[Federal Register Volume 84, Number 121 (Monday, June 24, 2019)]
[Notices]
[Pages 29515-29519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13383]
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FEDERAL TRADE COMMISSION
Information Collection Activities; Proposed Collection; Comment
Request
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the current Paperwork Reduction Act (``PRA'') clearance for
information collection requirements in its Energy Labeling Rule. That
clearance expires on November 30, 2019.
DATES: Comments must be submitted on or before August 23, 2019.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Energy Labeling Rule
PRA Comment, FTC File No. R611004'' on your comment, and file your
comment online at https://www.regulations.gov by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC
20580.
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3521, federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3); 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing paperwork clearance for
the Energy Labeling Rule, 16 CFR part 305 (OMB Control Number 3084-
0069).
The Energy Labeling Rule implements the Energy Policy and
Conservation Act
[[Page 29516]]
of 1975 (``EPCA'').\1\ The Rule establishes testing, reporting,
recordkeeping, and labeling requirements for manufacturers of major
household products (refrigerators, refrigerator-freezers, and freezers;
dishwashers; clothes washers; water heaters; room air conditioners;
furnaces; central air conditioners; heat pumps; pool heaters;
fluorescent lamp ballasts; lamp products; plumbing fittings; plumbing
fixtures; ceiling fans; consumer specialty lamps; and televisions). The
requirements relate specifically to the disclosure of information
relating to energy consumption and water usage. The Rule's testing and
disclosure requirements enable consumers purchasing products to compare
the efficiency or energy use of competing models. In addition, EPCA and
the Rule require manufacturers to submit relevant data to the
Commission regarding energy or water usage in connection with the
products they manufacture. The Commission uses this data to compile
ranges of comparability for covered appliances for publication in the
Federal Register. These submissions, along with required records for
testing data, may also be used in enforcement actions involving alleged
misstatements on labels or in advertisements.
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\1\ 42 U.S.C. 6294.
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Burden Statement
Estimated annual hours burden: 478,000.
The estimated hours burden imposed by Section 324 of EPCA and the
Commission's Rule include burdens for testing (354,802 hours);
reporting (1,828 hours); recordkeeping (1,019 hours); labeling (108,864
hours); retail and online catalog disclosures (6,800 hours); and online
label posting (4,533 hours). The total burden for these activities is
478,000 hours (rounded to the nearest thousand).
The following estimates of the time needed to comply with the
requirements of the Rule are based on census data, Department of Energy
figures and estimates, general knowledge of manufacturing practices,
and industry input and figures. Because the compliance burden falls
almost entirely on manufacturers and importers (with a de minimis
burden for retailers), burden estimates are calculated on the basis of
the number of domestic manufacturers and/or the number of units shipped
domestically in the various product categories.
A. Testing
Under the Rule, manufacturers of covered products must test each
basic model they produce to determine energy usage (or, in the case of
plumbing fixtures, water consumption). The burden imposed by this
requirement is determined by the number of basic models produced, the
average number of units tested per model, and the time required to
conduct the applicable test.
Manufacturers need not subject each basic model to testing
annually; they must retest only if the product design changes in such a
way as to affect energy consumption. The staff estimates that the
frequency with which models are tested every year ranges roughly
between 10% and 50% and that the actual percentage of basic models
tested varies by appliance category. In addition, the majority of tests
conducted are required by Department of Energy requirements; therefore,
it is likely that only a small portion of the tests conducted is
attributable to the Rule's requirements. Accordingly, the burden
estimates are based on the assumption that 25% of all basic models are
tested annually due to the Rule's requirements. Thus, the estimated
testing burden for the various categories of products covered by the
Rule is as follows: \2\
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\2\ The following numbers reflect estimates of the basic models
in the market. The actual numbers will vary from year to year.
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Percentage of Average
Number of models tested number of Labor hours Total annual
Category of manufacturer basic models (FTC required) units tested per unit testing burden
(%) per model tested hours
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Refrigerators, Refrigerator- 5,134 25 4 4 20,536
freezers, and Freezers.........
