33308 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations

1Final Rule and Statement of Basis and Purpose

(‘‘Light Bulb Rule SBP’’), 35 FR 11784 (1970).

2The Light Bulb Rule defines ‘‘general service

incandescent lamps’’ as all medium screw base

incandescent electric lamps, 15-watt through 150-

watt, 115-volt through 130-volt. The term includes

lamps in the customary ‘‘A’’ type and other bulb

shapes included in Interim Federal Specification

W–L–00101G, and lamps that are produced in

generally comparable bulb shapes for sale in

competition with other general service

incandescent lamps. The rule specifically excludes

lamps designed and promoted primarily for

decorative applications, appliances, traffic signals,

showcases, projectors, airport equipment, trains,

and lamps such as color, flood, reflector, rough

service, and vibration service. 16 CFR 409.1 note 3

(1996). The lamp products covered by the Light

Bulb Rule commonly are referred to as ‘‘light

bulbs.’’ The term ‘‘lamp products,’’ on the other

hand, refers more broadly to lighting products in

general. In this notice, the term ‘‘light bulb’’ refers

only to those lamp products covered by the Light

Bulb Rule.

3 In the Light Bulb Rule SBP, the Commission

explained that industry stressed the need to

maintain a prominent wattage disclosure on

incandescent light bulbs because the use of excess

wattage in fixtures is unsafe and because consumers

were accustomed to buying on the basis of wattage.

35 FR at 11786.

TABLE 4

Brake unit part number

Maximum settings—refurbished brakes (R11–3 on brake housing)

Maximum wear pin

measurement

Alternate brake wear

measurement

Measure in accordance with aircraft

braking systems (ABS) component

maintenance manual with illustrated

parts list (CMM w/IPL) number

5008132–2 ......................................................................... 1.85′′ (47 mm) 4.00′′ (101.6 mm) CMM w/IPL AP–652(32–43–77)

5008132–3 ......................................................................... 1.85′′ (47 mm) 4.00′′ (101.6 mm) CMM w/IPL AP–652 (32–43–77)

5008132–4 ......................................................................... 2.20′′ (55.9 mm) 4.35′′ (110.5 mm) CMM w/IPL AP–652 (32–43–77)

5008132–5 ......................................................................... 2.20′′ (55.9 mm) 4.35′′ (110.5 mm) CMM w/IPL AP–652 (32–43–77)

5008132–6 ......................................................................... 2.20′′ (55.9 mm) 4.35′′ (110.5 mm) CMM w/IPL AP–652 (32–43–77)

5008132–7 ......................................................................... 2.20′′ (55.9 mm) 4.35′′ (110.5 mm) CMM w/IPL AP–652 (32–43–77)

5008132–8 ......................................................................... 2.20′′ (55.9 mm) 4.35′′ (110.5 mm) CMM w/IPL AP–652 (32–43–77)

(2) For Model F28 Mark 0100 and 0070

series airplanes equipped a brake unit having

P/N 5011809, A5011809, or B5011809: The

maximum wear pin measurement is 2.50′′

(63.5 mm), with an alternate brake wear

measurement of 4.35′′ (110.5 mm). The

measurement shall be done in accordance

with Aircraft Braking Systems (ABS)

Component Maintenance Manual (CMM)

with Illustrated Parts List (IPL) AP–747 (32–

43–65).

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

Standardization Branch, ANM–113, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Standardization

Branch, ANM–113.

Note 6: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Standardization Branch,

ANM–113.

(d) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(e) This amendment becomes effective on

August 1, 1996.

Issued in Renton, Washington, on June 19,

1996.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 96–16242 Filed 6–26–96; 8:45 am]

BILLING CODE 4910–13–U

FEDERAL TRADE COMMISSION

16 CFR Part 409

Trade Regulation Rule Concerning the

Incandescent Lamp (Light Bulb)

Industry

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

SUMMARY: The Federal Trade

Commission (‘‘Commission’’ or ‘‘FTC’’)

announces the repeal of the Trade

Regulation Rule Concerning the

Incandescent Lamp (Light Bulb)

Industry (‘‘Light Bulb Rule’’ or ‘‘Rule’’).

The Commission has reviewed the

rulemaking record and determined that,

because of more comprehensive lamp

labeling rules that the Commission

promulgated in 1994 under the Energy

Policy and Conservation Act, as

amended by the Energy Policy Act of

1992, and current industry light bulb

marking practices, the Light Bulb Rule

is no longer necessary or in the public

interest. This notice contains a

Statement of Basis and Purpose for

repealing the Light Bulb Rule.

EFFECTIVE DATE: June 27, 1996.

FOR FURTHER INFORMATION CONTACT: Kent

C. Howerton, Attorney, Federal Trade

Commission, Bureau of Consumer

Protection, Division of Enforcement,

Room S–4302, 601 Pennsylvania

Avenue, NW, Washington, DC 20580,

telephone (202) 326–3013.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Commission undertook this

rulemaking proceeding as part of the

Commission’s ongoing program of

evaluating rules and guides to

determine their effectiveness, impact,

cost, and need. This proceeding also

responds to President Clinton’s National

Regulatory Reinvention Initiative,

which, among other things, urges

agencies to eliminate obsolete or

unnecessary regulations.

