[Federal Register Volume 85, Number 244 (Friday, December 18, 2020)]
[Proposed Rules]
[Pages 82391-82393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27569]


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FEDERAL TRADE COMMISSION

16 CFR Part 432


Trade Regulation Rule Relating to Power Output Claims for 
Amplifiers Utilized in Home Entertainment Products

AGENCY: Federal Trade Commission.

ACTION: Advance notice of proposed rulemaking; request for public 
comment.

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SUMMARY: As part of the Commission's systematic review of all current 
FTC rules and guides, the Federal Trade Commission (``FTC'' or 
``Commission'') requests public comment on the overall costs, benefits, 
necessity, and regulatory and economic impact of the FTC's Trade 
Regulation Rule Relating to Power Output Claims for Amplifiers Utilized 
in Home Entertainment Products (the ``Amplifier Rule'' or ``Rule'').

DATES: Comments must be received on or before February 16, 2021.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Amplifier Rule Review, 
16 CFR part 432, Project No. P974222'' on your comment, and file your 
comment online through https://www.regulations.gov. If you prefer to 
file your comment on paper, mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW, Suite CC-5610 (Annex A), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, 
Suite 5610 (Annex A), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Jock Chung (202-326-2984), Attorney, 
Division of Enforcement, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.

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SUPPLEMENTARY INFORMATION:

I. Background

    In response to misleading or confusing power, distortion, and other 
performance claims, the Commission issued the Amplifier Rule in 1974 to 
standardize the measurement and disclosure of various amplifier 
performance characteristics. 39 FR 15387 (May 3, 1974). The Rule 
establishes uniform test standards and disclosures so consumers can 
easily compare amplifier characteristics.
    Prior to enactment of the Amplifier Rule, manufacturers used at 
least seven different systems to measure amplifier output, including 
two incompatible measurement systems with broad industry support, the 
EIA Standard Methods of Measurement and the IHF Standard.\1\ At that 
time, the same amplifier might have been advertised with different 
power ratings when incorporated into different products.\2\
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    \1\ The Electronics Industries Association, an industry group 
with approximately 240 member companies in 1974, created the EIA 
Standard Methods of Measurement. The IHF, an industry group with 37 
member companies, created the IHF Standard. 39 FR at 15388.
    \2\ The Commission found that one amplifier was reported as 
advertised with 3 power ratings based on continuous power output and 
1 percent distortion when included in a component system, and with a 
peak power rating with 5 percent distortion when included in a 
console system.
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    Moreover, prior to enactment of the Rule, some manufacturers 
advertised the maximum power output of a single channel of a stereo 
amplifier. The Commission found that this practice deceptively 
indicated a stereo amplifier powered both stereo channels at that level 
simultaneously, which was not necessarily true.\3\ Manufacturers also 
measured power outputs over short periods of time, which did not 
account for heat buildup that prevented the amplifiers from being used 
at the measured output power for longer periods. Additionally, some 
manufacturers inflated power outputs by measuring amplifier outputs 
over limited frequency ranges or with excessive distortion, with 
unrealistic speaker loads, or when operating on battery power.\4\
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    \3\ The Commission found that ``a stereo having, for example, 
20-watts per channel, both channels driven, will give less total 
power output than a single channel 40-watt amplifier.'' 39 FR at 
15390.
    \4\ Amplifiers running on batteries might have less distortion 
than the same amplifier running on power from an electric outlet, so 
tests driving the amplifier to a rated distortion level under 
battery power might measure a higher power output than measurements 
for the same amplifier driven to the same distortion level under 
outlet power. 39 FR at 15393.
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    To address these issues, the Rule requires uniform measurements and 
disclosures for home entertainment amplifiers. Specifically, it 
requires manufacturers to fully drive all associated channels when 
measuring the power output of sound amplification equipment designed to 
amplify two or more channels simultaneously. The Rule further sets 
requirements for measuring and disclosing frequency ranges, distortion 
levels, and speaker loads; requires manufacturers to conduct 
measurements in still air at a specified temperature to prevent the use 
of fans or cooling equipment; and requires manufacturers to use outlet 
power to test amplifiers that can run on either batteries or outlet 
power.
    In 2000, in response to improvements in amplifier design that 
enabled manufacturers to make inexpensive amplifiers with inaudible 
levels of harmonic distortion, the Commission exempted certain 
advertising from the Rule's Total Harmonic Distortion (THD) disclosure 
requirement. 65 FR 81232 (Dec. 22, 2000). Additionally, to address the 
development of self-powered subwoofer-satellite combination speaker 
systems, the Commission clarified the manner in which the Rule's 
testing procedures apply to those systems.

II. Regulatory Review Program

    The Commission reviews its rules and guides periodically to seek 
information about their costs and benefits, regulatory and economic 
impact, and general effectiveness in protecting consumers and helping 
industry avoid deceptive claims or unfair practices. These reviews 
assist the Commission in identifying rules and guides that warrant 
modification or rescission.
    With the present document, the Commission initiates a review of its 
Amplifier Rule. The Commission solicits comments on, among other 
things, the economic impact of, and the continuing need for, the Rule; 
the Rule's benefits to consumers; and the burdens it places on industry 
members subject to the requirements, including small businesses.

