[Federal Register Volume 60, Number 113 (Tuesday, June 13, 1995)]
[Rules and Regulations]
[Pages 31077-31081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14440]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
Rule Concerning Disclosures Regarding Energy Consumption and
Water Use of Certain Home Appliances and Other Products Required Under
the Energy Policy and Conservation Act (``Appliance Labeling Rule'')
AGENCY: Federal Trade Commission.
ACTION: Final rule.
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SUMMARY: The Federal Trade Commission (``Commission'') issues final
amendments to the Appliance Labeling Rule (``Rule'') to allow
manufacturers of general service incandescent lamps (including
incandescent reflector lamps) with a design voltage other than 120
volts an option as to where on product labels specific disclosures must
be made, to clarify the light output measure that manufacturers of
incandescent reflector lamps must disclose on lamp labels, to delete
the requirement that the lumen disclosure for incandescent reflector
lamps be followed by the term ``at beam spread,'' and to allow
manufacturers of incandescent reflector lamps the option of adding a
reference to ``beam spread'' to the Advisory Statement about saving
energy costs.
EFFECTIVE DATE: June 13, 1995.
FOR FURTHER INFORMATION CONTACT: Kent C. Howerton, Attorney, Federal
Trade Commission, Bureau of Consumer Protection, Division of
Enforcement, Room S-4302, Washington, D.C. 20580, telephone 202/326-
3013 (voice), 202/326-3259 (fax).
SUPPLEMENTARY INFORMATION:
I. Introduction
The Commission issues final amendments to the lamp labeling
requirements of the Appliance Labeling Rule (``Rule''), 16 CFR part
305. The Commission proposed these amendments and solicited comments on
them in a notice published on March 22, 1995, 60 FR 15200 (1995), in
response to a petition dated January 31, 1995 (``Petition'') and a
letter dated January 30, 1995 (``January 30 letter'') from the
[[Page 31078]] Lamp Section of The National Electrical Manufacturers
Association (``NEMA'').1
\1\ NEMA is a trade association representing the nation's
largest manufacturers of lamp products. Its members produce more
than 90 percent of the lamp products subject to the lamp labeling
requirements of the Appliance Labeling Rule.
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The Petition requested that the Commission allow manufacturers of
incandescent lamp products with a design voltage other than 120 volts
an option as to where on product labels the required disclosures must
be made under the lamp labeling requirements of the Appliance Labeling
Rule (``lamp labeling rules'').2 The January 30 letter requested
clarification of the light output disclosure required for incandescent
reflector lamp products (spot lights and flood lights) and acceptance
of minor changes to the disclosures required for incandescent reflector
lamps.
\2\ The Petition also requested that the Commission stay,
through November 30, 1995, ``compliance against manufacturers who,
in good faith and despite the exercise of due diligence, are unable
to change all of their lamp packages prior to the May 15, 1995
effective date of the Lamp Labeling Rule.'' In response to the
Petition, the Commission, on March 22, 1995, exercised its
prosecutorial discretion and issued an Enforcement Policy Statement
(``Statement''), 60 FR 15198 (1995). The Statement explained that
the Commission had determined to avoid taking law enforcement
actions until December 1, 1995 against manufacturers of general
service incandescent lamp products for labeling not in compliance
with the disclosure requirements of the Appliance Labeling Rule. The
Statement remains in effect until December 1, 1995.
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In response to the Petition and the January 30 letter, the
Commission proposed amending the Rule to: (a) Allow manufacturers of
incandescent lamps that have a design voltage of other than 120 volts
the option of making required disclosures at 120 volts on a label panel
other than the primary display panel under specific conditions; (b)
clarify the measure of light output that must be disclosed for
incandescent reflector lamps; (c) eliminate a required reference to
``at beam spread'' in connection with the disclosure of light output
for incandescent reflector lamps; and (d) allow manufacturers of
incandescent reflector lamps the option of adding a reference to
selecting an incandescent reflector lamp with the ``beam spread'' the
purchaser needs to a required Advisory Statement that explains how
purchasers can save energy costs.
