cost of light, cost of operation, 
amount of light, brightness, or length of life?
    (a) If so, who currently makes these claims?
    (b) If so, what claims and disclosures do they make?
    (c) If so, what medium (e.g., advertisements, point-of-sale printed 
materials) do they use in making these claims and disclosures?
    (d) If so, are the comparisons valid ones?

V. Requests for Public Hearings

    Because there does not appear to be any dispute as to the material 
facts or issues raised by this proceeding and because written comments 
appear adequate to present the views of all interested parties, a 
public hearing has not been scheduled. If any person would like the 
Commission to schedule public hearings, he or she should address a 
request to present oral testimony to the Office of the Secretary, 
Federal Trade Commission, Room H-159, Sixth Street and Pennsylvania 
Avenue, NW., Washington, DC 20580, telephone number 202-326-2506, as 
soon as possible but not later than March 7, 1996. All persons wishing 
to testify also must submit, on or before March 7, 1996, a written 
comment or statement that describes the issues on which the party 
wishes to testify and the nature of the testimony to be given.

VI. Preliminary Regulatory Analysis

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-11, requires 
an analysis of the anticipated impact of the proposed repeal of the 
Rule on small businesses.29 The analysis must contain, as 
applicable, a description of the reasons why action is being 
considered, the objectives of and legal basis for the proposed action, 
the class and number of small entities affected, the projected 
reporting, recordkeeping and other compliance requirements being 
proposed, any existing federal rules that may duplicate, overlap or 
conflict with the proposed action, and any significant alternatives to 
the proposed action that accomplish its objectives and, at the same 
time, minimize its impact on small entities.

    \29\ Section 22 of the FTC Act, 15 U.S.C. 57b-3, also requires 
the Commission to perform ``regulatory impact analyses'' of a 
proposed rule, but only if the rule will have certain 
``significant'' economic or regulatory effects. The Commission has 
determined that a preliminary regulatory analysis is not required by 
section 22 in this proceeding because the Commission has no reason 
to believe that repealing the Rule will have a ``significant'' 
economic or regulatory impact, either beneficial or detrimental, 
upon persons subject to the Rule or upon consumers.
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    A description of the reasons why action is being considered and the 
objectives of the proposed repeal of the Rule have been explained 
elsewhere in this Notice. Repeal of the Rule would appear to have 
little or no effect on any small business. The Commission is not aware 
of any existing federal laws or regulations that would conflict with 
repeal of the Rule.
    For these reasons, the Commission certifies, pursuant to section 
605 of RFA, 5 U.S.C. 605, that if the Commission determines to repeal 
the Rule that action will not have a significant impact on a 
substantial number of small entities. To ensure that no substantial 
economic impact is being overlooked, however, the Commission requests 
comments on this issue. After reviewing any comments received, the 
Commission will determine whether it is necessary to prepare a final 
regulatory flexibility analysis.

VII. Paperwork Reduction Act

    The Light Bulb Rule imposes third-party disclosure requirements, 
which are described in Part I.B, above, that constitute ``information 
collection requirements'' under the Paperwork Reduction Act (``PRA''), 
44 U.S.C. 3501 et seq. Accordingly, repeal of the Rule would eliminate 
any burdens on the public imposed by these disclosure requirements that 
are not duplicated by the Appliance Labeling Rule.

VIII. Additional Information for Interested Persons

A. Motions or Petitions

    Any motions or petitions in connection with this proceeding must be 
filed with the Secretary of the Commission.

B. Communications by Outside Parties to Commissioners or Their Advisors

    Pursuant to Rule 1.18(c) of the Commission's Rules of Practice, 16 
CFR 1.18(c), communications with respect to the merits of this 
proceeding from any outside party to any Commissioner or Commissioner's 
advisor during the course of this rulemaking shall be 

[[Page 4389]]
subject to the following treatment. Written communications, including 
written communications from members of Congress, shall be forwarded 
promptly to the Secretary for placement on the public record. Oral 
communications, not including oral communications from members of 
Congress, are permitted only when such oral communications are 
transcribed verbatim or summarized at the discretion of the 
Commissioner or Commissioner's advisor to whom such oral communications 
are made, and are promptly placed on the public record, together with 
any written communications relating to such oral communications. 
Memoranda prepared by a Commissioner or Commissioner's advisor setting 
forth the contents of any oral communications from members of Congress 
shall be placed promptly on the public record. If the communication 
with a member of Congress is transcribed verbatim or summarized, the 
transcript or summary will be placed promptly on the public record.

    Authority: Section 18 of the Federal Trade Commission Act, 15 
U.S.C. 57a.

List of Subjects in 16 CFR Part 405

    Advertising, Consumer protection, Energy conservation, Labeling, 
Lamp products, Trade practices.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-2431 Filed 2-5-96; 8:45 am]
BILLING CODE 6750-01-P