[Federal Register Volume 85, Number 70 (Friday, April 10, 2020)]
[Proposed Rules]
[Pages 20218-20226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06960]


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FEDERAL TRADE COMMISSION

16 CFR Part 305

[3084-AB15]


Energy Labeling Rule

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
proposes amending the Energy Labeling Rule (``Rule'') to require 
EnergyGuide labels for portable air conditioners and seeks comment on 
these proposed requirements, particularly the proposed effective date. 
The Commission also proposes conforming amendments to reflect upcoming 
Department of Energy (``DOE'') changes to efficiency descriptors for 
central air conditioners. In addition, the Commission seeks comment on 
the labeling requirements in our regulations.

DATES: Comments must be received by June 9, 2020.

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 ``Portable Air 
Conditioners, Matter No. R611004'' on your comment, and file your 
comment online through https://www.regulations.gov by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, write ``Portable Air Conditioners, Matter No. R611004'' on 
your comment and on the envelope and mail your comment to the following 
address: Federal Trade Commission, Office of the Secretary, 600 
Pennsylvania Avenue NW, Suite CC-5610 (Annex C), 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 C), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome (202-326-2889), 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, Room CC-9528, 600 Pennsylvania Avenue NW, 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION: 

I. Background on the Energy Labeling Rule

    The Commission issued the Energy Labeling Rule (``Rule'') in 
1979,\1\ pursuant to the Energy Policy and

[[Page 20219]]

Conservation Act of 1975 (``EPCA'').\2\ The Rule requires energy 
labeling for major home appliances and other consumer products to help 
consumers compare the energy usage and costs of competing models. It 
also contains labeling requirements for refrigerators, refrigerator-
freezers, freezers, dishwashers, water heaters, clothes washers, room 
air conditioners, furnaces, central air conditioners, heat pumps, 
plumbing products, lighting products, ceiling fans, and televisions.
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    \1\ 44 FR 66466 (Nov. 19, 1979).
    \2\ 42 U.S.C. 6294. EPCA also requires the Department of Energy 
(``DOE'') to develop test procedures that measure how much energy 
appliances use, and to determine the representative average cost a 
consumer pays for different types of energy.
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    The Rule requires manufacturers to attach yellow EnergyGuide labels 
to many of the covered products and prohibits retailers from removing 
these labels or rendering them illegible. In addition, it directs 
sellers, including retailers, to post label information on websites and 
in paper catalogs from which consumers can order products. EnergyGuide 
labels for most covered products contain three key disclosures: 
Estimated annual energy cost, a product's energy consumption or energy 
efficiency rating as determined by DOE test procedures, and a 
comparability range displaying the highest and lowest energy costs or 
efficiency ratings for all similar models. The Rule requires marketers 
to use national average costs for applicable energy sources (e.g., 
electricity, natural gas, oil) as calculated by DOE in all cost 
calculations. Under the Rule, the Commission periodically updates 
comparability range and annual energy cost information based on 
manufacturer data submitted pursuant to the Rule's reporting 
requirements.\3\
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    \3\ 16 CFR 305.10.
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II. Proposed EnergyGuide Labels for Portable Air Conditioners

    The Commission proposes adding labeling requirements for portable 
air conditioners. Under EPCA, the Commission may require labeling for 
DOE-designated covered products if it determines that labeling will 
``assist purchasers in making purchasing decisions'' and will be 
``economically and technologically feasible.'' 42 U.S.C. 6294(a)(3). As 
detailed below, the Commission has already sought comment on labeling 
requirements for portable air conditioners in several earlier Federal 
Register notices. In these notices, the Commission discussed the 
benefits and burdens of such labels and their format and content, which 
would resemble the EnergyGuide labels already required for room air 
conditioners.\4\ It found, in accordance with its EPCA authority, that 
labeling for this product category is likely to be economically and 
technologically feasible and is likely to assist consumers in their 
purchasing decisions.\5\ In response to these earlier notices and over 
several rounds of comments, a wide array of stakeholders, including 
industry members, utilities, and consumer groups supported (or did not 
oppose) the proposal.
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    \4\ 79 FR 34642 (June 18, 2014); 80 FR 67351 (Nov. 2, 2015); 81 
FR 62681 (Sept. 12, 2016); and 82 FR 29230 (June 28, 2017). During 
this proceeding, the Commission waited on label requirements pending 
a final DOE-issued test procedure for these products. DOE published 
that test procedure on June 1, 2016 (81 FR 35242) and it became 
mandatory for energy use representations on November 28, 2016.
    \5\ 80 FR at 67357; and 81 FR at 62683. In discussing similar 
economic and technological feasibility determinations for labels in 
1979, the Commission concluded ``that Congress['s] intent was to 
permit the exclusion of any product category, if the Commission 
found that the costs of the labeling program would substantially 
outweigh any potential benefits to consumers.'' 44 FR at 66467-68 
(discussing determinations under 42 U.S.C. 6294(a)(1)).
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    In January 2017, however, DOE withdrew its final efficiency 
standards from publication in the Federal Register pursuant to the 
Presidential Memorandum on Implementation of Regulatory Freeze, leaving 
the final standards compliance date unclear. As a result, the 
Commission delayed finalizing the label requirements due to uncertainty 
about the timing of DOE efficiency standards for these products.\6\ 
However, a recent DOE notice announcing a compliance date for the 
standards has resolved that uncertainty.\7\ Accordingly, the Commission 
now proposes to require an EnergyGuide label for portable air 
conditioners beginning on January 10, 2025 to coincide with those DOE 
standards. Manufacturers would be able to use the label earlier. The 
Commission seeks comment on the proposed amendments, particularly the 
proposed effective date for those labels.
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    \6\ 82 FR at 29232.
    \7\ 85 FR 1378 (Jan. 10, 2020).
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A. Portable Air Conditioner Energy Costs and Consumer Labels