Dishwashers..................... 875 25 4 1 875
Clothes washers................. 599 25 4 2 1,198
Water heaters................... 3,112 25 2 24 37,344
Room air conditioners........... 1,585 25 4 8 12,680
Furnaces........................ 1,900 25 2 8 7,600
Central A/C..................... 1,270 25 2 24 15,240
Heat pumps...................... 903 25 2 72 32,508
Pool heaters.................... 215 25 2 12 1,290
Fluorescent lamp ballasts....... 454 25 4 3 1,362
Lamp products................... 5,100 25 12 14 214,200
Plumbing fittings............... 1,700 25 2 2 1,700
Plumbing fixtures............... 22,000 25 1 .0833 458
Ceiling Fans.................... 6,966 25 3 1 5,225
Televisions..................... 2,586 25 2 2 2,586
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.............. .............. .............. .............. 354,802
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B. Reporting
The Rule requires that manufacturers of covered products ``shall
submit annually a report for each model in current production
containing the same information that must be submitted to the
Department of Energy pursuant to 10 CFR part 429. In lieu of submitting
the required information to the Commission as required by this section,
manufacturers may submit such information to the Department of Energy
via the CCMS at https://regulations.doe.gov/ccms as provided by 10 CFR
429.12.'' 16 CFR 305.8(a)(1). The Rule also requires manufacturers to
furnish links to images of their EnergyGuide labels as part of these
required annual reports. 16 CFR 305.8(a)(5). Manufacturers must submit
data to the FTC both when they begin manufacturing new models and
annually. 16 CFR 305.8; 42 U.S.C. 6296(b).
[[Page 29517]]
Reporting burden estimates are based on information from industry
representatives. Manufacturers of some products, such as appliances and
HVAC equipment, indicate that, for them, the reporting burden is best
measured by the estimated time required to report on each model
manufactured, while others, such as makers of fluorescent lamp ballasts
and lamp products, state that an estimated number of annual burden
hours by manufacturer is a more meaningful way to measure. The figures
below reflect these different methodologies as well as the varied
burden hour estimates provided by manufacturers of the different
product categories that use the latter methodology.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
Staff estimates that the average reporting burden for these
manufacturers is approximately two minutes per basic model. Based on
this estimate, multiplied by a total of 14,633 basic models of these
products, the annual reporting burden for the appliance, HVAC
equipment, and pool heater industry is an estimated 838 hours (2
minutes x 25,145 models / 60 minutes per hour).
Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
The total annual reporting burden for manufacturers of fluorescent
lamp ballasts, lamp products, and plumbing fixtures is based on the
estimated average annual burden for each category of manufacturers,
multiplied by the number of manufacturers in each respective category,
as shown below:
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Annual burden Total annual
Category of manufacturer hours per Number of reporting
manufacturer manufacturers burden hours
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Fluorescent lamp ballasts....................................... 6 20 120
Lamp products................................................... 15 50 750
Plumbing products............................................... 1 120 120
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The total reporting burden for industries covered by the Rule is
1,828 hours annually (838 + 120 + 750 + 120).
C. Recordkeeping
The Rule requires manufacturers to keep records of the test data
generated in performing the tests to derive information included on
labels required by the Rule. EPCA and the Rule require manufacturers to
keep records of the test data generated in performing the tests to
derive information included on labels and required by the Rule. As with
reporting, burden is calculated by number of models for appliances,
HVAC equipment, pool heaters, and televisions, and by number of
manufacturers for fluorescent lamp ballasts, lamp products, and
plumbing products.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
The recordkeeping burden for manufacturers of appliances, HVAC
equipment, pool heaters, and televisions varies directly with the
number of tests performed. Staff estimates total recordkeeping burden
to be approximately 419 hours for these manufacturers, based on an
estimated average of one minute per record stored (whether in
electronic or paper format), multiplied by 25,145 tests performed
annually (1 x 25,145 / 60 minutes per hour).
Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
The total annual recordkeeping burden for manufacturers of
fluorescent lamp ballasts, lamp products, and plumbing fixtures is
based on the estimated average annual burden for each category of
manufacturers (derived from industry sources), multiplied by the number
of manufacturers in each respective category, as shown below:
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Annual burden Total annual
Category of manufacturer hours per Number of recordkeeping
manufacturer manufacturers burden hours
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Fluorescent lamp ballasts....................................... 2 20 40
Lamp products................................................... 10 50 500
Plumbing fixtures............................................... 0.5 120 60
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The total recordkeeping burden for industries covered by the Rule
is 1,019 hours annually (419 + 40 + 500 + 60).
D. Labeling
EPCA and the Rule require that manufacturers of covered products
provide certain information to consumers through labels on covered
products. The burden imposed by this requirement consists of (1) the
time needed to prepare labels, and (2) the time needed to affix
required labels.
EPCA and the Rule specify the content, format, and specifications
for the required labels, so manufacturers need only add the energy
consumption figures derived from testing. In addition, most companies
use automation to generate labels, and the labels do not change from
year to year.
Given these considerations, staff estimates that the time to
prepare labels for covered products is no more than four minutes per
basic model. Based on Department of Energy data, staff has estimated
that manufacturers offer approximately 54,399 basic models of covered
products. Based on these estimates, staff estimates that the the
approximate annual drafting burden involved in labeling covered
products is 3,627 hours per year [54,399 (all basic models) x four
minutes (drafting time per basic model) / 60 (minutes per hour)].
Based on input from industry representatives and trade
associations, staff estimates that it takes approximately 4 second to
affix labels to products for retail sales.\3\ Based on an average of 4
seconds per unit, the annual burden for affixing labels to covered
products is 105,237 hours [4 (seconds) x 94,713,098 (the estimated
number of total products shipped for
[[Page 29518]]
sale annually) divided by 3,600 (seconds per hour)].
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\3\ Estimates from trade association members for labeling costs
ranged from 1 second to 8 seconds. Staff has chosen a middle-ground
estimate of 4 seconds, although due to improvements in automation,
staff believes this estimate likely overstates the time spent
labeling most covered products.
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The total labeling burden for all industries covered by the Rule is
108,864 (105,237 hours for preparation plus 3,627 hours for affixing)
annually.
E. Online and Retail Sales Catalog Disclosures
The Rule requires that sellers offering covered products online or
through retail sales catalogs (i.e., those publications from which a
consumer can order merchandise) disclose online or in the catalog
energy or water consumption for each covered product. Because this
information is supplied by the product manufacturers, the burden on the
retailer consists of incorporating the information into the online or
catalog presentation.
In the past, staff has estimated that there are 100 sellers who
offer covered products through paper retail catalogs. While the Rule
initially imposed a burden on catalog sellers by requiring that they
draft disclosures and incorporate them into the layouts of their
catalogs, paper catalog sellers now have substantial experience with
the Rule and its requirements. Energy and water consumption information
has obvious relevance to consumers, so sellers are likely to disclose
much of the required information with or without the Rule. Accordingly,
given the small number of catalog sellers, their experience with
incorporating energy and water consumption data into their catalogs,
and the likelihood that many of the required disclosures would be made
in the ordinary course of business, staff believes that any burden the
Rule imposes on these paper catalog sellers would be minimal.
Staff estimates that there are approximately 400 online sellers of
covered products who are subject to the Rule's catalog disclosure
requirements. Staff estimates that these online sellers each require
approximately 17 hours per year to incorporate the data into their
online catalogs. This estimate is based on the assumption that entry of
the required information takes 1 minute per covered product and an
assumption that the average online catalog contains approximately 1,000
covered products (based on a sampling of websites of affected
retailers). Given that there is a great variety among sellers in the
volume of products they offer online, it is very difficult to estimate
such volume with precision. In addition, this analysis assumes that
information for all 1,000 products is entered into the catalog each
year. This is assumption likely overstates the associated burden
because the number of incremental additions to the catalog from year to
year is likely to be much lower after initial start-up efforts have
been completed. The total catalog disclosure burden for all industries
covered by the Rule is 6,800 hours (400 sellers x 17 hours annually).
