[Federal Register Volume 87, Number 143 (Wednesday, July 27, 2022)]
[Proposed Rules]
[Pages 45047-45052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16071]



[[Page 45047]]

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FEDERAL TRADE COMMISSION

16 CFR Part 432


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

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') seeks 
public comment on proposed amendments to the Trade Regulation Rule 
Relating to Power Output Claims for Amplifiers Utilized in Home 
Entertainment Products (``Amplifier Rule'' or ``Rule''). The proposal 
requires sellers making power-related claims to calculate power output 
using uniform testing methods to allow consumers to easily compare 
amplifier sound quality. Additionally, the Commission seeks comment on 
the normal usage of multichannel home theater amplifiers.

DATES: Written comments must be received on or before September 26, 
2022. Parties interested in an opportunity to present views orally 
should submit a request to do so as explained below, and such requests 
must be received on or before September 26, 2022.

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 ``Amplifier Rule Review, 
Project No. P974222'' on your comment and file your comment online 
through https://www.regulations.gov. 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 A), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Jock Chung, Attorney, (202) 326-2984, 
[email protected], Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Commission promulgated the Amplifier Rule in 1974 to address 
sellers' failure to provide essential pre-purchase information.\1\ 
Specifically, manufacturers of home entertainment amplifiers described 
their products' performance through power output claims (e.g., ``25 
Watts.''). However, because manufacturers tested amplifiers under a 
variety of conditions and used incompatible procedures, consumers could 
not effectively use the wattage claims to compare the power 
characteristics of different brands or determine how individual 
amplifiers would perform. The Commission noted ``[s]ince the mid-50's 
the [audio] industry'' had failed ``to agree upon a single industry 
standard which is meaningful to the consumer.'' \2\ Accordingly, the 
Rule standardized the measurement and disclosure of some, but not all, 
performance characteristics of power amplification equipment to permit 
consumers to ``assure that all performance characteristics are based 
upon conditions of normal use by the consumer, i.e., conditions which 
are encountered in the home.'' \3\
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    \1\ 39 FR 15387 (May 3, 1974).
    \2\ 39 FR 15388.
    \3\ 39 FR 15392. Merely testing amplifiers under identical test 
conditions will not produce useful consumer information if the test 
conditions differ significantly from normal use conditions.
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    Under the Rule, sellers making certain power claims (i.e., for 
power output, power band or power frequency response, or distortion 
characteristics) must disclose power output measured under specified 
test conditions; for example, amplifiers must be tested at an ambient 
air temperature of at least 77 [deg]F (25 [deg]C).\4\ The Rule, 
however, does not specify values for three test conditions that 
strongly affect power output measurements: load impedance,\5\ rated 
power band or power frequency response,\6\ and Total Harmonic 
Distortion (THD).\7\ Instead, it requires sellers to disclose these 
conditions when making certain power claims in product brochures and 
manufacturer specification sheets.\8\ The original Rule required these 
disclosures wherever sellers made these claims; \9\ however, in 2000, 
the Commission eliminated disclosure requirements in ``media 
advertising.'' \10\
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    \4\ This requirement prevents testing with cooling equipment 
while driving amplifiers to high power outputs that would overheat 
amplifiers during normal use. 16 CFR 432.3(d).
    \5\ The current Amplifier Rule, as amended, sets a default load 
impedance of 8 ohms for measuring power output, but permits 
measurement at a different load impedance if the amplifier is 
designed primarily for that impedance. 16 CFR 432.2(a). ``[T]he 
lower the load impedance utilized in testing . . . equipment, the 
higher the output of the amplifier.'' 39 FR 15387, 15390 (May 3, 
1974). For example, an amplifier that outputs 550 watts into 2 ohms 
might only output 350 watts into 4 ohms and 215 watts into 8 ohms. 
See https://geoffthegreygeek.com/speaker-impedance-changes-amplifier-power/.
    \6\ High quality amplifiers can output a broad range of 
frequencies, such as the sounds of all the instruments in an 
orchestra, at high power. Lower quality amplifiers can only output 
certain frequencies, such as 1 kHz (e.g., the sound of a trumpet), 
at high power, and output lower frequencies (e.g., a timpani or 
bass) or higher frequencies (e.g., a piccolo) at lower power. Power 
output measurements made at a single frequency or over a limited 
power band do not permit consumers to distinguish such amplifiers. 
The Commission has stated ``a measurement [on a 1 kHz test signal] 
is inherently deceptive to the consumer who expects that a piece of 
equipment represented as being capable of a stated power output will 
deliver that power output across its full audio range.'' 39 FR 
15387, 15390 (May 3, 1974).
    \7\ The output of an amplifier driven to higher power will 
distort and sound different from the original performance. When the 
Commission promulgated the Rule, it received evidence that 
distortion limits during testing affect power output measurements; 
for example, the same amplifier might output 20 watts if driven only 
until the output reached 0.5% THD, and output 30 watts when driven 
to 5% THD. The Rule requires disclosure of the THD during testing so 
consumers can determine the value of power output measurements. 39 
FR 15387, 15391-92 (May 3, 1974).
    \8\ 16 CFR 432.2(b).
    \9\ 16 CFR 432.2 (1974).
    \10\ 65 FR 81232 (Dec. 22, 2000).
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    Additionally, the Rule requires manufacturers to fully drive all 
``associated'' channels to the rated per channel power when measuring 
the power output of sound amplification equipment designed to amplify 
two or more channels simultaneously.\11\ When the Commission 
established the Rule, stereo amplifiers were the only equipment subject 
to this requirement, and, importantly, normal consumer use drove both 
``associated'' channels equally. This requirement prevented 
manufacturers from deceiving consumers by driving only one channel in 
testing, and thus inflating power output.\12\
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    \11\ Associated channels are channels driven continuously during 
normal consumer usage, so measuring power output with associated 
channels fully driven reflects normal consumer usage. 65 FR 81232, 
81236 (Dec. 22, 2000).
    \12\ Most amplifiers distribute power from one power supply to 
all channels being driven (playing sound) at a particular moment, so 
the total power output of multiple channels is limited by that power 
supply. A stereo amplifier tested with one channel fully driven 
would distribute all of the power from its power supply to that one 
channel. The power supply would not be able to direct twice as much 
power to two channels, as consumers might expect from a measurement 
made on only one channel.
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    The introduction of ``home theater'' equipment with five or more 
channels improved consumer amplification choices but raised questions 
regarding which of these new channels were ``associated'' under the 
Rule.\13\

