Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products, 49797-49802 [2024-12744]
Download as PDF
49797
Rules and Regulations
Federal Register
Vol. 89, No. 114
Wednesday, June 12, 2024
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
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:
ACTION:
Federal Trade Commission.
Final rule.
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
issues final amendments to its Trade
Regulation Rule Relating to Power
Output Claims for Amplifiers Utilized
in Home Entertainment Products
(‘‘Amplifier Rule’’ or ‘‘Rule’’). The
amendments require sellers making
power-related claims to calculate power
output using uniform testing methods to
allow consumers to easily compare
amplifier sound quality; prescribe
disclosure language that improves
differentiation between power output
claims that comply with the Rule’s
testing methods and those that do not;
and modernize as well as clarify Rule
language considering the foregoing
modifications. Additionally, the
amendments formalize prior
Commission guidance on applying the
Rule to multichannel amplifiers.
SUMMARY:
This Rule is effective on August
12, 2024.
DATES:
ddrumheller on DSK120RN23PROD with RULES1
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:
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
Statement of Basis and Purpose 1
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.2 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 that rendered different
results for the same products. 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 mid50’s the [audio] industry’’ had failed ‘‘to
agree upon a single industry standard
which is meaningful to the consumer.’’ 3
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.’’ 4
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).5 The Rule, however, does not
1 This document is published pursuant to section
18 of the FTC Act, 15 U.S.C. 57a, 16 CFR 1.14, and
5 U.S.C. 551 et seq. This authority permits the
Commission to promulgate, modify, and repeal
trade regulation rules that define with specificity
acts or practices that are unfair or deceptive in or
affecting commerce within the meaning of section
5(a)(1) of the FTC Act, 15 U.S.C. 45(a)(1). The
Commission undertook this rulemaking proceeding
as part of the Commission’s ongoing program of
evaluating trade regulation rules and industry
guides to determine their effectiveness, impact,
cost, and need.
2 39 FR 15387 (May 3, 1974).
3 Id. at 15388.
4 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.
5 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 °F (25 °C).’’).
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
specify values for three test conditions
that significantly affect power output
measurements: (1) load impedance; 6 (2)
rated power band or power frequency
response; 7 and (3) total harmonic
distortion (‘‘THD’’).8 Instead, the
original Rule required sellers to disclose
these values when making certain
power claims.9 In 2000, the Commission
eliminated this disclosure requirement
in ‘‘media advertising’’ but retained the
requirement in product brochures and
manufacturer specification sheets.10
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.11 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,
6 Prior to these amendments, the Rule set a
default load impedance of 8 ohms for measuring
power output but permitted measurement at a
different load impedance if the amplifier is
designed primarily for that impedance. 16 CFR
432.2(a) (2023). ‘‘[T]he lower the load impedance
utilized in testing . . . equipment, the higher the
output of the amplifier.’’ 39 FR at 15390. 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-impedancechanges-amplifier-power/ (last visited Mar. 11,
2024).
7 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 at 15390.
8 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 at 15391–92.
9 16 CFR 432.2 (1974).
10 65 FR 81232 (Dec. 22, 2000).
11 85 FR 82391 (Dec. 18, 2020).
E:\FR\FM\12JNR1.SGM
12JNR1
ddrumheller on DSK120RN23PROD with RULES1
49798
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / Rules and Regulations
and how, technological or economic
changes have affected the Rule.
In response, the Commission received
550 unique comments, including
comments from amplifier and speaker
manufacturers, amplifier sellers and
purchasers, and engineers or journalists
in the audio field.12 All but one
commenter supported retaining the
Rule.13 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.14
Consistent with these comments, FTC
staff found such manipulation
ubiquitous in the marketplace.
Specifically, FTC staff found dozens of
examples of the same equipment
advertised with significantly different
power output claims.15 Using
specification sheets on manufacturers’
websites, FTC staff confirmed these
widely divergent claims resulted from
different testing parameters.
Based on the comments and FTC
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.16 This problem is
exacerbated 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.17
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%. FTC 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; 18 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%.
The Commission received nine
unique comments in response to the
NPRM.19 While most of the commenters
either broadly supported the regulation
of power output claims or the
standardization of test conditions,20 two
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.21
Accordingly, they recommended the
Commission allow manufacturers to
disclose their chosen THD level rather
than set 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.22
In response to these comments, the
Commission issued a supplemental
notice of proposed rulemaking
(‘‘SNPRM’’) that modified its NPRM
proposal standardizing test conditions
in three ways.23 First, it proposed
12 These comments can be found at https://
www.regulations.gov/document/FTC-2020-00870001/comment. The Commission received a total of
1,133 comments. However, only 550 of these
comments responded to the ANPR or discussed any
aspect of the Rule. In this publication, commenters
are referred to by name, the acronym for the prior
publication to which the commenter responded
(either ANPR, NPRM, or SNPRM), 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).’’
13 The one commenter did not provide a
substantive comment.
14 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
435) 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).
Overall, 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.
15 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).
16 FTC 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 & Carl E.
Schneider, The Failure of Mandated Disclosure, 159
U. Pa. L. Rev. 647 (2011), 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 at 15388. 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).
17 87 FR 45047 (July 27, 2022).
18 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, 38613–14 (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
NPRM proposal required testing amplifiers in selfpowered 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.
