Request for Comments Concerning Rule Concerning Incandescent Lamp (Light Bulb) Industry

FEDERAL TRADE COMMISSION

16 CFR Part 409

Request for Comments Concerning Rule Concerning Incandescent Lamp

(Light Bulb) Industry

agency: Federal Trade Commission.

action: Request for public comments.

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summary: The Federal Trade Commission (the ``Commission''), as part of

a systematic review of all its current regulations and guides, is

requesting public comments about the overall costs and benefits, as

well as the overall regulatory and economic impact, of the Rule

Concerning Incandescent Lamp (Light Bulb) Industry (``the Light Bulb

Rule'' or ``the Rule''). All interested persons are hereby given notice

of the opportunity to submit written data, views and arguments

concerning this review of the Rule.

dates: Written comments will be accepted until June 6, 1995.

addresses: Comments should be directed to: Secretary, Federal Trade

Commission, Room H-159, Sixth and Pennsylvania Avenue NW., Washington,

DC 20580. Comments about the Light Bulb Rule should be identified as

``16 CFR Part 409--Comment.''

for further information contact: Terrence J. Boyle or Kent C. Howerton,

Attorneys, Federal Trade Commission, Washington, DC 20580, (202) 326-

3016 or (202) 326-3013.

supplementary information: The Commission has determined, as part of

its oversight responsibilities, to review periodically all its rules

and guides. The information obtained in such reviews assists the

Commission in identifying rules and guides that warrant modification or

rescission. The Commission decided to schedule its regulatory review of

the Light Bulb Rule for 1995 when, pursuant to a directive of the

Energy Policy Act of 1992, the Commission in April 1994 amended the

Appliance Labeling Rule, 16 CFR Part 305, to add incandescent and

fluorescent lamps as covered products. Although there are no

contradictions between the two rules, the Commission scheduled review

of the Light Bulb Rule for this year so it could consider whether to

retain, revise or delete any of its provisions that might overlap the

amended Appliance Labeling Rule.\1\

\1\The two Rules both cover A-type incandescent lamps and

require on their labels disclosure of certain performance ratings

and other information. Specifically, both rules require disclosures

of light output, wattage and laboratory life ratings. The Appliance

Labeling Rule specifies that these disclosures must appear together,

in that order and worded in a certain way (i.e., as ``Light Output:

________ Lumens; Energy Used: ________ Watts; Life: ________

Hours'') on the label's principal display panel. The Light Bulb

Rule, however, does not specify any order or wording for its

required rating disclosures, but simply specifies that the three

ratings be disclosed in terms of lumens, watts and hours and appear

together on at least two side panels of the label and, additionally,

on any other panel on which a lumen, wattage or hours of life claim

is made.

The Appliance Labeling Rule requires the lumens, watts and hours

disclosures to appear with equal conspicuousness, but does not

specify any particular type style or size. The Light Bulb Rule

specifies that the lumens and hours disclosures must both be in a

medium- or bold-face type that is at least two-fifths the height of

the watts disclosure on the same panel or three-sixteenths of an

inch, whichever is larger.

The Appliance Labeling Rule requires that energy saving or

operating cost claims take into consideration, and clearly and

conspicuously disclose in close proximity to the claims, all the

assumptions upon which the claims are based, including, e.g.,

purchase price, unit cost of electricity, hours of use, patterns of

use. The Light Bulb Rule, because it covers not only energy saving

and operating cost claims, but also all comparative lamp life, light

output and lamp cost claims, specifies additional factors (e.g.,

labor costs for replacement, light output, life expectancy) that,

depending on the particular claim being made, must be taken into

consideration and clearly and conspicuously disclosed.

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A. Background

The Rule was promulgated by the Commission in 1970.\2\ The Light

Bulb Rule makes it an unfair method of competition and an unfair and

deceptive act or practice, in connection with the sale in commerce of

general service incandescent electric lamps (light bulbs) to:

\2\35 FR 11784 (July 23, 1970).

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(1) Fail to disclose clearly and conspicuously on the containers of

such lamps (or, if there are no containers, on the bulbs themselves)

their average initial wattage, average initial lumens and average

laboratory life;

(2) Fail to disclose clearly and conspicuously on the bulbs

themselves their average initial wattage and design voltage;

(3) Represent or imply energy savings resulting from a lamp's life

expectancy or light output unless in computing such savings the

following factors are taken into account and disclosed clearly and

conspicuously for the lamp being sold and also (unless the comparison

is only of initial purchase price between lamps of identical wattage,

lumens and laboratory life) the lamp with which the comparison is being

made: lamp cost, electrical power cost, labor cost for lamp replacement

(if any), actual light output in average initial lumens, and average

laboratory life in hours;

(4) Represent or imply that a lamp will give more light, maintain

brightness longer or furnish longer life without clearly and

conspicuously disclosing, for both the lamp being sold and the lamp

with which the comparison is being made the average initial wattage,

the laboratory life in hours, the average initial light output in

lumens, and (if there is a claim the lamp maintains brightness longer)

the light output in lumens at 70% of the lamp's rated life.