II. Background
On May 13, 1994 the Commission published final labeling rules
(``lamp labeling rules'') for various types of lamp products (``light
bulbs''), including general service fluorescent lamps, general service
incandescent lamps (including reflector incandescent lamps), and medium
base compact fluorescent lamps,3 as mandated by Energy Policy Act
of 1992 (``EPA 92'') 4 amendments to the Energy Policy and
Conservation Act of 1975 (``EPCA'').5 The Commission issued the
lamp labeling rules as amendments to the Appliance Labeling Rule, 16
CFR part 305. The lamp labeling rules became effective on May 15,
1995.6
\3\ Final rule (including Statement of Basis and Purpose
(``SBP'')), 59 FR 25176 (1994). On December 29, 1994, the Commission
published minor, technical amendments to resolve certain
inconsistencies in paragraph numbering and language that had arisen
during the course of four separate proceedings amending the Rule's
requirements concerning other products. 59 FR 67524 (1994). The
specific lamp products covered by the lamp labeling rules are
described in Sec. 305.3(k)-(m) of the Appliance Labeling Rule, 16
CFR 305.3(k)-(m) (1995).
\4\ Pub. L. No. 102-486, 106 Stat. 2776, 2817-2832 (Oct. 24,
1992).
\5\ 42 U.S.C. 6201, 6291-6309.
\6\ The EPA amendments to EPCA required that the lamp labeling
rules become effective 12 months after the rules' publication in the
Federal Register. Because May 13, 1995, was a Saturday, the
effective date was Monday, May 15. 42 U.S.C. 6294(a)(2)(C)(i). But
see note 2, supra.
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These rules require disclosures on the primary display panel of
package labels of light output (in lumens), energy used (in watts), and
life (in hours), plus an Advisory Statement that explains how
purchasers can save energy costs. For incandescent reflector lamps
(used to focus or spread light on a particular object or objects), the
rules additionally require that the disclosure of light output (in
lumens) be for the lamp's ``beam spread,'' and that the disclosure of
lumens be followed clearly and conspicuously by the phrase ``at beam
spread.'' Based on the statutory directive that the Commission
promulgate these labeling rules and that labeling information for
incandescent lamps be based on performance at 120 volts,7 the lamp
labeling rules require that the disclosures of light output, energy
used, and life for general service incandescent lamps (including
incandescent reflector lamps) appear on the primary display panel of
the package label based on operation at 120 volts, regardless of the
lamp's design voltage. The lamp labeling rules, however, allow
manufacturers the option of adding disclosures based on operation at a
different design voltage, either on the primary display panel or on a
separate panel on the package.
\7\ Under section 324(a)(2)(C)(i) of EPCA, as amended by EPA 92:
``Labeling information for incandescent lamps shall be based on
performance when operated at 120 volts input, regardless of the
rated lamp voltage.'' 42 U.S.C. 6294(a)(2)(C)(i).
The lamp labeling rules in the Appliance Labeling Rule overlap
certain disclosures already required on packages of non-reflector
general service incandescent bulbs by the Commission's Light Bulb
Rule.8 The Light Bulb Rule, unlike the lamp labeling rules in the
Appliance Labeling Rule, requires that package labels clearly and
conspicuously disclose average initial wattage, light output expressed
in average initial lumens, and average laboratory life expressed in
hours, based on operation at the bulb's ``stated design voltage.''
9 Under the Light Bulb Rule, the disclosures must appear on at
least two panels of the outer sleeve or container in which bulbs are
displayed and additionally on all panels of the inner and the outer
sleeve that contain any reference to wattage, lumens, life, or
voltage.10
\8\ 16 CFR part 409. The Light Bulb Rule, issued in 1970, was
intended to prevent deceptive or unfair practices in the sale of
incandescent light bulbs. Other types of lamps covered by the
Appliance Labeling Rule amendments (including incandescent reflector
lamps) are not covered by the Light Bulb Rule. In this notice,
references to ``lamp labeling rules'' refer to the lamp labeling
requirements of the Appliance Labeling Rule, 16 CFR part 305, and
references to the ``Light Bulb Rule'' refer to the Light Bulb Rule,
16 CFR part 409.
\9\ Id. at 409.1 n. 1.
\10\ Id. at n. 4.
