[Federal Register Volume 65, Number 247 (Friday, December 22, 2000)]
[Proposed Rules]
[Pages 80798-80802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32393]


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FEDERAL TRADE COMMISSION

16 CFR Part 432


Trade Regulation Rule Relating to Power Output Claims for 
Amplifiers Utilized in Home Entertainment Products

AGENCY: Federal Trade Commission.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Federal Trade Commission (``Commission'' or ``FTC'') is 
issuing a supplemental notice of proposed rulemaking to amend its Rule 
relating to Power Output Claims for Amplifiers Utilized in Home 
Entertainment Products (``Amplifier Rule'' or ``Rule''). The Commission 
proposes amending the Rule to specify the channels of amplification 
that are to be considered ``associated'' under the Rule and, therefore, 
subject to simultaneous operation during the Rule-required power 
measurements of multichannel audio/video receivers and separate power 
amplifiers. The Commission is conducting this supplemental rulemaking 
proceeding because of comments filed in response to a Notice of 
Proposed Rulemaking (``NPR'') published in the Federal Register on July 
19, 1999, and other information discussed in this document. The 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 a hearing where oral testimony could be presented.

DATES: Written comments must be submitted on or before February 23, 
2001. Notifications of interest in testifying must be submitted on or 
before February 23, 2001. If interested parties request the opportunity 
to present testimony, the Commission will publish a document in the 
Federal Register, stating the time and place at which 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

[[Page 80799]]

present testimony must submit, on or before February 23, 2001, 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. If 
there is no interest in a hearing, the Commission will base its 
decision on the written rulemaking record.

ADDRESSES: Written comments and requests to testify should be submitted 
to Office of the Secretary, Federal Trade Commission, Room H-159, 600 
Pennsylvania Ave., NW., Washington, DC 20580. Comments and requests to 
testify should be identified as ``16 CFR part 432 Comment--Amplifier 
Rule'' and ``16 CFR part 432 Request to Testify--Amplifier 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: Dennis Murphy, Economist, Division of 
Consumer Protection, Bureau of Economics, (202) 326-3524, or Neil 
Blickman, Attorney, Division of Enforcement, Bureau of Consumer 
Protection, (202) 326-3038, Federal Trade Commission, Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

Part A--Introduction

    This Supplemental Notice of Proposed Rulemaking (``SNPR'') is 
published pursuant to section 18 of the Federal Trade Commission Act, 
15 U.S.C. 57a et seq., the provisions of part 1, Subpart B of the 
Commission's Rules of Practice, 16 CFR 1.7 et seq., and 5 U.S.C. 551 et 
seq. This authority permits the Commission to promulgate, modify, 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).\1\
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    \1\ In accordance with section 18 of the FTC Act, 15 U.S.C. 57a, 
the Commission submitted this SNPR to the Chairman of the Committee 
on Commerce, Science, and Transportation, United States Senate, and 
the Chairman of the Committee on Commerce, United States House of 
Representatives, 30 days prior to its publication in the Federal 
Register.
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    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. On July 19, 
1999, the Commission published in the Federal Register a Notice of 
Proposed Rulemaking that proposed amending the Rule to (1) exempt 
sellers who make power output claims in media advertising from the 
requirement to disclose total rated harmonic distortion and the 
associated power bandwidth and impedance ratings; (2) clarify the 
manner in which the Rule's testing procedures apply to self-powered 
subwoofer-satellite combination speaker systems; and (3) reduce the 
preconditioning power output requirement from one-third of rated power 
to one-eighth of rated power (64 FR 38610).
    On September 21, 1999, the Commission published in the Federal 
Register its decision granting an extension of the public comment 
period on the NPR until October 15, 1999 (64 FR 51087). The extension 
was granted to allow the Consumer Electronics Manufacturers Association 
(``CEMA''), the principal trade association of the U.S. electronics 
industry, additional time to elicit information from its members 
concerning the testing and performance of certain multichannel audio/
video receivers and amplifiers, such as those used in home theater 
installations. These receivers and amplifiers, which incorporate five 
or more discrete channels of amplification, are designed to decode and/
or amplify digitally encoded multichannel movie soundtracks or music 
program material recorded on video cassette tapes, laser discs, or 
digital video disks. CEMA informed Commission staff that marketers of 
such equipment are not interpreting the Rule's testing procedures in a 
uniform fashion, and that certain advertised power specifications might 
mislead consumers.\2\
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    \2\ CEMA, (5), pp. 6-7. All Rule NPR comments are on the public 
record and are available for public inspection in the Public 
Reference Room, Room 130, FTC, 600 Pennsylvania Ave., NW, 
Washington, DC, from 8:30 a.m. to 5:00 p.m., Monday through Friday, 
except holidays.
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    Audio/video receivers with digital decoding circuitry and five or 
more discrete channels of amplification were not available to consumers 
when the Commission initiated its review of the Amplifier Rule in 1997 
to determine the Rule's current effectiveness and impact.\3\ The 
Commission has tentatively concluded that such components raise unique 
interpretational issues under the Rule that were not addressed in the 
1997 review or in the subsequent NPR. The Commission has determined, 
therefore, to publish this SNPR commencing a supplementary rulemaking 
proceeding, and inviting interested persons to submit written comments 
addressing the issues raised in this notice. In a separate document 
published elsewhere in today's Federal Register, the Commission 
announces a final rule resolving the three issues that were the subject 
of the NPR.
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    \3\ 62 FR 16500 (April 7, 1997).
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Part B--Analysis of Proposed Amendment to Designate ``Associated 
Channels'' for Multichannel Audio/Video Receivers and Power 
Amplifiers

