Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Rules and Regulations 9285 

7 16 CFR 405.4, https://www.ftc.gov/sites/default/ 

files/documents/federal_register_notices/traderegulation-rule-misbranding-and-deception-leathercontent-waist-belts-16-cfr-part-405/ 

960522traderegulationruleonmisbranding.pdf. 

8 16 CFR 231.3, https://www.ftc.gov/sites/default/ 

files/documents/federal_register_notices/guidesluggage-and-related-products-industry-guides-shoecontent-labeling-and-advertising-and-guides/ 

950918luggageandrelatedproducts.pdf. 

9 16 CFR 22.3, https://www.ftc.gov/sites/default/ 

files/documents/federal_register_notices/guideshosiery-industry-16-cfr-part-22/ 

960202hosieryindustry.pdf. 

10Energy Policy and Conservation Act, 42 U.S.C. 

6295. 

11See 16 CFR §§ 305.13 and 305.20 

12 Dissenting Statement of Commissioner 

Christine S. Wilson on the Notice of Proposed 

Rulemaking: Energy Labeling Rule (Dec. 10, 2018), 

https://www.ftc.gov/public-statements/2018/12/ 

dissenting-statement-commissioner-christine-swilson-notice-proposed; Dissenting Statement of 

Commissioner Christine S. Wilson on the Notice of 

Proposed Rulemaking: Energy Labeling Rule (Oct. 

22, 2019), https://www.ftc.gov/system/files/ 

documents/public_statements/1551786/r611004_

wilson_dissent_energy_labeling_rule.pdf. 

13See 81 FR 62861 (Sept. 12, 2016) (seeking 

comment on proposed amendments regarding 

portable air conditioners, ceiling fans, and electric 

water heaters); 84 FR 9261 (Mar. 14, 2019) 

(proposing amendments to organize the Rule’s 

product descriptions); 85 FR 20218 (Apr. 10, 2020) 

(seeking comment on proposed amendments 

regarding central and portable air conditioners). 

Waist Belts prescribed unlawful 

practices in connection with the sale of 

belts when not offered for sale as part 

of a garment. Among other things, the 

Rule prohibited the sale of belts that 

looked like leather, but that were made 

of split, ground, pulverized, or shredded 

leather or non-leather material, absent 

disclosures.7

• The Guides for Shoe Content 

Labeling and Advertising required 

leather, split leather, and concealed 

insoles ‘‘containing . . . non-leather 

material which are concealed from 

view, but which also contain other 

visible parts of leather,’’ to bear a label 

clearly disclosing the presence of the 

non-leather innersole.8

• The Hosiery Guides established that 

the term ‘‘long staple cotton’’ used to 

describe hosiery ‘‘is understood to mean 

cotton fiber which is not less than 1 1⁄8′′ 

in length of staple’’ and that the term 

‘‘lisle’’ represents hosiery ‘‘made of yarn 

composed of two or more ply of combed 

long staple cotton fiber.’’ 9

A federal statute mandated that the 

FTC promulgate the Energy Labeling 

Rule.10 The FTC must implement the 

will of Congress, but it need not adopt 

a prescriptive approach while doing so. 

Here, the FTC itself has chosen to 

specify the trim size dimensions for 

labels, including the precise width 

(between 51⁄4′′ to 5 1⁄2′′) and length 

(between 7 3⁄8′′ and 7 5⁄8′′); the number 

of picas for the copy set (between 27 

and 29); the type style (Arial) and 

setting; the weight of the paper stock on 

which the labels are printed (not less 

than 58 pounds per 500 sheets or 

equivalent); and a suggested minimum 

peel adhesive capacity of 12 ounces per 

square inch.11 I urged the Commission 

take the opportunity to review these 

detailed labeling requirements in 2018, 

and again in 2019, when the 

Commission sought comment and 

revised other sections of this Rule.12

The Commission last conducted a full 

review of the Energy Labeling Rule in 

2015; under our 10-year regulatory 

schedule, the next review is scheduled 

for 2025. However, since 2015, the 

Commission has sought comment on 

provisions of this Rule at least three 

times, including the current proceeding, 

and has made numerous amendments.13

This piecemeal approach has clarified 

the Rule’s requirements—and I 

appreciate FTC staff’s efforts to keep 

this Rule clear and current—but the 

Commission can and should do more. 