    Earlier in this proceeding, the Commission addressed the benefits 
as well as the economic and technological feasibility of labeling for 
portable air conditioners. In a 2015 notice, for example, it explained 
that portable air conditioners are common in the marketplace, vary in 
energy efficiency, and use energy similar to, or greater than, already-
labeled room air conditioners.\8\ In addition, DOE reported the 
aggregate energy use of portable air conditioners has increased as 
these units have become more popular.\9\ According to DOE estimates, 
sellers shipped 1.32 million units in the United States in 2014, with 
future growth projected.\10\ DOE also found these products exhibit a 
wide range of efficiency ratings and energy costs for similarly sized 
units (a difference of about $100 per year between the most and least 
efficient models). After the 2025 implementation of DOE standards that 
range is likely to become smaller, but remain significant (a difference 
of about $30-$50 depending on the size category as indicated in 
proposed Appendix E2).
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    \8\ 80 FR at 67357-58.
    \9\ See 78 FR 40403, 40404-05 (July 5, 2013).
    \10\ 85 FR 1378; and ``2016-12 Final Rule Technical Support 
Document: Energy Efficiency Program for Consumer Products and 
Commercial and Industrial Equipment: Portable Air Conditioners'' 
(``DOE TSD'') December 2016 at https://www.regulations.gov/document?D=EERE-2013-BT-STD-0033-0047.
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    In addition, DOE estimated average per-household annual electricity 
consumption for these products at approximately 804 kWh/yr for 
residential products, generating $105 in annual energy costs (at $0.13 
per kWh/hr).\11\ Therefore, energy labels are likely to assist 
consumers with their purchasing decisions by allowing them to compare 
the energy costs of competing models and, consequently, save 
significant money on their electric bills.
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    \11\ DOE TSD at Table 7.3.2.
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    In addition, there is no evidence that labeling is economically or 
technologically infeasible (i.e., that the costs of labeling 
substantially outweigh consumer benefits). Indeed, the burdens 
(discussed infra in the Paperwork Reduction Act section) of labeling 
are not likely to differ significantly from those for room air 
conditioners, which already have EnergyGuide labels.\12\
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    \12\ See 80 FR at 67357 and 81 FR at 62683.
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B. Proposed Label Requirements

    The proposed portable air conditioner label would be largely 
identical to the current room air conditioner label in content and 
format. As with the room air conditioner labels, the labels would 
appear on packaging, not the product itself. The proposed amendments 
also incorporate DOE's definition of ``portable air conditioner'' at 
section 305.3.\13\ The appendices to the proposed

[[Page 20220]]

Rule contain ranges specifically for portable air conditioners broken 
down into three size categories. The FTC staff derived these cost 
ranges based on DOE energy use data and has applied the same 
electricity cost rate ($0.13 kWh/hr) currently used for room air 
conditioner labels.\14\ As discussed in detail in the 2016 and 2017 
notices, the Commission does not propose combining the ranges for 
portable and room air conditioners because it is not clear whether 
consumers routinely compare the two product categories when 
shopping.\15\ However, consumers who want to compare the two product 
categories would be able to easily do so using the label's energy cost 
disclosure. In addition, consistent with requirements applicable to 
room air conditioners, the proposed amendments contain reporting 
requirements identical to those created by DOE for these products.
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    \13\ To effect new labeling requirements, the proposed 
amendments insert the term ``portable air conditioner'' next to 
``room air conditioner'' into appropriate paragraphs of the Rule as 
detailed in the amendatory language included in this notice.
    \14\ See DOE TSD, Chapter 3 at 24-25 and Ch. 5 at 5-20. Using 
estimates for the most energy consumptive models based on the DOE 
standards, the ranges by size category expressed in yearly energy 
consumption are: (1) Less than 6,000 Btu/hr: (375-753 kWh/yr), (2) 
6,000 to 7,999 Btu/hr: (663-916 kWh/yr), and (3) 8,000 Btu/yr or 
greater: (807-1034 kWh-yr).
    \15\ 81 FR at 62682; and 82 FR at 29231-29232.
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    Finally, the Commission proposes to establish an effective date for 
the label that coincides with the compliance date for DOE standards. 
Citing burdens associated with testing and labeling, industry comments 
earlier in this proceeding urged the Commission to synchronize any new 
labeling requirements with the DOE standards compliance date.\16\ The 
Commission seeks comments on the proposed effective date.
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    \16\ 82 FR 29231.
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III. Conforming Changes to Efficiency Descriptors for Central Air 
Conditioners

    The Commission also seeks comments on updates to the Rule's 
efficiency descriptors for central air conditioners in Section 305.20 
to conform to pending DOE changes. In 2017, as part of efficiency 
standards proceeding, DOE announced changes to the rating methods and 
associated efficiency descriptors for central air conditioners (e.g., 
from ``Seasonal Energy Efficiency Ratio (SEER)'' to ``Seasonal Energy 
Efficiency Ratio 2 (SEER2)'').\17\ The DOE changes become effective on 
January 1, 2023. To ensure consistency with the DOE standards, the 
Commission proposes to change all applicable references in Part 305, 
effective on January 1, 2023. Given the relatively small differences in 
the ratings produced by the old and the new rating methods, the 
Commission does not propose any additional changes to the label. The 
Commission also plans to update ranges in Appendix H and I as well as 
applicable numbers on the sample labels in Appendix L when updated data 
become available. The Commission seeks comments on all aspects of this 
proposal, including whether data is available to update the tables in 
Appendices H and I.
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    \17\ 82 FR 1786 (Jan. 6, 2017); and 82 FR 24211 (May 26, 2017).
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IV. Questions on Label Layout and Format Requirements

    The Commission also requests comment on whether we should revise 
Section 305.13--Layout, format, and placement for refrigerators, 
refrigerator-freezers, freezers, dishwashers, clothes washers, water 
heaters, room air conditioner, and pool heaters--and Section 305.20--
Labeling for central air conditioners, heat pumps, and furnaces--of the 
Rule. These sections address required disclosures and include detailed 
requirements for labeling of the covered products. For example, Section 
305.13(b) Layout specifies the trim size dimensions for labels, 
including the precise width and length (e.g., width 5\1/4\ to 5\1/2\ 
inches (13.34 cm. to 13.97 cm.) and the number of picas for the copy 
set (between 27 and 29); and the type style and setting. Section 
305.13(c) Type style and setting states that Arial series typeface or 
equivalent must be used exclusively, prohibits the use of hyphens and 
mandates that text ``be set flush left with two points leading except 
where otherwise indicated.'' Section 305.13 (e)(1) Adhesive labels 
states that:

    All adhesive labels should be applied so they can be easily 
removed without the use of tools or liquids, other than water, but 
should be applied with an adhesive with an adhesive capacity 
sufficient to prevent their dislodgment during normal handling 
throughout the chain of distribution to the retailer or consumer.

