Trade Regulation Rule Concerning the Incandescent Lamp (Light Bulb) Industry

FEDERAL TRADE COMMISSION

16 CFR Part 409

Trade Regulation Rule Concerning the Incandescent Lamp (Light

Bulb) Industry

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

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SUMMARY: The Federal Trade Commission (``Commission'' or ``FTC'')

announces the repeal of the Trade Regulation Rule Concerning the

Incandescent Lamp (Light Bulb) Industry (``Light Bulb Rule'' or

``Rule''). The Commission has reviewed the rulemaking record and

determined that, because of more comprehensive lamp labeling rules that

the Commission promulgated in 1994 under the Energy Policy and

Conservation Act, as amended by the Energy Policy Act of 1992, and

current industry light bulb marking practices, the Light Bulb Rule is

no longer necessary or in the public interest. This notice contains a

Statement of Basis and Purpose for repealing the Light Bulb Rule.

EFFECTIVE DATE: June 27, 1996.

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

Trade Commission, Bureau of Consumer Protection, Division of

Enforcement, Room S-4302, 601 Pennsylvania Avenue, NW, Washington, DC

20580, telephone (202) 326-3013.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Commission undertook this rulemaking proceeding as part of the

Commission's ongoing program of evaluating rules and guides to

determine their effectiveness, impact, cost, and need. This proceeding

also responds to President Clinton's National Regulatory Reinvention

Initiative, which, among other things, urges agencies to eliminate

obsolete or unnecessary regulations.

A. Light Bulb Rule

The Commission promulgated the Light Bulb Rule on July 23, 1970,

following a public rulemaking proceeding.1 The Light Bulb Rule

became effective on January 25, 1971. It applies only to non-reflector

general service incandescent electric lamps (commonly referred to as

``light bulbs'').2

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\1\ Final Rule and Statement of Basis and Purpose (``Light Bulb

Rule SBP''), 35 FR 11784 (1970).

\2\ The Light Bulb Rule defines ``general service incandescent

lamps'' as all medium screw base incandescent electric lamps, 15-

watt through 150-watt, 115-volt through 130-volt. The term includes

lamps in the customary ``A'' type and other bulb shapes included in

Interim Federal Specification W-L-00101G, and lamps that are

produced in generally comparable bulb shapes for sale in competition

with other general service incandescent lamps. The rule specifically

excludes lamps designed and promoted primarily for decorative

applications, appliances, traffic signals, showcases, projectors,

airport equipment, trains, and lamps such as color, flood,

reflector, rough service, and vibration service. 16 CFR 409.1 note 3

(1996). The lamp products covered by the Light Bulb Rule commonly

are referred to as ``light bulbs.'' The term ``lamp products,'' on

the other hand, refers more broadly to lighting products in general.

In this notice, the term ``light bulb'' refers only to those lamp

products covered by the Light Bulb Rule.

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In summary, the Light Bulb Rule declares it is an unfair method of

competition and an unfair and deceptive act or practice, in connection

with the sale of general service incandescent light bulbs, to:

(1) fail to disclose clearly and conspicuously on the containers

of such light bulbs (or, if there are no containers, on the bulbs

themselves) their average initial wattage, average initial lumens,

and average laboratory life, 16 CFR 409.1(a)-(b) (1996);

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

themselves their average initial wattage and design voltage, Id. at

409.1(b) (1996); 3

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\3\ In the Light Bulb Rule SBP, the Commission explained that

industry stressed the need to maintain a prominent wattage

disclosure on incandescent light bulbs because the use of excess

wattage in fixtures is unsafe and because consumers were accustomed

to buying on the basis of wattage. 35 FR at 11786.

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(3) represent or imply that savings in light bulb cost or the

cost of light output will result from the use of a particular light

bulb product because of the bulb's life or light output unless, in

computing such savings, the following factors are taken into account

and disclosed clearly and conspicuously for the light bulb being

sold and the bulb with

[[Page 33309]]

which the comparison is being made: light bulb cost, electrical

power cost, labor cost for bulb replacement (if any), actual light

output in average initial lumens, and average laboratory life in

hours, Id. at 409.1(c) (1996); and

(4) represent or imply that a light bulb will give more light,

maintain brightness longer, or furnish longer life without clearly

and conspicuously disclosing, for both the light bulb being sold and

the light bulb with which the comparison is being made: the average

initial light output in lumens, the average initial wattage, the

laboratory life in hours, and, if there is a claim that the light

bulb maintains brightness longer, the light output in lumens at 70%

of the bulbs' rated lives (``maintained average lumens''), Id. at

409.1(d) (1996).