[[Page 45048]]

Consequently, in 2000 the Commission issued a supplemental notice of 
proposed rulemaking (``SNPR'') soliciting evidence on which channels 
multichannel amplifiers fully drive during normal usage.\14\ The 
Commission also sought comment on its proposal to amend the definition 
of ``associated channels'' to reflect real-world use. The Commission 
received only one comment in response. The Consumer Electronics 
Association (``CEA'') noted there was no industry consensus regarding 
measuring power output of multichannel amplifiers.
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    \13\ When the Commission promulgated the Rule, it noted the 
possibility of amplifiers with more than two channels and the 
importance of testing such amplifiers appropriately. It stated ``4-
channel sound systems have been introduced which, if rated according 
to their total power output, would, in the Commission's view, have 
an even greater tendency to deceive the average consumer.'' 39 FR 
15388, 15390 (May 3, 1974).
    \14\ 65 FR 80798 (Dec. 22, 2000).
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    On January 15, 2002, at CEA's request, the Commission deferred 
action to allow industry to form a consensus on procedures for testing 
multichannel amplifiers.\15\ Although CEA subsequently issued a 
standard, designated EIA/CEA-490-A, ``Test Methods of Measurement for 
Audio Amplifiers,'' the Commission did not find widespread adoption of 
this standard. With no industry standard in place and only CEA's 
comment on the record, the Commission decided not to amend the Rule. 72 
FR 13052 (March 20, 2007).
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    \15\ 67 FR 1915 (Jan. 15, 2002).
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    On February 27, 2008, the Commission published notification in the 
Federal Register seeking comment on the Amplifier Rule as part of its 
periodic review of the Rule to determine its effectiveness and 
impact.\16\ Sony Electronics Inc. (``Sony'') urged the Commission not 
to amend the Rule to define all channels of a multichannel home theater 
system as ``associated.'' Sony explained ``the additional channels in 
today's 5.1 and 7.1 home theater systems are designed to carry vastly 
different sounds at vastly different levels.'' Thus, Sony asserted 
driving all channels simultaneously during testing would not represent 
actual use and would drive up consumer prices.\17\ On January 26, 2010, 
based on the record at that time, the Commission again retained the 
Rule in its current form, finding a continuing need for the Rule and 
that it imposed minimal costs on industry. Although the Commission did 
not amend the test procedures for multichannel amplifiers, it provided 
guidance confirming it would be a violation of the Rule to make power 
output claims for multichannel amplifiers utilized in home 
entertainment products unless those representations are substantiated 
by measurements made with, at a minimum, the left front and right front 
channels driven to full rated power.\18\
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    \16\ 73 FR 10403 (Feb. 27, 2008).
    \17\ Sony, https://www.ftc.gov/policy/public-comments/comment-534789-00003.
    \18\ 75 FR 3985, 3987 (Jan. 26, 2010).
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    Pursuant to its ongoing regulatory review schedule, on December 18, 
2020, the Commission published an advance notice of proposed rulemaking 
(ANPR) seeking comment on the Amplifier Rule. 85 FR 82391 (Dec. 18, 
2020). The ANPR sought comments regarding possible Rule improvements, 
its continuing need, costs and benefits, and whether, and how, 
technological or economic changes have affected the Rule.

