Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products, 56780-56787 [2023-16792]

Download as PDF 56780 Proposed Rules Federal Register Vol. 88, No. 160 Monday, August 21, 2023 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. NUCLEAR REGULATORY COMMISSION 10 CFR Part 50 [NRC–2018–0289] RIN 3150–AK21 American Society of Mechanical Engineers 2021–2022 Code Editions Nuclear Regulatory Commission. ACTION: Proposed rule; correction. AGENCY: The U.S. Nuclear Regulatory Commission (NRC) is correcting the preamble of a proposed rule that was published in the Federal Register on August 8, 2023, to amend its regulations to incorporate by reference the 2021 Edition of the American Society of Mechanical Engineers Boiler and Pressure Vessel Code and the 2022 Edition of the American Society of Mechanical Engineers Operation and Maintenance of Nuclear Power Plants, Division 1: OM Code: Section IST, for nuclear power plants. This action is necessary to correct an editorial error to include reference to missing standards. DATES: The correction takes effect on August 21, 2023. ADDRESSES: Please refer to Docket ID NRC–2018–0289 when contacting the NRC about the availability of information for this action. You may obtain publicly available information related to this action by any of the following methods: • Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC–2018–0289. Address questions about NRC dockets to Dawn Forder; telephone: 301–415–3407; email: Dawn.Forder@nrc.gov. For technical questions, contact the individuals listed in the FOR FURTHER INFORMATION CONTACT section of this document. • NRC’s Agencywide Documents Access and Management System (ADAMS): You may obtain publicly available documents online in the ADAMS Public Documents collection at ddrumheller on DSK120RN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 https://www.nrc.gov/reading-rm/ adams.html. To begin the search, select ‘‘ADAMS Public Documents’’ and then select ‘‘Begin Web-based ADAMS Search.’’ For problems with ADAMS, please contact the NRC’s Public Document Room (PDR) reference staff at 1–800–397–4209, at 301–415–4737, or by email to PDR.Resource@nrc.gov. • NRC’s PDR: You may examine and purchase copies of public documents, by appointment, at the NRC’s PDR, Room P1 B35, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. To make an appointment to visit the PDR, please send an email to PDR.Resource@nrc.gov or call 1–800–397–4209 or 301–415– 4737, between 8 a.m. and 4 p.m. eastern time, Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Tyler Hammock, Office of Nuclear Material Safety and Safeguards, telephone: 301–415–1381, email: Tyler.Hammock@nrc.gov and Michael Benson, Office of Nuclear Reactor Regulation, telephone: 301–415–2425, email: Michael.Benson@nrc.gov. Both are staff of the U.S. Nuclear Regulatory Commission, Washington, DC 20555– 0001. The NRC is announcing the following correction to proposed rule FR Doc. 2023–16686, published at 88 FR 53384 on August 8, 2023. On page 53387, in the second column, the last sentence of the first full paragraph is corrected to read, ‘‘Therefore, the NRC is proposing a condition to prohibit the use of Subpart 2.19 in NQA–1–2017, NQA–1–2019, and NQA–1–2022.’’ The NRC may post materials related to this document, including public comments, on the Federal rulemaking website at https://www.regulations.gov under Docket ID NRC–2018–0289. In addition, the Federal rulemaking website allows members of the public to receive alerts when changes or additions occur in a docket folder. To subscribe: (1) navigate to the docket folder (NRC– 2018–0289); (2) click the ‘‘Subscribe’’ link; and (3) enter an email address and click on the ‘‘Subscribe’’ link. SUPPLEMENTARY INFORMATION: Dated: August 16, 2023. PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 For the Nuclear Regulatory Commission. Cindy K. Bladey, Chief, Regulatory Analysis and Rulemaking Support Branch, Division of Rulemaking, Environmental, and Financial Support, Office of Nuclear Material Safety and Safeguards. [FR Doc. 2023–17902 Filed 8–18–23; 8:45 am] BILLING CODE 7590–01–P FEDERAL TRADE COMMISSION 16 CFR Part 432 RIN 3084–AB62 Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products Federal Trade Commission. Supplemental notice of proposed rulemaking. AGENCY: ACTION: The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) seeks public comment on proposed amendments to the Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products (‘‘Amplifier Rule’’ or ‘‘Rule’’). The proposed amendments modify the previous proposal by updating a required test condition (total harmonic distortion), improving differentiation between power output disclosures that comply with the Rule’s testing methods and those that do not, and modernizing as well as clarifying Rule language considering the foregoing modifications. Additionally, the proposed amendments now formalize prior Commission guidance on applying the Rule to multichannel amplifiers. DATES: Written comments must be received on or before October 20, 2023. Parties interested in an opportunity to present views orally should submit a request to do so as explained below, and such requests must be received on or before October 20, 2023. ADDRESSES: Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘Amplifier Rule Review; Project No. P974222’’ on your comment and file your comment online through https://www.regulations.gov. If you prefer to file your comment on paper, SUMMARY: E:\FR\FM\21AUP1.SGM 21AUP1 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC– 5610 (Annex A), Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: Hong Park, Attorney, (202) 326–2158, hpark@ftc.gov, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Mail Stop CC–6316, Washington, DC 20580. SUPPLEMENTARY INFORMATION: I. Background The Commission promulgated the Amplifier Rule in 1974 to address sellers’ failure to provide essential prepurchase information regarding the performance of home entertainment amplifiers.1 Specifically, manufacturers described their products’ performance through power output claims (e.g., ‘‘25 Watts’’), but tested their amplifiers under a variety of conditions and procedures. Thus, consumers could not effectively use advertised wattage claims to compare brands or determine how individual amplifiers would perform. At the time, the Commission noted, ‘‘[s]ince the mid-50’s the [audio] industry’’ had failed ‘‘to agree upon a single industry standard which is meaningful to the consumer.’’ 2 Accordingly, the Rule standardized the measurement and disclosure of some, but not all, performance characteristics of power amplification equipment to ‘‘assure that . . . performance characteristics are based upon conditions of normal use by the consumer, i.e., conditions which are encountered in the home.’’ 3 Under the Rule, sellers making certain power claims (i.e., for power output, power band or power frequency response, or distortion characteristics) must disclose power output measured under specified test conditions. For example, amplifiers must be tested at an ambient air temperature of at least 77 °F (25 °C).4 The Rule, however, does not 1 39 FR 15387 (May 3, 1974). at 15388. 3 Id. at 15392. Merely testing amplifiers under identical test conditions will not produce useful consumer information if the test conditions differ significantly from normal use conditions. 4 This requirement prevents testing with cooling equipment while driving amplifiers to high power outputs that would overheat amplifiers during ddrumheller on DSK120RN23PROD with PROPOSALS1 2 Id. VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 specify values for three test conditions that strongly affect power output measurements: (1) load impedance; 5 (2) rated power band or power frequency response; 6 and (3) total harmonic distortion (‘‘THD’’).7 Instead, the original Rule required disclosure of these values wherever sellers made certain power claims.8 In 2000, the Commission eliminated this disclosure requirement in ‘‘media advertising’’ but retained the requirement in product brochures and manufacturer specification sheets.9 Pursuant to its ongoing regulatory review schedule, on December 18, 2020, the Commission published an advance notice of proposed rulemaking (‘‘ANPR’’) seeking comment on the normal use. See 16 CFR 432.3(d) (‘‘The preconditioning and testing shall be in still air and an ambient temperature of at least 77 °F (25 °C) . . . .’’). 5 The current Rule sets a default load impedance of 8 ohms for measuring power output but permits measurement at a different load impedance if the amplifier is designed primarily for that impedance. 16 CFR 432.2(a). ‘‘[T]he lower the load impedance utilized in testing . . . equipment, the higher the output of the amplifier.’’ 39 FR 15387, 15390 (May 3, 1974). For example, an amplifier that outputs 550 watts into 2 ohms might only output 350 watts into 4 ohms and 215 watts into 8 ohms. See Speaker Impedance Changes Amplifier Power, Geoff the Grey Geek, https://geoffthegreygeek.com/speakerimpedance-changes-amplifier-power/ (last visited Mar. 22, 2023). 6 High quality amplifiers can output a broad range of frequencies, such as the sounds of all the instruments in an orchestra, at high power. Lower quality amplifiers can only output certain frequencies, such as 1 kHz (e.g., the sound of a trumpet), at high power, and output lower frequencies (e.g., a timpani or bass) or higher frequencies (e.g., a piccolo) at lower power. Power output measurements made at a single frequency or over a limited power band do not permit consumers to distinguish between these quality differences in amplifiers. The Commission has stated ‘‘a measurement [on a 1 kHz test signal] is inherently deceptive to the consumer who expects that a piece of equipment represented as being capable of a stated power output will deliver that power output across its full audio range.’’ 39 FR 15387, 15390 (May 3, 1974). 7 The output of an amplifier driven to increasingly higher power will distort and sound different from the original performance. When the Commission promulgated the Rule, it received evidence that distortion limits during testing affect power output measurements. For example, the same amplifier might output 20 watts if driven only until the output reaches 0.5% THD, and output 30 watts when driven to 5% THD. The Rule requires disclosure of the THD during testing so consumers can determine the value of power output measurements. See 39 FR 15387, 15391–92 (May 3, 1974). 8 16 CFR 432.2 (1974). 9 65 FR 81232 (Dec. 22, 2000). PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 56781 Amplifier Rule. 85 FR 82391 (Dec. 18, 2020). Specifically, the ANPR sought comments regarding possible Rule improvements, the continuing need for the Rule, the Rule’s costs and benefits, as well as whether, and how, technological or economic changes have affected the Rule. In response, the Commission received 530 unique comments, including from amplifier and speaker manufacturers, amplifier sellers and purchasers, and engineers or journalists in the audio field.10 All but one commenter supported retaining the Rule.11 Based on this near universal support, the Commission concluded there was a continuing need for the Rule. Although commenters overwhelmingly supported the Rule, some recommended amendments. For example, many commenters urged the Commission to require uniform power band, load impedance, and THD limits to prevent manipulation of these three test conditions.12 Consistent with these comments, Commission staff found this manipulation ubiquitous in the marketplace. Specifically, staff found dozens of examples of the same equipment advertised with significantly different power output claims (e.g., some sellers advertised a particular 10 These comments are available at https:// www.regulations.gov/document/FTC-2020-00870001/comment. In this publication, commenters are referred to by name, the acronym for the notice to which the commenter responded (either ANPR or NPRM), and the number assigned to each comment. For example, the comment to the ANPR from Garry Grube, which was assigned ID FTC–2020–0087– 0187 on www.regulations.gov, is referred to as ‘‘Garry Grube (ANPR 187).’’ 11 The one commenter did not provide a substantive comment. 12 For instance, Alan McConnaughey (ANPR 5) commented, ‘‘More rules should be [enacted] to require 8 ohm ratings so everything is apples do [sic] apples.’’ Jim McCabe (ANPR 378) commented that amplifiers should be tested ‘‘driven from 20 to 20k’’ to ‘‘stop the lying.’’ Danny Anonymous (ANPR 4325) commented that, ‘‘[t]o eliminate confusion, just use Output Watts@1%THD.’’ See also, e.g., comments from Dennis Murphy, Philharmonic Audio (ANPR 525) and David Rich (ANPR 548). In all, twenty-seven commenters recommended specifying the load impedance; 36 recommended specifying the power band to be 20 Hz to 20 kHz; 26 recommended specifying a THD or requiring a low THD; and 159 recommended, in conjunction with a recommendation regarding multichannel amplifier testing, specifying values for all three test conditions. E:\FR\FM\21AUP1.SGM 21AUP1 56782 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules ddrumheller on DSK120RN23PROD with PROPOSALS1 model with 45 watts output per channel, while others advertised the same model with 100 watts per channel 13). Using specification sheets on manufacturers’ websites, staff confirmed these widely divergent claims resulted from different testing parameters. Based on the comments and staff’s review, the Commission found requiring disclosure of test conditions is unlikely to prevent deceptive power output claims. Test conditions are highly technical and require complex calculations to convert claims into apples-to-apples power output comparisons. Thus, the average consumer is unlikely to understand or use the disclosed test conditions to avoid deception.14 This problem is amplified by the fact that consumers now shop online more frequently, providing fewer opportunities to listen to equipment before purchasing. To address widespread misleading power output claims, the Commission published a notice of proposed rulemaking (‘‘NPRM’’), proposing an amendment to the Amplifier Rule to standardize the three test conditions.15 Specifically, the Commission proposed the following standard values: (1) a load impedance of 8 ohms; (2) a power band of 20 Hz to 20 kHz (except for selfpowered subwoofer systems); and (3) a THD limit of less than 0.1%. Staff’s review found amplifiers are generally designed to drive a nominal load impedance of 8 ohms; 20 Hz to 20 kHz covers the normal range of human hearing; 16 and 0.1% THD does not 13 See, e.g., Onkyo TX–8220, Crutchfield, https:// www.crutchfield.com/p_580TX8220/Onkyo-TX8220.html (last visited on Oct. 1, 2021); Onkyo TX– 8220, Amazon.com, https://www.amazon.com/ Onkyo-TX-8220-Channel-Receiver-Bluetooth/dp/ B075P831VY/ref=sr_1_ 1?dchild=1&keywords=Onkyo+TX8220&qid=1633096775&sr=8-1 (viewed on Oct. 1, 2021; advertisement subsequently revised). 