[Federal Register Volume 89, Number 114 (Wednesday, June 12, 2024)]
[Rules and Regulations]
[Pages 49797-49802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12744]



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 Rules and Regulations
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  Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / 
Rules and Regulations  

[[Page 49797]]



FEDERAL TRADE COMMISSION

16 CFR Part 432

RIN 3084-AB62


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

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
issues final amendments to its Trade Regulation Rule Relating to Power 
Output Claims for Amplifiers Utilized in Home Entertainment Products 
(``Amplifier Rule'' or ``Rule''). The amendments require sellers making 
power-related claims to calculate power output using uniform testing 
methods to allow consumers to easily compare amplifier sound quality; 
prescribe disclosure language that improves differentiation between 
power output claims that comply with the Rule's testing methods and 
those that do not; and modernize as well as clarify Rule language 
considering the foregoing modifications. Additionally, the amendments 
formalize prior Commission guidance on applying the Rule to 
multichannel amplifiers.

DATES: This Rule is effective on August 12, 2024.

FOR FURTHER INFORMATION CONTACT: Hong Park, Attorney, (202) 326-2158, 
[email protected], Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW, Mail Stop CC-
6316, Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose 1
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    \1\ This document is published pursuant to section 18 of the FTC 
Act, 15 U.S.C. 57a, 16 CFR 1.14, and 5 U.S.C. 551 et seq. This 
authority permits the Commission to promulgate, modify, and repeal 
trade regulation rules that define with specificity acts or 
practices that are unfair or deceptive in or affecting commerce 
within the meaning of section 5(a)(1) of the FTC Act, 15 U.S.C. 
45(a)(1). The Commission undertook this rulemaking proceeding as 
part of the Commission's ongoing program of evaluating trade 
regulation rules and industry guides to determine their 
effectiveness, impact, cost, and need.
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I. Background

    The Commission promulgated the Amplifier Rule in 1974 to address 
sellers' failure to provide essential pre-purchase information 
regarding the performance of home entertainment amplifiers.\2\ 
Specifically, manufacturers described their products' performance 
through power output claims (e.g., ``25 Watts''), but tested their 
amplifiers under a variety of conditions and procedures that rendered 
different results for the same products. Thus, consumers could not 
effectively use advertised wattage claims to compare brands or 
determine how individual amplifiers would perform. At the time, 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.'' \3\ Accordingly, the Rule standardized the 
measurement and disclosure of some, but not all, performance 
characteristics of power amplification equipment to ``assure that . . . 
performance characteristics are based upon conditions of normal use by 
the consumer, i.e., conditions which are encountered in the home.'' \4\
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    \2\ 39 FR 15387 (May 3, 1974).
    \3\ Id. at 15388.
    \4\ Id. at 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).\5\ The Rule, 
however, does not specify values for three test conditions that 
significantly affect power output measurements: (1) load impedance; \6\ 
(2) rated power band or power frequency response; \7\ and (3) total 
harmonic distortion (``THD'').\8\ Instead, the original Rule required 
sellers to disclose these values when making certain power claims.\9\ 
In 2000, the Commission eliminated this disclosure requirement in 
``media advertising'' but retained the requirement in product brochures 
and manufacturer specification sheets.\10\
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    \5\ This requirement prevents testing with cooling equipment 
while driving amplifiers to high power outputs that would overheat 
amplifiers during normal use. See 16 CFR 432.3(d) (``The 
preconditioning and testing shall be in still air and an ambient 
temperature of at least 77 [deg]F (25 [deg]C).'').
    \6\ Prior to these amendments, the Rule set a default load 
impedance of 8 ohms for measuring power output but permitted 
measurement at a different load impedance if the amplifier is 
designed primarily for that impedance. 16 CFR 432.2(a) (2023). 
``[T]he lower the load impedance utilized in testing . . . 
equipment, the higher the output of the amplifier.'' 39 FR at 15390. 
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 
Speaker Impedance Changes Amplifier Power, Geoff the Grey Geek, 
https://geoffthegreygeek.com/speaker-impedance-changes-amplifier-power/ (last visited Mar. 11, 2024).
    \7\ 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 between these 
quality differences in 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 at 15390.
    \8\ The output of an amplifier driven to increasingly 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 reaches 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. See 39 FR at 15391-92.
    \9\ 16 CFR 432.2 (1974).
    \10\ 65 FR 81232 (Dec. 22, 2000).
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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.\11\ Specifically, the 
ANPR sought comments regarding possible Rule improvements, the 
continuing need for the Rule, the Rule's costs and benefits, as well as 
whether,

