[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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repealed.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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
(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).
---------------------------------------------------------------------------
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.''
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
(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.
---------------------------------------------------------------------------
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