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.

B. Appliance Labeling Rule

In 1994, pursuant to a directive of the Energy Policy Act of 1992

(``EPA 92''),4 the Commission amended its 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''), 16 CFR 305 (1996), to

specify new labeling requirements for lamp products.5 EPA 92

directed the Commission to prescribe rules requiring that certain types

of lamp products be labeled with ``such information as the Commission

deems necessary to enable consumers to select the most energy efficient

lamps which meet their requirements.'' 42 U.S.C. 6294(a)(2)(C)(i).

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

1992) (codified in 42 U.S.C. 6201, 6291-6309). EPA 92 amended in

several respects the Energy Policy and Conservation Act of 1975

(``EPCA''), which requires the Commission to prescribe labeling

rules for certain major household appliances and other products.

\5\ Final Rule and Statement of Basis and Purpose (``Appliance

Labeling Rule/Lamps SBP''), 59 FR 25176 (May 13, 1994). The lamp

labeling requirements of the Appliance Labeling Rule became

effective on May 15, 1995. In response to a petition from the Lamp

Section of the National Electrical Manufacturers Association

(``NEMA''), and because of apparent uncertainties among incandescent

lamp manufacturers regarding their compliance responsibilities under

the combined requirements of the Appliance Labeling Rule and the

Light Bulb Rule, the Commission determined that it would not take

law enforcement actions until December 1, 1995, against

manufacturers of incandescent lamp products not in compliance with

the Appliance Labeling Rule. 60 FR 15198 (March 22, 1995).

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In addition to incandescent light bulbs, the Appliance Labeling

Rule applies to incandescent reflector lamps, 16 CFR 305.03(m) (1996),

medium screw base compact fluorescent lamps, Id. at 305.03(l) (1996),

and general service fluorescent lamps, Id. at 305.03(k) (1996).

Although there are no direct conflicts between the Light Bulb Rule and

the Appliance Labeling Rule, there are overlapping requirements for the

light bulbs that are covered by both rules. The discussion in this

notice summarizes only the requirements of the two rules that apply to

these light bulbs.

Like the Light Bulb Rule, the Appliance Labeling Rule requires

disclosures on package labels of light output, wattage, and life

ratings. 16 CFR 305.11(e)(1)(i)-(ii) (1996). As required by EPCA, 42

U.S.C. 6294(a)(2)(C)(i), the Appliance Labeling Rule requires that

these disclosures be based on performance at 120 volts input,

regardless of the rated lamp voltage (design voltage). 16 CFR

305.11(e)(1)(iii) (1996). The Appliance Labeling Rule, however, allows

manufacturers the option of adding disclosures on lamp packages based

on the lamp's performance at a different design voltage of 125 volts or

130 volts, if the applicable voltage (i.e., 120, 125, or 130) is

disclosed on the label along with each disclosure of light output,

wattage, and life. Manufacturers may choose to place the performance

information at a design voltage of 125 volts or 130 volts on the

primary display panel of the package and place the performance

information at 120 volts elsewhere on the package. If they do so, they

must add a specific disclosure on the primary display panel that

describes the effect on performance of the difference in voltage and

where on the package the performance information at 120 volts may be

found.6

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\6\ Id. The specific disclosure is: ``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.''

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The Appliance Labeling Rule requires that these disclosures appear

together in a specified order and be worded in a certain way (i.e., as

``Light Output: XX Lumens; Energy Used: XX Watts; Life: XX Hours'') on

the label's principal display panel. 16 CFR 305.11(e)(1)(ii) (1996).

The Light Bulb Rule, on the other hand, does not specify any order or

wording for its required disclosures. It simply specifies that the

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

appear together on at least two panels of the label, and on any other

panel on which a lumen, wattage, or hours of life claim is made. 16 CFR

409.1(a), 409.1 note 4 (1996).

