[Federal Register Volume 61, Number 125 (Thursday, June 27, 1996)]
[Rules and Regulations]
[Pages 33308-33313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16301]


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FEDERAL TRADE COMMISSION

16 CFR Part 409


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

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

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SUMMARY: The Federal Trade Commission (``Commission'' or ``FTC'') 
announces the repeal of the Trade Regulation Rule Concerning the 
Incandescent Lamp (Light Bulb) Industry (``Light Bulb Rule'' or 
``Rule''). The Commission has reviewed the rulemaking record and 
determined that, because of more comprehensive lamp labeling rules that 
the Commission promulgated in 1994 under the Energy Policy and 
Conservation Act, as amended by the Energy Policy Act of 1992, and 
current industry light bulb marking practices, the Light Bulb Rule is 
no longer necessary or in the public interest. This notice contains a 
Statement of Basis and Purpose for repealing the Light Bulb Rule.

EFFECTIVE DATE: June 27, 1996.

FOR FURTHER INFORMATION CONTACT: Kent C. Howerton, Attorney, Federal 
Trade Commission, Bureau of Consumer Protection, Division of 
Enforcement, Room S-4302, 601 Pennsylvania Avenue, NW, Washington, DC 
20580, telephone (202) 326-3013.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

    The Commission undertook this rulemaking proceeding as part of the 
Commission's ongoing program of evaluating rules and 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.
A. Light Bulb Rule
    The Commission promulgated the Light Bulb Rule on July 23, 1970, 
following a public rulemaking proceeding.1 The Light Bulb Rule 
became effective on January 25, 1971. It applies only to non-reflector 
general service incandescent electric lamps (commonly referred to as 
``light bulbs'').2
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    \1\ Final Rule and Statement of Basis and Purpose (``Light Bulb 
Rule SBP''), 35 FR 11784 (1970).
    \2\ The Light Bulb 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 note 3 
(1996). 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 lighting products in general. 
In this notice, the term ``light bulb'' refers only to those lamp 
products covered by the Light Bulb Rule.
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    In summary, the Light Bulb 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) (1996);
    (2) fail to disclose clearly and conspicuously on the bulbs 
themselves their average initial wattage and design voltage, Id. at 
409.1(b) (1996); 3
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    \3\ 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

[[Page 33309]]

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) (1996); 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) (1996).

    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.
B. Appliance Labeling Rule
    In 1994, pursuant to a directive of the Energy Policy Act of 1992 
(``EPA 92''),4 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 (1996), to 
specify new labeling requirements for lamp products.5 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).
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    \4\ 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.
    \5\ Final Rule and Statement of Basis and Purpose (``Appliance 
Labeling Rule/Lamps SBP''), 59 FR 25176 (May 13, 1994). The lamp 
labeling requirements of the Appliance Labeling Rule became 
effective on May 15, 1995. In response to a petition from the Lamp 
Section of the National Electrical Manufacturers Association 
(``NEMA''), and because of 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 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 305.03(m) (1996), 
medium screw base compact fluorescent lamps, Id. at 305.03(l) (1996), 
and general service fluorescent lamps, Id. at 305.03(k) (1996). 
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) (1996). 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). 16 CFR 
305.11(e)(1)(iii) (1996). 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.6
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    \6\ 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: XX Lumens; Energy Used: XX Watts; Life: XX Hours'') on 
the label's principal display panel. 16 CFR 305.11(e)(1)(ii) (1996). 
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 note 4 (1996).
    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) (1996). 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 other disclosures 
be approximately 50% as large. The Light Bulb Rule specifies that both 
the lumens and hours rating disclosures be in a medium-face 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 note 4 (1996). The Light Bulb Rule 
also includes similar type size and style requirements for the 
disclosures for multiple filament (three-way) light bulbs. Id.
    The Appliance Labeling Rule specifies two additional disclosures 
that are not required by the Light Bulb Rule. First, the following 
advisory statement must appear on the principal display panel of the 
package label: ``To save energy costs, find the bulbs with the light 
output you need, then choose the one with the lowest watts.'' 7 16 
CFR 305.11(e)(1)(vi) (1996). 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.'' Id. at 305.11(e)(4) (1996).
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    \7\ Manufacturers of incandescent reflector lamps may use the 
following alternative advisory disclosure: ``To save energy costs, 
find the bulbs with the beam spread and light output you need, then 
choose the one with the lowest watts.''
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    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.8 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

[[Page 33310]]