    Section 432.2(a) of the Rule requires that an amplifier's rated 
continuous power output per channel be ``[m]easured with all associated 
channels fully driven to rated per channel power.'' [Emphasis added.] 
When the Rule was promulgated in 1974, virtually all amplifiers 
available to consumers incorporated either one channel of amplification 
(``monophonic'' amplifiers), or two channels in a left and right 
``stereophonic'' configuration. For such amplifiers, interpretation of 
the term ``all associated channels'' in section 432.2(a) is self 
evident. By definition, a monophonic amplifier can be measured only 
with its single channel driven to full rated power. For stereophonic 
amplifiers, the left and right channels clearly are associated 
presentations of the same musical performance and, in any event, are 
the only channels that could be considered ``associated'' under the 
Rule.
    In recent years, multichannel audio/video receivers and power 
amplifiers with five or more channels of amplification have accounted 
for an increasingly large share of consumer audio equipment sales. This 
equipment is designed to reproduce digitally encoded cinema soundtracks 
and musical program material recorded on video cassette tapes, laser 
discs, and digital video discs. Current digital audio/video receivers 
and amplifiers typically incorporate a pair of front left and right 
stereophonic amplification channels, a center channel designed to 
reproduce the dialog portion of cinema soundtracks, and two discrete 
rear amplification channels that may reproduce special sound effects or 
ambient sound information encoded in cinema soundtracks or music 
program material. Some home theater amplifiers may also provide one or 
more ``subwoofer'' amplification channels that are dedicated to 
reproducing only deep bass frequencies (below approximately 100 Hertz). 
Future developments may include additional

[[Page 80800]]

surround or special effects channels placed around the listening room.
    Manufacturers of multichannel audio/video receivers and amplifiers 
who wish to rate power output under section 432.2 of the Rule must 
decide which of the five or more discrete channels of amplification are 
to be considered ``associated'' and, therefore, subject to simultaneous 
operation at full rated power. Under the strictest interpretation of 
section 432.2(a), all available channels would be considered associated 
and all channels would be driven to full rated power simultaneously 
during testing. Such a regimen might severely tax the common power 
supply utilized in many home theater receivers, and the resulting per 
channel power ratings might be considerably below those that would be 
obtained if, for example, only the specific set of channels being rated 
(e.g., surround channels) were driven to full power simultaneously. The 
controlling consideration in determining the proper interpretation of 
``associated channels'' is whether audio/video receivers and amplifiers 
would, when operated by consumers in the home at high playback volume, 
be required to deliver full rated power output in all channels 
simultaneously, or whether such maximum stress conditions would more 
likely be restricted at any given moment of time to certain sub-
groupings of available channels.
    The Commission already has reached a determination relevant to the 
appropriate treatment of any subwoofer channels of amplification that 
might be provided in audio/video receivers. This determination, which 
the Commission announced in a separate section of today's Federal 
Register, applies to self-powered combination subwoofer-satellite 
loudspeaker systems, such as those used with personal computers and in 
home theater installations. Specifically, the Commission amended 
section 432.2 of the Rule to specify that:

    * * * when measuring maximum per channel output of self-powered 
combination speaker systems that employ two or more amplifiers 
dedicated to different portions of the audio frequency spectrum, 
such as those incorporated into combination subwoofer-satellite 
speaker systems, only those channels dedicated to the same audio 
frequency should be considered associated channels that need be 
fully driven simultaneously to rated per channel power.