Four notes at the end of the Rule define terms used in the Rule or

require certain procedures or tests to be used in making disclosures

required by the Rule. Specifically, these notes: (1) State how

manufacturers are to determine the [[Page 17492]] wattage, lumen and

life rating disclosures required by the Rule, (2) require for the year

1970-71 all lamp labels to explain the meaning of the word ``lumen''

whenever it is used, (3) define the term ``general service incandescent

lamp'' to mean all A-type bulbs and all other incandescent bulbs

substantially the same as A-type bulbs, and (4) define the meaning of

the Rule's term ``clear and conspicuous'' with respect to the minimum

type sizes necessary for required disclosures and the minimum number of

times the required disclosures must be made on lamps and/or their

labels.

B. Issues for Comment

At this time, the Commission solicits written public comments on

the following questions:

1. Is there a continuing need for the Rule?

a. What benefits has the Rule provided to purchasers of the

products or services affected by the Rule?

b. Has the Rule imposed costs on purchasers?

c. Does the light Bulb Rule provide any benefits not provided by

the provisions of the Appliance Labeling Rule relating to lamps?

2. What changes, if any, should be made to the Rule to increase the

benefits of the Rule to purchasers?

a. How would these changes affect the costs the Rule imposes on

firms subject to its requirements?

3. What significant burdens or costs, including costs of

compliance, has the Rule imposed on firms subject to its requirements?

a. Has the Rule provided benefits to such firms?

4. What changes, if any, should be made to the Rule to reduce the

burdens or costs imposed on firms subject to its requirements?

a. How would these changes affect the benefits provided by the

Rule?

5. Does the Rule overlap or conflict with other federal, state, or

local laws or regulations?

6. Since the Rule was issued, what effects, if any, have changes in

relevant technology or economic conditions had on the Rule?

7. Should the Commission retain, or modify in any way, the

particular provisions of the existing Rule that define the term ``clear

and conspicuous'' to mean certain minimum sizes for required

disclosures and certain minimum numbers of times that those required

disclosures must be made on lamps and/or their labels?

8. Should the Commission retain, or modify in any way, the

particular provisions of the existing Rule that require all comparative

energy consumption or operating cost claims, all comparative light

output claims, and all comparative life expectancy claims to be

accompanied by clear and conspicuous disclosures of particular

comparison data for both the lamps being sold and the lamps with which

the comparison is being made?

9. Should the Commission retain, or modify in any way, those

provisions of the existing Rule that duplicate or overlap provisions in

the Appliance Labeling Rule pertaining to lamps?

10. The Light Bulb Rule requires wattage, light output and life

expectancy ratings to be disclosed at the bulbs' design voltage whereas

the Appliance Labeling Rule requires the disclosures at 120 Volts

regardless of the bulbs' design voltage.

a. For general service incandescent bulbs with design voltage other

than 120 Volts, should the Commission continue to require ratings

disclosures at both 120 Volts and design voltage?

b. What percentage of the total quantity of general service

incandescent lamps sold in this country is comprised of lamps with

design voltages other than 120 Volts?

(1) Describe how, for such lamps, the light output, wattage and

expected life ratings differ when the lamp is used at 120 Volts from

when used at the design voltage.

(2) In what areas of the country are lamps with design voltages

other than 120 Volts routinely sold and in what proportions compared

with lamps with design voltages of 120 Volts?

(3) To whom are lamps with design voltages other than 120 Volts

sold and for what uses?

(4) Do purchasers of such lamps also routinely purchase lamps with

design voltages of 120 Volts and, if so, what are the percentages of

their lamp purchases for each category?

(5) How might the market for lamps with design voltages other than

120 Volts be expected to change in the future?

c. At what line voltages is electricity delivered in the United

States? What areas receive electricity at voltages other than 120

Volts? Describe. Are there any private electricity delivery systems

(e.g., industrial plants), that provide electricity internally at

voltages other than 120 volts? Describe.

List of Subjects in 16 CFR Part 409

Advertising, Consumer protection, Energy conservation, Household

appliances, Labeling, Lamp products, Trade practices.

Authority: 15 U.S.C. 41-58.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-8472 Filed 4-5-95; 8:45 am]

BILLING CODE 6750-01-M