Trade Regulation Rule Relating to Power Output Claims for Amplifiers Utilized in Home Entertainment Products
| Court | Federal Trade Commission |
| Citation | 88 FR 56780 |
| Published date | 21 August 2023 |
| Record Number | 2023-16792 |
Federal Register, Volume 88 Issue 160 (Monday, August 21, 2023)
[Federal Register Volume 88, Number 160 (Monday, August 21, 2023)]
[Proposed Rules]
[Pages 56780-56787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16792]
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FEDERAL TRADE COMMISSION
16 CFR Part 432
RIN 3084-AB62
Trade Regulation Rule Relating to Power Output Claims for
Amplifiers Utilized in Home Entertainment Products
AGENCY: Federal Trade Commission.
ACTION: Supplemental notice of proposed rulemaking.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') seeks
public comment on proposed amendments to the Trade Regulation Rule
Relating to Power Output Claims for Amplifiers Utilized in Home
Entertainment Products (``Amplifier Rule'' or ``Rule''). The proposed
amendments modify the previous proposal by updating a required test
condition (total harmonic distortion), improving differentiation
between power output disclosures that comply with the Rule's testing
methods and those that do not, and modernizing as well as clarifying
Rule language considering the foregoing modifications. Additionally,
the proposed amendments now formalize prior Commission guidance on
applying the Rule to multichannel amplifiers.
DATES: Written comments must be received on or before October 20, 2023.
Parties interested in an opportunity to present views orally should
submit a request to do so as explained below, and such requests must be
received on or before October 20, 2023.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Amplifier Rule Review;
Project No. P974222'' on your comment and file your comment online
through https://www.regulations.gov. If you prefer to file your comment
on paper,
[[Page 56781]]
mail your comment to the following address: Federal Trade Commission,
Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610
(Annex A), Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Hong Park, Attorney, (202) 326-2158,
[email protected], Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW, Mail Stop CC-
6316, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission promulgated the Amplifier Rule in 1974 to address
sellers' failure to provide essential pre-purchase information
regarding the performance of home entertainment amplifiers.\1\
Specifically, manufacturers described their products' performance
through power output claims (e.g., ``25 Watts''), but tested their
amplifiers under a variety of conditions and procedures. Thus,
consumers could not effectively use advertised wattage claims to
compare brands or determine how individual amplifiers would perform. At
the time, the Commission noted, ``[s]ince the mid-50's the [audio]
industry'' had failed ``to agree upon a single industry standard which
is meaningful to the consumer.'' \2\ Accordingly, the Rule standardized
the measurement and disclosure of some, but not all, performance
characteristics of power amplification equipment to ``assure that . . .
performance characteristics are based upon conditions of normal use by
the consumer, i.e., conditions which are encountered in the home.'' \3\
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\1\ 39 FR 15387 (May 3, 1974).
\2\ Id. at 15388.
\3\ Id. at 15392. Merely testing amplifiers under identical test
conditions will not produce useful consumer information if the test
conditions differ significantly from normal use conditions.
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Under the Rule, sellers making certain power claims (i.e., for
power output, power band or power frequency response, or distortion
characteristics) must disclose power output measured under specified
test conditions. For example, amplifiers must be tested at an ambient
air temperature of at least 77 [deg]F (25 [deg]C).\4\ The Rule,
however, does not specify values for three test conditions that
strongly affect power output measurements: (1) load impedance; \5\ (2)
rated power band or power frequency response; \6\ and (3) total
harmonic distortion (``THD'').\7\ Instead, the original Rule required
disclosure of these values wherever sellers made certain power
claims.\8\ In 2000, the Commission eliminated this disclosure
requirement in ``media advertising'' but retained the requirement in
product brochures and manufacturer specification sheets.\9\
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\4\ This requirement prevents testing with cooling equipment
while driving amplifiers to high power outputs that would overheat
amplifiers during normal use. See 16 CFR 432.3(d) (``The
preconditioning and testing shall be in still air and an ambient
temperature of at least 77 [deg]F (25 [deg]C) . . . .'').
\5\ The current Rule sets a default load impedance of 8 ohms for
measuring power output but permits measurement at a different load
impedance if the amplifier is designed primarily for that impedance.
16 CFR 432.2(a). ``[T]he lower the load impedance utilized in
testing . . . equipment, the higher the output of the amplifier.''
39 FR 15387, 15390 (May 3, 1974). For example, an amplifier that
outputs 550 watts into 2 ohms might only output 350 watts into 4
ohms and 215 watts into 8 ohms. See Speaker Impedance Changes
Amplifier Power, Geoff the Grey Geek, https://geoffthegreygeek.com/speaker-impedance-changes-amplifier-power/ (last visited Mar. 22,
2023).
\6\ High quality amplifiers can output a broad range of
frequencies, such as the sounds of all the instruments in an
orchestra, at high power. Lower quality amplifiers can only output
certain frequencies, such as 1 kHz (e.g., the sound of a trumpet),
at high power, and output lower frequencies (e.g., a timpani or
bass) or higher frequencies (e.g., a piccolo) at lower power. Power
output measurements made at a single frequency or over a limited
power band do not permit consumers to distinguish between these
quality differences in amplifiers. The Commission has stated ``a
measurement [on a 1 kHz test signal] is inherently deceptive to the
consumer who expects that a piece of equipment represented as being
capable of a stated power output will deliver that power output
across its full audio range.'' 39 FR 15387, 15390 (May 3, 1974).
\7\ The output of an amplifier driven to increasingly higher
power will distort and sound different from the original
performance. When the Commission promulgated the Rule, it received
evidence that distortion limits during testing affect power output
measurements. For example, the same amplifier might output 20 watts
if driven only until the output reaches 0.5% THD, and output 30
watts when driven to 5% THD. The Rule requires disclosure of the THD
during testing so consumers can determine the value of power output
measurements. See 39 FR 15387, 15391-92 (May 3, 1974).
\8\ 16 CFR 432.2 (1974).
\9\ 65 FR 81232 (Dec. 22, 2000).