    In reaching this determination, the Commission concluded that, 
under actual in-home use of such combination systems, maximum power 
demands typically would not occur precisely in the crossover region of 
frequencies that would be reproduced both by the subwoofer and 
satellite amplifiers. Rather, simultaneous demands would more likely 
occur in portions of the audio spectrum that would be assigned 
primarily either to the subwoofer amplifier or the satellite 
amplifier.\4\ A similar conclusion would appear to hold for home 
theater receivers that incorporate a separate amplified subwoofer 
channel(s) and an internal crossover network.
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    \4\ See, e.g., 64 FR 38610, 38613 (July 19, 1999).
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    The Commission tentatively concludes, therefore, that subwoofer 
amplifiers in combination self-powered subwoofer-satellite speaker 
systems and subwoofer amplifiers in audio/video receivers should be 
treated consistently under section 432.2(a) of the Rule. That is, the 
amplified subwoofer channel(s) of digital home theater receivers and 
the remaining amplified channels need not be considered ``associated'' 
channels that must be fully driven to rated per channel power when 
rating the power output of the subwoofer channel(s).
    The Commission is unable, however, to make any tentative 
determination at this time concerning the appropriate designation of 
associated channels for the remaining amplified channels in 
multichannel audio/video receivers and amplifiers, since the comments 
on the NPR contained no evidence relevant to this issue. The 
Commission, therefore, is soliciting public comment on three 
alternative methods of grouping associated channels for multichannel 
audio/video receivers. These alternatives would govern power ratings 
applicable when an audio/video receiver is used in full multichannel 
mode. The proposed alternative amendments would not affect power 
ratings for the main left and right front channels that apply when the 
receiver's intended use is restricted to conventional stereo mode. For 
such conventional stereo ratings, only the two front stereo channels 
need be driven simultaneously to full rated power.
    Commission adoption of the first alternative (``Alternative A'') 
would designate all amplified channels other than the subwoofer 
channel(s) as ``associated,'' and would require that all such channels 
be driven simultaneously to full rated output during power output 
measurements. Thus, for example, a technician rating the maximum per 
channel output of the main front left and right channels would be 
required to drive both front channels, the center channel, and the 
surround channels to full rated power while performing these 
measurements. The basis for this designation of associated channels 
would be a determination by the Commission that multichannel audio/
video receivers and power amplifiers commonly would be required to 
generate full rated power simultaneously in all channels (other than 
the subwoofer channel(s)) when reproducing multichannel program 
material in the home at high playback volume.
    Commission adoption of the second alternative (``Alternative B'') 
would designate the front left and right channels and the front center 
channel as one set of associated channels, and all surround channels as 
a separate set of associated channels. Accordingly, all front channels 
would have to be driven to full rated power during measurements of 
rated per channel power output for either the front stereo channels or 
the center channel. Similarly, all surround channels (but none of the 
front channels) would have to be driven simultaneously to full rated 
power during measurements of the rated per channel power output of the 
surround channels. The basis for this designation of associated 
channels would be a Commission determination that multichannel audio/
video receivers and power amplifiers commonly would be required to 
deliver full rated power simultaneously to the front stereo and front 
center channels when reproducing multichannel program material in the 
home at high volume, but that such full power demands are not likely to 
occur simultaneously with full power demands in the surround channels.
    Commission adoption of the third alternative (``Alternative C'') 
would designate the front left and right channels as one set of 
associated channels, the center channel(s) as a second associated set, 
and all surround channels as a third set of associated channels. Thus, 
only the two front stereo channels would have to be driven 
simultaneously to full rated power during measurements of rated per 
channel power output for these channels; similarly, only the front 
center channel(s) would have to be driven to full rated power during 
power measurement of rated per channel output for that channel set; and 
only the surround channels would have to be driven simultaneously to 
full rated power during measurements of rated per channel output of 
those channels. The basis for this designation of associated channels 
would be a Commission determination that multichannel audio/video 
receivers and power amplifiers commonly would be required to deliver 
full rated per channel power output simultaneously to either the front 
stereo channels, front center channel(s), or

[[Page 80801]]

surround channels, but not simultaneously to any two or more sets of 
these channels, when reproducing multichannel program material in the 
home at high volume.

Part C--Rulemaking Procedures

    The Commission finds that the public interest will be served by 
using expedited procedures in this proceeding. Using expedited 
procedures will support the Commission's goals of clarifying existing 
regulations, when necessary, and eliminating obsolete or unnecessary 
regulation 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 amend 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 Supplemental Notice of Proposed 
Rulemaking; (2) soliciting written comments on the Commission's 
proposals to amend 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 notice 
published in the Federal Register.