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The Commission published a request for comments on the Light Bulb
Rule as part of its regulatory review program on April 6, 1995, 60 FR
17491 (1995). This notice specifically solicits comments on whether the
rule should be amended to reduce or eliminate any overlap it may have
with the lamp labeling rules under the Appliance Labeling Rule. In
addition, it seeks comments on several other questions, including
whether the Light Bulb Rule is still needed, the benefits and costs of
the Rule to consumers, the burdens and benefits to manufacturers, any
proposed changes to the Rule, and the effect of any recent changes in
technology or economic conditions. The comment period ends June 6,
1995.
III. Proposed Amendments
A. Disclosures at Design Voltage Other Than 120 Volts
In response to NEMA's Petition, the Commission proposed amending
the lamp labeling rules in the Appliance Labeling Rule, as NEMA
requested, to approve an optional labeling scheme for manufacturers of
incandescent lamp products with a design voltage other than 120 volts.
Under the proposed amendments, manufacturers could choose to limit
disclosures of light output, energy used, and life on the primary
display panel of the package to operation of the lamp at the lamp's
design voltage if: [[Page 31079]]
The disclosures of light output, energy used, and life
when operated at 120 volts appeared elsewhere on the package.
The following explanatory statement appeared clearly and
conspicuously on the primary display panel:
This product is designed for (125/130) volts. When used on the
normal line voltage of 120 volts, the light output and efficiency are
noticeably reduced. See (side/back) panel for 120 volt ratings.11
\11\ NEMA proposed the use of a shorter explanatory statement:
``(125/130) volt design. At 120 v., light output and efficiency are
noticeably reduced. See (side/back) panel for data at 120 v.''
Petition at 6. NEMA stated that it would accept a more detailed
version of the explanatory statement. Id. at note 6. The Commission
proposed requiring the more detailed explanatory statement that NEMA
suggested.
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All panels of the package that contained a claim about
light output, energy used, or life clearly and conspicuously identified
the lamp as ``(125 volt/130 volt).''
B. Light Output Disclosures for Reflector Lamps
In response to NEMA's January 30 letter, the Commission proposed
amending the Appliance Labeling Rule to clarify that the required light
output disclosure for incandescent reflector lamps is of ``total
forward lumens'' instead of lumens ``at beam spread.'' 12 The
Commission also proposed amending the Rule to delete the requirement
that the lumen light output disclosure be followed by the phrase ``at
beam spread.'' Lastly, the Commission proposed amending the Rule to
allow manufacturers, at their option, to insert in the required
Advisory Statement a reference to selecting a lamp with the ``beam
spread,'' as well as the light output, purchasers need.
\12\ The proposed amendments would clarify that the lumen
disclosure for incandescent reflector lamps is consistent with the
light output measurement used by the Department of Energy (``DOE'')
in determining the efficiency of these products under the minimum
efficiency standards set by the EPA 92 amendments to EPCA. See
Interim final rule, 59 FR 49468 (1994). DOE published its interim
final rule for testing to comply with the minimum efficiency
standards on September 28, 1994, after the Commission published the
lamp labeling rule amendments to the Appliance Labeling Rule.
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IV. Comments and Final Amendments
A. Comments Received
The Commission received eight comments in response to the notice
soliciting comments on the proposed amendments.13 Four comments
specifically support both sets of proposed amendments.14 None of
the comments object to the proposed amendments. Six comments pertain to
issues the Commission addressed in the original rulemaking proceeding
and do not contain new evidence to support their positions.15 One
comment requests that the Commission exempt small producers and
suppliers from the labeling requirements.16 The Commission does
not have the authority under EPCA to grant such relief. Two comments
address the definition of incandescent reflector lamps ``designed for
rough or vibration service applications.'' These lamps are exempted by
EPCA from the Commission's labeling rules and the minimum efficiency
standards.17 DOE currently is addressing the issue of what lamps
qualify for that exemption.18
\13\ Arkalite Manufacturing Co., Inc. (``Arkalite''), General
Electric Company (``GE''), Hytron Electric Products (``Hytron''),
Lawrence Berkeley Laboratory (``LBL''), Maintenance Engineering
(``ME''), Marvel Lighting Corporation (``Marvel''), the National
Electrical Manufacturers Association (``NEMA''), and Rensselaer
Polytechnic Institute (``Rensselaer'').