14 Staff has surveyed numerous academic articles finding that consumers are not able to effectively comprehend highly technical disclosures; no surveyed research found to the contrary. See, e.g., Omri Ben-Shahar and Carl E. Schneider, The Failure of Mandated Disclosure, 159 U. Pa. L. Rev. 647, available at https://www.jstor.org/stable/ 41149884. The Commission promulgated the Rule so consumers would not need to perform complex calculations to derive useful power ratings. It found that, prior to the Rule, consumers had to ‘‘deduct 10 to 25 percent [from the ‘‘music power’’ ratings previously claimed] and divide by 2’’ to derive power ratings that reflected normal usage. 39 FR 15387, 15388 (May 3, 1974). Additionally, the Commission has previously concluded that ‘‘an insufficient number of consumers . . . understand the meaning and significance of . . . disclosures concerning power bandwidth and impedance.’’ 63 FR 37238, 37239 (July 9, 1998). 15 87 FR 45047 (July 27, 2022). 16 The Commission’s NPRM proposal excluded amplifiers in self-powered subwoofers used in systems that employ two or more amplifiers VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 audibly distort a signal. Several commenters suggested these test conditions, and many manufacturers’ specification sheets already disclose power outputs tested at 8 ohms, 20 Hz to 20 kHz, and at THD limits of, or slightly below, 0.1%. II. Comments Received in Response to NPRM The Commission received nine unique comments in response to the NPRM.17 Seven either broadly supported the regulation of power output claims or the standardization of test conditions.18 Two of these commenters, however, expressed concern about the THD limit. They explained many vacuum tube and solid state amplifiers ‘‘would not be able to qualify for a power output claim’’ under the proposed 0.1% limit.19 Accordingly, they recommended the Commission allow manufacturers to disclose their chosen THD level rather than setting a fixed limit. Additionally, one commenter recommended replacing the term ‘‘total harmonic distortion’’ with ‘‘THD with noise,’’ or ‘‘THD+N,’’ to dedicated to different portions of the audio frequency spectrum from being tested over a power band of 20 Hz to 20 kHz. The Commission has previously recognized that, while ‘‘stand-alone . . . amplifiers . . . must reproduce signals covering the full musical frequency bandwidth,’’ ‘‘self-powered subwoofer systems . . . incorporate crossover circuitry that filters out frequencies above the bass range,’’ and the amplifiers in self-powered subwoofer systems only amplify bass frequencies. 64 FR 38610, 38613–4 (July 19, 1999). Consequently, the Commission proposed to limit the power band for testing self-powered subwoofer amplifiers to the frequencies within those amplifiers’ intended operating bandwidth. The proposed amendments would require testing amplifiers in self-powered full-range loudspeakers, such as full-range Bluetooth speakers that output more than two watts, over a power band of 20 Hz to 20 kHz. 17 These comments can be found at https:// www.regulations.gov/document/FTC-2022-00480001. The Commission received a total of 11 comments. However, two of these comments neither responded to the NPRM nor discussed any aspect of the Rule. A third comment raised concerns outside the scope of this proceeding (e.g., health risks posed by amplifiers) and did not supply any supporting evidence. See Chelsy Graves (NPRM 5). 18 See, e.g., Travis Surprenant (NPRM 2) (‘‘It needs to be a uniform rating to ensure consumers are comparing products on a level playing field.’’); Peiyan Wang (NPRM 4) (‘‘A uniform testing method could provide convenience for consumers to compare different products.’’); Kiet Hoang (NPRM 10) (‘‘I believe it needs to be a uniform testing method in order to provide the customers to compare the products on a comparable basis.’’). 19 Dennis Murphy (NPRM 9) (stating that all the tube amplifiers reviewed by the audio publication Stereophile over the past 10 years and many solid state amplifiers could not meet the 0.1% maximum THD requirement); see also E.W. Blackwood (NPRM 7) (‘‘0.1% total harmonic distortion (THD) is too restrictive and would have an impact on many manufacturers.’’). PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 align the Rule with the Commission’s original intent.20 Only one commenter opposed the Commission’s proposal in its entirety. The Consumer Technology Association (‘‘CTA’’) stated the Commission’s proposal is unnecessary for component audio devices because manufacturers ‘‘generally already use [the Commission’s proposed] parameters to test their devices.’’ 21 As for integrated audio devices, such as soundbars, CTA stated that standardizing the power output test conditions would be irrelevant to consumers. According to CTA, consumers do not evaluate ‘‘specific technical capabilities of individual components,’’ such as power output, but rather look to the ‘‘immersive audio experience’’ reviewed in online videos and other online sources. Therefore, CTA urged the Commission to reject the proposal, or at a minimum, to narrow its application to component audio devices and not integrated audio devices. III. Analysis and Additional Proposed Amendments to the Rule After reviewing these comments, the Commission reaffirms its proposed approach of standardizing power output test conditions governing impedance, power band, and distortion. The Commission proposed standardizing these conditions based on the vast majority of comments,22 as well as Commission staff’s research, indicating standardization is necessary to eliminate conflicting and confusing power output claims. CTA’s comments do not change this conclusion. CTA asserts such standardization is unnecessary with respect to component audio devices because manufacturers ‘‘generally’’ use the Commission’s proposed standard. However, staff found numerous instances of sellers advertising component audio devices using power output standards that differed from each other and from the Commission’s proposal.23 CTA also 20 E.W. Blackwood (NPRM 7). (NPRM 8). 22 See 87 FR 45047, 45049 (July 27, 2022). 23 See, e.g., Denon PMA–600NE Stereo Integrated Amplifier, Amazon.com, https://www.amazon.com/ Denon-PMA-600NE-Integrated-AmplifierConnectivity/dp/B07XL4TM3M/ref=sr_1_ 4?crid=3VROHBG0858SO&keywords=integrated %2Bamplifier&qid=1678911254&sprefix=integrated %2Bamplifier%2Caps%2C92&sr=8-4&th=1 (last visited on Mar. 22, 2023) (advertising 70 watts at 4 ohms, 1kHz, THD 0.7%); Onkyo A–9110 Home Audio Integrated Stereo Amplifier—Black, Amazon.com, https://www.amazon.com/Onkyo-A9110-Integrated-Stereo-Amplifier/dp/B07J2S755K/ ref=sr_1_6?crid=3VROHBG0 858SO&keywords=integrated+amplifier&qid= 1678911254&sprefix=integrated+ amplifier%2Caps%2C92&sr=8-6 (last visited on 21 CTA E:\FR\FM\21AUP1.SGM 21AUP1 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules ddrumheller on DSK120RN23PROD with PROPOSALS1 contends power output information is irrelevant to consumers of integrated home audio equipment. In contrast, Commission staff easily found multiple instances of sellers advertising such equipment using power output claims, presumably because they believe consumers find power output information relevant to their purchasing decision.24 Based on the comments, however, the Commission modifies its NPRM proposal in three ways. First, it proposes replacing the Rule’s reference to ‘‘total harmonic distortion’’ with ‘‘total harmonic distortion plus noise’’ (‘‘THD+N’’).25 As one commenter observed, the modern audio equipment industry distinguishes between THD and THD+N.26 THD measures only the Mar. 22, 2023) (advertising 50 watts at 4 ohms, 20Hz-20kHz, 0.9% THD); Russound P75, Crutchfield, https://www.crutchfield.com/p_ 543P75/Russound-P75.html?tp=48757 (Mar. 22, 2023) (advertising 60 watts into 8 ohms, 1kHz, 1% THD). 24 See, e.g., Nakamichi Shockwafe Ultra 9.2.4 Channel 1000W Dolby Atmos/DTS:X Soundbar with Dual 10’’ Subwoofers (Wireless) & 4 Rear Surround Speakers. Enjoy Plug and Play Explosive Bass & High End Cinema Surround, Amazon.com, https:// www.amazon.com/Nakamichi-Shockwafe-Ultra-92Ch-DTS/dp/B07HHZ94BW/ref=sr_1_2_ sspa?c=ts&keywords= Home+Theater+Systems&qid= 1678919591&s=aht&sr=1-2-spons&ts_id= 281056&psc=1&spLa=ZW5jcnlwdGVkUXVhb GlmaWVy PUEzR0VUSE9aNjNEUDlIJmVuY3J5cHRlZElkPUE wODM4ODgyMlE1VDYyMVBUTVRCVSZlbmNye XB0ZWRBZElkPUEwMzkwOTY1Mk9WSjkwMjNP Nkg1QSZ3aWRnZXROYW1lPXNwX2F0ZiZhY 3Rpb249Y2xpY2tSZWRpcmVjdCZkb05vdExvZ0N saWNrPXRydWU= (advertising 1000 watts); Bobtot Home Theater Systems Surround Sound Speakers— 1200 Watts 10 inch Subwoofer 5.1/2.1 Channel Home Audio Stereo System, Amazon.com, https:// www.amazon.com/Bobtot-Theater-SystemSurround-Speakers/dp/B09MRW83PZ/ref=sxin_16_ pa_sp_search_thematic_sspa?c=ts&contentid=amzn1.sym.711b623b-fef6-4340-9590f21d01371ab3%3Aamzn1.sym.711b623b-fef6-43409590-f21d01371ab3&cv_ct_ cx=Home+Theater+Systems& keywords=Home+Theater+Systems&pd_rd_ i=B09MRW83PZ&pd_rd_r=d167b2e2-a2f1-41199562-90cc123dce28&pd_rd_w=W8eOP&pd_rd_ wg=f6w1j&pf_rd_p=711b623b-fef6-4340-9590f21d01371ab3&pf_rd_r=ZDVKAESB3BDAQ R1KTNJA&qid=1678919591&s=aht&sbo= RZvfv%2F%2FHxDF%2BO5021pAnSA %3D%3D&sr=1-1-2b34d040-5c83-4b7f-ba0115975dfb8828-spons&ts_id=281056&psc=1&spLa= ZW5jcnlwdGVkUXVhbGlmaWVyPUEzR0VU SE9aNjNEUDlIJmVuY3J5cHRlZElkPUEwMTM 2MzA1MkNRTkFXTVg2NVUzTyZlbmNyeXB0Z WRBZElkPUEwNzgwNDkxVUxPRFRWSlBWVEI4 JndpZGdldE5hbWU9c3Bfc2VhcmNoX3RoZW1hdGl jJmFjdGlvbj1jbGlja1JlZGlyZWN0JmRvTm90TG9n Q2xpY2s9dHJ1ZQ== (last visited on Mar. 22, 2023) (advertising 1200 watts); Rockville HTS56 1000w 5.1 Channel Home Theater System/Bluetooth/ USB+8’’ Subwoofer, Amazon.com, https:// www.amazon.com/Rockville-HTS56-ChannelBluetooth-Subwoofer/dp/B076R7HYKN/ref=sr_1_ 6?c=ts&keywords=Home+Theater+Systems&qid= 1678919591&s=aht&sr=1-6&ts_id=281056 (last visited on Mar. 22, 2023) (advertising 1000 watts). 25 See infra proposed 16 CFR 432.3(e). 26 E.W. Blackwood (NPRM 7). VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 discrepancy in harmonics between the original audio signal and the amplified signal (harmonic distortion).27 In contrast, THD+N measures both harmonic distortion and noise introduced by the power line, the electronics of the amplifier, and other sources.28 When the Commission originally promulgated the Rule, it intended the term ‘‘total harmonic distortion’’ to capture both harmonic distortion and noise signified by the broader term THD+N.29 The modified proposal preserves this original meaning.30 27 Typically, the original audio signal used in measuring distortion is a sinusoidal wave with a defined frequency called a ‘‘fundamental frequency.’’ Amplifying the original audio signal may generate harmonics, which are sinusoidal waves with frequencies that are a positive integer multiple of the fundamental frequency. Harmonic distortion is the measure of the harmonics introduced into the amplified output signal. See THD And THD+N—Similar But Not The Same, Audio Precision, Inc., https://www.ap.com/blog/ thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2023); What Is Total Harmonic Distortion Plus Noise (THD+N)?, Audio Interfacing (Nov. 15, 2022), https://audiointerfacing.com/totalharmonic-distortion-plus-noise/#:∼:text=THD%20is %20a%20measure%20of,relative%20to %20the%20input%20signal.; Understanding, Calculating, and Measuring Total Harmonic Distortion (THD), All About Circuits (Feb. 20, 2017), https://www.allaboutcircuits.com/technicalarticles/the-importance-of-total-harmonicdistortion/#:∼:text=Harmonics%20or%20harmonic %20frequencies%20of,of%20a%20periodic %20signal%20shows. 28 See, e.g., What Is Total Harmonic Distortion Plus Noise (THD+N)?, Audio Interfacing (Nov. 15, 2022), https://audiointerfacing.com/total-harmonicdistortion-plus-noise/#:∼:text=THD %20is%20a%20measure%20of,relative %20to%20the%20input%20signal.; More About THD+N And THD, Audio Precision, Inc. (Feb. 1, 2013), https://www.ap.com/technical-library/moreabout-thdn-and-thd/; Not All Distortion Is Created Equal—A Guide to THD & THD+N, Bandwidth Audio, https://www.bandwidthaudio.com/post/notall-distortion-is-created-equal-a-guide-to-thd-thd-n (last visited Mar. 22, 2023). 29 For instance, the Commission’s intent to include noise in using the term ‘‘total harmonic distortion’’ is demonstrated by its explanation of § 432.3(a) when it first promulgated the Rule. That section requires AC power lines for testing equipment capable of using AC as a power source. The Commission explained that testing cannot artificially eliminate the ‘‘hum and noise factor’’ present in AC power lines by using a battery to power equipment capable of AC power. 39 FR 15387, 15393 (May 3, 1974). 30 The modified proposal also reduces the burden on industry. Measuring THD+N is simpler because it does not require the additional step of separating harmonic distortion from noise for measuring THD. See, e.g., THD And THD+N—Similar But Not The Same, Audio Precision, Inc., https://www.ap.com/ blog/thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2013) (‘‘[T]he test setup [for measuring THD] is inherently more complicated than the THD+N technique.’’); What Is Total Harmonic Distortion Plus Noise (THD+N)?, Audio Interfacing (Nov. 15, 2022), https:// audiointerfacing.com/total-harmonic-distortionplus-noise/#:∼:text=THD%20is%20a%20measure %20of,relative%20to%20the%20input%20signal. (‘‘[I]n practice THD+N is easier to measure than THD.’’). PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 56783 Second, the Commission proposes raising the THD+N limit to 1.0% to address commenters’ concerns that a significant number of amplifiers on the market cannot qualify for any power output claim under the NPRM proposal’s 0.1% limit.31 Staff research confirms that a number of entry-level solid state amplifiers cannot rate the power output at a 0.1% THD+N limit but most can rate at a 1.0% limit.32 Although the new proposal allows a higher percentage of distortion, research referenced by commenter Dennis Murphy indicates the average consumer cannot audibly detect distortion at the 1.0% level, especially when listening to content typically played on home audio equipment, such as music and movie programming.33 The Commission 31 See infra proposed 16 CFR 432.3(e). staff examined graphs of THD+N vs. 1kHz continuous output power into 8 ohms for a sampling of solid state amplifier devices on www.stereophile.com. 8 out of 30 devices were not capable of generating any power output at a maximum THD+N threshold of 0.1%, but all 30 devices were capable of generating a power output at a maximum THD+N threshold of 1.0%. Similarly, FTC staff reviewed a sampling of solid state amplifier devices available on www.crutchfield.com. Out of the 50 devices reviewed, 10 advertised power output ratings at THD levels that exceeded 0.1% but that were within the 1.0% limit. As for vacuum tube amplifiers, many of the reviews on www.stereophile.com did not provide the THD or THD+N level for the rated power output. However, FTC staff’s online research suggests that these amplifiers generally produce a higher level of distortion than solid state amplifiers. See, e.g., Why Tubes Sound Better, Ken Rockwell, https:// www.kenrockwell.com/audio/why-tubes-soundbetter.htm#:∼:text=Tube%20amplifiers %20have%20much%20more,same%20note%2C %20an%20octave%20above (last visited on Mar. 22, 2023) (‘‘Tube amplifiers have much more distortion than solid-state amplifiers . . .’’). ‘‘In addition, one commenter stated he independently evaluated all of the tube amplifiers reviewed by www.stereophile.com and found that ‘‘none achieved THD levels as low as .1% over a 20 Hz to 20kHz bandwidth into 8 Ohms, even when driven with as little as 3 watts.’’ Dennis Murphy (NPRM 9). 33 Dennis Murphy (NPRM 9). Mr. Murphy noted ‘‘the published research has found that consumers cannot begin to detect distortion on music program material until it reaches at least 1% [THD] . . .’’ Id. (citing Mark Sanfilipo, Human Hearing—Distortion Audibility Part 3, Audioholics (Apr. 22, 2005), available at https://www.audioholics.com/roomacoustics/human-hearing-distortion-audibility-part3). The www.audioholics.com web page cited by Mr. Murphy references 6 studies, 4 of which support the notion that the average consumer cannot detect distortion below 1%. Other internet sources seem to support this conclusion. See, e.g., What Is Total Harmonic Distortion (THD)?, Lifewire, https://www.lifewire.com/total-harmonicdistortion-3134704 (last visited Mar. 28, 2023) (‘‘As long as THD is less than one percent, most listeners will not hear any distortion.’’); Understanding Amplifier Power, Geoff the Grey Geek, https:// geoffthegreygeek.com/understanding-amplifierpower/ (last visited on Mar. 28, 2023) (stating THD or THD+N ‘‘should be 1% or less’’ to avoid inflated power output claims achieved at unacceptably high 32 FTC E:\FR\FM\21AUP1.SGM Continued 21AUP1 56784 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules ddrumheller on DSK120RN23PROD with PROPOSALS1 recognizes some amplifiers would not qualify for a power output rating even at the 1.0% THD+N limit. However, these sellers may voluntarily disclose power output ratings that do not conform to the FTC’s testing standard, provided their disclosures comply with the Rule’s requirements governing ‘‘Optional Disclosures’’ set forth in § 432.4.34 Third, the Commission proposes requiring sellers to use specific language to clearly distinguish power output disclosures under § 432.2 from Optional Disclosures under § 432.4. By standardizing the test conditions for power output claims under § 432.2, the Commission anticipates more sellers would also use Optional Disclosures to distinguish specific features of their products. While such claims can be useful to consumers seeking particular audio qualities, they raise the specter of confusion. To address this issue, the Commission proposes to amend both § 432.2 and § 432.4 to require sellers to designate disclosures that meet the FTC’s standard with the words ‘‘FTC Power Output Rating,’’ and those that do not (i.e., disclosures that fall within the Optional Disclosures section) with the words ‘‘This rating does not meet the FTC standard.’’ 35 This information should alert consumers to the type of power output claim being made and facilitate an apples-to-apples comparison across different brands and models. Additionally, the Commission proposes making four non-substantive changes to update and clarify the language of the Rule. First, the Commission proposes eliminating language in § 432.4 that currently incorporates § 432.2’s requirement to disclose the test conditions.36 As levels of distortion); cf. Blind Test Results Part II: ‘‘Is High Harmonic Distortion in Music Audible?’’ Respondent Results, Archimago’s Musings (June 6, 2020), available at https://archimago.blogspot.com/ 2020/06/blind-test-results-part-ii-is-high.html (informal online listening test showing 31% of listeners detected only a ‘‘small difference’’ in sound between a 0.0000002% THD sample and 3.0% THD sample, 21% detected ‘‘very little to no difference,’’ and 18% detected ‘‘no noticeable difference’’). 34 16 CFR 432.4. Both the current and proposed versions of this section mandate that Optional Disclosures be less conspicuous and prominent than the disclosure of the FTC power output rating and that they use testing methods that are generally recognized by the industry, among other requirements. 35 See infra proposed 16 CFR 432.2(c) and 432.4(a), respectively. 36 16 CFR 432.4(a) (requiring ‘‘such power output representation(s) complies with the provisions of § 432.2 of this part; except that if a peak or other instantaneous power rating, such as music power or peak power, is represented under this section, the maximum percentage of total harmonic distortion VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 explained above, the proposed amendments to the Rule eliminate this requirement because such highly technical disclosures are unlikely to protect the general consumer from deceptive power output claims. Second, the Commission proposes to consolidate all provisions that standardize test conditions into a single section. Doing so should improve the Rule’s useability. Currently, the Rule has two sections that contain standard test conditions. Section 432.3 entitled ‘‘Standard Test Conditions’’ contains most of the Rule’s test condition requirements; however, the requirement to test using ‘‘minimum sine wave continuous average power output, in watts, per channel . . .’’ appears in § 432.2(a). Consolidating these requirements into § 432.3 should make the requirements easier to find.37 Third, the Commission proposes modifying § 432.3(e) to clarify that amplifiers must meet the standard for impedance, power band, and THD+N at all levels from 250mW to the disclosed level. Retaining this requirement from the current rule 38 while standardizing test conditions should ensure the advertised power claim does not mask lower power levels at which the amplifier would not meet the FTC’s standard. Fourth, the Commission proposes updates to § 432.4’s prohibition against using an ‘‘asterisk’’ to make disclosures required under the Rule. The new proposal updates this language to similarly prohibit the use of footnotes and other notations typically used to obscure disclosures in advertising.39 Finally, the Commission proposes formalizing its guidance regarding how channels in a multichannel amplifier must be driven when measuring power output under the FTC standard. The FTC standard requires all ‘‘associated channels’’ to be fully driven when measuring power output of the amplifier.40 In 2010, the Commission found that ‘‘associated channels’’ for multichannel systems include, at a minimum, the front-left and front-right channels used for stereo programming, (see § 432.2(d) of this part) may be disclosed only at such rated output’’). 37 See infra proposed 16 CFR 432.3(g) & (h). 38 16 CFR 432.2(b). 39 The prohibition against using an asterisk is currently contained in Note 2 of § 432.4. The Commission’s proposed amendments eliminate Note 2, as well as Note 1 addressing the font style of certain disclosures, and move the substantive requirements of these two Notes into the main text of § 432.2(d) and § 432.4(a) and (b). 40 This requirement is currently in § 432.2(a). The proposed amendments consolidate this requirement with the other standard test conditions in § 432.3. See paragraph accompanying fn. 37 supra. PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 and issued guidance stating that power output measurements that do not meet this floor violate the Rule.41 While ANPR commenters proposed a variety of alternative standards for driving multichannel amplifiers,42 and the NPRM specifically solicited evidence regarding normal usage of multichannel amplifiers,43 no commenters to either the ANPR or the NPRM provided evidence regarding real-life use of multichannel systems. Accordingly, considering the Commission’s 2010 finding and in the absence of any evidence supporting an alternative, the Commission proposes to modify § 432.2 to formalize its long-standing guidance on ‘‘associated channels’’ for multichannel amplifiers—the front-left and front-right channels used for stereo programming must be driven simultaneously.44 IV. Request for Comments The Commission seeks comments on all aspects of the proposed requirements, including the likely effectiveness of the proposed Rule amendments in helping the Commission combat unfair or deceptive practices in the marketing of amplifiers utilized in home entertainment equipment. In particular, the Commission seeks comments on each of the modifications to its NPRM proposal. It also seeks comments on other approaches to addressing unfair and deceptive practices, such as the publication of additional consumer and business 41 The Commission based its guidance on the finding that ‘‘[t]he left and right front channels of home theater multichannel amplifiers are responsible for reproducing a substantial portion of the musical soundtracks of movies, as well as a substantial portion of the program content of music CDs and DVDs.’’ 75 FR 3985, 3987 (Jan. 26, 2010). 42 Commenters to the ANPR proposed fully driving 2 channels, fully driving 3 channels and partially driving the remaining channels, and driving 5 channels at 70%, among other proposals. See, e.g., Leo Nolan (ANPR 67); Gene DellaSala (ANPR 6); Jason Jenkins (ANPR 70). In its response to the NPRM, CTA correctly observed that none of the commenters supported their respective proposals with any evidence of how channels are driven in typical use in the home. CTA (NPRM 8). 43 87 FR 45047, 45049—50 (July 27, 2022). As the Commission stated in the prior 2000 proceeding to amend the Rule, ‘‘[t]he controlling consideration in determining the proper interpretation of ‘associated channels’ is whether audio/video receivers and amplifiers would, when operated by consumers in the home at high playback volume, be required to deliver full rated power output in all channels simultaneously, or whether such maximum stress conditions would more likely be restricted at any given moment of time to certain sub-groupings of available channels.’’ 65 FR 80798, 80800 (Dec. 22, 2000). 44 See infra proposed 16 CFR 432.3(h) (‘‘Associated channels for multichannel amplifiers shall include, at a minimum, the left front and right front channels used for reproducing stereo programming.’’). E:\FR\FM\21AUP1.SGM 21AUP1 ddrumheller on DSK120RN23PROD with PROPOSALS1 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules education material. Commenters should provide any available evidence and data that supports their position, such as empirical data, consumer perception studies, and consumer complaints. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before October 20, 2023. Include ‘‘Amplifier Rule Review; Project No. P974222’’ on your comment. Your comment, including your name and your state, will be placed on the public record of this proceeding, including, to the extent practicable, on the https:// www.regulations.gov website. Postal mail addressed to the Commission is subject to delay due to heightened security screening. As a result, we strongly encourage you to submit your comments online through the https://www.regulations.gov website. To ensure that the Commission considers your online comment, please follow the instructions on the webbased form. If you file your comment on paper, write ‘‘Amplifier Rule Review; Project No. P974222’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC–5610 (Annex A), Washington, DC 20580. If possible, please submit your paper comment to the Commission by overnight service. Because your comment will be placed on the publicly accessible website, https://www.regulations.gov, you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information such as your or anyone’s Social Security number, date of birth, driver’s license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any ‘‘[t]rade secret or any commercial or financial information which . . . is privileged or confidential’’—as provided in section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— including, in particular, competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted publicly at www.regulations.gov—as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request. Visit the FTC website to read this publication and the news release describing it. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before October 20, 2023. For information on the Commission’s privacy policy, including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/ privacy-policy. V. Rulemaking Procedures The Commission finds that using expedited procedures in this rulemaking will serve the public interest. Expedited procedures will support the Commission’s goals of clarifying and updating existing regulations without undue expenditure of resources, while ensuring that the public has an opportunity to submit data, views, and arguments on whether the Commission should amend the Rule. Pursuant to 16 CFR 1.20, the Commission will use the following procedures: (1) publishing this notice of proposed rulemaking; (2) soliciting written comments on the Commission’s proposals to amend the Rule; (3) holding an informal hearing, if requested by interested parties; and (4) announcing final Commission action in a document published in the Federal Register. The Commission, in its discretion, has not chosen to schedule an informal hearing and has not made any initial designations of disputed issues of material fact necessary to be resolved at an informal hearing. Interested persons who wish to make an oral submission at PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 56785 an informal hearing must file a comment in response to this publication and submit a statement identifying their interests in the proceeding and describing any proposals regarding the designation of disputed issues of material fact to be resolved at the informal hearing, on or before October 20, 2023. 