[Federal Register Volume 60, Number 55 (Wednesday, March 22, 1995)]
[Proposed Rules]
[Pages 15200-15205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7058]




Federal Register / Vol. 60, No. 55 / Wednesday, March 22, 1995 / 
Proposed Rules 
[[Page 15200]] 

FEDERAL TRADE COMMISSION

16 CFR 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'')

AGENCY: Federal Trade Commission.

ACTION: Proposed rule and request for comments.

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

SUMMARY: The Federal Trade Commission (``Commission'') proposes 
amendments to the Appliance Labeling Rule (``Rule''), in response to a 
petition and a separate written request, to allow manufacturers of 
general service incandescent lamps (including incandescent reflector 
lamps) with a design voltage other than 120 volts an option as to where 
on the package specific disclosures must be made; to clarify the light 
output measure that manufacturers of incandescent reflector lamps must 
disclose on lamp labels; to delete the requirement that the lumen 
disclosure for incandescent reflector lamps be followed by the term 
``at beam spread;'' and, to allow manufacturers of incandescent 
reflector lamps the option of adding a reference to ``beam spread'' to 
the Advisory Statement about saving energy costs. The Commission is 
soliciting written data, views and arguments concerning these 
amendments.

DATES: Written comments must be submitted on or before April 21, 1995.

ADDRESSES: Written comments should be submitted to Office of the 
Secretary, Federal Trade Commission, Room 159, Sixth and Pennsylvania 
Avenue NW., Washington, DC 20580, telephone number 202/326-2506. 
Comments should be identified as ``16 CFR Part 305--Comment--Lamp 
Products.'' Written comments should be provided, when feasible and not 
burdensome, in five copies.

FOR FURTHER INFORMATION CONTACT: Kent C. Howerton, Attorney, Division 
of Enforcement, Bureau of Consumer Protection, Room S-4631, Federal 
Trade Commission, Washington, D.C. 20580, telephone 202/326-3013.

SUPPLEMENTARY INFORMATION:

I. Introduction

    On May 13, 1994, the Commission published amendments to bring 
certain lamp products under the Rule's coverage,\1\ which will become 
effective on May 15, 1995. The Commission initiated the proceeding to 
bring certain lamp products under the Rule's coverage in response to a 
directive in the Energy Policy Act of 1992 (``EPA 92'').\2\

    \1\Final rule and Statement of Basis and Purpose (``SBP''), 59 
FR 25176. On December 29, 1994, the Commission published minor, 
technical amendments to resolve certain inconsistencies in paragraph 
numbering and language that had arisen during the course of four 
recent proceedings amending the Rule. 59 FR 67524.
    \2\Pub. L. 102-486, 106 Stat. 2776, 2817-2832 (Oct. 24, 1992) 
(codified at 42 U.S.C. 6201, 6291-6309).
---------------------------------------------------------------------------

    In a petition dated January 31, 1995 (``Petition''), the Lamp 
Section of The National Electrical Manufacturers Association 
(``NEMA'')\3\ requested that the Commission:

    \3\NEMA is a trade association representing the nation's largest 
manufacturers of lamp products. Its members produce more than 90 
percent of the lamp products subject to the lamp labeling 
requirements of the Appliance Labeling Rule. Petition at 2.

    (1) allow manufacturers of specific types of lamp products an 
option as to where on the package specific disclosures must be made; 
and
    (2) stay, through November 30, 1995, ``compliance against 
manufacturers who, in good faith and despite the exercise of due 
diligence, are unable to change all of their lamp packages prior to 
the May 15, 1995 effective date of the Lamp Labeling Rule.''