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Pursuant to its ongoing regulatory review schedule, on December 18,
2020, the Commission published an advance notice of proposed rulemaking
(``ANPR'') seeking comment on the Amplifier Rule. 85 FR 82391 (Dec. 18,
2020). Specifically, the ANPR sought comments regarding possible Rule
improvements, the continuing need for the Rule, the Rule's costs and
benefits, as well as whether, and how, technological or economic
changes have affected the Rule.
In response, the Commission received 530 unique comments, including
from amplifier and speaker manufacturers, amplifier sellers and
purchasers, and engineers or journalists in the audio field.\10\ All
but one commenter supported retaining the Rule.\11\ Based on this near
universal support, the Commission concluded there was a continuing need
for the Rule.
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\10\ These comments are available at https://www.regulations.gov/document/FTC-2020-0087-0001/comment. In this
publication, commenters are referred to by name, the acronym for the
notice to which the commenter responded (either ANPR or NPRM), and
the number assigned to each comment. For example, the comment to the
ANPR from Garry Grube, which was assigned ID FTC-2020-0087-0187 on
www.regulations.gov, is referred to as ``Garry Grube (ANPR 187).''
\11\ The one commenter did not provide a substantive comment.
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Although commenters overwhelmingly supported the Rule, some
recommended amendments. For example, many commenters urged the
Commission to require uniform power band, load impedance, and THD
limits to prevent manipulation of these three test conditions.\12\
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\12\ For instance, Alan McConnaughey (ANPR 5) commented, ``More
rules should be [enacted] to require 8 ohm ratings so everything is
apples do [sic] apples.'' Jim McCabe (ANPR 378) commented that
amplifiers should be tested ``driven from 20 to 20k'' to ``stop the
lying.'' Danny Anonymous (ANPR 4325) commented that, ``[t]o
eliminate confusion, just use Output Watts@1%THD.'' See also, e.g.,
comments from Dennis Murphy, Philharmonic Audio (ANPR 525) and David
Rich (ANPR 548). In all, twenty-seven commenters recommended
specifying the load impedance; 36 recommended specifying the power
band to be 20 Hz to 20 kHz; 26 recommended specifying a THD or
requiring a low THD; and 159 recommended, in conjunction with a
recommendation regarding multichannel amplifier testing, specifying
values for all three test conditions.
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Consistent with these comments, Commission staff found this
manipulation ubiquitous in the marketplace. Specifically, staff found
dozens of examples of the same equipment advertised with significantly
different power output claims (e.g., some sellers advertised a
particular
[[Page 56782]]
model with 45 watts output per channel, while others advertised the
same model with 100 watts per channel \13\). Using specification sheets
on manufacturers' websites, staff confirmed these widely divergent
claims resulted from different testing parameters.
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\13\ See, e.g., Onkyo TX-8220, Crutchfield, https://www.crutchfield.com/p_580TX8220/Onkyo-TX-8220.html (last visited on
Oct. 1, 2021); Onkyo TX-8220, Amazon.com, https://www.amazon.com/Onkyo-TX-8220-Channel-Receiver-Bluetooth/dp/B075P831VY/ref=sr_1_1?dchild=1&keywords=Onkyo+TX-8220&qid=1633096775&sr=8-1
(viewed on Oct. 1, 2021; advertisement subsequently revised).
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Based on the comments and staff's review, the Commission found
requiring disclosure of test conditions is unlikely to prevent
deceptive power output claims. Test conditions are highly technical and
require complex calculations to convert claims into apples-to-apples
power output comparisons. Thus, the average consumer is unlikely to
understand or use the disclosed test conditions to avoid deception.\14\
This problem is amplified by the fact that consumers now shop online
more frequently, providing fewer opportunities to listen to equipment
before purchasing.
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\14\ Staff has surveyed numerous academic articles finding that
consumers are not able to effectively comprehend highly technical
disclosures; no surveyed research found to the contrary. See, e.g.,
Omri Ben-Shahar and Carl E. Schneider, The Failure of Mandated
Disclosure, 159 U. Pa. L. Rev. 647, available at http://www.jstor.org/stable/41149884. The Commission promulgated the Rule
so consumers would not need to perform complex calculations to
derive useful power ratings. It found that, prior to the Rule,
consumers had to ``deduct 10 to 25 percent [from the ``music power''
ratings previously claimed] and divide by 2'' to derive power
ratings that reflected normal usage. 39 FR 15387, 15388 (May 3,
1974). Additionally, the Commission has previously concluded that
``an insufficient number of consumers . . . understand the meaning
and significance of . . . disclosures concerning power bandwidth and
impedance.'' 63 FR 37238, 37239 (July 9, 1998).
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To address widespread misleading power output claims, the
Commission published a notice of proposed rulemaking (``NPRM''),
proposing an amendment to the Amplifier Rule to standardize the three
test conditions.\15\ Specifically, the Commission proposed the
following standard values: (1) a load impedance of 8 ohms; (2) a power
band of 20 Hz to 20 kHz (except for self-powered subwoofer systems);
and (3) a THD limit of less than 0.1%. Staff's review found amplifiers
are generally designed to drive a nominal load impedance of 8 ohms; 20
Hz to 20 kHz covers the normal range of human hearing; \16\ and 0.1%
THD does not audibly distort a signal. Several commenters suggested
these test conditions, and many manufacturers' specification sheets
already disclose power outputs tested at 8 ohms, 20 Hz to 20 kHz, and
at THD limits of, or slightly below, 0.1%.
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\15\ 87 FR 45047 (July 27, 2022).
\16\ The Commission's NPRM proposal excluded amplifiers in self-
powered subwoofers used in systems that employ two or more
amplifiers dedicated to different portions of the audio frequency
spectrum from being tested over a power band of 20 Hz to 20 kHz. The
Commission has previously recognized that, while ``stand-alone . . .
amplifiers . . . must reproduce signals covering the full musical
frequency bandwidth,'' ``self-powered subwoofer systems . . .
incorporate crossover circuitry that filters out frequencies above
the bass range,'' and the amplifiers in self-powered subwoofer
systems only amplify bass frequencies. 64 FR 38610, 38613-4 (July
19, 1999). Consequently, the Commission proposed to limit the power
band for testing self-powered subwoofer amplifiers to the
frequencies within those amplifiers' intended operating bandwidth.