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,9 or testing in accordance with final 
test procedures issued by the U.S. Department of Energy.10
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    \8\ 16 CFR 409.1 note 1 (1996). 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) (1996), as an acceptable 
reasonable basis for determining the light output and life of 
incandescent light bulbs. 59 FR at 25200 n.251.
    \9\ 16 CFR 305.5(b) (1996). See also, supra note 8.
    \10\ 59 FR at 25200.
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    Both the Light Bulb Rule and the Appliance Labeling Rule contain 
provisions concerning certain affirmative claims about lamp products. 
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) 
(1996). These Appliance Labeling Rule disclosure requirements do not 
apply to such claims made in other promotional materials, such as 
advertisements.
    The Light Bulb Rule covers 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 also covers 
comparative brightness, light bulb life, and light output claims. The 
Light Bulb Rule specifies 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) 
(1996). The Light Bulb Rule's requirements apply to such claims in all 
types of advertising, as well as on labels, point-of-sale printed 
materials, and catalogs. The Appliance Labeling Rule does not include 
disclosure requirements concerning these comparative claims.
    The Light Bulb Rule requires that light bulbs themselves be marked 
clearly and conspicuously with wattage and design voltage. 16 CFR 
409.1(b) (1996). The Appliance Labeling Rule does not require that lamp 
products be marked with such information.

II. Proceeding To Consider Repeal of Light Bulb Rule

    When the Commission issued the lamp labeling amendments to the 
Appliance Labeling Rule, it announced that, although there were no 
conflicts between the two rules, it would decide following that 
amendment proceeding what further action, if any, it should take 
concerning the Light Bulb Rule. 59 FR at 25177.
A. Advance Notice of Proposed Rulemaking
    Accordingly, on April 6, 1995, the Commission published a notice 
(``Advance Notice of Proposed Rulemaking'' or ``ANPR'') 11 
requesting comments concerning the current need for the Light Bulb Rule 
as part of the Commission's regulatory review program for all of its 
rules and guides, and in light of the new lamp labeling rules under the 
Appliance Labeling Rule.12 The ANPR solicited comments about the 
benefits and burdens of the Light Bulb Rule to consumers and industry, 
and whether a need still exists for the Light Bulb Rule.
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    \11\ Under section 18(b)(2) of the Federal Trade Commission Act 
(``FTC Act''), 15 U.S.C. 57a(b)(2), the Commission must publish an 
ANPR prior to initiating a proceeding to promulgate, amend, or 
repeal a trade regulation rule. The Commission determined to treat 
the April 6, 1995, request for comments as an ANPR because it 
contained all the elements that section 18(b)(2) requires in an 
ANPR. To comply with section 18, the Commission 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.
    \12\ 60 FR 17491. See supra note 11. The comment period for this 
notice was scheduled to end on June 6, 1995, but was extended until 
August 7, 1995, at the request of industry members.
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    The Commission received nine comments in response to the 
ANPR.13 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.14
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    \13\ Anderson, #B17240700001; Raeth, #B17240700002; Bowe, 
#B17240700003; McGarry, #B17240700004; Hytron Electric Products, a 
division of Trojan Inc. (``Hytron''), #B17240700005; Delta Phi 
Epsilon, Washington, DC, #B17240700006 (``DPE''); Philips Lighting, 
Philips Elmet, a division of North American Philips Corp. 
(``Philips''), #B17240700007; GE Lighting, General Electric Co. 
(``GE''), #B17240700008; and Lamp Section, NEMA, #B17240700009. The 
ANPR is filed as document number B172407. The comments submitted in 
response to the ANPR are filed as documents #B17240700001, 
#B17240700002, etc.
    \14\ 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 Co., Supreme Corp., Venture Lighting Internat'l, Duro-Test 
Corp. and EYE Lighting International. NEMA, #B17240700009.
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    The four individual consumer comments state that the Light Bulb 
Rule is still needed because the disclosures required by the rule help 
consumers make informed purchasing decisions.15 They want labels 
to continue to disclose light output, wattage, and life information. 
These comments do not address whether the overlapping requirements of 
the Appliance Labeling Rule will ensure that labels 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.16
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    \15\ Anderson, #B17240700001 (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); Raeth, #B17240700002 (eliminating the rule would 
be a great disservice to the consumer, who would not know the value 
of what he or she was purchasing); Bowe, #B17240700003 (maintain 
rule requiring packages to show wattage, lumens, and bulb life; 
consumers have a right to know what they are buying); and McGarry, 
#B17240700004 (do not weaken the labeling requirements; uses 
information to make comparative decisions when purchasing).
    \16\ DPE, #B17240700006.
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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 Labeling 
Rule.17 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.18
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    \17\ Hytron, #B17240700005.
    \18\ 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 (NEMA) 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.19 They recommend that the

[[Page 33311]]