II. Comments Received in Response to the ANPR

    The Commission received 530 unique comments in response to its 
ANPR.\19\ The commenters primarily consisted of amplifier and speaker 
manufacturers, amplifier sellers and purchasers, and engineers or 
journalists in the audio field.
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    \19\ These comments are available at https://www.regulations.gov/document/FTC-2020-0087-0001/comment. In this 
document, commenters are referred to by name and the number assigned 
to each comment; for example, the comment from Garry Grube, assigned 
ID FTC-2020-0087-0187 on www.regulations.gov, is referred to as 
``Garry Grube (187).''
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A. Support for Retaining the Rule

    All but one commenter supported retaining the Rule.\20\ Commenters 
explained the Amplifier Rule enables consumers to make informed, 
``apples-to-apples'' comparisons, and creates incentives for 
manufacturers to produce superior amplifiers.\21\ Commenters further 
asserted if the Commission were to rescind the Rule, the audio 
amplifier marketplace would return to the ``Wild West'' conditions that 
initially led to its promulgation.\22\ Additionally, commenters noted 
the Rule imposes insignificant or no costs on industry.\23\ Commenters 
noted changes in the audio marketplace have increased the need for the 
Rule. For example, Garry Grube (187) stated the shift from purchases in 
stores, where consumers could listen to amplifiers, to online purchases 
increases consumers' reliance on power output measurements. David R. 
(424) stated larger modern living spaces require more powerful 
amplifiers, increasing the importance of reliable power output ratings. 
Based on this near universal support, the Commission concludes there is 
a continuing need for the Rule.
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    \20\ The one commenter did not provide a substantive comment.
    \21\ See, e.g., Norman Parks (105) (``Without these FTC 
guidelines in effect, consumers have no possible way of honestly 
comparing products at time of purchase. In addition, retailers and 
manufacturers are not able to present products fairly to consumers, 
and might be inclined to sell inferior products with inflated 
specifications, harming consumers.'') and John Richardson (524) 
(``In 1974 the FTC dragged all manufacturers, the world over, 
kicking and screaming, to the honesty table. No longer could they 
brazenly advertise fictitious and deceptive power output and other 
claims if they were to sell their products in the US. . . . 
[C]onsumers the world over benefitted from that Gold Standard in 
truth. A golden age of quality products were [sic] built and 
marketed, which still stand the test of time and remain highly 
coveted by collectors and people interested in sustainable, high 
performance electronics. The 1974 Amplifier rule created a level 
playing field for manufacturers and a requirement to comply with 
straightforward, easily understood and meaningful set of 
parameters.'').
    \22\ See, e.g., Richard Swerdlow (15) (``At present, buyers of 
these products can only compare their power output because they are 
rated by the same method. If that is abandoned, there would be no 
standard method. Manufacturers would be free to invent their own 
rating methods. Buyers would be unable to compare products from 
different manufacturers, and they would be easily misled by 
advertising exaggerations.'') and Thomas Estell (128) (``As someone 
who was a consumer of home entertainment products in the 1960s and 
1970s, I urge you to renew this consumer protection rule and avoid 
the `Wild West' marketplace that created this rule.'').
    \23\ See, e.g., comment from Toby Montezuma (549) (``[T]his Rule 
itself does of course impose some additional cost compared to simply 
making up big numbers in the marketing department. However, the 
costs of equipment and time to make simple power tests are quite 
minimal and indeed are inherent in the process of designing 
amplifiers, so we can say there is really no additional cost at 
all.'').
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B. Recommended Amendments