    NEMA requested expedited treatment of its request to enable 
manufacturers to complete the design of affected lamp packages and to 
order necessary printing plates and packaging inventory, costing 
millions of dollars, as soon as possible.
    In a separate letter to the Commission's staff dated January 30, 
1995, NEMA also requested a written staff opinion concerning several 
issues on which staff already has informally advised NEMA and various 
lamp manufacturers. One item raised in this letter, concerning 
disclosure requirements for incandescent reflector lamps (spotlights 
and floodlights), raises issues that the Commission determined could 
not be resolved, as NEMA requested, simply by a staff opinion letter. 
The Commission, therefore, has included consideration of these issues 
in this Notice.
    For the reasons discussed below, the Commission proposes adopting 
amendments to the lamp labeling requirements of the Appliance Labeling 
Rule that would give manufacturers of general service incandescent 
lamps (including incandescent reflector lamps) greater flexibility in 
making disclosures for lamps that have a design voltage of other than 
120 volts. The amended Rule would continue to require that specific 
information about each covered lamp's operation at 120 volts be 
disclosed on product labels, as required by EPA 92, but the disclosures 
would not have to be included on the principal panel of the packaging. 
In addition, the Commission proposes adopting amendments to the Rule to 
clarify the light output measure in lumens that manufacturers of 
incandescent reflector lamps must disclose on lamp labels, to delete 
the requirement that the lumen disclosure for incandescent reflector 
lamps be followed by the term ``at beam spread,'' and to allow 
manufacturers of incandescent reflector lamps the option of adding a 
reference to ``beam spread'' to the Advisory Statement about how to 
save energy costs that must appear on the principal display panel of 
each lamp package. The latter amendments primarily would correct an 
inadvertent technical error and effectuate the original intent of the 
Rule's requirements. The Commission is seeking written public comments 
on these proposed amendments, and it will announce its final decision 
regarding the proposed amendments after reviewing the comments it 
receives.
    In light of these proposed amendments, the difficulties 
manufacturers of incandescent lamps have encountered in complying with 
both the requirements of the Appliance Labeling Rule and the 
Commission's preexisting Light Bulb Rule, 16 CFR Part 409, and the need 
to minimize relabeling costs, the Commission has determined to issue an 
Enforcement Policy Statement. In a document published elsewhere in this 
issue of the Federal Register, the Enforcement Policy Statement 
explains that the Commission has determined to not take law enforcement 
action until December 1, 1995 against manufacturers of general service 
incandescent lamp products (including incandescent reflector lamps) for 
labeling not in compliance with the disclosure requirements of the 
Appliance Labeling Rule. This determination does not affect any other 
compliance obligations imposed by the lamp labeling requirements of the 
Rule that will become effective on May 15, 1995.

II. Background

    On May 13, 1994, the Commission published final labeling rules for 
various types of lamp products (``light bulbs''), including general 
service fluorescent lamps, general service incandescent lamps 
(including reflector incandescent lamps), and medium base compact 
fluorescent lamps,\4\ as [[Page 15201]] mandated by EPA 92.\5\ The 
Commission issued the lamp labeling rules as amendments to the 
Appliance Labeling Rule, 16 CFR Part 305. These lamp labeling 
amendments will become effective on May 15, 1995.\6\

    \4\59 FR 25176. In the current Notice, citations to evidence are 
based on the citation system used in the SBP for these lamp labeling 
requirements. Documents are numbered sequentially, such as Document 
No. G-1, Document No. G-2. Comments are cited by an identification 
of the commentor, the comment number and the relevant page 
number(s), e.g., ``Angelo, G-1, 1-3.'' Supplemental comments are 
designated in addition as: ``(Supp.).'' Discussion by more than one 
party in the transcript of the Public Workshop Conference is cited 
by a reference to the transcript and the relevant page number(s), 
e.g., ``Tr., 15-20.'' Discussion by one party in the transcript is 
cited by an identification of the party, a reference to the 
transcript and the relevant page number(s), e.g., ``Osram (Tr.), 80-
81.''
    \5\EPA 92 amended the Energy Policy and Conservation Act of 1975 
(``EPCA''). 42 U.S.C. 6291 et seq.
    \6\The statute required the Commission's rules to become 
effective 12 months after their publication in the Federal Register. 
Because May 13, 1995, falls on a Saturday, the effective date is 
Monday, May 15. 42 U.S.C. 6294(a)(2)(C)(i).
---------------------------------------------------------------------------

    In the Statement of Basis and Purpose for the lamp labeling 
amendments, the Commission determined to require disclosures on labels 
of specific information relating to the performance of these lamp 
products. In brief, the amendments require disclosures on the primary 
display panel of package labels of light output (in lumens), energy use 
(in watts), and life (in hours), plus an Advisory Statement that 
explains how purchasers can save on energy costs. For incandescent 
reflector lamps (used to focus or spread light on a particular object 
or objects), the amendments additionally require that the disclosure of 
light output (in lumens) be for the lamp's ``beam spread,'' and that 
the disclosure of lumens be followed clearly and conspicuously by the 
phrase ``at beam spread.''
    Based on the statutory directive that the Commission promulgate 
these labeling rules and that labeling information be based on 
performance at 120 volts, the lamp labeling amendments to the Rule 
require that the disclosures for general service incandescent lamps 
(including incandescent reflector lamps) appear on the primary display 
panel based on operation at 120 volts, regardless of the lamp's design 
voltage. The amendments, however, allow manufacturers the option of 
adding disclosures based on operation at a different design voltage, 
either on the primary display panel or on a separate panel on the 
package.
    The lamp labeling amendments to the Appliance Labeling Rule overlap 
certain disclosures already required on packages of non-reflector 
general service incandescent bulbs by the Commission's Light Bulb 
Rule.\7\ This Rule, unlike the lamp labeling amendments to the 
Appliance Labeling Rule, requires that package labels clearly and 
conspicuously disclose average initial wattage, light output expressed 
in average initial lumens, and average laboratory life expressed in 
hours, based on operation at the bulb's stated design voltage.\8\ Under 
the Light Bulb Rule, the disclosures must appear on at least two panels 
of the outer sleeve or container in which bulbs are displayed and 
additionally on all panels of the inner and the outer sleeve that 
contain any reference to wattage, lumens, life or voltage. The 
disclosures, however, need not be made on the primary display panel.\9\

