Request for Comments Concerning Rule Relating To Power Output Claims for Amplifiers Utilized in Home Entertainment Products

SUMMARY: The Federal Trade Commission (``Commission'') is requesting

public comments on its Rule relating to Power Output claims for

Amplifiers Utilized in Home Entertainment Products (``Amplifier Rule''

or ``Rule''). The Commission, as a part of its systematic review of all

current Commission regulations and guides, is requesting comments about

the overall costs and benefits of the Rule and its overall regulatory

and economic impact. The Commission further seeks information about

whether certain requirements of the Rule should be modified in light of

technological and other changed circumstances. Lastly, the Commission

requests information about issues involving amplified sound systems

such as powered speakers for home computers and other home sound

systems and sound amplifiers utilized in automobile entertainment

products.

DATES: Written comments will be accepted until June 6, 1997.

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

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

DC 20580. Comments about the Amplifier Rule should be identified ``16

CFR Part 432--Comments.''

FOR FURTHER INFORMATION CONTACT: Robert E. Easton, Esq., Special

Assistant, Division of Enforcement, Bureau of Consumer Protection,

(202) 326-3029 or Dennis Murphy, Economist, Division of Consumer

Protection, Bureau of Economics, Federal Trade Commission, Washington,

DC 20580, (202) 326-3524.

SUPPLEMENTARY INFORMATION: The Commission has determined, as part of

its oversight responsibilities, to review its rules and guides

periodically. These reviews seek information about the costs and

benefits of the Commission's rules and guides and their regulatory and

economic impact. The reviews also seek information on whether

technological developments impact upon the rules. The information

obtained assists the Commission in identifying rules and guides that

warrant modification or rescission.

A. Background

The Amplifier Rule was promulgated on May 3, 1974 (39 FR 15387), to

assist consumers in purchasing power amplification equipment for home

entertainment purposes by standardizing the measurement and disclosure

of various performance characteristics of the equipment. Prior to the

Rule, sellers were making power, distortion and other performance

claims based on many different technical test procedures, or on no

recognized test procedures. The Rule establishes uniform test standards

and disclosures so that consumers can make more meaningful comparisons

of performance attributes.

The products within the scope of the Rule are defined as:

Sound power amplification equipment manufactured or sold for

home entertainment purposes, such as for example, radios, record and

tape players, radio-phonograph and/or tape combinations, component

audio amplifiers and the like.\1\

\1\ 16 CFR 432.1.

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The Rule makes it an unfair method of competition and an unfair or

deceptive act or practice for manufacturers and sellers of sound power

amplification equipment for home entertainment purposes to fail to

disclose certain performance information in connection with direct or

indirect representations of power output, power band, frequency or

distortion characteristics.\2\

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\2\ Id. at 432.2. The required disclosures relate to: Minimum

sine wave continuous average power output; load impedance in Ohms;

rated power band or frequency response; and rated percentage of

maximum total harmonic distortion.

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These disclosures must be made clearly, conspicuously and more

prominently than any other representation or disclosures.\3\ The Rule

also sets out standard test conditions for performing the measurements

that support the required performance disclosures.\4\ Further, the Rule

prohibits representations of performance characteristics if they are

not obtainable when the equipment is operated by the consumer in the

usual and ordinary manner without the use of extraneous aids,\5\ e.g.,

cooling fans.

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\3\ Id.

\4\ Id. at 432.3.

\5\ Id. at 432.5.

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When the Rule was promulgated in 1974, there were very few self-

amplified (powered) speakers for use with home computers or home

entertainment systems or external amplifiers for home computers used

for home entertainment purposes. In 1997, however, there are numerous

and sophisticated systems of this nature. The Commission has

tentatively determined that while such systems are not specifically

mentioned in the Rule, such amplified (powered) speakers and other

similar sound amplification equipment when used for home entertainment

purposes are within the scope and purpose of the Rule. The Commission

has further tentatively determined that such equipment falls within the

definition used in the Rule and is sufficiently similar to the examples

given in the Rule as to alert manufacturers and sellers of the

coverage. The Commission, however, seeks additional information

concerning its tentative determinations, and addresses several

questions below to these issues.

In 1974, amplified sound systems for automotive use were also in

the formative stages of development. By 1997, such automotive amplified

sound systems achieved a stage of technical sophistication on a par

with many home entertainment sound amplification systems. Advertising

for automotive sound amplification systems in recent years has often

referred to the claimed power output (in watts) of the system using a

variety of terms, including ``Peak Power,'' ``Total Power,'' and

``RMS.'' Because the Commission wishes to learn whether the non-uniform

disclosure of power output is resulting in consumer deception,

confusion, and inability to make informed decisions, the Commission

addresses several questions below to this issue.