A. Light Bulb Rule

The Commission promulgated the

Light Bulb Rule on July 23, 1970,

following a public rulemaking

proceeding.1 The Light Bulb Rule

became effective on January 25, 1971. It

applies only to non-reflector general

service incandescent electric lamps

(commonly referred to as ‘‘light

bulbs’’).2

In summary, the Light Bulb Rule

declares it is an unfair method of

competition and an unfair and

deceptive act or practice, in connection

with the sale of general service

incandescent light bulbs, to:

(1) fail to disclose clearly and

conspicuously on the containers of such light

bulbs (or, if there are no containers, on the

bulbs themselves) their average initial

wattage, average initial lumens, and average

laboratory life, 16 CFR 409.1(a)–(b) (1996);

(2) fail to disclose clearly and

conspicuously on the bulbs themselves their

average initial wattage and design voltage, Id.

at 409.1(b) (1996); 3

(3) represent or imply that savings in light

bulb cost or the cost of light output will

result from the use of a particular light bulb

product because of the bulb’s life or light

output unless, in computing such savings,

the following factors are taken into account

and disclosed clearly and conspicuously for

the light bulb being sold and the bulb with
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations 33309

4Pub. L. No. 102–486, 106 Stat. 2776, 2817–2832

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

6309). EPA 92 amended in several respects the

Energy Policy and Conservation Act of 1975

(‘‘EPCA’’), which requires the Commission to

prescribe labeling rules for certain major household

appliances and other products.

5Final Rule and Statement of Basis and Purpose

(‘‘Appliance Labeling Rule/Lamps SBP’’), 59 FR

25176 (May 13, 1994). The lamp labeling

requirements of the Appliance Labeling Rule

became effective on May 15, 1995. In response to

a petition from the Lamp Section of the National

Electrical Manufacturers Association (‘‘NEMA’’),

and because of apparent uncertainties among

incandescent lamp manufacturers regarding their

compliance responsibilities under the combined

requirements of the Appliance Labeling Rule and

the Light Bulb Rule, the Commission determined

that it would not take law enforcement actions until

December 1, 1995, against manufacturers of

incandescent lamp products not in compliance with

the Appliance Labeling Rule. 60 FR 15198 (March

22, 1995).

6 Id. The specific disclosure is: ‘‘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.’’

7Manufacturers of incandescent reflector lamps

may use the following alternative advisory

disclosure: ‘‘To save energy costs, find the bulbs

with the beam spread and light output you need,

then choose the one with the lowest watts.’’

8 16 CFR 409.1 note 1 (1996). The Light Bulb Rule

states that, for light bulbs covered by that rule, the

‘‘average initial wattage, average initial lumen, and

average laboratory life disclosures required by this

section shall be in accordance with the

requirements of interim Federal Specification,

Lamp, Incandescent (Electric, Large, TungstenFilament) W–L–00101 G and shall be based upon

generally accepted and approved test methods and

procedures.’’ In 1977, that specification ceased

being interim and is now known as Federal

Specification, Lamp, Incandescent (Electric, Large,

Tungsten-Filament) W–L–101H/GEN. This

specification refers to pertinent American National

Standards Institute (‘‘ANSI’’) test protocols, which

are consistent with the Illuminating Engineering

Society of North America (‘‘IES’’) protocols that are

cited in the Appliance Labeling Rule, 16 CFR

305.5(b) (1996), as an acceptable reasonable basis

for determining the light output and life of

incandescent light bulbs. 59 FR at 25200 n.251.

which the comparison is being made: light

bulb cost, electrical power cost, labor cost for

bulb replacement (if any), actual light output

in average initial lumens, and average

laboratory life in hours, Id. at 409.1(c) (1996);

and

(4) represent or imply that a light bulb will

give more light, maintain brightness longer,

or furnish longer life without clearly and

conspicuously disclosing, for both the light

bulb being sold and the light bulb with

which the comparison is being made: the

average initial light output in lumens, the

average initial wattage, the laboratory life in

hours, and, if there is a claim that the light

bulb maintains brightness longer, the light

output in lumens at 70% of the bulbs’ rated

lives (‘‘maintained average lumens’’), Id. at

409.1(d) (1996).

Four notes at the end of the rule

define terms used in the rule or require

certain procedures or tests to be used in

making disclosures required by the rule.

B. Appliance Labeling Rule

In 1994, pursuant to a directive of the

Energy Policy Act of 1992 (‘‘EPA 92’’),4

the Commission amended its 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’’), 16 CFR

305 (1996), to specify new labeling

requirements for lamp products.5 EPA

92 directed the Commission to prescribe

rules requiring that certain types of

lamp products be labeled with ‘‘such

information as the Commission deems

necessary to enable consumers to select

the most energy efficient lamps which

meet their requirements.’’ 42 U.S.C.

6294(a)(2)(C)(i).