19 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).
20 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.’’).
Only one commenter opposed the Commission’s
proposal in its entirety, contending that the
proposal is unnecessary because most component
manufacturers ‘‘generally already use [the
Commission’s proposed] parameters to test their
devices’’ and is irrelevant because consumers
shopping for integrated audio devices do not
evaluate specifications such as power output.
Consumer Technology Association (‘‘CTA’’) (NPRM
8). The Commission found evidence in the
marketplace at odds with CTA’s views and
reaffirmed the need to standardize power output
test conditions in its SNPRM. See 88 FR 56780,
56782 (Aug. 21, 2023).
21 Dennis Murphy (NPRM 9) (stating that all of
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.’’).
22 E.W. Blackwood (NPRM 7).
23 88 FR 56780, 56786 (Aug. 21, 2023).
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
E:\FR\FM\12JNR1.SGM
12JNR1
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / Rules and Regulations
updating the Rule’s reference to ‘‘total
harmonic distortion’’ with ‘‘total
harmonic distortion plus noise’’
(‘‘THD+N’’).24 Second, the Commission
proposed raising the THD+N limit to
1.0% to address commenters’ concern
that a significant number of amplifiers
on the market cannot qualify for any
power output claim under the NPRM
proposal’s 0.1% limit.25 Third, the
Commission proposed requiring sellers
to designate power output disclosures
under § 432.2 with the text ‘‘FTC Power
Output Rating.’’ Further, if sellers make
Optional Disclosures under § 432.4, they
would have to state ‘‘This rating does
not meet the FTC standard,’’ to help
consumers distinguish between the
two.26
Additionally, the Commission
proposed making four non-substantive
changes to update and clarify the
language of the Rule: (1) eliminating
unnecessary language in § 432.4 that
currently incorporates § 432.2’s
requirement to disclose the test
conditions; (2) consolidating all
standardized test conditions into a
single section, § 432.3, to make the Rule
easy to use; (3) modifying § 432.3(e) to
clarify amplifiers must meet the
standard for impedance, power band,
and THD+N at all levels from 250mW to
the disclosed level; and (4) updating
§ 432.4’s prohibition against using an
‘‘asterisk’’ to make required disclosures
to reflect modern usage.27
Finally, the Commission proposed
formalizing its long-standing guidance
that, for multichannel systems, the FTC
power output rating under § 432.2
requires the manufacturer to fully drive,
at a minimum, the front-left and frontright channels used for stereo
programming.28
ddrumheller on DSK120RN23PROD with RULES1
II. Comments Received in Response to
SNPRM
The Commission received four unique
comments in response to the SNPRM.
Two commenters fully supported the
SNPRM proposal, noting the importance
of a consistent standard that applies to
all manufacturers.29 Another
24 Id. at 56783 (discussing proposed 16 CFR
432.3(e)).
25 Id.
26 Id. at 56784 (discussing proposed 16 CFR 432.2
and 432.4).
27 Id. (discussing proposed 16 CFR 432.2 to
432.4).
28 Id. (discussing proposed 16 CFR 432.2).
29 Anonymous (SNPRM 6) (‘‘By standardizing test
conditions for load impedance, power band, and
THD+N, the FTC is taking a significant step towards
eliminating misleading power output claims and
assisting consumers in making informed
comparisons between different amplifier
products.’’); Jesse S. (SNPRM 2) (‘‘Consistency is
key for having shared standards that everyone
follows.’’).
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
commenter suggested the Commission
require manufacturers to disclose
supplemental information relating to
whether the manufacturer measured
THD+N for harmonics beyond the 20 Hz
to 20 kHz bandwidth.30
The final commenter, Consumer
Technology Association (‘‘CTA’’),
opposed the Commission’s SNPRM
proposal.31 CTA recommended the Rule
allow manufacturers to set the testing
parameters for power band and
impedance, stating generally that certain
component and integrated amplifier
devices are not designed to put out
power at the 20 Hz to 20 kHz power
band and 8 ohm impedance
specifications proposed in the SNPRM.
CTA also requested the Rule require
measuring harmonic distortion using
THD at 1 kHz. CTA explained using
THD+N over the entire 20 Hz to 20 kHz
bandwidth, as required by the
Commission’s SNPRM proposal, would
capture the hum of the commercial
power supply as well as sampling noise.
Finally, CTA recommended against
using the disclosure ‘‘This rating does
not meet the FTC standard,’’ to
distinguish Optional Disclosures under
§ 432.4 from FTC power output
disclosures under § 432.2. CTA noted
this phrase could have the unintended
consequence of denigrating acceptable
international standards used by
manufacturers in making power output
claims in their Optional Disclosures.
III. Analysis of SNPRM Comments and
Rule Amendments
Based on the record, the Commission
amends the Rule to standardize the
testing conditions as proposed in its
SNPRM, with one small exception.
Specifically, the Rule as amended
requires power output ratings under
§ 432.2 to use 8 ohms load impedance,
20 Hz to 20 kHz power band, and
THD+N of 1.0%. Two of the four
SNPRM comments wholly supported
the Commission’s proposal, and the
remaining comments did not raise any
issues that warrant modifying or
supplementing these standard
parameters. Specifically, the
Commission will not require disclosure
of supplemental information regarding
the bandwidth used for testing the
harmonics. As the commenter proposing
the recommendation acknowledged,
‘‘since most people can’t even hear the
fundamental at 20kHz, let alone the
30 E.W. Blackwood (SNPRM 4). The commenter
explained that measuring harmonics to an 80 kHz
bandwidth can reveal ‘‘artifacts that can indicate
high frequency problems’’ but also acknowledged
that ‘‘most people can’t even hear the fundamental
at 20kHz, let alone the second harmonic.’’ Id.