The proposed amendments would require testing amplifiers in self-
powered full-range loudspeakers, such as full-range Bluetooth
speakers that output more than two watts, over a power band of 20 Hz
to 20 kHz.
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II. Comments Received in Response to NPRM
The Commission received nine unique comments in response to the
NPRM.\17\ Seven either broadly supported the regulation of power output
claims or the standardization of test conditions.\18\ Two of these
commenters, however, expressed concern about the THD limit. They
explained many vacuum tube and solid state amplifiers ``would not be
able to qualify for a power output claim'' under the proposed 0.1%
limit.\19\ Accordingly, they recommended the Commission allow
manufacturers to disclose their chosen THD level rather than setting a
fixed limit. Additionally, one commenter recommended replacing the term
``total harmonic distortion'' with ``THD with noise,'' or ``THD+N,'' to
align the Rule with the Commission's original intent.\20\
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\17\ These comments can be found at https://www.regulations.gov/document/FTC-2022-0048-0001. The Commission received a total of 11
comments. However, two of these comments neither responded to the
NPRM nor discussed any aspect of the Rule. A third comment raised
concerns outside the scope of this proceeding (e.g., health risks
posed by amplifiers) and did not supply any supporting evidence. See
Chelsy Graves (NPRM 5).
\18\ See, e.g., Travis Surprenant (NPRM 2) (``It needs to be a
uniform rating to ensure consumers are comparing products on a level
playing field.''); Peiyan Wang (NPRM 4) (``A uniform testing method
could provide convenience for consumers to compare different
products.''); Kiet Hoang (NPRM 10) (``I believe it needs to be a
uniform testing method in order to provide the customers to compare
the products on a comparable basis.'').
\19\ Dennis Murphy (NPRM 9) (stating that all the tube
amplifiers reviewed by the audio publication Stereophile over the
past 10 years and many solid state amplifiers could not meet the
0.1% maximum THD requirement); see also E.W. Blackwood (NPRM 7)
(``0.1% total harmonic distortion (THD) is too restrictive and would
have an impact on many manufacturers.'').
\20\ E.W. Blackwood (NPRM 7).
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Only one commenter opposed the Commission's proposal in its
entirety. The Consumer Technology Association (``CTA'') stated the
Commission's proposal is unnecessary for component audio devices
because manufacturers ``generally already use [the Commission's
proposed] parameters to test their devices.'' \21\ As for integrated
audio devices, such as soundbars, CTA stated that standardizing the
power output test conditions would be irrelevant to consumers.
According to CTA, consumers do not evaluate ``specific technical
capabilities of individual components,'' such as power output, but
rather look to the ``immersive audio experience'' reviewed in online
videos and other online sources. Therefore, CTA urged the Commission to
reject the proposal, or at a minimum, to narrow its application to
component audio devices and not integrated audio devices.
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\21\ CTA (NPRM 8).
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III. Analysis and Additional Proposed Amendments to the Rule
After reviewing these comments, the Commission reaffirms its
proposed approach of standardizing power output test conditions
governing impedance, power band, and distortion. The Commission
proposed standardizing these conditions based on the vast majority of
comments,\22\ as well as Commission staff's research, indicating
standardization is necessary to eliminate conflicting and confusing
power output claims. CTA's comments do not change this conclusion. CTA
asserts such standardization is unnecessary with respect to component
audio devices because manufacturers ``generally'' use the Commission's
proposed standard. However, staff found numerous instances of sellers
advertising component audio devices using power output standards that
differed from each other and from the Commission's proposal.\23\ CTA
also
[[Page 56783]]
contends power output information is irrelevant to consumers of
integrated home audio equipment. In contrast, Commission staff easily
found multiple instances of sellers advertising such equipment using
power output claims, presumably because they believe consumers find
power output information relevant to their purchasing decision.\24\
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\22\ See 87 FR 45047, 45049 (July 27, 2022).
\23\ See, e.g., Denon PMA-600NE Stereo Integrated Amplifier,
Amazon.com, https://www.amazon.com/Denon-PMA-600NE-Integrated-Amplifier-Connectivity/dp/B07XL4TM3M/ref=sr_1_4?crid=3VROHBG0858SO&keywords=integrated%2Bamplifier&qid=1678911254&sprefix=integrated%2Bamplifier%2Caps%2C92&sr=8-4&th=1 (last
visited on Mar. 22, 2023) (advertising 70 watts at 4 ohms, 1kHz, THD
0.7%); Onkyo A-9110 Home Audio Integrated Stereo Amplifier--Black,
Amazon.com, https://www.amazon.com/Onkyo-A-9110-Integrated-Stereo-Amplifier/dp/B07J2S755K/ref=sr_1_6?crid=3VROHBG0858SO&keywords=integrated+amplifier&qid=1678911254&sprefix=integrated+amplifier%2Caps%2C92&sr=8-6 (last visited
on Mar. 22, 2023) (advertising 50 watts at 4 ohms, 20Hz-20kHz, 0.9%
THD); Russound P75, Crutchfield, https://www.crutchfield.com/p_543P75/Russound-P75.html?tp=48757 (Mar. 22, 2023) (advertising 60
watts into 8 ohms, 1kHz, 1% THD).