The Appliance Labeling Rule requires that the disclosures of light

output, energy used, and life appear with equal clarity and

conspicuousness. 16 CFR 305.11(e)(ii) (1996). It does not specify any

particular type style or type size, but it requires that certain

disclosures be made in the same size print, and that other disclosures

be approximately 50% as large. The Light Bulb Rule specifies that both

the lumens and hours rating disclosures be in a medium-face or bold-

face type that is at least two-fifths the height of the wattage rating

figure on the same panel or three-sixteenths of an inch in height,

whichever is larger. 16 CFR 409.1 note 4 (1996). The Light Bulb Rule

also includes similar type size and style requirements for the

disclosures for multiple filament (three-way) light bulbs. Id.

The Appliance Labeling Rule specifies two additional disclosures

that are not required by the Light Bulb Rule. First, the following

advisory statement must appear on the principal display panel of the

package label: ``To save energy costs, find the bulbs with the light

output you need, then choose the one with the lowest watts.'' 7 16

CFR 305.11(e)(1)(vi) (1996). Second, all cartons of covered lamps that

are shipped within or imported into the United States must be marked

with the following statement: ``These lamps comply with Federal energy

efficiency labeling requirements.'' Id. at 305.11(e)(4) (1996).

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\7\ Manufacturers of incandescent reflector lamps may use the

following alternative advisory disclosure: ``To save energy costs,

find the bulbs with the beam spread and light output you need, then

choose the one with the lowest watts.''

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The Light Bulb Rule requires that the disclosures of light output,

wattage, and life be determined in accordance with a specific Federal

purchase specification and be based upon generally accepted and

approved test methods and specifications, at the lamp product's design

voltage.8 The Appliance Labeling Rule requires that disclosures of

design voltage, wattage, light output or life be based upon a

reasonable basis consisting of competent and reliable scientific tests

that substantiate the disclosures. Under the Appliance

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Labeling Rule, for light output and life ratings the Commission will

accept, but does not require, tests conducted according to specific

test protocols issued by IES,9 or testing in accordance with final

test procedures issued by the U.S. Department of Energy.10

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\8\ 16 CFR 409.1 note 1 (1996). The Light Bulb Rule states that,

for light bulbs covered by that rule, the ``average initial wattage,

average initial lumen, and average laboratory life disclosures

required by this section shall be in accordance with the

requirements of interim Federal Specification, Lamp, Incandescent

(Electric, Large, Tungsten-Filament) W-L-00101 G and shall be based

upon generally accepted and approved test methods and procedures.''

In 1977, that specification ceased being interim and is now known as

Federal Specification, Lamp, Incandescent (Electric, Large,

Tungsten-Filament) W-L-101H/GEN. This specification refers to

pertinent American National Standards Institute (``ANSI'') test

protocols, which are consistent with the Illuminating Engineering

Society of North America (``IES'') protocols that are cited in the

Appliance Labeling Rule, 16 CFR 305.5(b) (1996), as an acceptable

reasonable basis for determining the light output and life of

incandescent light bulbs. 59 FR at 25200 n.251.

\9\ 16 CFR 305.5(b) (1996). See also, supra note 8.

\10\ 59 FR at 25200.

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Both the Light Bulb Rule and the Appliance Labeling Rule contain

provisions concerning certain affirmative claims about lamp products.

The Appliance Labeling Rule requires that any label, printed material

prepared for display or distribution at the point of sale, or catalog

from which a covered lamp product may be ordered that contains an

operating cost claim clearly and conspicuously disclose, in close

proximity to the claim, the assumptions upon which the claim is based,

including, e.g., purchase price, unit cost of electricity, hours of

use, patterns of use. 16 CFR 305.11(e)(3), 305.13(a)(3), 305.14(c)(2)

(1996). These Appliance Labeling Rule disclosure requirements do not

apply to such claims made in other promotional materials, such as

advertisements.

The Light Bulb Rule covers claims that savings in either light bulb

cost or cost of light will result from the use of a particular light

bulb because of the bulb's life or light output. It also covers

comparative brightness, light bulb life, and light output claims. The

Light Bulb Rule specifies factors (e.g., labor costs for replacement,

light output, life) that, depending on the particular claim being made,

must be taken into consideration and clearly and conspicuously

disclosed, for both the light bulb being offered for sale and the

bulb(s) with which the comparison is being made. 16 CFR 409.1(c)

(1996). The Light Bulb Rule's requirements apply to such claims in all

types of advertising, as well as on labels, point-of-sale printed

materials, and catalogs. The Appliance Labeling Rule does not include

disclosure requirements concerning these comparative claims.

