[Federal Register Volume 78, Number 7 (Thursday, January 10, 2013)]
[Rules and Regulations]
[Pages 2200-2210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00116]


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FEDERAL TRADE COMMISSION

16 CFR Part 305

RIN 3084-AB15


Energy Labeling Rule

AGENCY: Federal Trade Commission (FTC or Commission).

ACTION: Final rule.

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SUMMARY: As part of its ongoing regulatory review of the Appliance 
Labeling Rule (``Rule''), the Commission amends the Rule by 
streamlining data reporting requirements for manufacturers, clarifying 
testing requirements and enforcement provisions, improving online 
energy label disclosures, and making several minor technical changes 
and

[[Page 2201]]

corrections. The Commission continues to consider other issues related 
to this regulatory review and may seek comment on additional proposals 
in the future.

DATES: The amendments published in this document will become effective 
on February 15, 2013, with the exception of the amendments to 
Sec. Sec.  305.4(b)(6) and 305.6, which become effective on July 15, 
2013, and the amendments to Sec.  305.20 and Appendix L, which become 
effective on January 15, 2014. The incorporation by reference of 
certain publications listed in the rule was approved by the Director of 
the Federal Register as of May 10, 2011.

ADDRESSES: Requests for copies of this document should be sent to: 
Public Reference Branch, Room 130, Federal Trade Commission, 600 
Pennsylvania Avenue NW., Washington, DC 20580. The complete record of 
this proceeding is also available at that address. Relevant portions of 
the proceeding, including this document, are available at http://www.ftc.gov.

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:

I. Appliance Labeling Rule

    The Commission issued the Appliance Labeling Rule pursuant to the 
Energy Policy and Conservation Act (EPCA).\1\ The Rule requires energy 
labeling for major household appliances and other consumer products to 
help consumers compare competing models.\2\ When first published in 
1979,\3\ the Rule applied to eight appliance categories: refrigerators, 
refrigerator-freezers, freezers, dishwashers, water heaters, clothes 
washers, room air conditioners, and furnaces. Subsequently, the 
Commission expanded coverage to include central air conditioners, heat 
pumps, plumbing products, lighting products, ceiling fans, and 
televisions.\4\
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    \1\ 42 U.S.C. 6291 et seq.
    \2\ For more information about the Rule, see http://www.ftc.gov/appliances.
    \3\ 44 FR 66466 (Nov. 19, 1979).
    \4\  See 52 FR 46888 (Dec. 10, 1987) (central air conditioners 
and heat pumps); 54 FR 28031 (Jul. 5, 1989) (fluorescent lamp 
ballasts); 58 FR 54955 (Oct. 25, 1993) (certain plumbing products); 
59 FR 25176 (May 13, 1994) (lighting products); 59 FR 49556 (Sep. 
28, 1994) (pool heaters); 71 FR 78057 (Dec. 26, 2006) (ceiling 
fans); and 76 FR 1038 (Jan. 6, 2011) (televisions).
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    The Rule requires manufacturers to attach yellow EnergyGuide labels 
on many of these products.\5\ It prohibits retailers from removing 
these labels or rendering them illegible.\6\ In addition, the Rule 
directs sellers, including retailers, to post energy disclosures on Web 
sites and in paper catalogs from which consumers can order products.\7\
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    \5\  See 42 U.S.C. 6302(a)(1); 16 CFR 305.4(a)(1). The 
EnergyGuide label must appear on refrigerators, refrigerator-
freezers, freezers, room air conditioners, clothes washers, 
dishwashers, pool heaters, central air conditioners, heat pumps, 
furnaces, and televisions. See 16 CFR 305.11, 305.12, 305.14, and 
305.17. The EnergyGuide label constitutes a visually uniform 
``brand'' for all these products, but it has different dimensions 
and disclosures based on the nature and energy use of the product. 
See 16 CFR Part 305 Appx. L (label prototypes). Ceiling fans must 
bear labels similar to EnergyGuide labels, but visually distinct. 16 
CFR 305.13. The remainder of the Rule's covered products bear other 
types of labels or disclosures related to energy or water use (for 
plumbing products), rather than the EnergyGuide brand. For example, 
common consumer light bulbs must bear a ``Lighting Facts'' label.
    \6\  See 16 CFR 305.4(a)(2); 42 U.S.C. 6302(a)(2).
    \7\  See 16 CFR 305.20; 42 U.S.C. 6296(a).
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    EnergyGuide labels for covered appliances and televisions contain 
three key disclosures: estimated annual operating cost (for most 
products), a ``range of comparability'' showing the highest and lowest 
energy consumption or efficiency ratings for all similar models, and 
the product's energy consumption or energy efficiency rating as derived 
from standard Department of Energy (DOE) tests. The Rule specifies the 
content and format of the label. Manufacturers cannot place any 
information on the label other than what the Rule specifically allows.
    The Rule also contains reporting requirements for most products. 
Under these requirements, manufacturers must submit data to the FTC 
both when they begin manufacturing new models and on an annual basis 
thereafter.\8\ These reports must contain, among other things, 
estimated annual energy consumption or energy efficiency ratings. DOE 
also has similar reporting requirements for its efficiency standards 
certification program.\9\
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    \8\  See 16 CFR 305.8; 42 U.S.C. 6296(b). In addition to current 
models, each annual report must identify models discontinued since 
the previous report. 16 CFR 305.8(b)(2). In addition to annual 
reports, manufacturers must submit a report for each new model prior 
to distribution of that model. 16 CFR 305.8(c).
    \9\ 10 CFR Part 429.
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II. Regulatory Review

    In a March 15, 2012 Notice of Proposed Rulemaking (NPRM),\10\ the 
Commission initiated a regulatory review of the Rule, inviting comment 
on several specific proposals as well as the Rule's overall regulatory 
and economic impacts. In particular, the Commission proposed to: (1) 
Eliminate duplicative requirements by harmonizing FTC and DOE reporting 
and testing rules; (2) prohibit hang tag labels for all covered clothes 
washers, dishwashers, and refrigerators, and instead require adhesive 
labels; (3) require manufacturers to place room air conditioner labels 
on display boxes instead of on the product; (4) improve retailer Web 
site and paper catalog disclosures by retailers; (5) require 
manufacturers to include estimated operating cost information on 
ceiling fan labels; (6) require manufacturers to include specific 
capacity information on clothes washer EnergyGuide labels; (7) require 
a QR (``Quick Response'') code on EnergyGuide labels to link mobile 
phone users to FTC and DOE information; (8) update product definitions 
for refrigerators and freezers; (9) clarify the Rule's enforcement 
provisions; and (10) shorten the Rule's title.\11\
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    \10\ 77 FR 15298 (Mar. 15, 2012). In 2011, the Commission also 
proposed amendments related to the Rule's light bulb coverage. See 
76 FR 45715 (Aug. 1, 2011).
    \11\ The Commission also proposed two technical corrections 
related to ENERGY STAR logos on heating and cooling equipment and 
television labels for small models. 77 FR 15298, 15303.
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    The Commission has reviewed the responsive comments \12\ and now 
issues final amendments to address two of the principal issues raised 
in the NPRM--the harmonization of reporting and testing requirements, 
and improvements to the Rule's online disclosure requirements--as well 
as several less significant changes. In the future, the Commission 
plans to address some of the other issues discussed in the NPRM, as 
well as additional issues raised by commenters, because these issues 
require further comment and consideration.
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    \12\ The Commission received 15 timely comments in response to 
the NPRM. The commenters included A.O. Smith Corporation 
(<greek-i>00003), Air-Conditioning, Heating, and Refrigeration 
Institute (AHRI) (<greek-i>00020), Alliance Laundry Systems LLC 
(<greek-i>00011), Association of Home Appliance Manufacturers (AHAM) 
(<greek-i>00013), Bradford White Corporation (<greek-i>00004), BSH 
Home Appliances (<greek-i>00007), Consumer Electronics Association 
(CEA) (<greek-i>00012), consolidated comments from the American 
Council for an Energy-Efficient Economy, Appliance Standards 
Awareness Project, Consumer Federation of America, Consumers Union, 
Earthjustice, Natural Resources Defense Council, and Public Citizen 
(referred to in this Notice as ``consolidated comments from consumer 
and efficiency organizations'') (<greek-i>00015), Highfill, Lisa 
(<greek-i>00006), National Electrical Manufacturers Association 
(NEMA) (<greek-i>00005), Pacific Gas and Electric Company (PG&E) 
(<greek-i>00009), Panasonic Corporation of North America 
(<greek-i>00014), Sonthipanya, Shannon (<greek-i>00002), Southern 
California Edison (<greek-i>00008), and Whirlpool Corporation 
(<greek-i>00010). The comments can be found at: http://www.ftc.gov/os/comments/energylabelamend/index.shtm.
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III. Final Amendments

    The Commission announces final amendments to improve the Rule

[[Page 2202]]

through harmonization of DOE and FTC reporting and testing rules, 
enhance retailer Web site and paper catalog disclosures, update product 
definitions for refrigerators and freezers, clarify the Rule's 
enforcement and penalty provisions, change the Rule's title, and 
correct a few technical errors. Below, we discuss the comments received 
and the Commission's final decision on these issues.