    \7\16 CFR Part 409. The Light Bulb Rule, issued in 1970, was 
intended to prevent deceptive or unfair practices in the sale of 
incandescent light bulbs. Other types of lamps covered by the 
Appliance Labeling Rule amendments (including incandescent reflector 
lamps) are not covered by the Light Bulb Rule.
    \8\Id. at 409.1 n. 1.
    \9\Id. at 409.1 n. 4.
---------------------------------------------------------------------------

    When it promulgated the lamp labeling amendments to the Appliance 
Labeling Rule, the Commission noted two provisions of the Light Bulb 
Rule that are different from the lamp labeling requirements under the 
Appliance Labeling Rule. The first provision concerns the format 
requirements for disclosing the wattage, light output and laboratory 
life ratings of general service incandescent nonreflector lamps. The 
second provision concerns the Light Bulb Rule's requirement that the 
testing for, and required disclosures of, wattage, light output and 
laboratory life ratings of general service nonreflector lamps be at the 
lamp's design voltage. Because these different rule provisions are not 
contradictory, the Commission stated that manufacturers will be able to 
comply with both without incurring significant additional costs.<SUP>10

    \10\59 FR at 25177.
---------------------------------------------------------------------------

    Nevertheless, the Commission stated that, following that rulemaking 
proceeding, it would consider whether any additional action is 
necessary concerning the Light Bulb Rule.<SUP>11 To amend or repeal the 
Light Bulb Rule, the Commission's Rules of Practice require the 
Commission to use different, and more lengthy, rulemaking procedures 
than those specified in EPA 92 for the lamp labeling amendments to the 
Appliance Labeling Rule. Thus, because of the statutory deadline for 
issuing the lamp labeling rules under EPA 92, the Commission determined 
to review the Light Bulb Rule in a separate proceeding. The Commission 
has scheduled the Light Bulb Rule for review during 1995 as part of the 
Commission's ongoing program to review all Commission rules and 
guides.\12\

    \11\59 FR at 25176.
    \12\60 FR 6463 (Feb. 2, 1995).
---------------------------------------------------------------------------

III. Petition

A. NEMA's Request (Disclosures at 120 Volts)

    NEMA's Petition requests that the Commission approve an optional, 
but not required, labeling format scheme for packages of incandescent 
lamp products with a design voltage other than 120 volts. NEMA states 
that manufacturers design some lamp products for operation at either 
125 or 130 volts,\13\ and that line voltages of other than 120 volts 
are prevalent in certain regions of the country.\14\ The Petition also 
notes that the Light Bulb Rule requires disclosures of a general 
service incandescent lamp's light output, wattage and life, measured at 
design voltage. Based on these assertions, the Petition contends that 
the lamp labeling requirements in the Appliance Labeling Rule, ``by 
requiring that a lamp package's principal display panel contain 
performance ratings measured at 120 volts, and designated `at 120 
volts,' will cause considerable confusion for consumers who use lamps 
designed for the local line voltage which is other than 120 volts.'' 
NEMA contends that, because light output of a given lamp is lower at 
120 volts than at higher voltages, consumers in non-120 volt regions 
may seek a higher wattage lamp than needed to obtain the light output 
they desire. NEMA asserts that this would undermine the energy 
efficiency objectives of the Appliance Labeling Rule.\15\

    \13\Petition at 2. The voltage provided by electric utilities in 
the United States for lighting purposes is primarily 120 volts, but 
may range from approximately 115 to 125 volts. Voltage is not a 
characteristic of a lamp product, but the operation of a lamp is 
affected by the voltage at which it operates. For a given lamp, the 
higher the voltage, the higher the light output in lumens, the 
higher the wattage, and the shorter the life.
    \14\Id. NEMA states that the prevailing voltage for these areas 
is 125 volts, though actual line voltage within these areas varies. 
Id. at 2 note 3.
    \15\Id.
---------------------------------------------------------------------------

