[Federal Register Volume 64, Number 137 (Monday, July 19, 1999)]
[Proposed Rules]
[Pages 38610-38616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18302]
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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 (``Commission'' or ``FTC''), is
commencing a rulemaking proceeding to amend its Rules relating to Power
Output Claims for Amplifiers Utilized in Home Entertainment Products
(the ``Amplifier Rule'' or the ``Rule''). The Commission proposes
amending the Rule to: exempt sellers who make power output claims in
media advertising from the requirement to disclose total rated harmonic
distortion and the associated power bandwidth and impedance ratings;
clarify the manner in which the Rule's testing procedures apply to
self-powered subwoofer-satellite combination speaker systems; and
reduce the preconditioning power output requirement from one-third of
rated power to one-eighth of rated power. The Commission is commencing
this rulemaking because of the comments filed in response to its
Advanced Notice of Proposed Rulemaking (``ANPR''), and other
information discussed in this notice. The notice includes a description
of the procedures to be followed, an invitation to submit written
comments, a list of questions and issues upon which the Commission
particularly desires comments, and instructions for prospective
witnesses and other interested persons who desire to participate in a
hearing where oral testimony could be presented.
DATES: Written comments must be submitted on or before September 17,
1999. Notifications of interest in testifying must be submitted on or
before September 17, 1999. If interested parties request the
opportunity to present testimony, the Commission will publish a
document in the Federal Register, stating the time and place at which
the hearings will be held and describing the procedures that will be
followed in conducting the hearings. In addition to submitting a
request to testify, interested parties who wish to present testimony
must submit, on or before September 17, 1999, a written comment or
statement that describes the issues on which the party wishes to
testify and the nature of the testimony to be given. If there is no
interest in a hearing, the Commission will base its decision on the
written rulemaking record.
ADDRESSES: Written comments and requests to testify should be submitted
to Office of the Secretary, Federal Trade Commission, Room H-159, 600
Pennsylvania Ave., NW., Washington, DC 20580. Comments and requests to
testify should be identified as ``16 CFR Part 432 Comment--Amplifier
Rule'' and ``16 CFR Part 432 Request to Testify--Amplifier Rule,''
respectively. If possible, submit comments both in writing and on a
personal computer diskette in Word Perfect or other word processing
format (to assist in processing, please identify the format and version
used). Written comments should be submitted, when feasible and not
burdensome, in five copies.
FOR FURTHER INFORMATION CONTACT: Dennis Murphy, Economist, Division of
Consumer Protection, Bureau of Economics, (202) 326-3524, or Neil
Blickman, Attorney, Division of Enforcement, Bureau of Consumer
Protection, (202) 326-3038, Federal Trade Commission, Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
Part A--Introduction
This Notice of Proposed Rulemaking (``NPR'') is being published
pursuant to section 18 of the Federal Trade Commission (``FTC'') Act,
15 U.S.C. 57a et seq., the provisions of part 1, subpart B of the
Commission's rules of practice, 16 CFR 1.7, 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 is undertaking 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.\1\
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\1\ In accordance with section 18 of the FTC Act, 15 U.S.C. 57a,
the Commission submitted this NPR to the Chairman of the Committee
on Commerce, Science, and Transportation, Untied States Senate, and
the Chairman of the Committee on Commerce, United States House of
Representatives, 30 days prior to its publication in the Federal
Register.
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The Amplifier Rule was promulgated on May 3, 1974 (39 FR 15387), to
assist consumers in purchasing power amplification equipment for home
entertainment purposes by standardizing the measurement and disclosure
of various performance characteristics of the equipment. On April 7,
1997, the Commission published a Federal Register Notice (``FRN'')
seeking comment on the rule as part of an ongoing project to review all
Commission rules and guides to determine their current effectiveness
and impact (62 FR 16500). This FRN sought comment on the costs and
benefits of the Rule, what changes in the Rule would increase its
benefits to purchasers and how those changes would affect compliance
costs, and whether technological or marketplace changes have affected
the Rule. The FRN also sought comment on issues related to the Rule's
product coverage,
[[Page 38611]]
test procedures,and disclosure requirements.
The comments in response to the FRN generally expressed continuing
support for the Rule, stating that it has given consumers a
standardized method of comparing the power output of audio amplifiers,
and has created a level playing field among competitors. The comments
also suggested that there have been technological and marketplace
changes that may warrant modifications to the Rule's testing and
disclosure requirements, and a clarification of the Rule's
applicability to self-powered loudspeakers for use with personal
computers and home stereo systems. Certain comments also recommended
that the Commission expand the Rule's coverage to include automotive
sound amplification products. On the basis of this review, the
Commission determined to retain the Rule, but to seek additional
comment on possible amendments to the Rule.
