[Federal Register Volume 77, Number 51 (Thursday, March 15, 2012)]
[Proposed Rules]
[Pages 15298-15310]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4865]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
[RIN 3084-AB15]
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 (FTC or Commission).
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission proposes several amendments to improve the
Appliance Labeling Rule by streamlining requirements for manufacturers,
increasing the availability of labels for consumers, and clarifying
various aspects of the Rule. Specifically, the proposed amendments
would eliminate duplicative reporting requirements for manufacturers,
introduce a uniform method for attaching labels to appliances, place
EnergyGuide labels on room air conditioner boxes instead of on the
products themselves, improve current Web site disclosures, and revise
ceiling fan labels. The proposed amendments also would clarify
enforcement rules for data reporting, testing access, and Web site
disclosures. The Commission requests comments on these proposed
changes. In addition, as a part of the Commission's systematic review
of its regulations and guides, the Commission seeks comments on the
Rule's overall costs and benefits and its overall regulatory and
economic impact.
DATES: Written comments must be received by May 16, 2012.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form by following the instructions in
section VI. of the SUPPLEMENTARY INFORMATION section below. Comments in
electronic form should be submitted using the following weblink:
https://ftcpublic.commentworks.com/ftc/energylabelingamendmentsnprm
(and following the instructions on the web-based form). Comments filed
in paper form should be mailed or delivered to the following address:
Federal Trade Commission, Office of the Secretary, Room H-135 (Annex
A), 600 Pennsylvania Avenue NW., Washington, DC 20580, in the manner
detailed in the SUPPLEMENTARY INFORMATION section below.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, Room M-8102B, 600 Pennsylvania Avenue NW.,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. FTC's Appliance Labeling Rule
The Commission's Appliance Labeling Rule, issued pursuant to the
Energy Policy and Conservation Act (EPCA),\1\ requires energy labeling
for major household appliances and other consumer products to help
consumers compare competing models.\2\ When first published in 1979,\3\
the Rule applied to eight appliance categories: refrigerators,
refrigerator-freezers, freezers, dishwashers, water heaters, clothes
washers, room air conditioners, and furnaces. Subsequently, the
Commission expanded the Rule's coverage to include categories such as
central air conditioners, heat pumps, plumbing products, lighting
products, ceiling fans, and televisions.\4\
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\1\ 42 U.S.C. 6291 et seq.
\2\ For more information about the Rule, see http://www.ftc.gov/appliances.
\3\ 44 FR 66466 (Nov. 19, 1979).
\4\ See 52 FR 46888 (Dec. 10, 1987) (central air conditioners
and heat pumps); 54 FR 28031 (Jul. 5, 1989) (fluorescent lamp
ballasts); 58 FR 54955 (Oct. 25, 1993) (certain plumbing products);
59 FR 25176 (May 13, 1994) (lighting products); 59 FR 49556 (Sep.
28, 1994) (pool heaters); 71 FR 78057 (Dec. 26, 2006) (ceiling
fans); and 76 FR 1038 (Jan. 6, 2011) (televisions).
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[[Page 15299]]
The Rule requires manufacturers to attach yellow EnergyGuide labels
to certain covered products.\5\ It prohibits retailers from removing
these labels or rendering them illegible.\6\ In addition, the Rule
directs sellers, including retailers, to post label information on Web
sites and in paper catalogs from which consumers can order covered
products.\7\
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\5\ See 42 U.S.C. 6302(a)(1); 16 CFR 305.4(a)(1). The Rule
requires an energy disclosure or label on all covered products or on
their packages. The EnergyGuide label must appear on refrigerators,
refrigerator-freezers, freezers, room air conditioners, clothes
washers, dishwashers, pool heaters, central air conditioners, heat
pumps, furnaces, and televisions. See 16 CFR 305.11, 305.12, 305.14,
and 305.17. The EnergyGuide label constitutes a visually uniform
``brand'' for all these products, but it has different dimensions
and disclosures based on the nature and energy use of the product.
See 16 CFR 305 Appx. L (label prototypes). Ceiling fans must bear
labels somewhat similar to EnergyGuide labels, but visually
distinct. 16 CFR 305.13. The remainder of the Rule's covered
products bear other types of labels or disclosures related to energy
or water use (for plumbing products), rather than the EnergyGuide
brand. For example, common consumer light bulbs manufactured
beginning in 2012 must bear a ``Lighting Facts'' label.
\6\ See 16 CFR 305.4(a)(2); 42 U.S.C. 6302(a)(2).
\7\ See 16 CFR 305.20; 42 U.S.C. 6296(a).
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EnergyGuide labels for appliances and televisions contain three key
disclosures: estimated annual operating cost (for most products), a
``range of comparability'' showing the highest and lowest energy
consumption or efficiencies for all similar models, and a product's
energy consumption or energy efficiency rating as determined from
standard Department of Energy (DOE) tests. The Rule specifies this
content as well as the label's format. Manufacturers cannot place any
information on the label other than that specifically allowed by the
Rule.
Finally, the Rule contains reporting requirements for most
products. Under these requirements, manufacturers must submit data to
the FTC both when they begin manufacturing new models and annually.\8\
These reports must contain, among other things, estimated annual energy
consumption or energy efficiency ratings.
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\8\ See 16 CFR 305.8; 42 U.S.C. 6296(b).
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II. Proposed Amendments
The Commission seeks comment on several proposed changes to reduce
the Rule's reporting burdens, increase the availability of energy
labels to consumers, and generally to improve existing requirements.
Specifically, the proposed changes would: (1) Eliminate duplicative
requirements by harmonizing FTC and DOE reporting and testing rules;
(2) prohibit hang tag labels for all covered clothes washers,
dishwashers, and refrigerators and instead require adhesive labels; (3)
require placement of room air conditioner labels on display boxes
instead of on the product; (4) improve retailer Web site and paper
catalog disclosures; (5) include estimated operating cost information
on ceiling fan labels; (6) include specific capacity numbers on clothes
washer EnergyGuide labels; (7) require a QR (``Quick Response'') code
on EnergyGuide labels to link mobile phone users to FTC and DOE
information; (8) update product definitions for refrigerators and
freezers; (9) clarify the Rule's enforcement provisions; and (10)
shorten the Rule's title.\9\ The following addresses each of these
proposals in detail.
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\9\ The Commission is also proposing several technical
corrections described in section III.
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A. Harmonization of Reporting and Testing Requirements
By harmonizing existing FTC and DOE regulations, the proposed
amendments would streamline existing reporting requirements. Currently,
the FTC requires manufacturers to submit annual reports containing
energy-related information about their covered products.\10\ Similarly,
DOE requires manufacturers to submit reports certifying that their new
products meet federal efficiency standards.\11\ The proposed amendments
would streamline the Rule's reporting burden in three ways.\12\
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\10\ See 16 CFR 305.8; 42 U.S.C. 6296(b)(4). In addition to
annual reports, manufacturers must submit a report for each new
model prior to distribution of that model.
\11\ See 10 CFR Part 430; 42 U.S.C. 6296.
\12\ These amendments would not affect televisions and LED bulbs
because the Rule's reporting requirements do not apply to those
products. 76 FR 1038, 1040 n.28 (Jan. 6, 2011). The Rule does not
currently require reporting for televisions and light-emitting diode
lamps because no DOE test procedures exist for those products at
this time.
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First, under current rules, manufacturers of each covered product
must submit one report to DOE and another, largely duplicative report
to the FTC. The proposed amendments would allow manufacturers to meet
FTC reporting requirements by using DOE's new web-based tool for energy
reporting (the ``Compliance and Certification Management System''
(CCMS)).\13\ Once manufacturers upload their data, the FTC would be
able to obtain the information from DOE and place it on the public
record.\14\ This change would ease reporting for manufacturers and
eliminate confusion caused by two separate government data collection
requirements for identical products.\15\
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\13\ 75 FR 27183 (May 14, 2010).
\14\ See 16 CFR 4.9(b)(10)(xii).
\15\ The Commission does not propose to eliminate FTC reporting
requirements altogether because EPCA requires manufacturers to
submit annual reports to the FTC containing ``relevant data
respecting energy consumption and water use developed in accordance
with'' applicable DOE test procedures. 42 U.S.C. 6296(b)(4).
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Second, the Commission proposes to harmonize FTC reporting
requirements with DOE certification rules. To achieve this goal, the
Commission proposes requiring the same report content as DOE. However,
for ceiling fans, the FTC will continue to maintain separate reporting
requirements because DOE's regulations contain test procedures for
these products but do not currently require manufacturers to conduct
such tests.