Commission repeal all or most of the Light Bulb Rule to avoid 
conflicts, multiple and overlapping requirements, and inconsistencies 
with the disclosure requirements of the Appliance Labeling Rule.
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    \19\ Philips, #B17240700007; GE, #B17240700008; and NEMA, 
#B17240700009.
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    GE recommends that the Commission repeal the entire Light Bulb 
Rule.20 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 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.
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    \20\ GE, #B17240700008.
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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.21 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.
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    \21\ NEMA, #B17240700009.
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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 some of the disclosure requirements of Section 409.1(c) (which 
requires disclosures in connection with product comparison claims about 
lamp cost or cost of light), and Section 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.22 Philips believes that adding these disclosure 
requirements would strengthen the Appliance Labeling Rule.
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    \22\ Philips, #B17240700007.
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B. Notice of Proposed Rulemaking
    The Commission 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 Light 
Bulb Rule ANPR. Based on that comparison and review, the Commission 
solicited comments in a Notice of Proposed Rulemaking (``NPR'') that 
proposed repealing the Light Bulb Rule.23 In the NPR, the 
Commission explained that the requirements of the two rules fall into 
three categories: (1) basic disclosures of performance information 
(e.g., light output, watts, and life); (2) substantiation testing for 
these disclosures; and (3) additional disclosures that must be made in 
conjunction with certain performance claims. The Commission also 
summarized the comments submitted in response to the ANPR and explained 
why the Commission believed there may not be a continuing need for the 
Light Bulb Rule's requirements.
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    \23\ 61 FR 4382 (Feb. 6, 1996). The NPR is filed as document 
number B193867. The comments submitted in response to the NPR are 
filed as documents #B19386700001, #B19386700002, etc. The comment 
period closed on March 7, 1996.
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    The Commission received five comments in response to the NPR (two 
from manufacturers, two from distributors, and an additional comment 
from NEMA).24 Four comments support repealing the Light Bulb 
Rule.25 One comment recommends that the Commission repeal the lamp 
labeling rules under the Appliance Labeling Rule.26
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    \24\ In the NPR, the Commission indicated it would hold a 
hearing to allow for the presentation of testimony on the issues, if 
there was interest in a hearing. NEMA and GE requested an 
opportunity to testify, but only if the Commission scheduled a 
hearing because other parties requested one. NEMA, #B19386700004; 
GE, #B191281, letters of March 7 and 14, 1996. Following the end of 
the comment period, both NEMA and GE informed the Commission's staff 
that they did not wish to testify because no additional parties 
requested that the Commission conduct a hearing.
    \25\ Supreme, #B19386700001; Robert M. Stone, Regosin, Edwards, 
Stone & Feder (``Stone''), #B19386700002; Marvel Lighting Corp. 
(``Marvel''), #B19386700003; NEMA, #B19386700004.
    \26\ Sigmatron Biological Systems (``Sigmatron''), 
#B19386700005. Because EPCA required the Commission to promulgate 
the lamp labeling rules it adopted in the Appliance Labeling Rule, 
the Commission does not have the authority to repeal those 
requirements in favor of retaining the Light Bulb Rule. See also, 
supra note 18.
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    Supreme states that the new lamp labeling rules under the Appliance 
Labeling Rule will provide users with the information they need to 
understand what type of light bulb is in the package they are 
purchasing. Supreme also states that its distributors are confused by 
the amount of information on packages due to the requirements of both 
rules and that it continuously must seek expensive legal advice about 
how to prepare artwork and design to comply with both rules.27 
Stone and Marvel request that the Commission repeal the Light Bulb Rule 
because the overlapping requirements create confusion and 
duplication.28
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    \27\ Supreme, #B19386700001.
    \28\ Stone, #B19386700002; Marvel, #B19386700003.
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    NEMA states it supports repeal of the Light Bulb Rule and believes 
that consumers' need for information is fully served by the disclosure 
and substantiation requirements of the Appliance Labeling Rule.29 
NEMA also addresses several specific issues the Commission raised in 
the NPR. First, NEMA believes that because of the importance of safety 
information to consumers (and to minimize their product liability) 
manufacturers will continue marking wattage and design voltage on lamps 
notwithstanding the repeal of the Light Bulb Rule. Second, NEMA 
believes that the Light Bulb Rule's required disclosures relating to a 
lamp's brightness are unnecessary because the Appliance Labeling Rule's 
standardized, side-by-side disclosures of light output and life nullify 
any attempts to mislead consumers about a