The Commission published an Advanced Notice of Proposed Rulemaking
(``ANPR'') on July 9, 1998 (63 FR 37238), seeking public comment on
whether it should initiate a rulemaking proceeding by publishing a
Notice of Proposed Rulemaking (``NPR'') under section 18 of the FTC
Act, 15 U.S.C. 57a. The ANPR solicited specific comment on whether the
Commission should (1) eliminate certain disclosure requirements in
media advertising; (2) clarify testing procedures for self-powered
speakers; and (3) amend certain required test procedures that may
impose unnecessary costs on manufacturers. The ANPR also announced that
the Commission had determined not to initiate a proceeding to amend the
Rule to cover power ratings for automotive sound amplification
equipment. Finally, the Commission published elsewhere in the July 9,
Federal Register a Notice of Final Action announcing a non-substantive
technical amendment to the Rule clarifying that the Rule covered self-
powered loudspeakers for use in the home (63 FR 37234).
The ANPR elicited five written comments on the possible amendments
described therein.\2\ Based on the comments and the evidence discussed
below, the Commission proposes to amend the Rule in the following ways.
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\2\ The commenters were: Consumer Electronics Manufacturers
Association (CEMA)(1); Wass AudioDigital (Wass)(2);
Sonance (Sonance)(3); PHI Acoustics (PHI)(4), and Velodyne
Acoustics, Inc. (Velodyne)(5). The comments are cited as ``(name of
commenter), Comment (designated number), p. __.'' All Rule ANPR
comments are on the public record and are available for public
inspection in the Public Reference Room, Room 130, Federal Trade
Commission, 600 Pennsylvania Ave., NW, Washington, DC, from 8:30
a.m. to 5 p.m., Monday through Friday, except federal holidays.
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Part B--Analysis of Proposed Amendments
1. Proposed Amendment to Required Disclosures Section of the Amplifier
Rule
a. Background
Section 432.2 of the Rule requires disclosure of maximum rated
total harmonic distortion (``THD''), power bandwidth, and impedance
whenever a power claim is made in any advertising, including
advertising by retail stores, direct mail merchants, and manufacturers.
In the ANPR, the Commission concluded tentatively that improvements in
amplifier technology since the Rule's promulgation in 1974 appeared to
have reduced the benefits to consumers of disclosure of THD in medic
advertising in the ANPR, the Commission also concluded tentatively that
an insufficient number of consumers would understand the meaning and
significance of the remaining triggered disclosures concerning power
bandwidth and impedance to justify their publication in media
advertising. Accordingly, the ANPR sought comment on whether the
Commission should initiate a rulemaking proceeding to amend the Rule to
exempt media advertising, including advertising on the Internet, from
disclosure of THD and the associated power bandwidth and impedance
ratings when a power output claim is made. In the ANPR, the Commission
tentatively concluded further that the proposed exemption should be
conditioned on the requirement that the primary power output
specification disclosed in any advertising distributed through the
media be the manufacturer's rated minimum sine wave continuous average
power output, per channel, at an impedance of 8 ohms, or, if the
amplifier is not designed for an 8-ohm impedance, at the impedance for
which the amplifier is primarily designed.
Finally, the ANPR explained the Commission's tentative conclusion
that publication of all other power output claims currently subject to
the Rule, including those appearing in manufacturer specification
sheets that are either in print or reproduced on the Internet, should
continue to trigger the requirement that the seller provide the full
complement of disclosures concerning power bandwidth, maximum harmonic
distortion, and impedance, so that interested consumers could obtain
this information prior to purchase.
The Commission received four comments on the tentatively proposed
exemption of THD, bandwidth, and impedance disclosures in media
advertising. CEMA, the principal trade association for the electronics
industry, supported the proposed exemption, including the requirement
that the primary power output specification disclosed in media
advertising be continuous per-channel output at an 8-ohm impedance
(unless the amplifier is designed primarily for a different impedance
level).\3\ Velodyne, a manufacturer of powered loudspeakers, also
supported the exemption of THD and bandwidth disclosures in media
advertising, stating that they contain little useful information for
today's consumer.\4\ This commenter suggested, however,that the
standardized impedance value for power output claims be 4 ohms rather
than the proposed 8 ohms.\5\ No explanation was provided for this
suggestion. A third commenter, Wass, opposed elimination of the
required THD, bandwidth, and impedance disclosures in advertising,
stating that sellers could take unfair advantage of the consumer
through in-store sales techniques that obscure the true performance
capabilities of an amplifier.\6\ Finally, a fourth commenter, Sonance,
stated simply that the relationship between power and distortion is
vital to specifying power output, and recommended against the
tentatively proposed exemption.\7\
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\3\ CEMA, (1), pp. 2-3.