\14\ LBL (agrees with proposed amendments for lamps with a
design voltage other than 120 volts; concurs with proposed
clarification of incandescent reflector lamp lumens and labeling
changes); Marvel (supports greater flexibility in disclosures and
any changes that would clarify labeling requirements proposed by
NEMA); NEMA (supports proposed amendments); Rensselaer (supports
NEMA's proposal for alternative disclosure format for lamps with a
design voltage other than 120 volts and FTC's proposal to require
the more detailed explanatory statement; agrees with use of total
forward lumens for reflector lamps, consistent with light output
definition in EPA 92).
\15\ Arkalite (comparison 120 volt/130 volt information on
packages of 130 volt A-bulbs sold as long life is confusing and
consumers do not know how many lumens to look for); Hytron (long-
life lamps may be more efficient for fixtures not readily accessible
when comparing lumen-per-watt cost to lamp replacement cost); LBL
(preferable to use term ``power'' to describe wattage because term
``energy used'' is technically incorrect and misleading); Marvel
(new labeling requirements will be confusing and meaningless to
consumers); ME (laboratory-measured life ratings under ideal
conditions are misleading because lab conditions have little
correlation to actual use); Rensselaer (marketing ``long life'' 130
volt lamps for use on 120 volt circuits will mislead consumers if
long-life claims are on package with data at 130 volts).
\16\ Marvel (exempt small producers and suppliers from labeling
requirements to alleviate tremendous cost imposed and allow them to
survive financially; cumulative sales of small distributors and
manufacturers with probably less than 2% of total lamp sales will
not have much effect on energy consumption for country as a whole).
\17\ Hytron (multiple support filament, long-life incandescent
lamps should be considered to be rough/vibration service lamps); ME
(lamps with multiple supports designed for rough service last much
longer under actual operating conditions than those with no filament
supports; exclude lamps with four or more filament supports from
labeling requirements to keep consumers from comparing lab life
ratings of lamps that may have different actual ratings).
\18\ Notice of Proposed Rule and Public Hearing, 59 FR 49478
(1994).
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Lastly, one comment requests that the Commission require the first
annual report from lamp manufacturers no earlier than March 1, 1997
because imposing a new reporting requirement immediately after changing
the substantial number of labels affected would be unfair and unduly
burdensome.19 This reporting requirement is mandated directly by
EPCA, although the Commission has authority to specify the date on
which the annual reports are required. The Commission has stayed this
reporting requirement under the lamp labeling rules until DOE adopts
final test procedures for lamp products under the EPA 92 amendments to
EPCA.20 Although DOE has published interim final testing rules,
DOE has not yet issued its final rules. The Commission will address the
issue of when the first annual report will be due under the Rule after
DOE takes final action on its testing rules.
\19\ GE.
\20\ 59 FR at 25176, 25201-02.
B. Final Amendments
Based on NEMA's Petition, NEMA's January 30 letter, and the
comments the Commission received in response to the March 22 notice,
the Commission has determined to adopt the amendments to the Appliance
Labeling Rule it proposed in the notice.21 The amended Rule will
give manufacturers of incandescent lamp products with a design voltage
other than 120 volts greater flexibility in designing packages to make
the required labeling disclosures and will clarify that the light
output disclosure for incandescent reflector lamps is total forward
lumens, which is the lumen measurement used to determine whether those
lamps meet EPCA's minimum efficiency standards. The amended Rule thus
will reduce the regulatory burden imposed by the Rule. At the same
time, the amended Rule will ensure that purchasers are provided with
accurate information they need to select the most energy efficient
lamps that meet their requirements, and it will meet the statutory
standard that required disclosures for incandescent lamps be based on
operation at 120 volts.
\21\ Although the amendments are effective today, the
Commission's Enforcement Policy Statement published on March 22,
1995, applies to the amendments. See note 2, supra.
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1. Disclosures at Design Voltage Other Than 120 Volts
The EPA 92 amendments to EPCA and its legislative history are
silent about the specific purpose and meaning of the mandate that
labeling information shall be based on operation at 120 volts. The
Commission, therefore, has analyzed the record evidence
[[Page 31080]] concerning the methods of sales distribution and the
uses of these lamp products, as well as the manner in which purchasers
could best be provided with accurate and important information to
enable them ``to select the most energy efficient lamps which meet
their requirements.''