[[Page 33312]]

product's maintaining brightness better than competing products. Third, 
NEMA believes that the Appliance Labeling Rule's standardized labeling 
disclosure requirements, along with its requirement that packaging 
representations about the cost of operating a lamp be based on 
assumptions that are clearly and conspicuously disclosed, provide 
adequate information for consumers to evaluate comparative performance 
claims.30 NEMA also states that repealing the Light Bulb Rule, and 
relying exclusively on the Appliance Labeling Rule, will eliminate 
overlaps and inconsistencies, confer benefits on consumers through 
standardized package disclosures, and result in significant cost 
savings for both manufacturers and consumers.
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    \29\ NEMA, #B19386700004.
    \30\ Further, NEMA states that the Appliance Labeling Rule's 
labeling disclosures for competing lamp products make identification 
of a comparison lamp under the Light Bulb Rule superfluous, and make 
it unrealistic for a manufacturer or marketer to misrepresent or 
distort a lamp's comparative performance in advertising and other 
media, as well as on labels, point-of-sale promotional materials, 
and catalogs. Id.
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III. Basis for Repeal of the Light Bulb Rule

    The Commission has compared the requirements of the Light Bulb Rule 
and the Appliance Labeling Rule and reviewed the comments filed in 
response to the Light Bulb Rule ANPR and NPR. For the reasons explained 
below, the Commission concludes that the Light Bulb Rule is no longer 
necessary or in the public interest.
    First, the requirements in the Light Bulb Rule that the basic 
disclosures of light output, watts, and life be made on package labels 
are 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, give consumers the information 
they need at the point of sale to select the appropriate lamp 
product.31
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    \31\ In addition, the Appliance Labeling Rule's format 
requirements for the disclosure of basic performance data on labels 
and in catalogs, 16 CFR 305.11(e)(1)(ii), 305.14(c)(1) (1996), 
obviate the need for the specific type size and placement 
requirements of the Light Bulb Rule for package labels, 16 CFR 
409.1(a), 409.1 note 4 (1996).
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    Second, the requirement in the Light Bulb Rule that manufacturers 
mark bulbs with wattage and voltage information is unnecessary. 
According to the comments, manufacturers currently mark various types 
of lamp products voluntarily with wattage and design voltage 
information so that consumers can use these lamp products safely. The 
Commission believes that the marketplace will provide incentives for 
manufacturers to continue marking this information on lamp products, 
even after the Commission has repealed the Light Bulb Rule.
    Third, the Light Bulb Rule's substantiation requirements are 
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.32 However, the Appliance 
Labeling Rule provides manufacturers flexibility to use other 
scientific test protocols if they are competent and reliable.
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    \32\ 59 FR 25200.
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    Fourth, the Light Bulb Rule's disclosure requirements for 
comparison claims about savings in light bulb cost or cost of 
operation, or claims that a light bulb will give more light, maintain 
brightness longer, or furnish longer life are unnecessary. Through 
different disclosure requirements the Appliance Labeling Rule allows 
consumers to make informed, comparative decisions relating to costs. 
Specifically:
    (1) The Appliance Labeling Rule requires disclosure of light output 
and life information in labels and catalogs. It 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.
    Although the Appliance Labeling Rule does not contain disclosure 
requirements similar to the Light Bulb Rule covering comparative claims 
about brightness, length of life, or amount of light, the Commission 
concludes that the Appliance Labeling Rule's requirements provide 
consumers comparable information. The Appliance Labeling Rule's 
requirements that labels disclose light output, energy used, and life, 
and that labels, point-of-sale promotional materials, and catalogs that 
contain a claim regarding cost of operation clearly and conspicuously 
disclose the assumptions upon which the claim is based, provide 
consumers comparable information they need to evaluate such claims and 
make informed purchasing decisions. Further, the Commission can address 
any significant problems that might arise in the future concerning 
specific performance claims or a failure to disclose material purchase 
information not covered by the Appliance Labeling Rule 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

[[Page 33313]]

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.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-11, requires 
an analysis of the anticipated impact of the repeal of the Light Bulb 
Rule on small businesses. The reasons for repeal of the rule have been 
explained in this notice. Repeal of the Light Bulb Rule would appear to 
have little or no effect on small businesses. Moreover, the Commission 
is not aware of any existing federal laws or regulations that would 
conflict with repeal of the Light Bulb Rule. Further, no comments 
suggested any adverse effect on small business from repeal. For these 
reasons, the Commission certifies, pursuant to Section 605 of the RFA, 
5 U.S.C. 605, that this action will not have a significant economic 
impact on a substantial number of small entities.

V. Paperwork Reduction Act

    The Light Bulb Rule imposes third-party disclosure requirements 
that constitute ``information collection requirements'' under the 
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Accordingly, repeal of 
the Light Bulb Rule will eliminate any burdens imposed by these 
disclosure requirements.

List of Subjects in 16 CFR Part 409

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

PART 409--[REMOVED]

    The Commission, under authority of Section 18 of the Federal Trade 
Commission Act, 15 U.S.C. 57a, amends chapter I of Title 16 of the Code 
of Federal Regulations by removing Part 409.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-16301 Filed 6-26-96; 8:45 am]
BILLING CODE 6750-01-P