\4\ Velodyne, (5) p. 1.
\5\ Id.
\6\ Wass, (2), p. 3.
\7\ Sonance, (3), p. 1.
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b. Proposed Amendment and Reasons Therefore
Based on its review of the comments on its ANPR, the Commission has
reason to believe that the disclosure of THD, power bandwidth, and
impedance in media advertising that contains a triggering power output
claim no longer provides sufficient consumer benefit to justify the
associated increase in advertising costs. Two of the commenters stated
that the disclosures were of little value. Two commenters opposed the
tentatively proposed exemption, with one expressing concern that
eliminating the disclosure requirements in media advertising would
allow sales personnel to take advantage of consumers at retail stores.
As the Commission noted in the ANPR, however, very few amplifiers in
today's market generate high levels of THD (e.g., more than one
percent) using the FTC testing protocol. Further, those few
[[Page 38612]]
amplifiers that do generate appreciable levels of THD tend to be very
expensive vacuum tube designs that are sold to a specialized group of
consumers that may not consider THD specifications an important
consideration in their purchase decisions. Thus, it would not appear
that sales personnel at retail stores would have an appreciable
incentive to mislead consumers concerning the distortion
characteristics of an amplifier. Finally, consumers who are interested
in the Rule's THD, power bandwidth, and impedance specifications should
be able to find such information relatively easily in product brochures
at retail stores or on the Internet.
Commenters on the ANPR did not agree on which impedance value
should serve as the standard for power output claims in media
advertising under the tentatively proposed disclosure exemption. CEMA
endorsed the value of 8 ohms suggested in the ANPR. Velodyne, however,
commented that the standardized impedance value should be 4 ohms. The
Commission notes that, under the proposed exemption, for amplifiers
designed to drive a specific loudspeaker in an integrated powered
configuration, the seller could base power output claims on an
impedance of 4 ohms, if the amplifier is powering a loudspeaker that is
rated at a nominal impedance of 4 ohms. Although the Commission has
reason to believe that the majority of non-powered loudspeakers are
rated at a nominal impedance of 8 ohms, and that this value should
therefore be adopted as the basis for power output claims in media
advertising for separate stand-alone amplifiers, this NPR solicits
further comment on whether the Commission's tentative conclusion on
this issue is correct.
Accordingly, the Commission proposes amending Sec. 432.2 of the
Rule to exempt advertising disseminated through the media, including
advertising on the Internet, from disclosure of total rated harmonic
distortion and the associated power bandwidth and impedance ratings
when a power output claim is made. The exemption for advertising
disseminated through the media would be conditioned on the requirement
that the primary power output specification disclosed in any media
advertising be the manufacturer's rated minimum sine wave continuous
average power output, per channel, at an impedance of 8 ohms, or, if
the amplifier is not designed for an 8-ohm impedance, at the impedance
for which the amplifier is primarily designed. Publication of all other
power output claims currently subject to the Rule, including those
appearing in manufacturer specification sheets that are either in print
or reproduced on the Internet, would continue to trigger the
requirement that the seller provide the full complement of disclosures
concerning power bandwidth, maximum harmonic distortion, and impedance,
so that interested consumers could obtain this information prior to
purchase.
2. Proposed Amendment Relating to Self-Powered Loudspeakers
a. Background
When the FRN was published, the Rule did not specifically mention
self-powered speakers as an example of sound amplification equipment
manufactured or sold for home entertainment purposes. In the FRN, the
Commission solicited comment on its tentative conclusion that the Rule
covers: (A) Self-powered speakers for use with (i) home computers, (ii)
home sound systems, (iii) home multimedia systems; and (B) other sound
power amplification equipment for home computers. On July 9, 1998, the
Commission published in the Federal Register a non-substantive
technical amendment to the Rule to clarify that the Rule applies to the
types of self-powered loadspeakers enumerated above (63 FR 37234).
