Proposed Rule2021-11498
Energy Labeling Rule
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 2, 2021
Issuing agencies
Federal Trade Commission
Abstract
The Federal Trade Commission ("FTC" or "Commission") proposes updates to comparability ranges and sample labels for central air conditioners in the Energy Labeling Rule ("Rule").
Full Text
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<title>Federal Register, Volume 86 Issue 104 (Wednesday, June 2, 2021)</title>
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[Federal Register Volume 86, Number 104 (Wednesday, June 2, 2021)]
[Proposed Rules]
[Pages 29533-29541]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-11498]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
[3084-AB15]
Energy Labeling Rule
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
proposes updates to comparability ranges and sample labels for central
air conditioners in the Energy Labeling Rule (``Rule'').
DATES: Comments must be received on or before August 2, 2021.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Comment Submissions part of the
SUPPLEMENTARY INFORMATION section below. Write ``CAC Range Updates (16
CFR part 305) (Matter No. R611004)'' on your comment, and file it
online at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, by following the instructions on
the web-based form. If you prefer to file your comment on paper, mail
it to: Federal Trade Commission, Office of the Secretary, Suite CC-5610
(Annex J), 600 Pennsylvania Avenue NW, Washington, DC 20580; or deliver
your comment to: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome (202-326-2889),
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Energy Labeling Rule
The Commission issued the Energy Labeling Rule (``Rule'') in
1979,\1\ pursuant to the Energy Policy and Conservation Act of 1975
(``EPCA'').\2\ The Rule requires energy labeling for major home
appliances and other consumer products to help consumers compare the
energy usage and costs of competing models. It also contains labeling
requirements for refrigerators, refrigerator-freezers, freezers,
dishwashers, water heaters, clothes washers, room and portable air
conditioners, furnaces, central air conditioners, heat pumps, plumbing
products, lighting products, ceiling fans, and televisions.
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\1\ 44 FR 66466 (Nov. 19, 1979).
\2\ 42 U.S.C. 6294. EPCA also requires the Department of Energy
(``DOE'') to develop test procedures that measure how much energy
appliances use, and to determine the representative average cost a
consumer pays for different types of energy.
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The Rule requires manufacturers to attach yellow EnergyGuide labels
to many of the covered products and prohibits retailers from removing
these labels or rendering them illegible. In addition, it directs
sellers, including retailers, to post label information on websites and
in paper catalogs from which consumers can order products. EnergyGuide
labels for most covered products contain three main disclosures:
Estimated annual energy cost, a product's energy consumption or energy
efficiency rating as determined by Department of Energy (``DOE'') test
procedures, and a comparability range displaying the highest and lowest
energy costs or efficiency ratings for all similar models. Under the
Rule, the Commission periodically updates comparability range and
annual energy cost information based on manufacturer data submitted
pursuant to the Rule's reporting requirements.\3\
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\3\ 16 CFR 305.10.
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II. Proposed Updated Ranges for Central Air Conditioners
The Commission proposes to update the comparability ranges for
central air conditioners to ensure manufacturers have information
available for the upcoming transition to new efficiency descriptors
required by DOE. On February 12, 2021 (86 FR 9274), the Commission
published conforming Rule amendments reflecting new DOE efficiency
descriptors on central air conditioner labels to ensure the Rule's
consistency with DOE requirements, which become effective on January 1,
2023.\4\ In the February Rule, the Commission stated it would update
ranges in appendices H and I, and the sample labels in appendix L, once
new efficiency numbers became available. The Commission now proposes to
amend the range tables (appendices H and I) and sample labels in the
Rule (appendix L) using new information from the Air-Conditioning,
Heating, & Refrigeration Institute (AHRI) and DOE staff input.\5\ As
the Commission stated in its February 2021 Rule (86 FR at 9279),
manufacturers may begin using the new range information prior to
January 1, 2023, in a manner consistent with DOE guidance once the FTC
issues the final updates to appendices H and I.