    NEMA's Petition states that consumers in regions with line voltages 
other than 120 volts should be able to find lamp packages labeled on 
the principal display panel with performance ratings measured at the 
lamp's design voltage. NEMA claims that, under the Appliance Labeling 
Rule, this would require manufacturers to provide dual-voltage 
information for each performance rating on the primary display panel. 
In support of its Petition, [[Page 15202]] NEMA submitted examples of 
labels that contain performance disclosures on the primary display 
panel based on operation at both 120 volts and the lamp's different 
design voltage. NEMA believes the resulting complexity of the package 
is certain to confuse even the most energy-conscious consumer.\16\

    \16\Id.
---------------------------------------------------------------------------

    NEMA proposes an alternative, optional disclosure format to comply 
with the labeling requirements under Section 305.11(e)(1)(iii) of the 
Appliance Labeling Rule. Specifically:

    As an optional disclosure under Section 305.11(e)(1)(iii), for 
lamps with a design voltage other than 120 volts, light output, 
energy used, and life ratings displayed on the principal display 
panel could be measured at design voltage, provided that such 
ratings measured at 120 volts are disclosed on another panel of the 
package, and that the principal display panel clearly and 
conspicuously identifies the lamp's design voltage and clearly and 
conspicuously contains the following explanatory statement:

    [125/130] volt design. At 120 v., light output and efficiency are 
noticeably reduced. See [side/back] panel for data at 120 v.\17\

    \17\Id. at 6.
---------------------------------------------------------------------------

    NEMA also states it would accept a more detailed explanatory 
statement, which could read:
    This product is designed for [125/130] volts. When used on the 
normal line voltage of 120 volts, the light output and efficiency are 
noticeably reduced. See [side/back] panel for 120 volt ratings.<SUP>18

    \18\Id. at 6 note 6.
---------------------------------------------------------------------------

    NEMA believes that its proposal fully satisfies the Commission's 
objectives and the requirements of Section 324(a)(2)(C)(i) of EPCA, 
which states: ``Labeling information for incandescent lamps shall be 
based on performance when operated at 120 volt input, regardless of the 
rated lamp voltage.'' NEMA also believes that its proposal provides 
accurate and meaningful information.<SUP>19

    \19\Id. at 5-6.
---------------------------------------------------------------------------

B. Background

    The issue of the voltage at which the proposed disclosures of 
watts, light output, life and energy efficiency should be based was not 
specifically raised in the Notice of Proposed Rulemaking 
(``NPR'').<SUP>20 However, this issue was the subject of considerable 
discussion during the Public Workshop the Commission conducted on 
January 19, 1994, as part of the rulemaking proceeding, as well as in 
two post-Workshop comments.<SUP>21 In addition, the statutory language 
mandating the information disclosures is explicit in requiring 
disclosures to be based on operation at 120 volts, regardless of the 
lamp's design voltage.

    \20\In the NPR, 58 FR 60147 (1993), the Commission proposed 
requiring disclosure of an energy efficiency number. Based on the 
definition of ``lamp efficacy'' in the EPA 92 amendments to EPCA, 
the NPR proposed requiring disclosure on lamp packages of an 
``Energy Index,'' based on each lamp product's lumens per watt 
rating. When it issued the final labeling rules, the Commission 
determined not to require this disclosure.
    \21\See (Tr.), 35-65, 201-205. See also Osram (G-11) (Supp.), 2; 
NEMA (G-10) (Supp.), 19-21.
---------------------------------------------------------------------------

    Several industry representatives supported requiring disclosure of 
wattage, light output in lumens, and average laboratory life based on 
operation of the lamp at its design voltage, if the design voltage is 
other than 120 volts.<SUP>22 They suggested that only the energy index 
proposed in the NPR (i.e., lumens per watt) should be disclosed at 120 
volts, regardless of the lamp's design voltage.<SUP>23 They argued that 
only the efficiency measure (energy index) is covered by the 
requirement in EPCA that labeling disclosures for incandescent lamps be 
measured at 120 volts.<SUP>24 Other participants contended, however, 
that for general service incandescent lamps the labeling rules should 
require that the wattage, light output, life and energy index 
disclosures be made at 120 volts because most purchasers operate lamps 
at 120 volts and performance claims should be based on a uniform 
standard.<SUP>25

