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'')

FEDERAL TRADE COMMISSION

16 CFR Part 305

Rule Concerning Disclosures Regarding Energy Consumption and

Water Use of Certain Home Appliances and Other Products Required Under

the Energy Policy and Conservation Act (``Appliance Labeling Rule'')

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``Commission'') issues final

amendments to the Appliance Labeling Rule (``Rule'') to allow

manufacturers of general service incandescent lamps (including

incandescent reflector lamps) with a design voltage other than 120

volts an option as to where on product labels specific disclosures must

be made, to clarify the light output measure that manufacturers of

incandescent reflector lamps must disclose on lamp labels, to delete

the requirement that the lumen disclosure for incandescent reflector

lamps be followed by the term ``at beam spread,'' and to allow

manufacturers of incandescent reflector lamps the option of adding a

reference to ``beam spread'' to the Advisory Statement about saving

energy costs.

EFFECTIVE DATE: June 13, 1995.

FOR FURTHER INFORMATION CONTACT: Kent C. Howerton, Attorney, Federal

Trade Commission, Bureau of Consumer Protection, Division of

Enforcement, Room S-4302, Washington, D.C. 20580, telephone 202/326-

3013 (voice), 202/326-3259 (fax).

SUPPLEMENTARY INFORMATION:

I. Introduction

The Commission issues final amendments to the lamp labeling

requirements of the Appliance Labeling Rule (``Rule''), 16 CFR part

305. The Commission proposed these amendments and solicited comments on

them in a notice published on March 22, 1995, 60 FR 15200 (1995), in

response to a petition dated January 31, 1995 (``Petition'') and a

letter dated January 30, 1995 (``January 30 letter'') from the

[[Page 31078]] Lamp Section of The National Electrical Manufacturers

Association (``NEMA'').1

\1\ NEMA is a trade association representing the nation's

largest manufacturers of lamp products. Its members produce more

than 90 percent of the lamp products subject to the lamp labeling

requirements of the Appliance Labeling Rule.

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The Petition requested that the Commission allow manufacturers of

incandescent lamp products with a design voltage other than 120 volts

an option as to where on product labels the required disclosures must

be made under the lamp labeling requirements of the Appliance Labeling

Rule (``lamp labeling rules'').2 The January 30 letter requested

clarification of the light output disclosure required for incandescent

reflector lamp products (spot lights and flood lights) and acceptance

of minor changes to the disclosures required for incandescent reflector

lamps.

\2\ The Petition also requested that the Commission stay,

through November 30, 1995, ``compliance against manufacturers who,

in good faith and despite the exercise of due diligence, are unable

to change all of their lamp packages prior to the May 15, 1995

effective date of the Lamp Labeling Rule.'' In response to the

Petition, the Commission, on March 22, 1995, exercised its

prosecutorial discretion and issued an Enforcement Policy Statement

(``Statement''), 60 FR 15198 (1995). The Statement explained that

the Commission had determined to avoid taking law enforcement

actions until December 1, 1995 against manufacturers of general

service incandescent lamp products for labeling not in compliance

with the disclosure requirements of the Appliance Labeling Rule. The

Statement remains in effect until December 1, 1995.

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In response to the Petition and the January 30 letter, the

Commission proposed amending the Rule to: (a) Allow manufacturers of

incandescent lamps that have a design voltage of other than 120 volts

the option of making required disclosures at 120 volts on a label panel

other than the primary display panel under specific conditions; (b)

clarify the measure of light output that must be disclosed for

incandescent reflector lamps; (c) eliminate a required reference to

``at beam spread'' in connection with the disclosure of light output

for incandescent reflector lamps; and (d) allow manufacturers of

incandescent reflector lamps the option of adding a reference to

selecting an incandescent reflector lamp with the ``beam spread'' the

purchaser needs to a required Advisory Statement that explains how

purchasers can save energy costs.