[[Page 49798]]

and how, technological or economic changes have affected the Rule.
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    \11\ 85 FR 82391 (Dec. 18, 2020).
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    In response, the Commission received 550 unique comments, including 
comments from amplifier and speaker manufacturers, amplifier sellers 
and purchasers, and engineers or journalists in the audio field.\12\ 
All but one commenter supported retaining the Rule.\13\ Based on this 
near universal support, the Commission concluded there was a continuing 
need for the Rule.
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    \12\ These comments can be found at https://www.regulations.gov/document/FTC-2020-0087-0001/comment. The Commission received a total 
of 1,133 comments. However, only 550 of these comments responded to 
the ANPR or discussed any aspect of the Rule. In this publication, 
commenters are referred to by name, the acronym for the prior 
publication to which the commenter responded (either ANPR, NPRM, or 
SNPRM), and the number assigned to each comment. For example, the 
comment to the ANPR from Garry Grube, which was assigned ID FTC-
2020-0087-0187 on www.regulations.gov, is referred to as ``Garry 
Grube (ANPR 187).''
    \13\ The one commenter did not provide a substantive comment.
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    Although commenters overwhelmingly supported the Rule, some 
recommended amendments. For example, many commenters urged the 
Commission to require uniform power band, load impedance, and THD 
limits to prevent manipulation of these three test conditions.\14\
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    \14\ For instance, Alan McConnaughey (ANPR 5) commented, ``More 
rules should be [enacted] to require 8 ohm ratings so everything is 
apples do [sic] apples.'' Jim McCabe (ANPR 378) commented that 
amplifiers should be tested ``driven from 20 to 20k'' to ``stop the 
lying.'' Danny Anonymous (ANPR 435) commented that, ``[t]o eliminate 
confusion, just use Output Watts@1%THD.'' See also, e.g., comments 
from Dennis Murphy, Philharmonic Audio (ANPR 525) and David Rich 
(ANPR 548). Overall, 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.
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    Consistent with these comments, FTC staff found such manipulation 
ubiquitous in the marketplace. Specifically, FTC staff found dozens of 
examples of the same equipment advertised with significantly different 
power output claims.\15\ Using specification sheets on manufacturers' 
websites, FTC staff confirmed these widely divergent claims resulted 
from different testing parameters.
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    \15\ See, e.g., Onkyo TX-8220, Crutchfield, https://www.crutchfield.com/p_580TX8220/Onkyo-TX-8220.html (last visited on 
Oct. 1, 2021); Onkyo TX-8220, Amazon.com, 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 FTC staff's review, the Commission found 
requiring disclosure of test conditions is unlikely to prevent 
deceptive power output claims. Test conditions are highly technical and 
require complex calculations to convert claims into apples-to-apples 
power output comparisons. Thus, the average consumer is unlikely to 
understand or use the disclosed test conditions to avoid deception.\16\ 
This problem is exacerbated by the fact that consumers now shop online 
more frequently, providing fewer opportunities to listen to equipment 
before purchasing.
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    \16\ FTC staff has surveyed numerous academic articles finding 
that consumers are not able to effectively comprehend highly 
technical disclosures; no surveyed research found to the contrary. 
See, e.g., Omri Ben-Shahar & Carl E. Schneider, The Failure of 
Mandated Disclosure, 159 U. Pa. L. Rev. 647 (2011), available at 
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 that, 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 at 15388. Additionally, 
the Commission has previously concluded that ``an insufficient 
number of consumers . . . understand the meaning and significance of 
. . . disclosures concerning power bandwidth and impedance.'' 63 FR 