16 CFR 1.11. Such requests, and any other motions or petitions in connection with this proceeding, must be filed with the Secretary of the Commission. VI. Preliminary Regulatory Analysis Under Section 22 of the FTC Act, 15 U.S.C. 57b–3, the Commission must issue a preliminary regulatory analysis for a proceeding to amend a rule if the Commission: (1) estimates that the amendment will have an annual effect on the national economy of $100 million or more; (2) estimates that the amendment will cause a substantial change in the cost or price of certain categories of goods or services; or (3) otherwise determines that the amendment will have a significant effect upon covered entities or upon consumers. The Commission has preliminarily determined that the proposed amendments to the Rule will not have such effects on the national economy, on the cost of sound amplification equipment, or on covered businesses or consumers. In developing these proposals, the Commission has sought to minimize prescriptive requirements and provide flexibility to sellers in meeting the Rule’s objectives. The Commission, however, requests comment on the economic effects of the proposed amendments. VII. Regulatory Flexibility Act Requirements The Regulatory Flexibility Act (‘‘RFA’’), 5 U.S.C. 601–612, requires that the Commission conduct an analysis of the anticipated economic impact of the proposed amendment on small entities. The purpose of a regulatory flexibility analysis is to ensure that an agency considers potential impacts on small entities and examines regulatory alternatives that could achieve the regulatory purpose while minimizing burdens on small entities. The RFA requires that the Commission provide an Initial Regulatory Flexibility Analysis (‘‘IRFA’’) with a proposed rule and a Final Regulatory Flexibility Analysis (‘‘FRFA’’) with a final rule, if any, unless the Commission certifies that the rule will not have a significant economic impact on a substantial number of small entities. The Commission believes that the proposed amendment would not have a E:\FR\FM\21AUP1.SGM 21AUP1 56786 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules significant economic impact upon small entities, although it may affect a substantial number of small businesses. Specifically, the proposed change in the disclosure requirements should not significantly increase the costs of small entities that manufacturer or import power amplification equipment for use in the home. Therefore, based on available information, the Commission certifies that amending the Rule as proposed will not have a significant economic impact on a substantial number of small businesses. Although the Commission certifies under the RFA that the proposed amendment would not, if promulgated, have a significant impact on a substantial number of small entities, the Commission has determined, nonetheless, that it is appropriate to publish an IRFA to inquire into the impact of the proposed amendment on small entities. Therefore, the Commission has prepared the following analysis: A. Description of the Reasons That Action by the Agency Is Being Taken The Commission proposes amending the Rule to standardize testing parameters to assist consumers in understanding power output disclosures for amplifiers and to eliminate claims regarding power output that are likely to deceive consumers. B. Statement of the Objectives of, and Legal Basis for, the Proposed Amendment The Commission promulgated the Rule pursuant to Section 18 of the FTC Act, 15 U.S.C. 57a. The proposed amendment would standardize testing parameters for amplifiers to prevent deceptive claims regarding power output and assist consumers in understanding power output disclosures. ddrumheller on DSK120RN23PROD with PROPOSALS1 C. Small Entities to Which the Proposed Amendments Will Apply The Rule covers manufacturers and importers of power amplification equipment for home use. Under the Small Business Size Standards issued by the Small Business Administration, audio and video equipment manufacturers qualify as small businesses if they have 750 or fewer employees.45 The Commission’s staff estimates that a substantial number of the entities covered by the Rule likely qualify as small businesses. 45 U.S. Small Business Administration, Table of Size Standards (Eff. Aug. 19, 2019). VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 D. Projected Reporting, Recordkeeping, and Other Compliance Requirements The Commission is proposing amendments designed to simplify the Rule and provide clearer amplifier power output measurements for consumers to use to compare products. While the amendments modify the Rule’s testing requirements, FTC staff does not anticipate that these changes will result in higher costs for covered entities because manufacturers already test power output for their amplifiers; in many cases under the conditions specified by the proposed amendments. E. Duplicative, Overlapping, or Conflicting Federal Rules The Commission has not identified any other Federal statutes, rules, or policies that would duplicate, overlap, or conflict with the proposed amendment. F. Significant Alternatives to the Proposed Amendment The Commission has not proposed any specific small entity exemption or other significant alternatives because the proposed amendment would not impose any new requirements or compliance costs. VIII. Paperwork Reduction Act The current Rule contains various provisions that constitute information collection requirements as defined by 5 CFR 1320.3(c), the definitional provision within the Office of Management and Budget (‘‘OMB’’) regulations implementing the Paperwork Reduction Act (‘‘PRA’’). OMB has approved the Rule’s existing information collection requirements through April 30, 2024 (OMB Control No. 3084–0105). As described above, the Commission is proposing amendments to simplify power output measurements by standardizing test parameters. The amendments do not change the frequency of the testing or disclosure requirements specified under the Rule. Accordingly, FTC staff does not anticipate this change will result in additional burden hours or higher costs for manufacturers who already test power output for their amplifiers, in many cases testing amplifiers under the conditions specified by the proposed amendments. Therefore, the amendments do not require further OMB clearance. IX. Communications by Outside Parties to the Commissioners or Their Advisors Pursuant to FTC Rule 1.18(c)(1), the Commission has determined that communications with respect to the merits of this proceeding from any PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 outside party to any Commissioner or Commissioner’s advisor shall be subject to the following treatment. Written communications and summaries or transcripts of oral communications shall be placed on the rulemaking record if the communication is received before the end of the comment period. They shall be placed on the public record if the communication is received later. Unless the outside party making an oral communication is a member of Congress, such communications are permitted only if advance notice is published in the Weekly Calendar and Notice of ‘‘Sunshine’’ Meetings.46 List of Subjects in 16 CFR Part 432 Amplifiers, Home entertainment products, Trade practices. For the reasons stated above, the Commission proposes to amend part 432 of title 16 of the Code of Federal Regulations as follows: PART 432—POWER OUTPUT CLAIMS FOR AMPLIFIERS UTILIZED IN HOME ENTERTAINMENT PRODUCTS 1. The authority citation for part 432 continues to read: ■ Authority: 38 Stat. 717, as amended; (15 U.S.C. 41–58). ■ 2. Revise § 432.2 to read as follows: § 432.2 Required disclosures. Whenever any direct or indirect representation is made of the power output, power band or power frequency response, or distortion characteristics of sound power amplification equipment, the manufacturer’s rated power output shall be disclosed subject to the following conditions: (a) The rated power output is measured in compliance with the standard test conditions in § 432.3; (b) The rated power output is disclosed clearly, conspicuously, and more prominently than any other representations or disclosures permitted under this part; (c) The disclosure of the rated power output is clearly and conspicuously labeled ‘‘FTC Power Output Rating’’; and (d) The disclosures or representations required under this section shall not be made by a footnote, asterisk, or similar notation. ■ 3. Revise § 432.3(e) and add paragraphs (g) and (h) to read as follows: § 432.3 Standard test conditions. * * * * * (e) Any power level from 250 mW to the rated power shall be obtainable at all 46 See E:\FR\FM\21AUP1.SGM 15 U.S.C. 57a(i)(2)(A); 16 CFR 1.18(c). 21AUP1 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Proposed Rules frequencies within the rated power band of 20 Hz to 20 kHz without exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an impedance of 8 ohms after input signals at said frequencies have been continuously applied at full rated power for not less than five (5) minutes at the amplifier’s auxiliary input, or if not provided, at the phono input. Provided, however, that for amplifiers utilized as a component in a self-powered subwoofer in a selfpowered subwoofer-satellite speaker system that employs two or more amplifiers dedicated to different portions of the audio frequency spectrum, any power level from 250 mW to the rated power shall be obtainable at all frequencies within the subwoofer amplifier’s intended operating bandwidth without exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an impedance of 8 ohms after input signals at said frequencies have been continuously applied at full rated power for not less than five (5) minutes at the amplifier’s auxiliary input, or if not provided, at the phono input. * * * * * (g) Rated power shall be minimum sine wave continuous average power output, in watts, per channel (if the equipment is designed to amplify two or more channels simultaneously), measured with all associated channels fully driven to rated per channel power. (h) Associated channels for multichannel amplifiers shall include, at a minimum, the left front and right front channels used for reproducing stereo programming. Provided, however, when measuring the maximum per channel output of self-powered combination speaker systems that employ two or more amplifiers dedicated to different portions of the audio frequency spectrum, such as those incorporated into combination subwoofer-satellite speaker systems, only those channels dedicated to the same audio frequency spectrum should be considered associated channels. ■ 4. Revise § 432.4 to read as follows: ddrumheller on DSK120RN23PROD with PROPOSALS1 § 432.4 Optional disclosures. Other operating characteristics and technical specifications not required in § 432.2 of this part may be disclosed. Provided that: (a) Any other power output is rated by the manufacturer, expressed in minimum watts per channel, and clearly and conspicuously labeled ‘‘This rating does not meet the FTC standard’’ without the use of a footnote, asterisk, or similar notation to make the representation; VerDate Sep<11>2014 17:12 Aug 18, 2023 Jkt 259001 (b) All disclosures or representations made under this section are less conspicuously, and prominently made than any rated power output disclosure required in § 432.2. Any disclosure or representation bold faced or more than two-thirds the height of any rated power output disclosure required in § 432.2 is not less prominent; and (c) The rating and testing methods or standards used in determining such representations are well known and generally recognized by the industry at the time the representations or disclosures are made, are neither intended nor likely to deceive or confuse consumers, and are not otherwise likely to frustrate the purpose of this part. By direction of the Commission. April J. Tabor, Secretary. [FR Doc. 2023–16792 Filed 8–18–23; 8:45 am] BILLING CODE 6750–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 62 [EPA–R07–OAR–2023–0199; FRL–10830– 01–R7] Approval of State Plans for Designated Facilities and Pollutants; MO; Approval and Promulgation of Implementation Plans; Control of Emissions From Existing Municipal Solid Waste Landfills Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve a Clean Air Act (CAA) plan and two state rules submitted by the Missouri Department of Natural Resources (MoDNR) on July 25, 2022. This plan was submitted to fulfill the state’s obligations under the CAA to implement and enforce the requirements of the Emissions Guidelines and Compliance Times for municipal solid waste (MSW) landfills. This plan includes an inventory of affected sources and explains how the state rules fulfill the regulatory requirements needed for EPA to approve the plan. In addition, the EPA is proposing to approve a revision to the State Implementation Plan (SIP) submitted by MoDNR for the purpose of revising the Missouri rule entitled ‘‘Municipal Solid Waste Landfills’’ to incorporate by reference Emission Guidelines (EG) for MSW landfills. EPA SUMMARY: PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 56787 is proposing to approve this SIP revision based on EPA’s finding that the rule is as stringent as the rule it replaces and fulfills the requirements of the CAA for the protection of the ozone National Ambient Air Quality Standards (NAAQS) in St. Louis. DATES: Comments must be received on or before September 20, 2023. ADDRESSES: You may send comments, identified by Docket ID No. EPA–R07– OAR–2023–0199 to www.regulations.gov. Follow the online instructions for submitting comments. Instructions: All submissions received must include the Docket ID No. for this rulemaking. Comments received will be posted without change to www.regulations.gov, including any personal information provided. For detailed instructions on sending comments and additional information on the rulemaking process, see the ‘‘Written Comments’’ heading of the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: Allyson Prue, Environmental Protection Agency, Region 7 Office, Air Permitting and Planning Branch, 11201 Renner Boulevard, Lenexa, Kansas 66219; telephone number: (913) 551–7277; email address: prue.allyson@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to the EPA. Table of Contents I. Written Comments II. What is being addressed in this document? III. CAA 111(d) and Landfill Emission Guidelines Background IV. Background for Missouri’s Municipal Solid Waste Landfill Rule for the St. Louis Ozone Nonattainment Area V. Summary and Analysis of the 111(d) Plan Submittal VI. Summary and Analysis of Missouri’s SIP Revision VII. Proposed Action VIII. Incorporation by Reference IX. Statutory and Executive Order Review I. Written Comments Submit your comments, identified by Docket ID No. EPA–R07–OAR–2023– 0199, at www.regulations.gov. Once submitted, comments cannot be edited or removed from Regulations.gov. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and E:\FR\FM\21AUP1.SGM 21AUP1