II. Background

On May 13, 1994 the Commission published final labeling rules

(``lamp labeling rules'') for various types of lamp products (``light

bulbs''), including general service fluorescent lamps, general service

incandescent lamps (including reflector incandescent lamps), and medium

base compact fluorescent lamps,3 as mandated by Energy Policy Act

of 1992 (``EPA 92'') 4 amendments to the Energy Policy and

Conservation Act of 1975 (``EPCA'').5 The Commission issued the

lamp labeling rules as amendments to the Appliance Labeling Rule, 16

CFR part 305. The lamp labeling rules became effective on May 15,

1995.6

\3\ Final rule (including Statement of Basis and Purpose

(``SBP'')), 59 FR 25176 (1994). On December 29, 1994, the Commission

published minor, technical amendments to resolve certain

inconsistencies in paragraph numbering and language that had arisen

during the course of four separate proceedings amending the Rule's

requirements concerning other products. 59 FR 67524 (1994). The

specific lamp products covered by the lamp labeling rules are

described in Sec. 305.3(k)-(m) of the Appliance Labeling Rule, 16

CFR 305.3(k)-(m) (1995).

\4\ Pub. L. No. 102-486, 106 Stat. 2776, 2817-2832 (Oct. 24,

1992).

\5\ 42 U.S.C. 6201, 6291-6309.

\6\ The EPA amendments to EPCA required that the lamp labeling

rules become effective 12 months after the rules' publication in the

Federal Register. Because May 13, 1995, was a Saturday, the

effective date was Monday, May 15. 42 U.S.C. 6294(a)(2)(C)(i). But

see note 2, supra.

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These rules require disclosures on the primary display panel of

package labels of light output (in lumens), energy used (in watts), and

life (in hours), plus an Advisory Statement that explains how

purchasers can save energy costs. For incandescent reflector lamps

(used to focus or spread light on a particular object or objects), the

rules additionally require that the disclosure of light output (in

lumens) be for the lamp's ``beam spread,'' and that the disclosure of

lumens be followed clearly and conspicuously by the phrase ``at beam

spread.'' Based on the statutory directive that the Commission

promulgate these labeling rules and that labeling information for

incandescent lamps be based on performance at 120 volts,7 the lamp

labeling rules require that the disclosures of light output, energy

used, and life for general service incandescent lamps (including

incandescent reflector lamps) appear on the primary display panel of

the package label based on operation at 120 volts, regardless of the

lamp's design voltage. The lamp labeling rules, however, allow

manufacturers the option of adding disclosures based on operation at a

different design voltage, either on the primary display panel or on a

separate panel on the package.

\7\ Under section 324(a)(2)(C)(i) of EPCA, as amended by EPA 92:

``Labeling information for incandescent lamps shall be based on

performance when operated at 120 volts input, regardless of the

rated lamp voltage.'' 42 U.S.C. 6294(a)(2)(C)(i).

The lamp labeling rules in the Appliance Labeling Rule overlap

certain disclosures already required on packages of non-reflector

general service incandescent bulbs by the Commission's Light Bulb

Rule.8 The Light Bulb Rule, unlike the lamp labeling rules in the

Appliance Labeling Rule, requires that package labels clearly and

conspicuously disclose average initial wattage, light output expressed

in average initial lumens, and average laboratory life expressed in

hours, based on operation at the bulb's ``stated design voltage.''

9 Under the Light Bulb Rule, the disclosures must appear on at

least two panels of the outer sleeve or container in which bulbs are

displayed and additionally on all panels of the inner and the outer

sleeve that contain any reference to wattage, lumens, life, or

voltage.10

\8\ 16 CFR part 409. The Light Bulb Rule, issued in 1970, was

intended to prevent deceptive or unfair practices in the sale of

incandescent light bulbs. Other types of lamps covered by the

Appliance Labeling Rule amendments (including incandescent reflector

lamps) are not covered by the Light Bulb Rule. In this notice,

references to ``lamp labeling rules'' refer to the lamp labeling

requirements of the Appliance Labeling Rule, 16 CFR part 305, and

references to the ``Light Bulb Rule'' refer to the Light Bulb Rule,

16 CFR part 409.

\9\ Id. at 409.1 n. 1.

\10\ Id. at n. 4.

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The Commission published a request for comments on the Light Bulb

Rule as part of its regulatory review program on April 6, 1995, 60 FR

17491 (1995). This notice specifically solicits comments on whether the

rule should be amended to reduce or eliminate any overlap it may have

with the lamp labeling rules under the Appliance Labeling Rule. In

addition, it seeks comments on several other questions, including

whether the Light Bulb Rule is still needed, the benefits and costs of

the Rule to consumers, the burdens and benefits to manufacturers, any

proposed changes to the Rule, and the effect of any recent changes in

technology or economic conditions. The comment period ends June 6,

1995.