[[Page 16501]]

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?

(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) The following questions relate to Sec. 432.3 of the Rule, which

specifies standard test conditions for measuring continuous power:

(a) Are there other widely used protocols for testing continuous

power that could provide a satisfactory alternative to the Sec. 432.2

requirements?

(b) Given the problems that manufactures may experience with the

test specifications in Sec. 432.3(c) requiring that amplifiers be

preconditioned for one hour at one-third power, should there be any

modifications to Sec. 432.3(c)?

(8) The Rule currently requires disclosure of maximum harmonic

distortion, power bandwidth, and impedance whenever a power claim is

made in any advertising, including advertising by retail stores, direct

mail merchants, and manufacturers.

(a) Is there a continued need for the Rule to require disclosure of

maximum rated harmonic distortion in media advertising, or should such

disclosure be required only when maximum rated harmonic distortion

exceeds a specified threshold level, such as one percent?

(b) Should certain types of advertising, such as that commonly used

by retail stores to present information on prices and basic features

for numerous models of amplification equipment in a limited amount of

print space, be exempted from some or all of the power bandwidth,

distortion, and impedance disclosures?

(c) If so, what developments have occurred that make these

disclosures no longer necessary in such advertising?

(d) If so, which of these disclosures should be exempted from such

advertising and why?

(e) Should any such exemptions be extended to advertising by direct

mail resellers, who would not have retail outlets where consumers could

obtain more detailed pre-purchase information on amplifier

specifications?

(9) The Rule currently governs power output claims relating to

``sound power amplification equipment manufactured or sold for home

entertainment purposes. . . .'' The Commission has tentatively

concluded that the Rule covers (A) self-powered speakers for use with

(i) home computers, (ii) home sound systems, and (iii) home multimedia

systems; and (B) other sound power amplification equipment for home

computers.

(a) Are there any reasons why power output claims for such

equipment should be considered outside the scope of the Rule? If so,

please explain.

(b) Are manufacturers and distributors of these products aware that

these products are, as the Commission has tentatively determined,

within the scope of the Rule? If not, is there a need for the

Commission to undertake business and consumer education efforts to

publicize the coverage?

(c) Are the standard test conditions set out in the Rule

appropriate for such equipment?

(10) Current promotional materials and labeling for self-powered

speakers and other sound amplification equipment for home computers

systems contain power output claims expressed in a variety of terms,

including ``Peak Power,'' ``Peak Music Output Power,'' ``Total Power,''

and ``RMS'' power.

(a) What test protocols provide the basis for each of these power

measurements?

(b) How do power ratings obtained using these protocols compare

with the power rating that would be obtained using the FTC continuous

power output protocol?

(c) Do power output claims in promotional material and labeling for

such self-powered computer speakers rely on measurement methods other

than those listed above?

(d) How do any such power claims under (c) above compare with the

corresponding FTC power output rating?

(11) The Rule governs sound amplification equipment intended for

home entertainment purposes. Thus, the Rule does not apply to

automotive sound amplification products. Current promotional materials

and labeling for automotive sound amplification equipment contain power

output claims expressed in a variety of terms, including ``Peak

Power,'' ``Total Power,'' and ``RMS'' power.

(a) What test protocols provide the basis for each of these power

measurements?

(b) How do power ratings obtained using these protocols compare

with the power rating that would be obtained using the FTC continuous

power output protocol?

(c) Do power output claims in promotional material and labeling for

automotive stereo equipment rely on measurement methods other than

those listed above?

(d) How do any such power claims under (c) above compare with the

corresponding FTC power output rating?

(e) Do any of the sound power claims being made in connection with

the sale and advertising of automotive sound amplification products

inhibit meaningful comparisons of performance attributes by consumers?

If so, please: (i) Identify any such claims and furnish copies of

advertising and other material containing such claims, and (ii) supply

information establishing how prevalent such claims are (i.e., how

widespread and serious the problem is).

(f) If there is a need to take action to increase the ability of

consumers to make meaningful comparisons of performance characteristics

for automotive sound amplification products, what is the most

appropriate vehicle for accomplishing this goal (e.g., voluntary

industry standards, consumer education, business education, industry/

government public workshops, amending the Amplifier Rule, etc.)?

(g) Regardless of the method favored to improve consumers' ability

to compare performance characteristics, would any of the Rule's current

testing or disclosure requirements for home sound amplification

products have to be modified for use with automotive sound

amplification products due to any differences in technology, marketing

considerations, or other reasons?

List of Subjects in 16 CFR Part 432

Amplifiers; Home entertainment products; Trade practices.

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

[[Page 16502]]

By Direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 97-8795 Filed 4-4-97; 8:45 am]

BILLING CODE 6750-01-M