Specifically, the Commission should 

conduct a full review of the Rule to 

consider removing all dated and 

prescriptive provisions, and to consider 

the recent comments suggesting 

changes. Nothing prevents the 

Commission from conducting this 

review now—we do not have to wait 

until the 10-year anniversary. I urge the 

Commission to act on these comments, 

eliminate the more prescriptive aspects 

of the Rule, and maximize the positive 

impact of this Rule for consumers. If we 

are statutorily mandated to maintain 

this Rule, we should endeavor to make 

it beneficial for consumers and 

competition. 

[FR Doc. 2020–28880 Filed 2–11–21; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9933] 

RIN 1545–BO79 

Unrelated Business Taxable Income 

Separately Computed for Each Trade 

or Business; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final rule; correction. 

SUMMARY: This document contains 

corrections to the final regulations 

(Treasury Decision 9933) that published 

in the Federal Register on Wednesday, 

December 2, 2020. The final regulations 

provide guidance on how an exempt 

organization subject to the unrelated 

business income tax determines if it has 

more than one unrelated trade or 

business, and, if so, how the exempt 

organization calculates unrelated 

business taxable income. 

DATES: These corrections are effective 

on February 12, 2021 and are applicable 

on December 2, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan A. Carter at (202) 317–5800 or 

Stephanie N. Robbins at (202) 317–4086 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9933) that 

are the subject of this correction are 

issued under section 512 of the Internal 

Revenue Code. 

Need for Correction 

As published the final regulations (TD 

9933) contain errors that needs to be 

corrected. 

Correction of Publication 

Accordingly, the final regulations (TD 

9933), that are the subject of FR Doc. 

2020–25954, published on December 2, 

2020 (85 FR 77952), are corrected to 

read as follows: 

1. On page 77952, the third column, 

the seventeenth line from the top of the 

second full paragraph, the language 

‘‘balances legislative’’ is corrected to 

read ‘‘balances the legislative’’. 

2. On page 77954, the third column, 

the first line of the first full paragraph, 

the language ‘‘Because the NAICS’’ is 

corrected to read ‘‘Because NAICS’’. 

3. On page 77961, the second column, 

the third line from the bottom of the 

first partial paragraph, the language 

‘‘rule’’ is corrected to read ‘‘test’’. 

4. On page 77964, the second column, 

removing the language ‘‘of the 

supported organization’’ from the third 

and fourth lines from the bottom of the 

last full paragraph. 

5. On page 77964, the third column, 

the second line from the bottom of the 

last partial paragraph, the language 

‘‘Accordingly, the’’ is corrected to read 

‘‘The’’. 

6. On page 77965, the second column, 

the thirteenth line from the top of the 

first partial paragraph, the language 

‘‘owns interest’’ is corrected to read 

‘‘owns the interest’’. 

7. On page 77965, the third column, 

the third line from the bottom of the 

first full paragraph, the language ‘‘E.O.;’’ 

is corrected to read ‘‘exempt 

organization’’. 

8. On page 77967, the second column, 

the fifth line from the bottom of the first 

9286 Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Rules and Regulations 

partial paragraph, the language 

‘‘Accordingly,’’ is corrected to read 

‘‘Therefore,’’. 

9. On page 77968, the first column, 

the first full paragraph of the first and 

second sentences, the language 

‘‘Furthermore, allowing an exempt 

organization to elect to treat the debtfinanced income as part of a 2-digit 

NAICS code, instead of including such 

income as part of an organization’s 

investment activities, would not reduce 

the burden upon the exempt 

organization or the burden on the IRS. 

Such income would still need to be 

identified as debt-financed income and 

an additional determination of the 

underlying activity would also need to 

be made to determine a 2-digit NAICS 

code.’’ is corrected to read 

‘‘Furthermore, allowing an exempt 

organization to elect to treat the debtfinanced income as part of a NAICS 2- 

digit code, instead of including such 

income as part of an organization’s 

investment activities, would not reduce 

the burden on the exempt organization 

or the burden on the IRS. Such income 

would still need to be identified as debtfinanced income and an additional 

determination of the underlying activity 

would also need to be made to 

determine a NAICS 2-digit code.’’ 

10. On page 77968, the second 

column, the fourth line from the bottom 

of the last partial paragraph, the 

language ‘‘(Form 1120S)’’ is corrected to 

read ‘‘(Form1120–S)’’. 