In addition to incandescent light

bulbs, the Appliance Labeling Rule

applies to incandescent reflector lamps,

16 CFR 305.03(m) (1996), medium

screw base compact fluorescent lamps,

Id. at 305.03(l) (1996), and general

service fluorescent lamps, Id. at

305.03(k) (1996). Although there are no

direct conflicts between the Light Bulb

Rule and the Appliance Labeling Rule,

there are overlapping requirements for

the light bulbs that are covered by both

rules. The discussion in this notice

summarizes only the requirements of

the two rules that apply to these light

bulbs.

Like the Light Bulb Rule, the

Appliance Labeling Rule requires

disclosures on package labels of light

output, wattage, and life ratings. 16 CFR

305.11(e)(1)(i)–(ii) (1996). As required

by EPCA, 42 U.S.C. 6294(a)(2)(C)(i), the

Appliance Labeling Rule requires that

these disclosures be based on

performance at 120 volts input,

regardless of the rated lamp voltage

(design voltage). 16 CFR 305.11(e)(1)(iii)

(1996). The Appliance Labeling Rule,

however, allows manufacturers the

option of adding disclosures on lamp

packages based on the lamp’s

performance at a different design

voltage of 125 volts or 130 volts, if the

applicable voltage (i.e., 120, 125, or 130)

is disclosed on the label along with each

disclosure of light output, wattage, and

life. Manufacturers may choose to place

the performance information at a design

voltage of 125 volts or 130 volts on the

primary display panel of the package

and place the performance information

at 120 volts elsewhere on the package.

If they do so, they must add a specific

disclosure on the primary display panel

that describes the effect on performance

of the difference in voltage and where

on the package the performance

information at 120 volts may be found.6

The Appliance Labeling Rule requires

that these disclosures appear together in

a specified order and be worded in a

certain way (i.e., as ‘‘Light Output: XX

Lumens; Energy Used: XX Watts; Life:

XX Hours’’) on the label’s principal

display panel. 16 CFR 305.11(e)(1)(ii)

(1996). The Light Bulb Rule, on the

other hand, does not specify any order

or wording for its required disclosures.

It simply specifies that the three ratings

be disclosed in terms of lumens, watts,

and hours, and appear together on at

least two panels of the label, and on any

other panel on which a lumen, wattage,

or hours of life claim is made. 16 CFR

409.1(a), 409.1 note 4 (1996).

The Appliance Labeling Rule requires

that the disclosures of light output,

energy used, and life appear with equal

clarity and conspicuousness. 16 CFR

305.11(e)(ii) (1996). It does not specify

any particular type style or type size,

but it requires that certain disclosures

be made in the same size print, and that

other disclosures be approximately 50%

as large. The Light Bulb Rule specifies

that both the lumens and hours rating

disclosures be in a medium-face or boldface type that is at least two-fifths the

height of the wattage rating figure on the

same panel or three-sixteenths of an

inch in height, whichever is larger. 16

CFR 409.1 note 4 (1996). The Light Bulb

Rule also includes similar type size and

style requirements for the disclosures

for multiple filament (three-way) light

bulbs. Id.

The Appliance Labeling Rule

specifies two additional disclosures that

are not required by the Light Bulb Rule.

First, the following advisory statement

must appear on the principal display

panel of the package label: ‘‘To save

energy costs, find the bulbs with the

light output you need, then choose the

one with the lowest watts.’’ 7 16 CFR

305.11(e)(1)(vi) (1996). Second, all

cartons of covered lamps that are

shipped within or imported into the

United States must be marked with the

following statement: ‘‘These lamps

comply with Federal energy efficiency

labeling requirements.’’ Id. at

305.11(e)(4) (1996).

The Light Bulb Rule requires that the

disclosures of light output, wattage, and

life be determined in accordance with a

specific Federal purchase specification

and be based upon generally accepted

and approved test methods and

specifications, at the lamp product’s

design voltage.8 The Appliance Labeling

Rule requires that disclosures of design

voltage, wattage, light output or life be

based upon a reasonable basis

consisting of competent and reliable

scientific tests that substantiate the

disclosures. Under the Appliance
33310 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations

9 16 CFR 305.5(b) (1996). See also, supra note 8.

10 59 FR at 25200.

11Under section 18(b)(2) of the Federal Trade

Commission Act (‘‘FTC Act’’), 15 U.S.C. 57a(b)(2),

the Commission must publish an ANPR prior to

initiating a proceeding to promulgate, amend, or

repeal a trade regulation rule. The Commission

determined to treat the April 6, 1995, request for

comments as an ANPR because it contained all the

elements that section 18(b)(2) requires in an ANPR.

To comply with section 18, the Commission

submitted the notice to the Chairman of the

Committee on Commerce, Science, and

Transportation, United States Senate and the

Chairman of the Subcommittee on Commerce,

Trade and Hazardous Materials, United States

House of Representatives.

12 60 FR 17491. See supra note 11. The comment

period for this notice was scheduled to end on June

6, 1995, but was extended until August 7, 1995, at

the request of industry members.

13Anderson, #B17240700001; Raeth,

#B17240700002; Bowe, #B17240700003; McGarry,

#B17240700004; Hytron Electric Products, a

division of Trojan Inc. (‘‘Hytron’’), #B17240700005;

Delta Phi Epsilon, Washington, DC, #B17240700006

(‘‘DPE’’); Philips Lighting, Philips Elmet, a division

of North American Philips Corp. (‘‘Philips’’),

#B17240700007; GE Lighting, General Electric Co.