Part D--Request For Public Hearings

    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 to present testimony at a public hearing, he or she 
should follow the procedures set forth in the DATES and ADDRESSES 
sections of this notice.

Part E--Description of Proposed Amendment and Alternatives Relating 
to Designation of ``Associated Channels'' for Multichannel Audio/
Video Receivers and Power Amplifiers

    The Commission proposes to amend section 432.2 to define the term 
``associated channels'' for multichannel audio/video receivers such as 
those used in home theater systems. The Commission solicits public 
comment on the following three alternative designations of ``associated 
channels'' for such audio equipment:
    Alternative A: When measuring maximum per channel output of 
multichannel audio/video receivers and power amplifiers, the front 
stereo channels, the center channel(s), and the surround channels 
should be considered associated channels that need be fully driven 
simultaneously to rated per channel power. The subwoofer channels 
should be considered as a second group of associated channels.
    Alternative B: When measuring maximum per channel output of 
multichannel audio/video receivers and power amplifiers, the front 
stereo channels and the center channel(s) should be considered one 
group of associated channels; the surround channels should be 
considered a second group of associated channels; and the subwoofer 
channels should be considered a third group of associated channels.
    Alternative C: When measuring maximum per channel output of 
multichannel audio/video receivers and power amplifiers, the front 
stereo channels should be considered one group of associated channels; 
the center channel(s) should be considered a second group of associated 
channels; the surround channels should be considered a third group of 
associated channels; and the subwoofer channels should be considered a 
fourth group of associated channels.

Part F--Preliminary Regulatory Analysis and Regulatory Flexibility 
Act Requirements

    Under section 22 of the FTC Act, 15 U.S.C. 57b, the Commission must 
issue a preliminary regulatory analysis for a proceeding to amend a 
rule only when it (1) estimates that the amendment will have an annual 
effect on the national economy of $100,000,000 or more; (2) estimates 
that the amendment will cause a substantial change in the cost or price 
of certain categories of goods or services; or (3) otherwise determines 
that the amendment will have a significant effect upon covered entities 
or upon consumers. The Commission has preliminarily determined that the 
proposed amendment to the Rule will not have such effects on the 
national economy, on the cost of sound amplification equipment, or on 
covered businesses or consumers. The Commission, however, requests 
comment on the economic effects of the proposed amendment.
    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-12, requires 
that the agency conduct an analysis of the anticipated economic impact 
of the proposed amendment on small businesses. The purpose of a 
regulatory flexibility analysis is to ensure that the agency considers 
impact on small entities and examines regulatory alternatives that 
could achieve the regulatory purpose while minimizing burdens on small 
entities. Section 605 of the RFA, 5 U.S.C. 605, provides that such an 
analysis is not required if the agency head certifies that the 
regulatory action will not have a significant economic impact on a 
substantial number of small entities.
    Because the Amplifier Rule covers manufacturers and importers of 
power amplification equipment for use in the home, the Commission 
believes that any amendments to the Rule may affect a substantial 
number of small businesses. Nevertheless, the proposed amendment would 
not appear to have a significant economic impact upon such entities.
    Depending upon which of the three proposed alternative amendments 
is adopted, the clarification of testing procedures for multichannel 
audio/video receivers and separate power amplifiers would have either 
no impact or a modest impact on the overall cost of producing affected 
amplification equipment. Proposed Alternative A, which would require 
all channels of multichannel audio/video receivers and amplifiers to be 
driven to full rated power during the power rating tests of either the 
satellite, center, or surround channels, might lead some manufacturers 
to install more costly power supplies in order to maximize the power 
output ratings that could be achieved with this testing procedure. Any 
such upgrading of electronic components would not, however, require 
substantial investments in capital equipment or other investments 
involving high fixed costs (such as expansion of record keeping 
systems) that could have a disproportionate impact on small businesses. 
Proposed Alternatives B and C, which would place lower demands on the 
power supplies of multichannel receivers and amplifiers, would have 
little or no impact on any business decisions for either large or small 
businesses.
    Based on available information, therefore, the Commission certifies 
that amending the Amplifier Rule as proposed will not have a 
significant economic impact on a substantial number of small 
businesses. To ensure that no significant economic impact is being 
overlooked, however, the Commission requests comments on this issue. 
The Commission also seeks comments on possible alternatives to the 
proposed amendment to accomplish the stated objectives. After reviewing 
any comments received, the Commission will determine whether a final 
regulatory flexibility analysis is appropriate.

Part G--Paperwork Reduction Act

    The Amplifier Rule contains various information collection 
requirements for which the Commission has obtained clearance until 
August 31, 2002, under the Paperwork Reduction Act, 44 U.S.C.