37238, 37239 (July 9, 1998).
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    To address widespread misleading power output claims, the 
Commission published a notice of proposed rulemaking (``NPRM''), 
proposing an amendment to the Amplifier Rule to standardize the three 
test conditions.\17\ Specifically, the Commission proposed the 
following standard values: (1) a load impedance of 8 ohms; (2) a power 
band of 20 Hz to 20 kHz (except for self-powered subwoofer systems); 
and (3) a THD limit of less than 0.1%. FTC 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; \18\ 
and 0.1% THD does not audibly distort a signal. Several commenters 
suggested these test conditions, 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%.
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    \17\ 87 FR 45047 (July 27, 2022).
    \18\ The Commission's NPRM proposal excluded 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, 38613-14 (July 
19, 1999). Consequently, the Commission proposed to limit the power 
band for testing self-powered subwoofer amplifiers to the 
frequencies within those amplifiers' intended operating bandwidth. 
The NPRM proposal required 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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    The Commission received nine unique comments in response to the 
NPRM.\19\ While most of the commenters either broadly supported the 
regulation of power output claims or the standardization of test 
conditions,\20\ two expressed concern about the THD limit. They 
explained many vacuum tube and solid state amplifiers ``would not be 
able to qualify for a power output claim'' under the proposed 0.1% 
limit.\21\ Accordingly, they recommended the Commission allow 
manufacturers to disclose their chosen THD level rather than set a 
fixed limit. Additionally, one commenter recommended replacing the term 
``total harmonic distortion'' with ``THD with noise,'' or ``THD+N,'' to 
align the Rule with the Commission's original intent.\22\
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    \19\ These comments can be found at https://www.regulations.gov/document/FTC-2022-0048-0001. The Commission received a total of 11 
comments. However, two of these comments neither responded to the 
NPRM nor discussed any aspect of the Rule. A third comment raised 
concerns outside the scope of this proceeding (e.g., health risks 
posed by amplifiers) and did not supply any supporting evidence. See 
Chelsy Graves (NPRM 5).
    \20\ See, e.g., Travis Surprenant (NPRM 2) (``It needs to be a 
uniform rating to ensure consumers are comparing products on a level 
playing field.''); Peiyan Wang (NPRM 4) (``A uniform testing method 
could provide convenience for consumers to compare different 
products.''); Kiet Hoang (NPRM 10) (``I believe it needs to be a 
uniform testing method in order to provide the customers to compare 
the products on a comparable basis.''). Only one commenter opposed 
the Commission's proposal in its entirety, contending that the 
proposal is unnecessary because most component manufacturers 
``generally already use [the Commission's proposed] parameters to 
test their devices'' and is irrelevant because consumers shopping 
for integrated audio devices do not evaluate specifications such as 
power output. Consumer Technology Association (``CTA'') (NPRM 8). 
The Commission found evidence in the marketplace at odds with CTA's 
views and reaffirmed the need to standardize power output test 
conditions in its SNPRM. See 88 FR 56780, 56782 (Aug. 21, 2023).
    \21\ Dennis Murphy (NPRM 9) (stating that all of the tube 
amplifiers reviewed by the audio publication Stereophile over the 
past 10 years and many solid state amplifiers could not meet the 
0.1% maximum THD requirement); see also E.W. Blackwood (NPRM 7) 
(``0.1% total harmonic distortion (THD) is too restrictive and would 
have an impact on many manufacturers.'').
    \22\ E.W. Blackwood (NPRM 7).
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    In response to these comments, the Commission issued a supplemental 
notice of proposed rulemaking (``SNPRM'') that modified its NPRM 
proposal standardizing test conditions in three ways.\23\ First, it 
proposed