III. Proposed Amendments

A. Disclosures at Design Voltage Other Than 120 Volts

In response to NEMA's Petition, the Commission proposed amending

the lamp labeling rules in the Appliance Labeling Rule, as NEMA

requested, to approve an optional labeling scheme for manufacturers of

incandescent lamp products with a design voltage other than 120 volts.

Under the proposed amendments, manufacturers could choose to limit

disclosures of light output, energy used, and life on the primary

display panel of the package to operation of the lamp at the lamp's

design voltage if: [[Page 31079]]

The disclosures of light output, energy used, and life

when operated at 120 volts appeared elsewhere on the package.

The following explanatory statement appeared clearly and

conspicuously on the primary display panel:

This product is designed for (125/130) volts. When used on the

normal line voltage of 120 volts, the light output and efficiency are

noticeably reduced. See (side/back) panel for 120 volt ratings.11

\11\ NEMA proposed the use of a shorter explanatory statement:

``(125/130) volt design. At 120 v., light output and efficiency are

noticeably reduced. See (side/back) panel for data at 120 v.''

Petition at 6. NEMA stated that it would accept a more detailed

version of the explanatory statement. Id. at note 6. The Commission

proposed requiring the more detailed explanatory statement that NEMA

suggested.

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All panels of the package that contained a claim about

light output, energy used, or life clearly and conspicuously identified

the lamp as ``(125 volt/130 volt).''

B. Light Output Disclosures for Reflector Lamps

In response to NEMA's January 30 letter, the Commission proposed

amending the Appliance Labeling Rule to clarify that the required light

output disclosure for incandescent reflector lamps is of ``total

forward lumens'' instead of lumens ``at beam spread.'' 12 The

Commission also proposed amending the Rule to delete the requirement

that the lumen light output disclosure be followed by the phrase ``at

beam spread.'' Lastly, the Commission proposed amending the Rule to

allow manufacturers, at their option, to insert in the required

Advisory Statement a reference to selecting a lamp with the ``beam

spread,'' as well as the light output, purchasers need.

\12\ The proposed amendments would clarify that the lumen

disclosure for incandescent reflector lamps is consistent with the

light output measurement used by the Department of Energy (``DOE'')

in determining the efficiency of these products under the minimum

efficiency standards set by the EPA 92 amendments to EPCA. See

Interim final rule, 59 FR 49468 (1994). DOE published its interim

final rule for testing to comply with the minimum efficiency

standards on September 28, 1994, after the Commission published the

lamp labeling rule amendments to the Appliance Labeling Rule.

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IV. Comments and Final Amendments

A. Comments Received

The Commission received eight comments in response to the notice

soliciting comments on the proposed amendments.13 Four comments

specifically support both sets of proposed amendments.14 None of

the comments object to the proposed amendments. Six comments pertain to

issues the Commission addressed in the original rulemaking proceeding

and do not contain new evidence to support their positions.15 One

comment requests that the Commission exempt small producers and

suppliers from the labeling requirements.16 The Commission does

not have the authority under EPCA to grant such relief. Two comments

address the definition of incandescent reflector lamps ``designed for

rough or vibration service applications.'' These lamps are exempted by

EPCA from the Commission's labeling rules and the minimum efficiency

standards.17 DOE currently is addressing the issue of what lamps

qualify for that exemption.18

\13\ Arkalite Manufacturing Co., Inc. (``Arkalite''), General

Electric Company (``GE''), Hytron Electric Products (``Hytron''),

Lawrence Berkeley Laboratory (``LBL''), Maintenance Engineering

(``ME''), Marvel Lighting Corporation (``Marvel''), the National

Electrical Manufacturers Association (``NEMA''), and Rensselaer

Polytechnic Institute (``Rensselaer'').