31 CTA (SNPRM 3).
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
49799
second harmonic, there is no need to
measure anything beyond 20kHz.’’ 32
The Commission agrees and declines to
adopt this recommendation.
The Commission also declines to
adopt the recommendation to allow
manufacturers to set the power band
and impedance parameters. While CTA
stated in general terms that certain
manufacturers produce amplifier
devices not designed to generate power
output in accordance with the FTC
standard test conditions, it neither
identified any affected manufacturers
nor included data indicating the
proportion of affected models.33 In
addition, the amended Rule does not
increase costs for affected manufacturers
by requiring them to modify their
products to meet the FTC standard, as
suggested by CTA.34 The amended Rule
only requires compliance with the FTC
standard when sellers make power
related claims. If a manufacturer does
not want to comply with the FTC
standard, it need not make such a claim.
Moreover, to the extent the
manufacturer wants to rate power
output using ‘‘in device’’ parameters
different from the FTC standard, it may
do so using Optional Disclosures under
§ 432.4.
The Commission also declines to
adopt CTA’s recommendation to base
the maximum harmonic distortion
parameter on THD at 1 kHz. While the
Commission understands that amending
the Rule to require power output ratings
at 1.0% THD+N over the full 20 Hz to
20 kHz power band will capture some
additional types of distortion (e.g.,
distortion from the power supply), this
is precisely what the Commission
intended when it first promulgated the
Rule in order to cover the range of
distortion generated by the amplifier
during typical home use.35 The
32 E.W.
Blackwood (SNPRM 4).
SNPRM requested that commenters
‘‘provide any available evidence and data that
supports their position, such as empirical data.’’ 88
FR at 56785.
34 CTA (SNPRM 3) (‘‘The FTC’s proposal to
increase the frequency range will impose additional
costs that all consumers must pay and does not
reflect the diversity of audio products available in
today’s marketplace.’’).
35 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). An AC-powered
amplifier generates this power line distortion under
‘‘conditions of normal use by the consumer, i.e.,
conditions which are encountered in the home’’
33 The
E:\FR\FM\12JNR1.SGM
Continued
12JNR1
ddrumheller on DSK120RN23PROD with RULES1
49800
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / Rules and Regulations
amendment accords with the
Commission’s goals for the Rule.
The Commission also amends the
Rule in accordance with the SNPRM to
require the use of specific language to
distinguish Optional Disclosures under
§ 432.4. However, it clarifies that when
using such disclosures, sellers should
use the phrase ‘‘This rating was not
tested under the FTC standard’’ rather
than the proposed ‘‘This rating does not
meet the FTC standard.’’ The use of this
more neutral phrase should resolve
CTA’s concern about denigrating the use
of accepted international standards in
making Optional Disclosures while still
serving the purpose of alerting
consumers that the seller used a
different test procedure.
With respect to the other amendments
proposed in the SNPRM, namely the
four non-substantive changes and the
formal adoption of the 2010
Commission guidance for multichannel
systems, none of the commenters raised
any specific concerns or
recommendations. Accordingly, the
Commission amends the Rule to
incorporate each of these five remaining
proposals as follows.
First, the Commission eliminates
language in § 432.4 that the Rule will no
longer require. Second, the Commission
consolidates all standard test conditions
into a single section. 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 should make the
requirements easier to find.36
Third, the Commission modifies
§ 432.3(e) to clarify 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 37
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 updates
§ 432.4’s prohibition against using an
‘‘asterisk’’ to make disclosures required
under the Rule. The new proposal
modernizes this language to similarly
prohibit the use of footnotes and other
that the Commission intended the Rule to reflect.
Id. at 15392.
36 See amended 16 CFR 432.3(g) and (h).
37 16 CFR 432.2(b).
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
notations typically used to obscure
disclosures in advertising.38
Finally, the Commission formalizes
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.39 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.40 While ANPR commenters
proposed a variety of alternative
standards for driving multichannel
amplifiers,41 and the NPRM specifically
solicited evidence regarding normal
usage of multichannel amplifiers,42 no
commenters on either the ANPR or the
NPRM provided evidence regarding
real-life use of multichannel systems.
Likewise, the SNPRM solicited
comments on formalizing the
Commission’s 2010 guidance, but the
Commission received none.
Accordingly, considering the
Commission’s 2010 finding and in the
absence of any evidence supporting an
alternative, the Commission modifies
38 The
prohibition against using an asterisk is
contained in Note 2 of the prior version of § 432.4.
The Commission’s 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).
39 This requirement is in the prior version of
§ 432.2(a). The amendments consolidate this
requirement with the other standard test conditions
in § 432.3. See paragraph accompanying fn. 35
supra.
40 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 at 3987.
41 Commenters on 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 comment
on 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).
42 87 FR at 45049 through 45050. 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).