In the ANPR published elsewhere in the July 9, 1998 Federal
Register (63 FR 37238), the Commission explained that comments received
in response to the FRN indicated that a clarification was needed
concerning the testing procedure that should be followed in applying
the Rule's continuous power rating protocol to self-powered subwoofer-
satellite combination speaker systems that employ two or more power
amplifiers sharing a common power supply. These comments contained
recommendations for two alternative approaches for such combination
self-powered speakers. The first proposed procedure was for power
measurements to be made with all associated channels of both the
subwoofer and satellite amplifiers driven simultaneously to full power
using a test tone at the system's crossover frequency. The second
proposal was to allow manufacturers of such equipment to test the
subwoofer and satellite amplifiers separately over their respective
frequency bandwidth.
In the ANPR, the Commission announced its tentative conclusion that
the second procedure was more appropriate, given the types of power
demands combination self-powered speakers would most likely encounter
in actual home use. Accordingly, in the ANPR the Commission sought
comment on whether to initiate a rulemaking proceeding to clarify the
Amplifier Rule by amending Sec. 432.2 of the Rule to included a note
stating that, for self-powered combination speaker systems that employ
two or more amplifiers dedicated to different portions of the audio
frequency spectrum, only those channels dedicated to the same audio
frequency spectrum need be fully driven to rated per channel power
under Sec. 432.2(a)(2).
The Commission received three comments on the tentatively proposed
clarification of testing procedures for self-powered combination
subwoofer-satellite loudspeaker systems. CEMA supported the
Commission's clarification. CEMA stated that this approach would allow
self-powered subwoofers to be rated over their operating frequency
range and at their appropriate impedance value.\8\ Sonance also
endorsed the tentative proposal to restrict the power tests of such
equipment to each amplifier's intended operating range.\9\ The final
commenter, Velodyne, disagreed with the Commission's tentative proposal
and stated that power rating tests for self-powered combination
subwoofer-satellite loudspeakers should be conducted with all channels
operating simultaneously. Velodyne proposed that the amplifiers driving
the subwoofer and satellites should be given a test signal within each
amplifer's typical range, and suggested a combination 60Hz-1,000Hz
tone.\10\ Velodyne stated that the power supply was the most costly and
critical component determining an amplifier's continuous power output
capability, and that the primary quantitative measurement of interest
to consumers is the amount of watts the power supply can deliver.\11\
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\8\ CEMA, (1), p. 3.
\9\ Sonance, (3), p. 1.
\10\ Velodyne, (5), p. 3.
\11\ Id.
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b. Proposed Amendment and Reasons Therefore
Based on the comments submitted in response to the FRN and the
ANPR, the Commission tentatively concludes that the most appropriate
method of testing self-powered combination subwoofer-satellite
loudspeaker systems under the Rule is to require simultaneous operation
only of those channels dedicated to the same portion of the audio
frequency spectrum. As noted in the ANPR, the Commission does not have
sufficient evidence to concluded that in-home use, under even strenuous
conditions, typically would place
[[Page 38613]]
maximum continuous power demands simultaneously on both the subwoofer
and satellite amplifiers at the crossover frequency. Rather, it is the
Commission's understanding that such demands are more likely to occur
in portions of the audio spectrum that would be assigned primarily
either to the subwoofer amplifier or the satellite amplifier. In
contrast, conventional stand-alone stereo amplifiers, which incorporate
left and right-channel amplifiers that must reproduce signals covering
the full musical frequency bandwidth, will more commonly be required to
meet simultaneous continuous power demands that are present in both
channels (such as might occur when a pipe organ play a sustained pedal
tone in the deep bass.
In addition, a simultaneous power test of both the subwoofer and
the satellite amplifiers would, from a practical standpoint, require a
single test signal at the crossover frequency, or a single combination
set of tones, such as the 60Hz-1,000Hz composite signal suggested by
Velodyne. This would mean that the resulting power and THD
specifications might not be valid over the full frequency range over
which each amplifier was designed to operate.
Accordingly, the Commission proposed amendment 432.2(a)(2) of the
Rule to include a clarifying note stating that, 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, only those channels dedicated to the same
audio frequency spectrum need be fully driven to rated per channel
power.
3. Proposed Amendment to the Amplifier Rule Preconditioning Requirement
a. Background
Section 432.3(c) of the Rule specifies that an amplifier must be
preconditioned by simultaneously operating all channels at one-third of
rated power output for one hour using a sinusoidal wave at a frequency
of 1,000Hz. The ANPR sought comment on whether the Commission should
amend the Rule to reduce the preconditioning power output requirement
from one-third of rated power to a lower figure, such as one-eighth of
rated power.