F. Online Label Posting
The Rule require manufacturers to post images of their EnergyGuide
and Lighting Facts labels online. Given approximately 54,399 total
models at an estimated five minutes per model, this requirement entails
a burden of 4,533 hours.
Estimated annual cost burden: $12,063,968 in labor cost and
$5,672,500 in other non-labor costs.
Labor costs: Staff derived labor costs by applying estimated hourly
cost figures to the burden hours described above. In calculating the
cost figures, staff assumes that test procedures are conducted by
skilled technical personnel at an hourly rate of $28.37, and that
recordkeeping and reporting, and labeling and marking, generally are
performed by clerical personnel at an hourly rate of $16.24.
Based on the above estimates and assumptions, the total annual
labor costs for the five different categories of burden under the Rule,
applied to all the products covered by it, is $12,064,000 (rounded to
the nearest thousand).\4\
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\4\ The labor cost estimates below are derived from the Bureau
of Labor Statistics figures in ``Table 1. National employment and
wage data from the Occupational Employment Statistics survey by
occupation, May 2018,'' available at: https://www.bls.gov/news.release/ocwage.t01.htm.
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Burden hours Total annual
Activity per year Wage category/hourly rate labor cost
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Testing.................................... 354,802 Engineering technicians ($28.37)... $10,065,733
Reporting.................................. 1,828 Data Entry/Information Processing 29,687
($16.24).
Recordkeeping.............................. 1,019 Data Entry/Information Processing 16,549
($16.24).
Labeling................................... 108,864 Data Entry/Information Processing 1,767,951
($16.24).
Online and Catalog disclosures............. 6,800 Data Entry/Information Processing 110,432
($16.24).
Online Label Posting....................... 4,533 Data Entry/Information Processing 73,616
($16.24).
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.............. ................................... 12,063,968
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Capital or Other Non-Estimated annual non-labor cost: $5,672,500.
Manufacturers must incur the cost of procuring labels used in
compliance with the Rule. Based on estimates of 189,000,000 units
shipped annually, at an average cost of three cents for each label, the
total (rounded) labeling cost is $5,670,000.
The overwhelming majority of manufacturers submit required annual
reports through the DOE online reporting system. However, a limited
number of manufacturers submit required reports to the Commission
directly (rather than through trade associations) and incur some
nominal costs for paper and postage. Staff estimates that these costs
do not exceed $2,500.
Request for Comment: Pursuant to Section 3506(c)(2)(A) of the PRA,
the FTC invites comments on: (1) Whether the disclosure, recordkeeping,
and reporting requirements are necessary, including whether the
resulting information will be practically useful; (2) the accuracy of
our burden estimates, including whether the methodology and assumptions
used are valid; (3) how to improve the quality, utility, and clarity of
the disclosure requirements; and (4) how to minimize the burden of
providing the required information to consumers.
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before August 23, 2019. Write
``Energy Labeling Rule PRA Comment, FTC File No. __'' on your comment.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online, or to send them to the Commission by courier or
overnight service. To make sure that the Commission considers your
online comment, you must file it through the https://www.regulations.gov website by
[[Page 29519]]
following the instructions on the web-based form provided. Your
comment--including your name and your state--will be placed on the
public record of this proceeding, including the https://www.regulations.gov website. As a matter of discretion, the Commission
tries to remove individuals' home contact information from comments
before placing them on the regulations.gov site.
If you file your comment on paper, write ``Energy Labeling Rule
Comment, FTC File No. __'' on your comment and on the envelope, and
mail it to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC
20024. If possible, submit your paper comment to the Commission by
courier or overnight service.
Because your comment will be placed on the publicly accessible
website at www.regulations.gov, you are solely responsible for making
sure that your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before August 23,
2019. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Heather Hippsley,
Deputy General Counsel.
[FR Doc. 2019-13383 Filed 6-21-19; 8:45 am]
BILLING CODE 6750-01-P