\14\ LBL (agrees with proposed amendments for lamps with a

design voltage other than 120 volts; concurs with proposed

clarification of incandescent reflector lamp lumens and labeling

changes); Marvel (supports greater flexibility in disclosures and

any changes that would clarify labeling requirements proposed by

NEMA); NEMA (supports proposed amendments); Rensselaer (supports

NEMA's proposal for alternative disclosure format for lamps with a

design voltage other than 120 volts and FTC's proposal to require

the more detailed explanatory statement; agrees with use of total

forward lumens for reflector lamps, consistent with light output

definition in EPA 92).

\15\ Arkalite (comparison 120 volt/130 volt information on

packages of 130 volt A-bulbs sold as long life is confusing and

consumers do not know how many lumens to look for); Hytron (long-

life lamps may be more efficient for fixtures not readily accessible

when comparing lumen-per-watt cost to lamp replacement cost); LBL

(preferable to use term ``power'' to describe wattage because term

``energy used'' is technically incorrect and misleading); Marvel

(new labeling requirements will be confusing and meaningless to

consumers); ME (laboratory-measured life ratings under ideal

conditions are misleading because lab conditions have little

correlation to actual use); Rensselaer (marketing ``long life'' 130

volt lamps for use on 120 volt circuits will mislead consumers if

long-life claims are on package with data at 130 volts).

\16\ Marvel (exempt small producers and suppliers from labeling

requirements to alleviate tremendous cost imposed and allow them to

survive financially; cumulative sales of small distributors and

manufacturers with probably less than 2% of total lamp sales will

not have much effect on energy consumption for country as a whole).

\17\ Hytron (multiple support filament, long-life incandescent

lamps should be considered to be rough/vibration service lamps); ME

(lamps with multiple supports designed for rough service last much

longer under actual operating conditions than those with no filament

supports; exclude lamps with four or more filament supports from

labeling requirements to keep consumers from comparing lab life

ratings of lamps that may have different actual ratings).

\18\ Notice of Proposed Rule and Public Hearing, 59 FR 49478

(1994).

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Lastly, one comment requests that the Commission require the first

annual report from lamp manufacturers no earlier than March 1, 1997

because imposing a new reporting requirement immediately after changing

the substantial number of labels affected would be unfair and unduly

burdensome.19 This reporting requirement is mandated directly by

EPCA, although the Commission has authority to specify the date on

which the annual reports are required. The Commission has stayed this

reporting requirement under the lamp labeling rules until DOE adopts

final test procedures for lamp products under the EPA 92 amendments to

EPCA.20 Although DOE has published interim final testing rules,

DOE has not yet issued its final rules. The Commission will address the

issue of when the first annual report will be due under the Rule after

DOE takes final action on its testing rules.

\19\ GE.

\20\ 59 FR at 25176, 25201-02.

B. Final Amendments

Based on NEMA's Petition, NEMA's January 30 letter, and the

comments the Commission received in response to the March 22 notice,

the Commission has determined to adopt the amendments to the Appliance

Labeling Rule it proposed in the notice.21 The amended Rule will

give manufacturers of incandescent lamp products with a design voltage

other than 120 volts greater flexibility in designing packages to make

the required labeling disclosures and will clarify that the light

output disclosure for incandescent reflector lamps is total forward

lumens, which is the lumen measurement used to determine whether those

lamps meet EPCA's minimum efficiency standards. The amended Rule thus

will reduce the regulatory burden imposed by the Rule. At the same

time, the amended Rule will ensure that purchasers are provided with

accurate information they need to select the most energy efficient

lamps that meet their requirements, and it will meet the statutory

standard that required disclosures for incandescent lamps be based on

operation at 120 volts.

\21\ Although the amendments are effective today, the

Commission's Enforcement Policy Statement published on March 22,

1995, applies to the amendments. See note 2, supra.

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1. Disclosures at Design Voltage Other Than 120 Volts

The EPA 92 amendments to EPCA and its legislative history are

silent about the specific purpose and meaning of the mandate that

labeling information shall be based on operation at 120 volts. The

Commission, therefore, has analyzed the record evidence

[[Page 31080]] concerning the methods of sales distribution and the

uses of these lamp products, as well as the manner in which purchasers

could best be provided with accurate and important information to

enable them ``to select the most energy efficient lamps which meet

their requirements.''

