80 FR 71686 - Rules, Regulations, Statements of General Policy or Interpretation and Exemptions Under the Fair Packaging and Labeling Act
FEDERAL TRADE COMMISSION Federal Register Volume 80, Issue 221 (November 17, 2015)
Federal Register Volume 80, Issue 221 (November 17, 2015)
| Page Range | 71686-71689 | |
| FR Document | 2015-28918 |
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)] [Rules and Regulations] [Pages 71686-71689] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28918] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION 16 CFR Parts 500 and 502 RIN 3084-AB33 Rules, Regulations, Statements of General Policy or Interpretation and Exemptions Under the Fair Packaging and Labeling Act AGENCY: Federal Trade Commission (``FTC'' or ``Commission''). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Commission amends the rules and regulations promulgated under the Fair Packaging and Labeling Act (``Rules'') to: Modernize the place-of-business listing requirement; incorporate a more comprehensive metric chart; address the use of exponents with customary inch/pound measurements; delete outdated prohibitions on retail price sales representations; and acknowledge the role of the weights-and-measures laws of individual states. DATES: This rule is effective on December 17, 2015. The incorporation by reference of certain publications listed in the regulations is approved by the Director of the Federal Register as of December 17, 2015. ADDRESSES: Relevant portions of the proceeding, including this document, are available at the Commission's Web site, www.ftc.gov. FOR FURTHER INFORMATION CONTACT: Megan E. Gray, Attorney, (202) 326- 3408, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580. SUPPLEMENTARY INFORMATION: I. Introduction Congress enacted the Fair Packaging and Labeling Act, 15 U.S.C. 1451 et seq., (``FPLA'' or ``Act'') in 1966 to enable consumers to obtain accurate package quantity information to facilitate value comparisons and prevent unfair or deceptive packaging and labeling of ``consumer commodities.'' \1\ Pursuant to the FPLA, the Commission promulgated the Rules, which generally concern products consumed during household use. However, several categories of these products are exempt from FTC regulations under the FPLA.\2\ Moreover, the FTC has excluded certain others from the Rules.\3\ --------------------------------------------------------------------------- \1\ Consumer commodities are any food, device, or cosmetic, and any other article, product, or commodity that is customarily produced or distributed for sale through retail sales agencies or instrumentalities for consumption or use by individuals for purposes of personal care or in the performance of services ordinarily rendered within the household, and which usually is consumed or expended in the course of such consumption or use. 15 U.S.C. 1459(a). The Food and Drug Administration (``FDA'') administers the FPLA with respect to food, drugs, cosmetics, and medical devices. 15 U.S.C. 1454(a); 15 U.S.C. 1456(a). \2\ 15 U.S.C. 1459(a)(1-5) (excluding, among other products, specified categories of meat, poultry, tobacco, insecticide, fungicide, drug, alcohol, and seed products). \3\ 16 CFR 503.2, 503.5. Many products outside the scope of the FPLA and the Rules nevertheless fall within the purview of individual state laws. 15 U.S.C. 1461. See also National Institute of Standards and Technology Handbook 130, Uniform Laws and Regulations in the areas of legal metrology and engine fuel quality (2015 ed.) (compilation of state and federal laws and regulations pertaining to product labeling and packaging). --------------------------------------------------------------------------- Section 1453 of the Act directs the Commission to issue regulations requiring that all ``consumer commodities'' be labeled to disclose: (a) The identity of the commodity (e.g., detergent, sponges), which must appear on the principal display panel of the commodity in conspicuous type and position so that identity is easy to read and understand; \4\ (b) the name and place of business of the product's manufacturer, packer, or distributor; \5\ and (c) the net quantity of contents in terms of weight, measure, or numerical count, with such disclosure's placement and content in accordance with the Rules.\6\ The Rules detail how units of weight or mass and measure must be stated, and require use of both U.S. (e.g., pounds, feet, and gallons) and metric measures.\7\ The Rules also require net quantity disclosures for packages containing more than one product or unit, including: (a) ``multi-unit packages''; \8\ (b) ``variety packages''; \9\ and (c) ``combination packages.'' \10\ --------------------------------------------------------------------------- \4\ 16 CFR 500.4. \5\ 16 CFR 500.5. \6\ 16 CFR 500.6(b). The Office of Weights and Measures of the National Institute of Standards and Technology, U.S. Department of Commerce, is authorized to promote, to the greatest practical extent, uniformity in state and federal regulation of the labeling of consumer commodities. 15 U.S.C. 1458(a)(2). \7\ Congress amended the FPLA in 1992 to require use of metric measurements, in addition to customary inch/pound measures. Pub. L. 102-245 (February 14, 1992); Pub. L. 102-329 (August 3, 1992). In 1994, the FTC modified its regulations accordingly. 59 FR 1872 (Jan. 12, 1994). \8\ 16 CFR 500.27. \9\ 16 CFR 500.28. \10\ 16 CFR 500.29. --------------------------------------------------------------------------- In addition, the Act grants the FTC authority to issue rules to prevent consumer deception and facilitate value comparisons.