    \22\NEMA (Tr.), 39-40, 54, (Supp.), G-10, 19-21 (the Commission 
views these statements as NEMA's final position on the issue); Osram 
(Tr.), 41, (Supp.), G-11, 2. See also Angelo, G-1, 2 (but note that 
Angelo later recommends disclosures at 120 volts in the Workshop at 
Tr. 57); GE, G-2, 7, (Ans.), 1; Osram (Tr.), 41, 58-59, (Supp.), G-
11, 2; ACEEE, GG-1, 1 (ACEEE, too, later recommends in the Workshop 
that all disclosures be at 120 volts, (Tr.), 59); OR DOE, GG-13, 7; 
WA SEO, GG-18, 1.
    \23\See note 20, supra.
    \24\In its supplemental comment, NEMA stated:
    A question was raised at the Workshop as to whether the last 
sentence of section [324(a)(2)(C)(i) of EPCA] should be interpreted 
to apply only to energy efficiency labeling or to all items required 
to be disclosed under the Commission's regulations. There is no 
published legislative history interpreting this provision. However, 
NEMA representatives were involved in extensive discussions with 
energy efficiency organizations and congressional staff over the 
language of the Energy Policy Act. Throughout those discussions, 
everyone's attention was focused on how best to educate consumers to 
select the most energy efficient lamp. NEMA representatives sought 
inclusion of the requirement that all lamps' efficiency ratings be 
based on a comparable operation at 120 volts. NEMA's objective was 
to prevent some manufacturers or importers from disguising low 
efficiency lamps by claiming efficiency ratings at voltages greater 
than 120 volts. NEMA was concerned that if a consumer faced 120 and 
130 volt lamps in the same store, it be clear that the 130 volt lamp 
would be substantially less efficient when operated at 120 volts 
(Tr. 40-41). NEMA did not intend to force manufacturers to cease 
production or alter existing ratings of higher voltage lamps for use 
in niche markets. Thus, in construing section [324(a)(2)(C)(i)] of 
EPCA, NEMA urges that the provision be fairly read in the context of 
the legislative discussions and that congressional intent is best 
served by requiring that only lumens per watt measurements be based 
on 120 volts operation.
    NEMA (Supp.), G-10, 20-21. See also GE (Supp.), G-9, Ex. 4; 
Osram (Tr.), 51-52 (most purchasers do not see mix of products based 
on different voltages on store shelves, but purpose of the statute's 
requirement was to require that efficiency be based on constant 
voltage for situations when mix of products were on shelves at same 
time). But see NEMA, G-3, 45 (``The Commission's regulations should 
expressly require manufacturers of incandescent lamps to disclose 
all performance characteristics when operated at 120 volts, 
regardless of the rated voltage.'').
    \25\See MN DPS, GG-9, 2; NEPS (Tr.), 44; LRC (Tr.), 44, 54-55; 
Angelo (Tr.), 57; ACEEE (Tr.), 59; IES (Tr.), 62.
---------------------------------------------------------------------------

    Both the statute and its legislative history are silent about the 
specific purpose and meaning of the mandate that labeling information 
shall be based on operation at 120 volts. The Commission, therefore, 
analyzed the record evidence concerning the methods of sales 
distribution and the uses of these lamp products, as well as the manner 
in which purchasers could best be provided with accurate and important 
information to enable them ``to select the most energy efficient lamps 
which meet their requirements.''<SUP>26

    \26\42 U.S.C. 6294(a)(2)(C)(i).
---------------------------------------------------------------------------

    According to the rulemaking record, the majority of the service 
voltage of electricity supplied by local utilities for lighting is 120 
volts. The rest is supplied at 125 volts, primarily in the Pacific 
Northwest and the Tennessee Valley. No evidence was presented that any 
local utility supplies electricity at 130 volts, or at service voltage 
other than 120 or 125 volts. The lamp manufacturers who participated in 
the proceeding stated that they distribute incandescent lamps with a 
design voltage of 120 volts for sale in 120 voltage service regions. 
They also stated, however, that while they distribute incandescent 
lamps with a design voltage of 125 volts primarily to regions with 125 
voltage service, they cannot guarantee that lamps with a design voltage 
of 125 volts are only offered for sale in 125 voltage service regions. 
Manufacturers that distribute incandescent lamps with a design voltage 
of 130 volts stated that they distribute these lamps, which are 
marketed as long-life lamps, in both 120 and 125 voltage service 
regions.
    In light of the statutory standard and the rulemaking record, the 
Commission determined to require disclosure on the primary display 
panel of the specific lamp performance information based on operation 
of the lamp at 120 volts. [[Page 15203]] Otherwise, purchasers in most 
parts of the country who purchase lamps with a design voltage of 125 or 
130 volts could be misled by exaggerated light output claims.<SUP>27 In 
order to ensure that purchasers in 125 volt service regions are 
provided accurate performance information, and to allow manufacturers 
flexibility in marketing longer-life, 130-volt design voltage lamps, 
however, the Commission determined to allow manufacturers, at their 
option, to disclose performance information at an additional design 
voltage. This information could be included on the primary display 
panel, or on a different package panel.<SUP>28

