15198 Federal Register / Vol. 60, No. 55 / Wednesday, March 22, 1995 / Rules and Regulations

1Final 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.

2Pub. L. No. 102–486, 106 Stat. 2776, 2817–2832

(Oct. 24, 1992) (codified at 42 U.S.C. 6201, 6291–

6309).

3NEMA 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.

4NEMA’s counsel informed the Commission’s

staff that its members produce over two thousand

SKUs that will be covered by the lamp labeling

requirements of the Appliance Labeling Rule.

5Petition at 7.

6Petition at 8.

7 Id. at 2 note 1, 8. NEMA has consolidated and

limited the issues on which it requests written

advice in a letter to the Commission’s staff dated

January 30, 1995. The Commission’s staff

responded to the issues raised in that letter in a

separate, written staff opinion letter.

8 Id.

9 Id. at 9–10.

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: Final rule, policy statement

delaying enforcement.

SUMMARY: The Federal Trade

Commission, in response to a petition,

issues an Enforcement Policy Statement

under which the Commission will avoid

taking law enforcement actions against

manufacturers of general service

incandescent lamps (including reflector

lamps) not in compliance with the

labeling disclosure requirements of the

Appliance Labeling Rule until

December 1, 1995.

EFFECTIVE DATE: March 22, 1995.

FOR FURTHER INFORMATION CONTACT: Kent

C. Howerton, Attorney, Division of

Enforcement, Bureau of Consumer

Protection, Room S–4631, Federal Trade

Commission, Washington, DC 20580,

telephone 202/326–3013.

SUPPLEMENTARY INFORMATION:

I. Background

On May 13, 1994, the Commission

published amendments to the

Appliance Labeling Rule to bring certain

lamp products under the Rule’s

coverage.1 The amendments will

become effective on May 15, 1995. The

Commission promulgated the

amendments in response to a directive

in the Energy Policy Act of 1992 (‘‘EPA

92’’).2 In a petition dated January 31,

1995 (‘‘Petition’’), the Lamp Section of

The National Electrical Manufacturers

Association (‘‘NEMA’’) 3 requested that

the Commission allow manufacturers of

specific types of incandescent lamp

products an option as to where on the

package specific disclosures must be

made, and stay compliance with the

Rule through November 30, 1995. In a

document published elsewhere in this

issue of the Federal Register, the

Commission proposes amendments to

the lamp labeling requirements of the

Appliance Labeling Rule and requests

comments on the amendments. The

Commission responds to NEMA’s

request for a stay below.

II. NEMA’s Request for a Stay

NEMA’s Petition requests that the

Commission 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.’’ In support of its request for a

stay, NEMA asserts that manufacturers

must change by May 15, 1995, a large

number of packaging designs and

equipment for many stock-keeping units

(‘‘SKUs’’).4 The extent of the changes to

the lamp packages, the number of

product-types affected, and the need to

coordinate energy efficiency disclosures

with other marketing information, such

as logos, names, and comparative

representations, has resulted in a more

time-consuming and costly conversion

process than NEMA and its members

initially projected. The lamp labeling

amendments have had the effect of

requiring manufacturers to undertake

substantial redesign of the lamp

package. According to NEMA, some

manufacturers have undertaken

extensive market research to determine

the most effective placement of required

disclosures in conjunction with other

marketing information. Because the

marketing significance of a lamp

package is much greater than that of a

yellow EnergyGuide attached to a larger

and more expensive home appliance,

the redesign of lamp packages entails

much more than merely adding a

disclosure box and some explanatory

statements.5

In addition, NEMA asserts that,

because of ambiguities in the lamp

labeling requirements of the Appliance

Labeling Rule and the different

requirements of the preexisting Light

Bulb Rule, 16 CFR Part 409, it has been

necessary for manufacturers to seek

various clarifications and other advice

from the Commission’s staff before

manufacturers could finalize package

designs for their entire inventory.6

NEMA states that, while the

Commission’s staff offered informal

advice on many occasions, NEMA

believes it needs formal, written

guidance concerning specific issues.7

Because of the number of issues

involved, NEMA asserts that

manufacturers have been unable in

many respects to complete their

packaging designs, or to order new

printing plates and paper stock pending

resolution of specific issues. NEMA

contends, therefore, that even acting in

good faith and exercising due diligence,

manufacturers are unlikely to be able to

complete the changeover of their entire

packaging inventory prior to the May

15, 1995, effective date.8 Accordingly,

NEMA requests that the Commission

stay compliance of the lamp labeling

provisions of the Appliance Labeling

Rule for all lamps other than general

service fluorescent lamps for six

months, through November 30, 1995.9

III. Enforcement Policy Statement

The Commission has determined that

it would not be appropriate for the

Commission to stay the effective date of

the lamp labeling amendments to the

Appliance Labeling Rule because the

effective date is set by the EPA 92

amendments to EPCA and the statute

does not authorize the Commission to

extend the effective date. 42 U.S.C.

6294(a)(2)(C)(i). The Commission,

however, has determined to grant

manufacturers of incandescent lamps

the additional time petitioner requests.

In light of the amendments to the Rule

the Commission proposes today

elsewhere in this issue of the Federal

Register in response to the Petition from

NEMA and the apparent uncertainties

among incandescent lamp

manufacturers regarding their

compliance responsibilities under the

combined requirements of the

Appliance Labeling Rule and the Light

Bulb Rule, 16 CFR Part 409, and in

order to minimize relabeling costs, the

Commission has determined to not take

law enforcement actions until December

1, 1995, against manufacturers of

incandescent lamp products not in

compliance with the lamp labeling

requirements of the Appliance Labeling

Rule. Petitioner, however, has not

demonstrated why a similar delay

should apply to the labeling disclosure

requirements for medium base compact

fluorescent lamps, as requested in the

Petition. The Commission, therefore,
Federal Register / Vol. 60, No. 55 / Wednesday, March 22, 1995 / Rules and Regulations 15199

10No evidence was presented in the original

rulemaking record concerning the effect, if any, of

different voltages on compact fluorescent lamps,

which operate through the use of a ballast that

regulates the lamp current during operation, or that

medium base compact fluorescent lamps are

produced or marketed with design voltages other

than 120 volts. Similarly, the delay will not apply

to the labeling disclosure requirements for general

service fluorescent lamps, for which petitioner did

not request a stay.

has determined that the delay in taking

law enforcement actions will not apply

to the labeling requirements for medium

base compact fluorescent lamps.10

List of Subjects in 16 CFR Part 305

Advertising, Consumer protection,

Energy conservation, Household

appliances, Labeling, Lamp products,

Penalties, Reporting and recordkeeping

requirements.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95–7059 Filed 3–21–95; 8:45 am]

BILLING CODE 6750–01–P