Agencies

[Federal Register Volume 88, Number 160 (Monday, August 21, 2023)]
[Proposed Rules]
[Pages 56780-56787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16792]


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FEDERAL TRADE COMMISSION

16 CFR Part 432

RIN 3084-AB62


Trade Regulation Rule Relating to Power Output Claims for 
Amplifiers Utilized in Home Entertainment Products

AGENCY: Federal Trade Commission.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') seeks 
public comment on proposed amendments to the Trade Regulation Rule 
Relating to Power Output Claims for Amplifiers Utilized in Home 
Entertainment Products (``Amplifier Rule'' or ``Rule''). The proposed 
amendments modify the previous proposal by updating a required test 
condition (total harmonic distortion), improving differentiation 
between power output disclosures that comply with the Rule's testing 
methods and those that do not, and modernizing as well as clarifying 
Rule language considering the foregoing modifications. Additionally, 
the proposed amendments now formalize prior Commission guidance on 
applying the Rule to multichannel amplifiers.

DATES: Written comments must be received on or before October 20, 2023. 
Parties interested in an opportunity to present views orally should 
submit a request to do so as explained below, and such requests must be 
received on or before October 20, 2023.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Amplifier Rule Review; 
Project No. P974222'' on your comment and file your comment online 
through https://www.regulations.gov. If you prefer to file your comment 
on paper,

[[Page 56781]]

mail your comment to the following address: Federal Trade Commission, 
Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 
(Annex A), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Hong Park, Attorney, (202) 326-2158, 
[email protected], Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW, Mail Stop CC-
6316, Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission promulgated the Amplifier Rule in 1974 to address 
sellers' failure to provide essential pre-purchase information 
regarding the performance of home entertainment amplifiers.\1\ 
Specifically, manufacturers described their products' performance 
through power output claims (e.g., ``25 Watts''), but tested their 
amplifiers under a variety of conditions and procedures. Thus, 
consumers could not effectively use advertised wattage claims to 
compare brands or determine how individual amplifiers would perform. At 
the time, the Commission noted, ``[s]ince the mid-50's the [audio] 
industry'' had failed ``to agree upon a single industry standard which 
is meaningful to the consumer.'' \2\ Accordingly, the Rule standardized 
the measurement and disclosure of some, but not all, performance 
characteristics of power amplification equipment to ``assure that . . . 
performance characteristics are based upon conditions of normal use by 
the consumer, i.e., conditions which are encountered in the home.'' \3\
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    \1\ 39 FR 15387 (May 3, 1974).
    \2\ Id. at 15388.
    \3\ Id. at 15392. Merely testing amplifiers under identical test 
conditions will not produce useful consumer information if the test 
conditions differ significantly from normal use conditions.
---------------------------------------------------------------------------

    Under the Rule, sellers making certain power claims (i.e., for 
power output, power band or power frequency response, or distortion 
characteristics) must disclose power output measured under specified 
test conditions. For example, amplifiers must be tested at an ambient 
air temperature of at least 77 [deg]F (25 [deg]C).\4\ The Rule, 
however, does not specify values for three test conditions that 
strongly affect power output measurements: (1) load impedance; \5\ (2) 
rated power band or power frequency response; \6\ and (3) total 
harmonic distortion (``THD'').\7\ Instead, the original Rule required 
disclosure of these values wherever sellers made certain power 
claims.\8\ In 2000, the Commission eliminated this disclosure 
requirement in ``media advertising'' but retained the requirement in 
product brochures and manufacturer specification sheets.\9\
---------------------------------------------------------------------------

    \4\ This requirement prevents testing with cooling equipment 
while driving amplifiers to high power outputs that would overheat 
amplifiers during normal use. See 16 CFR 432.3(d) (``The 
preconditioning and testing shall be in still air and an ambient 
temperature of at least 77 [deg]F (25 [deg]C) . . . .'').
    \5\ The current Rule sets a default load impedance of 8 ohms for 
measuring power output but permits measurement at a different load 
impedance if the amplifier is designed primarily for that impedance. 
16 CFR 432.2(a). ``[T]he lower the load impedance utilized in 
testing . . . equipment, the higher the output of the amplifier.'' 
39 FR 15387, 15390 (May 3, 1974). For example, an amplifier that 
outputs 550 watts into 2 ohms might only output 350 watts into 4 
ohms and 215 watts into 8 ohms. See Speaker Impedance Changes 
Amplifier Power, Geoff the Grey Geek, https://geoffthegreygeek.com/speaker-impedance-changes-amplifier-power/ (last visited Mar. 22, 
2023).
    \6\ High quality amplifiers can output a broad range of 
frequencies, such as the sounds of all the instruments in an 
orchestra, at high power. Lower quality amplifiers can only output 
certain frequencies, such as 1 kHz (e.g., the sound of a trumpet), 
at high power, and output lower frequencies (e.g., a timpani or 
bass) or higher frequencies (e.g., a piccolo) at lower power. Power 
output measurements made at a single frequency or over a limited 
power band do not permit consumers to distinguish between these 
quality differences in amplifiers. The Commission has stated ``a 
measurement [on a 1 kHz test signal] is inherently deceptive to the 
consumer who expects that a piece of equipment represented as being 
capable of a stated power output will deliver that power output 
across its full audio range.'' 39 FR 15387, 15390 (May 3, 1974).
    \7\ The output of an amplifier driven to increasingly higher 
power will distort and sound different from the original 
performance. When the Commission promulgated the Rule, it received 
evidence that distortion limits during testing affect power output 
measurements. For example, the same amplifier might output 20 watts 
if driven only until the output reaches 0.5% THD, and output 30 
watts when driven to 5% THD. The Rule requires disclosure of the THD 
during testing so consumers can determine the value of power output 
measurements. See 39 FR 15387, 15391-92 (May 3, 1974).
    \8\ 16 CFR 432.2 (1974).
    \9\ 65 FR 81232 (Dec. 22, 2000).
---------------------------------------------------------------------------

    Pursuant to its ongoing regulatory review schedule, on December 18, 
2020, the Commission published an advance notice of proposed rulemaking 
(``ANPR'') seeking comment on the Amplifier Rule. 85 FR 82391 (Dec. 18, 
2020). Specifically, the ANPR sought comments regarding possible Rule 
improvements, the continuing need for the Rule, the Rule's costs and 
benefits, as well as whether, and how, technological or economic 
changes have affected the Rule.
    In response, the Commission received 530 unique comments, including 
from amplifier and speaker manufacturers, amplifier sellers and 
purchasers, and engineers or journalists in the audio field.\10\ All 
but one commenter supported retaining the Rule.\11\ Based on this near 
universal support, the Commission concluded there was a continuing need 
for the Rule.
---------------------------------------------------------------------------

    \10\ These comments are available at https://www.regulations.gov/document/FTC-2020-0087-0001/comment. In this 
publication, commenters are referred to by name, the acronym for the 
notice to which the commenter responded (either ANPR or NPRM), and 
the number assigned to each comment. For example, the comment to the 
ANPR from Garry Grube, which was assigned ID FTC-2020-0087-0187 on 
www.regulations.gov, is referred to as ``Garry Grube (ANPR 187).''
    \11\ The one commenter did not provide a substantive comment.
---------------------------------------------------------------------------

    Although commenters overwhelmingly supported the Rule, some 
recommended amendments. For example, many commenters urged the 
Commission to require uniform power band, load impedance, and THD 
limits to prevent manipulation of these three test conditions.\12\
---------------------------------------------------------------------------

    \12\ For instance, Alan McConnaughey (ANPR 5) commented, ``More 
rules should be [enacted] to require 8 ohm ratings so everything is 
apples do [sic] apples.'' Jim McCabe (ANPR 378) commented that 
amplifiers should be tested ``driven from 20 to 20k'' to ``stop the 
lying.'' Danny Anonymous (ANPR 4325) commented that, ``[t]o 
eliminate confusion, just use Output Watts@1%THD.'' See also, e.g., 
comments from Dennis Murphy, Philharmonic Audio (ANPR 525) and David 
Rich (ANPR 548). In all, twenty-seven commenters recommended 
specifying the load impedance; 36 recommended specifying the power 
band to be 20 Hz to 20 kHz; 26 recommended specifying a THD or 
requiring a low THD; and 159 recommended, in conjunction with a 
recommendation regarding multichannel amplifier testing, specifying 
values for all three test conditions.
---------------------------------------------------------------------------

    Consistent with these comments, Commission staff found this 
manipulation ubiquitous in the marketplace. Specifically, staff found 
dozens of examples of the same equipment advertised with significantly 
different power output claims (e.g., some sellers advertised a 
particular

[[Page 56782]]

model with 45 watts output per channel, while others advertised the 
same model with 100 watts per channel \13\). Using specification sheets 
on manufacturers' websites, staff confirmed these widely divergent 
claims resulted from different testing parameters.
---------------------------------------------------------------------------

    \13\ See, e.g., Onkyo TX-8220, Crutchfield, https://www.crutchfield.com/p_580TX8220/Onkyo-TX-8220.html (last visited on 
Oct. 1, 2021); Onkyo TX-8220, Amazon.com, https://www.amazon.com/Onkyo-TX-8220-Channel-Receiver-Bluetooth/dp/B075P831VY/ref=sr_1_1?dchild=1&keywords=Onkyo+TX-8220&qid=1633096775&sr=8-1 
(viewed on Oct. 1, 2021; advertisement subsequently revised).
---------------------------------------------------------------------------

    Based on the comments and staff's review, the Commission found 
requiring disclosure of test conditions is unlikely to prevent 
deceptive power output claims. Test conditions are highly technical and 
require complex calculations to convert claims into apples-to-apples 
power output comparisons. Thus, the average consumer is unlikely to 
understand or use the disclosed test conditions to avoid deception.\14\ 
This problem is amplified by the fact that consumers now shop online 
more frequently, providing fewer opportunities to listen to equipment 
before purchasing.
---------------------------------------------------------------------------

    \14\ Staff has surveyed numerous academic articles finding that 
consumers are not able to effectively comprehend highly technical 
disclosures; no surveyed research found to the contrary. See, e.g., 
Omri Ben-Shahar and Carl E. Schneider, The Failure of Mandated 
Disclosure, 159 U. Pa. L. Rev. 647, available at https://www.jstor.org/stable/41149884. The Commission promulgated the Rule 
so consumers would not need to perform complex calculations to 
derive useful power ratings. It found that, prior to the Rule, 
consumers had to ``deduct 10 to 25 percent [from the ``music power'' 
ratings previously claimed] and divide by 2'' to derive power 
ratings that reflected normal usage. 39 FR 15387, 15388 (May 3, 
1974). Additionally, the Commission has previously concluded that 
``an insufficient number of consumers . . . understand the meaning 
and significance of . . . disclosures concerning power bandwidth and 
impedance.'' 63 FR 37238, 37239 (July 9, 1998).
---------------------------------------------------------------------------