Third, the Commission proposes to clarify the DOE testing
requirements manufacturers must use to determine energy information for
FTC labels. The current FTC Rule requires adherence to applicable DOE
test procedures, but does not mention several DOE requirements related
to testing, including sampling rules, testing accreditation (for light
bulbs), and DOE testing waiver procedures. The amendments would specify
that manufacturers must test their products in accordance with these
applicable DOE requirements.\16\ This amendment should eliminate any
confusion among manufacturers and, therefore, ensure that the content
of energy disclosures on the FTC labels is based on all DOE-required
testing provisions.\17\
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\16\ Unless otherwise specified in the Rule, the Commission does
not propose to require compliance with any DOE testing provisions
that are not required for DOE certification (e.g., certain lamp
measurements). This will ensure that FTC does not inadvertently
impose more specific testing burdens than DOE.
\17\ The proposed amendments also eliminate various references
to recommended IES test procedures of incandescent and compact
fluorescent lamps that are now covered by DOE testing requirements.
Comments should address whether any of these references should
remain in the Rule and, if so, why.
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The Commission seeks comments on these proposals, including the
length of time required to implement these changes, the need for the
changes, and the costs and benefits of the proposals.
B. Adhesive Labels for Clothes Washers, Dishwashers, and Refrigerators
To improve the availability of EnergyGuide labels for clothes
washers, dishwashers, and refrigerators, the Commission proposes to
prohibit hang tags on these products and, instead,
[[Page 15300]]
require adhesive labels.\18\ Under the current Rule, these products
must display EnergyGuide labels in a location visible to consumers
either in the form of a hang tag attached inside the product or an
adhesive labels affixed outside or inside the product. The proposal to
eliminate hang tags and require adhesive labels is designed to decrease
the number of missing labels in showrooms because hang tags appear to
detach easily.\19\
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\18\ The Commission's recent television labeling rule prohibits
hang tags on televisions for the same reasons given here. See 76 FR
1038.
\19\ The current Rule defines a hang tag for clothes washers,
dishwashers, and refrigerators as a label ``affixed to the product *
* * using string or similar material.'' 16 CFR 305.11(d)(2). Because
the Rule does not allow hang tags on product exteriors,
manufacturers cannot use hang tags on water heaters and other
products that do not have an interior visible to consumers.
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Evidence gathered by the FTC and the Government Accountability
Office (GAO) demonstrates that many showroom products do not have
EnergyGuide labels attached. Specifically, GAO visits to 30 stores in
2007 found that 26 percent of products examined had no EnergyGuide
label and another 24 percent had labels that were ``no longer affixed
in a prominent and easily accessible location.'' \20\ Following the GAO
report, FTC staff conducted its own examination of more than 8,500
appliances in 89 retail locations.\21\ The FTC found labels either
detached or missing altogether on approximately 38 percent of
appliances examined.\22\
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\20\ United States GAO, Energy Efficiency--Opportunities Exist
for Federal Agencies to Better Inform Household Consumers, GAO-07-
1162, Sept. 2007, at 6.
\21\ The staff visited stores in nine metropolitan areas across
the country in 2008. The results are not necessarily nationally
representative.
\22\ The staff examined clothes washers, dishwashers,
refrigerator products (freezers, refrigerators, and refrigerator-
freezers), room air conditioners, and water heaters. The examination
did not find specific models or brands consistently missing labels.
Accordingly, the visits provided no clear evidence that specific
manufacturers are routinely failing to label their products.
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Comments received in the television rulemaking indicated that hang
tags often become twisted or dislodged in stores.\23\ In addition, FTC
staff found that products frequently labeled with hang tags (i.e.,
clothes washers, dishwashers, and refrigerator-freezers) are more
likely to have detached or missing labels compared to water heaters,
which are generally labeled with adhesive labels.\24\ The Commission,
therefore, is concerned that hang tags may be more prone to detachment
than adhesive labels and offer a less secure means to affix labels.
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\23\ 76 FR at 1044.
\24\ The store visit data indicate that dishwashers, clothes
washers, and refrigerator-freezers frequently bear hang tags because
the many of these products had hang tags either attached to the
product or lying detached on or in the product (64% for dishwashers,
49% for clothes washers, and 76% for refrigerator-freezers.) By
contrast, the results indicate water heaters predominately bear
adhesive labels (82% had adhesive labels attached, and there were no
detached hang tags found near or on the unlabeled units). Moreover,
the products that frequently bear hang tags had a high rate of
missing and/or detached labels (31% missing and 25% detached for
clothes washers; 26% missing and 24% detached for dishwashers; 12%
missing labels and 11% detached for refrigerators, freezers, and
refrigerator-freezers.) By contrast, only 14% of water heaters were
missing labels (and none had detached labels).
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Accordingly, the Commission seeks comment on whether requiring
adhesive labels (and prohibiting hang tags) for clothes washers,
dishwashers, and refrigerators would improve label availability in
showrooms.\25\ If a comment indicates such a change would improve the
label's effectiveness, please explain why. If not, please explain why
not. Comments should identify the time required by industry members to
switch to adhesive labels without undue burden, whether there are
alternative approaches to reduce the burden of such changes, and
whether the proposal accomplishes the Commission's goal of providing
disclosures to consumers. Also, because dishwashers and clothes washers
may have limited interior surface area for adhesive labels, the
Commission asks whether the EnergyGuide label for these products should
be smaller. Should the Commission adopt a smaller label size, comments
should also address whether the text size, graphics, and wording for
the current label should, if possible, remain the same as the current
label. The Commission developed the current content and format of the
label after conducting extensive consumer research, and therefore, is
concerned that content changes to accommodate a smaller label would
reduce the label's effectiveness for consumers.\26\ Comments should
address whether a smaller label would decrease the label's utility in
helping consumers make purchasing decisions and, if so, how.
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\25\ The proposed rule language specifies that manufacturers
must attach adhesive labels to the product before distribution in
commerce. Manufacturers should not place the labels separately in
literature bags or otherwise leave labels unattached when shipping
units.
\26\ 72 FR 49948 (Aug. 27, 2007).
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C. Room Air Conditioners
The Commission proposes requiring manufacturers to print or affix
EnergyGuide labels on room air conditioner boxes instead of adhering
them to the units themselves. Under the current Rule, manufacturers
must place an adhesive EnergyGuide label on the exterior of room air
conditioners. However, FTC staff has observed that retailers often
display these products in boxes stacked on shelves or the showroom
floor. Therefore, consumers cannot examine the label before purchase.
The proposed box label would address this concern.\27\ The Commission
proposes to provide manufacturers with at least two years to implement
this change to minimize the burdens associated with package changes.
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\27\ The Commission has followed this approach with ceiling fan
labels, which must appear on the principal display panel of
packages. See 16 CFR 305.13.
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The Commission seeks comments on this proposal. In particular,
comments should address whether retailers typically display room air
conditioners in or out of the box, and whether the proposal would
accomplish the Commission's goal of consistently providing energy
disclosures to consumers. Comments should provide detailed information
about the costs of the proposed change, including whether two years is
sufficient lead time to come into compliance with a package label
requirement without undue burden, or whether the changes can be made
more quickly. Finally, comments should address whether the Commission
should require labels on boxes for any other covered products (e.g.,
water heaters or pool heaters) in lieu of the existing labels affixed
directly to those products.
D. Web site and Paper Catalog Disclosures
The Commission proposes several amendments to enhance the energy
information available to consumers in ``catalogs'' (i.e., print
catalogs and Web sites selling covered products).\28\ First, the
amendments would require retail Web sites to post the full EnergyGuide
or Lighting Facts label online.\29\ The Rule would require these Web
sites to post the full label or to use an FTC-provided icon to link
consumers to the full version of the EnergyGuide or Lighting Facts
label. Second, to ensure that retail Web sites have access to the
label, the amendments would require that manufacturers make the
EnergyGuide and Lighting Facts labels
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easily available online. Third, the proposed amendments provide
specifications that retail Web sites must follow for the format and
placement of the required information (e.g., label or icon). Finally,
for paper catalogs, the proposed amendments would continue to allow
retailers to use an abbreviated text disclosure in lieu of the full
label, due to space and cost constraints.
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\28\ These proposed amendments preserve the current Rule's
definition of ``catalog'' to encompass both print and online
formats. The current rule defines ``catalog'' as ``printed material,
including material disseminated over the Internet, which contains
the terms of sale, retail price, and instructions for ordering, from
which a retail consumer can order a covered product.'' 16 CFR
305.2(h).
\29\ This proposal is consistent with current requirements for
television labels. See 76 FR 1038.