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\4\ In 2017, DOE announced changes to the rating methods and
associated efficiency descriptors for central air conditioners
(e.g., from ``Seasonal Energy Efficiency Ratio (SEER)'' to
``Seasonal Energy Efficiency Ratio 2 (SEER2)''). 82 FR 1786 (Jan. 6,
2017); and 82 FR 24211 (May 26, 2017).
\5\ AHRI is a trade association representing central air
conditioner manufacturers.
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III. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements 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 that
implement the Paperwork Reduction Act (PRA). OMB has approved the
Rule's existing information collection requirements through December
31, 2022 (OMB Control No. 3084-0069). The proposed amendments do not
change the substance or frequency of the recordkeeping, disclosure, or
reporting requirements and, therefore, do not require further OMB
clearance.
IV. Regulatory Flexibility Act
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 RFA
requires that the Commission provide an Initial Regulatory Flexibility
Analysis (``IRFA'') with a proposed rule unless the Commission
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. 5 U.S.C. 605. As explained
elsewhere in this document, the proposed amendments merely update the
Rule's appendices to include revised comparability ranges and sample
labels for central air conditioners based on more recent data. The
proposed amendments do not significantly change the substance or
frequency of the recordkeeping, disclosure, or reporting requirements.
Thus, the amendments will not have a ``significant economic impact on a
substantial number of small entities.'' 5 U.S.C. 605. The Commission
has concluded, therefore, that a regulatory flexibility analysis is not
necessary, and certifies, under Section 605 of the RFA (5 U.S.C.
605(b)), that the proposed amendments will not have a significant
economic impact on a substantial number of small entities.
[[Page 29534]]
V. Communications by Outside Parties to the Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding, from any
outside party to any Commissioner or Commissioner's advisor, will be
placed on the public record. See 16 CFR 1.26(b)(5).
VI. Comment Submissions
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before August 2, 2021. Write
``CAC Range Updates (16 CFR part 305) (Matter No. R611004)'' 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 <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
Because of the public health emergency in response to the COVID-19
outbreak and the agency's heightened security screening, postal mail
addressed to the Commission will be subject to delay. We strongly
encourage you to submit your comment online through the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website. To ensure the Commission considers your
online comment, please follow the instructions on the web-based form.
If you file your comment on paper, write ``CAC Range Updates (16
CFR part 305) (Matter No. R611004)'' 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 J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024. If possible, please submit your paper comment
to the Commission by courier or overnight service.
Because your comment will be placed on the publicly accessible
website at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, 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
else'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 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 Sec. 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 Sec. 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 <a href="http://www.regulations.gov">www.regulations.gov</a>, we cannot
redact or remove it unless you submit a confidentiality request that
meets the requirements for such treatment under FTC Rule Sec. 4.9(c),
and the General Counsel grants that request.
The FTC Act and other laws 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 it receives on or before August 2, 2021. For
information on the Commission's privacy policy, including routine uses
permitted by the Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
VII. Other Matters
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).
Proposed Rule Language
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
For the reasons stated above, the Commission proposes to amend part
305 of title 16 of the Code of Federal Regulations as follows:
PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')
0
1. The authority citation for part 305 continues to read as follows:
Authority: 42 U.S.C. 6294.
0
2. Revise appendix H to part 305 to read as follows:
Appendix H to Part 305--Cooling Performance for Central Air
Conditioners
------------------------------------------------------------------------
Range of SEER2's
Manufacturer's rated cooling capacity -------------------------------
(btu's/hr) Low High
------------------------------------------------------------------------
Single Package Units
------------------------------------------------------------------------
Central Air Conditioners (Cooling Only): 13.4 19
All capacities.........................
Heat Pumps (Cooling Function): All 13.4 19
capacities.............................
------------------------------------------------------------------------
Split System Units
------------------------------------------------------------------------
Central Air Conditioner models allowed 13.4 27
only in northern states (listed in Sec.
305.20(g)(13)) (Cooling Only): All
capacities.............................
Central Air Conditioner models allowed
in all states (Cooling Only):
All capacities...................... 13.8 27
Heat Pumps (Cooling Function): All 14.3 42
capacities.........................