    To address widespread misleading power output claims, the 
Commission published a notice of proposed rulemaking (``NPRM''), 
proposing an amendment to the Amplifier Rule to standardize the three 
test conditions.\15\ Specifically, the Commission proposed the 
following standard values: (1) a load impedance of 8 ohms; (2) a power 
band of 20 Hz to 20 kHz (except for self-powered subwoofer systems); 
and (3) a THD limit of less than 0.1%. Staff's review found amplifiers 
are generally designed to drive a nominal load impedance of 8 ohms; 20 
Hz to 20 kHz covers the normal range of human hearing; \16\ and 0.1% 
THD does not audibly distort a signal. Several commenters suggested 
these test conditions, and many manufacturers' specification sheets 
already disclose power outputs tested at 8 ohms, 20 Hz to 20 kHz, and 
at THD limits of, or slightly below, 0.1%.
---------------------------------------------------------------------------

    \15\ 87 FR 45047 (July 27, 2022).
    \16\ The Commission's NPRM proposal excluded amplifiers in self-
powered subwoofers used in systems that employ two or more 
amplifiers dedicated to different portions of the audio frequency 
spectrum from being tested over a power band of 20 Hz to 20 kHz. The 
Commission has previously recognized that, while ``stand-alone . . . 
amplifiers . . . must reproduce signals covering the full musical 
frequency bandwidth,'' ``self-powered subwoofer systems . . . 
incorporate crossover circuitry that filters out frequencies above 
the bass range,'' and the amplifiers in self-powered subwoofer 
systems only amplify bass frequencies. 64 FR 38610, 38613-4 (July 
19, 1999). Consequently, the Commission proposed to limit the power 
band for testing self-powered subwoofer amplifiers to the 
frequencies within those amplifiers' intended operating bandwidth. 
The proposed amendments would require testing amplifiers in self-
powered full-range loudspeakers, such as full-range Bluetooth 
speakers that output more than two watts, over a power band of 20 Hz 
to 20 kHz.
---------------------------------------------------------------------------

II. Comments Received in Response to NPRM

    The Commission received nine unique comments in response to the 
NPRM.\17\ Seven either broadly supported the regulation of power output 
claims or the standardization of test conditions.\18\ Two of these 
commenters, however, expressed concern about the THD limit. They 
explained many vacuum tube and solid state amplifiers ``would not be 
able to qualify for a power output claim'' under the proposed 0.1% 
limit.\19\ Accordingly, they recommended the Commission allow 
manufacturers to disclose their chosen THD level rather than setting a 
fixed limit. Additionally, one commenter recommended replacing the term 
``total harmonic distortion'' with ``THD with noise,'' or ``THD+N,'' to 
align the Rule with the Commission's original intent.\20\
---------------------------------------------------------------------------

    \17\ These comments can be found at https://www.regulations.gov/document/FTC-2022-0048-0001. The Commission received a total of 11 
comments. However, two of these comments neither responded to the 
NPRM nor discussed any aspect of the Rule. A third comment raised 
concerns outside the scope of this proceeding (e.g., health risks 
posed by amplifiers) and did not supply any supporting evidence. See 
Chelsy Graves (NPRM 5).
    \18\ See, e.g., Travis Surprenant (NPRM 2) (``It needs to be a 
uniform rating to ensure consumers are comparing products on a level 
playing field.''); Peiyan Wang (NPRM 4) (``A uniform testing method 
could provide convenience for consumers to compare different 
products.''); Kiet Hoang (NPRM 10) (``I believe it needs to be a 
uniform testing method in order to provide the customers to compare 
the products on a comparable basis.'').
    \19\ Dennis Murphy (NPRM 9) (stating that all the tube 
amplifiers reviewed by the audio publication Stereophile over the 
past 10 years and many solid state amplifiers could not meet the 
0.1% maximum THD requirement); see also E.W. Blackwood (NPRM 7) 
(``0.1% total harmonic distortion (THD) is too restrictive and would 
have an impact on many manufacturers.'').
    \20\ E.W. Blackwood (NPRM 7).
---------------------------------------------------------------------------

    Only one commenter opposed the Commission's proposal in its 
entirety. The Consumer Technology Association (``CTA'') stated the 
Commission's proposal is unnecessary for component audio devices 
because manufacturers ``generally already use [the Commission's 
proposed] parameters to test their devices.'' \21\ As for integrated 
audio devices, such as soundbars, CTA stated that standardizing the 
power output test conditions would be irrelevant to consumers. 
According to CTA, consumers do not evaluate ``specific technical 
capabilities of individual components,'' such as power output, but 
rather look to the ``immersive audio experience'' reviewed in online 
videos and other online sources. Therefore, CTA urged the Commission to 
reject the proposal, or at a minimum, to narrow its application to 
component audio devices and not integrated audio devices.
---------------------------------------------------------------------------

    \21\ CTA (NPRM 8).
---------------------------------------------------------------------------

III. Analysis and Additional Proposed Amendments to the Rule

    After reviewing these comments, the Commission reaffirms its 
proposed approach of standardizing power output test conditions 
governing impedance, power band, and distortion. The Commission 
proposed standardizing these conditions based on the vast majority of 
comments,\22\ as well as Commission staff's research, indicating 
standardization is necessary to eliminate conflicting and confusing 
power output claims. CTA's comments do not change this conclusion. CTA 
asserts such standardization is unnecessary with respect to component 
audio devices because manufacturers ``generally'' use the Commission's 
proposed standard. However, staff found numerous instances of sellers 
advertising component audio devices using power output standards that 
differed from each other and from the Commission's proposal.\23\ CTA 
also

[[Page 56783]]

contends power output information is irrelevant to consumers of 
integrated home audio equipment. In contrast, Commission staff easily 
found multiple instances of sellers advertising such equipment using 
power output claims, presumably because they believe consumers find 
power output information relevant to their purchasing decision.\24\
---------------------------------------------------------------------------

    \22\ See 87 FR 45047, 45049 (July 27, 2022).
    \23\ See, e.g., Denon PMA-600NE Stereo Integrated Amplifier, 
Amazon.com, https://www.amazon.com/Denon-PMA-600NE-Integrated-Amplifier-Connectivity/dp/B07XL4TM3M/ref=sr_1_4?crid=3VROHBG0858SO&keywords=integrated%2Bamplifier&qid=1678911254&sprefix=integrated%2Bamplifier%2Caps%2C92&sr=8-4&th=1 (last 
visited on Mar. 22, 2023) (advertising 70 watts at 4 ohms, 1kHz, THD 
0.7%); Onkyo A-9110 Home Audio Integrated Stereo Amplifier--Black, 
Amazon.com, https://www.amazon.com/Onkyo-A-9110-Integrated-Stereo-Amplifier/dp/B07J2S755K/ref=sr_1_6?crid=3VROHBG0858SO&keywords=integrated+amplifier&qid=1678911254&sprefix=integrated+amplifier%2Caps%2C92&sr=8-6 (last visited 
on Mar. 22, 2023) (advertising 50 watts at 4 ohms, 20Hz-20kHz, 0.9% 
THD); Russound P75, Crutchfield, https://www.crutchfield.com/p_543P75/Russound-P75.html?tp=48757 (Mar. 22, 2023) (advertising 60 
watts into 8 ohms, 1kHz, 1% THD).
    \24\ See, e.g., Nakamichi Shockwafe Ultra 9.2.4 Channel 1000W 
Dolby Atmos/DTS:X Soundbar with Dual 10'' Subwoofers (Wireless) & 4 
Rear Surround Speakers. Enjoy Plug and Play Explosive Bass & High 
End Cinema Surround, Amazon.com, https://www.amazon.com/Nakamichi-Shockwafe-Ultra-9-2Ch-DTS/dp/B07HHZ94BW/ref=sr_1_2_sspa?c=ts&keywords=Home+Theater+Systems&qid=1678919591&s=aht&sr=1-2-spons&ts_id=281056&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUEzR0VUSE9aNjNEUDlIJmVuY3J5cHRlZElkPUEwODM4ODgyMlE1VDYyMVBUTVRCVSZlbmNyeXB0ZWRBZElkPUEwMzkwOTY1Mk9WSjkwMjNPNkg1QSZ3aWRnZXROYW1lPXNwX2F0ZiZhY3Rpb249Y2xpY2tSZWRpcmVjdCZkb05vdExvZ0NsaWNrPXRydWU= (advertising 1000 watts); 
Bobtot Home Theater Systems Surround Sound Speakers--1200 Watts 10 
inch Subwoofer 5.1/2.1 Channel Home Audio Stereo System, Amazon.com, 
https://www.amazon.com/Bobtot-Theater-System-Surround-Speakers/dp/B09MRW83PZ/ref=sxin_16_pa_sp_search_thematic_sspa?c=ts&content-id=amzn1.sym.711b623b-fef6-4340-9590-f21d01371ab3%3Aamzn1.sym.711b623b-fef6-4340-9590-f21d01371ab3&cv_ct_cx=Home+Theater+Systems&keywords=Home+Theater+Systems&pd_rd_i=B09MRW83PZ&pd_rd_r=d167b2e2-a2f1-4119-9562-90cc123dce28&pd_rd_w=W8eOP&pd_rd_wg=f6w1j&pf_rd_p=711b623b-fef6-4340-9590-f21d01371ab3&pf_rd_r=ZDVKAESB3BDAQR1KTNJA&qid=1678919591&s=aht&sbo=RZvfv%2F%2FHxDF%2BO5021pAnSA%3D%3D&sr=1-1-2b34d040-5c83-4b7f-ba01-15975dfb8828-spons&ts_id=281056&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUEzR0VUSE9aNjNEUDlIJmVuY3J5cHRlZElkPUEwMTM2MzA1MkNRTkFXTVg2NVUzTyZlbmNyeXB0ZWRBZElkPUEwNzgwNDkxVUxPRFRWSlBWVEI4JndpZGdldE5hbWU9c3Bfc2VhcmNoX3RoZW1hdGljJmFjdGlvbj1jbGlja1JlZGlyZWN0JmRvTm90TG9nQ2xpY2s9dHJ1ZQ== (last 
visited on Mar. 22, 2023) (advertising 1200 watts); Rockville HTS56 
1000w 5.1 Channel Home Theater System/Bluetooth/USB+8'' Subwoofer, 
Amazon.com, https://www.amazon.com/Rockville-HTS56-Channel-Bluetooth-Subwoofer/dp/B076R7HYKN/ref=sr_1_6?c=ts&keywords=Home+Theater+Systems&qid=1678919591&s=aht&sr=1-6&ts_id=281056 (last visited on Mar. 22, 2023) (advertising 1000 
watts).
---------------------------------------------------------------------------

    Based on the comments, however, the Commission modifies its NPRM 
proposal in three ways. First, it proposes replacing the Rule's 
reference to ``total harmonic distortion'' with ``total harmonic 
distortion plus noise'' (``THD+N'').\25\ As one commenter observed, the 
modern audio equipment industry distinguishes between THD and 
THD+N.\26\ THD measures only the discrepancy in harmonics between the 
original audio signal and the amplified signal (harmonic 
distortion).\27\ In contrast, THD+N measures both harmonic distortion 
and noise introduced by the power line, the electronics of the 
amplifier, and other sources.\28\ When the Commission originally 
promulgated the Rule, it intended the term ``total harmonic 
distortion'' to capture both harmonic distortion and noise signified by 
the broader term THD+N.\29\ The modified proposal preserves this 
original meaning.\30\
---------------------------------------------------------------------------

    \25\ See infra proposed 16 CFR 432.3(e).
    \26\ E.W. Blackwood (NPRM 7).
    \27\ Typically, the original audio signal used in measuring 
distortion is a sinusoidal wave with a defined frequency called a 
``fundamental frequency.'' Amplifying the original audio signal may 
generate harmonics, which are sinusoidal waves with frequencies that 
are a positive integer multiple of the fundamental frequency. 
Harmonic distortion is the measure of the harmonics introduced into 
the amplified output signal. See THD And THD+N--Similar But Not The 
Same, Audio Precision, Inc., https://www.ap.com/blog/thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2023); What Is 
Total Harmonic Distortion Plus Noise (THD+N)?, Audio Interfacing 
(Nov. 15, 2022), https://audiointerfacing.com/total-harmonic-
distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal.; Understanding, Calculating, and Measuring Total Harmonic 
Distortion (THD), All About Circuits (Feb. 20, 2017), https://
www.allaboutcircuits.com/technical-articles/the-importance-of-total-
harmonic-distortion/
#:~:text=Harmonics%20or%20harmonic%20frequencies%20of,of%20a%20period
ic%20signal%20shows.
    \28\ See, e.g., What Is Total Harmonic Distortion Plus Noise 
(THD+N)?, Audio Interfacing (Nov. 15, 2022), https://
audiointerfacing.com/total-harmonic-distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal.; More About THD+N And THD, Audio Precision, Inc. (Feb. 1, 
2013), https://www.ap.com/technical-library/more-about-thdn-and-thd/
; Not All Distortion Is Created Equal--A Guide to THD & THD+N, 
Bandwidth Audio, https://www.bandwidthaudio.com/post/not-all-distortion-is-created-equal-a-guide-to-thd-thd-n (last visited Mar. 
22, 2023).
    \29\ For instance, the Commission's intent to include noise in 
using the term ``total harmonic distortion'' is demonstrated by its 
explanation of Sec.  432.3(a) when it first promulgated the Rule. 
That section requires AC power lines for testing equipment capable 
of using AC as a power source. The Commission explained that testing 
cannot artificially eliminate the ``hum and noise factor'' present 
in AC power lines by using a battery to power equipment capable of 
AC power. 39 FR 15387, 15393 (May 3, 1974).
    \30\ The modified proposal also reduces the burden on industry. 
Measuring THD+N is simpler because it does not require the 
additional step of separating harmonic distortion from noise for 
measuring THD. See, e.g., THD And THD+N--Similar But Not The Same, 
Audio Precision, Inc., https://www.ap.com/blog/thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2013) (``[T]he test 
setup [for measuring THD] is inherently more complicated than the 
THD+N technique.''); What Is Total Harmonic Distortion Plus Noise 
(THD+N)?, Audio Interfacing (Nov. 15, 2022), https://
audiointerfacing.com/total-harmonic-distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal. (``[I]n practice THD+N is easier to measure than THD.'').
---------------------------------------------------------------------------