\24\ See, e.g., Nakamichi Shockwafe Ultra 9.2.4 Channel 1000W
Dolby Atmos/DTS:X Soundbar with Dual 10'' Subwoofers (Wireless) & 4
Rear Surround Speakers. Enjoy Plug and Play Explosive Bass & High
End Cinema Surround, Amazon.com, https://www.amazon.com/Nakamichi-Shockwafe-Ultra-9-2Ch-DTS/dp/B07HHZ94BW/ref=sr_1_2_sspa?c=ts&keywords=Home+Theater+Systems&qid=1678919591&s=aht&sr=1-2-spons&ts_id=281056&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUEzR0VUSE9aNjNEUDlIJmVuY3J5cHRlZElkPUEwODM4ODgyMlE1VDYyMVBUTVRCVSZlbmNyeXB0ZWRBZElkPUEwMzkwOTY1Mk9WSjkwMjNPNkg1QSZ3aWRnZXROYW1lPXNwX2F0ZiZhY3Rpb249Y2xpY2tSZWRpcmVjdCZkb05vdExvZ0NsaWNrPXRydWU= (advertising 1000 watts);
Bobtot Home Theater Systems Surround Sound Speakers--1200 Watts 10
inch Subwoofer 5.1/2.1 Channel Home Audio Stereo System, Amazon.com,
https://www.amazon.com/Bobtot-Theater-System-Surround-Speakers/dp/B09MRW83PZ/ref=sxin_16_pa_sp_search_thematic_sspa?c=ts&content-id=amzn1.sym.711b623b-fef6-4340-9590-f21d01371ab3%3Aamzn1.sym.711b623b-fef6-4340-9590-f21d01371ab3&cv_ct_cx=Home+Theater+Systems&keywords=Home+Theater+Systems&pd_rd_i=B09MRW83PZ&pd_rd_r=d167b2e2-a2f1-4119-9562-90cc123dce28&pd_rd_w=W8eOP&pd_rd_wg=f6w1j&pf_rd_p=711b623b-fef6-4340-9590-f21d01371ab3&pf_rd_r=ZDVKAESB3BDAQR1KTNJA&qid=1678919591&s=aht&sbo=RZvfv%2F%2FHxDF%2BO5021pAnSA%3D%3D&sr=1-1-2b34d040-5c83-4b7f-ba01-15975dfb8828-spons&ts_id=281056&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUEzR0VUSE9aNjNEUDlIJmVuY3J5cHRlZElkPUEwMTM2MzA1MkNRTkFXTVg2NVUzTyZlbmNyeXB0ZWRBZElkPUEwNzgwNDkxVUxPRFRWSlBWVEI4JndpZGdldE5hbWU9c3Bfc2VhcmNoX3RoZW1hdGljJmFjdGlvbj1jbGlja1JlZGlyZWN0JmRvTm90TG9nQ2xpY2s9dHJ1ZQ== (last
visited on Mar. 22, 2023) (advertising 1200 watts); Rockville HTS56
1000w 5.1 Channel Home Theater System/Bluetooth/USB+8'' Subwoofer,
Amazon.com, https://www.amazon.com/Rockville-HTS56-Channel-Bluetooth-Subwoofer/dp/B076R7HYKN/ref=sr_1_6?c=ts&keywords=Home+Theater+Systems&qid=1678919591&s=aht&sr=1-6&ts_id=281056 (last visited on Mar. 22, 2023) (advertising 1000
watts).
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Based on the comments, however, the Commission modifies its NPRM
proposal in three ways. First, it proposes replacing the Rule's
reference to ``total harmonic distortion'' with ``total harmonic
distortion plus noise'' (``THD+N'').\25\ As one commenter observed, the
modern audio equipment industry distinguishes between THD and
THD+N.\26\ THD measures only the discrepancy in harmonics between the
original audio signal and the amplified signal (harmonic
distortion).\27\ In contrast, THD+N measures both harmonic distortion
and noise introduced by the power line, the electronics of the
amplifier, and other sources.\28\ When the Commission originally
promulgated the Rule, it intended the term ``total harmonic
distortion'' to capture both harmonic distortion and noise signified by
the broader term THD+N.\29\ The modified proposal preserves this
original meaning.\30\
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\25\ See infra proposed 16 CFR 432.3(e).
\26\ E.W. Blackwood (NPRM 7).
\27\ Typically, the original audio signal used in measuring
distortion is a sinusoidal wave with a defined frequency called a
``fundamental frequency.'' Amplifying the original audio signal may
generate harmonics, which are sinusoidal waves with frequencies that
are a positive integer multiple of the fundamental frequency.
Harmonic distortion is the measure of the harmonics introduced into
the amplified output signal. See THD And THD+N--Similar But Not The
Same, Audio Precision, Inc., https://www.ap.com/blog/thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2023); What Is
Total Harmonic Distortion Plus Noise (THD+N)?, Audio Interfacing
(Nov. 15, 2022), https://audiointerfacing.com/total-harmonic-
distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal.; Understanding, Calculating, and Measuring Total Harmonic
Distortion (THD), All About Circuits (Feb. 20, 2017), https://
www.allaboutcircuits.com/technical-articles/the-importance-of-total-
harmonic-distortion/
#:~:text=Harmonics%20or%20harmonic%20frequencies%20of,of%20a%20period
ic%20signal%20shows.
\28\ See, e.g., What Is Total Harmonic Distortion Plus Noise
(THD+N)?, Audio Interfacing (Nov. 15, 2022), https://
audiointerfacing.com/total-harmonic-distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal.; More About THD+N And THD, Audio Precision, Inc. (Feb. 1,
2013), https://www.ap.com/technical-library/more-about-thdn-and-thd/
; Not All Distortion Is Created Equal--A Guide to THD & THD+N,
Bandwidth Audio, https://www.bandwidthaudio.com/post/not-all-distortion-is-created-equal-a-guide-to-thd-thd-n (last visited Mar.
22, 2023).
\29\ For instance, the Commission's intent to include noise in
using the term ``total harmonic distortion'' is demonstrated by its
explanation of Sec. 432.3(a) when it first promulgated the Rule.
That section requires AC power lines for testing equipment capable
of using AC as a power source. The Commission explained that testing
cannot artificially eliminate the ``hum and noise factor'' present
in AC power lines by using a battery to power equipment capable of
AC power. 39 FR 15387, 15393 (May 3, 1974).
\30\ The modified proposal also reduces the burden on industry.