[[Page 80802]]

3501 et seq., Office of Management and Budget (``OMB'') Control Number 
3084-0105. As noted above, for purposes of performing the tests 
necessary for affected entities to make the disclosures required under 
the Rule, section 432.2(a) of the Rule requires that an amplifier's 
rated continuous power output per channel be measured with all 
associated channels fully driven to rated per channel power.
    The amendment proposed by the Commission would not increase or 
alter the Rule's paperwork requirements. Consequently, there are no 
additional ``collection of information'' requirements included in the 
proposed amendment to submit to OMB for clearance under the Paperwork 
Reduction Act.
    The proposed amendment to designate the channels of amplification 
that are to be considered ``associated'' under the Rule and, therefore, 
subject to simultaneous operation during the Rule-required power 
measurements of multichannel audio/video receivers and separate power 
amplifiers would not increase the Rule's paperwork burden. Further, it 
would not alter the Rule's requirements, but merely would clarify the 
test procedure that should be followed in applying the Rule's 
continuous power rating protocol to multichannel audio/video receivers 
and amplifiers.
    Thus, the Commission concludes that the proposed amendment would 
not increase the paperwork burden associated with compliance with the 
Rule. To ensure that no significant paperwork burden is being 
overlooked, however, the Commission requests comments on this issue.

Part H--Additional Information For Interested Persons

1. Motions or Petitions

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

2. Communications by Outside Parties to Commissioners or Their Advisors

    Pursuant to Commission Rule 1.18(c)(1), 16 CFR 1.18(c)(1), the 
Commission has determined that communications with respect to the 
merits of this proceeding from any outside party to any Commissioner or 
Commissioner advisor shall be subject to the following treatment. 
Written communications and summaries or transcripts of oral 
communications shall be placed on the rulemaking record if the 
communication is received before the end of the comment period. They 
shall be placed on the public record if the communication is received 
later. Unless the outside party making an oral communication is a 
member of Congress, such communications are permitted only if advance 
notice is published in the Weekly Calendar and Notice of ``Sunshine'' 
Meetings.\5\
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    \5\ See 15 U.S.C. 57a(i)(2)(A); 45 FR 50814 (1980); 45 FR 78626 
(1980).
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Part I--Invitation to Comment and Questions For Comment

    Members of the public are invited to comment on any issues or 
concerns they believe are relevant or appropriate to the Commission's 
consideration of the proposed amendment to the Amplifier Rule. The 
Commission requests that factual data upon which the comments are based 
be submitted with the comments. In addition to the issues raised above, 
the Commission solicits public comment on the costs and benefits to 
industry members and consumers of each of the proposals, as well as the 
specific questions identified below. These questions are designed to 
assist the public and should not be construed as a limitation on the 
issues on which public comment may be submitted.
    The 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, 600 
Pennsylvania Ave., NW., Room 130, Washington, DC 20580, (202) 326-2222.

Questions

    (1) What are the various testing procedures used currently by 
manufacturers of multichannel audio/video receivers and power 
amplifiers to determine full rated per channel power of the front left 
and right channels, center channel(s), surround channels, and subwoofer 
channels? Which channels of amplification are most frequently driven 
simultaneously to full rated power when performing such measurements?
    (2) Would multichannel audio/video receivers and power amplifiers 
commonly be required to deliver full rated power simultaneously to all 
channels (other than the subwoofer channel(s)) when reproducing 
multichannel cinema soundtracks and other multichannel program material 
in the home at high playback volume? If not, to which channels would 
audio/video receivers and power amplifiers commonly be required to 
deliver full rated power simultaneously when reproducing multichannel 
program material in the home at high volume?
    (3) Should the Commission adopt ``Alternative A'' to define 
``associated channels'' for multichannel audio/video receivers and 
power amplifiers? Why or why not?
    (4) Should the Commission adopt ``Alternative B'' to define 
``associated channels'' for multichannel audio/video receivers and 
power amplifiers? Why or why not?
    (5) Should the Commission adopt ``Alternative C'' to define 
``associated channels'' for multichannel audio/video receivers and 
power amplifiers? Why or why not?
    (6) Are there any other definitions of ``associated channels'' that 
would be preferable to any of the three proposed alternative 
designations? If so, why?

    Authority: 15 U.S.C. 41-58.

List of Subjects in 16 CFR Part 432

    Amplifiers, Electronic products, Trade practices.
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. 00-32393 Filed 12-21-00; 8:45 am]
BILLING CODE 6750-01-P