    Second, the Commission proposes raising the THD+N limit to 1.0% to 
address commenters' concerns that a significant number of amplifiers on 
the market cannot qualify for any power output claim under the NPRM 
proposal's 0.1% limit.\31\ Staff research confirms that a number of 
entry-level solid state amplifiers cannot rate the power output at a 
0.1% THD+N limit but most can rate at a 1.0% limit.\32\ Although the 
new proposal allows a higher percentage of distortion, research 
referenced by commenter Dennis Murphy indicates the average consumer 
cannot audibly detect distortion at the 1.0% level, especially when 
listening to content typically played on home audio equipment, such as 
music and movie programming.\33\ The Commission

[[Page 56784]]

recognizes some amplifiers would not qualify for a power output rating 
even at the 1.0% THD+N limit. However, these sellers may voluntarily 
disclose power output ratings that do not conform to the FTC's testing 
standard, provided their disclosures comply with the Rule's 
requirements governing ``Optional Disclosures'' set forth in Sec.  
432.4.\34\
---------------------------------------------------------------------------

    \31\ See infra proposed 16 CFR 432.3(e).
    \32\ FTC staff examined graphs of THD+N vs. 1kHz continuous 
output power into 8 ohms for a sampling of solid state amplifier 
devices on www.stereophile.com. 8 out of 30 devices were not capable 
of generating any power output at a maximum THD+N threshold of 0.1%, 
but all 30 devices were capable of generating a power output at a 
maximum THD+N threshold of 1.0%. Similarly, FTC staff reviewed a 
sampling of solid state amplifier devices available on 
www.crutchfield.com. Out of the 50 devices reviewed, 10 advertised 
power output ratings at THD levels that exceeded 0.1% but that were 
within the 1.0% limit. As for vacuum tube amplifiers, many of the 
reviews on www.stereophile.com did not provide the THD or THD+N 
level for the rated power output. However, FTC staff's online 
research suggests that these amplifiers generally produce a higher 
level of distortion than solid state amplifiers. See, e.g., Why 
Tubes Sound Better, Ken Rockwell, https://www.kenrockwell.com/audio/
why-tubes-sound-
better.htm#:~:text=Tube%20amplifiers%20have%20much%20more,same%20note
%2C%20an%20octave%20above (last visited on Mar. 22, 2023) (``Tube 
amplifiers have much more distortion than solid-state amplifiers . . 
.''). ``In addition, one commenter stated he independently evaluated 
all of the tube amplifiers reviewed by www.stereophile.com and found 
that ``none achieved THD levels as low as .1% over a 20 Hz to 20kHz 
bandwidth into 8 Ohms, even when driven with as little as 3 watts.'' 
Dennis Murphy (NPRM 9).
    \33\ Dennis Murphy (NPRM 9). Mr. Murphy noted ``the published 
research has found that consumers cannot begin to detect distortion 
on music program material until it reaches at least 1% [THD] . . .'' 
Id. (citing Mark Sanfilipo, Human Hearing--Distortion Audibility 
Part 3, Audioholics (Apr. 22, 2005), available at https://www.audioholics.com/room-acoustics/human-hearing-distortion-audibility-part-3). The www.audioholics.com web page cited by Mr. 
Murphy references 6 studies, 4 of which support the notion that the 
average consumer cannot detect distortion below 1%. Other internet 
sources seem to support this conclusion. See, e.g., What Is Total 
Harmonic Distortion (THD)?, Lifewire, https://www.lifewire.com/total-harmonic-distortion-3134704 (last visited Mar. 28, 2023) (``As 
long as THD is less than one percent, most listeners will not hear 
any distortion.''); Understanding Amplifier Power, Geoff the Grey 
Geek, https://geoffthegreygeek.com/understanding-amplifier-power/ 
(last visited on Mar. 28, 2023) (stating THD or THD+N ``should be 1% 
or less'' to avoid inflated power output claims achieved at 
unacceptably high levels of distortion); cf. Blind Test Results Part 
II: ``Is High Harmonic Distortion in Music Audible?'' Respondent 
Results, Archimago's Musings (June 6, 2020), available at https://archimago.blogspot.com/2020/06/blind-test-results-part-ii-is-high.html (informal online listening test showing 31% of listeners 
detected only a ``small difference'' in sound between a 0.0000002% 
THD sample and 3.0% THD sample, 21% detected ``very little to no 
difference,'' and 18% detected ``no noticeable difference'').
    \34\ 16 CFR 432.4. Both the current and proposed versions of 
this section mandate that Optional Disclosures be less conspicuous 
and prominent than the disclosure of the FTC power output rating and 
that they use testing methods that are generally recognized by the 
industry, among other requirements.
---------------------------------------------------------------------------

    Third, the Commission proposes requiring sellers to use specific 
language to clearly distinguish power output disclosures under Sec.  
432.2 from Optional Disclosures under Sec.  432.4. By standardizing the 
test conditions for power output claims under Sec.  432.2, the 
Commission anticipates more sellers would also use Optional Disclosures 
to distinguish specific features of their products. While such claims 
can be useful to consumers seeking particular audio qualities, they 
raise the specter of confusion. To address this issue, the Commission 
proposes to amend both Sec.  432.2 and Sec.  432.4 to require sellers 
to designate disclosures that meet the FTC's standard with the words 
``FTC Power Output Rating,'' and those that do not (i.e., disclosures 
that fall within the Optional Disclosures section) with the words 
``This rating does not meet the FTC standard.'' \35\ This information 
should alert consumers to the type of power output claim being made and 
facilitate an apples-to-apples comparison across different brands and 
models.
---------------------------------------------------------------------------

    \35\ See infra proposed 16 CFR 432.2(c) and 432.4(a), 
respectively.
---------------------------------------------------------------------------

    Additionally, the Commission proposes making four non-substantive 
changes to update and clarify the language of the Rule. First, the 
Commission proposes eliminating language in Sec.  432.4 that currently 
incorporates Sec.  432.2's requirement to disclose the test 
conditions.\36\ As explained above, the proposed amendments to the Rule 
eliminate this requirement because such highly technical disclosures 
are unlikely to protect the general consumer from deceptive power 
output claims.
---------------------------------------------------------------------------

    \36\ 16 CFR 432.4(a) (requiring ``such power output 
representation(s) complies with the provisions of Sec.  432.2 of 
this part; except that if a peak or other instantaneous power 
rating, such as music power or peak power, is represented under this 
section, the maximum percentage of total harmonic distortion (see 
Sec.  432.2(d) of this part) may be disclosed only at such rated 
output'').
---------------------------------------------------------------------------

    Second, the Commission proposes to consolidate all provisions that 
standardize test conditions into a single section. Doing so should 
improve the Rule's useability. Currently, the Rule has two sections 
that contain standard test conditions. Section 432.3 entitled 
``Standard Test Conditions'' contains most of the Rule's test condition 
requirements; however, the requirement to test using ``minimum sine 
wave continuous average power output, in watts, per channel . . .'' 
appears in Sec.  432.2(a). Consolidating these requirements into Sec.  
432.3 should make the requirements easier to find.\37\
---------------------------------------------------------------------------

    \37\ See infra proposed 16 CFR 432.3(g) & (h).
---------------------------------------------------------------------------

    Third, the Commission proposes modifying Sec.  432.3(e) to clarify 
that amplifiers must meet the standard for impedance, power band, and 
THD+N at all levels from 250mW to the disclosed level. Retaining this 
requirement from the current rule \38\ while standardizing test 
conditions should ensure the advertised power claim does not mask lower 
power levels at which the amplifier would not meet the FTC's standard.
---------------------------------------------------------------------------

    \38\ 16 CFR 432.2(b).
---------------------------------------------------------------------------

    Fourth, the Commission proposes updates to Sec.  432.4's 
prohibition against using an ``asterisk'' to make disclosures required 
under the Rule. The new proposal updates this language to similarly 
prohibit the use of footnotes and other notations typically used to 
obscure disclosures in advertising.\39\
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    \39\ The prohibition against using an asterisk is currently 
contained in Note 2 of Sec.  432.4. The Commission's proposed 
amendments eliminate Note 2, as well as Note 1 addressing the font 
style of certain disclosures, and move the substantive requirements 
of these two Notes into the main text of Sec.  432.2(d) and Sec.  
432.4(a) and (b).
---------------------------------------------------------------------------

    Finally, the Commission proposes formalizing its guidance regarding 
how channels in a multichannel amplifier must be driven when measuring 
power output under the FTC standard. The FTC standard requires all 
``associated channels'' to be fully driven when measuring power output 
of the amplifier.\40\ In 2010, the Commission found that ``associated 
channels'' for multichannel systems include, at a minimum, the front-
left and front-right channels used for stereo programming, and issued 
guidance stating that power output measurements that do not meet this 
floor violate the Rule.\41\ While ANPR commenters proposed a variety of 
alternative standards for driving multichannel amplifiers,\42\ and the 
NPRM specifically solicited evidence regarding normal usage of 
multichannel amplifiers,\43\ no commenters to either the ANPR or the 
NPRM provided evidence regarding real-life use of multichannel systems. 
Accordingly, considering the Commission's 2010 finding and in the 
absence of any evidence supporting an alternative, the Commission 
proposes to modify Sec.  432.2 to formalize its long-standing guidance 
on ``associated channels'' for multichannel amplifiers--the front-left 
and front-right channels used for stereo programming must be driven 
simultaneously.\44\
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    \40\ This requirement is currently in Sec.  432.2(a). The 
proposed amendments consolidate this requirement with the other 
standard test conditions in Sec.  432.3. See paragraph accompanying 
fn. 37 supra.
    \41\ The Commission based its guidance on the finding that 
``[t]he left and right front channels of home theater multichannel 
amplifiers are responsible for reproducing a substantial portion of 
the musical soundtracks of movies, as well as a substantial portion 
of the program content of music CDs and DVDs.'' 75 FR 3985, 3987 
(Jan. 26, 2010).
    \42\ Commenters to the ANPR proposed fully driving 2 channels, 
fully driving 3 channels and partially driving the remaining 
channels, and driving 5 channels at 70%, among other proposals. See, 
e.g., Leo Nolan (ANPR 67); Gene DellaSala (ANPR 6); Jason Jenkins 
(ANPR 70). In its response to the NPRM, CTA correctly observed that 
none of the commenters supported their respective proposals with any 
evidence of how channels are driven in typical use in the home. CTA 
(NPRM 8).
    \43\ 87 FR 45047, 45049--50 (July 27, 2022). As the Commission 
stated in the prior 2000 proceeding to amend the Rule, ``[t]he 
controlling consideration in determining the proper interpretation 
of `associated channels' is whether audio/video receivers and 
amplifiers would, when operated by consumers in the home at high 
playback volume, be required to deliver full rated power output in 
all channels simultaneously, or whether such maximum stress 
conditions would more likely be restricted at any given moment of 
time to certain sub-groupings of available channels.'' 65 FR 80798, 
80800 (Dec. 22, 2000).
    \44\ See infra proposed 16 CFR 432.3(h) (``Associated channels 
for multichannel amplifiers shall include, at a minimum, the left 
front and right front channels used for reproducing stereo 
programming.'').
---------------------------------------------------------------------------

IV. Request for Comments

    The Commission seeks comments on all aspects of the proposed 
requirements, including the likely effectiveness of the proposed Rule 
amendments in helping the Commission combat unfair or deceptive 
practices in the marketing of amplifiers utilized in home entertainment 
equipment. In particular, the Commission seeks comments on each of the 
modifications to its NPRM proposal. It also seeks comments on other 
approaches to addressing unfair and deceptive practices, such as the 
publication of additional consumer and business