According to the original rulemaking record, the majority of the

electric service voltage supplied by local utilities in the United

States for lighting is 120 volts. The rest is supplied at 125 volts,

primarily in the Pacific Northwest and the Tennessee Valley. No

evidence was presented that any local utility supplies electricity at

130 volts, or at service voltage other than 120 or 125 volts. The lamp

manufacturers who participated in the proceeding stated that they

distribute incandescent lamps with a design voltage of 120 volts for

sale in 120 voltage service regions. They also stated, however, that

they cannot guarantee that lamps with a design voltage of 125 volts are

only offered for sale in 125 voltage service regions. Manufacturers

that distribute incandescent lamps with a design voltage of 130 volts

stated that they distribute these lamps, which are marketed as long-

life lamps, in both 120 and 125 voltage service regions.

In light of the statutory standard and the rulemaking record, the

Commission originally determined to require the disclosure on the

primary display panel of specific lamp performance information based on

operation of lamps at 120 volts. Otherwise, purchasers in most parts of

the country who purchase lamps with a design voltage of 125 or 130

volts might be misled by exaggerated light output claims. Although the

EPA 92 amendments to EPCA state that labeling information for

incandescent lamps shall be based on operation at 120 volts, regardless

of the rated (or design) lamp voltage, the statute does not prohibit

the Commission from allowing additional disclosures based on operation

of the lamp at a different design voltage. EPCA also leaves to the

Commission's discretion both the specific disclosures that should be

required and the manner and format in which the disclosures should be

made. Thus, in order to ensure that purchasers in 125-volt service

regions are provided accurate performance information, and to allow

manufacturers flexibility in marketing longer-life, 130-volt design

voltage lamps, the Commission determined to allow manufacturers, at

their option, to disclose performance information at an additional

design voltage. This information could be included on the primary

display panel, or on a different panel on the package.

NEMA, however, asserted in its Petition that marketing

considerations may lead manufacturers to put design voltage information

on the primary display panel (along with the required data at 120

volts). A review of sample labels with dual 120 volt and 125 volt/130

volt disclosures on the primary display panel indicates that this

disclosure format may be confusing to consumers. The Commission,

therefore, is amending the Rule to allow manufacturers the option of

limiting disclosures of light output, energy used, and life on the

primary display panel of the package to operation of the lamp at its

design voltage if: (a) The disclosures of light output, energy used,

and life when operated at 120 volts appear elsewhere on the package;

(b) a specific explanatory statement about the effect of the lamp's

design voltage on light output and efficiency when the lamp is operated

at 120 volts and the location of performance information for operation

at 120 volts appears clearly and conspicuously on the primary display

panel; and (c) all panels of the package that contain a claim about

light output, energy used, or life clearly and conspicuously identify

the lamp as ``(125 volt/130 volt).''

The amendments adopted today comply with the statutory mandate

because they require clear and conspicuous disclosures on labels of

specific performance information for the lamps when they are operated

at 120 volts. In addition, the amendments ensure that purchasers are

provided with accurate information they need when they make purchase

decisions.

2. Light Output Disclosures for Reflector Lamps

Not all light produced by an incandescent reflector lamp is

reflected forward as useable light.22 Some light output may escape

around the base of the lamp and be lost into the lamp fixture. Some

light may be reflected back and forth inside the cone of the lamp and

not be emitted as useable light output. Thus, in an attempt to ensure

that only useable light output would be disclosed, the original lamp

labeling amendments to the Appliance Labeling Rule required that the

labeled light output for incandescent reflector lamps be for the lamp's

``beam spread,'' and be followed clearly and conspicuously by the

phrase ``at beam spread.''

\22\ Incandescent reflector lamps (also known as reflectorized

incandescent lamps) are cone-shaped with a reflectorized coating

applied to the cone-shaped part of the bulb. Incandescent reflector

lamps thus allow light output to be directed and focused forward

through the face of the lamp. They may be used, for example, to

provide lighting from recessed ceiling fixtures or as spotlights or

floodlights.

