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

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Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products; Final Rule Friday, December 22, 2000 Part VIII Federal Trade Commission 16 CFR Part 432 Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products; Final Rule VerDate 11<MAY>2000 15:05 Dec 21, 2000 Jkt 194001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\22DER6.SGM pfrm02 PsN: 22DER6 81232 Federal Register / Vol. 65, No. 247 / Friday, December 22, 2000 / Rules and Regulations FEDERAL TRADE COMMISSION commerce within the meaning of clarify testing procedures for self- section 5(a)(1) of the FTC Act, 15 U.S.C. powered speakers; and (3) amend 16 CFR Part 432 45(a)(1). The Commission undertook certain required test procedures that this rulemaking proceeding as part of may impose unnecessary costs on Trade Regulation Rule Relating To the Commission's ongoing program of manufacturers. The ANPR also Power Output Claims For Amplifiers evaluating trade regulation rules and announced that the Commission had Utilized in Home Entertainment industry guides to determine their determined not to initiate a proceeding Products effectiveness, impact, cost and need. to amend the Rule to cover power AGENCY: Federal Trade Commission. The Amplifier Rule was promulgated ratings for automotive sound on May 3, 1974 (39 FR 15387), to assist amplification equipment. Finally, the ACTION: Final rule. consumers in purchasing power Commission published elsewhere in the SUMMARY: The Federal Trade amplification equipment for home July 9, 1998 Federal Register a Notice Commission (``Commission'' or ``FTC''), entertainment purposes by of Final Action announcing a non- pursuant to section 18 of the Federal standardizing the measurement and substantive technical amendment to the Trade Commission Act, issues final disclosure of various performance Rule clarifying that the Rule covered amendments to its Trade Regulation characteristics of the equipment. On self-powered loudspeakers for use in the Rule on Power Output Claims for April 7, 1997, the Commission home (63 FR 37234). Amplifiers Utilized in Home published a Federal Register Notice The ANPR elicited five comments.1 Entertainment Products (``Amplifier (``FRN'') seeking comment on the Rule Based on the comments responding to Rule'' or ``Rule''). The Commission as part of an ongoing project to review the ANPR, and on other evidence amends the Rule to: exempt sellers who all Commission rules and guides to discussed below, the Commission make power output claims in media determine their current effectiveness published an NPR on July 19, 1999 (64 2 advertising from the requirement to and impact (62 FR 16500). This FRN FR 38610). In the NPR, the Commission disclose total rated harmonic distortion sought comment on the costs and proposed amending the Rule to (1) and the associated power bandwidth benefits of the Rule, what changes in the exempt sellers who make power output and impedance ratings; clarify the Rule would increase its benefits to claims in media advertising from the manner in which the Rule's testing purchasers and how those changes requirement to disclose total rated procedures apply to self-powered would affect compliance costs, and harmonic distortion and the associated subwoofer-satellite combination speaker whether technological or marketplace power bandwidth and impedance systems; and reduce the preconditioning changes have affected the Rule. The rating; (2) clarify the manner in which power output requirement from one- FRN also sought comment on issues the rule's testing procedures apply to third of rated power to one-eighth of related to the Rule's product coverage, self-powered subwoofer-satellite rated power. This document constitutes test procedures, and disclosure combination speaker systems; and (3) the Commission's Statement of Basis requirements. reduce the preconditioning power The comments in response to the FRN and Purpose for the amendments. output requirement from one-third of generally expressed continuing support rated power to one-eighth of rated EFFECTIVE DATES: This Rule is effective for the Rule, stating that it has given power.3 The NPR elicited five on February 20, 2001. consumers a standardized method of comments.4 ADDRESSES: Requests for copies of the comparing the power output of audio In the NPR, the Commission also amended Rule and the Statement of amplifiers, and has created a level announced that pursuant to 16 CFR Basis and Purpose should be sent to the playing field among competitors. The Consumer Response Center, Federal comments also suggested that there have 1 The commenters were: Consumer Electronics Trade Commission, Room 130, 600 been technological and marketplace Manufacturers Association (CEMA)(1); Wass ∼ Pennsylvania Ave., N.W., Washington, changes that may warrant