[Federal Register Volume 81, Number 232 (Friday, December 2, 2016)]
[Rules and Regulations]
[Pages 86914-86915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29006]
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FEDERAL TRADE COMMISSION
16 CFR Part 306
Automotive Fuel Ratings, Certification and Posting
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Grant of partial exemption from the Commission's automotive
fuel ratings, certification, and posting rule.
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SUMMARY: The Commission grants the petition of gasoline dispenser
manufacturer Gilbarco, Inc. (``Gilbarco'') requesting permission for
ethanol flex fuel retailers to post ethanol flex fuel rating labels
that differ from size and shape specifications in the Commission's Rule
for Automotive Fuel Ratings, Certification and Posting (``Rule''). The
Commission grants the partial exemption without a notice and comment
period because ``for good cause'' the Commission finds that notice and
comment is unnecessary in this case. The Commission previously granted
similar requests from Gilbarco and other dispenser manufacturers
without notice and comment procedures.
DATES: This partial exemption is effective December 2, 2016.
FOR FURTHER INFORMATION CONTACT: R. Michael Waller, (202) 326-2902,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. The Fuel Rating Rule
The Rule provides procedures for determining, certifying, and
posting, through fuel dispenser labels, a rating for automotive fuels
intended for consumer sale. As originally published, the Rule required
only an octane rating for automotive gasoline.\1\ Pursuant to section
1501 of the Energy Policy Act of 1992, 106 Stat. 2776, the Commission
then amended the Rule in 1993 to require a rating disclosure for liquid
alternative fuels, including gasoline-ethanol blends above 10 percent
ethanol (``Ethanol Flex Fuels'').\2\ On January 14, 2016, the
Commission established a new Ethanol Flex Fuel rating and label,
effective July 14, 2016.\3\
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\1\ See Octane Posting and Certification Rule, 44 FR 19160 (Mar.
30, 1979).
\2\ 58 FR 41356, 41372 (Aug. 3, 1993).
\3\ 81 FR 2054 (Jan. 14, 2016).
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Section 306.10 of the Rule requires that retailers post on
automotive fuel dispensers a fuel rating label for each kind of
automotive fuel sold from the dispenser. Retailers must post labels
conspicuously on the dispenser in consumers' full view and as near as
reasonably practical to the fuel price.
Section 306.12 of the Rule details label color scheme, shape, size,
textual content, and font type and point size. Ethanol Flex Fuel labels
must be orange, rectangular, and 3 inches (7.62 cm) wide x 2 \1/2\
inches (6.35 cm) long. In addition, the percentage of ethanol content
must be printed in orange font within a 1 inch (2.54 cm) deep black
band across the top of the label. Below the band, the label must state
``Use Only in Flex Fuel Vehicles/May Harm Other Engines.''
II. Gilbarco's Prior Petitions
In 1988 and 1995, the Commission granted Gilbarco partial
exemptions to allow retailers to post octane labels smaller than
required by the Rule. As here, Gilbarco requested the exemption to
allow retailers to display the labels on the buttons consumers press to
select a particular automotive fuel on multi-blend fuel dispensers
(``button labels'').\4\ In those instances, the Commission exempted
button labels that measured 3 inches (7.62 cm) wide x 2.3 inches (5.84
cm) long and 2.74 inches (6.96 cm) wide x 1.80 inches (4.57 cm) long.
Furthermore, the font point size differed from Rule's requirements, and
the exempted labels added the word ``Press.''
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\4\ See 60 FR 57584 (Nov. 16, 1995); 53 FR 29277 (Aug. 3, 1988).
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III. Gilbarco's Current Petition
Gibarco now requests an exemption for smaller label dimensions for
Ethanol Flex Fuel button labels and to include the word ``Press'' in
the label's black band. In addition, Gilbarco requests permission to
post dome-shaped button labels in lieu of rectangular labels for
certain dispenser designs. The proposed rectangular labels are 2.38
inches (6.05
[[Page 86915]]
cm) wide x 2.27 inches (5.77 cm) long, and the dome-shaped labels have
an outside dimension of 2.378 inches (6.04 cm) wide x 2.717 (6.90 cm)
inches long. In addition, the black band across the top of the dome-
shaped label is 0.277 inches (0.70 cm) wider than specified in the
Rule. The labels' background and text insertions otherwise comply with
the Rule's color scheme, content, and font type and point size
requirements.
IV. Discussion
The Commission reviewed mock-ups of the proposed rectangular and
dome-shaped labels and concludes that the proposed labels adequately
meet the Rule's labeling requirements by providing clear and
conspicuous disclosure of all the required information and maintaining
the Rule's color scheme and font type and point size requirements.
Moreover, the Commission's experience with similar exemptions does not
indicate that button labels confuse consumers or otherwise impede
comprehension of the fuel rating. To the contrary, these labels may
increase the likelihood that consumers see the fuel rating because they
must choose and press the button before fueling.
Furthermore, pursuant to Rule 1.26, the Commission for good cause
finds that notice and comment is unnecessary in this case because the
exemption involves a technical and minor deviation from the Rule's
labeling requirements and does not impose any new legal obligations on
parties subject to the Rule.\5\ Moreover, the Commission has previously
granted similar exemptions from the Rule's labeling requirements, and
this exemption is consistent with those prior determinations.\6\
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\5\ See 16 CFR 1.26. For these reasons, the Commission also
finds good cause for making this exemption effective immediately.
\6\ See, e.g., Rule exemptions granted to Gilbarco, 60 FR 57584
(Nov. 16, 1995), 53 FR 29277 (Aug. 3, 1988); Dresser Industries,
Inc., 56 FR 26821 (June 11, 1991); and Exxon Corporation, 54 FR
14072 (Apr. 7, 1989).
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V. Conclusion
Therefore, the Commission grants Gilbarco and retailers permission
to use the proposed rectangular and dome-shaped button labels on
Ethanol Flex Fuel dispenser buttons, provided that Gilbarco and
retailers comply with the Rule's specifications in all other respects.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-29006 Filed 12-1-16; 8:45 am]
BILLING CODE 6750-01-P