The Light Bulb Rule requires that light bulbs themselves be marked

clearly and conspicuously with wattage and design voltage. 16 CFR

409.1(b) (1996). The Appliance Labeling Rule does not require that lamp

products be marked with such information.

II. Proceeding To Consider Repeal of Light Bulb Rule

When the Commission issued the lamp labeling amendments to the

Appliance Labeling Rule, it announced that, although there were no

conflicts between the two rules, it would decide following that

amendment proceeding what further action, if any, it should take

concerning the Light Bulb Rule. 59 FR at 25177.

A. Advance Notice of Proposed Rulemaking

Accordingly, on April 6, 1995, the Commission published a notice

(``Advance Notice of Proposed Rulemaking'' or ``ANPR'') 11

requesting comments concerning the current need for the Light Bulb Rule

as part of the Commission's regulatory review program for all of its

rules and guides, and in light of the new lamp labeling rules under the

Appliance Labeling Rule.12 The ANPR solicited comments about the

benefits and burdens of the Light Bulb Rule to consumers and industry,

and whether a need still exists for the Light Bulb Rule.

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\11\ Under section 18(b)(2) of the Federal Trade Commission Act

(``FTC Act''), 15 U.S.C. 57a(b)(2), the Commission must publish an

ANPR prior to initiating a proceeding to promulgate, amend, or

repeal a trade regulation rule. The Commission determined to treat

the April 6, 1995, request for comments as an ANPR because it

contained all the elements that section 18(b)(2) requires in an

ANPR. To comply with section 18, the Commission submitted the notice

to the Chairman of the Committee on Commerce, Science, and

Transportation, United States Senate and the Chairman of the

Subcommittee on Commerce, Trade and Hazardous Materials, United

States House of Representatives.

\12\ 60 FR 17491. See supra note 11. The comment period for this

notice was scheduled to end on June 6, 1995, but was extended until

August 7, 1995, at the request of industry members.

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The Commission received nine comments in response to the

ANPR.13 Four comments were submitted by individual consumers, one

by an organization that purchases and uses light bulbs (``organization/

user comment''), three by lamp product manufacturers, and one by a

trade association that represents lamp product manufacturers.14

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\13\ Anderson, #B17240700001; Raeth, #B17240700002; Bowe,

#B17240700003; McGarry, #B17240700004; Hytron Electric Products, a

division of Trojan Inc. (``Hytron''), #B17240700005; Delta Phi

Epsilon, Washington, DC, #B17240700006 (``DPE''); Philips Lighting,

Philips Elmet, a division of North American Philips Corp.

(``Philips''), #B17240700007; GE Lighting, General Electric Co.

(``GE''), #B17240700008; and Lamp Section, NEMA, #B17240700009. The

ANPR is filed as document number B172407. The comments submitted in

response to the ANPR are filed as documents #B17240700001,

#B17240700002, etc.

\14\ The trade association, NEMA, is the largest U.S. trade

association representing manufacturers of products used in the

generation, transmission, distribution, control, and end-use of

electricity. Member companies in the Lamp Section of NEMA produce

more than 90% of general service incandescent and fluorescent lamp

products sold in the United States. NEMA Lamp Section members

include General Electric Lighting, Osram Sylvania, Inc., Philips

Lighting Co., Supreme Corp., Venture Lighting Internat'l, Duro-Test

Corp. and EYE Lighting International. NEMA, #B17240700009.

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The four individual consumer comments state that the Light Bulb

Rule is still needed because the disclosures required by the rule help

consumers make informed purchasing decisions.15 They want labels

to continue to disclose light output, wattage, and life information.