(‘‘GE’’), #B17240700008; and Lamp Section, NEMA,

#B17240700009. The ANPR is filed as document

number B172407. The comments submitted in

response to the ANPR are filed as documents

#B17240700001, #B17240700002, etc.

14The trade association, NEMA, is the largest U.S.

trade association representing manufacturers of

products used in the generation, transmission,

distribution, control, and end-use of electricity.

Member companies in the Lamp Section of NEMA

produce more than 90% of general service

incandescent and fluorescent lamp products sold in

the United States. NEMA Lamp Section members

include General Electric Lighting, Osram Sylvania,

Inc., Philips Lighting Co., Supreme Corp., Venture

Lighting Internat’l, Duro-Test Corp. and EYE

Lighting International. NEMA, #B17240700009.

15Anderson, #B17240700001 (rule very valuable

to him as a consumer; reads labels very closely,

particularly as to lumens and voltage; label

information can be a safety factor since many

enclosed fixtures are rated for up to 60W but 75+W

bulbs will fit the same sockets); Raeth,

#B17240700002 (eliminating the rule would be a

great disservice to the consumer, who would not

know the value of what he or she was purchasing);

Bowe, #B17240700003 (maintain rule requiring

packages to show wattage, lumens, and bulb life;

consumers have a right to know what they are

buying); and McGarry, #B17240700004 (do not

weaken the labeling requirements; uses information

to make comparative decisions when purchasing).

16 DPE, #B17240700006.

17Hytron, #B17240700005.

18The Commission does not have the authority to

eliminate these requirements from the Appliance

Labeling Rule. EPCA requires that labeling

information for incandescent lamps under the

Appliance Labeling Rule be based on operation at

120 volts. 42 U.S.C. 6294(a)(2)(C)(i). EPCA also

defines the lamp products, including incandescent

reflector lamps, that are to be covered by the lamp

labeling rules under the Appliance Labeling Rule.

42 U.S.C. 6291(30), 6294(a)(2)(C)(i).

19Philips, #B17240700007; GE, #B17240700008;

and NEMA, #B17240700009.

Labeling Rule, for light output and life

ratings the Commission will accept, but

does not require, tests conducted

according to specific test protocols

issued by IES,9 or testing in accordance

with final test procedures issued by the

U.S. Department of Energy.10

Both the Light Bulb Rule and the

Appliance Labeling Rule contain

provisions concerning certain

affirmative claims about lamp products.

The Appliance Labeling Rule requires

that any label, printed material prepared

for display or distribution at the point

of sale, or catalog from which a covered

lamp product may be ordered that

contains an operating cost claim clearly

and conspicuously disclose, in close

proximity to the claim, the assumptions

upon which the claim is based,

including, e.g., purchase price, unit cost

of electricity, hours of use, patterns of

use. 16 CFR 305.11(e)(3), 305.13(a)(3),

305.14(c)(2) (1996). These Appliance

Labeling Rule disclosure requirements

do not apply to such claims made in

other promotional materials, such as

advertisements.

The Light Bulb Rule covers claims

that savings in either light bulb cost or

cost of light will result from the use of

a particular light bulb because of the

bulb’s life or light output. It also covers

comparative brightness, light bulb life,

and light output claims. The Light Bulb

Rule specifies factors (e.g., labor costs

for replacement, light output, life) that,

depending on the particular claim being

made, must be taken into consideration

and clearly and conspicuously

disclosed, for both the light bulb being

offered for sale and the bulb(s) with

which the comparison is being made. 16

CFR 409.1(c) (1996). The Light Bulb

Rule’s requirements apply to such

claims in all types of advertising, as

well as on labels, point-of-sale printed

materials, and catalogs. The Appliance

Labeling Rule does not include

disclosure requirements concerning

these comparative claims.

The Light Bulb Rule requires that

light bulbs themselves be marked

clearly and conspicuously with wattage

and design voltage. 16 CFR 409.1(b)

(1996). The Appliance Labeling Rule

does not require that lamp products be

marked with such information.

II. Proceeding To Consider Repeal of

Light Bulb Rule

When the Commission issued the

lamp labeling amendments to the

Appliance Labeling Rule, it announced

that, although there were no conflicts

between the two rules, it would decide

following that amendment proceeding

what further action, if any, it should

take concerning the Light Bulb Rule. 59

FR at 25177.

A. Advance Notice of Proposed

Rulemaking

Accordingly, on April 6, 1995, the

Commission published a notice

(‘‘Advance Notice of Proposed

Rulemaking’’ or ‘‘ANPR’’) 11 requesting

comments concerning the current need

for the Light Bulb Rule as part of the

Commission’s regulatory review

program for all of its rules and guides,

and in light of the new lamp labeling

rules under the Appliance Labeling

Rule.12 The ANPR solicited comments

about the benefits and burdens of the

Light Bulb Rule to consumers and

industry, and whether a need still exists

for the Light Bulb Rule.