A. Reporting and Testing Requirements

    Background: In the NPRM, the Commission proposed to streamline 
current reporting requirements by allowing manufacturers to submit FTC-
required data through a DOE database and by harmonizing FTC reporting 
rules with DOE requirements. The Commission also proposed to clarify 
FTC testing requirements for mandatory label disclosures.\13\
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    \13\ The Rule's reporting requirements do not apply to 
televisions and LED (light-emitting diode) light bulbs. 76 FR 1038, 
1040 n.28 (Jan. 6, 2011).
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    Specifically, the Commission proposed to allow manufacturers to 
meet FTC reporting requirements by using DOE's new web-based tool for 
energy reporting (the ``Compliance and Certification Management 
System'' (CCMS)).\14\ Under current rules, manufacturers of each 
covered product must submit one report to DOE \15\ and another, largely 
duplicative submission to the FTC. Under the proposal, manufacturers 
would send their reports only to DOE. Once manufacturers upload their 
data to DOE's database, the FTC would obtain the information from DOE 
and place it on the Commission's public record.\16\
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    \14\ 75 FR 27183 (May 14, 2010).
    \15\  See 10 CFR part 430; 42 U.S.C. 6296.
    \16\  See 16 CFR 4.9(b)(10)(xii).
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    The Commission also proposed to harmonize FTC reporting 
requirements with DOE certification rules. To achieve this goal, the 
FTC Rule would require the same report content as DOE. However, for 
ceiling fans, the FTC would continue to maintain separate reporting 
requirements because DOE's test procedures for these products are not 
mandatory.
    In addition, the Commission proposed to clarify the DOE testing 
requirements that manufacturers must use to determine energy 
information for FTC labels. The current FTC Rule calls for adherence to 
applicable DOE test procedures generally, but does not mention several 
specific DOE testing requirements such as sampling rules, testing 
accreditation (for light bulbs), and testing waiver procedures. The 
proposed amendments specify that manufacturers must test their products 
in accordance with all of these DOE testing requirements.\17\
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    \17\ Unless otherwise specified in the Rule, the Commission did 
not propose to require compliance with any DOE testing provisions 
that DOE does not require for certification. This will ensure that 
the FTC does not inadvertently impose additional testing 
requirements. The Commission also proposed to eliminate various 
references to recommended Illuminating Engineering Society (IES) 
test procedures for incandescent and compact fluorescent lamps now 
superseded by specific DOE testing requirements.
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    Comments: Commenters supported the proposal to harmonize FTC 
reporting and testing regulations with DOE.\18\ For example, the 
Association of Home Appliance Manufacturers (AHAM) explained that the 
change ``would go a long way to minimize the burdens associated with 
this dual reporting.'' Similarly, the Air-Conditioning, Heating, and 
Refrigeration Institute (AHRI) observed that existing duplicative 
reporting requirements do not ``provide any benefit to consumers while 
considerably increasing the regulatory burden on manufacturers.'' No 
comments opposed the proposals. Commenters also urged the Commission to 
consider three specific issues related to reporting and testing.
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    \18\ See, e.g., Alliance, AHAM, National Electrical 
Manufacturers Association (NEMA), Energy and Consumer Organization 
Commenters.
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    First, some industry members raised concerns about the disparate 
scope of FTC and DOE reporting requirements.\19\ They noted that the 
FTC's proposal, consistent with its current rule, requires annual 
reporting for models that are ``currently in production.'' In contrast, 
DOE reporting covers all models currently ``offered for sale,'' a 
broader category.\20\ These comments preferred the FTC's approach and 
urged the Commission to maintain its coverage. They explained that 
DOE's approach requires manufacturers to keep track of information 
outside their control because manufacturers generally maintain records 
based on the models in current production, not on whether retailers 
offer them for sale, and manufacturers do not always know how long 
retailers will offer discontinued models for sale.
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    \19\ AHAM, Alliance Laundry Systems, Whirlpool, and BSH Home 
Appliances.
    \20\ 10 CFR 429.12(f).
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    Second, industry commenters urged the FTC to recognize recent DOE 
rules allowing manufacturers to report energy ratings that are more 
conservative than tested ratings. Some manufacturers follow this 
practice to ensure that, given slight variations from unit to unit, 
their representations do not overstate the efficiency of their 
products. DOE has explained that ``the tested performance of the 
model(s) must be at least as good as the certified rating, after 
applying the appropriate sampling plan.'' \21\ Consistent with this 
policy, DOE sampling regulations state that reported energy consumption 
values ``shall be greater than or equal to the higher of'' the value 
generated by the sampling procedures.\22\
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    \21\ See 76 FR 12422, 12429 (Mar. 7, 2011).
    \22\ 10 CFR 429.14(a)(2)(i).
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    Third, some industry commenters (e.g., AHAM and Bradford White) 
noted that several manufacturers currently submit certification reports 
to DOE and FTC through voluntary industry certification programs, such 
as one currently administered by AHRI for heating and cooling 
equipment. These comments urged the Commission to continue allowing 
this type of reporting, to minimize the burden on manufacturers.
    Discussion: After considering the comments, the Commission amends 
the Rule as proposed to harmonize its reporting and testing 
requirements with DOE.\23\ These changes streamline reporting for 
manufacturers and ensure that all required product data is submitted to 
a single location.\24\ In addition, the amendments will ensure that 
manufacturers develop the content of energy disclosures for the FTC 
labels based on DOE-required testing provisions.
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    \23\ The final rule contains a non-substantive change to the 
language in section 305.5(a) to reflect recent changes in the 
location of DOE testing and sampling provisions in 10 CFR Parts 429 
and 430.
    \24\ The final amendments do not eliminate direct reporting to 
the FTC altogether, because EPCA requires manufacturers to submit 
annual reports to the FTC containing ``relevant data respecting 
energy consumption and water use developed in accordance with'' 
applicable DOE test procedures. 42 U.S.C. 6296(b)(4).
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    Consistent with the proposal and existing rule, the final rule 
continues to require reporting for all models in current production and 
all models discontinued during the previous reporting year.\25\ DOE 
currently requires reporting for all models available for sale (not 
just those in current production). The Commission's amendments should 
not materially change the scope or burden of reporting to DOE's 
database because FTC's coverage is not as broad as DOE's.
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    \25\ Consistent with the current FTC Rule (305.8) and as 
required by EPCA (42 U.S.C. 6296(b)), the final rule contains a 
technical correction indicating that ceiling fan reports must 
contain a ``starting serial number, date code or other means of 
identifying the date of manufacture (date of manufacture information 
must be included with only the first submission for each basic 
model).''
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    In addition, the Commission concurs with recent DOE guidance 
allowing manufacturers to rate models more conservatively than their 
tested

[[Page 2203]]

performance. These rules allow manufacturers to label their products 
with higher energy usage numbers (e.g., estimated annual energy cost) 
than test results for the product indicate. This approach should have 
no negative impact on consumers because these products may be more 
energy-efficient than their labels indicate. The Commission does not 
need to amend the Rule, which already directs manufacturers to derive 
their energy consumption figures using DOE testing protocols because 
DOE regulations specifically allow this practice.
    Lastly, the FTC will continue to allow manufacturers to submit data 
through certification bodies or other entities (e.g., testing 
laboratories) acting on their behalf. This approach is consistent with 
DOE requirements.\26\ The record identifies no reason to change this 
practice.
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    \26\ 10 CFR 429.12(g).
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B. Web Site and Paper Catalog Disclosures