Measuring THD+N is simpler because it does not require the
additional step of separating harmonic distortion from noise for
measuring THD. See, e.g., THD And THD+N--Similar But Not The Same,
Audio Precision, Inc., https://www.ap.com/blog/thd-and-thdn-similar-but-not-the-same/ (last visited on Mar. 22, 2013) (``[T]he test
setup [for measuring THD] is inherently more complicated than the
THD+N technique.''); What Is Total Harmonic Distortion Plus Noise
(THD+N)?, Audio Interfacing (Nov. 15, 2022), https://
audiointerfacing.com/total-harmonic-distortion-plus-noise/
#:~:text=THD%20is%20a%20measure%20of,relative%20to%20the%20input%20si
gnal. (``[I]n practice THD+N is easier to measure than THD.'').
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Second, the Commission proposes raising the THD+N limit to 1.0% to
address commenters' concerns that a significant number of amplifiers on
the market cannot qualify for any power output claim under the NPRM
proposal's 0.1% limit.\31\ Staff research confirms that a number of
entry-level solid state amplifiers cannot rate the power output at a
0.1% THD+N limit but most can rate at a 1.0% limit.\32\ Although the
new proposal allows a higher percentage of distortion, research
referenced by commenter Dennis Murphy indicates the average consumer
cannot audibly detect distortion at the 1.0% level, especially when
listening to content typically played on home audio equipment, such as
music and movie programming.\33\ The Commission
[[Page 56784]]
recognizes some amplifiers would not qualify for a power output rating
even at the 1.0% THD+N limit. However, these sellers may voluntarily
disclose power output ratings that do not conform to the FTC's testing
standard, provided their disclosures comply with the Rule's
requirements governing ``Optional Disclosures'' set forth in Sec.
432.4.\34\
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\31\ See infra proposed 16 CFR 432.3(e).
\32\ FTC staff examined graphs of THD+N vs. 1kHz continuous
output power into 8 ohms for a sampling of solid state amplifier
devices on www.stereophile.com. 8 out of 30 devices were not capable
of generating any power output at a maximum THD+N threshold of 0.1%,
but all 30 devices were capable of generating a power output at a
maximum THD+N threshold of 1.0%. Similarly, FTC staff reviewed a
sampling of solid state amplifier devices available on
www.crutchfield.com. Out of the 50 devices reviewed, 10 advertised
power output ratings at THD levels that exceeded 0.1% but that were
within the 1.0% limit. As for vacuum tube amplifiers, many of the
reviews on www.stereophile.com did not provide the THD or THD+N
level for the rated power output. However, FTC staff's online
research suggests that these amplifiers generally produce a higher
level of distortion than solid state amplifiers. See, e.g., Why
Tubes Sound Better, Ken Rockwell, https://www.kenrockwell.com/audio/
why-tubes-sound-
better.htm#:~:text=Tube%20amplifiers%20have%20much%20more,same%20note
%2C%20an%20octave%20above (last visited on Mar. 22, 2023) (``Tube
amplifiers have much more distortion than solid-state amplifiers . .
.''). ``In addition, one commenter stated he independently evaluated
all of the tube amplifiers reviewed by www.stereophile.com and found
that ``none achieved THD levels as low as .1% over a 20 Hz to 20kHz
bandwidth into 8 Ohms, even when driven with as little as 3 watts.''
Dennis Murphy (NPRM 9).
\33\ Dennis Murphy (NPRM 9). Mr. Murphy noted ``the published
research has found that consumers cannot begin to detect distortion
on music program material until it reaches at least 1% [THD] . . .''
Id. (citing Mark Sanfilipo, Human Hearing--Distortion Audibility
Part 3, Audioholics (Apr. 22, 2005), available at https://www.audioholics.com/room-acoustics/human-hearing-distortion-audibility-part-3). The www.audioholics.com web page cited by Mr.
Murphy references 6 studies, 4 of which support the notion that the
average consumer cannot detect distortion below 1%. Other internet
sources seem to support this conclusion. See, e.g., What Is Total
Harmonic Distortion (THD)?, Lifewire, https://www.lifewire.com/total-harmonic-distortion-3134704 (last visited Mar. 28, 2023) (``As
long as THD is less than one percent, most listeners will not hear
any distortion.''); Understanding Amplifier Power, Geoff the Grey
Geek, https://geoffthegreygeek.com/understanding-amplifier-power/
(last visited on Mar. 28, 2023) (stating THD or THD+N ``should be 1%
or less'' to avoid inflated power output claims achieved at
unacceptably high levels of distortion); cf. Blind Test Results Part
II: ``Is High Harmonic Distortion in Music Audible?'' Respondent
Results, Archimago's Musings (June 6, 2020), available at http://archimago.blogspot.com/2020/06/blind-test-results-part-ii-is-high.html (informal online listening test showing 31% of listeners
detected only a ``small difference'' in sound between a 0.0000002%
THD sample and 3.0% THD sample, 21% detected ``very little to no
difference,'' and 18% detected ``no noticeable difference'').
\34\ 16 CFR 432.4. Both the current and proposed versions of
this section mandate that Optional Disclosures be less conspicuous
and prominent than the disclosure of the FTC power output rating and
that they use testing methods that are generally recognized by the
industry, among other requirements.
---------------------------------------------------------------------------
Third, the Commission proposes requiring sellers to use specific
language to clearly distinguish power output disclosures under Sec.
432.2 from Optional Disclosures under Sec. 432.4. By standardizing the
test conditions for power output claims under Sec. 432.2, the
Commission anticipates more sellers would also use Optional Disclosures
to distinguish specific features of their products. While such claims
can be useful to consumers seeking particular audio qualities, they
raise the specter of confusion. To address this issue, the Commission
proposes to amend both Sec. 432.2 and Sec. 432.4 to require sellers
to designate disclosures that meet the FTC's standard with the words
``FTC Power Output Rating,'' and those that do not (i.e., disclosures
that fall within the Optional Disclosures section) with the words
``This rating does not meet the FTC standard.'' \35\ This information
should alert consumers to the type of power output claim being made and
facilitate an apples-to-apples comparison across different brands and
models.
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\35\ See infra proposed 16 CFR 432.2(c) and 432.4(a),
respectively.