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Under the proposed amendments, Web sites selling EnergyGuide- or
Lighting Facts-labeled products would be required to display the full
label (either on the product page or through a link). The current Rule
does not require Web sites (or paper catalogs) to include the full
label, and instead allows an abbreviated, text-only disclosure. The
Commission allowed these abbreviated disclosures due to space
constraints and the costs of printing the full label would impose on
marketers.\30\ However, in reaching this decision, the Commission did
not examine the differences between Web sites and paper catalogs and
their relative capacities to display information. Subsequently, during
the television labeling rulemaking, the Commission determined that
while paper catalogs continue to have space constraints and associated
costs justifying the abbreviated disclosures, this rationale does not
apply to Web sites. Accordingly, the Commission required Web sites
selling televisions to include the full label or a special icon linking
to the label.\31\ For the same reasons, the Commission now proposes to
require Web sites to include the full label for all EnergyGuide and
Lighting Facts-labeled products they sell.
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\30\ 72 FR 49948, 49961 (Aug. 29, 2007).
\31\ Id.
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Under the proposal, Web sites either could place the full label on
the product's detailed description page, or, to minimize design impact
on their sites, they could use a small EnergyGuide or Lighting Facts
logo icon provided by FTC to link to the full label. The proposed rule
allows Web sites to scale the icon (as well as the label) appropriately
to accommodate their layout as long they remain readable and
recognizable. The new icon would apply to all products subject to the
EnergyGuide or Lighting Facts requirements, including televisions.
Recently, a group of petitioners raised concerns that consumers may
view the icon as an endorsement or general claim about a product's
environmental quality, rather than as an energy cost disclosure.\32\
The petitioners also noted that some Web sites already voluntarily
display an EnergyGuide icon, but create confusion by adding text (e.g.,
``EnergyGuide rated'') which might imply to consumers that the icon
constitutes an endorsement or a general environmental claim.\33\ In
light of these concerns, the Commission proposes an icon which
integrates the text ``Click for this product's energy information''
into the icon design. This additional text is designed to help
consumers understand that the icon is a link to label information, and
not a product endorsement or environmental claim.\34\ The Commission
seeks comment on this proposal.
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\32\ Petition of American Council for an Energy Efficient
Economy, Consumers Union, and Public Citizen, 10 (July 22, 2011),
available at http://earthjustice.org/sites/default/files/Petition-to-amend-catalog-rule.pdf.
\33\ Id.
\34\ When using the FTC icon for televisions under current
requirements, sellers should not include language that might imply
the icon constitutes an endorsement or an environmental claim. For
example, adding the words ``EnergyGuide Rated'' near the icon could
suggest that the icon represents a product endorsement or a
``green'' claim about the product, rather than a neutral disclosure
of energy costs. Such language may be deceptive under section 5 of
the FTC Act, 15 U.S.C. 45. If the Commission finalizes the proposed
catalog amendments, marketers will have to follow the same approach
for other products.
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The petitioners also argued that in light of potential confusion,
the Commission should not allow an icon at all, and should instead
require the full label on the main product pages. The Commission seeks
comment on whether requiring the full label, instead of a link to the
label, is necessary. In particular, commenters should consider whether
such a requirement would unduly impede Web site design and whether the
use of the icon with the explanatory text, as proposed in this notice,
would address the concern raised by the petitioners.
Second, to facilitate retailer compliance with the Rule, the
proposed amendments require that manufacturers make images of their
labels available on a Web site for linking and downloading by both
paper catalogs and Web sites. Under the proposal, the labels must
remain available online for two years after the manufacturer ceases to
make the model. This proposed requirement is based on EPCA's mandate
that manufacturers ``provide'' a label and is consistent with the
recent television label rules.\35\
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\35\ 42 U.S.C. 6296(a); 76 FR 1038. Catalog sellers (both paper
and Web sites) may create their own versions of the labels rather
than using the images provided by the manufacturers, as long as the
labels conform to all the specifications in the amended Rule.
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Third, the proposed amendments provide specifications about the
format and placement of the required information on Web sites. In the
recent television labeling proceeding, the Natural Resources Defense
Council (NRDC) raised concerns that consumers must navigate several
layers of information to obtain EnergyGuide information on some Web
sites.\36\ NRDC argued consumers should not have to scroll down or
switch to another tab or page to see the icon.\37\ To address these
concerns, the Commission proposes to require that the label or icon be
displayed ``clearly and conspicuously and in close proximity to the
covered product's price.'' This proposal, which is consistent with the
new television label requirements, should help ensure that consumers
can easily view the label or icon while shopping online without
excessive scrolling or clicking, and still providing flexibility to Web
site designers. To minimize burden, the label or icon would only need
to appear on ``each Web page that contains a detailed description of
the covered product and its price,'' rather than alongside every image
of a covered product on the site. This would reduce the burden for Web
sites that include abbreviated summary pages listing several different
models with links to a more detailed individual product page.\38\
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\36\ See NRDC comments, Aug. 10, 2010, 547194-00011.
(http://www.ftc.gov/os/comments/tvenergylabelsnprm/547194-00011.pdf).
\37\ 76 FR at 1046.
\38\ Similarly, the proposed amendments would require that Web
site disclosures for required non-label markings or text (e.g.,
gallons per minute for showerheads and faucets) must be displayed
clearly and conspicuously and in close proximity to the product's
price on the Web page. The amendments would not impose any design or
font size requirements for these disclosures, other than that they
be clear and conspicuous.
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Finally, for paper catalogs, the amendments would continue to allow
an abbreviated text disclosure in lieu of the full label. Due to the
space and cost constraints involved with paper catalogs, inclusion of
the entire label may be impractical.\39\
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\39\ The proposed amendments also state that if paper catalogs
display more than one covered product model on a page, the seller
may disclose the utility rates or usage assumptions underlying the
energy information (i.e., 10.65 cents per kWh, 8 cycles per week,
etc.) only once per page for each type of product (e.g., a single
footnote for all refrigerators advertised on the page) rather than
repeating the information for each advertised model. The disclosure
must be clear and conspicuous.
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The Commission seeks comment on these proposals. In particular,
comments should address whether the Rule should require paper catalogs
to place these required disclosures in close proximity to the product's
price, as the proposed amendments would require for Web sites. The
Commission also seeks
[[Page 15302]]
information on whether the various formats and space limitations
associated with paper catalogs would render such a requirement
impractical in many cases.
In addition, commenters should address: how the Commission's
proposal would impact Web site usability and whether it would allow
consumers to easily find EnergyGuide and Lighting Facts information
online; whether the proposed amendments provide adequate guidance to
Web site designers; the time necessary for catalog sellers and
manufacturers to conform to these proposed requirements; and the costs
and benefits of the proposal for businesses and consumers.
E. Ceiling Fan Labels
The Commission proposes to enhance the existing ceiling fan label
by requiring estimated annual energy cost information as the primary
disclosure on ceiling fan labels. The current label, which appears on
product boxes, provides information on airflow (cubic feet per minute),
energy use in watts, and energy efficiency (cubic feet per minute per
watt). Consistent with most other EnergyGuide labels, the Commission
proposes to change this current label to focus on energy cost
information while presenting existing label information in a less
prominent manner. As the Commission has indicated in the past, consumer
research suggests energy cost ``provides a clear, understandable tool
to allow consumers to compare the energy performance of different
models.'' \40\ As with the EnergyGuide label for appliances, the new
ceiling fan label would state that ``Your cost will depend on your
utility rates and use.'' The proposed yellow label features the
familiar ``EnergyGuide'' title used for appliances and televisions. The
proposed usage and rate assumptions for this energy cost are six hours
use per day (at high speed) and eleven cents per kWh/hour.\41\ To
minimize the burden caused by this change, the Rule would provide
manufacturers two years to change their packaging.
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\40\ 72 FR 49948, 49959 (Aug. 29, 2007) (appliance labels); see
also 75 FR 41696 (July 19, 2010) (light bulb labels); 76 FR 1038
(Jan. 6, 2011) (television labels).
\41\ The six hour duty cycle estimate is consistent with earlier
research on ceiling fans. See Davis Energy Group (Prepared for
Pacific Gas & Electric), Analysis of Standards Options For Ceiling
Fans, May 2004 (http://www.energy.ca.gov/appliances/2003rulemaking/documents/case_studies/CASE_Ceiling_Fan.pdf). The 11 cent
electricity cost figure, which is based on DOE information, also
appears on recently amended light bulb labels and television labels.
See 75 FR 41696 and 75 FR 12470.
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The Commission seeks comment on this proposal, including whether
six hours per day is an appropriate usage assumption for determining
estimated annual energy cost. Additionally, in recent consumer research
on light bulb labels, efficiency ratings performed poorly in helping
study participants choose efficient products.\42\ Comments should
address whether ceiling fan labels raise similar issues and, if so,
whether efficiency ratings should continue to appear on the labels.
Finally, comments should address whether two years is sufficient lead
time for manufacturers to come into compliance with a requirement to
label packages without undue burden, or whether the changes can be made
in less, or more, time.
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\42\ See 75 FR 41696, 41703-4 (July 19, 2010).