These comments do not address whether the overlapping requirements of

the Appliance Labeling Rule will ensure that labels provide consumers

with this information. The organization/user comment also opposes the

elimination of the Light Bulb Rule. It contends consumers would lose

valuable consumer protections that are only contained in the Light Bulb

Rule.16

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\15\ Anderson, #B17240700001 (rule very valuable to him as a

consumer; reads labels very closely, particularly as to lumens and

voltage; label information can be a safety factor since many

enclosed fixtures are rated for up to 60W but 75+W bulbs will fit

the same sockets); Raeth, #B17240700002 (eliminating the rule would

be a great disservice to the consumer, who would not know the value

of what he or she was purchasing); Bowe, #B17240700003 (maintain

rule requiring packages to show wattage, lumens, and bulb life;

consumers have a right to know what they are buying); and McGarry,

#B17240700004 (do not weaken the labeling requirements; uses

information to make comparative decisions when purchasing).

\16\ DPE, #B17240700006.

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Hytron, a manufacturer of extended-service, long-life incandescent

lamp products, including incandescent reflector lamps and traffic

signal lamps, supports keeping the Light Bulb Rule, and, instead,

eliminating the lamp labeling requirements of the Appliance Labeling

Rule.17 It appears that Hytron primarily objects to the Appliance

Labeling Rule because it requires labeling disclosures of incandescent

lamps at 120 volts regardless of the lamp's design voltage, and because

it requires the labeling of incandescent reflector lamps.18

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\17\ Hytron, #B17240700005.

\18\ The Commission does not have the authority to eliminate

these requirements from the Appliance Labeling Rule. EPCA requires

that labeling information for incandescent lamps under the Appliance

Labeling Rule be based on operation at 120 volts. 42 U.S.C.

6294(a)(2)(C)(i). EPCA also defines the lamp products, including

incandescent reflector lamps, that are to be covered by the lamp

labeling rules under the Appliance Labeling Rule. 42 U.S.C.

6291(30), 6294(a)(2)(C)(i).

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The comments from two manufacturers (Philips and GE) and the trade

association (NEMA) state that the Light Bulb Rule's disclosure

requirements of light output, wattage, and life for general service

incandescent light bulbs are unnecessary because of the uniform

disclosure requirements for various types of competing lamp products in

the Appliance Labeling Rule.19 They recommend that the

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Commission repeal all or most of the Light Bulb Rule to avoid

conflicts, multiple and overlapping requirements, and inconsistencies

with the disclosure requirements of the Appliance Labeling Rule.

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\19\ Philips, #B17240700007; GE, #B17240700008; and NEMA,

#B17240700009.

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GE recommends that the Commission repeal the entire Light Bulb

Rule.20 It believes the Appliance Labeling Rule's requirements are

better for today's modern products and consumers' information needs,

and for advancing the energy efficiency goals of our modern day

workplace. According to GE, retaining the Light Bulb Rule, in addition

to the Appliance Labeling Rule, is inefficient and exposes

manufacturers to a significant risk that they may fail to comply with

both rules. Further, although the Light Bulb Rule requires that light

bulbs be marked clearly and conspicuously with wattage and design

voltage and the Appliance Labeling Rule does not, GE believes that such

marking is a common industry practice that would not be affected by the

rescission of the Light Bulb Rule. It states that this is a ``sound

business practice that reduces liability and gives consumers important

information.'' Accordingly, GE marks many products that are not covered

by the Light Bulb Rule with wattage, and, as appropriate, with design

voltage.

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\20\ GE, #B17240700008.

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NEMA states that lamp product manufacturers should be subject to

only one set of lamp labeling and disclosure regulations, which would

ensure uniform disclosures of lamp product performance information to

consumers. NEMA believes that the Appliance Labeling Rule represents

the more comprehensive and modern approach to lamp labeling and that

the disclosures required under the Appliance Labeling Rule fully and

fairly inform consumers about lamp product performance.21 It

believes that the objectives of the Light Bulb Rule are fully served by

the disclosures required by the Appliance Labeling Rule. For these

reasons, NEMA recommends that the Commission repeal the Light Bulb Rule

and retain the Appliance Labeling Rule as the sole federal labeling and

disclosure requirements for lamp products.

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\21\ NEMA, #B17240700009.