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
§ 432.2 to formalize its long-standing
guidance on ‘‘associated channels’’ for
multichannel amplifiers—that is, at
least the front-left and front-right
channels used for stereo programming
must be driven simultaneously.43
IV. Rulemaking Procedures
The Commission has found that using
expedited procedures in this rulemaking
serves the public interest. Expedited
procedures 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.
In the NPRM, the Commission
announced that it would use the
following procedures pursuant to 16
CFR 1.20: (1) publishing a 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
this document published in the Federal
Register. Because none of the
commenters requested an informal
hearing, the Commission, in its
discretion, did not schedule an informal
hearing.
V. 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. In the NPRM and SNPRM,
the Commission 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 requested but received no
comments on the economic effects of
43 See infra amended 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\12JNR1.SGM
12JNR1
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / Rules and Regulations
ddrumheller on DSK120RN23PROD with RULES1
the amendments to the Rule, other than
CTA’s comment addressed above.44 A
final regulatory analysis is not required
because the Commission finds that the
amendments will not have such effects
on the national economy, on the cost of
sound amplification equipment, or on
covered businesses or consumers.
VI. 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
amendments 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
amendments would not have a
significant economic impact upon small
entities, although they may affect a
substantial number of small businesses.
Specifically, the change in the
disclosure requirements should not
significantly increase the costs of small
entities that manufacture or import
power amplification equipment for use
in the home. In the SNPRM, the
Commission certified that the proposed
amendments would not, if promulgated,
have a significant impact on a
substantial number of small entities.
The Commission noted that, while a
substantial number of the entities
covered by the Rule likely qualify as
small businesses, the Commission did
not anticipate that the amendments
would result in higher costs for covered
entities because manufacturers already
test power output for their amplifiers.
The Commission nonetheless
determined that it was appropriate to
publish an IRFA to inquire into the
impact of the proposed amendments on
small entities. The Commission received
no comments regarding the SNPRM’s
certification or IRFA. Therefore, based
on available information, the
Commission certifies that amending the
Rule will not have a significant
economic impact on a substantial
number of small businesses.
44 See
note 34 and accompanying text supra.
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
VII. 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 that 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.
VIII. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs
designated these rule amendments as
not a ‘‘major rule,’’ as defined by 5
U.S.C. 804(2).
List of Subjects in 16 CFR Part 432
Amplifiers, Home entertainment
products, Trade practices.
For the reasons stated above, the
Commission amends 16 CFR part 432 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
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
49801
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. Amend § 432.3 by revising
paragraph (e) and adding 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
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
E:\FR\FM\12JNR1.SGM
12JNR1
49802
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 / Rules and Regulations
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:
§ 432.4
Optional disclosures.
Other operating characteristics and
technical specifications not required in
§ 432.2 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
was not tested under 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 § 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. 2024–12744 Filed 6–11–24; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 214, 1000, and 1003
[Docket No. FR–6322–F–02]
RIN 2502–AJ64
Certification of Tribal Housing
Counselors
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, U.S. Department of
Housing and Urban Development
(HUD); Office of the Assistant Secretary
for Public and Indian Housing, HUD.
ACTION: Final rule.
ddrumheller on DSK120RN23PROD with RULES1
AGENCY:
HUD’s Housing Counseling
Program provides counseling to
individuals seeking information about
financing, maintaining, renting, or
owning a home. Established by the
SUMMARY:
VerDate Sep<11>2014
15:55 Jun 11, 2024
Jkt 262001
Dodd-Frank Wall Street Reform and
Consumer Protection Act, entities and
individual counselors that participate in
the Housing Counseling Program are
required to be certified by HUD as
competent to provide counseling
services. In 2016, HUD implemented
such housing counselor certification
requirements for most HUD programs
but agreed to conduct consultation with
Tribes before implementing them for
Tribes. On January 26, 2023, HUD
published a proposed rule that provides
an alternative regulatory standard for
the counselor certification that accounts
for the unique status of Tribal land and
housing programs in Indian country and
recognizes the importance of Tribal
expertise. After consulting with Tribes
and considering public comments
received in response to the proposed
rule, this final rule adopts the proposed
rule with minor changes.
DATES: Effective July 12, 2024.
FOR FURTHER INFORMATION CONTACT:
David Valdez, Office of Housing
Counseling, Office of Housing,
Department of Housing and Urban
Development, 1331 Lamar St. Suite 550,
Houston, TX 77002; telephone number
713–718–3178 (this is not a toll-free
number). HUD welcomes and is
prepared to receive calls from
individuals who are deaf or hard of
hearing, as well as individuals with
speech or communication disabilities.
To learn more about how to make an
accessible telephone call, please visit
https://www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Established by the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Pub. L. 111–203, 124 Stat. 1376,
approved July 21, 2010) (Dodd-Frank),
HUD’s Office of Housing Counseling
(OHC) provides support to a nationwide network of HUD-certified
counseling agencies and State Housing
Finance Agencies that provide
counseling to individuals seeking
information about financing,
maintaining, renting, or owning a home.
