[Federal Register Volume 67, Number 10 (Tuesday, January 15, 2002)]
[Proposed Rules]
[Pages 1915-1917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-920]


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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:  Notice deferring action on proposed rule.

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SUMMARY: On December 22, 2000, the Federal Trade Commission (the 
``Commission'') commenced a rulemaking proceeding and requested public 
comments on a supplemental notice of proposed rulemaking to amend its 
Rule relating to Power Output Claims for Amplifiers Utilized in Home 
Entertainment Products (the ``Amplifier Rule'' or the ``Rule''). The 
Commission solicited comments until March 30, 2001. In response to a 
request from an industry trade association, the Commission has 
determined to defer action on the proposed rule, but keep open the 
rulemaking record in this proceeding.

DATES: The Federal Trade Commission's decision to defer action on the 
proposed rule is effective January 15, 2002.

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: On December 22, 2000, the Commission 
published in the Federal Register a request for public comments on a 
supplemental notice of proposed rulemaking (``SNPR'') to amend its 
Amplifier Rule, 16 CFR part 432 (65 FR 80798). 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. Specifically, the Federal 
Register  notice solicited public comments on Commission proposals to 
amend the Amplifier Rule's testing procedures to provide appropriate 
power output ratings for the recently introduced class of multichannel 
audio/video receivers and amplifiers, such as those used in ``home 
theater'' installations.\1\ 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.
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    \1\ On the same day, the Commission published separately in the 
Federal Register a final rule streamlining the Amplifier Rule's 
advertising disclosure requirements with respect to total rated 
harmonic distortion and the associated power bandwidth and impedance 
ratings, and clarifying the testing procedure for self-powered 
speakers (65 FR 81232).
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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 Amplifier Rule originally was promulgated, or when the 
Commission initiated its review of the Amplifier Rule in 1997 to 
determine the Rule's current effectiveness and impact.\2\ The 
Commission tentatively concluded in the SNPR that such components raise 
unique interpretational issues under the Rule that have not heretofore 
been addressed. The Commission determined, therefore, to publish an 
SNPR commencing a supplementary rulemaking proceeding, and inviting 
interested persons to submit written comments addressing the issues 
raised in that notice.
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    \2\ 62 FR 16500 (April 7, 1997).
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    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.] 
This continuous measurement represents the maximum per-channel power an 
amplifier can deliver over a sustained period of time, which the Rule 
defines as five minutes. By requiring uniform power output disclosures 
in the advertising of audio amplifier equipment, the Rule enables 
consumers to easily make power output comparisons among the types and 
brands of audio equipment, and assess the products in conjunction with 
price. 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 Sec. 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. 
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 surround or special effects channels placed around 
the listening room.

[[Page 1916]]

    Manufacturers of multichannel audio/video receivers and amplifiers 
who wish to rate power output under Sec. 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 
Sec. 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 on December 22, 2000 (65 FR 81232), 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 Sec. 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.\3\ 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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    \3\ See, e.g., 64 FR 38610, 38613 (July 19, 1999).
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    The Commission tentatively concluded, therefore, that subwoofer 
amplifiers in combination self-powered subwoofer-satellite speaker 
systems and subwoofer amplifiers in audio/video receivers should be 
treated consistently under Sec. 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 was unable, however, to make any tentative 
determination concerning the appropriate designation of associated 
channels for the remaining amplified channels in multichannel audio/
video receivers and amplifiers, since the rulemaking record contained 
no evidence relevant to this issue. The Commission, therefore, 
solicited public comment on three alternative methods of grouping 
associated channels for multichannel audio/video receivers. The 
Commission stated that these alternatives would govern power ratings 
applicable when an audio/video receiver is used in full multichannel 
mode, but 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.
    In the SNPR, the Commission proposed to amend Sec. 432.2 of the 
Rule to define the term ``associated channels'' for multichannel audio/
video receivers such as those used in home theater systems.\4\ The 
Commission solicited public comment on the following three alternative 
designations of ``associated channels'' for such audio equipment:
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    \4\ The public comment period on the SNPR concluded on March 30, 
2001 (66 FR 12915 (March 1, 2001)).
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    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 
simultaneous 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.
    The SNPR elicited one comment, which was received from the Consumer 
Electronics Association (``CEA'').\5\ CEA noted that presently there is 
no industry consensus on testing, measuring and specifying the power 
output of multichannel amplifier products. In the absence of a 
voluntary industry standard that adequately addresses multichannel 
amplifiers, CEA stated that the industry is divided on the complex 
issue of testing and measuring multichannel receivers and amplifiers. 
CEA commented that while some manufacturers are testing and measuring 
the power output of their amplifiers with all channels driven 
simultaneously, other manufacturers are interpreting the term 
``associated'' to mean the simultaneous testing and measuring of only 
those channels that are ``naturally'' associated. For example, 
manufacturers are testing and measuring the power output of amplifier 
channels grouped as follows: a ``2-1-2'' approach (front left and 
right, center, rear left and