[[Page 49799]]

updating the Rule's reference to ``total harmonic distortion'' with 
``total harmonic distortion plus noise'' (``THD+N'').\24\ Second, the 
Commission proposed raising the THD+N limit to 1.0% to address 
commenters' concern that a significant number of amplifiers on the 
market cannot qualify for any power output claim under the NPRM 
proposal's 0.1% limit.\25\ Third, the Commission proposed requiring 
sellers to designate power output disclosures under Sec.  432.2 with 
the text ``FTC Power Output Rating.'' Further, if sellers make Optional 
Disclosures under Sec.  432.4, they would have to state ``This rating 
does not meet the FTC standard,'' to help consumers distinguish between 
the two.\26\
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    \23\ 88 FR 56780, 56786 (Aug. 21, 2023).
    \24\ Id. at 56783 (discussing proposed 16 CFR 432.3(e)).
    \25\ Id.
    \26\ Id. at 56784 (discussing proposed 16 CFR 432.2 and 432.4).
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    Additionally, the Commission proposed making four non-substantive 
changes to update and clarify the language of the Rule: (1) eliminating 
unnecessary language in Sec.  432.4 that currently incorporates Sec.  
432.2's requirement to disclose the test conditions; (2) consolidating 
all standardized test conditions into a single section, Sec.  432.3, to 
make the Rule easy to use; (3) modifying Sec.  432.3(e) to clarify 
amplifiers must meet the standard for impedance, power band, and THD+N 
at all levels from 250mW to the disclosed level; and (4) updating Sec.  
432.4's prohibition against using an ``asterisk'' to make required 
disclosures to reflect modern usage.\27\
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    \27\ Id. (discussing proposed 16 CFR 432.2 to 432.4).
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    Finally, the Commission proposed formalizing its long-standing 
guidance that, for multichannel systems, the FTC power output rating 
under Sec.  432.2 requires the manufacturer to fully drive, at a 
minimum, the front-left and front-right channels used for stereo 
programming.\28\
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    \28\ Id. (discussing proposed 16 CFR 432.2).
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II. Comments Received in Response to SNPRM

    The Commission received four unique comments in response to the 
SNPRM. Two commenters fully supported the SNPRM proposal, noting the 
importance of a consistent standard that applies to all 
manufacturers.\29\ Another commenter suggested the Commission require 
manufacturers to disclose supplemental information relating to whether 
the manufacturer measured THD+N for harmonics beyond the 20 Hz to 20 
kHz bandwidth.\30\
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    \29\ Anonymous (SNPRM 6) (``By standardizing test conditions for 
load impedance, power band, and THD+N, the FTC is taking a 
significant step towards eliminating misleading power output claims 
and assisting consumers in making informed comparisons between 
different amplifier products.''); Jesse S. (SNPRM 2) (``Consistency 
is key for having shared standards that everyone follows.'').
    \30\ E.W. Blackwood (SNPRM 4). The commenter explained that 
measuring harmonics to an 80 kHz bandwidth can reveal ``artifacts 
that can indicate high frequency problems'' but also acknowledged 
that ``most people can't even hear the fundamental at 20kHz, let 
alone the second harmonic.'' Id.
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    The final commenter, Consumer Technology Association (``CTA''), 
opposed the Commission's SNPRM proposal.\31\ CTA recommended the Rule 
allow manufacturers to set the testing parameters for power band and 
impedance, stating generally that certain component and integrated 
amplifier devices are not designed to put out power at the 20 Hz to 20 
kHz power band and 8 ohm impedance specifications proposed in the 
SNPRM. CTA also requested the Rule require measuring harmonic 
distortion using THD at 1 kHz. CTA explained using THD+N over the 
entire 20 Hz to 20 kHz bandwidth, as required by the Commission's SNPRM 
proposal, would capture the hum of the commercial power supply as well 
as sampling noise. Finally, CTA recommended against using the 
disclosure ``This rating does not meet the FTC standard,'' to 
distinguish Optional Disclosures under Sec.  432.4 from FTC power 
output disclosures under Sec.  432.2. CTA noted this phrase could have 
the unintended consequence of denigrating acceptable international 
standards used by manufacturers in making power output claims in their 
Optional Disclosures.
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    \31\ CTA (SNPRM 3).
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III. Analysis of SNPRM Comments and Rule Amendments