    Background: In the NPRM, the Commission proposed several amendments 
to enhance the energy information available to consumers in 
``catalogs'' (i.e., paper catalogs and Web sites selling covered 
products),\27\ consistent with the Commission's recently issued 
requirements for television labels.\28\ First, the Commission proposed 
to require retail Web sites to post the full EnergyGuide or Lighting 
Facts label online. The current Rule requires online retailers to post 
the label content, but not the label image. Under the proposal, Web 
sites would post the full label or use an FTC-provided icon to link 
consumers to the full label. The proposed amendments specified the 
format and placement for the required information (e.g., label or 
icon). Second, to ensure that retail Web sites have access to the 
label, the NPRM proposed to require manufacturers to post their 
EnergyGuide and Lighting Facts labels online and to retain the label 
online for two years after discontinuing a model. Finally, for paper 
catalogs, the Commission proposed to continue allowing retailers to use 
an abbreviated text disclosure in lieu of the full label, due to space 
and cost constraints.
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    \27\ The Rule's definition of ``catalog'' encompasses both print 
and online formats. The current rule defines ``catalog'' as 
``printed material, including material disseminated over the 
Internet, which contains the terms of sale, retail price, and 
instructions for ordering, from which a retail consumer can order a 
covered product.'' 16 CFR 305.2(h).
    \28\ 76 FR 1038 (Jan. 6, 2011) (television labels).
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    Comments: Most comments generally supported the proposed 
requirements directing online retailers to post EnergyGuide and 
Lighting Facts labels. However, several raised concerns with particular 
details, including the use of Web site hyperlinks. Comments contained 
mixed support for the proposed requirement that manufacturers make 
their labels available online, and some commenters urged the Commission 
to reduce the proposed two-year retention period to six months.
    Online Retailer Duty to Post Labels: Commenters generally expressed 
support for, or did not oppose, the revised Web site requirements for 
retailers, which conform to recently issued rules for television 
labels. For example, the consolidated comments from consumer and 
efficiency organizations note that such changes are important ``to 
ensure that the Rule remains useful as consumer purchasing and consumer 
research increasingly migrate online.''
    However, several comments opposed the Commission's proposal to 
allow online retailers to use a hyperlink icon from the product page to 
link consumers to the required label.\29\ These commenters argued that 
the label must appear on the product page itself.\30\ In their opinion, 
consumers may not realize the icon is a link, or understand where the 
link leads, or may simply find the link inconvenient.\31\ In addition, 
they suggested that consumers may decide not to view the label at all 
if the Web site requires them to download a PDF or other file to their 
computer. Given the limited time that consumers review Web site 
information, the consolidated efficiency and energy group comments 
explained that the online label must be ``conspicuous, easily 
accessible, and an intrinsic part of the description of the product in 
order for it to be useful to and used by consumers.'' They suggested 
that retailers could minimize the Web page space consumed by labels 
with a hover or ``mouseover'' feature, which would allow consumers to 
view labels without clicking an icon.
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    \29\ Pacific Gas and Electric Company (PG&E), Southern 
California Edison, and consolidated comments from efficiency and 
consumer groups.
    \30\ The consolidated comments from consumer and efficiency 
organizations acknowledged that the proposed icon, with its 
explanatory text, was preferable to the icon currently required for 
televisions, which contains no such text. However, these 
organizations argued that any link allowed by the Rule should 
display the model's estimated annual operating cost, to provide this 
important information even if consumers do not click on the link to 
the full label.
    \31\ PG&E, Southern California Edison, and consolidated consumer 
and efficiency organizations comments.
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    In contrast, Whirlpool argued that the inclusion of the full label 
itself ``would dramatically alter the ability of manufacturers (or 
retailers) to display product photos and descriptive information'' on 
product pages. In addition, Whirlpool asserted that such an approach 
would significantly reduce the ``readability and usability of these 
pages.''
    Manufacturer Duty to Post Labels: The comments contained mixed 
views on the proposal requiring manufacturers to post labels online. 
Consumer and efficiency groups supported the proposed changes; 
appliance manufacturers did not oppose them but recommended 
modifications; and heating and cooling equipment manufacturers 
criticized them.
    Consumer and efficiency groups urged adoption of the proposed 
provision, noting that it will allow retailers to download labels and 
repost them on their own Web sites. In their view, the requirement will 
allow consumers to view labels missing from retailer sites and 
otherwise make it easier to locate product efficiency information.
    Appliance manufacturers \32\ did not oppose the proposal but raised 
concerns about having to continue to post labels two years after 
discontinuing a model's production.\33\ AHAM stated that the proposed 
timeframe is ``far too long and burdensome for manufacturers'' and 
fails to provide ``corresponding benefit.'' \34\ It explained that the 
two-year period would raise significant complications when the 
Commission requires changes to the label content (e.g., through range 
or cost updates), necessitating label changes for models that are no 
longer in production. To avoid such problems, it suggested a six-month 
retention period. AHAM also asked the Commission to clarify whether the 
online label disclosure would apply to products no longer in production 
when the proposed rule becomes effective.\35\
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    \32\ Whirlpool noted that it already posts labels for its 
products online.
    \33\ NEMA indicated that there was no consensus among its 
members on this proposal.
    \34\ BSH Home Appliances echoed AHAM's comments on these issues.
    \35\ Recent AHRI comments in a separate proceeding involving 
furnace and air conditioner labels (77 FR 33337 (June 6, 2012)) 
argued that the two-year retention period conflicts with new ``DOE 
guidance on discontinued models, which requires that basic models be 
removed from public Web sites once DOE is notified.'' AHRI Comments 
<greek-i> 560904-00008 (Aug. 6, 2012). http://www.ftc.gov/os/comments/regionaldisclosurenprm/index.shtm. After consultation with 
DOE staff, the FTC staff has identified no such requirement in DOE's 
certification rules. See 10 CFR 429.12(d).

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[[Page 2204]]