In addition to establishing the OHC,
Dodd-Frank directed HUD to issue
regulations necessary to carry out the
testing and certification of housing
counselors in HUD programs. On
December 14, 2016, HUD published a
final rule implementing these
requirements for most HUD programs
(81 FR 90632). In recognition of HUD’s
government-to-government relationship
with Tribal governments, and HUD’s
Tribal Consultation policy, HUD
conducted Tribal consultation before
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
implementing requirements for Tribes,
Tribally designated housing entities
(TDHEs), and other Tribal entities. On
December 18, 2020, HUD published a
Dear Tribal Leader Letter to inform
Tribal leaders about the Housing
Counselor Certification Final Rule and
that the Department would be soliciting
their feedback through Tribal
consultation.1
Subsequently, HUD hosted two
virtual Tribal consultation sessions and
six listening sessions to gather input on
the potential implications of the Tribal
Housing Certification requirements.
HUD then published a proposed rule
implementing testing and certification
requirements for housing counselors for
employees of Tribes, TDHEs, and other
Tribal entities conducting housing
counseling required or provided in
connection with the Indian Housing
Block Grant (IHBG) and Indian
Community Development Block Grant
(ICDBG) programs on January 26, 2023
(88 FR 4923) (the proposed rule).
The proposed rule proposed codifying
a housing counselor certification
requirement by adding a new subpart F
to 24 CFR part 214 that would apply
only for the IHBG and ICDBG programs.
To provide counseling for those
programs, an individual could become a
‘‘HUD-certified housing counselor’’ by
working for a participating agency and
meeting all requirements of part 214,
including passing a housing counselor
certification examination under
§ 214.103(n) or by working for an Indian
Tribe, TDHE, or other Tribal entity, and
passing a housing counselor
certification exam under the new
§ 214.600(c). This new Tribal
certification exam would consider the
unique status of Tribal trust land,
mortgaging Tribal trust land, and
account for the distinct framework of
nondiscrimination requirements as they
apply to Tribes and Tribal recipients of
IHBG and ICDBG funds at 24 CFR
1000.12 and 1003.601.
II. This Final Rule
After considering comments received
from the public through the Federal
Register as well as through consultation
with Tribes during three consultation
sessions and six listening sessions, HUD
promulgates this final rule. The final
rule adopts the proposed rule with three
minor changes. First, instead of revising
the definition of HUD certified housing
counselor in 24 CFR 214.3, HUD is
adding a definition for HUD-certified
Tribal housing counselor. This change is
1 Available at: https://www.hud.gov/sites/dfiles/
PIH/documents/DTL12.17.20_Housing_
Counseling.pdf.
E:\FR\FM\12JNR1.SGM
12JNR1
Agencies
[Federal Register Volume 89, Number 114 (Wednesday, June 12, 2024)]
[Rules and Regulations]
[Pages 49797-49802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12744]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 114 / Wednesday, June 12, 2024 /
Rules and Regulations
[[Page 49797]]
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
issues final amendments to its Trade Regulation Rule Relating to Power
Output Claims for Amplifiers Utilized in Home Entertainment Products
(``Amplifier Rule'' or ``Rule''). The amendments require sellers making
power-related claims to calculate power output using uniform testing
methods to allow consumers to easily compare amplifier sound quality;
prescribe disclosure language that improves differentiation between
power output claims that comply with the Rule's testing methods and
those that do not; and modernize as well as clarify Rule language
considering the foregoing modifications. Additionally, the amendments
formalize prior Commission guidance on applying the Rule to
multichannel amplifiers.
DATES: This Rule is effective on August 12, 2024.
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:
Statement of Basis and Purpose 1
---------------------------------------------------------------------------
\1\ This document is published pursuant to section 18 of the FTC
Act, 15 U.S.C. 57a, 16 CFR 1.14, and 5 U.S.C. 551 et seq. This
authority permits the Commission to promulgate, modify, and repeal
trade regulation rules that define with specificity acts or
practices that are unfair or deceptive in or affecting commerce
within the meaning of section 5(a)(1) of the FTC Act, 15 U.S.C.
45(a)(1). The Commission undertook this rulemaking proceeding as
part of the Commission's ongoing program of evaluating trade
regulation rules and industry guides to determine their
effectiveness, impact, cost, and need.
---------------------------------------------------------------------------
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.\2\
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 that rendered
different results for the same products. 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.'' \3\ 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.'' \4\
---------------------------------------------------------------------------
\2\ 39 FR 15387 (May 3, 1974).
\3\ Id. at 15388.
\4\ 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).\5\ The Rule,
however, does not specify values for three test conditions that
significantly affect power output measurements: (1) load impedance; \6\
(2) rated power band or power frequency response; \7\ and (3) total
harmonic distortion (``THD'').\8\ Instead, the original Rule required
sellers to disclose these values when making certain power claims.\9\
In 2000, the Commission eliminated this disclosure requirement in
``media advertising'' but retained the requirement in product brochures
and manufacturer specification sheets.\10\
---------------------------------------------------------------------------
\5\ 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).'').
\6\ Prior to these amendments, the Rule set a default load
impedance of 8 ohms for measuring power output but permitted
measurement at a different load impedance if the amplifier is
designed primarily for that impedance. 16 CFR 432.2(a) (2023).
``[T]he lower the load impedance utilized in testing . . .
equipment, the higher the output of the amplifier.'' 39 FR at 15390.
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. 11, 2024).
\7\ 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 at 15390.
\8\ 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 at 15391-92.
\9\ 16 CFR 432.2 (1974).
\10\ 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.\11\ 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,
[[Page 49798]]
and how, technological or economic changes have affected the Rule.
