conduct an analysis of the anticipated economic impact of the partial exemption on small
entities. The RFA requires that the Commission provide an Initial Regulatory Flexibility
Analysis (“IRFA”) with a rule unless the Commission certifies that the rule will not have a
significant economic impact on a substantial number of small entities. 5 U.S.C. 605. The
exemption does not amend the Rule or alter the substance or frequency of the Rule’s disclosure
requirements. Thus, the Commission has concluded that a regulatory flexibility analysis is not
necessary, and certifies, under Section 605 of the Regulatory Flexibility Act (5 U.S.C. 605(b)),
that the exemption will not have a significant economic impact on a substantial number of small

entities.

(Authority: 16 CFR 1.31(g); 16 CFR 306.12(a))
By direction of the Commission,
April J. Tabor,

Secretary.


In a June 29, 2022, Notice, the Commission proposed granting the requested exemption
and sought comments on Gilbarco’s proposal.’ In response, the Commission received three brief
comments, none of which addressed the proposal’s merits.*

IV. Discussion

The Commission concludes that Gilbarco’s proposed label modifications provide clear
and conspicuous notice of the required information and are consistent with the objectives of the
Rule’s color scheme, content, and font requirements. Additionally, the Commission’s
experience with similar exemptions suggests the slight reductions in font size to several label
disclosures are unlikely to materially affect consumers’ understanding of the labels at the pump.
Accordingly, the Commission grants the requested partial exemption.

Vv. Paperwork Reduction Act

The Fuel Rating Rule contains recordkeeping, disclosure, testing, and reporting
requirements that constitute information collection requirements as defined by 5 CFR 1320.3(c),
the definitional provision within the Office of Management and Budget (OMB) regulations that
implement the Paperwork Reduction Act (PRA). OMB has approved the Rule’s existing
information collection requirements through September 30, 2023 (OMB Control No. 3084-
0068). The partial exemption does not amend the Rule or change the substance or frequency of
the Rule’s disclosure requirements and, therefore, does not require OMB clearance.

VI. Regulatory Flexibility Act

The Regulatory Flexibility Act (“RFA”), 5 U.S.C. 601-612, requires that the Commission

787 FR 38692.

8 The comments are available at https://www.regulations. gov/docket/FTC-2022-0041/comments.
The comments either did not address the proposal or addressed issues that fell outside the
purview of the Rule.


BILLING CODE: 6750-01-P
FEDERAL TRADE COMMISSION
[File No. R811005]
Partial Rule Exemption for Gilbarco, Inc.
AGENCY: Federal Trade Commission.
ACTION: Grant of partial exemption from the Fuel Rating Rule.
SUMMARY: The Federal Trade Commission (“FTC” or “Commission’”) grants a partial
exemption to Gilbarco, Inc. (“Gilbarco”) from requirements of the Fuel Rating Rule (“Rule”) (16
CFR part 306) related to label size, shape, font size, and letterspace specifications.
DATES: This partial exemption is effective [INSERT DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Attorney, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
600 Pennsylvania Avenue, NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: The Commission grants a partial exemption for
Gilbarco to reduce the footprint and type size of fuel labels required under 16 CFR part 306. !
L Background

The Commission promulgated the Fuel Rating Rule (16 CFR part 306) in accordance

with the Petroleum Marketing Practices Act (“PMPA”), 15 U.S.C. 2821 et seg., which requires
the Commission to establish uniform automotive fuel rating and labeling standards. The ratings

and labels provide consumers information they need to choose the correct type or grade of fuel

' The petition is available online at https:/Avww.regulations.gov/document/FTC-2022-004 1-
0002.
2 See 15 U.S.C. 2823(c)(1).


for their vehicles. As originally published in 1979, the Rule only required an octane rating for
automotive gasoline.? Subsequently, the Commission added labeling requirements for liquid
alternative fuels, biodiesel, and ethanol flex fuel.* Section 306.12 of the Rule details the label
color scheme, shape, size, textual content, and font type/point size. For example, the octane
label must display the fuel’s octane number in 96-point font. In addition, ethanol labels must
state “Use Only In Flex-Fuel Vehicles/May Harm Other Engines” in capital letters and black
font, with the phrase “Flex-Fuel Vehicles” in 16-point font.

In the past, the Commission granted partial exemptions to allow Gilbarco to (1) post
octane button labels with smaller label dimensions than allowed by the Rule (these changes did
not alter font size), and (2) add the word “Press” on the label. In addition, the Commission
allowed Gilbarco to make the font size “slightly smaller” for the prominent octane (96-point
font) number on the octane label.>
IL. Gilbarco’s Requested Partial Exemption and Requests for Comments

In its new petition, Gilbarco requested a partial exemption to permit retailers to post
narrower label dimensions for button labels, as well as to allow the use of smaller font size for
certain text to accommodate such narrower labels. These changes would allow Gilbarco to fit
more fuel labels on a single dispenser. Gilbarco explained the exemption is needed “so that
retailers may adapt to the needs of consumers while continuing to ensure the clear and

conspicuous disclosure of all information required by the Rule.” Given increases in fuel choices

5 See Octane Posting and Certification Rule, 44 FR 19160 (1979).

4 See 58 FR 41356 (Aug. 3, 1993) (alternative fuels); 73 FR 40154 (July 11, 2008) (biodiesel);
and 81 FR 2054 (Jan. 14, 2016) (ethanol flex fuel).

5 See Gilbarco exemptions at 60 FR 57584 (Nov. 16, 1995); 53 FR 29277 (Aug. 3, 1988); 81 FR
86914 (Dec. 2, 2016); see also similar exemptions granted to other companies including Sunoco,
44 FR 33740 (June 12, 1979) and 55 FR 1871 (Jan. 19, 1990); Dresser Industries, Inc., 56 FR
26821 (June 11, 1991); Exxon Corp., 54 FR 14072 (Apr. 7, 1989).


at retail pumps, Gilbarco proposed new button label specifications that would allow its
dispensers to accommodate one additional fuel grade button, for a total of six buttons for
selecting fuel on dispensers.

Specifically, Gilbarco requested the following changes to the fuel rating labels:

1. Permission to post fuel rating labels that deviate from the Rule’s requirements
concerning the external dimensions of labels for gasoline, alternative liquid automotive fuels,
ethanol flex fuels, biodiesel, biodiesel blends, and biomass-based diesel to allow for labels that
are 2.20 inches wide (and the same length as previously permitted by the Commission in
previous exemption requests).°

2. Permission for fuel retailers to post fuel rating labels that deviate from font size
and letterspace specifications contained in the Rule in the following manner:

a. 22-point font size for “XX% ETHANOL” instead of 24-point font as
currently required on the ethanol label;
b. 10-point font size and 10.5-point letterspace for “MINIMUM OCTANE

RATING” instead of 12-point font and 12.5 point spacing as currently required on the

octane label; and

c. 14-point font size for “FLEX-FUEL VEHICLES” instead of 16-point
currently required on the ethanol label.

As part of the request, Gilbarco proposed that the overall length of the labels remain as
previously approved by the Commission, and their background and text insertions otherwise
comply with the Rule’s color scheme, content, and font type and point size requirements.

Ill. Request for Comments

© The Rule (16 CFR 306.12) requires labels that are 3 inches wide by 2.5 inches long.