The Commission received nine

comments in response to the ANPR.13

Four comments were submitted by

individual consumers, one by an

organization that purchases and uses

light bulbs (‘‘organization/user

comment’’), three by lamp product

manufacturers, and one by a trade

association that represents lamp product

manufacturers.14

The four individual consumer

comments state that the Light Bulb Rule

is still needed because the disclosures

required by the rule help consumers

make informed purchasing decisions.15

They want labels to continue to disclose

light output, wattage, and life

information. These comments do not

address whether the overlapping

requirements of the Appliance Labeling

Rule will ensure that labels provide

consumers with this information. The

organization/user comment also

opposes the elimination of the Light

Bulb Rule. It contends consumers would

lose valuable consumer protections that

are only contained in the Light Bulb

Rule.16

Hytron, a manufacturer of extendedservice, long-life incandescent lamp

products, including incandescent

reflector lamps and traffic signal lamps,

supports keeping the Light Bulb Rule,

and, instead, eliminating the lamp

labeling requirements of the Appliance

Labeling Rule.17 It appears that Hytron

primarily objects to the Appliance

Labeling Rule because it requires

labeling disclosures of incandescent

lamps at 120 volts regardless of the

lamp’s design voltage, and because it

requires the labeling of incandescent

reflector lamps.18

The comments from two

manufacturers (Philips and GE) and the

trade association (NEMA) state that the

Light Bulb Rule’s disclosure

requirements of light output, wattage,

and life for general service incandescent

light bulbs are unnecessary because of

the uniform disclosure requirements for

various types of competing lamp

products in the Appliance Labeling

Rule.19 They recommend that the
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations 33311

20 GE, #B17240700008.

21NEMA, #B17240700009.

22Philips, #B17240700007.

23 61 FR 4382 (Feb. 6, 1996). The NPR is filed as

document number B193867. The comments

submitted in response to the NPR are filed as

documents #B19386700001, #B19386700002, etc.

The comment period closed on March 7, 1996.

24 In the NPR, the Commission indicated it would

hold a hearing to allow for the presentation of

testimony on the issues, if there was interest in a

hearing. NEMA and GE requested an opportunity to

testify, but only if the Commission scheduled a

hearing because other parties requested one. NEMA,

#B19386700004; GE, #B191281, letters of March 7

and 14, 1996. Following the end of the comment

period, both NEMA and GE informed the

Commission’s staff that they did not wish to testify

because no additional parties requested that the

Commission conduct a hearing.

25Supreme, #B19386700001; Robert M. Stone,

Regosin, Edwards, Stone & Feder (‘‘Stone’’),

#B19386700002; Marvel Lighting Corp. (‘‘Marvel’’),

#B19386700003; NEMA, #B19386700004.

26Sigmatron Biological Systems (‘‘Sigmatron’’),

#B19386700005. Because EPCA required the

Commission to promulgate the lamp labeling rules

it adopted in the Appliance Labeling Rule, the

Commission does not have the authority to repeal

those requirements in favor of retaining the Light

Bulb Rule. See also, supra note 18.

27Supreme, #B19386700001.

28Stone, #B19386700002; Marvel,

#B19386700003.

29NEMA, #B19386700004.

Commission repeal all or most of the

Light Bulb Rule to avoid conflicts,

multiple and overlapping requirements,

and inconsistencies with the disclosure

requirements of the Appliance Labeling

Rule.

GE recommends that the Commission

repeal the entire Light Bulb Rule.20 It

believes the Appliance Labeling Rule’s

requirements are better for today’s

modern products and consumers’

information needs, and for advancing

the energy efficiency goals of our

modern day workplace. According to

GE, retaining the Light Bulb Rule, in

addition to the Appliance Labeling

Rule, is inefficient and exposes

manufacturers to a significant risk that

they may fail to comply with both rules.

Further, although the Light Bulb Rule

requires that light bulbs be marked

clearly and conspicuously with wattage

and design voltage and the Appliance

Labeling Rule does not, GE believes that

such marking is a common industry

practice that would not be affected by

the rescission of the Light Bulb Rule. It

states that this is a ‘‘sound business

practice that reduces liability and gives

consumers important information.’’

Accordingly, GE marks many products

that are not covered by the Light Bulb

Rule with wattage, and, as appropriate,

with design voltage.

NEMA states that lamp product

manufacturers should be subject to only

one set of lamp labeling and disclosure

regulations, which would ensure

uniform disclosures of lamp product

performance information to consumers.

NEMA believes that the Appliance

Labeling Rule represents the more

comprehensive and modern approach to

lamp labeling and that the disclosures

required under the Appliance Labeling

Rule fully and fairly inform consumers

about lamp product performance.21 It

believes that the objectives of the Light

Bulb Rule are fully served by the

disclosures required by the Appliance

Labeling Rule. For these reasons, NEMA

recommends that the Commission

repeal the Light Bulb Rule and retain

the Appliance Labeling Rule as the sole

federal labeling and disclosure

requirements for lamp products.