modifications Audio Digital (Wass)(2); Sonance (Sonance)(3); PHI Acoustics (PHI)(4); and Velodyne Acoustics, Inc. DC 20580. to the Rule's testing and disclosure (Velodyne)(5). FOR FURTHER INFORMATION CONTACT: requirements, and a clarification of the 2 In accordance with section 18 of the FTC Act, Dennis Murphy, Economist, Division of Rule's applicability to self-powered 15 U.S.C. 57a, the Commission submitted this NPR Consumer Protection, Bureau of loudspeakers for use with personal to the Chairman of the Committee on Commerce, computers and home stereo systems. Science, and Transportation, United States Senate, Economics, (202) 326±3524, or Neil and the Chairman of the Committee on Commerce, Blickman, Attorney, Division of Certain comments also recommended United States House of Representatives, 30 days Enforcement, Bureau of Consumer that the Commission expand the Rule's prior to its publication in the Federal Register. Protection, (202) 326±3038, Federal coverage to include automotive sound 3 The Commission solicited public comments on amplification products. On the basis of its NPR until September 17, 1999. In response to Trade Commission, Washington, DC a request from the Consumer Electronics 20580. this review, the Commission determined Manufacturers Association, however, the to retain the Rule, but to seek additional SUPPLEMENTARY INFORMATION: Commission granted an extension of the comment comment on possible amendments to period until October 15, 1999 (64 FR 51087 (Sept. Statement of Basis and Purpose the Rule. 21, 1999)). CEMA recently changed its name to the The Commission published an Consumer Electronics Association. Part AÐIntroduction 4 The commenters were: EKSC (EKSC)(1); Audio Advanced Notice of Proposed Research (Audio Research)(2); QSC Audio (QSC)(3); This document is published pursuant Rulemaking (``ANPR'') on July 9, 1998 Thomson Consumer Electronics, Inc. (Thomson)(4); to section 18 of the FTC Act, 15 U.S.C. (63 FR 37238), seeking public comment and Consumer Electronics Manufacturers 57a et seq., the provisions of Part 1, on whether it should initiate a Association (CEMA)(5). The comments on the Commission's ANPR and NPR are cited as ``(Name Subpart B of the Commission's Rules of rulemaking proceeding by publishing a of Commenter), (designated comment number), Practice, 16 CFR 1.14, and 5 U.S.C. 551 Notice of Proposed Rulemaking (``NPR'') p.l.'' All Rule ANPR and NPR comments are on et seq. This authority permits the under section 18 of the FTC Act, 15 the public record and are available for public Commission to promulgate, modify, and U.S.C. 57a. The ANPR solicited specific inspection in the Public Reference Room, Room 130, Federal Trade Commission, 600 Pennsylvania repeal trade regulation rules that define comment on whether the Commission Ave., NW, Washington, DC, from 8:30 a.m. to 5:00 with specificity acts or practices that are should (1) eliminate certain disclosure p.m., Monday through Friday, except federal unfair or deceptive in or affecting requirements in media advertising; (2) holidays. VerDate 11<MAY>2000 17:57 Dec 21, 2000 Jkt 194001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\22DER6.SGM pfrm08 PsN: 22DER6 Federal Register / Vol. 65, No. 247 / Friday, December 22, 2000 / Rules and Regulations 81233 1.20, it would follow expedited amplifier is not designed for an 8-ohm associated increase in advertising costs. procedures in this proceeding, and (1) impedance, at the impedance for which The Commission concluded in both the publish an NPR; (2) solicit written the amplifier is primarily designed. ANPR and the NPR that very few comments on the Commission's Finally, the ANPR explained the amplifiers in today's market generate proposals to amend the Rule; (3) hold an Commission's tentative conclusion that high levels of THD (e.g., more than one informal hearing, if requested by publication of all other power output percent) using the FTC testing protocol. interested parties; (4) obtain a final claims currently subject to the Rule, Further, the Commission concluded that recommendation from staff; and (5) including those appearing in those few amplifiers that do generate announce final Commission action in a manufacturer specification sheets that appreciable levels of THD tend to be notice published in the Federal are either in print or reproduced on the very expensive vacuum tube designs Register.5 There were no requests for Internet, should continue to trigger the that are sold to a specialized group of hearings in the five comments received requirement that the seller provide the consumers that may not consider THD in response to the NPR. The full complement of disclosures specifications an important Commission, therefore, did not hold concerning power bandwidth, consideration in their purchase public hearings in this
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