[Federal Register Volume 72, Number 89 (Wednesday, May 9, 2007)]
[Proposed Rules]
[Pages 26328-26329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8886]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / 
Proposed Rules

[[Page 26328]]



FEDERAL TRADE COMMISSION

16 CFR Part 259


Guide Concerning Fuel Economy Advertising for New Automobiles

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

-----------------------------------------------------------------------

SUMMARY: As part of the Commission's systematic review of all current 
FTC rules and guides, the Commission requests public comment on the 
overall costs, benefits, necessity, and regulatory and economic impact 
of the FTC's Guide Concerning Fuel Economy Advertising for New 
Automobiles (``Fuel Economy Guide'' or ``Guide''). The Commission is 
also seeking comments on whether the Guide should be amended in light 
of recent amendments to the Environmental Protection Agency's (``EPA'') 
fuel economy labeling rules for new automobiles.

DATES: Written comments will be accepted until July 23, 2007.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Fuel Economy Guide Review, Matter No. 
R711008'' to facilitate the organization of comments. A comment filed 
in paper form should include this reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission/Office of the Secretary, Room H-135 (Annex M), 
600 Pennsylvania Avenue, NW., Washington, DC 20580. Comments containing 
confidential material, however, must be filed in paper form, must be 
clearly labeled ``Confidential,'' and must comply with Commission Rule 
4.9(c).\1\ The FTC is requesting that any comment filed in paper form 
be sent by courier or overnight service, if possible, because postal 
mail in the Washington area and at the Commission is subject to delay 
due to heightened security precautions.
---------------------------------------------------------------------------

    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See Commission Rule 4.9(c), 
16 CFR 4.9(c).
---------------------------------------------------------------------------

    Comments filed in electronic form should be submitted by following 
the instructions on the web-based form at https://secure.commentworks.com/ftc-fueleconomy. To ensure that the Commission 
considers an electronic comment, you must file it on that web-based 
form. You also may visit http://www.regulations.gov to read this 
proposed Rule, and may file an electronic comment through that Web 
site. The Commission will consider all comments that regulations.gov 
forwards to it.
    The FTC Act and other laws 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, whether filed in paper or electronic 
form. Comments received will be available to the public on the FTC Web 
site, to the extent practicable, at http://www.ftc.gov. As a matter of 
discretion, the FTC makes every effort to remove home contact 
information for individuals from the public comments it receives before 
placing those comments on the FTC Web site. More information, including 
routine uses permitted by the Privacy Act, may be found in the FTC's 
privacy policy at http://www.ftc.gov/ftc/privacy.htm.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 601 New Jersey Avenue, NW., Washington, DC 
20001.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission adopted the Fuel Economy Guide in 1975 to prevent 
deceptive fuel economy advertising and to facilitate the use of fuel 
economy information in advertising. The Guide helps advertisers avoid 
making claims that are unfair and deceptive under Section 5 of the FTC 
Act (15 U.S.C. 45). In particular, the Guide contains specific 
information about the disclosure of mileage information generated by 
EPA's well-established fuel economy program. Under EPA regulations (40 
CFR Part 600), issued pursuant to the Automobile Information Disclosure 
Act (15 U.S.C. 2206), vehicle manufacturers must disclose fuel economy 
numbers on labels attached to new automobiles. In addition, EPA 
regulations contain specific testing protocols (see 40 CFR Part 86) 
that manufacturers must use to derive the fuel economy information used 
on labels.
    To avoid deceptive and unfair claims in advertisements that contain 
fuel economy representations, the FTC's Guide advises marketers to 
disclose the established fuel economy of the vehicle as determined by 
the EPA tests. If advertisers make fuel economy claims based on non-EPA 
tests, the Guide directs them to disclose EPA-derived fuel economy 
information and provide details about the non-EPA tests such as the 
source of the test, driving conditions, and vehicle configurations. The 
Guidance also provides information on how advertisers should make such 
disclosures (e.g., the prominence of the disclosures in relation to 
other claims in the ad). In 1978 and in 1995, the Commission amended 
the Guide to make it consistent with changes to EPA's regulations. (43 
FR 55757 (Nov. 29, 1978); and 60 FR 56230 (Nov. 8, 1995)). On December 
27, 2006 (71 FR 77872), the EPA published new requirements for fuel 
economy labeling. The revised EPA rules include modifications to the 
mandatory fuel economy test that, among other things, incorporate 
different driving conditions (e.g., cold temperatures) into the 
determination of fuel mileage estimates. The recent EPA amendments also 
modify the design of the fuel economy label and require disclosure of 
combined (city/highway) fuel economy figures.

II. Regulatory Review Program

    The Commission reviews all current Commission rules and guides 
periodically. These reviews seek information about the cost and 
benefits of the Commission's rules and guides and their regulatory and 
economic impact. The information obtained assists the Commission in 
identifying rules and guides that warrant

[[Page 26329]]

modification or rescission. Therefore, the Commission solicits comments 
on, among other things, the economic impact of and the continuing need 
for the Fuel Economy Guide; possible conflict between the Guide and 
state, local or other federal laws; and the effect on the Guide of any 
technological, economic, or other industry changes.

III. Request for Comment

    The Commission solicits comments on the following specific 
questions related to the Guide:
    (1) Is there a continuing need for the Fuel Economy Guide? Is the 
Guide necessary to prevent unfair and/or deceptive practices in 
advertising for new automobiles? Are there any specific provisions of 
the Guide that are no longer needed to prevent unfair and/or deceptive 
advertising practices?
    (2) What changes, if any, should be made to the Guide to reflect 
recent amendments to EPA's fuel economy testing and labeling 
requirements?
    (3) What benefits has the Guide provided to purchasers of new 
automobiles? Has the Guide imposed costs on purchasers?
    (4) What changes, if any, should be made to the Guide to increase 
its benefits to purchasers? How would these changes affect the costs 
that the Guide imposes on firms who conform to its advice? How would 
these changes affect the benefits to purchasers?
    (5) What significant burdens or costs, including costs of 
compliance, has the Guide imposed on firms that conform to its advice? 
Are any provisions in the Guide duplicative or otherwise unnecessary? 
Are any of the Guide's provisions unnecessarily prescriptive?
    (6) Has the Guide provided benefits to firms that conform to its 
advice? If so, what benefits?
    (7) What changes, if any, should be made to the Guide to reduce the 
burdens or costs imposed on firms who conform to its advice? How would 
these changes affect the benefits provided by the Guide?
    (8) Does the Guide overlap or conflict with other federal, state, 
or local laws or regulations?
    (9) Since the Guide was issued, what effects have changes in 
relevant technology or economic conditions had on the Guide?
    (10) Are there any unfair and deceptive practices occurring in the 
promotion or advertising of fuel economy that are not covered by the 
Guide? If so, what mechanisms should be explored to address such 
practices (e.g., consumer education, industry self regulation, or 
revisions to the Guide)?

List of Subjects in 16 CFR Part 259

    Advertising, Fuel economy, Trade practices.

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

    By direction of the Commission.
Donald S. Clark,
Secretary.
 [FR Doc. E7-8886 Filed 5-8-07; 8:45 am]
BILLING CODE 6750-01-P