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Additionally, the Commission proposes making four non-substantive
changes to update and clarify the language of the Rule. First, the
Commission proposes eliminating language in Sec. 432.4 that currently
incorporates Sec. 432.2's requirement to disclose the test
conditions.\36\ As explained above, the proposed amendments to the Rule
eliminate this requirement because such highly technical disclosures
are unlikely to protect the general consumer from deceptive power
output claims.
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\36\ 16 CFR 432.4(a) (requiring ``such power output
representation(s) complies with the provisions of Sec. 432.2 of
this part; except that if a peak or other instantaneous power
rating, such as music power or peak power, is represented under this
section, the maximum percentage of total harmonic distortion (see
Sec. 432.2(d) of this part) may be disclosed only at such rated
output'').
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Second, the Commission proposes to consolidate all provisions that
standardize test conditions into a single section. Doing so should
improve the Rule's useability. Currently, the Rule has two sections
that contain standard test conditions. Section 432.3 entitled
``Standard Test Conditions'' contains most of the Rule's test condition
requirements; however, the requirement to test using ``minimum sine
wave continuous average power output, in watts, per channel . . .''
appears in Sec. 432.2(a). Consolidating these requirements into Sec.
432.3 should make the requirements easier to find.\37\
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\37\ See infra proposed 16 CFR 432.3(g) & (h).
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Third, the Commission proposes modifying Sec. 432.3(e) to clarify
that amplifiers must meet the standard for impedance, power band, and
THD+N at all levels from 250mW to the disclosed level. Retaining this
requirement from the current rule \38\ while standardizing test
conditions should ensure the advertised power claim does not mask lower
power levels at which the amplifier would not meet the FTC's standard.
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\38\ 16 CFR 432.2(b).
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Fourth, the Commission proposes updates to Sec. 432.4's
prohibition against using an ``asterisk'' to make disclosures required
under the Rule. The new proposal updates this language to similarly
prohibit the use of footnotes and other notations typically used to
obscure disclosures in advertising.\39\
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\39\ The prohibition against using an asterisk is currently
contained in Note 2 of Sec. 432.4. The Commission's proposed
amendments eliminate Note 2, as well as Note 1 addressing the font
style of certain disclosures, and move the substantive requirements
of these two Notes into the main text of Sec. 432.2(d) and Sec.
432.4(a) and (b).
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Finally, the Commission proposes formalizing its guidance regarding
how channels in a multichannel amplifier must be driven when measuring
power output under the FTC standard. The FTC standard requires all
``associated channels'' to be fully driven when measuring power output
of the amplifier.\40\ In 2010, the Commission found that ``associated
channels'' for multichannel systems include, at a minimum, the front-
left and front-right channels used for stereo programming, and issued
guidance stating that power output measurements that do not meet this
floor violate the Rule.\41\ While ANPR commenters proposed a variety of
alternative standards for driving multichannel amplifiers,\42\ and the
NPRM specifically solicited evidence regarding normal usage of
multichannel amplifiers,\43\ no commenters to either the ANPR or the
NPRM provided evidence regarding real-life use of multichannel systems.
Accordingly, considering the Commission's 2010 finding and in the
absence of any evidence supporting an alternative, the Commission
proposes to modify Sec. 432.2 to formalize its long-standing guidance
on ``associated channels'' for multichannel amplifiers--the front-left
and front-right channels used for stereo programming must be driven
simultaneously.\44\
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\40\ This requirement is currently in Sec. 432.2(a). The
proposed amendments consolidate this requirement with the other
standard test conditions in Sec. 432.3. See paragraph accompanying
fn. 37 supra.
\41\ The Commission based its guidance on the finding that
``[t]he left and right front channels of home theater multichannel
amplifiers are responsible for reproducing a substantial portion of
the musical soundtracks of movies, as well as a substantial portion
of the program content of music CDs and DVDs.'' 75 FR 3985, 3987
(Jan. 26, 2010).
\42\ Commenters to the ANPR proposed fully driving 2 channels,
fully driving 3 channels and partially driving the remaining
channels, and driving 5 channels at 70%, among other proposals. See,
e.g., Leo Nolan (ANPR 67); Gene DellaSala (ANPR 6); Jason Jenkins
(ANPR 70). In its response to the NPRM, CTA correctly observed that
none of the commenters supported their respective proposals with any
evidence of how channels are driven in typical use in the home. CTA
(NPRM 8).
\43\ 87 FR 45047, 45049--50 (July 27, 2022). As the Commission
stated in the prior 2000 proceeding to amend the Rule, ``[t]he
controlling consideration in determining the proper interpretation
of `associated channels' is whether audio/video receivers and
amplifiers would, when operated by consumers in the home at high
playback volume, be required to deliver full rated power output in
all channels simultaneously, or whether such maximum stress
conditions would more likely be restricted at any given moment of
time to certain sub-groupings of available channels.'' 65 FR 80798,
80800 (Dec. 22, 2000).
\44\ See infra proposed 16 CFR 432.3(h) (``Associated channels
for multichannel amplifiers shall include, at a minimum, the left
front and right front channels used for reproducing stereo
programming.'').
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IV. Request for Comments
The Commission seeks comments on all aspects of the proposed
requirements, including the likely effectiveness of the proposed Rule
amendments in helping the Commission combat unfair or deceptive
practices in the marketing of amplifiers utilized in home entertainment
equipment. In particular, the Commission seeks comments on each of the
modifications to its NPRM proposal. It also seeks comments on other
approaches to addressing unfair and deceptive practices, such as the
publication of additional consumer and business
[[Page 56785]]
education material. Commenters should provide any available evidence
and data that supports their position, such as empirical data, consumer
perception studies, and consumer complaints.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before October 20,
2023. Include ``Amplifier Rule Review; Project No. P974222'' on your
comment. Your comment, including your name and your state, will be
placed on the public record of this proceeding, including, to the
extent practicable, on the https://www.regulations.gov website.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we strongly encourage you
to submit your comments online through the https://www.regulations.gov
website. To ensure that the Commission considers your online comment,
please follow the instructions on the web-based form.
If you file your comment on paper, write ``Amplifier Rule Review;
Project No. P974222'' on your comment and on the envelope, and mail
your comment to the following address: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex A),
Washington, DC 20580. If possible, please submit your paper comment to
the Commission by overnight service.