    Although commenters overwhelmingly supported the Amplifier Rule, 
some recommended amendments. Specifically, commenters asked the 
Commission to specify values for load impedance, power band, and THD 
during testing; and to define the associated channels in multichannel 
amplifiers used for home theaters.
a. Comments Recommending Specifying Test Conditions
    Numerous commenters urged the Commission to require uniform power 
band, load impedance, and THD limits for measuring amplifier power 
output. Specifically, one hundred and seventy three commenters proposed 
standardizing testing with at least one of the following 
specifications: a load impedance of 8 ohms, a power band of 20 Hz to 20 
kHz, and a THD limit of less than 0.1%.\24\ These commenters generally 
asserted that uniform test conditions would address consumer confusion 
resulting from advertising of

[[Page 45049]]

unrealistic power outputs.\25\ For example, commenter David Rich (548) 
noted ``online product literature is showing values up to twice the 
power'' compared to tests conducted under conditions that reflect 
normal consumer usage.
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    \24\ Twenty-seven commenters recommended specifying the load 
impedance; 36 recommended specifying the power band to be 20 Hz to 
20 kHz; 26 recommended specifying a THD or requiring a low THD, and 
159 recommended, in conjunction with a recommendation regarding 
multichannel amplifier testing, specifying values for all three test 
conditions.
    \25\ Alan Mcconnaughey [sic] (5) commented ``[m]ore rules should 
be [enacted] to require 8 ohm ratings so everything is apples do 
[sic] apples.'' Jim Mccabe [sic] (378) commented that amplifiers 
should be tested ``driven from 20 to 20k'' to ``stop the lying.'' 
Danny Anonymous (4325) commented ``[t]o eliminate confusion, just 
use Output Watts@1%THD.'' See also, e.g., comments from Dennis 
Murphy, Philharmonic Audio (525) and David Rich (548).
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    Consistent with these comments, FTC staff found this problem was 
ubiquitous in the marketplace. Specifically, staff found dozens of 
examples of the same equipment advertised with significantly different 
power output (e.g., some sellers advertised a particular model with 45 
watts output per channel, while others advertised the same model with 
100 watts per channel \26\). Using specification sheets on 
manufacturers' websites, staff confirmed these widely divergent output 
claims result from different testing parameters.
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    \26\ See, e.g., https://www.crutchfield.com/p_580TX8220/Onkyo-TX-8220.html. (viewed on Oct. 1, 2021); https://www.amazon.com/Onkyo-TX-8220-Channel-Receiver-Bluetooth/dp/B075P831VY/ref=sr_1_1?dchild=1&keywords=Onkyo+TX-8220&qid=1633096775&sr=8-1 
(viewed on Oct. 1, 2021; advertisement subsequently revised).
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    Based on the comments and staff's review, the Commission finds 
consumers are unlikely to understand the complex power output 
disclosures marketers are making under the current Rule.\27\ 
Specifically, FTC staff's review of advertisements shows, in some 
cases, amplifiers are advertised with widely differing power outputs 
due to testing conditions. For example, FTC staff reviewed 
advertisements for two amplifiers and found that--when tested under 
identical conditions \28\--Amplifier A (75 watts) had a higher power 
output than Amplifier B (45 watts).\29\ However, staff's review found 
advertisements in which Amplifier B was advertised as outputting 100 
watts because it was tested under more favorable conditions.\30\ These 
types of confusing disclosures are likely to deceive many consumers 
who, when comparing two amplifiers, are likely to reasonably conclude 
that an amplifier advertised as outputting ``75 watts'' is less 
powerful than an amplifier advertised as outputting ``100 watts.''
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    \27\ Staff has surveyed numerous academic articles finding 
consumers are not able to effectively comprehend highly technical 
disclosures; no surveyed research found to the contrary. See, e.g., 
The Failure of Mandated Disclosure, Omri Ben-Shahar and Carl E. 
Schneider, University of Pennsylvania Law Review, Vol. 159, No. 3 
(February 2011), pp. 647-749, http://www.jstor.org/stable/41149884. 
The Commission promulgated the Rule so consumers would not need to 
perform complex calculations to derive useful power ratings. It 
found prior to the Rule, consumers had to ``deduct 10 to 25 percent 
[from the ``music power'' ratings previously claimed] and divide by 
2'' to derive power ratings that reflected normal usage. 39 FR 
15387, 15388 (May 3, 1974). Additionally, the Commission has 
previously concluded ``an insufficient number of consumers . . . 
understand the meaning and significance of . . . disclosures 
concerning power bandwidth and impedance'' 63 FR 37238 (July 9, 
1998).
    \28\ The manufacturer's specification sheets indicated the 