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NEMA also believes that repealing the Light Bulb Rule would not

induce manufacturers to abandon their practice of inscribing wattage

and design voltage on incandescent lamps and wattage on fluorescent

lamps. NEMA states that manufacturers routinely mark their general

service incandescent and fluorescent lamps, even those for which such

marking is not required under federal labeling rules. Further, NEMA

states that an international safety standard issued by the

International Electrotechnical Commission (``IEC'') (IEC 432-1, 1993)

requires marking of wattage and voltage on general service incandescent

lamps. NEMA, therefore, believes that manufacturers generally would

continue the marking practices required by the Light Bulb Rule, even if

the Commission repealed the rule.

Philips strongly supports NEMA's position. Philips, however, also

states that the best alternative would be for the Commission to repeal

the Light Bulb Rule, and to modify the Appliance Labeling Rule to

include some of the disclosure requirements of Section 409.1(c) (which

requires disclosures in connection with product comparison claims about

lamp cost or cost of light), and Section 409.1(d) (which requires

disclosures in connection with claims that a light bulb will give more

light, maintain brightness longer or furnish longer life) of the Light

Bulb Rule.22 Philips believes that adding these disclosure

requirements would strengthen the Appliance Labeling Rule.

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\22\ Philips, #B17240700007.

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B. Notice of Proposed Rulemaking

The Commission compared the requirements of the Light Bulb Rule and

the Appliance Labeling Rule, analyzed the bases for both rules

explained in the Light Bulb Rule SBP and the Appliance Labeling Rule/

Lamps SBP, and reviewed the comments filed in response to the Light

Bulb Rule ANPR. Based on that comparison and review, the Commission

solicited comments in a Notice of Proposed Rulemaking (``NPR'') that

proposed repealing the Light Bulb Rule.23 In the NPR, the

Commission explained that the requirements of the two rules fall into

three categories: (1) basic disclosures of performance information

(e.g., light output, watts, and life); (2) substantiation testing for

these disclosures; and (3) additional disclosures that must be made in

conjunction with certain performance claims. The Commission also

summarized the comments submitted in response to the ANPR and explained

why the Commission believed there may not be a continuing need for the

Light Bulb Rule's requirements.

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\23\ 61 FR 4382 (Feb. 6, 1996). The NPR is filed as document

number B193867. The comments submitted in response to the NPR are

filed as documents #B19386700001, #B19386700002, etc. The comment

period closed on March 7, 1996.

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The Commission received five comments in response to the NPR (two

from manufacturers, two from distributors, and an additional comment

from NEMA).24 Four comments support repealing the Light Bulb

Rule.25 One comment recommends that the Commission repeal the lamp

labeling rules under the Appliance Labeling Rule.26

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\24\ In the NPR, the Commission indicated it would hold a

hearing to allow for the presentation of testimony on the issues, if

there was interest in a hearing. NEMA and GE requested an

opportunity to testify, but only if the Commission scheduled a

hearing because other parties requested one. NEMA, #B19386700004;

GE, #B191281, letters of March 7 and 14, 1996. Following the end of

the comment period, both NEMA and GE informed the Commission's staff

that they did not wish to testify because no additional parties

requested that the Commission conduct a hearing.

\25\ Supreme, #B19386700001; Robert M. Stone, Regosin, Edwards,

Stone & Feder (``Stone''), #B19386700002; Marvel Lighting Corp.

(``Marvel''), #B19386700003; NEMA, #B19386700004.

\26\ Sigmatron Biological Systems (``Sigmatron''),

#B19386700005. Because EPCA required the Commission to promulgate

the lamp labeling rules it adopted in the Appliance Labeling Rule,

the Commission does not have the authority to repeal those

requirements in favor of retaining the Light Bulb Rule. See also,

supra note 18.

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Supreme states that the new lamp labeling rules under the Appliance

Labeling Rule will provide users with the information they need to

understand what type of light bulb is in the package they are

purchasing. Supreme also states that its distributors are confused by

the amount of information on packages due to the requirements of both

rules and that it continuously must seek expensive legal advice about

how to prepare artwork and design to comply with both rules.27

Stone and Marvel request that the Commission repeal the Light Bulb Rule

because the overlapping requirements create confusion and

duplication.28

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\27\ Supreme, #B19386700001.

\28\ Stone, #B19386700002; Marvel, #B19386700003.