\11\ The FTC has used this authority to address three types of representations: ``cents-off,'' \12\ ``introductory offer,'' \13\ and ``economy size.'' \14\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 1454(c). This discretionary authority enables the FTC to address four situations: (1) Setting standards for characterizing package sizes to supplement the net quantity statement (e.g., establishing a uniform size for a single sheet of toilet paper); (2) regulating packaging that claims a product price is lower than its customary retail price; (3) requiring labels to use common names or listing ingredients in order of decreasing prominence; and (4) preventing nonfunctional slack-fill. 15 U.S.C. 1454(c). \12\ A cents-off representation is one in which ``cents-off'' or a similar term is used to indicate that the consumer commodity is being offered for sale at a price lower than the ordinary and customary retail price. 16 CFR 502.100. \13\ An introductory offer is one in which ``introductory offer'' or a similar phrase is used to indicate that the consumer commodity is being offered for sale at a price lower than the ordinary and customary retail price. 16 CFR 502.101. The Rules prohibit introductory offers in a trade area for a duration in excess of six months. 16 CFR 502.101(b)(3). \14\ An economy size representation is one in which ``economy size'' or similar phrase is used to indicate that the consumer commodity has a retail sale price advantage due to the size of that package or the quantity of its contents. 16 CFR 502.102. --------------------------------------------------------------------------- As part of its ongoing regulatory review program, the Commission published an Advance Notice of Proposed Rulemaking (``ANPR'') in March 2014 seeking comment on the economic impact of, and the continuing need for, the Rules; the benefits of the [[Page 71687]] Rules to consumers; and any burdens the Rules place on businesses.\15\ --------------------------------------------------------------------------- \15\ 79 FR 15272 (March 19, 2014). --------------------------------------------------------------------------- In response, the Commission received fifteen comments. Based on these comments, the Commission issued a Notice of Proposed Rulemaking (``NPRM'') on February 2, 2015, proposing several amendments to modernize the place-of-business listing requirement, incorporate a more comprehensive metric chart, address the use of exponents with customary inch/pound measurements, delete prohibitions on certain retail price sale representations, and acknowledge the role of weights-and-measures laws of individual states.\16\ --------------------------------------------------------------------------- \16\ 80 FR 5491 (February 2, 2015). --------------------------------------------------------------------------- The Commission received nine comments in response to the NPRM, one from a nonprofit association representing officials and consumers affected by the Rules and eight from individuals.\17\ The nonprofit association approved of the Commission's proposals.\18\ One individual approved of the Commission's proposal to modernize the place-of- business listing requirement and acknowledge the role of weights-and measures of individual states; he also suggested the Commission amend Section 500.5(b) to delete the Rules' ``actual corporate name'' requirement, as well as amend the Rules to acknowledge that FDA labeling rules could be relevant to an entity's FPLA compliance and that the FDA has not finalized its proposal to permit metric measurements.\19\ One individual approved of the Commission's proposal to modernize the place-of-business listing requirement; she did not address the Commission's other proposals.\20\ Six individuals discussed extraneous topics not material to this rulemaking.\21\ --------------------------------------------------------------------------- \17\ The Commission posted the comments at https://www.ftc.gov/policy/public-comments/initiative-599. Each comment has a number correlating to the date of submission. This notice cites comments using the last name of the individual submitter or the name of the organization, followed by that number. \18\ Packaging and Labeling Subcommittee of the National Conference on Weights and Measures (``NCWM'') (1). \19\ Schindler (3). \20\ Lynn (5). \21\ Willey (2), Signer (4), Nagpal (6), Gordon (7), Vita (8), Anonymous (9). For example, Gordon (7) commented on labels for genetically modified foods. --------------------------------------------------------------------------- II. Procedures for Promulgating Regulations Under FPLA Commission Rule 1.26 sets forth the procedures for promulgation of rules under authority other than section 18(a)(1)(B) of the FTC Act; it governs these FPLA amendments.\22\ The effective date of any regulations issued under the FPLA will not be prior to 30 days after publication in the Federal Register.\23\ --------------------------------------------------------------------------- \22\ 16 CFR 1.26(f). \23\ 16 CFR 1.26(f). --------------------------------------------------------------------------- III. Amendments Based on its consideration of the record, the Commission amends the Rules as explained below. A. Modernize the Place-of-Business Listing Requirement Currently, the Rules require a label to conspicuously state the name and place of business of the manufacturer, packer, or distributor and further specify that the place of business statement contain the street address, city, state, and ZIP code. The street address, however, may be omitted if it is listed in a current city or telephone directory.