---------------------------------------------------------------------------
\11\ 85 FR 82391 (Dec. 18, 2020).
---------------------------------------------------------------------------
In response, the Commission received 550 unique comments, including
comments from amplifier and speaker manufacturers, amplifier sellers
and purchasers, and engineers or journalists in the audio field.\12\
All but one commenter supported retaining the Rule.\13\ Based on this
near universal support, the Commission concluded there was a continuing
need for the Rule.
---------------------------------------------------------------------------
\12\ These comments can be found at https://www.regulations.gov/document/FTC-2020-0087-0001/comment. The Commission received a total
of 1,133 comments. However, only 550 of these comments responded to
the ANPR or discussed any aspect of the Rule. In this publication,
commenters are referred to by name, the acronym for the prior
publication to which the commenter responded (either ANPR, NPRM, or
SNPRM), 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).''
\13\ 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.\14\
---------------------------------------------------------------------------
\14\ 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 435) 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). Overall, 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, FTC staff found such manipulation
ubiquitous in the marketplace. Specifically, FTC staff found dozens of
examples of the same equipment advertised with significantly different
power output claims.\15\ Using specification sheets on manufacturers'
websites, FTC staff confirmed these widely divergent claims resulted
from different testing parameters.
---------------------------------------------------------------------------
\15\ 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 FTC 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.\16\
This problem is exacerbated by the fact that consumers now shop online
more frequently, providing fewer opportunities to listen to equipment
before purchasing.
---------------------------------------------------------------------------
\16\ FTC 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 & Carl E. Schneider, The Failure of
Mandated Disclosure, 159 U. Pa. L. Rev. 647 (2011), 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 at 15388. 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.\17\ 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%. FTC 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; \18\
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%.
---------------------------------------------------------------------------
\17\ 87 FR 45047 (July 27, 2022).
\18\ 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, 38613-14 (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 NPRM proposal required 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.
---------------------------------------------------------------------------
The Commission received nine unique comments in response to the
NPRM.\19\ While most of the commenters either broadly supported the
regulation of power output claims or the standardization of test
conditions,\20\ two 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.\21\ Accordingly, they recommended the Commission allow
manufacturers to disclose their chosen THD level rather than set 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.\22\
---------------------------------------------------------------------------
\19\ 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).
\20\ 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.''). Only one commenter opposed
the Commission's proposal in its entirety, contending that the
proposal is unnecessary because most component manufacturers
``generally already use [the Commission's proposed] parameters to
test their devices'' and is irrelevant because consumers shopping
for integrated audio devices do not evaluate specifications such as
power output. Consumer Technology Association (``CTA'') (NPRM 8).
The Commission found evidence in the marketplace at odds with CTA's
views and reaffirmed the need to standardize power output test
conditions in its SNPRM. See 88 FR 56780, 56782 (Aug. 21, 2023).
\21\ Dennis Murphy (NPRM 9) (stating that all of 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.'').
\22\ E.W. Blackwood (NPRM 7).
---------------------------------------------------------------------------
In response to these comments, the Commission issued a supplemental
notice of proposed rulemaking (``SNPRM'') that modified its NPRM
proposal standardizing test conditions in three ways.\23\ First, it
proposed
[[Page 49799]]
updating the Rule's reference to ``total harmonic distortion'' with
``total harmonic distortion plus noise'' (``THD+N'').\24\ Second, the
Commission proposed raising the THD+N limit to 1.0% to address
commenters' concern that a significant number of amplifiers on the
market cannot qualify for any power output claim under the NPRM
proposal's 0.1% limit.\25\ Third, the Commission proposed requiring
sellers to designate power output disclosures under Sec. 432.2 with
the text ``FTC Power Output Rating.'' Further, if sellers make Optional
Disclosures under Sec. 432.4, they would have to state ``This rating
does not meet the FTC standard,'' to help consumers distinguish between
the two.\26\
---------------------------------------------------------------------------
\23\ 88 FR 56780, 56786 (Aug. 21, 2023).
\24\ Id. at 56783 (discussing proposed 16 CFR 432.3(e)).
\25\ Id.
\26\ Id. at 56784 (discussing proposed 16 CFR 432.2 and 432.4).
---------------------------------------------------------------------------
Additionally, the Commission proposed making four non-substantive
changes to update and clarify the language of the Rule: (1) eliminating
unnecessary language in Sec. 432.4 that currently incorporates Sec.
432.2's requirement to disclose the test conditions; (2) consolidating
all standardized test conditions into a single section, Sec. 432.3, to
make the Rule easy to use; (3) modifying Sec. 432.3(e) to clarify
amplifiers must meet the standard for impedance, power band, and THD+N
at all levels from 250mW to the disclosed level; and (4) updating Sec.
432.4's prohibition against using an ``asterisk'' to make required
disclosures to reflect modern usage.\27\
---------------------------------------------------------------------------
\27\ Id. (discussing proposed 16 CFR 432.2 to 432.4).
---------------------------------------------------------------------------
Finally, the Commission proposed formalizing its long-standing
guidance that, for multichannel systems, the FTC power output rating
under Sec. 432.2 requires the manufacturer to fully drive, at a
minimum, the front-left and front-right channels used for stereo
programming.\28\
---------------------------------------------------------------------------
\28\ Id. (discussing proposed 16 CFR 432.2).