NEMA also believes that repealing the

Light Bulb Rule would not induce

manufacturers to abandon their practice

of inscribing wattage and design voltage

on incandescent lamps and wattage on

fluorescent lamps. NEMA states that

manufacturers routinely mark their

general service incandescent and

fluorescent lamps, even those for which

such marking is not required under

federal labeling rules. Further, NEMA

states that an international safety

standard issued by the International

Electrotechnical Commission (‘‘IEC’’)

(IEC 432–1, 1993) requires marking of

wattage and voltage on general service

incandescent lamps. NEMA, therefore,

believes that manufacturers generally

would continue the marking practices

required by the Light Bulb Rule, even if

the Commission repealed the rule.

Philips strongly supports NEMA’s

position. Philips, however, also states

that the best alternative would be for the

Commission to repeal the Light Bulb

Rule, and to modify the Appliance

Labeling Rule to include some of the

disclosure requirements of Section

409.1(c) (which requires disclosures in

connection with product comparison

claims about lamp cost or cost of light),

and Section 409.1(d) (which requires

disclosures in connection with claims

that a light bulb will give more light,

maintain brightness longer or furnish

longer life) of the Light Bulb Rule.22

Philips believes that adding these

disclosure requirements would

strengthen the Appliance Labeling Rule.

B. Notice of Proposed Rulemaking

The Commission compared the

requirements of the Light Bulb Rule and

the Appliance Labeling Rule, analyzed

the bases for both rules explained in the

Light Bulb Rule SBP and the Appliance

Labeling Rule/Lamps SBP, and

reviewed the comments filed in

response to the Light Bulb Rule ANPR.

Based on that comparison and review,

the Commission solicited comments in

a Notice of Proposed Rulemaking

(‘‘NPR’’) that proposed repealing the

Light Bulb Rule.23 In the NPR, the

Commission explained that the

requirements of the two rules fall into

three categories: (1) basic disclosures of

performance information (e.g., light

output, watts, and life); (2)

substantiation testing for these

disclosures; and (3) additional

disclosures that must be made in

conjunction with certain performance

claims. The Commission also

summarized the comments submitted in

response to the ANPR and explained

why the Commission believed there

may not be a continuing need for the

Light Bulb Rule’s requirements.

The Commission received five

comments in response to the NPR (two

from manufacturers, two from

distributors, and an additional comment

from NEMA).24 Four comments support

repealing the Light Bulb Rule.25 One

comment recommends that the

Commission repeal the lamp labeling

rules under the Appliance Labeling

Rule.26

Supreme states that the new lamp

labeling rules under the Appliance

Labeling Rule will provide users with

the information they need to understand

what type of light bulb is in the package

they are purchasing. Supreme also states

that its distributors are confused by the

amount of information on packages due

to the requirements of both rules and

that it continuously must seek

expensive legal advice about how to

prepare artwork and design to comply

with both rules.27 Stone and Marvel

request that the Commission repeal the

Light Bulb Rule because the overlapping

requirements create confusion and

duplication.28

NEMA states it supports repeal of the

Light Bulb Rule and believes that

consumers’ need for information is fully

served by the disclosure and

substantiation requirements of the

Appliance Labeling Rule.29 NEMA also

addresses several specific issues the

Commission raised in the NPR. First,

NEMA believes that because of the

importance of safety information to

consumers (and to minimize their

product liability) manufacturers will

continue marking wattage and design

voltage on lamps notwithstanding the

repeal of the Light Bulb Rule. Second,

NEMA believes that the Light Bulb

Rule’s required disclosures relating to a

lamp’s brightness are unnecessary

because the Appliance Labeling Rule’s

standardized, side-by-side disclosures of

light output and life nullify any

attempts to mislead consumers about a
33312 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations

30Further, NEMA states that the Appliance

Labeling Rule’s labeling disclosures for competing

lamp products make identification of a comparison

lamp under the Light Bulb Rule superfluous, and

make it unrealistic for a manufacturer or marketer

to misrepresent or distort a lamp’s comparative

performance in advertising and other media, as well

as on labels, point-of-sale promotional materials,

and catalogs. Id.

31 In addition, the Appliance Labeling Rule’s

format requirements for the disclosure of basic

performance data on labels and in catalogs, 16 CFR

305.11(e)(1)(ii), 305.14(c)(1) (1996), obviate the

need for the specific type size and placement

requirements of the Light Bulb Rule for package

labels, 16 CFR 409.1(a), 409.1 note 4 (1996). 32 59 FR 25200.

product’s maintaining brightness better

than competing products. Third, NEMA

believes that the Appliance Labeling

Rule’s standardized labeling disclosure

requirements, along with its

requirement that packaging

representations about the cost of

operating a lamp be based on

assumptions that are clearly and

conspicuously disclosed, provide

adequate information for consumers to

evaluate comparative performance

claims.30 NEMA also states that

repealing the Light Bulb Rule, and

relying exclusively on the Appliance

Labeling Rule, will eliminate overlaps

and inconsistencies, confer benefits on

consumers through standardized

package disclosures, and result in

significant cost savings for both

manufacturers and consumers.

III. Basis for Repeal of the Light Bulb

Rule

The Commission has compared the

requirements of the Light Bulb Rule and

the Appliance Labeling Rule and

reviewed the comments filed in

response to the Light Bulb Rule ANPR

and NPR. For the reasons explained

below, the Commission concludes that

the Light Bulb Rule is no longer

necessary or in the public interest.