The provision then provides that the paper stock for the labels shall 
have a basic weight of not less than 58 pounds per 500 sheets (25'' x 
38'') or equivalent and includes a suggested minimum peel adhesive 
capacity: ``[a] minimum peel adhesion capacity for the adhesive of 12 
ounces per square inch is suggested, but not required if the adhesive 
can otherwise meet the above standard.''
    Section 305.20 of the Rule similarly contains requirements for 
layout; type style and setting; and label type with almost identical 
provisions addressing trim size, number of picas, requirement of Arial 
font, paper weight specifications, and includes a suggested minimum 
peel adhesion capacity.
    Freeing businesses from unnecessarily prescriptive requirements can 
benefit businesses and consumers. Other Commission Rules and Guides 
containing labeling requirements do not include the same level of 
detail regarding the content of the label. For example, the Rules and 
Regulations Under the Textile Fiber Products Identification Act, 16 CFR 
part 303, require that:


Sec.  303.15  Required label and method of affixing.

    (a) A label is required to be affixed to each textile product 
and, where required, to its package or container in a secure manner. 
Such label shall be conspicuous and shall be of such durability as 
to remain attached to the product and its package throughout any 
distribution, sale, resale and until sold and delivered to the 
ultimate consumer.


Similarly, the Commission's Guides for Select Leather and Imitation 
Leather Products, 16 CFR part 24, also address the form of disclosures:

    Sec.  24.2(g) Form of disclosures under this section. All 
disclosures described in this section should appear in the form of a 
stamping on the product, or on a tag, label, or card attached to the 
product, and should be affixed so as to remain on or attached to the 
product until received by the consumer purchaser. . . .


The Commission seeks comment on whether a more flexible provision would 
provide sufficient guidance to industry on expected labeling 
requirements and adequately protect consumers. Specifically, the 
Commission seeks comment on the following questions:
    Section 305.13 Layout, format, and placement of labels for 
refrigerators, refrigerator-freezers, freezers, dishwashers, clothes 
washers, water heaters, room air conditioners, and pool heaters.
    a. Should the Commission revise this section of the Rule to require 
only that the layout, type style, and setting be clear and conspicuous, 
and that the labels be sufficiently durable and applied with an 
adhesive whose capacity is sufficient to prevent dislodgment of the 
labels during normal handling throughout the chain of distribution to 
the retailer or consumer? Why or why not?
    b. With respect to the provisions regarding the adhesive for the 
labels, is the inclusion of the safe harbor regarding the suggested 
peel capacity in the current provision interpreted by industry as a 
required standard?
    c. What are the costs and benefits of the current provision for 
consumers and businesses?

[[Page 20221]]

    d. Would a more flexible provision provide sufficient guidance to 
industry on the expected labeling requirements?
    e. How would a more flexible provision affect the costs and 
benefits of the Rule for consumers and businesses, particularly small 
businesses?
    f. If this Section of the Rule were modified to include a more 
flexible provision, should use of the specific labeling requirements in 
the prior version be a form of safe harbor for industry? Why or why 
not?
    Section 305.20 Labeling for central air conditioning, heat pumps, 
and furnaces.
    a. Should the Commission revise this section of the Rule to require 
only that the layout, type style and setting be clear and conspicuous, 
and that the labels be sufficiently durable and applied with an 
adhesive whose capacity is sufficient to prevent dislodgment of the 
labels during normal handling throughout the chain of distribution to 
the retailer or consumer? Why or why not?
    b. With respect to the provisions regarding the adhesive for the 
labels, is the inclusion of the safe harbor regarding the suggested 
peel capacity in the current provision interpreted by industry as a 
required standard?
    c. What are the costs and benefits of the current provision for 
consumers and businesses?
    d. Would a more flexible provision provide sufficient guidance to 
industry on the expected labeling requirements?
    e. How would a more flexible provision affect the costs and 
benefits of the Rule for consumers and businesses, particularly small 
businesses?
    f. If this Section of the Rule were modified to include a more 
flexible provision, should use of the specific labeling requirements in 
the prior version be a form of safe harbor for industry? Why or why 
not?

V. Request for Comment

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before June 9, 2020. 
Write ``Portable Air Conditioners, Matter No. R611004'' on your 
comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the https://www.regulations.gov website.
    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. To make sure that the Commission considers your 
online comment, you must file it through https://www.regulations.gov, 
by following the instruction on the web-based form provided.
    If you file your comment on paper, write ``Portable Air 
Conditioners, Matter No. R611004'' on your comment and on the envelope, 
and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite 
CC-5610 (Annex C), 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 
C), 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, https://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--as legally required by FTC 
Rule 4.9(b)--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.
    Visit the FTC website to read this NPRM and the news release 
describing it. 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 
June 9, 2020. 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.
    Because written comments appear adequate to present the views of 
all interested parties, the Commission has not scheduled an oral 
hearing regarding these proposed amendments. Interested parties may 
request an opportunity to present views orally. If such a request is 
made, the Commission will publish a document in the Federal Register 
stating the time and place for such oral presentation(s) and describing 
the procedures that will be followed. Interested parties who wish to 
present oral views must submit a hearing request, on or before June 9, 
2020, in the form of a written comment that describes the issues on 
which the party wishes to speak. If there is no oral hearing, the 
Commission will base its decision on the written rulemaking record.