    \27\See Angelo (Tr.), 63: [P]eople may choose life or lumen 
output but if it's tested at 120 then there's no reason to go 
through the deception of saying it's a 130-volt lamp. It's simply 
enough to say that this lamp is going to produce less lumens[,] 
meaning it's going to have a different filament and it has really 
nothing to do with design wattage, it has to do with life and 
lumens. So in the circumstance of the people who were buying it for 
that reason, why go through a deception? Why not just tell them 
[it's] at 120 and let it be billed as a 120-volt lamp with less 
lumens and more life?
    \28\See 16 CFR 305.11(e)(1)(C).
---------------------------------------------------------------------------

C. Proposed Amendments

    NEMA's Petition raises no legal analysis that was not presented in 
the original rulemaking record, nor does it present any empirical 
information indicating that consumers would be misled by the dual sets 
of disclosures on the primary panel. NEMA, however, asserts that 
marketing considerations will lead manufacturers to want to put design 
voltage information on the primary display panel.<SUP>29 A review of 
the sample labels with dual disclosures on the primary display panel 
indicates that they may be confusing to consumers. The Commission 
believes that the approach NEMA suggests will be adequate to meet the 
statutory standard and ensure that purchasers receive accurate 
information they need in making purchase decisions.

    \29\NEMA also has indicated that, although less than 10% of the 
lamps sold have a design voltage of other than 120 volts, of the 
three largest manufacturers of the broad range of general service 
incandescent lamps, the percentage of stock-keeping units (``SKUs'') 
designed for other than 120 volts ranges from between 40% and 50% 
for one manufacturer, to approximately 30% for another, and 10% to 
20% for the third.
---------------------------------------------------------------------------

    Although the statute states that labeling information for these 
lamps shall be based on operation at 120 volts, regardless of the rated 
(or design) lamp voltage, it does not prohibit the Commission from 
allowing additional disclosures based on operation of the lamp at a 
different design voltage. The statute also leaves to the Commission's 
discretion both the specific disclosures that should be required and 
the manner and format in which the disclosures should be made. The 
Commission, therefore, proposes amending the Rule to allow an optional 
disclosure format, as NEMA requests, for incandescent lamps with design 
voltages of 125 or 130 volts.<SUP>30 The Commission proposes amending 
the Rule to require use of the more detailed explanation regarding 
operation at 120 volts and to allow the placement of information on 
packages that NEMA proposed. In addition, to ensure that purchasers are 
aware that they are selecting a bulb with a design voltage of 125 volts 
or 130 volts, the Commission proposes amending the Rule to require that 
all panels of the package that contain a claim about lumen light, 
wattage or life clearly and conspicuously identify the lamp as ``[125 
volt/130 volt].''<SUP>31

    \30\If interested parties demonstrate that covered incandescent 
lamps at additional design voltages are produced and sold, the 
Commission can consider adding the additional design voltages to the 
option.
    \31\NEMA's counsel agreed that this condition would be 
appropriate.
---------------------------------------------------------------------------

    The Commission proposes promulgating the optional compliance method 
requested by NEMA as amendments to the Appliance Labeling Rule. The 
proposed amendments would comply with the statutory mandate because 
they would require clear and conspicuous disclosure on labels of the 
specific performance information for the lamps when they are operated 
at 120 volts. The proposed amendments would impose no additional 
requirements on manufacturers, but merely would allow an alternative 
format for manufacturers to make the required disclosures. At the same 
time, the proposed amendments would ensure that purchasers are provided 
with accurate information they need about the most efficient lamps that 
meet their requirements when they make purchase decisions.

IV. Other Issues

A. NEMA's Request (Disclosures for Reflector Lamps)

    NEMA believes that the existing lamp labeling requirements in the 
Appliance Labeling Rule may be based on a technical misunderstanding of 
incandescent reflector lamp characteristics, and would lead consumers 
to purchase more energy intensive lamps than are needed.<SUP>32 
Accordingly, NEMA requests that the Appliance Labeling Rule be either 
interpreted or amended as follows:<SUP>33

    \32\Letter dated November 11, 1994, to Kent C. Howerton and 
James G. Mills, FTC, from Mark L. Perlis, Counsel to NEMA, at 2. See 
also Letter dated December 5, 1994, to Kent C. Howerton, FTC, from 
Mark L. Perlis, Counsel to NEMA.