According to the original rulemaking record, the majority of the
electric service voltage supplied by local utilities in the United
States for lighting is 120 volts. The rest is supplied at 125 volts,
primarily in the Pacific Northwest and the Tennessee Valley. No
evidence was presented that any local utility supplies electricity at
130 volts, or at service voltage other than 120 or 125 volts. The lamp
manufacturers who participated in the proceeding stated that they
distribute incandescent lamps with a design voltage of 120 volts for
sale in 120 voltage service regions. They also stated, however, that
they cannot guarantee that lamps with a design voltage of 125 volts are
only offered for sale in 125 voltage service regions. Manufacturers
that distribute incandescent lamps with a design voltage of 130 volts
stated that they distribute these lamps, which are marketed as long-
life lamps, in both 120 and 125 voltage service regions.
In light of the statutory standard and the rulemaking record, the
Commission originally determined to require the disclosure on the
primary display panel of specific lamp performance information based on
operation of lamps at 120 volts. Otherwise, purchasers in most parts of
the country who purchase lamps with a design voltage of 125 or 130
volts might be misled by exaggerated light output claims. Although the
EPA 92 amendments to EPCA state that labeling information for
incandescent lamps shall be based on operation at 120 volts, regardless
of the rated (or design) lamp voltage, the statute does not prohibit
the Commission from allowing additional disclosures based on operation
of the lamp at a different design voltage. EPCA also leaves to the
Commission's discretion both the specific disclosures that should be
required and the manner and format in which the disclosures should be
made. Thus, in order to ensure that purchasers in 125-volt service
regions are provided accurate performance information, and to allow
manufacturers flexibility in marketing longer-life, 130-volt design
voltage lamps, the Commission determined to allow manufacturers, at
their option, to disclose performance information at an additional
design voltage. This information could be included on the primary
display panel, or on a different panel on the package.
NEMA, however, asserted in its Petition that marketing
considerations may lead manufacturers to put design voltage information
on the primary display panel (along with the required data at 120
volts). A review of sample labels with dual 120 volt and 125 volt/130
volt disclosures on the primary display panel indicates that this
disclosure format may be confusing to consumers. The Commission,
therefore, is amending the Rule to allow manufacturers the option of
limiting disclosures of light output, energy used, and life on the
primary display panel of the package to operation of the lamp at its
design voltage if: (a) The disclosures of light output, energy used,
and life when operated at 120 volts appear elsewhere on the package;
(b) a specific explanatory statement about the effect of the lamp's
design voltage on light output and efficiency when the lamp is operated
at 120 volts and the location of performance information for operation
at 120 volts appears clearly and conspicuously on the primary display
panel; and (c) all panels of the package that contain a claim about
light output, energy used, or life clearly and conspicuously identify
the lamp as ``(125 volt/130 volt).''
The amendments adopted today comply with the statutory mandate
because they require clear and conspicuous disclosures on labels of
specific performance information for the lamps when they are operated
at 120 volts. In addition, the amendments ensure that purchasers are
provided with accurate information they need when they make purchase
decisions.
2. Light Output Disclosures for Reflector Lamps
Not all light produced by an incandescent reflector lamp is
reflected forward as useable light.22 Some light output may escape
around the base of the lamp and be lost into the lamp fixture. Some
light may be reflected back and forth inside the cone of the lamp and
not be emitted as useable light output. Thus, in an attempt to ensure
that only useable light output would be disclosed, the original lamp
labeling amendments to the Appliance Labeling Rule required that the
labeled light output for incandescent reflector lamps be for the lamp's
``beam spread,'' and be followed clearly and conspicuously by the
phrase ``at beam spread.''
\22\ Incandescent reflector lamps (also known as reflectorized
incandescent lamps) are cone-shaped with a reflectorized coating
applied to the cone-shaped part of the bulb. Incandescent reflector
lamps thus allow light output to be directed and focused forward
through the face of the lamp. They may be used, for example, to
provide lighting from recessed ceiling fixtures or as spotlights or
floodlights.