VI. Paperwork Reduction Act

    The current Rule contains recordkeeping, disclosure, testing, and 
reporting requirements that constitute information collection 
requirements as defined by the Paperwork Reduction Act (``PRA'').\18\ 
OMB has approved the Rule's existing information collection 
requirements through December 31, 2022 (OMB Control No. 3084-0069). The 
amendments include new labeling requirements for portable air 
conditioners that constitute information collections under the PRA. 
Accordingly, the Commission is seeking OMB clearance specific to the 
Rule amendments.\19\
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    \18\ 44 U.S.C. 3501 et seq; see also 5 CFR 1320.3(c).
    \19\ The PRA analysis for this rulemaking focuses strictly on 
the information collection requirements created by and/or otherwise 
affected by the amendments. Unaffected information collection 
provisions have previously been accounted for in past FTC analyses 
under the Rule and are covered by the current PRA clearance from 
OMB.
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    Burden estimates below are based on Census data, DOE figures and 
estimates,

[[Page 20222]]

public comments, general knowledge of manufacturing practices, and 
trade association advice and figures. The FTC estimates that there are 
about 150 basic models of portable air conditioners (i.e., units with 
essentially identical physical and electrical characteristics). In 
addition, FTC staff estimates that there are 45 portable air 
conditioner manufacturers and 1,500,000 portable air conditioner units 
shipped each year in the U.S. The FTC seeks comment on the following 
estimates:
    Reporting: The Rule requires that manufacturers of covered products 
annually submit 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, manufacturers may submit 
such information to DOE directly via the agency's Compliance 
Certification Management System, available at https://regulations.doe.gov/ccms, as provided by 10 CFR 429.12. Because 
manufacturers are already required to submit these reports to DOE, FTC 
staff estimates that any additional burden associated with providing 
the information to the FTC is minimal. FTC staff estimates that the 
average reporting burden for manufacturers of portable air conditioners 
will be approximately 15 hours per manufacturer. Based on this 
estimate, the annual reporting burden for manufacturers of portable air 
conditioners is 675 hours (15 hours x 45 manufacturers).\20\ Staff 
estimates that information processing staff, at an hourly rate of 
$16.24,\21\ will typically perform the required tasks, for an estimated 
annual labor cost of $10,962.
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    \20\ In earlier comments, AHAM (#681-00012) estimated that the 
data entry involved in filing reports with the FTC is not 
particularly burdensome, but estimated that other tasks involved in 
reporting (such as performing the required testing and gathering 
information) could take as long as 40 hours per manufacturer. As 
noted above, however, testing and reporting are required and 
accounted for in DOE regulations. As a result, staff estimates that 
the primary burdens associated with reporting are due to DOE 
requirements.
    \21\ These labor cost estimates 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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    Labeling: The proposed amendments require that manufacturers label 
portable air conditioners. The burden imposed by this requirement 
consists of the time needed to draft labels and incorporate them onto 
package designs. Since EPCA and the Rule specify the content and format 
for the required labels and FTC staff provide online label templates, 
manufacturers need only input the energy consumption figures and other 
product-specific information derived from testing. FTC staff estimates 
that the time to incorporate the required information into labels and 
label covered products is five hours per basic model. Accordingly, 
staff estimates that the approximate annual burden involved in labeling 
covered products is 750 hours [150 basic models x 5 hours]. Staff 
estimates that information processing staff, at an hourly rate of 
$16.24,\22\ will typically perform the required tasks, for an estimated 
annual labor cost of $12,180.
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    \22\ Id.
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    Testing: Manufacturers of portable air conditioners must test each 
basic model they produce to determine energy usage, but the majority of 
tests conducted are required by DOE rules. As a result, it is likely 
that only a small portion of the tests conducted are attributable to 
the Rule's requirements. In addition, 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. 
FTC staff estimates that manufacturers will require approximately 36 
hours for testing of portable air conditioners,\23\ and that 25% of all 
basic models are tested annually due to the Rule's requirements. 
Accordingly, the estimated annual testing burden for portable air 
conditioners is 1,368 hours ((150 basic models x 25%) x 36 hours). 
Staff estimates that engineering technicians, at an hourly rate of 
$28.37,\24\ will typically perform the required tasks, for an estimated 
annual labor cost of $38,300.
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    \23\ AHAM estimated manufacturers would require 32 hours per 
model for testing and up to 4 hours for preparing the test data. 
AHAM Comment, #681-0016.
    \24\ See supra note 20.
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    Recordkeeping: The Rule also requires manufacturers of covered 
products to retain records of test data generated in performing the 
tests to derive information included on labels. See 16 CFR 305.21. The 
FTC estimates that the annual recordkeeping burden for manufacturers of 
portable air conditioners will be approximately one minute per basic 
model to store relevant data. Accordingly, the estimated annual 
recordkeeping burden would be approximately 3 hours (150 basic models x 
one minute). Staff estimates that information processing staff, at an 
hourly rate of $16.24,\25\ will typically perform the required tasks, 
for an estimated annual labor cost of $50.
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    \25\ Id.
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    Online and Retail Catalog Disclosures: Staff estimates that there 
are approximately 400 sellers of products covered under the Rule who 
are subject to the Rule's catalog disclosure requirements. Staff has 
previously estimated that covered online and catalog sellers spend 
approximately 17 hours per year to incorporate relevant product data 
for products that are currently covered by the Rule. Staff estimates 
that the portable air conditioner requirements will add one additional 
hour per year in incremental burden per seller. Staff estimates that 
these additions will result in an incremental burden of 400 hours (400 
sellers x one hour annually). Staff estimates that information 
processing staff, at an hourly rate of $16.24,\26\ will typically 
perform the required tasks, for an estimated incremental annual labor 
cost of $6,496.
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    \26\ Id.
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    Estimated annual non-labor cost burden: Staff anticipates that 
manufacturers are not likely to require any significant capital costs 
to comply with the proposed amendments.