CEMA supported reducing the preconditioning power output
requirement to below the current one-third power. CEMA stated that the
current one-third power requirement is ``beyond what can be expected
through normal use in the home'' and is ``harsh and unrealistic.'' \12\
CEMA claimed that in order to meet the physical conditions presented by
the Rule's existing preconditioning requirement, manufacturers must
design and incorporate in amplifiers larger and costlier heat
sinks.\13\ CEMA listed several alternative solutions, including
operation at idle during preconditioning, operation at a small fixed
power representative of average power during typical in-home operation,
or preconditioning at one-eighth power. CEMA went on to state that the
one-eighth power option ``has the virtue of being consistent with
current industry and international testing specification.'' \14\
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\12\ CEMA, (1), p. 2
\13\ Id.
\14\ Id.
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A second commenter, Velodyne, stated that a preconditioning period
is not really necessary, but that the Commission should follow
Underwriters Laboratories' (``UL'') one-eighth power requirement if the
preconditioning requirement is retained.\15\ Velodyne did not provide
any explanation for its conclusion that no preconditioning period of
any kind was necessary under the Rule.
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\15\ Velodyne, (5), p. 1.
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A third commenter, Wass, concluded from a series of calculations
that reducing the preconditioning requirement from one-third to one-
eighth power would reduce the thermal stress (expressed in ``watts of
heat'' delivered to an amplifer's heatsink) by approximately 24
percent.\16\ Wass, however, opposed amending the Rule to provide such a
reduction in specified preconditioning power output because the
consumer would get ``a poorer unit.'' \17\ Wass did not provide any
evidence, however, that would allow the Commission to compare the
magnitude of the alleged reduction in amplifier quality with the
magnitude of the associated reduction in manufacturing costs resulting
from the one-eighth power preconditioning standard.
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\16\ Wass, (2), p. 2.
\17\ Id.
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Finally, a fourth commenter, Sonance, stated that the one-third
power preconditioning requirement should be retained and enforced
evenly.\18\ Sonance saw no technical problem with the requirement,
stating that many generations of consumer electronic products have been
built to this standard.\19\
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\18\ Sonance, (3), p. 1.
\19\ Id.
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b. Proposed Amendment and Reasons Therefore
Based on the aforementioned comments, the Commission tentatively
concludes that the current one-third power preconditioning requirement
imposes unnecessary costs on amplifier manufacturers and is not needed
to measure amplifiers accurately under conditions that represent actual
in-home use. Two of the commenters, including the principal trade
association for the electronics industry, did not believe that there
was any benefit to consumers that would justify the increased heat-sink
capacity needed to withstand the current preconditioning requirement. A
third commenter provided evidence that lowering the preconditioning
requirement to one-eighth power would in fact reduce thermal stress
significantly, and thus allow manufacturers to provide less costly heat
sink capacity.
None of the commenters provided any evidence that lowering the
preconditioning standard to one-eighth power, or some other value,
would lead to a reduction in the actual in-home performance
capabilities of amplifiers. In addition, both commenters that supported
a reduction in the preconditioning power-output requirement either
recommended the UL's one-eighth-power preconditioning standard
explicitly, or considered the UL standard an acceptable choice among
several alternatives.
Accordingly, the Commission proposes amending Sec. 432.3(c) of the
Rule by reducing the specified per-channel power output during
preconditioning from one-third of rated power output for one hour to
one-eighth of rated power output for one hour.
c. Additional Preconditioning Issue and Proposed Amendment
As discussed in Part B(2) above, the Commission is proposing to
amend the Rule to clarify the manner in which power tests should be
conducted for self-powered subwoofer-satellite combination loudspeaker
systems. In reviewing the technical issues related to this proposed
amendment, the Commission has tentatively concluded that clarification
also is required concerning the manner in which powered subwoofers
should be preconditioned under the Rule.
Section 432.3(c) of the Rule specifies a preconditioning sinusoidal
test tone of 1,000Hz. Most self-powered subwoofer systems, however,
incorporate crossover circuitry that filters out frequencies above the
bass range. Depending upon the crossover frequency and the
[[Page 38614]]
steepness of the crossover slope, such crossover circuitry may severely
attenuate a test tone of 1,000Hz and prevent the subwoofer amplifier
from being driven to one-third of rated power (as currently required by
the Rule), or even to one-eighth of rated power (as specified in the
proposed amendment). Thus, it would appear that testers of self-powered
subwoofers would need to select a preconditioning frequency
considerably lower than 1,000Hz.