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F. Clothes Washer Capacity
The Commission proposes to require EnergyGuide labels for clothes
washers to disclose specific capacity information (i.e., cubic feet).
Current EnergyGuide labels indicate whether the model is a ``standard''
or ``compact'' but do not provide a specific volume (e.g., 3.5 cubic
feet). The vast majority of models are ``standard'' size, but capacity
among standard models varies significantly. Therefore, the general
capacity disclosure provides little assistance to consumers. A specific
capacity disclosure should help consumers make important product
comparisons. It would also complement recent DOE and industry efforts
to ensure consistency in clothes washer capacity disclosures which
would provide consumers with consistent information whether they are
looking at FTC labels, manufacturer advertising, or DOE certification
data.\43\ Under the proposed amendment, manufacturers would continue to
measure capacity using DOE procedures. The Commission seeks comments on
this proposal, including the time needed to make the proposed changes.
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\43\ See 75 FR 57556, 57575 (Sep. 21, 2010) and http://www.aham.org/ht/a/GetDocumentAction/i/51727.
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G. QR Codes on EnergyGuide Labels
The Commission also seeks comments on whether to require
manufacturers to place QR (``Quick Response'') codes on the EnergyGuide
labels. QR codes are two dimensional black and white matrix barcodes
that provide access to a Web site by scanning the code with a mobile
phone equipped with scanning software. If implemented, consumers could
connect instantly to government Web sites or other sources providing
detailed product information, such as the broad energy impacts and
greenhouse gas emissions associated with a product's use.\44\
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\44\ Recently, DOE announced plans to work collaboratively with
the FTC to provide consumers with information about the broad energy
use impacts and greenhouse gas emissions of covered products. As
part of this announcement, DOE described plans to consider ``full-
fuel-cycle'' (``FFC'') measures for emissions and energy in
developing energy efficiency standards. Such measures would include,
for example, the energy consumed in extracting and transporting
primary fuels involved in powering home appliances. Currently, DOE
only considers ``site'' energy measures (e.g., the electricity
consumers use to run their appliances). 76 FR 51281 (Aug. 18, 2011).
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The Commission seeks comment on whether it should pursue such
provisions.\45\ In particular, comments should address whether the
codes would be helpful to consumers in purchasing or using products,
and whether they should link to any particular information about
covered products. Comments should also address whether these codes
raise particular technical challenges or pose any significant burdens
for manufacturers. Finally, comments should address the time needed to
make any proposed changes.
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\45\ This Notice does not contain specific rule language for
this proposal.
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H. Definitions of Refrigerator and Refrigerator Freezers
On December 16, 2010,\46\ DOE, as part of amendments to
refrigerator test procedures, issued revised definitions for the terms
``electric refrigerator'' and ``electric refrigerator-freezer.'' The
Commission proposes to conform its own definitions for these terms to
ensure consistency between FTC and DOE requirements.
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\46\ 75 FR 78810.
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I. Clarification of Prohibited Acts Provision
The proposed rule would clarify penalty assessments for several
non-labeling violations listed in Sec. 305.4(b). These violations
include the refusal to allow access to records, refusal to submit
required data reports, refusal to permit FTC officials to observe
testing, refusal to supply units for testing, and failure to disclose
required energy information in catalogs (i.e., Web sites and paper
catalogs).\47\ The current Rule does not specify the method (e.g., per
day) for assessing penalties for these non-labeling violations.\48\
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\47\ See 16 CFR 305.4(b); see also 42 U.S.C. 6296(b)(2)&(4) and
6303(a)(3) (data reports and records access), 6296(b)(5) (testing
access), 6296(b)(3) (units for testing), and 6296(a) (catalog
sales).
\48\ In contrast, the current Rule does provide the basis for
labeling violations. Specifically, consistent with EPCA (42 U.S.C.
6303(a)), Sec. 305.4(a) states that labeling violations are
assessed on a per unit basis.
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[[Page 15303]]
The proposed amendments would clarify that these violations are
subject to civil penalties calculated on a per model per day basis.\49\
For example, a manufacturer's refusal to submit required reports
accrues a fine of up to $110 per day for each model subject to the
reporting requirements. In addition, a Web site seller's failure to
post required label information accrues a fine of up to $110 per day
for each model on the Web site lacking the disclosure.
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\49\ The per day per model basis is consistent with EPCA's
enforcement provisions. See 42 U.S.C. 6302, 6303 and 16 CFR
305.4(a). It is also consistent with recent DOE enforcement guidance
for the same and similar provisions. See, e.g., DOE ``Guidance on
the Imposition of Civil Penalties for Violations of EPCA
Conservation Standards and Certification Obligations,'' http://www.doe.gov/sites/prod/files/gcprod/documents/Penalty_Guidance_5_7_2010__final_%282%29.pdf.
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J. Amended Rule Title
Finally, the Commission proposes to shorten the Rule's title. When
originally promulgated in 1979, the Rule applied only to appliances.
Subsequently, the Rule expanded well beyond those products to include
lighting, plumbing, and consumer electronics. Accordingly, the
Commission proposes to change the Rule's title from ``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')'' to ``Part
305--Energy And Water Use Labeling For Consumer Products Under The
Energy Policy and Conservation Act (`Energy Labeling Rule')''.
III. Section by Section Description of Proposed Changes
Rule Title: The proposed amendments would shorten the Rule's title.
Description of Covered Products (305.3): The proposed amendments
would amend the definitions for refrigerator products to ensure
consistency with DOE requirements.
Prohibited Acts (305.4): The proposed amendments would clarify that
civil penalties assessed per day under Sec. 305.4(b) accrue on a per
model basis.
Test Procedures (305.5): The proposed amendments would harmonize
FTC test procedure requirements with DOE rules.
Manufacturer Duty to Provide Labels (305.6): The proposed revisions
would require manufacturers to make copies of the EnergyGuide and
Lighting Facts labels available to the public on a Web site at no
charge.
Clothes Washer Volume (305.7): The proposed amendments would
require EnergyGuide labels to disclose clothes washer capacity in cubic
feet.
Submission of Data (305.8): The proposed amendments would require
manufacturers to make a copy of the EnergyGuide label publicly
available. They also would allow manufacturers to submit data required
by Sec. 305.8 to the DOE in lieu of submitting it to the Commission.
Appliance Label Placement (305.11): The proposed amendments would
require adhesive EnergyGuide labels for all appliances with the
exception of room air conditioners. The amendments also would require a
QR code on the label. Finally, the amendments would require room air
conditioner manufacturers to print or affix the label on the product
package.
Heating and Cooling Equipment (305.12): The proposed amendments
would allow the ENERGY STAR logo on heating and cooling equipment to be
wider than one inch. This minor, non-substantive change accommodates
new, wider ENERGY STAR logos developed by the Environmental Protection
Agency for these products.
Ceiling Fan Label Content (305.13): The proposed amendments would
require Ceiling Fan labels to display an estimated annual energy cost
based on six hours of use per day and eleven cents per kWh.
Television Labels (305.17): The proposed amendments would clarify
the television labeling provisions by indicating that manufacturers of
televisions with screen sizes of nine inches or fewer (measured
diagonally) may print or affix the EnergyGuide label on the product
package.\50\
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\50\ 76 FR at 1044. The Federal Register notice accompanying the
television labeling amendments to the Rule stated that televisions
smaller than 9'' may be labeled on the box rather than on the
screen. However, the final rule language did not reflect this.
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Catalog Requirements (305.20): The proposed amendments would
require Web site sellers to post images of EnergyGuide and Lighting
Facts labels online for the products they sell. They also revise
disclosure requirements for paper and Web site catalogs.
IV. Regulatory Review
The Commission conducts scheduled reviews of its rules and guides
in an effort to seek information about their costs and benefits as well
as their regulatory and economic impact.\51\ In addition to the
specific issues discussed above, the Commission solicits general
comments on, among other things, the economic impact of, and the
continuing need for, the Rule; possible conflicts between the Rule and
state, local, or other federal laws; and the effect on the Rule of any
technological, economic, or other industry changes. If comments
identify additional amendments that would improve the existing Rule,
the Commission will consider issuing a supplemental notice seeking
comments on such changes.
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\51\ In comments responding to the Commission's recently
published Ten-Year Regulatory Review Schedule (76 FR 41150 (July 13,
2011)), the Association of Home Appliance Manufacturers (AAHAM@) and
Whirlpool Corporation (``Whirlpool''), urged the Commission to
reconsider its earlier decision to accelerate review of the
Appliance Labeling Rule. The two comments are available at http://www.ftc.gov/os/comments/regulatoryreviewschedule/index.shtm. AHAM
asserted, and Whirlpool concurred, that the Commission should avoid
frequent rule revisions unless existing requirements are outdated,
overly burdensome, or deficient. However, the Rule warrants a
comprehensive review at this time to allow the Commission to
consider burden reductions associated with existing reporting
requirements, explore ways to reduce the number of labels missing in
showrooms, improve access to label information on retail Web sites,
and consider whether additional consumer products should have energy
labels. Therefore, the Commission has proceeded with the Rule's
scheduled review. AHAM's comments also recommended that the
Commission reduce duplicative FTC and DOE reporting requirements.