VII. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA'') \27\ requires that the 
Commission conduct an analysis of the anticipated economic impact of 
the proposed amendment on small entities. The RFA requires that the 
Commission provide an Initial Regulatory Flexibility Analysis 
(``IRFA'') with a proposed rule and a Final Regulatory Flexibility 
Analysis (``FRFA'') with a final rule, if any, unless the Commission 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities.\28\ The Commission does not 
anticipate that the proposed rule will have a significant economic 
impact on a substantial number of small entities, but it recognizes 
that some of the affected manufacturers may qualify as small businesses 
under the relevant thresholds. Therefore, based on available 
information, the Commission certifies that amending the Rules as 
proposed will not have a significant economic impact on a substantial 
number of small businesses.
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    \27\ 5 U.S.C. 601-612.
    \28\ 5 U.S.C. 605. The proposed conforming changes to central 
air conditioner descriptors will have no impact on the Rule's 
current burden.
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    The Commission estimates that the amendments will apply to 300 
online and paper catalog sellers of covered products and about 45 
portable air conditioner manufacturers. The Commission expects that 
approximately 150 of these various entities qualify as small 
businesses.

[[Page 20223]]

    Accordingly, this document serves as notice to the Small Business 
Administration of the FTC's certification of no effect. To ensure the 
accuracy of this certification, however, the Commission requests 
comment on whether the proposed rule will have a significant impact on 
a substantial number of small entities, including specific information 
on the number of entities that would be covered by the proposed rule, 
the number of these companies that are small entities, and the average 
annual burden for each entity. Although the Commission certifies under 
the RFA that the rule proposed in this notice would not, if 
promulgated, have a significant impact on a substantial number of small 
entities, the Commission has determined, nonetheless, that it is 
appropriate to publish an IRFA in order to inquire into the impact of 
the proposed rule on small entities. Therefore, the Commission has 
prepared the following analysis:

A. Description of the Reasons That Action by the Agency Is Being Taken

    The Commission is proposing expanded product coverage and 
additional improvements to the Rule to help consumers in their 
purchasing decisions for portable air conditioners.

B. Statement of the Objectives of, and Legal Basis for, the Proposed 
Rule

    The objective of the rule is to improve the effectiveness of the 
current labeling program. The legal basis for the Rule is the Energy 
Policy and Conservation Act (42 U.S.C. 6292 et seq.).

C. Small Entities To Which the Proposed Rule Will Apply

    Under the Small Business Size Standards issued by the Small 
Business Administration, appliance manufacturers qualify as small 
businesses if they have fewer than 500 employees. Catalog sellers 
qualify as small businesses if their sales are less than $8.0 million 
annually. The Commission estimates that there are approximately 150 
entities subject to the proposed rule's requirements that qualify as 
small businesses.\29\ The Commission seeks comment and information with 
regard to the estimated number and nature of small business entities 
for which the proposed rule would have a significant economic impact.
---------------------------------------------------------------------------

    \29\ 81 FR 62681 (Sept. 12, 2016).
---------------------------------------------------------------------------

D. Projected Reporting, Recordkeeping and Other Compliance Requirements

    The changes under consideration would slightly increase reporting 
or recordkeeping requirements associated with the Commission's labeling 
rules as discussed above. The amendments likely will increase 
compliance burdens by extending the labeling requirements to portable 
air conditioners. The Commission assumes that the label design change 
will be implemented by graphic designers.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other federal statutes, 
rules, or policies that duplicate, overlap, or conflict with the 
proposed rule. The Commission invites comment and information on this 
issue.

F. Significant Alternatives to the Proposed Rule

    The Commission seeks comment and information on the need, if any, 
for alternative compliance methods that, consistent with the statutory 
requirements, would reduce the economic impact of the rule on small 
entities. For example, the Commission is currently unaware of the need 
to adopt any special provisions for small entities. However, if such 
issues are identified, the Commission could consider alternative 
approaches such as extending the effective date of these amendments for 
catalog sellers to allow them additional time to comply beyond the 
labeling deadline set for manufacturers. If the comments filed in 
response to this notice identify small entities that are affected by 
the proposed rule, as well as alternative methods of compliance that 
would reduce the economic impact of the rule on such entities, the 
Commission will consider the feasibility of such alternatives and 
determine whether they should be incorporated into the final rule.

VIII. Communications by Outside Parties to the Commissioners or Their 
Advisors

    Written communications and summaries or transcripts of oral 
communications respecting the merits of this proceeding, from any 
outside party to any Commissioner or Commissioner's advisor, will be 
placed on the public record. See 16 CFR 1.26(b)(5).

IX. Proposed Rule Language

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.

    For the reasons stated above, the Commission proposes to amend part 
305 of title 16 of the Code of Federal Regulations as follows:

PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER 
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')

0
1. The authority citation for Part 305 continues to read as follows:

    Authority:  42 U.S.C. 6294.

PART 305--[AMENDED]

0
2. In part 305, revise all references to ``seasonal energy efficiency 
ratio (SEER)'' to read ``seasonal energy efficiency ratio 2''; revise 
all references to ``SEER'' to read ``SEER2''; revise all references to 
``heating seasonal performance factor'' to read ``heating seasonal 
performance factor 2''; revise all references to ``HSPF'' to read 
``HSPF2''; revise all references to ``Energy Efficiency Ratio'' to read 
``Energy Efficiency Ratio 2''; and revise all references to ``EER'' to 
read ``EER2.''
0
3. In Sec.  305.2,
0
a. Redesignate paragraph (l)(23) as (24);
0
b. Add new paragraph (23), and
0
c. Revise paragraph (p).
    The revisions read as follows:


Sec.  305.2   Definitions.

* * * * *
    (l) * * *
    (23) Portable air conditioners.
* * * * *
    (p) Energy efficiency rating means the following product-specific 
energy usage descriptors: Annual fuel utilization efficiency (AFUE) for 
furnaces; combined energy efficiency ratio (CEER) for room and portable 
air conditioners; seasonal energy efficiency ratio (SEER) for the 
cooling function of central air conditioners and heat pumps; heating 
seasonal performance factor (HSPF) for the heating function of heat 
pumps; airflow efficiency for ceiling fans; and, thermal efficiency 
(TE) for pool heaters, as these descriptors are determined in 
accordance with tests prescribed under section 323 of the Act (42 
U.S.C. 6293). These product-specific energy usage descriptors shall be 
used in satisfying all the requirements of this part.
* * * * *
0
4. In Sec.  305.3, add paragraph (j) to read as follows:


Sec.  305.3   Description of appliances and consumer electronics.

