[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Proposed Rules]
[Pages 16500-16502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8795]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Proposed
Rules
[[Page 16500]]
FEDERAL TRADE COMMISSION
16 CFR Part 432
Request for Comments Concerning Rule Relating To Power Output
Claims for Amplifiers Utilized in Home Entertainment Products
AGENCY: Federal Trade Commission.
ACTION: Request for public comments.
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SUMMARY: The Federal Trade Commission (``Commission'') is requesting
public comments on its Rule relating to Power Output claims for
Amplifiers Utilized in Home Entertainment Products (``Amplifier Rule''
or ``Rule''). The Commission, as a part of its systematic review of all
current Commission regulations and guides, is requesting comments about
the overall costs and benefits of the Rule and its overall regulatory
and economic impact. The Commission further seeks information about
whether certain requirements of the Rule should be modified in light of
technological and other changed circumstances. Lastly, the Commission
requests information about issues involving amplified sound systems
such as powered speakers for home computers and other home sound
systems and sound amplifiers utilized in automobile entertainment
products.
DATES: Written comments will be accepted until June 6, 1997.
ADDRESSES: Comments should be directed to: Secretary, Federal Trade
Commission, Room H-159, Sixth and Pennsylvania Ave., NW., Washington,
DC 20580. Comments about the Amplifier Rule should be identified ``16
CFR Part 432--Comments.''
FOR FURTHER INFORMATION CONTACT: Robert E. Easton, Esq., Special
Assistant, Division of Enforcement, Bureau of Consumer Protection,
(202) 326-3029 or Dennis Murphy, Economist, Division of Consumer
Protection, Bureau of Economics, Federal Trade Commission, Washington,
DC 20580, (202) 326-3524.
SUPPLEMENTARY INFORMATION: The Commission has determined, as part of
its oversight responsibilities, to review its rules and guides
periodically. These reviews seek information about the costs and
benefits of the Commission's rules and guides and their regulatory and
economic impact. The reviews also seek information on whether
technological developments impact upon the rules. The information
obtained assists the Commission in identifying rules and guides that
warrant modification or rescission.
A. Background
The Amplifier Rule was promulgated on May 3, 1974 (39 FR 15387), to
assist consumers in purchasing power amplification equipment for home
entertainment purposes by standardizing the measurement and disclosure
of various performance characteristics of the equipment. Prior to the
Rule, sellers were making power, distortion and other performance
claims based on many different technical test procedures, or on no
recognized test procedures. The Rule establishes uniform test standards
and disclosures so that consumers can make more meaningful comparisons
of performance attributes.
The products within the scope of the Rule are defined as:
Sound power amplification equipment manufactured or sold for
home entertainment purposes, such as for example, radios, record and
tape players, radio-phonograph and/or tape combinations, component
audio amplifiers and the like.\1\
\1\ 16 CFR 432.1.
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The Rule makes it an unfair method of competition and an unfair or
deceptive act or practice for manufacturers and sellers of sound power
amplification equipment for home entertainment purposes to fail to
disclose certain performance information in connection with direct or
indirect representations of power output, power band, frequency or
distortion characteristics.\2\
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\2\ Id. at 432.2. The required disclosures relate to: Minimum
sine wave continuous average power output; load impedance in Ohms;
rated power band or frequency response; and rated percentage of
maximum total harmonic distortion.
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These disclosures must be made clearly, conspicuously and more
prominently than any other representation or disclosures.\3\ The Rule
also sets out standard test conditions for performing the measurements
that support the required performance disclosures.\4\ Further, the Rule
prohibits representations of performance characteristics if they are
not obtainable when the equipment is operated by the consumer in the
usual and ordinary manner without the use of extraneous aids,\5\ e.g.,
cooling fans.
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\3\ Id.
\4\ Id. at 432.3.
\5\ Id. at 432.5.
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When the Rule was promulgated in 1974, there were very few self-
amplified (powered) speakers for use with home computers or home
entertainment systems or external amplifiers for home computers used
for home entertainment purposes. In 1997, however, there are numerous
and sophisticated systems of this nature. The Commission has
tentatively determined that while such systems are not specifically
mentioned in the Rule, such amplified (powered) speakers and other
similar sound amplification equipment when used for home entertainment
purposes are within the scope and purpose of the Rule. The Commission
has further tentatively determined that such equipment falls within the
definition used in the Rule and is sufficiently similar to the examples
given in the Rule as to alert manufacturers and sellers of the
coverage. The Commission, however, seeks additional information
concerning its tentative determinations, and addresses several
questions below to these issues.
In 1974, amplified sound systems for automotive use were also in
the formative stages of development. By 1997, such automotive amplified
sound systems achieved a stage of technical sophistication on a par
with many home entertainment sound amplification systems. Advertising
for automotive sound amplification systems in recent years has often
referred to the claimed power output (in watts) of the system using a
variety of terms, including ``Peak Power,'' ``Total Power,'' and
``RMS.'' Because the Commission wishes to learn whether the non-uniform
disclosure of power output is resulting in consumer deception,
confusion, and inability to make informed decisions, the Commission
addresses several questions below to this issue.
[[Page 16501]]
B. Issues for Comment
At this time, the Commission solicits written public comments on
the following questions:
(1) Is there a continuing need for the Rule?
(a) What benefits has the Rule provided to purchasers of the
products or services affected by the Rule?