testing conditions were 8 ohms, 20 Hz to 20 kHz, 0.08% THD, which 
several commenters have recommended as standard testing conditions 
the Commission should incorporate into the Rule.
    \29\ See Amplifier A, at https://www.bestbuy.com/site/denon-avr-s650h-audio-video-receiver-5-2-channel-150w-x-5-4k-uhd-home-theater-surround-sound-2019--streaming-black/6333563.p?skuId=6333563 (viewed 
on Oct. 1, 2021; advertisement subsequently revised); Amplifier B 
specification sheet, at https://www.onkyousa.com/product/tx-8220/ 
(viewed on Oct. 1, 2021).
    \30\ See Amplifier B, at https://www.amazon.com/Onkyo-TX-8220-Channel-Receiver-Bluetooth/dp/B075P831VY/ref=sr_1_1?dchild=1&keywords=Onkyo+TX-8220&qid=1633096775&sr=8-1 
(viewed on Oct. 1, 2021; advertisement subsequently revised). 
Compare https://www.denon.com/en-us/product/av-receivers/avr-s650h?gclid=EAIaIQobChMI9L67n5ax8wIVweDICh3obgLAEAAYASAAEgLGAfD_BwE 
(viewed on Oct. 4, 2021) with https://www.onkyousa.com/product/tx-8220/ (viewed on Oct. 1, 2021). In this case, Amplifier A was 
measured with a load impedance of 8 ohms, a power band of 20 Hz to 
20 kHz, and a Total Harmonic Distortion limit of 0.08%, while 
Amplifier B was measured as outputting 100 watts with a load 
impedance of 6 ohms, a power band of 1 kHz, and a THD limit of 10%. 
However, Amplifier B outputs only 45 watts when measured under the 
same conditions as Amplifier A (8 ohms 20 Hz to 20 kHz,, 0.08% THD).
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    In the past, the Commission has attempted to rectify this problem 
by requiring sellers to disclose load impedance, rated power band or 
power frequency response, and Total Harmonic Distortion (THD). The Rule 
first required these disclosures in all ``media advertising'' and later 
just in brochures and specification sheets. However, returning to this 
stricter disclosure regime is unlikely to adequately address the 
problem in the modern marketplace. Specifically, given the technical 
nature of the disclosed terms, and the complex calculations needed to 
convert the disclosure into apples-to-apples comparisons of power 
output claims, these disclosures are unlikely to prevent most consumers 
from being deceived. The problem is amplified because consumers shop 
online more frequently, providing fewer opportunities to listen to 
equipment before purchasing it.
    Therefore, to eliminate widespread claims regarding power output 
that are likely to confuse or deceive consumers, the Commission 
proposes amending the Amplifier Rule to simplify power output 
measurements by standardizing test parameters. Specifically, the 
Commission proposes requiring the following standard testing 
parameters: load impedance of 8 ohms, a power band of 20 Hz to 20 kHz, 
and a THD limit of less than 0.1%. Staff's review found amplifiers are 
generally designed to drive a nominal load impedance of 8 ohms; 20 Hz 
to 20 kHz covers the normal range of human hearing; \31\ and 0.1% THD 
does not audibly distort a signal. Several commenters suggested these 
parameters, and many manufacturers' specification sheets already 
disclose power outputs tested at 8 ohms, 20 Hz to 20 kHz, and at THD 
limits of or slightly below 0.1%, e.g., at 0.08%.
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    \31\ The Commission further proposes to exclude amplifiers in 
self-powered subwoofers used in systems that employ two or more 
amplifiers dedicated to different portions of the audio frequency 
spectrum from being tested over a power band of 20 Hz to 20 kHz. The 
Commission has previously recognized that while ``stand-alone . . . 
amplifiers . . . must reproduce signals covering the full musical 
frequency bandwidth,'' ``self-powered subwoofer systems . . . 
incorporate crossover circuitry that filters out frequencies above 
the bass range,'' and the amplifiers in self-powered subwoofer 
systems only amplify bass frequencies. 64 FR 38610, 38613-4 (July 
19, 1999). Consequently, the Commission proposes to limit the power 
band for testing self-powered subwoofer amplifiers to the 
frequencies within those amplifiers' intended operating bandwidth. 
The proposed amendments would require testing amplifiers in self-
powered full-range loudspeakers, such as full-range Bluetooth 
speakers that output more than two watts, over a power band of 20 Hz 
to 20 kHz.
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b. Comments Recommending Amending the Definition of Associated Channels 
for Testing Multichannel Home Theater Amplifiers
    Numerous commenters recommended amending the Rule to clarify which 
channels are associated for testing multichannel home theater 
amplifiers. Several commenters recommended defining all channels of a 
multichannel amplifier as associated, i.e., testing with all channels 
fully driven.\32\ However, they failed to explain how fully driving all 
channels related to normal usage.\33\ As noted above, in 2010, the 
Commission considered and rejected a similar amendment because home 
theater systems are designed to carry different sounds at different 
levels on different channels. Therefore, driving all