The amendments proposed in the present Notice address these
concerns. Finally, AHAM urged a reduction in the amount of
information collected in DOE's certification reports. The FTC will
provide AHAM's comments to DOE.
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The Commission is interested in receiving data, surveys and other
empirical evidence to support comments submitted in response to this
notice. As part of the regulatory review, the Commission is
particularly interested in receiving comments and supporting data in
response to the following questions:
(1) Is there a continuing need for the Rule as currently
promulgated? Why or why not?
(2) What benefits has the Rule provided to, or what significant
costs has the Rule imposed on, consumers? Provide any evidence
supporting your position.
(3) What modifications, if any, should the Commission make to the
Rule to increase its benefits or reduce its costs to consumers?
(a) Provide any evidence supporting your proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses, particularly small businesses?
(4) What impact has the Rule had on the flow of truthful
information to consumers and on the flow of deceptive information to
consumers? Provide any evidence supporting your position.
(5) What benefits, if any, has the Rule provided to, or what
significant costs,
[[Page 15304]]
including costs of compliance, has the Rule imposed on businesses,
particularly small businesses? Provide any evidence supporting your
position.
(6) What modifications, if any, should be made to the Rule to
increase its benefits or reduce its costs to businesses, particularly
small businesses?
(a) Provide any evidence supporting your proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses, particularly small businesses?
(7) Provide any evidence concerning the degree of industry
compliance with the Rule. Does this evidence indicate that the Rule
should be modified? If so, why, and how? If not, why not?
(8) Provide any evidence concerning whether any of the Rule's
provisions are no longer necessary. Explain why these provisions are
unnecessary.
(9) What modifications, if any, should be made to the Rule to
account for current or impending changes in technology or economic
conditions?
(a) Provide any evidence supporting the proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rule for consumers and businesses, particularly small businesses?
(10) Does the Rule overlap or conflict with other federal, state,
or local laws or regulations? If so, how?
(a) Provide any evidence supporting your position.
(b) With reference to the asserted conflicts, should the Rule be
modified? If so, why, and how? If not, why not?
(c) Provide any evidence concerning whether the Rule has assisted
in promoting national consistency with respect to energy labeling.
(11) Are there foreign or international laws, regulations, or
standards with respect to energy labeling that the Commission should
consider as it reviews the Rule? If so, what are they?
(a) Should the Rule be modified in order to harmonize with these
international laws, regulations, or standards? If so, why, and how? If
not, why not?
(b) How would such harmonization affect the costs and benefits of
the Rule for consumers and businesses, particularly small businesses?
(c) Provide any evidence supporting your position.
(12) Are there any consumer products, not currently under review,
that the Commission should consider for energy labeling?
(13) Is there any information not submitted in earlier proceedings
that the Commission should consider about possible consumer electronics
labeling? \52\
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\52\ 76 FR 1038 (Jan. 6, 2011) (Federal Register Notice on
consumer electronics labeling).
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(a) Are there any new developments in test procedures for consumer
electronics relevant to possible labeling requirements?
(b) Are there new consumer electronics products on the market that
the Commission should consider for consumer energy labeling?
(c) Is there new information consumer electronics marketing or
buying patterns that would aid the Commission in considering new
labeling requirements?
(14) Is our business compliance guidance and consumer education
about the Rules useful? Can they be improved? If so, how? Should the
Commission print copies of these materials, or is a pdf at
www.business.ftc.gov sufficient for business and consumer needs?
VI. Request for Comment
The Commission invites interested persons to submit written
comments on any issue of fact, law, or policy that may bear upon the
FTC's proposed labeling requirements. Please provide explanations for
your answers and supporting evidence where appropriate. After examining
the comments, the Commission will determine whether to issue final
amendments.
All comments should be filed as prescribed below, and must be
received by May 16, 2012. Interested parties are invited to submit
written comments electronically or in paper form. Comments should refer
to ``Appliance Labeling Amendments, Matter No. R611004'' to facilitate
the organization of comments. Please note that your comment B including
your name and your state B will be placed on the public record of this
proceeding, including on the publicly accessible FTC Web site, at
http://www.ftc.gov/os/publiccomments.shtm.
Because comments will be made public, they should not include any
sensitive personal information, such as any individual's Social
Security Number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. Comments also
should not include any sensitive health information, such as medical
records or other individually identifiable health information. In
addition, comments should not include ``[t]rade secret or any
commercial or financial information which is obtained from any person
and which is privileged or confidential'' as provided in Section 6(f)
of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for
which confidential treatment is requested must be filed in paper form,
must be clearly labeled ``Confidential,'' and must comply with FTC Rule
4.9(c).\53\
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\53\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR
4.9.(c).
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Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted using the following weblink: https://ftcpublic.commentworks.com/ftc/energylabelingamendmentsnprm (and
following the instructions on the web-based form). To ensure that the
Commission considers an electronic comment, you must file it on the
web-based form at the weblink https://ftcpublic.commentworks.com/ftc/energylabelingamendmentsnprm. If this Notice appears at http://www.regulations.gov/#!home, you may also file an electronic comment
through that Web site. The Commission will consider all comments that
regulations.gov forwards to it. You may also visit the FTC Web site at
http://www.ftc.gov to read the Notice and the news release describing
it.
A comment filed in paper form should include the ``Appliance
Labeling Amendments, Matter No. R611004'' reference both in the text
and on the envelope, and should be mailed or delivered to the following
address: Federal Trade Commission, Office of the Secretary, Room H-135
(Annex A), 600 Pennsylvania Avenue, NW., Washington, DC 20580. The FTC
is requesting that any comment filed in paper form be sent by courier
or overnight service, if possible, because U.S. postal mail in the
Washington area and at the Commission is subject to delay due to
heightened security precautions.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives,
[[Page 15305]]
whether filed in paper or electronic form. Comments received will be
available to the public on the FTC Web site, to the extent practicable,
at http://www.ftc.gov/os/publiccomments.shtm. As a matter of
discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC Web site. More information, including
routine uses permitted by the Privacy Act, may be found in the FTC's
privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
Because written comments appear adequate to present the views of
all interested parties, the Commission has not scheduled an oral
hearing regarding these proposed amendments. Interested parties may
request an opportunity to present views orally. If such a request is
made, the Commission will publish a document in the Federal Register
stating the time and place for such oral presentation(s) and describing
the procedures that will be followed. Interested parties who wish to
present oral views must submit a hearing request, on or before March
20, 2012, in the form of a written comment that describes the issues on
which the party wishes to speak. If there is no oral hearing, the
Commission will base its decision on the written rulemaking record.
VII. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute ``information collection
requirements'' as defined by 5 CFR 1320.3(c), the regulation that
implements the Paperwork Reduction Act (PRA).\54\ OMB has approved the
Rule's existing information collection requirements through Jan. 31,
2014 (OMB Control No. 3084-0069). As described below, the proposed
amendments modify (to a minor degree) the current Rule's existing
labeling and reporting requirements.\55\ Accordingly, the Commission is
submitting this proposed Rule and an associated PRA Supporting
Statement to OMB for review.
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\54\ 44 U.S.C. 3501-3521.
\55\ For reporting requirements, the amendments allow
manufacturers to submit data to the DOE in lieu of the FTC. This
will not affect the PRA burden because the Rule, as directed by the
EPCA, will continue to require reporting to the FTC, even if
manufacturers may fulfill that requirement by reporting to the DOE.
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Manufacturer EnergyGuide Images Online: The proposed Rule requires
manufacturers to post images of their EnergyGuide and Lighting Facts
labels on their Web sites. Given approximately 15,000 total models \56\
at an estimated five minutes per model,\57\ this requirement will
entail a burden of 1,250 hours.\58\ Assuming that the additional
disclosure requirement will be implemented by graphic designers at a
mean hourly wage of $23.42 per hour,\59\ the associated labor cost
would approximate $29,300 per year.
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\56\ This is an FTC staff estimate based on data submitted by
manufacturers to the FTC pursuant to the current Rule.
\57\ This estimate is based on FTC staff's general knowledge of
manufacturing practices.
\58\ Unlike retail Web sites that already have established Web
pages for the products they offer, some manufacturers may have to
create new Web pages for posting these requirements. Accordingly,
the burden estimate for manufacturers is higher (five minutes per
model) than that for catalog sellers (one minute per model).