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NEMA states it supports repeal of the Light Bulb Rule and believes

that consumers' need for information is fully served by the disclosure

and substantiation requirements of the Appliance Labeling Rule.29

NEMA also addresses several specific issues the Commission raised in

the NPR. First, NEMA believes that because of the importance of safety

information to consumers (and to minimize their product liability)

manufacturers will continue marking wattage and design voltage on lamps

notwithstanding the repeal of the Light Bulb Rule. Second, NEMA

believes that the Light Bulb Rule's required disclosures relating to a

lamp's brightness are unnecessary because the Appliance Labeling Rule's

standardized, side-by-side disclosures of light output and life nullify

any attempts to mislead consumers about a

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product's maintaining brightness better than competing products. Third,

NEMA believes that the Appliance Labeling Rule's standardized labeling

disclosure requirements, along with its requirement that packaging

representations about the cost of operating a lamp be based on

assumptions that are clearly and conspicuously disclosed, provide

adequate information for consumers to evaluate comparative performance

claims.30 NEMA also states that repealing the Light Bulb Rule, and

relying exclusively on the Appliance Labeling Rule, will eliminate

overlaps and inconsistencies, confer benefits on consumers through

standardized package disclosures, and result in significant cost

savings for both manufacturers and consumers.

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\29\ NEMA, #B19386700004.

\30\ Further, NEMA states that the Appliance Labeling Rule's

labeling disclosures for competing lamp products make identification

of a comparison lamp under the Light Bulb Rule superfluous, and make

it unrealistic for a manufacturer or marketer to misrepresent or

distort a lamp's comparative performance in advertising and other

media, as well as on labels, point-of-sale promotional materials,

and catalogs. Id.

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III. Basis for Repeal of the Light Bulb Rule

The Commission has compared the requirements of the Light Bulb Rule

and the Appliance Labeling Rule and reviewed the comments filed in

response to the Light Bulb Rule ANPR and NPR. For the reasons explained

below, the Commission concludes that the Light Bulb Rule is no longer

necessary or in the public interest.

First, the requirements in the Light Bulb Rule that the basic

disclosures of light output, watts, and life be made on package labels

are unnecessary because they are duplicated by the Appliance Labeling

Rule. The Appliance Labeling Rule requires that this information also

be disclosed in catalogs from which the products can be ordered.

Further, it requires that these disclosures be made on labels and in

catalogs for competing medium screw base compact fluorescent lamps and

incandescent reflector lamps, as well as for light bulbs covered by the

Light Bulb Rule. These disclosures, in conjunction with the required

advisory statement about how consumers can select the most energy-

efficient lamp that meets their needs, give consumers the information

they need at the point of sale to select the appropriate lamp

product.31

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\31\ In addition, the Appliance Labeling Rule's format

requirements for the disclosure of basic performance data on labels

and in catalogs, 16 CFR 305.11(e)(1)(ii), 305.14(c)(1) (1996),

obviate the need for the specific type size and placement

requirements of the Light Bulb Rule for package labels, 16 CFR

409.1(a), 409.1 note 4 (1996).

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Second, the requirement in the Light Bulb Rule that manufacturers

mark bulbs with wattage and voltage information is unnecessary.

According to the comments, manufacturers currently mark various types

of lamp products voluntarily with wattage and design voltage

information so that consumers can use these lamp products safely. The

Commission believes that the marketplace will provide incentives for

manufacturers to continue marking this information on lamp products,

even after the Commission has repealed the Light Bulb Rule.

Third, the Light Bulb Rule's substantiation requirements are

unnecessary because these requirements are duplicated in the Appliance

Labeling Rule. The requirement in the Appliance Labeling Rule that the

basic disclosures be based on ``a reasonable basis consisting of

competent and reliable scientific tests substantiating the

representation'' is sufficient to ensure the accuracy and uniformity of

the disclosures for competing lamp products. Further, based on the

evidence in the rulemaking proceeding for the Appliance Labeling Rule,

it appears that the test protocols required by the Light Bulb Rule are

consistent with IES test protocols that the Appliance Labeling Rule

recognizes as sufficient to satisfy its reasonable basis standard for

the disclosures of light output and life.32 However, the Appliance

Labeling Rule provides manufacturers flexibility to use other

scientific test protocols if they are competent and reliable.

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\32\ 59 FR 25200.