The Commission, therefore, has tentatively concluded that the Rule
should be amended to clarify the preconditioning procedure for self-
powered subwoofers. The Commission does not currently believe, however,
that any such amendment should specify the precise frequency of the
test tone that is to be used in preconditioning powered subwoofers.
Powered subwoofers may differ widely in the portion of the bass
spectrum over which they are designed to operate, and, consequently,
there may not be a single preconditioning frequency that is appropriate
for all powered subwoofers. The Commission has tentatively concluded,
therefore, the testers of powered subwoofers should have the
flexibility to choose for the sinusoidal preconditioning signal any
frequency (within the intended operating bandwidth of the subwoofer
amplifier) that will allow the amplifier to be driven for one hour to
the required proportion of rated power output.
Accordingly, the Commission proposes amending Sec. 432.3(c) of the
Rule by adding an explanatory note stating that for amplifiers utilized
as a component in a self-powered subwoofer system, the sinusoidal wave
used as a preconditioning signal may be any frequency within the
amplifier's intended operating bandwidth that will allow the amplifier
to be driven to one-eighth of rated power for one hour.
Part C--Rulemaking Procedures
The Commission finds that the public interest will be served by
using expedited procedures in this proceeding. Using expedited
procedures will support the Commission's goals of clarifying existing
regulations, when necessary, and eliminating obsolete or unnecessary
regulation without an 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.
The Commission, therefore, has determined, pursuant to 16 CFR 1.20,
to use the procedures set forth in this notice. These procedures
include: (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; (4) obtaining a final recommendation from staff; and (5)
announcing final Commission action in a notice published in the Federal
Register.
Part D--Requests for Public Hearings
Because written comments appear adequate to present the views of
all interested parties, a public hearing has not been scheduled. If any
person would like to present testimony at a public hearing, he or she
should follow the procedures set forth in the DATES and ADDRESSES
sections of this notice.
Part E--Section-by-Section Description of Proposed Amendments
1. Amendment Relating to Exemption from Required Disclosures in Media
Advertising
The Commission proposes to amend Sec. 432.2 to exempt media
advertising, including advertising on the Internet, from disclosure of
maximum total rated harmonic distortion, power bandwidth, and load
impedance. This exemption would be conditioned on the requirement that
the primary power output specification disclosed in any media
advertising be the manufacturer's rated minimum sine wave continuous
average power output, per channel, at an impedance of 8 ohms, or, if
the amplifier is not designed for an 8-ohm impedance, at the impedance
for which the amplifier is primarily designed. All other power output
claims currently subject to the Rule, including those appearing in
manufacturer specification sheets that are either in print or
reproduced on the Internet, would continue to trigger the full
complement of disclosures concerning power bandwidth, maximum rated
harmonic distortion, and impedance.
2. Clarifying Amendment Relating to Testing Procedures for Self-Powered
Speakers
The Commission proposes to amend Sec. 432.2(a) by adding a
clarifying note stating that, for self-powered combination speaker
systems that employ two or more amplifiers dedicated to different
portions of the audio frequency spectrum, only those channels dedicated
to the same audio frequency spectrum need be fully driven
simultaneously to rated per channel power.
3. Amendments Relating to Preconditioning
The Commission proposes to amend Sec. 432.3(c) to read as follows:
The amplifier shall be preconditioned by simultaneously
operating all channels at one-eighth of rated power output for one
hour using a sinusoidal wave at a frequency of 1,000Hz;
The Commission also proposes to amend Sec. 432.3(c) by adding an
explanatory note stating that, for amplifiers utilized as a component
in a self-powered subwoofer system, the sinusoidal wave used as a
preconditioning signal may be any frequency within the amplifier's
bandwidth that will allow the amplifier to be driven to one-eighth of
rated power for one hour.
Part F--Preliminary Regulatory Analysis and Regulatory Flexibility
Act Requirements
Under section 22 of the FTC Act, 15 U.S.C. 57b, the Commission must
issue a preliminary regulatory analysis for a proceeding to amend a
rule only when it (1) estimates that the amendment will have an annual
effect on the national economy of $100,000,000 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. The Commission has 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. The Commission, however, requests
comment on the economic effects of the proposed amendments.