* * * * *

[[Page 20224]]

    (j) Portable air conditioner means a portable encased assembly, 
other than a packaged terminal air conditioner, room air conditioner, 
or dehumidifier, that delivers cooled, conditioned air to an enclosed 
space, and is powered by single-phase electric current. It includes a 
source of refrigeration and may include additional means for air 
circulation and heating.
0
5. In Sec.  305.7, add paragraph (e)(3) to read as follows:


Sec.  305.7   Prohibited Acts.

* * * * *
    (e) * * *
    (3) The requirements of this part shall not apply to any portable 
air conditioner produced before January 10, 2025.
* * * * *
0
6. Amend Sec.  305.10 by revising paragraph (f) to read as follows:


Sec.  305.10   Determinations of capacity.

* * * * *
    (f) Room air conditioners and portable air conditioners. The 
capacity shall be the cooling capacity in Btu per hour, as determined 
according to appendix F to 10 CFR part 430, subpart B, but rounded to 
the nearest value ending in hundreds that will satisfy the relationship 
that the energy efficiency value used in representations equals the 
rounded value of capacity divided by the value of input power in watts. 
If a value ending in hundreds will not satisfy this relationship, the 
capacity may be rounded to the nearest value ending in 50 that will.
* * * * *
0
7. In Sec.  305.11, revise paragraph (b)(1) to read as follows:


Sec.  305.11   Submission of data.

* * * * *
    (b)(1) All data required by Sec.  305.11(a) except serial numbers 
shall be submitted to the Commission annually, on or before the 
following dates:

------------------------------------------------------------------------
                                                  Deadline for data
              Product category                        submission
------------------------------------------------------------------------
Refrigerators..............................  Aug. 1.
Refrigerators-freezers.....................  Aug. 1.
Freezers...................................  Aug. 1.
Central air conditioners...................  July 1.
Heat pumps.................................  July 1.
Dishwashers................................  June 1.
Water heaters..............................  May 1.
Room air conditioners......................  July 1.
Portable air conditioners..................  Feb. 1.
Furnaces...................................  May 1.
Pool heaters...............................  May 1.
Clothes washers............................  Oct. 1.
Fluorescent lamp ballasts..................  Mar. 1.
Showerheads................................  Mar. 1.
Faucets....................................  Mar. 1.
Water closets..............................  Mar. 1.
Ceiling fans...............................  Mar. 1.
Urinals....................................  Mar. 1.
Metal halide lamp fixtures.................  Sept. 1.
General service fluorescent lamps..........  Mar. 1.
Medium base compact fluorescent lamps......  Mar. 1.
General service incandescent lamps.........  Mar. 1.
Televisions................................  June 1.
------------------------------------------------------------------------

* * * * *
0
8. Amend Sec.  305.13 by revising the section heading and adding 
paragraph (e)(3) to read as follows:


Sec.  305.13   Layout, format, and placement of labels for 
refrigerators, refrigerator-freezers, freezers, dishwashers, clothes 
washers, water heaters, room air conditioners, portable air 
conditioners, and pool heaters.

* * * * *
    (e) * * *
* * * * *
    (3) Package labels for certain products. Labels for electric 
instantaneous water heaters shall be printed on or affixed to the 
product's packaging in a conspicuous location. Labels for room air 
conditioners produced on or after October 1, 2019 and portable air 
conditioners produced on or after January 10, 2025, shall be printed on 
or affixed to the principal display panel of the product's packaging. 
The labels for electric instantaneous water heaters, room air 
conditioners, and portable air conditioners shall be black type and 
graphics on a process yellow or other neutral contrasting background.
* * * * *
0
9. In Sec.  305.18 revise the section heading to read as follows:


Sec.  305.18   Label content for room air conditioners and portable air 
conditioners.

* * * * *
0
10. Amend Sec.  305.20 by revising paragraphs (g)(11) through (14) to 
read as follows:


Sec.  305.20   Labeling for central air conditioners, heat pumps, and 
furnaces.

* * * * *
    (g) * * *
    (11) For any single-package air conditioner with a minimum Energy 
Efficiency Ratio 2 (EER2) of at least 10.6, any split system central 
air conditioner with a rated cooling capacity of at least 45,000 Btu/h 
and minimum efficiency ratings of at least 13.8 SEER2 and 11.2 EER2 or 
at least 15.2 SEER2 and 9.8 EER2, and any split-system central air 
conditioners with a rated cooling capacity less than 45,000 Btu/h and 
minimum efficiency ratings of at least 14.3 SEER2 and 11.7 EER2 or at 
least 15.2 SEER2 and 9.8 EER2, the label must contain the following 
regional standards information:
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed in all U.S. 
states and territories.
    (ii) For split systems, a statement that reads:
    Energy Efficiency Ratio 2 (EER2): The installed system's minimum 
EER2 is __.
    (iii) For single-package air conditioners, a statement that reads:
    Energy Efficiency Ratio 2 (EER2): This model's EER2 is [__].
    (12) For any split system central air conditioner with a rated 
cooling capacity of at least 45,000 Btu/h and minimum efficiency 
ratings of at least 13.8 SEER2 but lower than 11.2 EER2 or at least 
15.2 SEER2 but lower than 9.8 EER2, and any split-system central air 
conditioners with a rated cooling capacity less than 45,000 Btu/h and 
minimum efficiency ratings of at least 14.3 SEER2 but lower than 11.7 
EER2 or at least 15.2 SEER2 but lower than 9.8 EER2, the label must 
contain the following regional standards information.
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed only in: AK, 
AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME, 
MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC, 
SD, TN, TX, UT, VA, VT, WA, WV, WI, WY and U.S. territories. Federal 
law prohibits installation of this unit in other states.
    (ii) A map appropriate for the model and accompanying text as 
illustrated in the sample label 7 in appendix L of this part.
    (iii) A statement that reads:
    Energy Efficiency Ratio 2 (EER2): The installed system's minimum 
EER2 is __.
    (13) For any split system central air conditioner with a rated 
cooling capacity of at least 45,000 Btu/h and a minimum rated 
efficiency rating less than 13.8 SEER2, and any split-system central 
air conditioners with a rated cooling capacity less than 45,000 Btu/h 
and minimum efficiency ratings of less than 14.3 SEER2, the label must 
contain the following regional standards information:
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed only in: AK, 
CO, CT, ID, IL, IA, IN, KS, MA, ME, MI, MN, MO, MT, ND, NE, NH, NJ, NY, 
OH, OR, PA, RI, SD, UT, VT, WA, WV, WI, and WY.