First, the requirements in the Light

Bulb Rule that the basic disclosures of

light output, watts, and life be made on

package labels are unnecessary because

they are duplicated by the Appliance

Labeling Rule. The Appliance Labeling

Rule requires that this information also

be disclosed in catalogs from which the

products can be ordered. Further, it

requires that these disclosures be made

on labels and in catalogs for competing

medium screw base compact fluorescent

lamps and incandescent reflector lamps,

as well as for light bulbs covered by the

Light Bulb Rule. These disclosures, in

conjunction with the required advisory

statement about how consumers can

select the most energy-efficient lamp

that meets their needs, give consumers

the information they need at the point

of sale to select the appropriate lamp

product.31

Second, the requirement in the Light

Bulb Rule that manufacturers mark

bulbs with wattage and voltage

information is unnecessary. According

to the comments, manufacturers

currently mark various types of lamp

products voluntarily with wattage and

design voltage information so that

consumers can use these lamp products

safely. The Commission believes that

the marketplace will provide incentives

for manufacturers to continue marking

this information on lamp products, even

after the Commission has repealed the

Light Bulb Rule.

Third, the Light Bulb Rule’s

substantiation requirements are

unnecessary because these requirements

are duplicated in the Appliance

Labeling Rule. The requirement in the

Appliance Labeling Rule that the basic

disclosures be based on ‘‘a reasonable

basis consisting of competent and

reliable scientific tests substantiating

the representation’’ is sufficient to

ensure the accuracy and uniformity of

the disclosures for competing lamp

products. Further, based on the

evidence in the rulemaking proceeding

for the Appliance Labeling Rule, it

appears that the test protocols required

by the Light Bulb Rule are consistent

with IES test protocols that the

Appliance Labeling Rule recognizes as

sufficient to satisfy its reasonable basis

standard for the disclosures of light

output and life.32 However, the

Appliance Labeling Rule provides

manufacturers flexibility to use other

scientific test protocols if they are

competent and reliable.

Fourth, the Light Bulb Rule’s

disclosure requirements for comparison

claims about savings in light bulb cost

or cost of operation, or claims that a

light bulb will give more light, maintain

brightness longer, or furnish longer life

are unnecessary. Through different

disclosure requirements the Appliance

Labeling Rule allows consumers to

make informed, comparative decisions

relating to costs. Specifically:

(1) The Appliance Labeling Rule

requires disclosure of light output and

life information in labels and catalogs.

It requires that labels and catalogs for

incandescent ‘‘A’’ type bulbs, as well as

for competing medium screw base

compact fluorescent lamps and

incandescent reflector lamps, disclose

light output, wattage, and life, along

with an advisory statement about how

the consumer can select the lamp

product that will cost the least to

operate for a specific light output. This

information enables consumers to

evaluate comparison light output and

lifetime claims for competing products

at the point of sale and to select the

appropriate lamp that meets their needs.

(2) Under the Appliance Labeling

Rule, claims about cost of operation of

a covered lamp product in labels, pointof-sale printed materials, and catalogs

must be accompanied by disclosures of

the assumptions on which the claims

are based (e.g., purchase price, unit cost

of electricity, hours of use, patterns of

use). These disclosures, along with the

advisory statement and the disclosures

of light output, wattage, and life, for

competing lamp products on product

labels and in catalogs give consumers

the information they need at the point

of purchase to evaluate comparison

claims about savings in cost of

operation.

(3) Purchase price information is

readily available to consumers at the

point of sale (both in retail stores and in

catalogs). Thus, consumers have

information at the point of sale to

evaluate comparison claims about lamp

product purchase costs.

(4) Unit electrical cost information is

readily available to consumers on their

monthly electric utility bills or from

their electrical utility companies.

Consumers can use this information,

along with the advisory statement and

the disclosures of basic performance

information on packages and catalogs, to

evaluate any comparison operating cost

claims.

Although the Appliance Labeling

Rule does not contain disclosure

requirements similar to the Light Bulb

Rule covering comparative claims about

brightness, length of life, or amount of

light, the Commission concludes that

the Appliance Labeling Rule’s

requirements provide consumers

comparable information. The Appliance

Labeling Rule’s requirements that labels

disclose light output, energy used, and

life, and that labels, point-of-sale

promotional materials, and catalogs that

contain a claim regarding cost of

operation clearly and conspicuously

disclose the assumptions upon which

the claim is based, provide consumers

comparable information they need to

evaluate such claims and make

informed purchasing decisions. Further,

the Commission can address any

significant problems that might arise in

the future concerning specific

performance claims or a failure to

disclose material purchase information

not covered by the Appliance Labeling

Rule on a case-by-case basis,

administratively, under Section 5 of the

FTC Act, 15 U.S.C. 45, or through

Section 13(b) actions, 15 U.S.C. 53(b),

filed in federal district court.

Prosecuting serious misrepresentations
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Rules and Regulations 33313

and the failure to disclose material

information in district court allows the

Commission to obtain injunctive relief

as well as equitable remedies, such as

redress or disgorgement.