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-12, requires
that the agency conduct an analysis of the anticipated economic impact
of the proposed amendments on small businesses. The purpose of a
regulatory flexibility analysis is to ensure that the agency considers
impact on small entities and examines regulatory alternatives that
could achieve the regulatory purpose while minimizing burdens on small
entitles. Section 605 of the RFA, 5 U.S.C. 605, provides that such an
analysis is not required if the agency head certifies that the
regulatory action will not have a significant economic impact on a
substantial number of small entities.
Because the Amplifier Rule covers manufacturers and importers of
power amplification equipment for use in the
[[Page 38615]]
home, the Commission believes that any amendment to the Rule may affect
a substantial number of small businesses. Nevertheless, the proposed
amendments would not appear to have a significant economic impact upon
such entities. Specifically, the proposed change in the preconditioning
protocol and the proposed exemption of disclosure of THD, bandwidth,
and impedance specifications in media advertising should allow a
moderate reduction in amplifier manufacturing and advertising costs
that should benefit both small and larger businesses. The proposed
clarification of testing procedures for combination subwoofer-satellite
self-powered loudspeaker systems is the least burdensome application of
the Rule among the alternative proposals suggested by commenters, and
should not have a significant disproportionate impact on the testing
costs of small manufacturers of such power amplification equipment.
Based on available information, therefore, the Commission certifies
that amending the Amplifier Rule as proposed will not have a
significant economic impact on a substantial number of small
businesses. To ensure that no significant economic impact is being
overlooked, however, the Commission requests comments on this issue.
The Commission also seeks comments on possible alternatives to the
proposed amendments to accomplish the stated objectives. After
reviewing any comments received, the Commission will determine whether
a final regulatory flexibility analysis is appropriate.
Part G--Paperwork Reduction Act
The Amplifier Rule contains various information collection
requirements for which the Commission has obtained clearance under the
Paperwork Reduction Act, 44 U.S.C. 3501 et seq., Office of Management
and Budget (``OMB'') Control Number 3084-0105. As noted above, for
purposes of performing the tests necessary for affected entities to
make the disclosures required under the Rule, Sec. 432.3(c) of the
Rules requires that an amplifier be preconditioned by simultaneously
operating all channels at one-third of rated power output for one hour
using a sinusoidal wave at a frequency of 1,000Hz. In addition,
Sec. 432.2 of the Rules requires disclosure of the manufacturer's rated
minimum sine wave continuous average power output, in watts per
channel, maximum rated total harmonic distortion, power bandwidth, and
impedance whenever a power claim is made in advertising, including
advertising by retail stores, direct mail merchants, and manufacturers.
The proposed amendments would not increase the paperwork burden
associated with the aforementioned paperwork requirements. Three of the
amendments proposed by the Commission would not increase or alter the
Rule's paperwork requirements, and one amendment proposed by the
Commission would reduce the paperwork burden for businesses.
Consequently, there are no additional ``collection of information''
requirements included in the proposed amendments to submit to OMB for
clearance under the Paperwork Reduction Act. A separate Notice
soliciting public comment on extending the OMB clearance for the Rule
through March 31, 2002, was published in the Federal Register on
January 8, 1999 (64 FR 1203). If, as expected, OMB extends clearance
for the Rule as presently written, any reduction of the paperwork
burden associated with the Rule's requirements that may result from
this proceeding will be reflected in subsequent reviews of the Rule for
OMB clearance.
The Commission's proposed amendment to reduce the specified per-
channel power output of amplifiers during preconditioning from one-
third of rated power output for one hour to one-eighth of rated power
output for one hour would not alter or increase the paperwork burden
associated with this requirement because amplifiers must continue to be
preconditioned for one hour. Also, with respect to preconditioning, the
proposed amendment to add a note to the Rule stating that, for
amplifiers utilized as a component in a self-powered subwoofer system,
the sinusoidal wave used as a preconditioning signal may be any
frequency within the amplifier's intended operating bandwidth that will
allow the amplifier to be driven to one-eighth of rated power for one
hour, would not increase the Rule's paperwork burden. The note would
not change the Rule's requirements, but merely would clarify the
preconditioning procedure for self-powered subwoofers.
Similarly, the proposed amendment to add a note to the Rule stating
that, for self-powered combination speaker systems that employ two or
more amplifiers dedicated to different portions of the audio frequency
spectrum, only those channels dedicated to the same audio frequency
spectrum need be fully driven to rated per channel power also would not
increase the Rule's paperwork burden. The note would not alter the
Rule's requirements, but merely would clarify the test procedure that
should be followed in applying the Rule's continuous power rating
protocol to self-powered subwoofer-satellite combination speaker
systems that employ two or more power amplifiers sharing a common power
supply.