    Finally, heating and cooling equipment manufacturers opposed the 
proposal. A.O. Smith, a water heater manufacturer, argued that the 
proposed requirement will force manufacturers to expend considerable 
time and resources for a service that the majority of retailers will 
not use. In AHRI's view, under the current rule, manufacturers already 
provide adequate product information to retail catalog sellers. In 
addition, AHRI argued that the proposed requirement will create a 
burdensome and complicated process for companies that sell private-
labeled products procured from other manufacturers.\36\ Smith also 
noted that manufacturers generally do not maintain a Web site for 
models they sell to private labelers. It further explained that 
merchants, to save time and avoid errors, generally rely on direct 
communication with manufacturers to obtain product information.
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    \36\ Generally, a private labeler purchases products from a 
manufacturer and markets those products under its own brand name. 
EPCA defines a private labeler as an entity, other than the product 
manufacturer, that owns a product brand or trademark other than the 
product manufacturer. 42 U.S.C. 6291(15).
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    Paper Catalogs: Finally, Whirlpool concurred with continuation of 
the current practice of allowing abbreviated text disclosure in printed 
catalogs. No commenters opposed this proposal.\37\
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    \37\ NEMA indicated that no consensus existed among its members 
on the issue of online disclosures and provided no details regarding 
the merits of the proposal.
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    Discussion: The Commission amends the Rule's catalog requirements 
as proposed, with a few minor changes discussed below. Generally, the 
amendments require Web site sellers to display the full EnergyGuide or 
Lighting Facts labels on the product page or through a hyperlink from 
that page, establish specific Web site format requirements, and require 
manufacturers to post labels for their products on a publicly available 
Web site. These revised Web site requirements should make it easier for 
consumers to compare the energy performance of products as they shop 
and research products online. The changes also will provide a clear, 
consistent process that manufacturers and retailers must follow to 
deliver energy information to online consumers. The final rule requires 
manufacturers to continue posting their labels online for six months 
after discontinuing production of the model, instead of the proposed 
two-year period. Finally, manufacturers will have six months to comply 
with these new requirements, and online retailers will have one year. 
The amendments do not change requirements for paper catalogs.
    Retail Web sites: The final amendments require Web sites selling 
products with the EnergyGuide or Lighting Facts label to display the 
full label either on the product page or through a hyperlink. These 
provisions mark a departure from the current online requirements, which 
allow abbreviated, text-only energy disclosures. The Commission allowed 
these short disclosures in the past due to space constraints and the 
costs associated with printing the full label in paper catalogs.\38\ 
However, during the television labeling rulemaking, the Commission 
determined that this rationale does not apply to Web sites. 
Accordingly, the Commission required Web sites selling televisions to 
include the full label or a special icon linking to the full label.\39\
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    \38\ 72 FR 49948, 49961 (Aug. 29, 2007).
    \39\ 76 FR 1038.
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    The Commission does not agree with commenters that the full label 
must appear on the product page with no option to provide a hyperlink. 
Depending on the design of the Web site, a full label could crowd and 
clutter product pages, reducing the space available to display photos 
and other information. Although, as suggested by comments, a hover or 
``mouseover'' feature (presumably coupled with a small, thumbnail label 
image) could mitigate such problems, the record does not demonstrate 
that a thumbnail-sized label would be more effective than the icon 
link, a common Web site feature familiar to consumers.\40\ Both 
approaches require consumers to direct their mouse to a specific 
location. However, the Commission agrees with commenters that retail 
Web sites should not require consumers to save files in order to view 
the labels. Accordingly, the final rule language specifically prohibits 
this practice.
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    \40\ Nothing in the final rule prohibits online retailers from 
using a ``mouseover'' or hover feature to allow consumers to magnify 
label images placed directly on the product page.
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    The final amendments require Web site sellers either to place the 
full label on the product's detailed description page or, to minimize 
design impact on their sites, to use a small EnergyGuide or Lighting 
Facts logo icon provided by FTC, which will link to the full label. The 
amendments allow Web sites to scale the icon (as well as the label) 
appropriately to accommodate their layout, as long the labels and icons 
remain readable and recognizable. The new icon applies to all products 
subject to the EnergyGuide or Lighting Facts requirements, including 
televisions. As proposed, the required icon in the final amendments 
integrates the text ``Click for this product's energy information'' 
into the icon design. This design, which differs slightly from the 
current television icon, should reduce the likelihood that consumers 
will view the icon as an endorsement or general claim about a product's 
environmental quality, rather than as an energy cost disclosure.\41\
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    \41\ Web site sellers should not use language implying that the 
icon constitutes an endorsement or an environmental claim. For 
example, adding the words ``EnergyGuide Rated'' near the icon could 
suggest that the icon represents a product endorsement or a 
``green'' claim about the product. Such language would probably be 
deceptive under Section 5 of the FTC Act, 15 U.S.C. 45.
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    Under the amendments, online sellers have some flexibility in how 
they display the label. For example, they may use a thumbnail image as 
long as consumers can recognize the image and read it using a hover, 
``mouseover,'' or similar feature that magnifies the label. For general 
service lamps, online sellers may post an image of the manufacturer's 
package bearing the Lighting Facts label, as long as consumers can read 
the label by, for example, magnifying the package image to read the 
label using a mouseover or similar feature. In addition, online sellers 
may create their own versions of the labels rather than using the 
images provided by the manufacturers, as long as the labels conform to 
all the specifications in the amended rule.
    The final amendments also provide specifications regarding the 
format and placement of the required information on Web sites. 
Consistent with the NPRM,\42\ the final rule requires that the label or 
icon appear ``clearly and conspicuously and in close proximity to the 
covered product's price.'' \43\ This requirement, incorporated into the 
new television label provisions, should ensure that consumers can 
easily view the label or icon without excessive scrolling or clicking, 
and still provide flexibility to Web site designers. The label or icon 
need only appear on ``each Web page that contains a detailed 
description of the covered product and its price,'' rather than 
alongside every image of a covered product on the site. The Commission 
does not agree with

[[Page 2205]]

comments suggesting the hyperlink icon should disclose the model's 
specific estimated energy cost. It is not clear whether any benefits 
associated with such a disclosure would justify the significant burden 
this requirement would impose on retailers.
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    \42\ 77 FR at 15301.
    \43\ Similarly, the amendments require that Web site disclosures 
for required non-label markings or text (e.g., gallons per minute 
for showerheads and faucets) be displayed clearly and conspicuously, 
and in close proximity to the product's price on the Web page. 
Because the Rule does not require a specific product label for these 
short and simple disclosures, the amendments do not impose any 
design or font size requirements for these disclosures on Web site, 
other than that they be clear and conspicuous.
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    Manufacturer Duty to Post Labels: The amendments require 
manufacturers to make images of their EnergyGuide and Lighting Facts 
labels available on a Web site for linking and downloading by both 
paper catalogs and Web sites.\44\ As discussed in the NPRM and the 
comments, this requirement will assist retailers in complying with the 
Rule and help ensure consumers can view the labels when they are 
shopping online. In particular, it will provide retail sellers with 
easy access to the labels for the products they offer for sale, even if 
they do not handle the labeled products directly. It will also 
eliminate the need for these retailers to affirmatively request labels 
from various manufacturers for each individual product sold on their 
Web sites and catalogs. The Commission does not expect that the 
amendments, which are consistent with current television label 
rules,\45\ will impose undue burden because industry members have 
already created labels under Rule and should have them readily 
available for posting on Web sites.
---------------------------------------------------------------------------

    \44\ The amendments also include language conforming to the 
Rule's prohibited acts section (305.4) indicating that a 
manufacturer's failure to post labels online is subject to civil 
penalties. See 42 U.S.C. 6296(a), 6302(a)(4). The new requirements 
stem from EPCA's mandate, in the statute's catalog-related 
provision, that manufacturers ``provide'' a label and from the 
Commission's general authority to dictate the manner in which labels 
are displayed. 42 U.S.C. 6294(c)(3) & 6296(a).
    \45\ 76 FR 1038.
---------------------------------------------------------------------------

    Under the final rule, the labels must remain available online for 
six months after the manufacturer ceases to produce the model, instead 
of two years as proposed in the NPRM. The Commission agrees with 
commenters that the proposed two-year period could create a significant 
burden for manufacturers unmatched by the potential benefits for online 
retailers and ultimately, consumers. Specifically, given periodic FTC-
required label updates, the two-year retention period could force 
manufacturers to revise labels for obsolete products.\46\ At the same 
time, there is no clear evidence that online retailers have a strong 
need for labels from models discontinued for six months or more. Should 
the six-month period prove to be insufficient to provide needed labels 
to retailers in the future, the Commission may revisit the issue.\47\
---------------------------------------------------------------------------

    \46\ The six-month period is also consistent with EPCA's 
provisions directing manufacturers to change labels and other energy 
representations 180 days after DOE amends its test procedures for 
specific products. 42 U.S.C. 6293(c).
    \47\ As specified in section 305.6, the final rule does not 
apply to models discontinued prior to the effective date.
---------------------------------------------------------------------------

    The new posting requirement applies to manufacturers, not private 
labelers.\48\ Manufacturers must ensure that the labels are available 
on a publicly accessible site. However, nothing prohibits manufacturers 
from arranging with private labelers to post the labels on the private 
labelers' Web sites.\49\ The Rule does not mandate that manufacturers 
post labels for the products they produce on their own sites. Other 
labeling responsibilities under the Rule have applied to both 
manufacturers and their private labelers for decades.\50\ Accordingly, 
the Commission does not expect that this new online label disclosure 
requirement should unduly complicate coordination between manufacturers 
and private labelers.\51\
---------------------------------------------------------------------------

    \48\ EPCA states that ``Each manufacturer of a covered product 
to which a rule under section 6294 of this title applies shall 
provide a label which meets, and is displayed in accordance with, 
the requirements of such rule.'' 42 U.S.C. 6296(a). The definition 
of ``manufacturer'' under EPCA includes importer. 42 U.S.C. 
6291(10)-(12).
    \49\ DOE follows a similar approach to its certification 
requirements by allowing manufacturers to arrange with third 
parties, including private labelers, to display product labels on 
Web sites. See 76 FR 12422, 12427 (Mar. 7, 2011). In addition, 
though FTC reporting requirements apply solely to manufacturers, the 
FTC accepts submissions through third parties. See 16 CFR 305.8.
    \50\ See 16 CFR 305.4(a).
    \51\ A.O. Smith also argued that many retailers do not use 
manufacturer Web sites to obtain labels. Nothing in the final rule 
prohibits manufacturers from also providing labels to their retail 
partners through means other than the Web site. Nevertheless, the 
requirement will ensure that labels are available online for those 
that do use manufacturer Web sites.
---------------------------------------------------------------------------

    Compliance Period: Consistent with the recent television labeling 
requirements, the final rule staggers the compliance dates for these 
new requirements. Specifically, manufacturers must make their labels 
available online by July 15, 2013. In turn, online retailers must begin 
displaying labels for the covered products they sell by January 15, 
2014. These compliance dates should provide industry members adequate 
time to comply with the new requirements.
    Paper Catalogs: Finally, for paper catalogs, the Rule continues to 
allow an abbreviated text disclosure in lieu of the full label. Due to 
the space and cost constraints involved with paper catalogs, inclusion 
of the entire label may be impractical.\52\ No comments opposed this 
approach.
---------------------------------------------------------------------------