IV. Regulatory Flexibility Act

The Regulatory Flexibility Act

(‘‘RFA’’), 5 U.S.C. 601–11, requires an

analysis of the anticipated impact of the

repeal of the Light Bulb Rule on small

businesses. The reasons for repeal of the

rule have been explained in this notice.

Repeal of the Light Bulb Rule would

appear to have little or no effect on

small businesses. Moreover, the

Commission is not aware of any existing

federal laws or regulations that would

conflict with repeal of the Light Bulb

Rule. Further, no comments suggested

any adverse effect on small business

from repeal. For these reasons, the

Commission certifies, pursuant to

Section 605 of the RFA, 5 U.S.C. 605,

that this action will not have a

significant economic impact on a

substantial number of small entities.

V. Paperwork Reduction Act

The Light Bulb Rule imposes thirdparty disclosure requirements that

constitute ‘‘information collection

requirements’’ under the Paperwork

Reduction Act, 44 U.S.C. 3501 et seq.

Accordingly, repeal of the Light Bulb

Rule will eliminate any burdens

imposed by these disclosure

requirements.

List of Subjects in 16 CFR Part 409

Advertising, Consumer protection,

Energy conservation, Labeling, Lamp

products, Trade practices.

PART 409—[REMOVED]

The Commission, under authority of

Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends

chapter I of Title 16 of the Code of

Federal Regulations by removing Part

409.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 96–16301 Filed 6–26–96; 8:45 am]

BILLING CODE 6750–01–P

DEPARTMENT OF STATE

Bureau of Political-Military Affairs

22 CFR Part 126

[Public Notice 2386]

Amendment to the List of Proscribed

Destinations

AGENCY: Department of State.

ACTION: Final rule.

SUMMARY: The Department of State is

amending the International Traffic in

Arms Regulations (ITAR) to reflect that

it is the policy of the United States to

deny licenses, other approvals, exports

and imports of defense articles and

defense services, destined for or

originating in Afghanistan. This

amendment formalizes a policy the U.S.

has had in place since 1992 to deny

import and export licenses for articles

and services originating in or destined

for Afghanistan due to the ongoing civil

war in that country.

EFFECTIVE DATE: June 14, 1996.

FOR FURTHER INFORMATION CONTACT:

Joseph L. Novak, Office of Arms

Transfer and Export Control Policy,

Bureau of Political-Military Affairs,

Department of State (202–736–7996).

SUPPLEMENTARY INFORMATION: The

Department of State is amending the

ITAR to reflect that it is the policy of the

United States, pursuant to § 126.1, to

deny licenses, other approvals, exports

and imports of defense articles and

defense services, destined for or

originating in Afghanistan. Requests for

licenses or other approvals for

Afghanistan involving items covered by

the Munitions List (22 CFR part 121)

will be reviewed with a presumption of

disapproval.

This amendment to the ITAR involves

a foreign affairs function of the United

States and thus is excluded from the

major rule procedure of Executive Order

12291 (46 FR 13193) and the procedures

of 5 U.S.C. 553 and 554. This final rule

does not contain a new or amended

information requirement subject to the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.).

List of Subjects in 22 CFR Part 126

Arms and munitions, Exports.

Accordingly, under the authority of

Section 38 of the Arms Export Control

Act (22 U.S.C. 2778) and Executive

Order 11958, as amended, 22 CFR

subchapter M is amended as follows:

PART 126—[AMENDED]

1. The authority citation for part 126

continues to read as follows:

Authority: Secs. 2, 38, 40, 42, and 71, Arms

Export Control Act, Pub. L. 90–629, 90 Stat.

744 (22 U.S.C. 2752, 2778, 2780, 2791, and

2797); E.O. 11958, 41 FR 4311; E.O. 11322,

32 FR 119; 22 U.S.C. 2658; 22 U.S.C. 287c;

E.O. 12918, 59 FR 28206.

§ 126.1 [Amended]

2. Section 126.1 is amended by

adding ‘‘Afghanistan,’’ immediately

prior to ‘‘Armenia’’ in paragraph (a).

Dated: June 10, 1996.

Lynn E. Davis,

Under Secretary of State for Arms Control

and International Security Affairs.

[FR Doc. 96–16360 Filed 6–26–96; 8:45 am]

BILLING CODE 4710–25–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8679]

RIN 1545–AU37

Regulations Under Section 382 of the

Internal Revenue Code of 1986;

Application of Section 382 in Short

Taxable Years and With Respect to

Controlled Groups

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final and temporary

regulations.

SUMMARY: This document contains final

and temporary regulations relating to

limitations on net operating loss

carryforwards and certain built-in losses

following an ownership change and

comply with the statutory direction

under section 382(m) of the Internal

Revenue Code to prescribe regulations

concerning short taxable years and

controlled groups. This document also

contains amendments relating to the

end of separate tracking of the stock

ownership of loss corporations that

cease to exist following a merger or

similar transaction. The text of these

temporary regulations also serves as the

text of the proposed regulations set forth

in the notice of proposed rulemaking on

this subject in the Proposed Rules

section of this issue of the Federal

Register.

DATES: These regulations are effective

June 27, 1996.

For dates of application and special

transition rules, see Effective Dates

under SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT:

David B. Friedel at (202) 622–7550 (not

a toll-free number).