Small-duct, high-velocity Systems....... 12 15
------------------------------------------------------------------------
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Space-Constrained Products
------------------------------------------------------------------------
Central Air Conditioners (Cooling Only): 11.7 13.7
All capacities.........................
Heat Pumps (Cooling Function): All 11.9 13.8
capacities.............................
------------------------------------------------------------------------
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3. Revise appendix I to part 305 to read as follows:
Appendix I to Part 305--Heating Performance and Cost for Central Air
Conditioners
------------------------------------------------------------------------
Range of HSPF2's
Manufacturer's rated heating capacity -------------------------------
(btu's/hr.) Low High
------------------------------------------------------------------------
Single Package Units
------------------------------------------------------------------------
Heat Pumps (Heating Function): All 6.7 8.4
capacities.............................
------------------------------------------------------------------------
Split System Units
------------------------------------------------------------------------
Heat Pumps (Heating Function): All 7.5 14.6
capacities.............................
Small-duct, high-velocity Systems....... 6.1 7.5
------------------------------------------------------------------------
Space-Constrained Products
------------------------------------------------------------------------
Heat Pumps (Heating Function): All 6.3 6.5
capacities.............................
------------------------------------------------------------------------
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4. Amend appendix L to part 305 by revising Prototype Label 3,
Prototype Label 4, Sample Label 7, and Sample Label 8 to read as
follows:
Appendix L to Part 305--Sample Labels
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BILLING CODE 6750-01-P
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BILLING CODE 6750-01-C
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By direction of the Commission.
April J. Tabor,
Secretary.
Note: The following statement will not appear in the Code of
Federal Regulations.
Dissenting Statement of Commissioner Christine S. Wilson
Today the Commission announces required changes to the Energy
Labeling Rule but makes no other changes to the Rule. Since 2015,
the Commission has sought comment on provisions of this Rule at
least three times, and has made numerous amendments.\1\ This
piecemeal approach has clarified the Rule's requirements--and I
appreciate FTC staff's efforts to keep this Rule clear and current--
but the Commission can and should do more. For the reasons described
below, I dissent.
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\1\ See 81 FR 62861 (Sept. 12, 2016) (seeking comment on
proposed amendments regarding portable air conditioners, ceiling
fans, and electric water heaters); 84 FR 9261 (Mar. 14, 2019)
(proposing amendments to organize the Rule's product descriptions);
85 FR 20218 (Apr. 10, 2020) (seeking comment on proposed amendments
regarding central and portable air conditioners).
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[[Page 29540]]
I have repeatedly urged the Commission \2\ to seek comment on
the more prescriptive aspects of this Rule. As I have noted in prior
statements, the Rule includes highly prescriptive requirements
detailing the trim size dimensions for labels, including the precise
width (between 5\1/4\'' to 5\1/2\'') and length (between 7\3/8\''
and 7\5/8\''); the number of picas for the copy set (between 27 and
29); the type style (Arial) and setting; the weight of the paper
stock on which the labels are printed (not less than 58 pounds per
500 sheets or equivalent); and a suggested minimum peel adhesive
capacity of 12 ounces per square inch.\3\ For example, the label
example attached to the Rule specifies not only the categories of
information to be displayed, but also the precise font and point
size in which that information is to be printed. For example, the
cooling efficiency number must appear in 38 pt. Arial Narrow Bold.
And while the phrase ``US Government'' at the top must be printed in
10 pt. Arial Narrow, the text next to it that reads ``Federal law
prohibits removal of this label before consumer purchase'' must be
printed in 9 pt. Arial Narrow. See Attachment 1 (Labeling
Requirements).
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\2\ See Dissenting Statement of Commissioner Christine S. Wilson
on the Notice of Proposed Rulemaking: Energy Labeling Rule (Dec. 10,
2018) (expressing my view that the Commission should seek comment on
the prescriptive labeling requirements), <a href="https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed">https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed</a>; See Dissenting Statement of Commissioner
Christine S. Wilson on the Notice of Proposed Rulemaking: Energy
Labeling Rule (Oct. 22, 2019) (urging the Commission to seek comment
on the labeling requirements), <a href="https://www.ftc.gov/system/files/documents/public_statements/1551786/r611004_wilson_dissent_energy_labeling_rule.pdf">https://www.ftc.gov/system/files/documents/public_statements/1551786/r611004_wilson_dissent_energy_labeling_rule.pdf</a>.