    Based on the record, the Commission amends the Rule to standardize 
the testing conditions as proposed in its SNPRM, with one small 
exception. Specifically, the Rule as amended requires power output 
ratings under Sec.  432.2 to use 8 ohms load impedance, 20 Hz to 20 kHz 
power band, and THD+N of 1.0%. Two of the four SNPRM comments wholly 
supported the Commission's proposal, and the remaining comments did not 
raise any issues that warrant modifying or supplementing these standard 
parameters. Specifically, the Commission will not require disclosure of 
supplemental information regarding the bandwidth used for testing the 
harmonics. As the commenter proposing the recommendation acknowledged, 
``since most people can't even hear the fundamental at 20kHz, let alone 
the second harmonic, there is no need to measure anything beyond 
20kHz.'' \32\ The Commission agrees and declines to adopt this 
recommendation.
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    \32\ E.W. Blackwood (SNPRM 4).
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    The Commission also declines to adopt the recommendation to allow 
manufacturers to set the power band and impedance parameters. While CTA 
stated in general terms that certain manufacturers produce amplifier 
devices not designed to generate power output in accordance with the 
FTC standard test conditions, it neither identified any affected 
manufacturers nor included data indicating the proportion of affected 
models.\33\ In addition, the amended Rule does not increase costs for 
affected manufacturers by requiring them to modify their products to 
meet the FTC standard, as suggested by CTA.\34\ The amended Rule only 
requires compliance with the FTC standard when sellers make power 
related claims. If a manufacturer does not want to comply with the FTC 
standard, it need not make such a claim. Moreover, to the extent the 
manufacturer wants to rate power output using ``in device'' parameters 
different from the FTC standard, it may do so using Optional 
Disclosures under Sec.  432.4.
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    \33\ The SNPRM requested that commenters ``provide any available 
evidence and data that supports their position, such as empirical 
data.'' 88 FR at 56785.
    \34\ CTA (SNPRM 3) (``The FTC's proposal to increase the 
frequency range will impose additional costs that all consumers must 
pay and does not reflect the diversity of audio products available 
in today's marketplace.'').
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    The Commission also declines to adopt CTA's recommendation to base 
the maximum harmonic distortion parameter on THD at 1 kHz. While the 
Commission understands that amending the Rule to require power output 
ratings at 1.0% THD+N over the full 20 Hz to 20 kHz power band will 
capture some additional types of distortion (e.g., distortion from the 
power supply), this is precisely what the Commission intended when it 
first promulgated the Rule in order to cover the range of distortion 
generated by the amplifier during typical home use.\35\ The

[[Page 49800]]