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The Commission now concludes that there has been confusion about

the use of terms such as ``beam spread,'' ``beam angle,'' ``total

lumens,'' and ``total forward lumens'' for incandescent reflector

lamps. Accordingly, the Commission amends the Appliance Labeling Rule

to state that the required light output disclosure for incandescent

reflector lamps is of ``total forward lumens,'' instead of lumens ``at

beam spread.'' With this amendment, the Commission believes the Rule

will state more clearly that the light output disclosure required by

the Appliance Labeling Rule is for the useable light output reflected

forward, and not merely of forward light focused within the more narrow

``beam spread'' of the particular lamp. By use of the term ``total

forward lumens,'' the amended Rule also will more clearly state that

the light output disclosure required by the Appliance Labeling Rule for

incandescent reflector lamps is the same as the light output

measurement used by DOE in determining whether these products meet the

minimum efficiency standards under EPCA.23

\23\ See note 12, supra.

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Because of the confusion that has resulted from the reference to

``beam spread,'' the Commission also amends the Rule to delete the

requirement that the lumen disclosure for incandescent reflector lamps

be followed by the phrase ``at beam spread.'' Further, because the

amended Rule clarifies that the measurement method for determining

light output for all reflector lamps is the same, regardless of the

particular lamp's beam spread or beam angle, it is unnecessary for the

Rule to require a disclosure that the measurement is of ``total forward

lumens.''

Lastly, the Commission amends the Rule to allow manufacturers of

incandescent reflector lamps, at their option, to insert in the

Advisory Statement the reference to selecting a lamp with the ``beam

spread,'' as well as the light output, that purchasers need. The

amended Advisory Statement thus will better assist purchasers in

selecting the most efficient lamp that meets their needs, after they

first select the type of reflector lamp (e.g., spotlight or floodlight)

that they desire.

List of Subjects in 16 CFR Part 305

Advertising, Consumer protection, Energy conservation, Household

applicanes, Labeling, Lamp products, [[Page 31081]] Penalties,

Reporting and recordkeeping requirements.

V. Text of Final Amendments

Accordingly, the Commission amends 16 CFR part 305 as follows:

PART 305--RULE CONCERNING DISCLOSURES REGARDING ENERGY CONSUMPTION

AND WATER USE OF CERTAIN HOME APPLIANCES AND OTHER PRODUCTS

REQUIRED UNDER THE ENERGY POLICY AND CONSERVATION ACT (``APPLIANCE

LABELING RULE'')

1. The authority citation for part 305 continues to read as

follows:

Authority: 42 U.S.C. 6294.

2. Section 305.11 is amended by revising paragraphs (e)(1)(iii),

(e)(1)(iv), and (e)(1)(vi) to read as follows:

Sec. 305.11 Labeling for covered products.

* * * * *

(e) Lamps--

(1)(i) * * *

(iii) The light output, energy usage and life ratings of any

covered product that is a medium base compact fluorescent lamp or

general service incandescent lamp (including an incandescent reflector

lamp), shall be measured at 120 volts, regardless of the lamp's design

voltage. If a lamp's design voltage is 125 volts or 130 volts, the

disclosures of the wattage, light output and life ratings shall in each

instance be:

(A) At 120 volts and followed by the phrase ``at 120 volts.'' In

such case, the labels for such lamps also may disclose the lamp's

wattage, light output and life at the design voltage (e.g., ``Light

Output 1710 Lumens at 125 volts''); or

(B) At the design voltage and followed by the phrase ``at (125

volts/130 volts)'' if the ratings at 120 volts are disclosed clearly

and conspicuously on another panel of the package, and if all panels of

the package that contain a claimed light output, wattage or life

clearly and conspicuously identify the lamp as ``(125 volt/130 volt),''

and if the principal display panel clearly and conspicuously discloses

the following statement:

This product is designed for (125/130) volts. When used on the

normal line voltage of 120 volts, the light output and energy

efficiency are noticeably reduced. See (side/back) panel for 120

volt ratings.

(iv) For any covered product that is an incandescent reflector

lamp, the required disclosure of light output shall be given for the

lamp's total forward lumens.

* * * * *

(vi) For any covered product that is a compact fluorescent lamp or

a general service incandescent lamp (including an incandescent

reflector lamp), there shall be clearly and conspicuously disclosed on

the principal display panel the following statement:

To save energy costs, find the bulbs with the (beam spread and)

light output you need, then choose the one with the lowest watts.''

* * * * *

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 95-14440 Filed 6-12-95; 8:45 am]

BILLING CODE 6750-01-P