\59\ See U.S. Department of Labor, National Compensation Survey:
Occupational Earnings in the United States 2010 (May 2011), Bulletin
2753, Table 3 at 3-13 (``Full-time civilian workers,'' mean and
median hourly wages), available at http://www.bls.gov/ncs/ncswage2010.htm.
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Adhesive EnergyGuide Labels: The proposed amendments would require
manufacturers of products with the EnergyGuide label to change
information on the label and, in some cases, convert their labels from
hang tags to adhesive labels. Under the current Rule, manufacturers
routinely change labels to reflect new range and cost data, which is
already accounted for by previous burden analyses for the Rule. Thus,
such a change should not impose any additional burden.
Ceiling Fan, Clothes Washer, and Room Air Conditioner Labels:
Changes to ceiling fan, clothes washer, and room air conditioner labels
should impose no additional burden. Because the amendments will provide
manufacturers with ample time to make such changes, manufacturers
should be able to incorporate these changes into their normal schedules
for package and label printing.
Catalog Disclosures: The Commission's past estimate of the Rule's
burden on catalog sellers (including Internet sellers) has assumed
conservatively that catalog sellers must enter their data for each
product into the catalog each year (see, e.g., 71 FR 78057, 78062 (Dec.
28, 2006)).\60\ The proposed amendments do not alter that assumption as
they would require just a one-time change of all products in affected
catalogs. This one-time adjustment is consistent with, and accounted
for by this prior assumption and the associated burden estimates for
catalog sellers. Accordingly, the Commission believes no modification
to existing burden estimates for catalog sellers is necessary.
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\60\ This assumption is conservative because the number of
incremental additions to the catalog and their frequency is likely
to be much lower after initial start-up efforts have been completed.
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Estimated annual non-labor cost burden: Any capital costs
associated with the amendments are likely to be minimal.
The Commission invites comments that will enable it to: (1)
Evaluate whether the proposed collections of information are necessary
for the proper performance of the functions of the Commission,
including whether the information will have practical utility; (2)
evaluate the accuracy of the Commission's estimate of the burden of the
proposed collections of information, including the validity of the
methodology and assumptions used; (3) enhance the quality, utility, and
clarity of the information to be collected; and (4) minimize the burden
of the collections of information on those who must comply, including
through the use of appropriate automated, electronic, mechanical, or
other technological techniques or other forms of information
technology.
Comments on any proposed recordkeeping, disclosure, testing, or
reporting requirements that are subject to OMB review under the PRA
should additionally be submitted to: Office of Information and
Regulatory Affairs, Office of Management and Budget, Attention: Desk
Officer for Federal Trade Commission. Comments should be submitted via
facsimile to (202) 395B5167 because U.S. postal mail at the OMB is
subject to lengthy delays due to heightened security precautions.
VIII. Regulatory Flexibility Act
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612,
requires that the Commission provide an Initial Regulatory Flexibility
Analysis (``IRFA'') with a proposed Rule and a Final Regulatory
Flexibility Analysis (``FRFA''), with the 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. See 5 U.S.C.
603-605.
The Commission does not anticipate that the proposed Rule will have
a significant economic impact on a substantial number of small
entities. The Commission recognizes that some of the affected
manufacturers may qualify as small businesses under the relevant
thresholds. However, the Commission does not expect that the
requirements specified in the proposed Rule will have a significant
impact on these entities because, as discussed in the previous section,
the proposed amendments involve formatting changes to labels and Web
site changes that
[[Page 15306]]
should not have a significant impact on affected entities, including
small businesses.
Accordingly, this document serves as notice to the Small Business
Administration of the FTC's certification of no effect. To ensure the
accuracy of this certification, however, the Commission requests
comment on whether the proposed Rule will have a significant impact on
a substantial number of small entities, including specific information
on the number of entities that would be covered by the proposed Rule,
the number of these companies that are ``small entities,'' and the
average annual burden for each entity. Although the Commission
certifies under the RFA that the Rule proposed in this notice would
not, if promulgated, have a significant impact on a substantial number
of small entities, the Commission has determined, nonetheless, that it
is appropriate to publish an IRFA in order to inquire into the impact
of the proposed Rule on small entities. Therefore, the Commission has
prepared the following analysis:
A. Description of the Reasons That Action by the Agency Is Being Taken
The Commission has initiated this rulemaking to reduce the Rule's
reporting burdens, increase the availability of energy labels to
consumers while minimizing burdens on industry, and generally improve
existing requirements.
B. Statement of the Objectives of, and Legal Basis for, the Proposed
Rule
The objective of the proposed Rule is to improve the effectiveness
of the current energy labeling program which will assist consumers in
their purchasing decisions while minimizing industry burden. The legal
basis for this Rule is the EPCA (42 U.S.C. 6291 et seq.).
C. Small Entities to Which the Proposed Rule Will Apply
Under the Small Business Size Standards issued by the Small
Business Administration, the standards for various affected entities
are as follows: refrigerator manufacturers--up to 1,000 employees;
other appliance manufacturers--up to 500 employees; appliances stores--
up to $10 million in annual receipts; television stores--up to $25.5
million in annual receipts, and light bulb manufacturers--up to 1,000
employees. The Commission estimates that fewer than 600 entities
subject to the proposed Rule's requirements qualify as small
businesses. The Commission seeks comment and information with regard to
the estimated number or nature of small business entities for which the
proposed Rule would have a significant economic impact.
D. Projected Reporting, Recordkeeping and Other Compliance Requirements
The Commission recognizes that the proposed labeling changes will
involve some burdens on affected entities. However, the amendments
should not have a significant impact on small entities. The proposed
amendments would require manufacturers of products with the EnergyGuide
label to change information on the label and, in some cases, convert
their labels from hang tags to adhesive labels. Changes to ceiling fan,
clothes washer, and room air conditioner labels should impose no
additional burden because the proposed amendments should give
manufacturers time to incorporate the changes into their normal label
production schedules at minimal cost. Because the amendments would
provide manufacturers with ample time to make such changes,
manufacturers should be able to incorporate these changes into their
normal schedules for package and label printing. Online sellers would
have to make changes to ensure their Web sites provide the full
EnergyGuide or Lighting Facts label. There should be no capital costs
associated with the amendments. The Commission invites comment and
information on these issues.
E. Duplicative, Overlapping, or Conflicting Federal Rules
The Commission has not identified any other federal statutes,
rules, or policies that would duplicate, overlap, or conflict with the
proposed Rule. In fact, the proposed amendments should reduce
duplication between FTC and DOE reporting requirements.
F. Significant Alternatives to the Proposed Rule
The Commission seeks comment and information on the need, if any,
for alternative compliance methods that, consistent with the statutory
requirements, would reduce the economic impact of the rule on such
small entities. As one alternative to reduce burden, the Commission
could delay the effective date of the amendments to provide additional
time for small business compliance. In addition, the Commission could
consider different compliance dates, reporting requirements, or
exemptions for small entities. Comments filed in response to this
notice should identify small entities that are affected by the Rule, as
well as alternative methods of compliance that would reduce the
economic impact of the Rule on small entities. The Commission will
consider the feasibility of such alternatives and determine whether
they should be incorporated into the final rule.
IX. Communications by Outside Parties to the Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding, from any
outside party to any Commissioner or Commissioner's advisor, will be
placed on the public record. See 16 CFR 1.26(b)(5).
X. Proposed Rule Language
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
For the reasons set out above, the Commission proposes the
following amendments to 16 CFR part 305:
PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')
1. The authority citation for part 305 continues to read as
follows:
Authority: 42 U.S.C. 6294.
2. In Sec. 305.3, revise paragraph (a)(1) and (2) to read as
follows:
Sec. 305.3 Description of covered products.
(a)(1) Electric refrigerator means a cabinet designed for the
refrigerated storage of food, designed to be capable of achieving
storage temperatures above 32 [deg]F (0 [deg]C) and below 39 [deg]F
(3.9 [deg]C), and having a source of refrigeration requiring single
phase, alternating current electric energy input only. An electric
refrigerator may include a compartment for the freezing and storage of
food at temperatures below 32 [deg]F (0 [deg]C), but does not provide a
separate low temperature compartment designed for the freezing and
storage of food at temperatures below 8 [deg]F (-13.3 [deg]C).
(2) Electric refrigerator-freezer means a cabinet which consists of
two or more compartments with at least one of the compartments designed
for the refrigerated storage of food and designed to be capable of
achieving storage temperatures above 32 [deg]F (0 [deg]C) and below 39
[deg]F (3.9 [deg]C), and with at least one of the compartments designed
for the freezing and storage of food at
[[Page 15307]]
temperatures below 8 [deg]F (-13.3 [deg]C) which may be adjusted by the
user to a temperature of 0 [deg]F (-17.8 [deg]C) or below. The source
of refrigeration requires single phase, alternating current electric
energy input only.