[[Page 45050]]

channels simultaneously during testing would not represent normal use, 
potentially incentivizing manufacturers to overbuild systems and raise 
prices without any consumer benefit.\34\
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    \32\ Forty-six commenters recommended defining all channels of a 
multichannel amplifier as associated.
    \33\ For example, Jayanath Gomes (140) commented ``[a]ll 
Channels driven simultaneously is the best measure for multi-channel 
AV receivers or Multi-Channel amplifiers.'' Larry Hyvonen (507) 
commented the proposed amendment would let consumers ``know the true 
power output of all channels driven continually.'' Dennis Dugger 
(448) commented that amending the Rule to require all channels 
driven would stop manufacturers from ``making false and misleading 
output claims.''
    \34\ Sony commented during the earlier rule review that ``to 
maintain the same power ratings if it were necessary to drive all 
channels simultaneously during testing, virtually all manufacturers 
would have to change the sound platform of their amplifiers and 
receivers to be able to sustain such output,'' which ``would drive 
up the costs of production considerably, [and] in turn drive up the 
ultimate cost to consumers.'' 75 FR 3985, 3987 (Jan. 26, 2010).
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    Other commenters recommended driving the three front channels to 
full rated power and all other channels to one-eighth rated power.\35\ 
Again, however, these comments did not provide evidence that these 
parameters approximated normal use.
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    \35\ One hundred fifty-nine commenters recommended this 
specification. For example, Jason Hines (18) stated ``I wish the FTC 
to . . . amend the rule for today's multi-channel amplifier products 
with the following measurement: 3CH driven, full power bandwidth, 8 
ohms, at specified % THD+N (max 0.1% THD+N) with remaining channels 
driven at 1/8th power.''
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    Accordingly, the Commission seeks evidence regarding:
    (1) Which channels multichannel amplifiers fully drive 
simultaneously during normal usage?
    (2) Which channels multichannel amplifiers partially drive during 
normal usage, and how hard such amplifiers drive these channels?
    (3) What test procedures would best measure multichannel amplifier 
power output during normal usage? \36\
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    \36\ The Commission has stated ``[t]he controlling consideration 
in determining the proper interpretation of `associated channels' is 
whether audio/video receivers and amplifiers would, when operated by 
consumers in the home at high playback volume, be required to 
deliver full rated power output in all channels simultaneously, or 
whether such maximum stress conditions would more likely be 
restricted at any given moment of time to certain sub-groupings of 
available channels.'' 65 FR 80798, 80800 (Dec. 22, 2000). In that 
notification, the Commission tentatively proposed three designations 
for ``associated channels'' and stated that any Rule amendment would 
be based upon a determination by the Commission of which channels 
multichannel home theater amplifiers drive to full rated power 
simultaneously when reproducing multichannel program material in the 
home at high playback volume.
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XI. Request for Comments

    The Commission seeks comments on all aspects of the proposed 
requirements, including the likely effectiveness of the proposed 
amendments in helping the Commission combat unfair or deceptive 
practices in the marketing of amplifiers utilized in home entertainment 
equipment. The Commission also seeks comment on various alternatives to 
the proposed regulation, to further address disclosures. It also seeks 
comment on other approaches, such as the publication of additional 
consumer and business education. The Commission seeks any suggestions 
or alternative methods for improving current requirements. Commenters 
should provide any available evidence and data that supports their 
position, such as empirical data, consumer perception studies, and 
consumer complaints.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before September 26, 
2022. Include ``Amplifier Rule Review, Project No. P974222'' 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.
    Because of the public health emergency in response to the COVID-19 
outbreak and the agency's heightened security screening, postal mail 
addressed to the Commission will be subject to delay. We strongly 
encourage you to submit your comments online through the https://www.regulations.gov website. To ensure that the Commission considers 
your online comment, please follow the instructions on the web-based 
form.
    If you file your comment on paper, write ``Amplifier Rule Review, 
Project No. P974222'' 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 A), 
Washington, DC 20580.
    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'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 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 ``[t]rade secret or any commercial or 
financial information which . . . is privileged or confidential''--as 
provided in 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 request for comment and the news 
release describing it. The FTC Act and other laws 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 it receives on or before 
September 26, 2022. 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.