---------------------------------------------------------------------------
II. Comments Received in Response to SNPRM
The Commission received four unique comments in response to the
SNPRM. Two commenters fully supported the SNPRM proposal, noting the
importance of a consistent standard that applies to all
manufacturers.\29\ Another commenter suggested the Commission require
manufacturers to disclose supplemental information relating to whether
the manufacturer measured THD+N for harmonics beyond the 20 Hz to 20
kHz bandwidth.\30\
---------------------------------------------------------------------------
\29\ Anonymous (SNPRM 6) (``By standardizing test conditions for
load impedance, power band, and THD+N, the FTC is taking a
significant step towards eliminating misleading power output claims
and assisting consumers in making informed comparisons between
different amplifier products.''); Jesse S. (SNPRM 2) (``Consistency
is key for having shared standards that everyone follows.'').
\30\ E.W. Blackwood (SNPRM 4). The commenter explained that
measuring harmonics to an 80 kHz bandwidth can reveal ``artifacts
that can indicate high frequency problems'' but also acknowledged
that ``most people can't even hear the fundamental at 20kHz, let
alone the second harmonic.'' Id.
---------------------------------------------------------------------------
The final commenter, Consumer Technology Association (``CTA''),
opposed the Commission's SNPRM proposal.\31\ CTA recommended the Rule
allow manufacturers to set the testing parameters for power band and
impedance, stating generally that certain component and integrated
amplifier devices are not designed to put out power at the 20 Hz to 20
kHz power band and 8 ohm impedance specifications proposed in the
SNPRM. CTA also requested the Rule require measuring harmonic
distortion using THD at 1 kHz. CTA explained using THD+N over the
entire 20 Hz to 20 kHz bandwidth, as required by the Commission's SNPRM
proposal, would capture the hum of the commercial power supply as well
as sampling noise. Finally, CTA recommended against using the
disclosure ``This rating does not meet the FTC standard,'' to
distinguish Optional Disclosures under Sec. 432.4 from FTC power
output disclosures under Sec. 432.2. CTA noted this phrase could have
the unintended consequence of denigrating acceptable international
standards used by manufacturers in making power output claims in their
Optional Disclosures.
---------------------------------------------------------------------------
\31\ CTA (SNPRM 3).
---------------------------------------------------------------------------
III. Analysis of SNPRM Comments and Rule Amendments
Based on the record, the Commission amends the Rule to standardize
the testing conditions as proposed in its SNPRM, with one small
exception. Specifically, the Rule as amended requires power output
ratings under Sec. 432.2 to use 8 ohms load impedance, 20 Hz to 20 kHz
power band, and THD+N of 1.0%. Two of the four SNPRM comments wholly
supported the Commission's proposal, and the remaining comments did not
raise any issues that warrant modifying or supplementing these standard
parameters. Specifically, the Commission will not require disclosure of
supplemental information regarding the bandwidth used for testing the
harmonics. As the commenter proposing the recommendation acknowledged,
``since most people can't even hear the fundamental at 20kHz, let alone
the second harmonic, there is no need to measure anything beyond
20kHz.'' \32\ The Commission agrees and declines to adopt this
recommendation.
---------------------------------------------------------------------------
\32\ E.W. Blackwood (SNPRM 4).
---------------------------------------------------------------------------
The Commission also declines to adopt the recommendation to allow
manufacturers to set the power band and impedance parameters. While CTA
stated in general terms that certain manufacturers produce amplifier
devices not designed to generate power output in accordance with the
FTC standard test conditions, it neither identified any affected
manufacturers nor included data indicating the proportion of affected
models.\33\ In addition, the amended Rule does not increase costs for
affected manufacturers by requiring them to modify their products to
meet the FTC standard, as suggested by CTA.\34\ The amended Rule only
requires compliance with the FTC standard when sellers make power
related claims. If a manufacturer does not want to comply with the FTC
standard, it need not make such a claim. Moreover, to the extent the
manufacturer wants to rate power output using ``in device'' parameters
different from the FTC standard, it may do so using Optional
Disclosures under Sec. 432.4.
---------------------------------------------------------------------------
\33\ The SNPRM requested that commenters ``provide any available
evidence and data that supports their position, such as empirical
data.'' 88 FR at 56785.
\34\ CTA (SNPRM 3) (``The FTC's proposal to increase the
frequency range will impose additional costs that all consumers must
pay and does not reflect the diversity of audio products available
in today's marketplace.'').
---------------------------------------------------------------------------
The Commission also declines to adopt CTA's recommendation to base
the maximum harmonic distortion parameter on THD at 1 kHz. While the
Commission understands that amending the Rule to require power output
ratings at 1.0% THD+N over the full 20 Hz to 20 kHz power band will
capture some additional types of distortion (e.g., distortion from the
power supply), this is precisely what the Commission intended when it
first promulgated the Rule in order to cover the range of distortion
generated by the amplifier during typical home use.\35\ The
[[Page 49800]]
amendment accords with the Commission's goals for the Rule.
---------------------------------------------------------------------------
\35\ 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). An AC-powered amplifier
generates this power line distortion under ``conditions of normal
use by the consumer, i.e., conditions which are encountered in the
home'' that the Commission intended the Rule to reflect. Id. at
15392.