* * * * *
3. In Sec. 305.4, revise paragraph (b) to read as follows:
Sec. 305.4 Prohibited acts.
* * * * *
(b) Subject to enforcement penalties assessed per model per day of
violation pursuant to 42 U.S.C. 6303 and adjusted for inflation by
Sec. 1.98 of this chapter, it shall be unlawful for any manufacturer
or private labeler knowingly to:
* * * * *
4. Section 305.5 is revised to read as follows:
Sec. 305.5 Determinations of estimated annual energy consumption,
estimated annual operating cost, and energy efficiency rating, water
use rate, and other required disclosure content.
(a) Unless otherwise stated in paragraphs (b), (c), (d), or (e) of
this section, the content of any disclosures required by this part must
be determined in accordance with the procedures required by the
Department of Energy as set forth in 10 CFR part 430, including test
procedures in Sec. 430.23, sampling procedures in Sec. 430.24,
laboratory accreditation in Sec. 430.25 for information required to be
submitted to the Department, and testing procedure waivers granted
pursuant to Sec. 430.27.
(b) For any representations required by this part but not subject
to 10 CFR part 430 requirements and not otherwise specified in this
section, manufacturers and private labelers of any covered product must
possess and rely upon a reasonable basis consisting of competent and
reliable scientific tests and procedures substantiating the
representation.
(c) For representations of the light output for general service
light-emitting diode (LED or OLED) lamps, the Commission will accept as
a reasonable basis scientific tests conducted according to IES LM79.
(d) Determinations of estimated annual energy consumption and
estimated annual operating (energy) costs of televisions must be based
on the procedures contained in the ENERGY STAR Version 4.2 test, which
is comprised of the ENERGY STAR Program Requirements, Product
Specification for Televisions, Eligibility Criteria Version 4.2
(Adopted April 30, 2010); the Test Method (Revised Aug-2010); and the
CEA Procedure for DAM Testing: For TVs, Revision 0.3 (Sept. 8, 2010).
Annual energy consumption and cost estimates must be derived assuming 5
hours in on mode and 19 hours in sleep (standby) mode per day. These
ENERGY STAR requirements are incorporated by reference into this
section. The Director of the Federal Register has approved these
incorporations by reference in accordance with 5 U.S.C. 552(a) and 1
CFR part 51. Copies of the test procedure may be inspected or obtained
at the United States Environmental Protection Agency, ENERGY STAR
Hotline (6202J), 1200 Pennsylvania Avenue NW., Washington, DC 20460, or
at http://www.energystar.gov/ia/partners/product_specs/program_reqs/Televisions_Program_Requirements.pdf [Telephone: ENERGY STAR Hotline:
1-888-782-7937]; at the Federal Trade Commission, Consumer Response
Center, Room 130, 600 Pennsylvania Avenue NW., Washington, DC 20580
[Telephone: 1-202-326-2830]; and at the National Archives and Records
Administration, at http://www.archives.gov/federal-register/cfr/ibr-locations.html [Telephone: 1-202-741-6030].
(e) Representations for ceiling fans under section 305.13 must be
derived from procedures in 10 CFR 430.23.
5. Section 305.6 is revised to read as follows:
Sec. 305.6 Manufacturer duty to provide labels.
For each covered product that a manufacturer distributes in
commerce which is required by this part to bear an EnergyGuide or
Lighting Facts label, the manufacturer must make a copy of the label
available on a publicly accessible Web site in a manner that allows
catalog sellers to hyperlink to the label or download it for use in Web
sites or paper catalogs. The labels must remain on the Web site for two
years after the manufacturer ceases the model's production.
6. In Sec. 305.7, revise paragraph (g) to read as follows:
Sec. 305.7 Determination of capacity.
* * * * *
(g) Clothes washers. The capacity shall be the tub capacity as
determined according to appendix J1 to 10 CFR part 430, expressed as
cubic feet rounded to the nearest tenth of a foot.
* * * * *
7. In Sec. 305.8, paragraph (a)(1) is revised to read as follows:
Sec. 305.8 Submission of data.
(a)(1) Except as provided in paragraphs (a)(2) and (a)(3) of this
section, each manufacturer of a covered product subject to the
disclosure requirements of this part and subject to Department of
Energy certification requirements in 10 CFR part 430 shall submit
annually a report for each model in current production containing the
same information that must be submitted to the Department of Energy
pursuant to 10 CFR part 430 for that product, and that the Department
has identified as public information pursuant to 10 CFR part 429. In
lieu of submitting the required information to the Commission as
required by this section, manufacturers may submit such information to
the Department of Energy via the Compliance and Certification
Management System (CCMS) at https://regulations.doe.gov/ccms as
provided by 10 CFR 430.62.
(2) Manufacturers or private labelers of ceiling fans shall submit
annually a report containing the brand name, model number, diameter (in
inches), wattage at high speed excluding any lights, and airflow
(capacity) at high speed for each basic model in current production.
(3) This section does not require reports for televisions and
general service light-emitting diode (LED or OLED) lamps.
* * * * *
8. In Sec. 305.11, paragraphs (d) and (e) are revised to read as
follows:
Sec. 305.11 Labeling for refrigerators, refrigerator-freezers,
freezers, dishwashers, clothes washers, water heaters, room air
conditioners, and pool heaters.
* * * * *
(d) Label type. (1) Except for room air conditioners as provided in
paragraph (d)(2), manufacturers or private labelers must affix the
labels to the product in the form of an adhesive label before
distribution of the product into commerce. The adhesive labels should
be applied so they can be easily removed without the use of tools or
liquids, other than water, but should be applied with an adhesion
capacity sufficient to prevent their dislodgment during normal handling
throughout the chain of distribution to the consumer. The paper stock
for pressure-sensitive or other adhesive labels shall have a basic
weight of not less than 58 pounds per 500 sheets (25'' x 38'') or
equivalent, exclusive of the release liner and adhesive. A minimum peel
adhesion capacity for the adhesive of 12 ounces per square inch is
suggested, but not required if the adhesive can otherwise meet the
requirements of this paragraph.
(2) Labels for room air conditioners shall be printed on or affixed
to the
[[Page 15308]]
principal display panel of the product's packaging.
(e) Placement. Manufacturers shall affix adhesive labels to the
covered products before distribution into commerce in such a position
that it is easily read by a consumer examining the product. The label
generally should be located on the upper-right-front corner of the
product's front exterior. However, some other prominent location,
including a prominent location in the product's interior, may be used
as long as the label will not become dislodged during normal handling
throughout the chain of distribution to the retailer or consumer. The
top of the label should not exceed 74 inches from the base of taller
products. The label can be displayed in the form of a flap tag adhered
to the top of the appliance and bent (folded at 90[deg]) to hang over
the front, as long as this can be done with assurance that it will be
readily visible and will not become dislodged.
* * * * *
9. Section 305.12, paragraphs (f)(8)(iii) and (g)(9)(iii) are
revised to read as follows:
Sec. 305.12 Labeling for central air conditioners, heat pumps, and
furnaces.
* * * * *
(f) * * *
(8) * * *
(iii) The manufacturer may include the ENERGY STAR logo on the
bottom right corner of the label for qualified products. The logo must
be 1 inch high and no greater than 3 inches wide. Only manufacturers
that have signed a Memorandum of Understanding with the Department of
Energy or the Environmental Protection Agency may add the ENERGY STAR
logo to labels on qualifying covered products; such manufacturers may
add the ENERGY STAR logo to labels only on those covered products that
are contemplated by the Memorandum of Understanding.
* * * * *
(g) * * *
(9) * * *
(iii) The manufacturer may include the ENERGY STAR logo on the
bottom right corner of the label for qualified products. The logo must
be 1 inch high and no greater than 3 inches wide. Only manufacturers
that have signed a Memorandum of Understanding with the Department of
Energy or the Environmental Protection Agency may add the ENERGY STAR
logo to labels on qualifying covered products; such manufacturers may
add the ENERGY STAR logo to labels only on those covered products that
are contemplated by the Memorandum of Understanding.
10. In Sec. 305.13 paragraph (a) is revised to read as follows:
Sec. 305.13 Labeling for ceiling fans.
(a) Ceiling fans--
(1) Content. Any covered product that is a ceiling fan shall be
labeled clearly and conspicuously on the package's principal display
panel with the following information in order from top to bottom on the
label:
(i) Headlines and text as illustrated in the prototype and sample
labels in Appendix L to this part;
(ii) the product's estimated annual operating cost based on 6 hours
use per day and 11 cents per kWh.