    \52\ Consistent with the NPRM, the amendments also state that, 
if paper catalogs display more than one covered product model on a 
page, the seller may disclose the utility rates or usage assumptions 
underlying the energy information (e.g., 10.65 cents per kWh, 8 
cycles per week) only once per page for each type of product (e.g., 
a single footnote for all refrigerators advertised on the page), 
rather than repeating the information for each advertised model. The 
disclosure must be clear and conspicuous. In addition, the final 
rule language covers heating and cooling equipment disclosures, text 
inadvertently omitted from the proposed language.
---------------------------------------------------------------------------

C. Definitions of Refrigerator and Refrigerator-Freezer

    The Commission amends the Rule's refrigerator definitions to match 
DOE regulations. On December 16, 2010,\53\ DOE issued revised 
definitions for the terms ``electric refrigerator'' and ``electric 
refrigerator-freezer.'' In the NPRM, the Commission proposed to conform 
its own definitions for these terms to ensure consistency. No comments 
opposed the proposal. AHAM and BSH supported the changes, explaining 
that they would provide consistency and clarity for regulated parties 
and consumers.\54\
---------------------------------------------------------------------------

    \53\ 75 FR 78810.
    \54\ The consolidated comments from consumer and energy 
organizations also supported the proposal.
---------------------------------------------------------------------------

D. Prohibited Acts Provision

    Consistent with the NPRM, the final rule clarifies the penalty 
assessments for several non-labeling violations listed in section 
305.4(b). These violations include refusal to allow access to records, 
refusal to submit required data reports, refusal to permit FTC 
officials to observe testing, refusal to supply units for testing, 
failure to disclose required energy information in Web sites and paper 
catalogs, and failure of manufacturers to make labels available 
online.\55\ The current Rule does not specify the method (e.g., per 
day) for assessing penalties for these non-labeling violations.\56\ The 
amendments clarify that these violations are subject to civil penalties 
calculated on a per-model, per-day basis. The per-model, per-day basis 
is consistent with EPCA's enforcement provisions as well as DOE 
enforcement guidance for the same and

[[Page 2206]]

similar provisions.\57\ For example, a manufacturer's refusal to submit 
required reports accrues a fine of up to $110 per day for each model 
subject to the reporting requirements. In addition, a Web site seller's 
failure to post required label information accrues a fine of up to $110 
per day for each model on the Web site lacking the disclosure. No 
comments opposed the proposal.\58\
---------------------------------------------------------------------------

    \55\  See 16 CFR 305.4(b); see also 42 U.S.C. 6296(b)(2),(4) and 
6303(a)(3) (data reports and records access), 6296(b)(5) (testing 
access), 6296(b)(3) (units for testing), and 6296(a) (catalog sales 
and manufacturer responsibilities).
    \56\ In contrast, the current rule specifies the basis for 
labeling violations. Specifically, consistent with EPCA (42 U.S.C. 
6303(a)), section 305.4(a) states that labeling violations are 
assessed on a per-unit basis.
    \57\ See 42 U.S.C. 6302, 6303; 16 CFR 305.4(a); and DOE 
``Guidance on the Imposition of Civil Penalties for Violations of 
EPCA Conservation Standards and Certification Obligations,'' http://www.doe.gov/sites/prod/files/gcprod/documents/Penalty_Guidance_5_7_2010__final_%282%29.pdf.
    \58\ The consolidated consumer and efficiency organizations 
comments specifically supported the proposal, noting that any other 
interpretation would lead to absurd results.
---------------------------------------------------------------------------

E. Rule Title

    As proposed in the NPRM, the Commission shortens the Rule's title. 
When originally promulgated in 1979, the Rule applied only to 
appliances. Subsequently, the Commission expanded the Rule to include 
lighting, plumbing, and consumer electronics. Accordingly, the 
Commission proposed to change the Rule's title from ``Part 305--Rule 
Concerning Disclosures Regarding Energy Consumption and Water Use of 
Certain Home Appliances and Other Products Required Under the Energy 
Policy And Conservation Act (``Appliance Labeling Rule'')'' to ``Part 
305--Energy And Water Use Labeling For Consumer Products Under The 
Energy Policy and Conservation Act (``Energy Labeling Rule'').'' No 
comments opposed this proposal.

F. ENERGY STAR Logo on Heating and Cooling Equipment Labels

    As proposed in the NPRM, the final amendments to Sec.  305.12 allow 
a wider version of the ENERGY STAR logo on heating and cooling 
equipment. This minor, non-substantive change accommodates new ENERGY 
STAR logos developed by the Environmental Protection Agency for these 
products. No comments opposed this proposal.

G. Technical Corrections and Clarifications

    The final amendments also contain four minor, technical corrections 
or clarifications for television labeling, rule language regarding room 
air conditioner capacity, terminology related to the ENERGY STAR 
program, and three-way bulb labeling. First, as noted in the NPRM,\59\ 
the amendments clarify that manufacturers of televisions with screen 
sizes of nine inches or less (measured diagonally) may print or affix 
the EnergyGuide label on the product package.\60\ Second, the 
amendments correct the room air conditioner range table in Appendix E 
to indicate that the applicable room air conditioner capacity for 
labeling purposes is ``Btu per hour,'' not ``Btu per year.'' Third, in 
rule sections related to the ENERGY STAR program, the final rule 
changes the term ``qualified'' to ``certified'' to reflect the 
terminology currently employed by the ENERGY STAR program.\61\ Fourth, 
the amendments change the Rule language for labeling bulbs that operate 
at multiple, separate light levels (e.g., ``3-way'' bulbs) to clarify 
that such language applies to all covered bulb technologies. Currently, 
the Rule's language addressing such bulbs applies only to incandescent 
bulbs.\62\
---------------------------------------------------------------------------

    \59\ 77 FR 15303.
    \60\ The Federal Register notice accompanying the television 
labeling amendments to the Rule stated that televisions smaller than 
nine inches may be labeled on the box rather than on the screen. 
However, the final rule language did not reflect this. See 76 FR at 
1044.
    \61\ Though the Commission did not seek comment on these minor 
changes to Appendix E and the ENERGY STAR-related language, these 
amendments involve minor, technical corrections to the background 
information in the Rule. Accordingly, the Commission finds good 
cause that public comment for these technical, procedural amendments 
is impractical and unnecessary (5 U.S.C. 553(b)(A)(B) and (d)).
    \62\ The Commission proposed this amendment in an August 1, 2011 
notice related to light bulb labeling (76 FR 45715). No comments 
opposed the change.
---------------------------------------------------------------------------

IV. Paperwork Reduction Act

    The 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).\63\ Prior to the FTC's March 15, 2012 
NPRM, OMB had approved the Rule's pre-existing information collection 
requirements through Jan. 31, 2014 (OMB Control No. 3084-0069). As 
described below, the final amendments modify (to a minor degree) the 
Rule's labeling and reporting requirements.\64\ Accordingly, the 
Commission is seeking OMB clearance specific to the Rule amendments.
---------------------------------------------------------------------------

    \63\ 44 U.S.C. 3501 et seq.
    \64\ For reporting requirements, the amendments allow 
manufacturers to submit data to the DOE in lieu of the FTC. This 
will not affect the PRA burden because the Rule, as directed by the 
EPCA, will continue to require reporting to the FTC, even if 
manufacturers may fulfill that requirement by reporting to the DOE.
---------------------------------------------------------------------------

    Manufacturer EnergyGuide Images Online: The amendments require 
manufacturers to post images of their EnergyGuide and Lighting Facts 
labels online. Given approximately 15,000 total models \65\ at an 
estimated five minutes per model,\66\ this requirement will entail a 
burden of 1,250 hours.\67\ Assuming graphic designers at a mean hourly 
wage of $23.41 per hour will implement the additional disclosure 
requirement,\68\ the associated labor cost would be approximately 
$29,300 per year.
---------------------------------------------------------------------------