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The Commission now concludes that there has been confusion about
the use of terms such as ``beam spread,'' ``beam angle,'' ``total
lumens,'' and ``total forward lumens'' for incandescent reflector
lamps. Accordingly, the Commission amends the Appliance Labeling Rule
to state that the required light output disclosure for incandescent
reflector lamps is of ``total forward lumens,'' instead of lumens ``at
beam spread.'' With this amendment, the Commission believes the Rule
will state more clearly that the light output disclosure required by
the Appliance Labeling Rule is for the useable light output reflected
forward, and not merely of forward light focused within the more narrow
``beam spread'' of the particular lamp. By use of the term ``total
forward lumens,'' the amended Rule also will more clearly state that
the light output disclosure required by the Appliance Labeling Rule for
incandescent reflector lamps is the same as the light output
measurement used by DOE in determining whether these products meet the
minimum efficiency standards under EPCA.23
\23\ See note 12, supra.
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Because of the confusion that has resulted from the reference to
``beam spread,'' the Commission also amends the Rule to delete the
requirement that the lumen disclosure for incandescent reflector lamps
be followed by the phrase ``at beam spread.'' Further, because the
amended Rule clarifies that the measurement method for determining
light output for all reflector lamps is the same, regardless of the
particular lamp's beam spread or beam angle, it is unnecessary for the
Rule to require a disclosure that the measurement is of ``total forward
lumens.''
Lastly, the Commission amends the Rule to allow manufacturers of
incandescent reflector lamps, at their option, to insert in the
Advisory Statement the reference to selecting a lamp with the ``beam
spread,'' as well as the light output, that purchasers need. The
amended Advisory Statement thus will better assist purchasers in
selecting the most efficient lamp that meets their needs, after they
first select the type of reflector lamp (e.g., spotlight or floodlight)
that they desire.
List of Subjects in 16 CFR Part 305
Advertising, Consumer protection, Energy conservation, Household
applicanes, Labeling, Lamp products, [[Page 31081]] Penalties,
Reporting and recordkeeping requirements.
V. Text of Final Amendments
Accordingly, the Commission amends 16 CFR part 305 as follows:
PART 305--RULE CONCERNING DISCLOSURES REGARDING ENERGY CONSUMPTION
AND WATER USE OF CERTAIN HOME APPLIANCES AND OTHER PRODUCTS
REQUIRED UNDER THE ENERGY POLICY AND CONSERVATION ACT (``APPLIANCE
LABELING RULE'')
1. The authority citation for part 305 continues to read as
follows:
Authority: 42 U.S.C. 6294.
2. Section 305.11 is amended by revising paragraphs (e)(1)(iii),
(e)(1)(iv), and (e)(1)(vi) to read as follows:
Sec. 305.11 Labeling for covered products.
* * * * *
(e) Lamps--
(1)(i) * * *
(iii) The light output, energy usage and life ratings of any
covered product that is a medium base compact fluorescent lamp or
general service incandescent lamp (including an incandescent reflector
lamp), shall be measured at 120 volts, regardless of the lamp's design
voltage. If a lamp's design voltage is 125 volts or 130 volts, the
disclosures of the wattage, light output and life ratings shall in each
instance be:
(A) At 120 volts and followed by the phrase ``at 120 volts.'' In
such case, the labels for such lamps also may disclose the lamp's
wattage, light output and life at the design voltage (e.g., ``Light
Output 1710 Lumens at 125 volts''); or
(B) At the design voltage and followed by the phrase ``at (125
volts/130 volts)'' if the ratings at 120 volts are disclosed clearly
and conspicuously on another panel of the package, and if all panels of
the package that contain a claimed light output, wattage or life
clearly and conspicuously identify the lamp as ``(125 volt/130 volt),''
and if the principal display panel clearly and conspicuously discloses
the following statement:
This product is designed for (125/130) volts. When used on the
normal line voltage of 120 volts, the light output and energy
efficiency are noticeably reduced. See (side/back) panel for 120
volt ratings.
(iv) For any covered product that is an incandescent reflector
lamp, the required disclosure of light output shall be given for the
lamp's total forward lumens.
* * * * *
(vi) For any covered product that is a compact fluorescent lamp or
a general service incandescent lamp (including an incandescent
reflector lamp), there shall be clearly and conspicuously disclosed on
the principal display panel the following statement:
To save energy costs, find the bulbs with the (beam spread and)
light output you need, then choose the one with the lowest watts.''
* * * * *
By direction of the Commission.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 95-14440 Filed 6-12-95; 8:45 am]
BILLING CODE 6750-01-P