    \33\Petition at 1-3.
---------------------------------------------------------------------------

    (1) to require that disclosure of light output for an 
incandescent reflector lamp shall be given for the lamp's ``total 
forward lumens;'' and
    (2) to delete the requirement that the disclosure of light 
output be followed by the phrase ``at beam spread.''

    NEMA further requests that Section 305.11(e)(1)(vi) of the 
Appliance Labeling Rule be either interpreted or amended to permit, but 
not require, a manufacturer the option to insert into the required 
Advisory Statement the following italicized words:
    ``To save energy costs, find the bulb with the beam spread and 
light output you need, then choose the one with the lowest watts.''
    In support of these requests, NEMA explains that it may not clearly 
have communicated to the Commission during the rulemaking proceeding 
the difference between total lumens (or total forward lumens), which 
are measured independently of beam spread, and beam intensity, which is 
a measure of a reflector lamp's performance independent of lumens. NEMA 
asserts that the requirement that the lumen disclosure be labeled ``at 
beam spread,'' consequently, confuses two distinct performance 
characteristics of reflector lamps. NEMA states that reflector lamp 
purchasers choose a beam spread for a particular lighting task, whether 
requiring sharply concentrated light or more dispersed light. Then, 
purchasers determine how much light output or total forward lumens they 
need, rather than beam lumens. Finally, NEMA asserts that purchasers 
should be directed to the most efficient lamp at a given beam spread, 
which will be the lamp with the lowest wattage for the desired total 
lumen output.<SUP>34

    \34\ Letter dated November 11, 1994, to Kent C. Howerton and 
James G. Mills, FTC, from Mark L. Perlis, Counsel to NEMA, at 2.
---------------------------------------------------------------------------

    NEMA believes that the existing requirements would merely confuse 
purchasers and distract them from purchasing the most efficient lamp 
that meets their needs. Such confusion would arise because, for lamps 
with the same total forward lumens, the spotlight or narrow beam lamp 
will always have fewer beam lumens than a floodlight. Labeling 
incandescent reflector lamps only in terms of beam lumens thus would 
often bias purchasers into selecting higher wattage lamps than are 
needed to meet their lighting needs, or to save energy. Further, NEMA 
states that the lamp efficiency standards specified by EPA 92 are based 
on total [[Page 15204]] forward lumens rather than beam lumens.<SUP>35

    \35\Id.
---------------------------------------------------------------------------

B. Background

    Not all light produced by an incandescent reflector lamp is 
reflected forward as useable light.<SUP>36 Some light may escape around 
the base of the cone and be lost into the lamp fixture. Some light may 
be reflected back and forth inside the cone and not be emitted as 
useful light output. In an attempt to ensure that only useable forward 
light output would be disclosed as the lamp's lumen light output, 
Section 305.11(e)(1)(iv) of the Appliance Labeling Rule requires that 
the light output disclosed shall be for the lamp's ``beam spread,'' and 
be followed clearly and conspicuously by the phrase ``at beam spread.''

    \36\Incandescent reflector lamps (also known as reflectorized 
incandescent lamps) are cone-shaped with a reflectorized coating 
applied to the cone-shaped part of the bulb. Incandescent reflector 
lamps thus allow light output to be directed and focused forward 
through the face of the lamp. They may be used, for example, to 
provide lighting from recessed ceiling fixtures or as spotlights or 
floodlights.
---------------------------------------------------------------------------

C. Proposed Amendments

    The Commission agrees with NEMA's explanation and analysis. During 
the rulemaking proceeding, and in discussions between the Commission's 
staff and NEMA and various lamp manufacturers since the Commission 
issued the final lamp labeling amendments to the Appliance Labeling 
Rule, there has been confusion about the use of such terms as ``beam 
spread,'' ``beam angle,'' ``total lumens,'' and ``total forward 
lumens'' for incandescent reflector lamps. NEMA's proposal would 
clarify that the required light output disclosure is for the useable 
light output reflected forward (as was intended by the Commission), and 
not merely of light focused within the more narrow ``beam spread.'' The 
proposal also would clarify that the lumen disclosure for incandescent 
reflector lamps is consistent with the lumen measurement used by the 
Department of Energy (DOE) in determining the efficiency of these 
products under the minimum efficiency standards set by EPA 92.<SUP>37