[[Page 20225]]

Federal law prohibits installation of this unit in other states.
    (ii) A map appropriate for the model and accompanying text as 
illustrated in the sample label 7 in appendix L of this part.
    (iii) A statement that reads:
    Energy Efficiency Ratio 2 (EER2): The installed system's minimum 
EER2 is __.
    (14) For any single-package air conditioner with a minimum EER2 
below 10.6, the label must contain the following regional standards 
information:
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed only in: AK, 
AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME, 
MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC, 
SD, TN, TX, UT, VA, VT, WA, WV, WI, WY and U.S. territories. Federal 
law prohibits installation of this unit in other states.
    (ii) A map appropriate for the model and accompanying text as 
illustrated in the sample label 7 in appendix L of this part.
* * * * *
0
11. In Sec.  305.27 revise paragraph (a)(1)(i) to read as follows:


Sec.  305.27   Paper catalogs and websites.

    (a) * * *
    (1) Content.
    (i) Products required to bear EnergyGuide or Lighting Facts labels. 
All websites advertising covered refrigerators, refrigerator-freezers, 
freezers, room air conditioners, portable air conditioners, clothes 
washers, dishwashers, ceiling fans, pool heaters, central air 
conditioners, heat pumps, furnaces, general service lamps, specialty 
consumer lamps (for products offered for sale after May 2, 2018), and 
televisions must display, for each model, a recognizable and legible 
image of the label required for that product by this part. The website 
may hyperlink to the image of the label using the sample EnergyGuide 
and Lighting Facts icons depicted in appendix L of this part. The 
website must hyperlink the image in a way that does not require 
consumers to save the hyperlinked image in order to view it.
* * * * *
0
12. Redesignate Appendix E to Part 305 as Appendix E1 to Part 305 and 
add Appendix E2 to Part 305 to read as follows:

  Appendix E2 to Part 305--Portable Air Conditioners Range Information
------------------------------------------------------------------------
                                             Range of estimated annual
  Seasonally adjusted cooling capacity      energy costs (dollars/year)
              range (Btu/h)              -------------------------------
                                                Low            High
------------------------------------------------------------------------
Less than 6,000 Btu.....................             $48             $98
6,000 to 7,999 Btu......................              87             120
8,000 or greater Btu....................             104             135
------------------------------------------------------------------------

0
13. Revise Appendix K2 to Part 305 to read as follows:

  Appendix K2 to Part 305--Representative Average Unit Energy Costs for
   Dishwasher, Room Air Conditioner, Portable Air Conditioners Labels
 [This Table contains the representative unit energy costs that must be
 utilized to calculate estimated annual energy cost disclosures required
 under Sec.  Sec.   305.16, 305.18, and 305.27 for dishwashers, room air
   conditioners, and portable air conditioners. This Table is based on
    information published by the U.S. Department of Energy in 2017.]
------------------------------------------------------------------------
                                                         As required by
        Type of energy          In commonly used terms      DOE test
                                                            procedure
------------------------------------------------------------------------
Electricity...................  [cent]13.00/kWh \1\...  $.1300/kWh.
Natural Gas...................  $1.05/therm \2\ or      $0.00001052/Btu.
                                 $10.86/MCF \3\.
No. 2 Heating Oil.............  $2.59/gallon \4\......  $0.00001883/Btu.
Propane.......................  $1.53/gallon \5\......  $0.00001672/Btu.
Kerosene......................  $3.01/gallon \6\......  $0.00002232/Btu.
------------------------------------------------------------------------
\1\ kWh stands for kilowatt hour. kWh = 3,412 Btu.
\2\ therm = 100,000 Btu.
\3\ MCF stands for 1,000 cubic feet. For the purposes of this table, one
  cubic foot of natural gas has an energy equivalence of 1,032 Btu
  (British thermal units).
\4\ For the purposes of this table, one gallon of No. 2 heating oil has
  an energy equivalence of 137,561 Btu.
\5\ For the purposes of this table, one gallon of liquid propane has an
  energy equivalence of 91,333 Btu.
\6\ For the purposes of this table, one gallon of kerosene has an energy
  equivalence of 135,000 Btu.


    By direction of the Commission.

April J. Tabor,
Acting Secretary.

Concurring Statement of Commissioner Christine S. Wilson Energy 
Labeling Rule

    I support the Commission's decision to issue a Federal Register 
Notice seeking comment on the Energy Labeling Rule. The Notice seeks 
comment on proposed requirements for the EnergyGuide labels for 
portable air conditioners and proposes conforming amendments to reflect 
upcoming Department of Energy changes to efficiency descriptors for 
central air conditioners. In addition, the Notice seeks comment on the 
more highly detailed and prescriptive aspects of the Rule. In a prior 
request for comment on this Rule, I questioned whether these 
prescriptive requirements were necessary and encouraged the Commission 
to rethink its approach to the scope and detail of these

[[Page 20226]]

requirements.\1\ I am pleased that the Commission is seeking comment on 
this issue.
---------------------------------------------------------------------------

    \1\ See Dissenting Statement of Commissioner Christine S. Wilson 
on the Notice of Proposed Rulemaking: Energy Labeling Rule (Dec. 10, 
2018), https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed.
---------------------------------------------------------------------------