\3\ See 16 CFR 305.13 and 305.20.
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The Energy Labeling Rule exemplifies the era in which it was
created. The FTC promulgated the Rule in the 1970s, an era when the
agency was engaged in prolific and highly prescriptive
rulemaking.\4\ As I have noted previously,\5\ no area of commerce
was too straightforward or mundane to escape the Commission's
notice:
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\4\ See, e.g., Timothy J. Muris, Paper: Will the FTC's Success
Continue?, George Mason Law & Economics No. 18 (Sept. 24, 2018)
(discussing the successes and failures of the FTC's enforcement
efforts including the aggressive rulemaking activities in the
1970s), available at: <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3254294">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3254294</a>; Timothy J. Muris, Rules Without
Reason, AEI J. on Gov't and Society (Sept/Oct. 1982) (describing
failed FTC rulemaking proceedings), available at: <a href="https://www.cato.org/sites/cato.org/files/serials/files/regulation/1982/9/v6n5-4.pdf">https://www.cato.org/sites/cato.org/files/serials/files/regulation/1982/9/v6n5-4.pdf</a>; Teresa Schwartz, Regulating Unfair Practices Under The
FTC Act: The Need For a Legal Standard of Unfairness, 11 Akron Law
Rev. 1 (1978) (explaining that the judicial reversals of FTC
regulations resulted from a failure to establish an adequate legal
basis for the regulations), available at: <a href="https://ideaexchange.uakron.edu/akronlawreview/vol11/iss1/1/">https://ideaexchange.uakron.edu/akronlawreview/vol11/iss1/1/</a>.
\5\ See Concurring Statement of Commissioner Christine S.
Wilson, Amplifier Rule (Dec. 17, 2020), <a href="https://www.ftc.gov/system/files/documents/public_statements/1585038/csw_amplifier_rule_stmt_11192020.pdf">https://www.ftc.gov/system/files/documents/public_statements/1585038/csw_amplifier_rule_stmt_11192020.pdf</a>; Dissenting Statement of
Commissioner Christine S. Wilson on the Notice of Proposed
Rulemaking: Energy Labeling Rule (Dec. 10, 2018), <a href="https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed">https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed</a>.
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<bullet> The Trade Regulation Rule concerning Deception as to
Non-Prismatic and Partially Prismatic Instruments Being Prismatic
Binoculars \6\ addressed failures to disclose ``instruments having
bulges on the tubes which simulate prismatic instruments are not
prismatic instruments or do not contain complete prism systems'' and
provided detailed definitions of six types of binoculars and field
glasses.
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\6\ 16 CFR 402, <a href="https://www.ftc.gov/sites/default/files/documents/federal_register_notices/trade-regulation-rule-concerning-deception-non-prismatic-and-partially-prismatic-instruments-being/950523non-prismatic.pdf">https://www.ftc.gov/sites/default/files/documents/federal_register_notices/trade-regulation-rule-concerning-deception-non-prismatic-and-partially-prismatic-instruments-being/950523non-prismatic.pdf</a>.
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<bullet> The Trade Regulation Rule concerning Failure to
Disclose that Skin Irritation May Result from Washing or Handling
Glass Fiber Curtains and Draperies included a Commission conclusion
that ``the failure to disclose that skin irritation may result from
body contact with glass fiber drapery and curtain fabrics, and
clothing or other articles which have been washed with such glass
fiber products or in containers previously used for washing such
products when that container has not been cleansed of glass
particles, has the capacity and tendency to mislead and deceive
purchasers and prospective purchasers and to divert business from
competitors whose products may be washed or handled without the
resulting irritation.'' \7\
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\7\ 16 CFR 413.3(c), <a href="https://www.ftc.gov/sites/default/files/documents/federal_register_notices/trade-regulation-rule-deceptive-advertising-and-labeling-size-tablecloths-and-related-products-16/950523advertisingandlabelingasto.pdf">https://www.ftc.gov/sites/default/files/documents/federal_register_notices/trade-regulation-rule-deceptive-advertising-and-labeling-size-tablecloths-and-related-products-16/950523advertisingandlabelingasto.pdf</a>.