    \37\See Interim final rule, 59 FR 49468 (1994). The EPA 92 
amendments to EPCA specify minimum efficiency standards for 
incandescent reflector lamps and require DOE to issue rules 
specifying the test procedures to be used in enforcing the minimum 
efficiency standards. DOE published its interim final rule for 
testing to comply with EPA 92's minimum efficiency standards on 
September 28, 1994, after the Commission published the lamp labeling 
rule amendments to the Appliance Labeling Rule.
---------------------------------------------------------------------------

    Accordingly, the Commission proposes amending Section 
305.11(e)(1)(iv) of the Appliance Labeling Rule to clarify that the 
required lumen disclosure for incandescent reflector lamps is of 
``total forward lumens'' instead of lumens ``at beam spread.'' The 
Commission also proposes amending Section 305.11(e)(1)(iv) to delete 
the requirement that the lumen disclosure be followed by the phrase 
``at beam spread.'' Because the lumen disclosure for all incandescent 
reflector lamps must be based on the same lumen measurement, it is 
unnecessary to specify that the disclosure is ``at beam spread.'' 
Lastly, the Commission proposes amending Sec. 305.11(e)(1)(vi) to allow 
manufacturers, at their option, to insert in the Advisory Statement the 
reference to selecting a lamp with the ``beam spread,'' as well as the 
light output purchasers need. The Commission believes that the optional 
Advisory Statement for incandescent reflector lamps would more 
appropriately advise purchasers that, to save on energy costs, they 
should select the lamp with the light output they need at the lowest 
watts after first selecting the type of incandescent reflector lamp 
(spotlight or floodlight) they need.
    The Commission believes that the proposed amendments would impose 
no additional requirements on manufacturers. Instead, they merely would 
clarify the existing lamp labeling rules and allow manufacturers an 
option in making the Advisory Statement disclosure. At the same time, 
the Commission believes that the proposed amendments would ensure that 
purchasers are provided with accurate information they need about the 
most efficient lamps that meet their requirements when they make 
purchase decisions.

List of Subjects in 16 CFR Part 305

    Advertising, Consumer protection, Energy conservation, Household 
appliances, Labeling, Lamp products, Penalties, Reporting and 
recordkeeping requirements.

V. Text of Proposed Amendments

    Accordingly, the Commission proposes that 16 CFR Part 305 be 
amended as follows:

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'')

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

    Authority: 42 U.S.C. 6294.

    2. Section 305.11, to become effective May 15, 1995, is amended by 
revising paragraph (e)(1)(iii), (iv), and (vi) as follows:


Sec. 305.11  Labeling for covered products.

* * * * *
    (e) Lamps--
    (1) * * *
    (iii) The light output, energy usage and life ratings of any 
covered product that is a medium base compact fluorescent lamp or 
general service incandescent lamp (including an incandescent reflector 
lamp), shall be measured at 120 volts, regardless of the lamp's design 
voltage. If a lamp's design voltage is 125 volts or 130 volts, the 
disclosures of the wattage, light output and life ratings shall in each 
instance be:

    (A) At 120 volts and followed by the phrase ``at 120 volts.'' In 
such case, the labels for such lamps also may disclose the lamp's 
wattage, light output and life at the designed voltage (e.g., 
``Light Output 1710 Lumens at 125 volts''); or
    (B) At the design voltage and followed by the phrase ``at [125 
volts/130 volts]'' if the ratings at 120 volts are disclosed clearly 
and conspicuously on another panel of the package, and if all panels 
of the package that contain a claimed light output, wattage or life 
clearly and conspicuously identify the lamp as ``[125 volt/130 
volt],'' and if the principal display panel clearly and 
conspicuously discloses the following statement:
    This product is designed for [125/130] volts. When used on the 
normal line voltage of 120 volts, the light output and energy 
efficiency are noticeably reduced. See [side/back] panel for 120 
volt ratings.

    (1)(iv) For any covered product that is an incandescent reflector 
lamp, the required disclosure of light output shall be given for the 
lamp's total forward lumens.
* * * * *
    (vi) For any covered product that is a compact fluorescent lamp or 
a general service incandescent lamp (including an incandescent 
reflector lamp), there shall be clearly and conspicuously disclosed on 
the principal display panel the following statement:

     [[Page 15205]] To save energy costs, find the bulbs with the 
[beam spread and] light output you need, then choose the one with 
the lowest watts.
* * * * *
    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-7058 Filed 3-21-95; 8:45 am]
BILLING CODE 6750-01-P