Because your comment will be placed on the publicly accessible
website, https://www.regulations.gov, you are solely responsible for
making sure that your comment does not include any sensitive or
confidential information. In particular, your comment should not
include any sensitive personal information such as your or anyone's
Social Security number, date of birth, driver's license number or other
state identification number or foreign country equivalent, passport
number, financial account number, or credit or debit card number. You
are also solely responsible for making sure that your comment does not
include any sensitive health information, such as medical records or
other individually identifiable health information. In addition, your
comment should not include any ``[t]rade secret or any commercial or
financial information which . . . is privileged or confidential''--as
provided in section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2)--including, in particular, competitively
sensitive information such as costs, sales statistics, inventories,
formulas, patterns, devices, manufacturing processes, or customer
names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov--as legally required by FTC
Rule 4.9(b)--we cannot redact or remove your comment, unless you submit
a confidentiality request that meets the requirements for such
treatment under FTC Rule 4.9(c), and the General Counsel grants that
request.
Visit the FTC website to read this publication and the news release
describing it. The FTC Act and other laws that the Commission
administers permit the collection of public comments to consider and
use in this proceeding as appropriate. The Commission will consider all
timely and responsive public comments that it receives on or before
October 20, 2023. For information on the Commission's privacy policy,
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
V. Rulemaking Procedures
The Commission finds that using expedited procedures in this
rulemaking will serve the public interest. Expedited procedures will
support the Commission's goals of clarifying and updating existing
regulations without undue expenditure of resources, while ensuring that
the public has an opportunity to submit data, views, and arguments on
whether the Commission should amend the Rule. Pursuant to 16 CFR 1.20,
the Commission will use the following procedures: (1) publishing this
notice of proposed rulemaking; (2) soliciting written comments on the
Commission's proposals to amend the Rule; (3) holding an informal
hearing, if requested by interested parties; and (4) announcing final
Commission action in a document published in the Federal Register.
The Commission, in its discretion, has not chosen to schedule an
informal hearing and has not made any initial designations of disputed
issues of material fact necessary to be resolved at an informal
hearing. Interested persons who wish to make an oral submission at an
informal hearing must file a comment in response to this publication
and submit a statement identifying their interests in the proceeding
and describing any proposals regarding the designation of disputed
issues of material fact to be resolved at the informal hearing, on or
before October 20, 2023. 16 CFR 1.11. Such requests, and any other
motions or petitions in connection with this proceeding, must be filed
with the Secretary of the Commission.
VI. Preliminary Regulatory Analysis
Under Section 22 of the FTC Act, 15 U.S.C. 57b-3, the Commission
must issue a preliminary regulatory analysis for a proceeding to amend
a rule if the Commission: (1) estimates that the amendment will have an
annual effect on the national economy of $100 million or more; (2)
estimates that the amendment will cause a substantial change in the
cost or price of certain categories of goods or services; or (3)
otherwise determines that the amendment will have a significant effect
upon covered entities or upon consumers. The Commission has
preliminarily determined that the proposed amendments to the Rule will
not have such effects on the national economy, on the cost of sound
amplification equipment, or on covered businesses or consumers. In
developing these proposals, the Commission has sought to minimize
prescriptive requirements and provide flexibility to sellers in meeting
the Rule's objectives. The Commission, however, requests comment on the
economic effects of the proposed amendments.
VII. Regulatory Flexibility Act Requirements
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612,
requires that the Commission conduct an analysis of the anticipated
economic impact of the proposed amendment on small entities. The
purpose of a regulatory flexibility analysis is to ensure that an
agency considers potential impacts on small entities and examines
regulatory alternatives that could achieve the regulatory purpose while
minimizing burdens on small entities. The RFA requires that the
Commission provide an Initial Regulatory Flexibility Analysis
(``IRFA'') with a proposed rule and a Final Regulatory Flexibility
Analysis (``FRFA'') with a final rule, if any, unless the Commission
certifies that the rule will not have a significant economic impact on
a substantial number of small entities.
The Commission believes that the proposed amendment would not have
a
[[Page 56786]]
significant economic impact upon small entities, although it may affect
a substantial number of small businesses. Specifically, the proposed
change in the disclosure requirements should not significantly increase
the costs of small entities that manufacturer or import power
amplification equipment for use in the home. Therefore, based on
available information, the Commission certifies that amending the Rule
as proposed will not have a significant economic impact on a
substantial number of small businesses. Although the Commission
certifies under the RFA that the proposed amendment would not, if
promulgated, have a significant impact on a substantial number of small
entities, the Commission has determined, nonetheless, that it is
appropriate to publish an IRFA to inquire into the impact of the
proposed amendment on small entities. Therefore, the Commission has
prepared the following analysis:
A. Description of the Reasons That Action by the Agency Is Being Taken
The Commission proposes amending the Rule to standardize testing
parameters to assist consumers in understanding power output
disclosures for amplifiers and to eliminate claims regarding power
output that are likely to deceive consumers.
B. Statement of the Objectives of, and Legal Basis for, the Proposed
Amendment
The Commission promulgated the Rule pursuant to Section 18 of the
FTC Act, 15 U.S.C. 57a. The proposed amendment would standardize
testing parameters for amplifiers to prevent deceptive claims regarding
power output and assist consumers in understanding power output
disclosures.
C. Small Entities to Which the Proposed Amendments Will Apply
The Rule covers manufacturers and importers of power amplification
equipment for home use. Under the Small Business Size Standards issued
by the Small Business Administration, audio and video equipment
manufacturers qualify as small businesses if they have 750 or fewer
employees.\45\ The Commission's staff estimates that a substantial
number of the entities covered by the Rule likely qualify as small
businesses.
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\45\ U.S. Small Business Administration, Table of Size Standards
(Eff. Aug. 19, 2019).
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D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The Commission is proposing amendments designed to simplify the
Rule and provide clearer amplifier power output measurements for
consumers to use to compare products. While the amendments modify the
Rule's testing requirements, FTC staff does not anticipate that these
changes will result in higher costs for covered entities because
manufacturers already test power output for their amplifiers; in many
cases under the conditions specified by the proposed amendments.