III. Issues for Comments

    To aid commenters in submitting information, the Commission has 
prepared the following questions related to the Amplifier Rule. The 
Commission seeks comments on these and any other issues related to the 
Rule's current requirements. In their replies, commenters should 
provide any available evidence, including empirical analysis, that 
supports their position.
    (1) Need: Is there a continuing need for the Rule? Why or why not?
    (2) Benefits and Costs to Consumers: What benefits has the Rule 
provided to consumers, and does the Rule impose any significant costs 
on consumers? Please quantify these benefits and costs wherever 
possible.
    (3) Benefits and Costs to Industry Members: What benefits, if any, 
has the Rule provided to businesses, and does the Rule impose any 
significant costs, including costs of compliance, on businesses, 
including small businesses? Please quantify these benefits and costs 
wherever possible.
    (4) Recommended Changes: What modifications, if any, should the 
Commission make to the Rule to increase its benefits or reduce its 
costs? How would these modifications affect the costs and benefits of 
the Rule for consumers? How would these modifications affect the costs 
and benefits of the Rule for businesses, particularly small businesses?
    (5) Impact on Information: What impact has the Rule had on the flow 
of truthful information to consumers and on the flow of deceptive 
information to consumers?
    (6) Compliance: Provide any evidence concerning the degree of 
industry compliance with the Rule. Does this evidence indicate that the 
Rule should be modified? If so, why, and how? If not, why not?
    (7) Unnecessary Provisions: Provide any evidence concerning whether 
any of the Rule's provisions are no longer necessary. Explain why these 
provisions are unnecessary.
    (8) Additional Unfair or Deceptive Practices: What potentially 
unfair or deceptive practices, not covered by the Rule, related to 
amplifiers utilized in home entertainment products are occurring in the 
marketplace? Are such practices prevalent in the market? If so, please 
describe such practices, including their impact on consumers. Provide 
any evidence, such as empirical data, consumer perception studies, or 
consumer complaints, that demonstrates the extent of such practices. 
Provide any evidence that demonstrates whether such practices cause 
consumer injury, and quantify or estimate that injury if possible. With 
reference to such practices, should the Rule be modified? If so, why, 
and how? If not, why not?
    (9) Product Coverage: Should the Commission broaden the Rule to 
include products not currently covered? Provide any evidence that 
supports your position. What potentially unfair or deceptive practices 
related to products not covered by the Rule are occurring in the 
marketplace? Are such practices prevalent in the market? If so, please 
describe such practices, including their impact on consumers. Provide 
any evidence, such as empirical data,

[[Page 82393]]

consumer perception studies, or consumer complaints, that demonstrates 
the extent of such practices. Provide any evidence that demonstrates 
whether such practices cause consumer injury, and quantify or estimate 
that injury if possible.
    (10) Technological or Economic Changes: What modifications, if any, 
should be made to the Rule to account for current or impending changes 
in technology or economic conditions? How would these modifications 
affect the costs and benefits of the Rule for consumers and businesses, 
particularly small businesses?
    (11) Conflicts With Other Requirements: Does the Rule overlap or 
conflict with other federal, state, or local laws or regulations? If 
so, how? Provide any evidence that supports your position. With 
reference to the asserted conflicts, should the Rule be modified? If 
so, why, and how? If not, why not? Are there any Rule changes necessary 
to help state law enforcement agencies combat deceptive practices in 
the market for amplifiers utilized in home entertainment products? 
Provide any evidence concerning whether the Rule has assisted in 
promoting national consistency with respect to the advertising of 
amplifiers utilized in home entertainment products.

IV. Comment Submissions

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before February 16, 
2021. Include ``Amplifier Rule Review, 16 CFR part 432, Project No. 
P974222'' on your comment. Your comment, including your name and your 
state, will be placed on the public record of this proceeding, 
including, to the extent practicable, on the https://www.regulations.gov website.
    Because of the public health emergency in response to the COVID-19 
outbreak and the agency's heightened security screening, postal mail 
addressed to the Commission will be subject to delay. We strongly 
encourage you to submit your comment online through the https://www.regulations.gov website. To ensure the Commission considers your 
online comment, please follow the instructions on the web-based form.
    If you file your comment on paper, write ``Amplifier Rule Review, 
16 CFR part 432, Project No. P974222'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite 
CC-5610 (Annex A), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610, 
Washington, DC 20024. If possible, please submit your paper comment to 
the Commission by courier or overnight service.
    Because your comment will be placed on the publicly accessible 
website, https://www.regulations.gov, you are solely responsible for 
making sure that your comment does not include any sensitive or 
confidential information. In particular, your comment should not 
include any sensitive personal information such as your or anyone's 
Social Security number, date of birth, driver's license number or other 
state identification number or foreign country equivalent, passport 
number, financial account number, or credit or debit card number. You 
are also solely responsible for making sure that your comment does not 
include any sensitive health information, such as medical records or 
other individually identifiable health information. In addition, your 
comment should not include any ``[t]rade secret or any commercial or 
financial information which . . . is privileged or confidential''--as 
provided in section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2)--including in particular competitively 
sensitive information such as costs, sales statistics, inventories, 
formulas, patterns, devices, manufacturing processes, or customer 
names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted publicly at www.regulations.gov--as legally required by FTC 
Rule 4.9(b)--we cannot redact or remove your comment, unless you submit 
a confidentiality request that meets the requirements for such 
treatment under FTC Rule 4.9(c), and the General Counsel grants that 
request.
    Visit the FTC website to read this request for comment and the news 
release describing it. The FTC Act and other laws that the Commission 
administers permit the collection of public comments to consider and 
use in this proceeding as appropriate. The Commission will consider all 
timely and responsive public comments that it receives on or before 
February 16, 2021. For information on the Commission's privacy policy, 
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

    By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020-27569 Filed 12-17-20; 8:45 am]
BILLING CODE 6750-01-P