amendment accords with the Commission's goals for the Rule.
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    \35\ For instance, the Commission's intent to include noise in 
using the term ``total harmonic distortion'' is demonstrated by its 
explanation of Sec.  432.3(a) when it first promulgated the Rule. 
That section requires AC power lines for testing equipment capable 
of using AC as a power source. The Commission explained that testing 
cannot artificially eliminate the ``hum and noise factor'' present 
in AC power lines by using a battery to power equipment capable of 
AC power. 39 FR 15387, 15393 (May 3, 1974). An AC-powered amplifier 
generates this power line distortion under ``conditions of normal 
use by the consumer, i.e., conditions which are encountered in the 
home'' that the Commission intended the Rule to reflect. Id. at 
15392.
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    The Commission also amends the Rule in accordance with the SNPRM to 
require the use of specific language to distinguish Optional 
Disclosures under Sec.  432.4. However, it clarifies that when using 
such disclosures, sellers should use the phrase ``This rating was not 
tested under the FTC standard'' rather than the proposed ``This rating 
does not meet the FTC standard.'' The use of this more neutral phrase 
should resolve CTA's concern about denigrating the use of accepted 
international standards in making Optional Disclosures while still 
serving the purpose of alerting consumers that the seller used a 
different test procedure.
    With respect to the other amendments proposed in the SNPRM, namely 
the four non-substantive changes and the formal adoption of the 2010 
Commission guidance for multichannel systems, none of the commenters 
raised any specific concerns or recommendations. Accordingly, the 
Commission amends the Rule to incorporate each of these five remaining 
proposals as follows.
    First, the Commission eliminates language in Sec.  432.4 that the 
Rule will no longer require. Second, the Commission consolidates all 
standard test conditions into a single section. Currently, the Rule has 
two sections that contain standard test conditions. Section 432.3 
entitled ``Standard Test Conditions'' contains most of the Rule's test 
condition requirements; however, the requirement to test using 
``minimum sine wave continuous average power output, in watts, per 
channel . . .'' appears in Sec.  432.2(a). Consolidating these 
requirements should make the requirements easier to find.\36\
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    \36\ See amended 16 CFR 432.3(g) and (h).
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    Third, the Commission modifies Sec.  432.3(e) to clarify amplifiers 
must meet the standard for impedance, power band, and THD+N at all 
levels from 250mW to the disclosed level. Retaining this requirement 
from the current rule \37\ while standardizing test conditions should 
ensure the advertised power claim does not mask lower power levels at 
which the amplifier would not meet the FTC's standard.
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    \37\ 16 CFR 432.2(b).
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    Fourth, the Commission updates Sec.  432.4's prohibition against 
using an ``asterisk'' to make disclosures required under the Rule. The 
new proposal modernizes this language to similarly prohibit the use of 
footnotes and other notations typically used to obscure disclosures in 
advertising.\38\
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    \38\ The prohibition against using an asterisk is contained in 
Note 2 of the prior version of Sec.  432.4. The Commission's 
amendments eliminate Note 2, as well as Note 1 addressing the font 
style of certain disclosures, and move the substantive requirements 
of these two Notes into the main text of Sec. Sec.  432.2(d) and 
432.4(a) and (b).
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    Finally, the Commission formalizes its guidance regarding how 
channels in a multichannel amplifier must be driven when measuring 
power output under the FTC standard. The FTC standard requires all 
``associated channels'' to be fully driven when measuring power output 
of the amplifier.\39\ In 2010, the Commission found that ``associated 
channels'' for multichannel systems include, at a minimum, the front-
left and front-right channels used for stereo programming, and issued 
guidance stating that power output measurements that do not meet this 
floor violate the Rule.\40\ While ANPR commenters proposed a variety of 
alternative standards for driving multichannel amplifiers,\41\ and the 
NPRM specifically solicited evidence regarding normal usage of 
multichannel amplifiers,\42\ no commenters on either the ANPR or the 
NPRM provided evidence regarding real-life use of multichannel systems. 
Likewise, the SNPRM solicited comments on formalizing the Commission's 
2010 guidance, but the Commission received none. Accordingly, 
considering the Commission's 2010 finding and in the absence of any 
evidence supporting an alternative, the Commission modifies Sec.  432.2 
to formalize its long-standing guidance on ``associated channels'' for 
multichannel amplifiers--that is, at least the front-left and front-
right channels used for stereo programming must be driven 
simultaneously.\43\
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    \39\ This requirement is in the prior version of Sec.  432.2(a). 
The amendments consolidate this requirement with the other standard 
test conditions in Sec.  432.3. See paragraph accompanying fn. 35 
supra.
    \40\ The Commission based its guidance on the finding that 
``[t]he left and right front channels of home theater multichannel 
amplifiers are responsible for reproducing a substantial portion of 
the musical soundtracks of movies, as well as a substantial portion 
of the program content of music CDs and DVDs.'' 75 FR at 3987.
    \41\ Commenters on the ANPR proposed fully driving 2 channels, 
fully driving 3 channels and partially driving the remaining 
channels, and driving 5 channels at 70%, among other proposals. See, 
e.g., Leo Nolan (ANPR 67); Gene DellaSala (ANPR 6); Jason Jenkins 
(ANPR 70). In its comment on the NPRM, CTA correctly observed that 
none of the commenters supported their respective proposals with any 
evidence of how channels are driven in typical use in the home. CTA 
(NPRM 8).
    \42\ 87 FR at 45049 through 45050. As the Commission stated in 
the prior 2000 proceeding to amend the Rule, ``[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).
    \43\ See infra amended 16 CFR 432.3(h) (``Associated channels 
for multichannel amplifiers shall include, at a minimum, the left 
front and right front channels used for reproducing stereo 
programming.'').
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IV. Rulemaking Procedures

    The Commission has found that using expedited procedures in this 
rulemaking serves the public interest. Expedited procedures 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 Rule. In the NPRM, the Commission announced 
that it would use the following procedures pursuant to 16 CFR 1.20: (1) 
publishing a 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 this document published in the 
Federal Register. Because none of the commenters requested an informal 
hearing, the Commission, in its discretion, did not schedule an 
informal hearing.