    \65\ This is an FTC staff estimate based on data submitted by 
manufacturers to the FTC pursuant to the current Rule.
    \66\ This estimate is based on FTC staff's general knowledge of 
industry practices.
    \67\ Unlike retail Web sites that already have established Web 
pages for the products they offer, some manufacturers may have to 
create new Web pages for posting these requirements. Accordingly, 
the burden estimate for manufacturers is higher (five minutes per 
model) than that for catalog sellers (one minute per model).
    \68\  See U.S. Department of Labor, ``Occupational Employment 
and Wages--May 2011'', issued March 27, 2012, Table 1 at p.13 (mean 
hourly wages), available at http://www.bls.gov/news.release/archives/ocwage_03272012.pdf.
---------------------------------------------------------------------------

    Catalog Disclosures: The Commission's past estimate of the Rule's 
burden on catalog sellers (including Internet sellers) has assumed 
conservatively that catalog sellers must enter their data for each 
product into the catalog each year (see, e.g., 71 FR 78057, 78062 (Dec. 
28, 2006)).\69\ The one-time adjustment under the amendments has 
effectively been accounted for by this prior assumption and the 
associated burden estimates for catalog sellers. Thus, the Commission 
believes no modification to existing burden estimates for catalog 
sellers is necessary.
---------------------------------------------------------------------------

    \69\ This assumption is conservative because the number of 
incremental additions to the catalog and their frequency is likely 
to be much lower after initial start-up efforts have been completed.
---------------------------------------------------------------------------

    Estimated annual non-labor cost burden: Any capital costs 
associated with the amendments are likely to be minimal.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
that the Commission provide an Initial Regulatory Flexibility Analysis 
(IRFA) with a Proposed Rule, and a Final Regulatory Flexibility 
Analysis (FRFA) with the final Rule, unless the Commission certifies 
that the Rule will not have a significant economic impact on a 
substantial number of small entities.\70\
---------------------------------------------------------------------------

    \70\ 5 U.S.C. 603-605.
---------------------------------------------------------------------------

    The Commission does not anticipate that the final amendments will 
have a significant economic impact on a substantial number of small 
entities. The Commission recognizes that many affected entities may 
qualify as small businesses under the relevant thresholds. The 
Commission does not expect, however, that the economic

[[Page 2207]]

impact of implementing the amendments will be significant. The 
Commission plans to provide businesses with ample time to implement the 
requirements. In addition, the Commission does not expect that the 
requirements specified in the final amendments will have a significant 
impact on affected entities.
    Although the Commission certified under the RFA that the amendments 
would not, if promulgated, have a significant impact on a substantial 
number of small entities, the Commission has determined, nonetheless, 
that it is appropriate to publish an FRFA in order to explain the 
impact of the amendments on small entities as follows:

A. Description of the Reasons That Action by the Agency Is Being Taken

    The Commission initiated this rulemaking to reduce the Rule's 
reporting burdens, increase the availability of energy labels to 
consumers while minimizing burdens on industry, and generally improve 
existing requirements.

B. Issues Raised by Comments in Response to the IRFA

    The Commission did not receive any comments specifically related to 
the impact of the final amendments on small businesses. Comments that 
involve impacts on all entities are discussed above.

C. Estimate of Number of Small Entities to Which the Amendments Will 
Apply

    Under the Small Business Size Standards issued by the Small 
Business Administration, the standards for various affected entities 
are as follows: refrigerator manufacturers--up to 1,000 employees; 
other appliance manufacturers--up to 500 employees; appliances stores--
up to $10 million in annual receipts; television stores--up to $25.5 
million in annual receipts, and light bulb manufacturers--up to 1,000 
employees. The Commission estimates that fewer than 600 entities 
subject to the proposed Rule's requirements qualify as small 
businesses.

D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The Commission recognizes that the proposed changes will involve 
some burdens on affected entities. However, the amendments should not 
have a significant impact on small entities. Online sellers would have 
to make changes to ensure their Web sites provide the full EnergyGuide 
or Lighting Facts label. However, the Commission has provided them with 
ample time to incorporate the changes into their normal Web site 
updates. There should be minimal capital costs associated with the 
amendments. As estimated above, the proposed Rule imposes new 
requirements on fewer than 600 small businesses. The changes are likely 
to be made by graphic designers.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
proposed Rule. In fact, the proposed amendments should reduce 
duplication between FTC and DOE reporting requirements.

F. Description of Steps Taken To Minimize Significant Economic Impact, 
If Any, on Small Entities, Including Alternatives

    The Commission sought comment and information on the need, if any, 
for alternative compliance methods that would reduce the economic 
impact of the Rule on such small entities. In particular, the 
Commission sought comments on whether it should delay the Rule's 
effective date to provide additional time for small business compliance 
and whether to reduce the amount of information catalog sellers must 
provide. The Commission did not receive any comments on those specific 
issues. However, to minimize the impacts on manufacturers and retailers 
in posting the required labels, the Commission has set the effective 
date for the new catalog requirements at January 15, 2014.

Final Rule

List of Subjects in 16 CFR part 305

    Advertising, Energy conservation, Household appliances, 
Incorporation by reference, Labeling, Reporting and recordkeeping 
requirements.

    For the reasons discussed above, the Commission amends part 305 of 
title 16, Code of Federal Regulations, as follows:

PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER 
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')

0
1. The authority citation for part 305 continues to read as follows:

    Authority: 42 U.S.C. 6294.


0
2. Revise the heading of part 305 to read as set forth above.
0
3. In Sec.  305.3, revise paragraphs (a)(1) and (2) to read as follows:


Sec.  305.3  Description of covered products.

    (a)(1) Electric refrigerator means a cabinet designed for the 
refrigerated storage of food, designed to be capable of achieving 
storage temperatures above 32 [deg]F (0 [deg]C) and below 39 [deg]F 
(3.9 [deg]C), and having a source of refrigeration requiring single 
phase, alternating current electric energy input only. An electric 
refrigerator may include a compartment for the freezing and storage of 
food at temperatures below 32 [deg]F (0 [deg]C), but does not provide a 
separate low temperature compartment designed for the freezing and 
storage of food at temperatures below 8 [deg]F (-13.3 [deg]C).
    (2) Electric refrigerator-freezer means a cabinet which consists of 
two or more compartments with at least one of the compartments designed 
for the refrigerated storage of food and designed to be capable of 
achieving storage temperatures above 32 [deg]F (0 [deg]C) and below 39 
[deg]F (3.9 [deg]C), and with at least one of the compartments designed 
for the freezing and storage of food at temperatures below 8 [deg]F (-
13.3 [deg]C) which may be adjusted by the user to a temperature of 0 
[deg]F (-17.8 [deg]C) or below. The source of refrigeration requires 
single phase, alternating current electric energy input only.
* * * * *

0
4. In Sec.  305.4, revise paragraph (b) introductory text and add 
paragraph (b)(6) to read as follows:


Sec.  305.4  Prohibited acts.

* * * * *
    (b) Subject to enforcement penalties assessed per model per day of 
violation pursuant to 42 U.S.C. 6303 and adjusted for inflation by 
Sec.  1.98 of this chapter, it shall be unlawful for any manufacturer 
or private labeler knowingly to:
* * * * *
    (6) Fail to make a label for a covered product available on a 
publicly accessible Web site in accordance with Sec.  305.6. This 
provision applies only to manufacturers.
* * * * *

0
5. Revise Sec.  305.5 to read as follows:


Sec.  305.5  Determinations of estimated annual energy consumption, 
estimated annual operating cost, and energy efficiency rating, water 
use rate, and other required disclosure content.

    (a) Unless otherwise stated in paragraphs (b), (c), (d), or (e) of 
this section, the content of any disclosures required by this part must 
be determined in accordance with the testing and sampling provisions 
required by the Department of Energy as set forth in subpart B to 10 
CFR part 430, part 431, and 10 CFR 429.11.