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Fourth, the Light Bulb Rule's disclosure requirements for

comparison claims about savings in light bulb cost or cost of

operation, or claims that a light bulb will give more light, maintain

brightness longer, or furnish longer life are unnecessary. Through

different disclosure requirements the Appliance Labeling Rule allows

consumers to make informed, comparative decisions relating to costs.

Specifically:

(1) The Appliance Labeling Rule requires disclosure of light output

and life information in labels and catalogs. It requires that labels

and catalogs for incandescent ``A'' type bulbs, as well as for

competing medium screw base compact fluorescent lamps and incandescent

reflector lamps, disclose light output, wattage, and life, along with

an advisory statement about how the consumer can select the lamp

product that will cost the least to operate for a specific light

output. This information enables consumers to evaluate comparison light

output and lifetime claims for competing products at the point of sale

and to select the appropriate lamp that meets their needs.

(2) Under the Appliance Labeling Rule, claims about cost of

operation of a covered lamp product in labels, point-of-sale printed

materials, and catalogs must be accompanied by disclosures of the

assumptions on which the claims are based (e.g., purchase price, unit

cost of electricity, hours of use, patterns of use). These disclosures,

along with the advisory statement and the disclosures of light output,

wattage, and life, for competing lamp products on product labels and in

catalogs give consumers the information they need at the point of

purchase to evaluate comparison claims about savings in cost of

operation.

(3) Purchase price information is readily available to consumers at

the point of sale (both in retail stores and in catalogs). Thus,

consumers have information at the point of sale to evaluate comparison

claims about lamp product purchase costs.

(4) Unit electrical cost information is readily available to

consumers on their monthly electric utility bills or from their

electrical utility companies. Consumers can use this information, along

with the advisory statement and the disclosures of basic performance

information on packages and catalogs, to evaluate any comparison

operating cost claims.

Although the Appliance Labeling Rule does not contain disclosure

requirements similar to the Light Bulb Rule covering comparative claims

about brightness, length of life, or amount of light, the Commission

concludes that the Appliance Labeling Rule's requirements provide

consumers comparable information. The Appliance Labeling Rule's

requirements that labels disclose light output, energy used, and life,

and that labels, point-of-sale promotional materials, and catalogs that

contain a claim regarding cost of operation clearly and conspicuously

disclose the assumptions upon which the claim is based, provide

consumers comparable information they need to evaluate such claims and

make informed purchasing decisions. Further, the Commission can address

any significant problems that might arise in the future concerning

specific performance claims or a failure to disclose material purchase

information not covered by the Appliance Labeling Rule on a case-by-

case basis, administratively, under Section 5 of the FTC Act, 15 U.S.C.

45, or through Section 13(b) actions, 15 U.S.C. 53(b), filed in federal

district court. Prosecuting serious misrepresentations

[[Page 33313]]

and the failure to disclose material information in district court

allows the Commission to obtain injunctive relief as well as equitable

remedies, such as redress or disgorgement.

IV. Regulatory Flexibility Act

The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-11, requires

an analysis of the anticipated impact of the repeal of the Light Bulb

Rule on small businesses. The reasons for repeal of the rule have been

explained in this notice. Repeal of the Light Bulb Rule would appear to

have little or no effect on small businesses. Moreover, the Commission

is not aware of any existing federal laws or regulations that would

conflict with repeal of the Light Bulb Rule. Further, no comments

suggested any adverse effect on small business from repeal. For these

reasons, the Commission certifies, pursuant to Section 605 of the RFA,

5 U.S.C. 605, that this action will not have a significant economic

impact on a substantial number of small entities.

V. Paperwork Reduction Act

The Light Bulb Rule imposes third-party disclosure requirements

that constitute ``information collection requirements'' under the

Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Accordingly, repeal of

the Light Bulb Rule will eliminate any burdens imposed by these

disclosure requirements.

List of Subjects in 16 CFR Part 409

Advertising, Consumer protection, Energy conservation, Labeling,

Lamp products, Trade practices.

PART 409--[REMOVED]

The Commission, under authority of Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends chapter I of Title 16 of the Code

of Federal Regulations by removing Part 409.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 96-16301 Filed 6-26-96; 8:45 am]

BILLING CODE 6750-01-P