11. On page 77968, the third column, 

the fourth line from the bottom of the 

first paragraph, the language ‘‘1120S) is 

needed’’ is corrected to read ‘‘1120–S) is 

necessary’’. 

12. On page 77970, the third column, 

the tenth line from the top of the first 

full paragraph, the language ‘‘describe’’ 

is corrected to read ‘‘described’’. 

13. On page 77971, the first column, 

the fifth and sixth line from the top of 

the first full paragraph, the language 

‘‘Hospitality’’ is corrected to read ‘‘the 

Hospitality’’ and ‘‘and Club’’ is 

corrected to read ‘‘and the Club’’. 

14. On page 77971, the third column, 

removing the language, ‘‘in the 

proposed regulations’’ in the third and 

fourth line from the top of the partial 

paragraph. 

15. On page 77972, the third column, 

the second line of the second paragraph, 

the language ‘‘an organization’’ is 

corrected to read ‘‘an exempt 

organization’’. 

16. On page 77978, the first column, 

the third line from the top of the last 

partial paragraph, the language ‘‘rules 

are’’ is corrected to read ‘‘rules is’’. 

Crystal Pemberton, 

Senior Federal Register Liaison, Publications 

and Regulations Branch, Legal Processing 

Division, Associate Chief Counsel (Procedure 

and Administration). 

Editorial note: This document was 

received for publication by the Office of the 

Federal Register on January 6, 2021. 

[FR Doc. 2021–00342 Filed 2–11–21; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9933] 

RIN 1545–BO79 

Unrelated Business Taxable Income 

Separately Computed for Each Trade 

or Business; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains 

corrections to the final regulations 

(Treasury Decision 9933) that published 

in the Federal Register on Wednesday, 

December 2, 2020. The final regulations 

provide guidance on how an exempt 

organization subject to the unrelated 

business income tax determines if it has 

more than one unrelated trade or 

business, and, if so, how the exempt 

organization calculates unrelated 

business taxable income. 

DATES: These corrections are effective 

on February 12, 2021 and are applicable 

on December 2, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan A. Carter at (202) 317–5800 or 

Stephanie N. Robbins at (202) 317–4086 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9933) that 

are the subject of this correction are 

issued under section 512 of the Internal 

Revenue Code. 

Need for Correction 

As published on December 2, 2020 

(85 FR 77952), the final regulations (TD 

9933) contain errors that needs to be 

corrected. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

§ 1.512(a)–6 [Amended] 

■ Par. 2. Section 1.512(a)–6 is amended: 

■ a. In paragraph (a)(3)(i) by adding a 

semicolon after the word ‘‘year’’. 

■ b. In the third sentence of paragraph 

(h)(2) by removing the language ‘‘trade 

or business’’ and adding in its place 

‘‘trades or businesses’’. 

Crystal Pemberton, 

Senior Federal Register Liaison, Legal 

Processing Division, Associate Chief Counsel, 

(Procedure and Administration). 

Editorial Note: This document was 

received for publication by the Office of the 

Federal Register on January 6, 2021. 

[FR Doc. 2021–00341 Filed 2–11–21; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE INTERIOR 

Office of Natural Resources Revenue 

30 CFR Parts 1206 and 1241 

[Docket No. ONRR–2020–0001; DS63644000 

DRT000000.CH7000 212D1113RT] 

RIN 1012–AA27 

ONRR 2020 Valuation Reform and Civil 

Penalty Rule: Delay of Effective Date; 

Request for Public Comment 

AGENCY: Office of Natural Resources 

Revenue (‘‘ONRR’’), Interior. 

ACTION: Final rule; delay of effective 

date and opening of comment period. 

SUMMARY: In accordance with the 

January 20, 2021 White House 

Memorandum on Regulatory Freeze 

Pending Review and the Office of 

Management and Budget Memorandum 

M–21–14 of the same date, this action 

delays the effective date of the final rule 

entitled ‘‘ONRR 2020 Valuation Reform 

and Civil Penalty Rule’’ that published 

in the Federal Register on January 15, 

2021 (‘‘2020 Rule’’). In addition, this 

action opens a 30-day comment period 

to allow interested parties to comment 

on the impact of the delay to the 2020 

Rule’s effective date as well as issues of 

fact, law, and policy raised by that rule. 

DATES: Effective date: This action is 

effective February 12, 2021. The