E. Duplicative, Overlapping, or Conflicting Federal Rules
The Commission has not identified any other Federal statutes,
rules, or policies that would duplicate, overlap, or conflict with the
proposed amendment.
F. Significant Alternatives to the Proposed Amendment
The Commission has not proposed any specific small entity exemption
or other significant alternatives because the proposed amendment would
not impose any new requirements or compliance costs.
VIII. Paperwork Reduction Act
The current Rule contains various provisions that constitute
information collection requirements as defined by 5 CFR 1320.3(c), the
definitional provision within the Office of Management and Budget
(``OMB'') regulations implementing the Paperwork Reduction Act
(``PRA''). OMB has approved the Rule's existing information collection
requirements through April 30, 2024 (OMB Control No. 3084-0105). As
described above, the Commission is proposing amendments to simplify
power output measurements by standardizing test parameters. The
amendments do not change the frequency of the testing or disclosure
requirements specified under the Rule. Accordingly, FTC staff does not
anticipate this change will result in additional burden hours or higher
costs for manufacturers who already test power output for their
amplifiers, in many cases testing amplifiers under the conditions
specified by the proposed amendments. Therefore, the amendments do not
require further OMB clearance.
IX. Communications by Outside Parties to the Commissioners or Their
Advisors
Pursuant to FTC Rule 1.18(c)(1), the Commission has determined that
communications with respect to the merits of this proceeding from any
outside party to any Commissioner or Commissioner's advisor shall be
subject to the following treatment. Written communications and
summaries or transcripts of oral communications shall be placed on the
rulemaking record if the communication is received before the end of
the comment period. They shall be placed on the public record if the
communication is received later. Unless the outside party making an
oral communication is a member of Congress, such communications are
permitted only if advance notice is published in the Weekly Calendar
and Notice of ``Sunshine'' Meetings.\46\
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\46\ See 15 U.S.C. 57a(i)(2)(A); 16 CFR 1.18(c).
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List of Subjects in 16 CFR Part 432
Amplifiers, Home entertainment products, Trade practices.
For the reasons stated above, the Commission proposes to amend part
432 of title 16 of the Code of Federal Regulations as follows:
PART 432--POWER OUTPUT CLAIMS FOR AMPLIFIERS UTILIZED IN HOME
ENTERTAINMENT PRODUCTS
0
1. The authority citation for part 432 continues to read:
Authority: 38 Stat. 717, as amended; (15 U.S.C. 41-58).
0
2. Revise Sec. 432.2 to read as follows:
Sec. 432.2 Required disclosures.
Whenever any direct or indirect representation is made of the power
output, power band or power frequency response, or distortion
characteristics of sound power amplification equipment, the
manufacturer's rated power output shall be disclosed subject to the
following conditions:
(a) The rated power output is measured in compliance with the
standard test conditions in Sec. 432.3;
(b) The rated power output is disclosed clearly, conspicuously, and
more prominently than any other representations or disclosures
permitted under this part;
(c) The disclosure of the rated power output is clearly and
conspicuously labeled ``FTC Power Output Rating''; and
(d) The disclosures or representations required under this section
shall not be made by a footnote, asterisk, or similar notation.
0
3. Revise Sec. 432.3(e) and add paragraphs (g) and (h) to read as
follows:
Sec. 432.3 Standard test conditions.
* * * * *
(e) Any power level from 250 mW to the rated power shall be
obtainable at all
[[Page 56787]]
frequencies within the rated power band of 20 Hz to 20 kHz without
exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an
impedance of 8 ohms after input signals at said frequencies have been
continuously applied at full rated power for not less than five (5)
minutes at the amplifier's auxiliary input, or if not provided, at the
phono input. Provided, however, that for amplifiers utilized as a
component in a self-powered subwoofer in a self-powered subwoofer-
satellite speaker system that employs two or more amplifiers dedicated
to different portions of the audio frequency spectrum, any power level
from 250 mW to the rated power shall be obtainable at all frequencies
within the subwoofer amplifier's intended operating bandwidth without
exceeding 1.0% of total harmonic distortion plus noise (THD+N) at an
impedance of 8 ohms after input signals at said frequencies have been
continuously applied at full rated power for not less than five (5)
minutes at the amplifier's auxiliary input, or if not provided, at the
phono input.
* * * * *
(g) Rated power shall be minimum sine wave continuous average power
output, in watts, per channel (if the equipment is designed to amplify
two or more channels simultaneously), measured with all associated
channels fully driven to rated per channel power.
(h) Associated channels for multichannel amplifiers shall include,
at a minimum, the left front and right front channels used for
reproducing stereo programming. Provided, however, when measuring the
maximum per channel output of self-powered combination speaker systems
that employ two or more amplifiers dedicated to different portions of
the audio frequency spectrum, such as those incorporated into
combination subwoofer-satellite speaker systems, only those channels
dedicated to the same audio frequency spectrum should be considered
associated channels.
0
4. Revise Sec. 432.4 to read as follows:
Sec. 432.4 Optional disclosures.
Other operating characteristics and technical specifications not
required in Sec. 432.2 of this part may be disclosed. Provided that:
(a) Any other power output is rated by the manufacturer, expressed
in minimum watts per channel, and clearly and conspicuously labeled
``This rating does not meet the FTC standard'' without the use of a
footnote, asterisk, or similar notation to make the representation;
(b) All disclosures or representations made under this section are
less conspicuously, and prominently made than any rated power output
disclosure required in Sec. 432.2. Any disclosure or representation
bold faced or more than two-thirds the height of any rated power output
disclosure required in Sec. 432.2 is not less prominent; and
(c) The rating and testing methods or standards used in determining
such representations are well known and generally recognized by the
industry at the time the representations or disclosures are made, are
neither intended nor likely to deceive or confuse consumers, and are
not otherwise likely to frustrate the purpose of this part.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-16792 Filed 8-18-23; 8:45 am]
BILLING CODE 6750-01-P