(b) Has the Rule imposed costs on purchasers?
(2) What changes, if any, should be made to the Rule to increase
the benefits of the Rule to purchasers?
(a) How would these changes affect the costs the Rule imposes on
firms subject to its requirements?
(3) What significant burdens or costs, including costs of
compliance, has the Rule imposed on firms subject to its requirements?
(a) Has the Rule provided benefits to such firms?
(4) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on firms subject to its requirements?
(a) How would these changes affect the benefits provided by the
Rule?
(5) Does the Rule overlap or conflict with other federal, state, or
local laws or regulations?
(6) Since the Rule was issued, what effects, if any, have changes
in relevant technology or economic conditions had on the Rule?
(7) The following questions relate to Sec. 432.3 of the Rule, which
specifies standard test conditions for measuring continuous power:
(a) Are there other widely used protocols for testing continuous
power that could provide a satisfactory alternative to the Sec. 432.2
requirements?
(b) Given the problems that manufactures may experience with the
test specifications in Sec. 432.3(c) requiring that amplifiers be
preconditioned for one hour at one-third power, should there be any
modifications to Sec. 432.3(c)?
(8) The Rule currently requires disclosure of maximum harmonic
distortion, power bandwidth, and impedance whenever a power claim is
made in any advertising, including advertising by retail stores, direct
mail merchants, and manufacturers.
(a) Is there a continued need for the Rule to require disclosure of
maximum rated harmonic distortion in media advertising, or should such
disclosure be required only when maximum rated harmonic distortion
exceeds a specified threshold level, such as one percent?
(b) Should certain types of advertising, such as that commonly used
by retail stores to present information on prices and basic features
for numerous models of amplification equipment in a limited amount of
print space, be exempted from some or all of the power bandwidth,
distortion, and impedance disclosures?
(c) If so, what developments have occurred that make these
disclosures no longer necessary in such advertising?
(d) If so, which of these disclosures should be exempted from such
advertising and why?
(e) Should any such exemptions be extended to advertising by direct
mail resellers, who would not have retail outlets where consumers could
obtain more detailed pre-purchase information on amplifier
specifications?
(9) The Rule currently governs power output claims relating to
``sound power amplification equipment manufactured or sold for home
entertainment purposes. . . .'' The Commission has tentatively
concluded that the Rule covers (A) self-powered speakers for use with
(i) home computers, (ii) home sound systems, and (iii) home multimedia
systems; and (B) other sound power amplification equipment for home
computers.
(a) Are there any reasons why power output claims for such
equipment should be considered outside the scope of the Rule? If so,
please explain.
(b) Are manufacturers and distributors of these products aware that
these products are, as the Commission has tentatively determined,
within the scope of the Rule? If not, is there a need for the
Commission to undertake business and consumer education efforts to
publicize the coverage?
(c) Are the standard test conditions set out in the Rule
appropriate for such equipment?
(10) Current promotional materials and labeling for self-powered
speakers and other sound amplification equipment for home computers
systems contain power output claims expressed in a variety of terms,
including ``Peak Power,'' ``Peak Music Output Power,'' ``Total Power,''
and ``RMS'' power.
(a) What test protocols provide the basis for each of these power
measurements?
(b) How do power ratings obtained using these protocols compare
with the power rating that would be obtained using the FTC continuous
power output protocol?
(c) Do power output claims in promotional material and labeling for
such self-powered computer speakers rely on measurement methods other
than those listed above?
(d) How do any such power claims under (c) above compare with the
corresponding FTC power output rating?
(11) The Rule governs sound amplification equipment intended for
home entertainment purposes. Thus, the Rule does not apply to
automotive sound amplification products. Current promotional materials
and labeling for automotive sound amplification equipment contain power
output claims expressed in a variety of terms, including ``Peak
Power,'' ``Total Power,'' and ``RMS'' power.
(a) What test protocols provide the basis for each of these power
measurements?
(b) How do power ratings obtained using these protocols compare
with the power rating that would be obtained using the FTC continuous
power output protocol?
(c) Do power output claims in promotional material and labeling for
automotive stereo equipment rely on measurement methods other than
those listed above?
(d) How do any such power claims under (c) above compare with the
corresponding FTC power output rating?
(e) Do any of the sound power claims being made in connection with
the sale and advertising of automotive sound amplification products
inhibit meaningful comparisons of performance attributes by consumers?
If so, please: (i) Identify any such claims and furnish copies of
advertising and other material containing such claims, and (ii) supply
information establishing how prevalent such claims are (i.e., how
widespread and serious the problem is).
(f) If there is a need to take action to increase the ability of
consumers to make meaningful comparisons of performance characteristics
for automotive sound amplification products, what is the most
appropriate vehicle for accomplishing this goal (e.g., voluntary
industry standards, consumer education, business education, industry/
government public workshops, amending the Amplifier Rule, etc.)?
(g) Regardless of the method favored to improve consumers' ability
to compare performance characteristics, would any of the Rule's current
testing or disclosure requirements for home sound amplification
products have to be modified for use with automotive sound
amplification products due to any differences in technology, marketing
considerations, or other reasons?
List of Subjects in 16 CFR Part 432
Amplifiers; Home entertainment products; Trade practices.
Authority: 15 U.S.C. 41-58.
[[Page 16502]]
By Direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 97-8795 Filed 4-4-97; 8:45 am]
BILLING CODE 6750-01-M