[[Page 56785]]

education material. Commenters should provide any available evidence 
and data that supports their position, such as empirical data, consumer 
perception studies, and consumer complaints.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before October 20, 
2023. Include ``Amplifier Rule Review; Project No. P974222'' on your 
comment. Your comment, including your name and your state, will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the https://www.regulations.gov website.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we strongly encourage you 
to submit your comments online through the https://www.regulations.gov 
website. To ensure that the Commission considers your online comment, 
please follow the instructions on the web-based form.
    If you file your comment on paper, write ``Amplifier Rule Review; 
Project No. P974222'' on your comment and on the envelope, and mail 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex A), 
Washington, DC 20580. If possible, please submit your paper comment to 
the Commission by overnight service.
    Because your comment will be placed on the publicly accessible 
website, https://www.regulations.gov, you are solely responsible for 
making sure that your comment does not include any sensitive or 
confidential information. In particular, your comment should not 
include any sensitive personal information such as your or anyone's 
Social Security number, date of birth, driver's license number or other 
state identification number or foreign country equivalent, passport 
number, financial account number, or credit or debit card number. You 
are also solely responsible for making sure that your comment does not 
include any sensitive health information, such as medical records or 
other individually identifiable health information. In addition, your 
comment should not include any ``[t]rade secret or any commercial or 
financial information which . . . is privileged or confidential''--as 
provided in section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2)--including, in particular, competitively 
sensitive information such as costs, sales statistics, inventories, 
formulas, patterns, devices, manufacturing processes, or customer 
names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted publicly at www.regulations.gov--as legally required by FTC 
Rule 4.9(b)--we cannot redact or remove your comment, unless you submit 
a confidentiality request that meets the requirements for such 
treatment under FTC Rule 4.9(c), and the General Counsel grants that 
request.
    Visit the FTC website to read this publication and the news release 
describing it. The FTC Act and other laws that the Commission 
administers permit the collection of public comments to consider and 
use in this proceeding as appropriate. The Commission will consider all 
timely and responsive public comments that it receives on or before 
October 20, 2023. For information on the Commission's privacy policy, 
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

V. Rulemaking Procedures

    The Commission finds that using expedited procedures in this 
rulemaking will serve the public interest. Expedited procedures will 
support the Commission's goals of clarifying and updating existing 
regulations without undue expenditure of resources, while ensuring that 
the public has an opportunity to submit data, views, and arguments on 
whether the Commission should amend the Rule. Pursuant to 16 CFR 1.20, 
the Commission will use the following procedures: (1) publishing this 
notice of proposed rulemaking; (2) soliciting written comments on the 
Commission's proposals to amend the Rule; (3) holding an informal 
hearing, if requested by interested parties; and (4) announcing final 
Commission action in a document published in the Federal Register.
    The Commission, in its discretion, has not chosen to schedule an 
informal hearing and has not made any initial designations of disputed 
issues of material fact necessary to be resolved at an informal 
hearing. Interested persons who wish to make an oral submission at an 
informal hearing must file a comment in response to this publication 
and submit a statement identifying their interests in the proceeding 
and describing any proposals regarding the designation of disputed 
issues of material fact to be resolved at the informal hearing, on or 
before October 20, 2023. 16 CFR 1.11. Such requests, and any other 
motions or petitions in connection with this proceeding, must be filed 
with the Secretary of the Commission.

VI. Preliminary Regulatory Analysis

    Under Section 22 of the FTC Act, 15 U.S.C. 57b-3, the Commission 
must issue a preliminary regulatory analysis for a proceeding to amend 
a rule if the Commission: (1) estimates that the amendment will have an 
annual effect on the national economy of $100 million or more; (2) 
estimates that the amendment will cause a substantial change in the 
cost or price of certain categories of goods or services; or (3) 
otherwise determines that the amendment will have a significant effect 
upon covered entities or upon consumers. The Commission has 
preliminarily determined that the proposed amendments to the Rule will 
not have such effects on the national economy, on the cost of sound 
amplification equipment, or on covered businesses or consumers. In 
developing these proposals, the Commission has sought to minimize 
prescriptive requirements and provide flexibility to sellers in meeting 
the Rule's objectives. The Commission, however, requests comment on the 
economic effects of the proposed amendments.

VII. Regulatory Flexibility Act Requirements

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612, 
requires that the Commission conduct an analysis of the anticipated 
economic impact of the proposed amendment on small entities. The 
purpose of a regulatory flexibility analysis is to ensure that an 
agency considers potential impacts on small entities and examines 
regulatory alternatives that could achieve the regulatory purpose while 
minimizing burdens on small entities. The RFA requires that the 
Commission provide an Initial Regulatory Flexibility Analysis 
(``IRFA'') with a proposed rule and a Final Regulatory Flexibility 
Analysis (``FRFA'') with a final rule, if any, unless the Commission 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities.
    The Commission believes that the proposed amendment would not have 
a

[[Page 56786]]

significant economic impact upon small entities, although it may affect 
a substantial number of small businesses. Specifically, the proposed 
change in the disclosure requirements should not significantly increase 
the costs of small entities that manufacturer or import power 
amplification equipment for use in the home. Therefore, based on 
available information, the Commission certifies that amending the Rule 
as proposed will not have a significant economic impact on a 
substantial number of small businesses. Although the Commission 
certifies under the RFA that the proposed amendment would not, if 
promulgated, have a significant impact on a substantial number of small 
entities, the Commission has determined, nonetheless, that it is 
appropriate to publish an IRFA to inquire into the impact of the 
proposed amendment on small entities. Therefore, the Commission has 
prepared the following analysis:

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

    The Commission proposes amending the Rule to standardize testing 
parameters to assist consumers in understanding power output 
disclosures for amplifiers and to eliminate claims regarding power 
output that are likely to deceive consumers.

B. Statement of the Objectives of, and Legal Basis for, the Proposed 
Amendment

    The Commission promulgated the Rule pursuant to Section 18 of the 
FTC Act, 15 U.S.C. 57a. The proposed amendment would standardize 
testing parameters for amplifiers to prevent deceptive claims regarding 
power output and assist consumers in understanding power output 
disclosures.

C. Small Entities to Which the Proposed Amendments Will Apply

    The Rule covers manufacturers and importers of power amplification 
equipment for home use. Under the Small Business Size Standards issued 
by the Small Business Administration, audio and video equipment 
manufacturers qualify as small businesses if they have 750 or fewer 
employees.\45\ The Commission's staff estimates that a substantial 
number of the entities covered by the Rule likely qualify as small 
businesses.
---------------------------------------------------------------------------

    \45\ U.S. Small Business Administration, Table of Size Standards 
(Eff. Aug. 19, 2019).
---------------------------------------------------------------------------

D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The Commission is proposing amendments designed to simplify the 
Rule and provide clearer amplifier power output measurements for 
consumers to use to compare products. While the amendments modify the 
Rule's testing requirements, FTC staff does not anticipate that these 
changes will result in higher costs for covered entities because 
manufacturers already test power output for their amplifiers; in many 
cases under the conditions specified by the proposed amendments.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other Federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
proposed amendment.

F. Significant Alternatives to the Proposed Amendment

    The Commission has not proposed any specific small entity exemption 
or other significant alternatives because the proposed amendment would 
not impose any new requirements or compliance costs.

VIII. Paperwork Reduction Act

    The current Rule contains various provisions that constitute 
information collection requirements as defined by 5 CFR 1320.3(c), the 
definitional provision within the Office of Management and Budget 
(``OMB'') regulations implementing the Paperwork Reduction Act 
(``PRA''). OMB has approved the Rule's existing information collection 
requirements through April 30, 2024 (OMB Control No. 3084-0105). As 
described above, the Commission is proposing amendments to simplify 
power output measurements by standardizing test parameters. The 
amendments do not change the frequency of the testing or disclosure 
requirements specified under the Rule. Accordingly, FTC staff does not 
anticipate this change will result in additional burden hours or higher 
costs for manufacturers who already test power output for their 
amplifiers, in many cases testing amplifiers under the conditions 
specified by the proposed amendments. Therefore, the amendments do not 
require further OMB clearance.

IX. Communications by Outside Parties to the Commissioners or Their 
Advisors

    Pursuant to FTC Rule 1.18(c)(1), the Commission has determined that 
communications with respect to the merits of this proceeding from any 
outside party to any Commissioner or Commissioner's advisor shall be 
subject to the following treatment. Written communications and 
summaries or transcripts of oral communications shall be placed on the 
rulemaking record if the communication is received before the end of 
the comment period. They shall be placed on the public record if the 
communication is received later. Unless the outside party making an 
oral communication is a member of Congress, such communications are 
permitted only if advance notice is published in the Weekly Calendar 
and Notice of ``Sunshine'' Meetings.\46\
---------------------------------------------------------------------------

    \46\ See 15 U.S.C. 57a(i)(2)(A); 16 CFR 1.18(c).
---------------------------------------------------------------------------

List of Subjects in 16 CFR Part 432

    Amplifiers, Home entertainment products, Trade practices.

    For the reasons stated above, the Commission proposes to amend part 
432 of title 16 of the Code of Federal Regulations as follows:

PART 432--POWER OUTPUT CLAIMS FOR AMPLIFIERS UTILIZED IN HOME 
ENTERTAINMENT PRODUCTS

0
1. The authority citation for part 432 continues to read:

    Authority:  38 Stat. 717, as amended; (15 U.S.C. 41-58).

0
2. Revise Sec.  432.2 to read as follows:


Sec.  432.2  Required disclosures.

    Whenever any direct or indirect representation is made of the power 
output, power band or power frequency response, or distortion 
characteristics of sound power amplification equipment, the 
manufacturer's rated power output shall be disclosed subject to the 
following conditions:
    (a) The rated power output is measured in compliance with the 
standard test conditions in Sec.  432.3;
    (b) The rated power output is disclosed clearly, conspicuously, and 
more prominently than any other representations or disclosures 
permitted under this part;
    (c) The disclosure of the rated power output is clearly and 
conspicuously labeled ``FTC Power Output Rating''; and
    (d) The disclosures or representations required under this section 
shall not be made by a footnote, asterisk, or similar notation.
0
3. Revise Sec.  432.3(e) and add paragraphs (g) and (h) to read as 
follows:


Sec.  432.3  Standard test conditions.

* * * * *
    (e) Any power level from 250 mW to the rated power shall be 
obtainable at all

[[Page 56787]]

frequencies within the rated power band of 20 Hz to 20 kHz without 
exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an 
impedance of 8 ohms after input signals at said frequencies have been 
continuously applied at full rated power for not less than five (5) 
minutes at the amplifier's auxiliary input, or if not provided, at the 
phono input. Provided, however, that for amplifiers utilized as a 
component in a self-powered subwoofer in a self-powered subwoofer-
satellite speaker system that employs two or more amplifiers dedicated 
to different portions of the audio frequency spectrum, any power level 
from 250 mW to the rated power shall be obtainable at all frequencies 
within the subwoofer amplifier's intended operating bandwidth without 
exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an 
impedance of 8 ohms after input signals at said frequencies have been 
continuously applied at full rated power for not less than five (5) 
minutes at the amplifier's auxiliary input, or if not provided, at the 
phono input.
* * * * *
    (g) Rated power shall be minimum sine wave continuous average power 
output, in watts, per channel (if the equipment is designed to amplify 
two or more channels simultaneously), measured with all associated 
channels fully driven to rated per channel power.
    (h) Associated channels for multichannel amplifiers shall include, 
at a minimum, the left front and right front channels used for 
reproducing stereo programming. Provided, however, when measuring the 
maximum per channel output of self-powered combination speaker systems 
that employ two or more amplifiers dedicated to different portions of 
the audio frequency spectrum, such as those incorporated into 
combination subwoofer-satellite speaker systems, only those channels 
dedicated to the same audio frequency spectrum should be considered 
associated channels.
0
4. Revise Sec.  432.4 to read as follows:


Sec.  432.4  Optional disclosures.

    Other operating characteristics and technical specifications not 
required in Sec.  432.2 of this part may be disclosed. Provided that:
    (a) Any other power output is rated by the manufacturer, expressed 
in minimum watts per channel, and clearly and conspicuously labeled 
``This rating does not meet the FTC standard'' without the use of a 
footnote, asterisk, or similar notation to make the representation;
    (b) All disclosures or representations made under this section are 
less conspicuously, and prominently made than any rated power output 
disclosure required in Sec.  432.2. Any disclosure or representation 
bold faced or more than two-thirds the height of any rated power output 
disclosure required in Sec.  432.2 is not less prominent; and
    (c) The rating and testing methods or standards used in determining 
such representations are well known and generally recognized by the 
industry at the time the representations or disclosures are made, are 
neither intended nor likely to deceive or confuse consumers, and are 
not otherwise likely to frustrate the purpose of this part.

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-16792 Filed 8-18-23; 8:45 am]
BILLING CODE 6750-01-P
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