(iii) The product's airflow at high speed expressed in cubic feet
per minute and determined pursuant to Sec. 305.5 of this part;
(iv) The product's electricity usage at high speed expressed in
watts and determined pursuant to Sec. 305.5 of this part as indicated
in Ceiling Fan Label Illustration of appendix L of this part;
(v) The following statement shall appear on the label for fans
fewer than 49 inches in diameter: ``Compare: 36'' to 48'' ceiling fans
have an estimated yearly energy cost ranging from approximately $2 to
$53.'';
(vi) The following statement shall appear on the label for fans 49
inches or more in diameter: ``Compare: 49'' to 60'' ceiling fans have
an estimated yearly energy cost ranging from approximately $3 to
$29.''; and
(vii) The ENERGY STAR logo as illustrated on the ceiling fan label
illustration in Appendix L for qualified products, if desired by the
manufacturer. Only manufacturers that have signed a Memorandum of
Understanding with the Department of Energy or the Environmental
Protection Agency may add the ENERGY STAR logo to labels on qualifying
covered products; such manufacturers may add the ENERGY STAR logo to
labels only on those products that are covered by the Memorandum of
Understanding;
(2) Label size, color, and text font. The label shall be four
inches wide and three inches high. The label colors shall be process
black text on a process yellow background. The text font shall be Arial
or another equivalent font. The text on the label shall be black with a
white background. The label's text size, format, content, and the order
of the required disclosures shall be consistent with ceiling fan label
illustration of appendix L of this part.
(3) Placement. The ceiling fan label shall be printed on or affixed
to the principal display panel of the product's packaging.
(4) Additional information. No marks or information other than that
specified in this part shall appear on this label, except a model name,
number, or similar identifying information.
* * * * *
11. Section 305.17, paragraphs (d), (e), (e)(1), are revised and
(h) is added to read as follows:
Sec. 305.17 Television labeling.
* * * * *
(d) Label types. Except as provided in paragraph (i), the labels
must be affixed to the product in the form of either an adhesive label,
cling label, or alternative label as follows:
* * * * *
(e) Placement--(1) In general. Except as provided in paragraph (i),
all labels must be clear and conspicuous to consumers viewing the
television screen from the front.
* * * * *
(h) Labels for small televisions: For television with screens
measuring nine inches or less diagonally, manufacturers may print the
label required by this section on the primary display panel of the
product's packaging or affix a label to the packaging in lieu of
affixing a label to the television screen or bezel. The size of the
label may be scaled to fit the packaging size as appropriate, as long
as it remains clear and conspicuous.
* * * * *
12. Section 305.20 is revised to read as follows:
Sec. 305.20 Paper catalogs and Web sites.
(a) Covered products offered for sale on the Internet. Any
manufacturer, distributor, retailer, or private labeler who advertises
a covered product on an Internet Web site in a manner that qualifies as
a catalog under this Part shall disclose energy information as follows:
(1) Content.
(i) Products required to bear EnergyGuide or Lighting Facts labels.
All Web sites advertising covered refrigerators, refrigerator-freezers,
freezers, room air conditioners, clothes washers, dishwashers, ceiling
fans, pool heaters, central air conditioners, heat pumps, furnaces,
general service lamps, and televisions must display, for each model, an
image of the label required for that product by this Part. The Web site
may hyperlink to the image of the label using the icon depicted in
Appendix L.
(ii) Products not required to bear EnergyGuide or Lighting Facts
labels. All Web sites advertising covered showerheads, faucets, water
closets, urinals, general service fluorescent
[[Page 15309]]
lamps, fluorescent lamp ballasts, and metal halide lamp fixtures must
include the following disclosures for each covered product:
(A) Showerheads, faucets, water closets, and urinals. The product's
water use, expressed in gallons and liters per minute (gpm and L/min)
or per cycle (gpc and L/cycle) or gallons and liters per flush (gpf and
Lpf) as specified in Sec. 305.16.
(B) General service fluorescent lamps, fluorescent lamp ballasts
and luminaires and metal halide lamp fixtures. A capital letter ``E''
printed within a circle.
(2) Format. The required Web site disclosures, whether label image,
icon, or text, must appear clearly and conspicuously and in close
proximity to the covered product's price on each Web page that contains
a detailed description of the covered product and its price. The label
and hyperlink icon must conform to the prototypes in Appendix L, but
may be altered in size to accommodate the Web page's design, as long as
they remain clear and conspicuous to consumers viewing the page.
(b) Covered products offered for sale in paper catalogs. Any
manufacturer, distributor, retailer, or private labeler that advertises
a covered product in a paper publication that qualifies as a catalog
under this Part shall disclose energy information as follows:
(1) Content.
(i) Products required to bear EnergyGuide or Lighting Facts labels.
All paper catalogs advertising covered products required by this Part
to bear EnergyGuide or Lighting Facts labels illustrated in Appendix L
(refrigerators, refrigerator-freezers, freezers, room air conditioners,
clothes washers, dishwashers, ceiling fans, pool heaters, central air
conditioners, heat pumps, furnaces, general service fluorescent lamps,
general service lamps, and televisions) must either display an image of
the full label prepared in accordance with this Part, or make a text
disclosure as follows:
(A) Refrigerator, refrigerator-freezer, and freezer. The capacity
of the model determined in accordance with Sec. 305.7, the estimated
annual operating cost determined in accordance with Sec. 305.5 and
appendix K of this Part, and a disclosure stating ``Your energy cost
depends on your utility rates and use. The estimated cost is based on
11 cents per kWh and TK hours of use per day. For more information,
visit www.ftc.gov/energy.''
(B) Room air conditioners and water heaters. The capacity of the
model determined in accordance with Sec. 305.7, the estimated annual
operating cost determined in accordance with Sec. 305.5 and appendix K
of this Part, and a disclosure stating ``Your operating costs will
depend on your utility rates and use. The estimated operating cost is
based on a national average [electricity, natural gas, propane, or oil]
cost of [$ ---- per kWh, therm, or gallon]. For more information, visit
www.ftc.gov/energy.''
(C) Clothes washers and dishwashers. The capacity of the model
determined in accordance with Sec. 305.7 and the estimated annual
operating cost determined in accordance with Sec. 305.5 and appendix
K, and a disclosure stating ``Your energy cost depends on your utility
rates and use. The estimated cost is based on [4 washloads a week for
dishwashers, or 8 washloads a week for clothes washers] and 11 cents
per kWh for electricity and $---- per therm for natural gas. For more
information, visit www.ftc.gov/energy.''
(D) General service fluorescent lamps or general service lamps. All
the information concerning that lamp required by Sec. 305.15 of this
part to be disclosed on the lamp's package, and a disclosure stating
``Your energy cost depends on your utility rates and use. The estimated
cost and life is based on 11 cents per kWh and 3 hours of use per day.
For more information, visit www.ftc.gov/energy.'' For the ``Light
Appearance'' disclosure required by Sec. 305.15(b)(3)(iv), the catalog
need only disclose the lamp's correlated color temperature in Kelvin
(e.g., 2700 K). General service fluorescent lamps or incandescent
reflector lamps must also include a capital letter ``E'' printed within
a circle and the statement described in Sec. 305.15(d)(1).
(E) Ceiling fans. All the information required by Sec. 305.13.
(F) Televisions. The estimated annual operating cost determined in
accordance with Sec. 305.5 and a disclosure stating ``Your energy cost
depends on your utility rates and use. The estimated cost is based on
11 cents per kWh and 5 hours of use per day. For more information,
visit www.ftc.gov/energy.''
(ii) Products not required to bear EnergyGuide or Lighting Facts
labels. All Web sites advertising covered products not required by this
Part to bear labels with specific design characteristics illustrated in
Appendix L (showerheads, faucets, water closets, urinals, fluorescent
lamp ballasts, and metal halide lamp fixtures) must make a text
disclosure for each covered product identical to those required for
Internet disclosures under Sec. 305.20(a)(1)(iii).
(2) Format. The required disclosures, whether text, label image, or
icon, must appear clearly and conspicuously on each page that contains
a detailed description of the covered product and its price. If a
catalog displays an image of the full label, the size of the label may
be altered to accommodate the catalog's design, as long as the label
remains clear and conspicuous to consumers. For text disclosures made
pursuant to 305.20(b)(1)(i) and (ii), the required disclosure may be
displayed once per page per type of product if the catalog offers
multiple covered products of the same type on a page, as long as the
disclosure remains clear and conspicuous.
13. Revise Appendix L by revising Sample Icon 17, adding Sample
Icon 18, and revising Ceiling Fan Illustration to read as follows:
Appendix L to Part 305--Sample Labels
* * * * *
BILLING CODE 6750-01-P
[GRAPHIC] [TIFF OMITTED] TP15MR12.010
* * * * *
[[Page 15310]]
[GRAPHIC] [TIFF OMITTED] TP15MR12.011
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2012-4865 Filed 3-14-12; 8:45 am]
BILLING CODE 6750-01-C