    Specifically, this Notice seeks comment on whether a more flexible 
approach to labeling obligations would provide sufficient guidance to 
businesses while simultaneously fulfilling the Commission's mandate 
under the statute.\2\ The current requirements are highly prescriptive. 
For example, the Rule specifies the trim size dimensions for labels, 
including the precise width and length (e.g., width 5\1/4\ to 5\1/2\ 
inches (13.34 cm to 13.97 cm)); the number of picas for the copy set 
(between 27 and 29); the type style and setting; the weight of the 
paper stock on which the labels are printed (not less than 58 pounds 
per 500 sheets (25'' x 38'') or equivalent); and a suggested minimum 
peel adhesive capacity of 12 ounces per square inch. These highly 
prescriptive requirements depart significantly from the approach 
employed by other Commission Rules and Guides that contain labeling 
requirements. For example, the Rules and Regulations Under the Textile 
Fiber Products Identification Act provide simply that the ``label shall 
be conspicuous and shall be of such durability as to remain attached to 
the product and its package throughout any distribution, sale, resale 
and until sold and delivered to the ultimate consumer.'' \3\ The 
Commission's Guides for Select Leather and Imitation Leather Products 
similarly require that the label ``should be affixed so as to remain on 
or attached to the product until received by the consumer purchaser.'' 
\4\
---------------------------------------------------------------------------

    \2\ Energy Policy and Conservation Act, 42 U.S.C. 6295.
    \3\ 16 CFR part 303.15.
    \4\ 16 CFR part 24.2(g).
---------------------------------------------------------------------------

    While I have great faith in markets to produce the best results for 
consumers, the prerequisite of healthy competition is sometimes absent. 
In limited situations, regulations can help address market failures. 
But for regulations to succeed in restoring market forces, they must 
eliminate the market failure in the most narrow and targeted manner 
possible. Regulatory ``fixes'' that extend beyond simply correcting the 
problem may upset the balance of forces in the rest of the market and, 
ultimately, may harm consumers.\5\ That is why I share the President's 
goal of eliminating unnecessary and burdensome regulatory 
requirements.\6\
---------------------------------------------------------------------------

    \5\ See, e.g., Howard Beales, et al., ``The Proper Role of Rules 
in a Gloriously Unruly Economy,'' released by the Regulatory 
Transparency Project of the Federalist Society, August 28, 2019, 
https://regproject.org/paper/the-proper-role-of-rules-in-a-gloriously-unruly-economy/ (discussing large and unintended 
consequences of burdensome regulations).
    \6\ Executive Order 13,771, 82 FR 9339 (Feb. 3, 2017) (imposing 
a rule that for every new regulation created, two must be 
eliminated).
---------------------------------------------------------------------------

    The Trump administration has called for agencies to carefully 
review regulations. I am proud that the FTC has had a long tradition of 
proactively reviewing our rules to ensure our regulatory program 
protects consumers while seeking to avoid the unnecessary imposition of 
costs on businesses.\7\ In the last few years, the FTC has repealed or 
streamlined significantly a number of Rules and Guides. For example, 
the FTC recently repealed the Picture Tube Rule, which the Commission 
determined was no longer necessary to prevent deceptive claims 
regarding the size of television screens.\8\ The FTC also revised the 
Jewelry Guides, removing outdated provisions as well as lifting 
restrictions on the marketing of gold-content products.\9\ Just last 
year, the FTC rescinded the Nursery Guides--rules governing the sale of 
outdoor plants--because they had outlived their utility for consumers 
and industry.\10\
---------------------------------------------------------------------------

    \7\ In the 1990s, the Commission rescinded 24 Guides 
(addressing, e.g., fallout shelters, the decorative wall paneling 
industry, and the dog and cat food industry) and 13 trade rules, 
including those concerning the misuse of ``automatic'' or terms of 
similar import as descriptive of household electric sewing machines; 
deceptive advertising and labeling as to size of tablecloths and 
related products; and the Frosted Cocktail Glass Rule.
    \8\ See https://www.ftc.gov/policy/federal-register-notices/16-cfr-part-410-deceptive-advertising-sizes-viewable-pictures-shown.
    \9\ See https://www.ftc.gov/public-statements/2018/07/statement-basis-purpose-final-revisions-jewelry-guides.
    \10\ See Press Release, Fed. Trade Comm'n., ``FTC Approves 
Proposal Rescinding Nursery Guides,'' (June 4, 2019), https://www.ftc.gov/news-events/press-releases/2019/06/ftc-approves-proposal-rescinding-nursery-guides.
---------------------------------------------------------------------------

    I applaud the FTC's regular, systematic review of all of its rules 
and guides on a rotating basis. When the Commission conducts a review 
of a Rule or Guide, we regularly ask if the regulation is still 
necessary. We ask about the costs and benefits to businesses and 
consumers; conflicts with state, local, federal or international laws; 
whether consumer perceptions have changed; and the effect, if any, that 
changes in relevant technological, economic or environmental conditions 
have had on Rules and Guides. This process lends transparency to the 
Commission's regulatory review. The Commission is receptive and 
responsive to the comments, often making regulatory revisions to 
address changing market forces.
    Freeing businesses from unnecessarily prescriptive requirements 
benefits consumers. Although the Commission long ago abandoned some of 
the most egregious instances of invasive regulatory zeal that earned it 
the sobriquet of the ``second most powerful legislature in 
Washington,'' \11\ forswearing new mistakes is not enough. Accordingly, 
I am pleased to see the Agency reviewing the more prescriptive aspects 
of this Rule and am committed to an ongoing practice of identifying 
opportunities to streamline our regulations by updating, modifying, or 
eliminating outdated, burdensome, or unnecessary provisions.
---------------------------------------------------------------------------

    \11\ See, e.g., J. Howard Beales, III & Timothy J. Muris, FTC 
Consumer Protection at 100: 1970s Redux or Protecting Markets to 
Protect Consumers?, 83 Geo. Wash. L. Rev. 2157, 2159 (2015) (quoting 
Jean Carper, The Backlash at the FTC, Wash. Post, Feb. 6, 1977, at 
C1).

[FR Doc. 2020-06960 Filed 4-9-20; 8:45 am]
 BILLING CODE 6750-01-P