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<bullet> The Guides for the Ladies' Handbag Industry addressed
the use of the terms ``scuffproof,'' ``scratchproof,'' ``scuff
resistant,'' and ``scratch resistant;'' representations that a
product is colored, finished or dyed with aniline dye or otherwise
dyed, embossed, grained, processed, finished or stitched in a
certain manner; and required disclosures to be made with respect to
a product's composition.\8\
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\8\ 16 CFR 247, <a href="https://www.ftc.gov/sites/default/files/documents/federal_register_notices/guides-luggage-and-related-products-industry-guides-shoe-content-labeling-and-advertising-and-guides/950918luggageandrelatedproducts.pdf">https://www.ftc.gov/sites/default/files/documents/federal_register_notices/guides-luggage-and-related-products-industry-guides-shoe-content-labeling-and-advertising-and-guides/950918luggageandrelatedproducts.pdf</a>.
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In March 2020, we sought comment on some of the more
prescriptive provisions of the Energy Labeling Rule \9\ and received
many interesting and thoughtful comments.\10\ Rather than act on
these comments or proposals, though, the Commission chose to
finalize only proposals necessary to conform to Department of Energy
changes.\11\ Again today, the Commission chooses to make minor
changes necessary for conformity but fails to conduct a full review
of the Rule to consider removing all dated and prescriptive
provisions, and to consider the recent comments suggesting changes.
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\9\ See Concurring Statement of Commissioner Christine S. Wilson
on the Notice of Proposed Rulemaking: Energy Labeling Rule (Mar. 20,
2020), <a href="https://www.ftc.gov/system/files/documents/public_statements/1569815/r611004_wilson_statement_energy_labeling.pdf">https://www.ftc.gov/system/files/documents/public_statements/1569815/r611004_wilson_statement_energy_labeling.pdf</a>.
\10\ See, e.g., Air-Conditioning, Heating and Refrigeration
Institute (AHRI) Comment (#33-09), available at: <a href="https://www.regulations.gov/document?D=FTC-2020-0033-0009">https://www.regulations.gov/document?D=FTC-2020-0033-0009</a>; Association of
Home Appliance Manufacturers (AHAM) Comment (#33-04), available at:
<a href="https://www.regulations.gov/document?D=FTC-2020-0033-0004">https://www.regulations.gov/document?D=FTC-2020-0033-0004</a>; Goodman
Manufacturing Comment (#33-08), available at: <a href="https://www.regulations.gov/document?D=FTC-2020-0033-0008">https://www.regulations.gov/document?D=FTC-2020-0033-0008</a>.
\11\ See Dissenting Statement of Commissioner Christine S.
Wilson on Notice of Proposed Rulemaking: Energy Labeling Rule (Dec.
22, 2020), <a href="https://www.ftc.gov/system/files/documents/public_statements/1585242/commission_wilson_dissenting_statement_energy_labeling_rule_final12-22-2020revd2.pdf">https://www.ftc.gov/system/files/documents/public_statements/1585242/commission_wilson_dissenting_statement_energy_labeling_rule_final12-22-2020revd2.pdf</a>.
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The Commission last conducted a full review of the Energy
Labeling Rule in 2015. Under our 10-year regulatory review schedule,
the next review is scheduled for 2025. Nothing, however, prevents
the Commission from conducting this review now. I again urge the
Commission to act on the comments we received last year, eliminate
the more prescriptive aspects of the Rule, and maximize the positive
impact of this Rule for consumers. If we are statutorily mandated to
maintain this Rule, we should endeavor to make it beneficial for
consumers and competition.
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[FR Doc. 2021-11498 Filed 6-1-21; 8:45 a.m.]
BILLING CODE 6750-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.