FOR IMMEDIATE RELEASE:  June 13, 1988


    FTC INITIATES RULEMAKING PROCEEDING TO CONSIDER AMENDING
      ITS APPLIANCE LABELING RULE; REQUESTS PUBLIC COMMENT

      FTC Also Completes Regulatory Flexibility Act Review

     The Federal Trade Commission today announced it is
initiating a rulemaking proceeding to consider amendments to its
appliance labeling rule.  The Commission also announced it has
completed its Regulatory Flexibility Act review of the rule, and
concluded that no changes in the rule are necessary under the Act
at this time.
     The rule, which became effective in 1980, requires that
manufacturers of certain appliances disclose energy use
information, including energy costs and energy-efficiency data,
on labels, fact sheets, or directories.  The Commission said it
is initiating the  proceeding because it has received suggestions
about possible modifications and improvements to the rule.
     The Commission is proposing two amendments to the rule.
First, the Commission proposes modifying the format for
manufacturers to use in providing energy information for
furnaces.  Under the modification, furnace manufacturers would
use the same format for disclosing energy use information that
the Commission recently adopted for central air conditioners.
Under the change, labels on furnaces would contain specific
energy efficiency information, and would direct consumers to fact
sheets or to an industry-published directory that would contain
energy efficiency and cost information.
     Second, the Commission proposes amending the rule to require
"generic" ranges of energy efficiency that would cover the energy
efficiencies of all room air conditioners, rather than the 35
separate ranges now required.  According to the Commission, the
paperwork burden associated with labeling these products should
be reduced significantly under this amendment.
     The Commission welcomes comments on any issue relating to
the rule in addition to comments on the two proposed amendments,
and is seeking comments on some specific issues, including:


     --  whether the Commission should modify the requirement
         that manufacturers of certain categories of appliances
         provide energy use information using an estimated annual
         dollar cost of operation;

     --  whether some product categories, such as room air
         conditioners, are too general, and whether the rule
         should be modified to include sub-categories, such as
         window units and built-in units; and

     --  whether any of the products now covered by the rule
         should be exempted in light of recently enacted federal
         minimum efficiency standards, and whether certain
         unvented heaters should be added.

The Commission is also asking for comments on label adhesion
strength, a directory option for water heaters, and labeling of
display models only.

                             (More)
     Written comments on the proposed amendments must be
submitted by July 28.  The comments should be identified as
"Appliance Labeling."  If possible, five copies of the comments
should be  submitted.  Anyone desiring a public hearing on the
proposed amendments should advise the Presiding Officer by July
13.  If hearings are scheduled, information about them will be
announced at a later date.
     Comments and requests for public hearings should be
submitted to Henry B. Cabell, Presiding Officer, Federal Trade
Commission, 6th St. and Pennsylvania Ave. N.W., Washington, D.C.
20580.
     The FTC has also completed its review of the appliance
labeling rule under the Regulatory Flexibility Act, and concluded
that no changes are necessary under the act at this time.
According to the Commission, there is an insufficient basis to
conclude that the rule has had a significant economic impact on a
substantial number of small businesses.
     Two Federal Register notices, one containing the notice of
proposed rulemaking, and the other announcing the completion of
the Regulatory Flexibility Act review, are scheduled to be
published today.  Copies of the notices are available from the
FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania
Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-
2502.

                              # # #


MEDIA CONTACT:  Dee Ellison, Office of Public Affairs, 202-326-
     2177

STAFF CONTACT:  James Mills, Bureau of Consumer Protection, 202-
     326-3035

[AppLabAmen]