XII. Rulemaking Procedures

    The Commission finds that using expedited procedures in this 
rulemaking will serve the public interest. Expedited procedures will 
support the Commission's goals of clarifying and updating existing 
regulations without undue expenditure of resources, while ensuring that 
the public has an opportunity to submit data, views, and arguments on 
whether the Commission should amend the Amplifier Rule. Pursuant to 16 
CFR 1.20, the Commission will use the following procedures: (1) 
publishing this notice of proposed rulemaking; (2) soliciting written 
comments on the Commission's proposals to amend the Rule; (3) holding 
an informal hearing, if requested by interested parties; and (4) 
announcing final Commission action in a document published in the 
Federal Register.

[[Page 45051]]

    The Commission, in its discretion, has not chosen to schedule an 
informal hearing and has not made any initial designations of disputed 
issues of material fact necessary to be resolved at an informal 
hearing. Interested persons who wish to make an oral submission at an 
informal hearing must file a comment in response to this notification 
and submit a statement identifying their interests in the proceeding 
and describing any proposals regarding the designation of disputed 
issues of material fact to be resolved at the informal hearing, on or 
before September 26, 2022. 16 CFR 1.11. Such requests, and any other 
motions or petitions in connection with this proceeding, must be filed 
with the Secretary of the Commission.

XIII. Preliminary Regulatory Analysis and Regulatory Flexibility Act 
Requirements

    Under Section 22 of the FTC Act, 15 U.S.C. 57b-3, the Commission 
must issue a preliminary regulatory analysis for a proceeding to amend 
a rule if the Commission: (1) estimates the amendment will have an 
annual effect on the national economy of $100 million or more; (2) 
estimates the amendment will cause a substantial change in the cost or 
price of certain categories of goods or services; or (3) otherwise 
determines the amendment will have a significant effect upon covered 
entities or upon consumers. The Commission has preliminarily determined 
the proposed amendments to the Amplifier Rule will not have such 
effects on the national economy, on the cost of sound amplification 
equipment, or on covered businesses or consumers. In developing these 
proposals, the Commission has sought to minimize prescriptive 
requirements and provide flexibility to sellers in meeting the Rule's 
objectives. The Commission, however, requests comment on the economic 
effects of the proposed amendments.
    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612, 
requires that the Commission conduct an analysis of the anticipated 
economic impact of the proposed amendment on small entities. The 
purpose of a regulatory flexibility analysis is to ensure that an 
agency considers potential impacts on small entities and examines 
regulatory alternatives that could achieve the regulatory purpose while 
minimizing burdens on small entities. The RFA requires 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.
    The Commission believes the proposed amendment would not have a 
significant economic impact upon small entities, although it may affect 
a substantial number of small businesses. Specifically, the proposed 
change in the disclosure requirements should not significantly increase 
the costs of small entities that manufacture or import power 
amplification equipment for use in the home. Therefore, based on 
available information, the Commission certifies that amending the Rule 
as proposed will not have a significant economic impact on a 
substantial number of small businesses. Although the Commission 
certifies under the RFA the proposed amendment would not, if 
promulgated, have a significant impact on a substantial number of small 
entities, the Commission has determined, nonetheless, it is appropriate 
to publish an IRFA to inquire into the impact of the proposed amendment 
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 proposes amending the Rule to standardize testing 
parameters to assist consumers in understanding power output 
disclosures for amplifiers and to eliminate claims regarding power 
output that are likely to deceive consumers.

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

    The Commission promulgated the Rule pursuant to section 18 of the 
FTC Act, 15 U.S.C. 57a. The proposed amendment would standardize 
testing parameters for amplifiers to prevent deceptive claims regarding 
power output and assist consumers in understanding power output 
disclosures.

C. Small Entities to Which the Proposed Amendments Will Apply

    The Rule covers manufacturers and importers of power amplification 
equipment for use in the home. Under the Small Business Size Standards 
issued by the Small Business Administration, audio and video equipment 
manufacturers qualify as small businesses if they have 750 or fewer 
employees.\37\ The Commission's staff estimates a substantial number of 
the entities covered by the Rule likely qualify as small businesses.
---------------------------------------------------------------------------

    \37\ U.S. Small Business Administration, Table of Size Standards 
(Eff. Aug. 19, 2019).
---------------------------------------------------------------------------

D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The Commission is proposing amendments designed to simplify the 
Rule and provide clearer amplifier power output measurements for 
consumers to use to compare products. While the amendments modify the 
Rule's testing requirements, FTC staff do not anticipate these changes 
will result in higher costs for covered entities because manufacturers 
already test power output for their amplifiers, in many cases testing 
amplifiers under the conditions specified by the proposed amendments.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other Federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
proposed amendment.