[[Page 1917]]

right); or a ``3-2'' approach (front left, right and center, rear left 
and right). In both examples, front left and right channels, and rear 
left and right channels are considered ``natural'' groupings in audio 
systems. Pending clarification, CEA stated that any of these approaches 
might be acceptable, provided that only one is agreed upon by the 
industry. With the expectation of future developments in multichannel 
audio technology, CEA has suggested that the Commission apply a 
flexible interpretation of the term ``associated'' to the testing and 
measuring of the power output for any ``associated'' audio channels 
that may be added in the future. CEA stated that this complex situation 
demands that the audio industry now take an active leadership role in 
reviewing and revising existing industry standards to apply them to 
multichannel receivers and amplifiers.
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    \5\ CEA represents more than 625 U.S. companies involved in the 
design, development, manufacturing and distribution of audio, video, 
mobile electronics, communications, information technology, 
multimedia and accessory products, as well as related services that 
are sold through consumer channels. Combined, these companies 
account for more than $70 billion in annual sales. CEA's comment 
appears on the public record in this proceeding and is available for 
public inspection in the Public Reference Room, Room 130, Federal 
Trade Commission, 600 Pennsylvania Ave., NW., Washington, DC, from 
8:30 a.m. to 5 p.m., Monday through Friday, except federal holidays.
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    CEA, therefore, has formed an industry working group, the purpose 
of which is to establish a voluntary industry consensus standard for 
measuring the power output of multichannel receivers and amplifiers. 
CEA has encouraged the Commission to continue its cooperative approach 
to revising the Amplifier Rule, and consider incorporating its final 
rule any new voluntary standard developed by CEA for testing, 
measuring, and specifying the power output of all amplifiers within the 
scope of the Rule.
    The Commission is aware that the issues raised by the SNPR Federal 
Register notice are complex and technical. In the Commission's view, 
therefore, the public interest would best be served at this time by 
allowing the industry the opportunity to develop a voluntary standard 
for testing, measuring, and specifying the power output of multichannel 
amplifiers and receivers. If the industry is successful in establishing 
a consensus standard in a reasonable period of time, the Commission 
will evaluate the technical merits of the standard and consider whether 
it can function satisfactorily as a voluntary standard, or whether it, 
or an alternative standard, should be incorporated into the Rule's 
requirements.
    Accordingly, in light of CEA's comment, the Commission has decided 
to defer action on the proposed rule, but keep open the rulemaking 
record in this proceeding to allow sufficient time for CEA to address 
the issues raised in the SNPR, and encourage the exchange of ideas 
between the Commission and the industry.

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

List of Subjects in 16 CFR Part 432

    Amplifiers, Home entertainment products, Trade practices.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-920 Filed 1-14-02; 8:45 am]
BILLING CODE 6750-01-M