[[Page 2208]]

    (b) For any representations required by this part but not subject 
to Department of Energy requirements and not otherwise specified in 
this section, manufacturers and private labelers of any covered product 
must possess and rely upon a reasonable basis consisting of competent 
and reliable scientific tests and procedures substantiating the 
representation.
    (c) For representations of the light output for general service 
light-emitting diode (LED or OLED) lamps, the Commission will accept as 
a reasonable basis scientific tests conducted according to IES LM79.
    (d) Determinations of estimated annual energy consumption and 
estimated annual operating (energy) costs of televisions must be based 
on the procedures contained in the ENERGY STAR Version 4.2 test, which 
is comprised of the ENERGY STAR Program Requirements, Product 
Specification for Televisions, Eligibility Criteria Version 4.2 
(Adopted April 30, 2010); the Test Method (Revised Aug-2010); and the 
CEA Procedure for DAM Testing: For TVs, Revision 0.3 (Sept. 8, 2010). 
Annual energy consumption and cost estimates must be derived assuming 5 
hours in on mode and 19 hours in sleep (standby) mode per day. These 
ENERGY STAR requirements are incorporated by reference into this 
section. The Director of the Federal Register has approved these 
incorporations by reference in accordance with 5 U.S.C. 552(a) and 1 
CFR part 51. Copies of the test procedure may be inspected or obtained 
at the United States Environmental Protection Agency, ENERGY STAR 
Hotline (6202J), 1200 Pennsylvania Avenue NW., Washington, DC 20460, or 
at http://www.energystar.gov/ia/partners/product_specs/program_reqs/Televisions_Program_Requirements.pdf [Telephone: ENERGY STAR Hotline: 
1-888-782-7937]; at the Federal Trade Commission, Consumer Response 
Center, Room 130, 600 Pennsylvania Avenue NW., Washington, DC 20580 
[Telephone: 1-202-326-2830]; and at the National Archives and Records 
Administration, at http://www.archives.gov/federal-register/cfr/ibr-locations.html [Telephone: 1-202-741-6030].
    (e) Representations for ceiling fans under section 305.13 must be 
derived from procedures in 10 CFR 430.23.


0
6. Revise Sec.  305.6 to read as follows:


Sec.  305.6  Duty to provide labels on Web sites.

    For each covered product that a manufacturer distributes in 
commerce after July 15, 2013, which is required by this part to bear an 
EnergyGuide or Lighting Facts label, the manufacturer must make a copy 
of the label available on a publicly accessible Web site in a manner 
that allows catalog sellers to hyperlink to the label or download it 
for use in Web sites or paper catalogs. The label for each specific 
model must remain on the Web site for six months after production of 
that model ceases.

0
7. In Sec.  305.8, revise paragraphs (a) and (b)(1) to read as follows:


Sec.  305.8  Submission of data.

    (a)(1) Except as provided in paragraphs (a)(2) and (3) of this 
section, each manufacturer of a covered product subject to the 
disclosure requirements of this part and subject to Department of 
Energy certification requirements in 10 CFR part 429 shall submit 
annually a report for each model in current production containing the 
same information that must be submitted to the Department of Energy 
pursuant to 10 CFR part 429 for that product, and that the Department 
has identified as public information pursuant to 10 CFR part 429. In 
lieu of submitting the required information to the Commission as 
required by this section, manufacturers may submit such information to 
the Department of Energy via the Compliance and Certification 
Management System (CCMS) at https://regulations.doe.gov/ccms as 
provided by 10 CFR 429.12.
    (2) Manufacturers of ceiling fans shall submit annually a report 
containing the brand name, model number, diameter (in inches), wattage 
at high speed excluding any lights, airflow (capacity) at high speed 
for each basic model in current production, and starting serial number, 
date code or other means of identifying the date of manufacture with 
the first submission for each basic model. In lieu of submitting the 
required information to the Commission as required by this section, 
manufacturers may submit such information to the Department of Energy 
via the Compliance and Certification Management System (CCMS) at 
https://regulations.doe.gov/ccms as provided by 10 CFR 429.12.
    (3) This section does not require reports for televisions and 
general service light-emitting diode (LED or OLED) lamps.
    (b)(1) All data required by Sec.  305.8(a) except serial numbers 
shall be submitted to the Commission annually, on or before the 
following dates:

------------------------------------------------------------------------
                                                 Deadline  for data
             Product category                        submission
------------------------------------------------------------------------
Refrigerators.............................  Aug. 1.
Refrigerators-freezers....................  Aug. 1.
Freezers..................................  Aug. 1.
Central air conditioners..................  July 1.
Heat pumps................................  July 1.
Dishwashers...............................  June 1.
Water heaters.............................  May 1.
Room air conditioners.....................  July 1.
Furnaces..................................  May 1.
Pool heaters..............................  May 1.
Clothes washers...........................  Oct. 1.
Fluorescent lamp ballasts.................  Mar. 1.
Showerheads...............................  Mar. 1.
Faucets...................................  Mar. 1.
Water closets.............................  Mar. 1.
Ceiling fans..............................  Mar. 1.
Urinals...................................  Mar. 1.
Metal halide lamp fixtures................  Sept. 1.
General service fluorescent lamps.........  Mar. 1.
Medium base compact fluorescent lamps.....  Mar. 1.
General service incandescent lamps........  Mar. 1.
------------------------------------------------------------------------

* * * * *

0
8. In Sec.  305.11, revise paragraph (f)(12)(iii) to read as follows:


Sec.  305.11  Labeling for refrigerators, refrigerator-freezers, 
freezers, dishwashers, clothes washers, water heaters, room air 
conditioners, and pool heaters.

* * * * *
    (f) * * *
    (12) * * *
    (iii) The manufacturer or private labeler may include the ENERGY 
STAR logo on the bottom right corner of the label for certified 
products. The logo must be 1 inch by 1 inch in size. Only manufacturers 
that have signed a Memorandum of Understanding with the Department of 
Energy or the Environmental Protection Agency may add the ENERGY STAR 
logo to labels on certified covered products; such manufacturers may 
add the ENERGY STAR logo to labels only on those covered products that 
are contemplated by the Memorandum of Understanding.


0
9. In Sec.  305.12, revise paragraphs (f)(8)(iii) and (g)(9)(iii) to 
read as follows:


Sec.  305.12  Labeling for central air conditioners, heat pumps, and 
furnaces.

* * * * *
    (f) * * *
    (8) * * *
    (iii) The manufacturer or private labeler may include the ENERGY 
STAR logo on the bottom right corner of the label for certified 
products. The logo must be 1 inch high and no greater than 3 inches 
wide. Only manufacturers that have signed a Memorandum of Understanding 
with the Department of

[[Page 2209]]

Energy or the Environmental Protection Agency may add the ENERGY STAR 
logo to labels on certified covered products; such manufacturers may 
add the ENERGY STAR logo to labels only on those covered products that 
are contemplated by the Memorandum of Understanding.
    (g) * * *
    (9) * * *
    (iii) The manufacturer or private labeler may include the ENERGY 
STAR logo on the bottom right corner of the label for certified 
products. The logo must be 1 inch high and no greater than 3 inches 
wide. Only manufacturers that have signed a Memorandum of Understanding 
with the Department of Energy or the Environmental Protection Agency 
may add the ENERGY STAR logo to labels on certified covered products; 
such manufacturers may add the ENERGY STAR logo to labels only on those 
covered products that are contemplated by the Memorandum of 
Understanding.


0
10. In Sec.  305.15, revise paragraphs (b)(3)(vi) and (d)(4) to read as 
follows:


Sec.  305.15  Labeling for lighting products.

* * * * *
    (b) * * *
    (3) * * *
    (vi) The ENERGY STAR logo as illustrated in Prototype Label 6 to 
appendix L for certified products, if desired by the manufacturer or 
private labeler. Only manufacturers or private labelers that have 
signed a Memorandum of Understanding with the Department of Energy or 
the Environmental Protection Agency may add the ENERGY STAR logo to 
labels on certified covered products; such manufacturers or private 
labelers may add the ENERGY STAR logo to labels only on those products 
that are covered by the Memorandum of Understanding;
* * * * *
    (d) * * *
    (4) For any covered product that is a general service lamp and 
operates at discrete, multiple light levels (e.g., 800, 1600, and 2500 
lumens), the light output, energy cost, and wattage disclosures 
required by this section must be provided at each of the lamp's levels 
of light output and the lamp's life provided on the basis of the 
shortest lived operating mode. The multiple numbers shall be separated 
by a ``/'' (e.g., 800/1600/2500 lumens) if they appear on the same line 
on the label.
* * * * *

0
11. In Sec.  305.17, revise paragraph (d) introductory text and 
paragraphs (e)(1) and (g), and add paragraph (h) to read as follows:


Sec.  305.17  Television labeling.