The proposed amendment of the Rule to exempt from media
advertising, including advertising on the Internet, disclosure of an
amplifier's total rated harmonic distortion and the associated power
bandwidth and impedance ratings when a power output claim for an
amplifier is made would result in reducing the Rule's paperwork burden.
Although the exemption for media advertising would be conditioned on
the requirement that the amplifier's primary power output specification
continue to be disclosed in any media advertising, the net effect of
the proposed amendment would be to reduce the Rule's paperwork burden
for businesses.
Thus, the Commission concludes that the proposed amendments would
not increase the paperwork burden associated with compliance with the
Rule. To ensure that no significant paperwork burden is being
overlooked, however, the Commission requests comments on this issue.
Part H--Additional Information for Interested Persons
1. Motions or Petitions
Any motions or petitions in connection with this proceeding must be
filed with the Secretary of the Commission.
2. Communications by Outside Parties to Commissioners or Their Advisors
Pursuant to Commission Rule 1.18(c)(1), 16 CFR 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 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.\20\
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\20\ See 15 U.S.C. 57a(i)(2)(A); 45 FR 50814 (1980); 45 FR 78626
(1980).
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[[Page 38616]]
Part I--Invitation to Comment and Questions for Comment
Members of the public are invited to comment on any issues or
concerns they believe are relevant or appropriate to the Commission's
consideration of proposed amendments to the Amplifier Rule. The
Commission requests that factual data upon which the comments are based
be submitted with the comments. In addition to the issues raised above,
the Commission solicits public comment on the costs and benefits to
industry members and consumers of each of the proposals, as well as the
specific questions identified below. These questions are designed to
assist the public and should not be construed as a limitation on the
issues on which public comment may be submitted.
The written comments submitted will be available for public
inspection in accordance with the Freedom of Information Act, 5 U.S.C.
552, and Commission regulations, on normal business days between the
hours of 8:30 a.m. to 5 p.m. at the Federal Trade Commission, 600
Pennsylvania Ave., NW, Room 130, Washington, DC 20580, (202) 326-2222.
Questions
A. Exemption From Rule-Required Disclosures in Media Advertising
(1) Should the Commission amend Sec. 432.2 of the Rule to exempt
disclosure of total rated harmonic distortion and the associated power
bandwidth and impedance ratings when a power output claim is made in
media advertising?
(2) If the Commission amends the Rule to allow the above exemption,
should this exemption be conditioned on the requirement that the
primary power output specification disclosed in any media advertising
be the manufacturer's rated minimum sine wave continuous average power
output, per channel, at an impedance of 8 ohms, or, if the amplifier is
not designed primarily for an 8-ohm impedance, at the impedance for
which the amplifier is primarily designed?
(3) What is the most common nominal impedance rating for the
majority of home loudspeakers that are designed to be driven
conventionally by separate sound amplification equipment?
B. Rule Coverage of Self-Powered Loudspeakers for Use in the Home
(4) Should the Commission amend Sec. 432.2(a) of the Rule to
clarify that, for self-powered combination speaker systems that employ
two or more amplifiers dedicated to different portions of the audio
frequency spectrum, only those channels dedicated to the same audio
frequency spectrum need be fully driven to rated per channel power
under Sec. 432.2(a)(2) of the Rule? If not, how should the Commission
amend the Rule to clarify testing procedures for such self-powered
combination speaker systems?
C. The Rule's Preconditioning Requirement
(5) Should the Commission amend Sec. 432.3(c) of the Rule to reduce
the preconditioning power output requirement from one-third of rated
power to one-eighth of rated power?
(6) Should the Commission amend Sec. 432.3(c) of the Rule to
explain that, for amplifiers utilized as a component in a self-powered
subwoofer system, the sinusoidal wave used as a preconditioning signal
may be any frequency within the amplifier's normal operating bandwidth
that will allow the amplifier to be driven to one-eighth of rated power
for one hour? If not, how should the Commission amend the Rule to
clarify the preconditioning protocol for self-powered subwoofers?
Authority: 15 U.S.C. 41-58.
List of Subjects in 16 CFR Part 432
Amplifiers, Home entertainment products, Trade practices.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-18302 Filed 7-16-99; 8:45 am]
BILLING CODE 6750-01-M