F. Significant Alternatives to the Proposed Amendment

    The Commission has not proposed any specific small entity exemption 
or other significant alternatives because the proposed amendment would 
not impose any new requirements or compliance costs.

XIV. Paperwork Reduction Act

    The current Rule contains various provisions that constitute 
information collection requirements as defined by 5 CFR 1320.3(c), the 
definitional provision within the Office of Management and Budget 
(``OMB'') regulations implementing the Paperwork Reduction Act 
(``PRA''). OMB has approved the Rule's existing information collection 
requirements through April 30, 2024 (OMB Control No. 3084-0105). As 
described above, the Commission is proposing amendments to simplify 
power output measurements by standardizing test parameters. The 
amendments do not change the frequency of the testing or disclosure 
requirements specified under the Rule. Accordingly, FTC staff do not 
anticipate this change will result in additional burden hours or higher 
costs for manufacturers who already test power output for their 
amplifiers, in many cases testing amplifiers under the conditions 
specified by the proposed amendments. Therefore, the amendments do not 
require further OMB clearance.

[[Page 45052]]

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

    Pursuant to FTC Rule 1.18(c)(1), the Commission has determined that 
communications with respect to the merits of this proceeding from any 
outside party to any Commissioner or Commissioner's advisor shall be 
subject to the following treatment. Written communications and 
summaries or transcripts of oral communications shall be placed on the 
rulemaking record if the communication is received before the end of 
the comment period. They shall be placed on the public record if the 
communication is received later. Unless the outside party making an 
oral communication is a member of Congress, such communications are 
permitted only if advance notice is published in the Weekly Calendar 
and Notice of ``Sunshine'' Meetings.\38\
---------------------------------------------------------------------------

    \38\ See 15 U.S.C. 57a(i)(2)(A); 16 CFR 1.18(c).
---------------------------------------------------------------------------

List of Subjects in 16 CFR Part 432

    Amplifiers, Home entertainment products, Trade practices.

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

PART 432--POWER OUTPUT CLAIMS FOR AMPLIFIERS UTILIZED IN HOME 
ENTERTAINMENT PRODUCTS

0
1. The authority citation for part 432 continues to read:

    Authority: 38 Stat. 717, as amended; (15 U.S.C. 41-58).

0
2. Revise Sec.  432.2 to read as follows:


Sec.  432.2  Required disclosures.

    Whenever any direct or indirect representation is made of the power 
output, power band or power frequency response, or distortion 
characteristics of sound power amplification equipment, the following 
disclosure shall be made clearly, conspicuously, and more prominently 
than any other representations or disclosures permitted under this 
part: The manufacturer's rated minimum sine wave continuous average 
power output, in watts, per channel (if the equipment is designed to 
amplify two or more channels simultaneously) at an impedance of 8 ohms, 
measured with all associated channels fully driven to rated per channel 
power. Provided, however, when measuring maximum per channel output of 
self-powered combination speaker systems that employ two or more 
amplifiers dedicated to different portions of the audio frequency 
spectrum, such as those incorporated into combination subwoofer-
satellite speaker systems, only those channels dedicated to the same 
audio frequency spectrum should be considered associated channels that 
need be fully driven simultaneously to rated per channel power.
0
3. Revise Sec.  432.3(e) to read as follows:


Sec.  432.3  Standard test conditions.

* * * * *
    (e) Rated power shall be obtainable at all frequencies within the 
rated power band of 20 Hz to 20 kHz without exceeding 0.1% of total 
harmonic distortion after input signals at said frequencies have been 
continuously applied at full rated power for not less than five (5) 
minutes at the amplifier's auxiliary input, or if not provided, at the 
phono input. Provided, however, that for amplifiers utilized as a 
component in a self-powered subwoofer in a self-powered subwoofer-
satellite speaker system that employs two or more amplifiers dedicated 
to different portions of the audio frequency spectrum, the rated power 
shall be obtainable at all frequencies within the subwoofer amplifier's 
intended operating bandwidth without exceeding 0.1% of total harmonic 
distortion after input signals at said frequencies have been 
continuously applied at full rated power for not less than five (5) 
minutes at the amplifier's auxiliary input, or if not provided, at the 
phono input.
* * * * *

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-16071 Filed 7-26-22; 8:45 am]
BILLING CODE 6750-01-P