---------------------------------------------------------------------------
The Commission also amends the Rule in accordance with the SNPRM to
require the use of specific language to distinguish Optional
Disclosures under Sec. 432.4. However, it clarifies that when using
such disclosures, sellers should use the phrase ``This rating was not
tested under the FTC standard'' rather than the proposed ``This rating
does not meet the FTC standard.'' The use of this more neutral phrase
should resolve CTA's concern about denigrating the use of accepted
international standards in making Optional Disclosures while still
serving the purpose of alerting consumers that the seller used a
different test procedure.
With respect to the other amendments proposed in the SNPRM, namely
the four non-substantive changes and the formal adoption of the 2010
Commission guidance for multichannel systems, none of the commenters
raised any specific concerns or recommendations. Accordingly, the
Commission amends the Rule to incorporate each of these five remaining
proposals as follows.
First, the Commission eliminates language in Sec. 432.4 that the
Rule will no longer require. Second, the Commission consolidates all
standard test conditions into a single section. 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 should make the requirements easier to find.\36\
---------------------------------------------------------------------------
\36\ See amended 16 CFR 432.3(g) and (h).
---------------------------------------------------------------------------
Third, the Commission modifies Sec. 432.3(e) to clarify 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 \37\ 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.
---------------------------------------------------------------------------
\37\ 16 CFR 432.2(b).
---------------------------------------------------------------------------
Fourth, the Commission updates Sec. 432.4's prohibition against
using an ``asterisk'' to make disclosures required under the Rule. The
new proposal modernizes this language to similarly prohibit the use of
footnotes and other notations typically used to obscure disclosures in
advertising.\38\
---------------------------------------------------------------------------
\38\ The prohibition against using an asterisk is contained in
Note 2 of the prior version of Sec. 432.4. The Commission's
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. Sec. 432.2(d) and
432.4(a) and (b).
---------------------------------------------------------------------------
Finally, the Commission formalizes 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.\39\ 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.\40\ While ANPR commenters proposed a variety of
alternative standards for driving multichannel amplifiers,\41\ and the
NPRM specifically solicited evidence regarding normal usage of
multichannel amplifiers,\42\ no commenters on either the ANPR or the
NPRM provided evidence regarding real-life use of multichannel systems.
Likewise, the SNPRM solicited comments on formalizing the Commission's
2010 guidance, but the Commission received none. Accordingly,
considering the Commission's 2010 finding and in the absence of any
evidence supporting an alternative, the Commission modifies Sec. 432.2
to formalize its long-standing guidance on ``associated channels'' for
multichannel amplifiers--that is, at least the front-left and front-
right channels used for stereo programming must be driven
simultaneously.\43\
---------------------------------------------------------------------------
\39\ This requirement is in the prior version of Sec. 432.2(a).
The amendments consolidate this requirement with the other standard
test conditions in Sec. 432.3. See paragraph accompanying fn. 35
supra.
\40\ 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 at 3987.
\41\ Commenters on 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 comment on 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).
\42\ 87 FR at 45049 through 45050. 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).
\43\ See infra amended 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. Rulemaking Procedures
The Commission has found that using expedited procedures in this
rulemaking serves the public interest. Expedited procedures 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. In the NPRM, the Commission announced
that it would use the following procedures pursuant to 16 CFR 1.20: (1)
publishing a 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 this document published in the
Federal Register. Because none of the commenters requested an informal
hearing, the Commission, in its discretion, did not schedule an
informal hearing.
V. 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. In the NPRM and SNPRM, the
Commission 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 requested but received no
comments on the economic effects of
[[Page 49801]]
the amendments to the Rule, other than CTA's comment addressed
above.\44\ A final regulatory analysis is not required because the
Commission finds that the amendments will not have such effects on the
national economy, on the cost of sound amplification equipment, or on
covered businesses or consumers.
---------------------------------------------------------------------------
\44\ See note 34 and accompanying text supra.
---------------------------------------------------------------------------
VI. 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 amendments 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 amendments would not have a
significant economic impact upon small entities, although they may
affect a substantial number of small businesses. Specifically, the
change in the disclosure requirements should not significantly increase
the costs of small entities that manufacture or import power
amplification equipment for use in the home. In the SNPRM, the
Commission certified that the proposed amendments would not, if
promulgated, have a significant impact on a substantial number of small
entities. The Commission noted that, while a substantial number of the
entities covered by the Rule likely qualify as small businesses, the
Commission did not anticipate that the amendments would result in
higher costs for covered entities because manufacturers already test
power output for their amplifiers. The Commission nonetheless
determined that it was appropriate to publish an IRFA to inquire into
the impact of the proposed amendments on small entities. The Commission
received no comments regarding the SNPRM's certification or IRFA.
Therefore, based on available information, the Commission certifies
that amending the Rule will not have a significant economic impact on a
substantial number of small businesses.
VII. 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 that 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.
VIII. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated these rule
amendments as not a ``major rule,'' as defined by 5 U.S.C. 804(2).
List of Subjects in 16 CFR Part 432
Amplifiers, Home entertainment products, Trade practices.
For the reasons stated above, the Commission amends 16 CFR part 432
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. Amend Sec. 432.3 by revising paragraph (e) and adding 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 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
[[Page 49802]]
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 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 was not tested under 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. 2024-12744 Filed 6-11-24; 8:45 am]
BILLING CODE 6750-01-P