* * * * *
    (d) Label types. Except as provided in paragraph (i), the labels 
must be affixed to the product in the form of either an adhesive label, 
cling label, or alternative label as follows:
* * * * *
    (e) Placement--(1) In general. Except as provided in paragraph (i), 
all labels must be clear and conspicuous to consumers viewing the 
television screen from the front.
* * * * *
    (g) Distribution of Labels: Consistent with section 305.6 of this 
part, for each covered television that a manufacturer distributes in 
commerce which is required by this part to bear an EnergyGuide label, 
the manufacturer must make a copy of the label available on a publicly 
accessible Web site in a manner that allows catalog sellers to 
hyperlink to the label or download it for use in Web sites or paper 
catalogs. The label for each specific model must remain on the Web site 
for six months after production of the model ceases.
    (h) Labels for small televisions: For television with screens 
measuring nine inches or less diagonally, manufacturers may print the 
label required by this section on the primary display panel of the 
product's packaging or affix a label to the packaging in lieu of 
affixing a label to the television screen or bezel. The size of the 
label may be scaled to fit the packaging size as appropriate, as long 
as it remains clear and conspicuous.

0
12. Revise Sec.  305.20 to read as follows:


Sec.  305.20  Paper catalogs and Web sites.

    (a) Covered products offered for sale on the Internet. Any 
manufacturer, distributor, retailer, or private labeler who advertises 
a covered product on an Internet Web site in a manner that qualifies as 
a catalog under this Part shall disclose energy information as follows:
    (1) Content. (i) Products required to bear EnergyGuide or Lighting 
Facts labels. All Web sites advertising covered refrigerators, 
refrigerator-freezers, freezers, room air conditioners, clothes 
washers, dishwashers, ceiling fans, pool heaters, central air 
conditioners, heat pumps, furnaces, general service lamps, and 
televisions must display, for each model, a recognizable and legible 
image of the label required for that product by this Part. The Web site 
may hyperlink to the image of the label using the sample EnergyGuide 
and Lighting Facts icons depicted in appendix L. The Web site must 
hyperlink the image in a way that does not require consumers to save 
the hyperlinked image in order to view it.
    (ii) Products not required to bear EnergyGuide or Lighting Facts 
labels. All Web sites advertising covered showerheads, faucets, water 
closets, urinals, general service fluorescent lamps, fluorescent lamp 
ballasts, and metal halide lamp fixtures must include the following 
disclosures for each covered product:
    (A) Showerheads, faucets, water closets, and urinals. The product's 
water use, expressed in gallons and liters per minute (gpm and L/min) 
or per cycle (gpc and L/cycle) or gallons and liters per flush (gpf and 
Lpf) as specified in Sec.  305.16.
    (B) General service fluorescent lamps, fluorescent lamp ballasts, 
and metal halide lamp fixtures. A capital letter ``E'' printed within a 
circle.
    (2) Format. The required Web site disclosures, whether label image, 
icon, or text, must appear clearly and conspicuously and in close 
proximity to the covered product's price on each Web page that contains 
a detailed description of the covered product and its price. The label 
and hyperlink icon must conform to the prototypes in appendix L, but 
may be altered in size to accommodate the Web page's design, as long as 
they remain clear and conspicuous to consumers viewing the page.
    (b) Covered products offered for sale in paper catalogs. Any 
manufacturer, distributor, retailer, or private labeler that advertises 
a covered product in a paper publication that qualifies as a catalog 
under this Part shall disclose energy information as follows:
    (1) Content. (i) Products required to bear EnergyGuide or Lighting 
Facts labels. All paper catalogs advertising covered products required 
by this Part to bear EnergyGuide or Lighting Facts labels illustrated 
in appendix L (refrigerators, refrigerator-freezers, freezers, room air 
conditioners, clothes washers, dishwashers, ceiling fans, pool heaters, 
central air conditioners, heat pumps, furnaces, general service 
fluorescent lamps, general service lamps, and televisions) must either 
display an image of the full label prepared in accordance with this 
Part, or make a text disclosure as follows:
    (A) Refrigerator, refrigerator-freezer, and freezer. The capacity 
of the model determined in accordance with Sec.  305.7, the estimated 
annual operating cost determined in accordance with Sec.  305.5 and 
appendix K of this Part, and a disclosure stating ``Your energy cost 
depends on your utility rates and use. The estimated cost is based on 
----

[[Page 2210]]

cents per kWh. For more information, visit www.ftc.gov/energy.''
    (B) Room air conditioners and water heaters. The capacity of the 
model determined in accordance with Sec.  305.7, the estimated annual 
operating cost determined in accordance with Sec.  305.5 and appendix K 
of this Part, and a disclosure stating ``Your operating costs will 
depend on your utility rates and use. The estimated operating cost is 
based on a [electricity, natural gas, propane, or oil] cost of [$ ---- 
per kWh, therm, or gallon]. For more information, visit www.ftc.gov/energy.''
    (C) Clothes washers and dishwashers. The capacity of the model for 
clothes washers determined in accordance with Sec.  305.7 and the 
estimated annual operating cost for clothes washers and dishwashers 
determined in accordance with Sec.  305.5 and appendix K, and a 
disclosure stating ``Your energy cost depends on your utility rates and 
use. The estimated cost is based on [4 washloads a week for 
dishwashers, or 8 washloads a week for clothes washers] and -- cents 
per kWh for electricity and $-- per therm for natural gas. For more 
information, visit www.ftc.gov/energy.''
    (D) General service fluorescent lamps or general service lamps. All 
the information concerning that lamp required by Sec.  305.15 of this 
part to be disclosed on the lamp's package, and, for general service 
lamps, a disclosure stating ``Your energy cost depends on your utility 
rates and use. The estimated cost and life is based on 11 cents per kWh 
and 3 hours of use per day. For more information, visit www.ftc.gov/energy.'' For the ``Light Appearance'' disclosure required by Sec.  
305.15(b)(3)(iv), the catalog need only disclose the lamp's correlated 
color temperature in Kelvin (e.g., 2700 K). General service fluorescent 
lamps or incandescent reflector lamps must also include a capital 
letter ``E'' printed within a circle and the statement described in 
Sec.  305.15(d)(1).
    (E) Ceiling fans. All the information required by Sec.  305.13.
    (F) Televisions. The estimated annual operating cost determined in 
accordance with Sec.  305.5 and a disclosure stating ``Your energy cost 
depends on your utility rates and use. The estimated cost is based on 
11 cents per kWh and 5 hours of use per day. For more information, 
visit www.ftc.gov/energy.''
    (G) Central air conditioners, heat pumps, and furnaces (including 
boilers), and pool heaters. The capacity of the model determined in 
accordance with Sec.  305.7 and the energy efficiency or thermal 
efficiency ratings determined in accordance with Sec.  305.5 on each 
page that lists the covered product.
    (ii) Products not required to bear EnergyGuide or Lighting Facts 
labels. All paper catalogs advertising covered products not required by 
this Part to bear labels with specific design characteristics 
illustrated in appendix L (showerheads, faucets, water closets, 
urinals, fluorescent lamp ballasts, and metal halide lamp fixtures) 
must make a text disclosure for each covered product identical to those 
required for Internet disclosures under Sec.  305.20(a)(1)(ii).
    (2) Format. The required disclosures, whether text, label image, or 
icon, must appear clearly and conspicuously on each page that contains 
a detailed description of the covered product and its price. If a 
catalog displays an image of the full label, the size of the label may 
be altered to accommodate the catalog's design, as long as the label 
remains clear and conspicuous to consumers. For text disclosures made 
pursuant to Sec.  305.20(b)(1)(i) and (ii), the required disclosure may 
be displayed once per page per type of product if the catalog offers 
multiple covered products of the same type on a page, as long as the 
disclosure remains clear and conspicuous.

Appendix E to Part 305 [Amended]


0
13. In Appendix E, revise the column heading ``Manufacturer's rated 
cooling capacity in Btu's/yr'' in the teable to read ``Manufacturer's 
rated cooling capacity in Btu's/hr.''

Appendix L to Part 305 [Amended]


0
14. In Appendix L, remove ``Sample Icon 13 Web site Link Icon'' and add 
in its place ``Sample EnergyGuide Icon For Use on Web sites'' and 
``Sample Lighting Facts Icon For Use on Web sites'' to read as follows:

Appendix L to Part 305--Sample Labels

* * * * *
[GRAPHIC] [TIFF OMITTED] TR10JA13.000


SAMPLE ENERGYGUIDE ICON FOR USE ON WEB SITES

[GRAPHIC] [TIFF OMITTED] TR10JA13.001


SAMPLE LIGHTING FACTS ICON FOR USE ON WEBSITES

* * * * *


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2013-00116 Filed 1-9-13; 8:45 am]
BILLING CODE 6750-01-P