V. Regulatory Analysis

    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 that the amendment will have an 
annual effect on the national economy of $100 million or more; (2) 
estimates that the amendment will cause a substantial change in the 
cost or price of certain categories of goods or services; or (3) 
otherwise determines that the amendment will have a significant effect 
upon covered entities or upon consumers. In the NPRM and SNPRM, the 
Commission preliminarily determined that the proposed amendments to the 
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 requested but received no 
comments on the economic effects of

[[Page 49801]]

the amendments to the Rule, other than CTA's comment addressed 
above.\44\ A final regulatory analysis is not required because the 
Commission finds that the amendments will not have such effects on the 
national economy, on the cost of sound amplification equipment, or on 
covered businesses or consumers.
---------------------------------------------------------------------------

    \44\ See note 34 and accompanying text supra.
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Requirements

    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 amendments 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 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.
    The Commission believes that the amendments would not have a 
significant economic impact upon small entities, although they may 
affect a substantial number of small businesses. Specifically, the 
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. In the SNPRM, the 
Commission certified that the proposed amendments would not, if 
promulgated, have a significant impact on a substantial number of small 
entities. The Commission noted that, while a substantial number of the 
entities covered by the Rule likely qualify as small businesses, the 
Commission did not anticipate that the amendments would result in 
higher costs for covered entities because manufacturers already test 
power output for their amplifiers. The Commission nonetheless 
determined that it was appropriate to publish an IRFA to inquire into 
the impact of the proposed amendments on small entities. The Commission 
received no comments regarding the SNPRM's certification or IRFA. 
Therefore, based on available information, the Commission certifies 
that amending the Rule will not have a significant economic impact on a 
substantial number of small businesses.

VII. 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 does not 
anticipate that 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.

VIII. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated these rule 
amendments as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

List of Subjects in 16 CFR Part 432

    Amplifiers, Home entertainment products, Trade practices.

    For the reasons stated above, the Commission amends 16 CFR part 432 
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 
manufacturer's rated power output shall be disclosed subject to the 
following conditions:
    (a) The rated power output is measured in compliance with the 
standard test conditions in Sec.  432.3;
    (b) The rated power output is disclosed clearly, conspicuously, and 
more prominently than any other representations or disclosures 
permitted under this part;
    (c) The disclosure of the rated power output is clearly and 
conspicuously labeled ``FTC Power Output Rating''; and
    (d) The disclosures or representations required under this section 
shall not be made by a footnote, asterisk, or similar notation.

0
3. Amend Sec.  432.3 by revising paragraph (e) and adding paragraphs 
(g) and (h) to read as follows:


Sec.  432.3  Standard test conditions.

* * * * *
    (e) Any power level from 250 mW to the rated power shall be 
obtainable at all frequencies within the rated power band of 20 Hz to 
20 kHz without exceeding 1.0% of total harmonic distortion plus noise 
(THD+N) at an impedance of 8 ohms 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, any power level from 250 mW to the rated power shall be 
obtainable at all frequencies within the subwoofer amplifier's intended 
operating bandwidth without exceeding 1.0% of total harmonic distortion 
plus noise (THD+N) at an impedance of 8 ohms 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.
* * * * *
    (g) Rated power shall be minimum sine wave continuous average power 
output, in watts, per channel (if the equipment is designed to amplify 
two or more channels simultaneously), measured with all associated 
channels fully driven to rated per channel power.
    (h) Associated channels for multichannel amplifiers shall include, 
at a minimum, the left front and right front channels used for 
reproducing stereo programming. Provided, however, when measuring the 
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

[[Page 49802]]

subwoofer-satellite speaker systems, only those channels dedicated to 
the same audio frequency spectrum should be considered associated 
channels.

0
4. Revise Sec.  432.4 to read as follows:


Sec.  432.4   Optional disclosures.

    Other operating characteristics and technical specifications not 
required in Sec.  432.2 may be disclosed. Provided, that:
    (a) Any other power output is rated by the manufacturer, expressed 
in minimum watts per channel, and clearly and conspicuously labeled 
``This rating was not tested under the FTC standard'' without the use 
of a footnote, asterisk, or similar notation to make the 
representation;
    (b) All disclosures or representations made under this section are 
less conspicuously and prominently made than any rated power output 
disclosure required in Sec.  432.2. Any disclosure or representation 
bold faced or more than two-thirds the height of any rated power output 
disclosure required in Sec.  432.2 is not less prominent; and
    (c) The rating and testing methods or standards used in determining 
such representations are well known and generally recognized by the 
industry at the time the representations or disclosures are made, are 
neither intended nor likely to deceive or confuse consumers, and are 
not otherwise likely to frustrate the purpose of this part.

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2024-12744 Filed 6-11-24; 8:45 am]
BILLING CODE 6750-01-P