\24\ The Commission proposed revising this exception to permit a business to omit the street address if it is listed in any readily accessible, well-known, widely published, and publicly available resource, including but not limited to a printed directory, electronic database, or Web site. The inclusion of ``any readily accessible, widely published, and publicly available resource'' in the exception provides flexibility and is intended to encompass new technologies that meet these requirements. --------------------------------------------------------------------------- \24\ 16 CFR 500.5(a)-(e). The Act itself requires the label to include the place of business, but does not specify to what level of detail. 15 U.S.C. 1453(a)(1). --------------------------------------------------------------------------- All the comments addressing this proposal supported it.\25\ One individual suggested that the Commission delete the requirement that certain business entities use their ``actual corporate name'' (as opposed to their fictitious or doing-business-as name). However, he acknowledged that the requirement did not burden business and he did not demonstrate any benefit associated with his suggested amendment.\26\ Accordingly, the Commission adopts its proposed amendment without change. --------------------------------------------------------------------------- \25\ NCWM (1), Schindler (3), Lynn (5). \26\ Schindler (3). --------------------------------------------------------------------------- B. Incorporate a More Comprehensive Metric Chart Section 500.19(a) currently contains an incomplete metric conversion chart that fails to list possible, albeit uncommon, conversion factors that a packager might use, such as weight expressed in grain, or length expressed in rods. The Commission proposed to correct this omission by deleting the current chart and incorporating by reference the complete metric conversion chart published in National Institute of Standards and Technology (NIST) Handbook 133, Checking the Net Contents of Packaged Goods (2015 ed., Exhibit E, pgs. 135-157).\27\ Members of the public can access the Handbook online at NIST's Web site, www.NIST.gov. --------------------------------------------------------------------------- \27\ The NPRM proposed to incorporate a metric conversion chart from NIST Handbook 130, but the Final Rule incorporates the metric conversion chart from NIST Handbook 133. NIST Handbook 133's metric conversion chart is consistent with the table provided in NIST Handbook 130, but provides a more comprehensive listing of metric conversion factors. This revision does not change the obligations of entities subject to the Rules. Therefore, pursuant to the Administrative Procedure Act, the Commission finds ``good cause'' for foregoing additional public comment because this change is merely ministerial and further public comment is ``unnecessary.'' 5 U.S.C. 553(b)(3)(B). --------------------------------------------------------------------------- The only comment addressing this proposal approved its adoption.\28\ Accordingly, the Commission adopts this proposed amendment without change for the reasons explained in the NPRM. --------------------------------------------------------------------------- \28\ NCWM (1). --------------------------------------------------------------------------- C. Address the Use of Exponents With Customary Inch/Pound Measurements In the current rule (Section 500.22), exponents are not listed for customary inch/pound measurements, but are included in the metric examples listed in Section 500.23(b) (e.g., cubic centimeter--cm\3\). Because exponents are not listed in the customary inch/pound measurements, affected businesses might think they are not permitted, although they are common in the marketplace and historically sanctioned by the Office of Weights and Measures of the National Institute of Standards and Technology, U.S. Department of Commerce, which is authorized to promote uniformity in labeling regulations.\29\ Therefore, the Commission proposed to clarify the Rules to expressly permit exponents with customary inch/pound measurements (e.g., cubic inches--in\3\). --------------------------------------------------------------------------- \29\ NCWM (1). --------------------------------------------------------------------------- The only comment addressing this proposal approved its adoption.\30\ Accordingly, the Commission adopts this proposed amendment without change. --------------------------------------------------------------------------- \30\ NCWM (1). --------------------------------------------------------------------------- D. Delete Prohibitions on Certain Retail Price Sales Representations The Commission proposed to eliminate sections addressing when and how a packager or labeler represents a commodity to be ``cents off,'' an ``introductory offer,'' or ``economy size.'' \31\ The Commission originally [[Page 71688]] promulgated these provisions to curtail certain price representations that were commonly used in a deceptive manner during the 1960s and 1970s. However, these representations are now rarely seen in the modern marketplace. Indeed, they have been absent for some time.\32\ Should they re-appear, the Commission has other tools at its disposal to ensure they are not used deceptively. --------------------------------------------------------------------------- \31\ 15 U.S.C. 1454(c)(2). \32\ In 1997, the U.S. Food and Drug Administration revoked similar regulations for ``cents off'' and economy size representations, on the grounds that such representations were no longer used in the marketplace. 62 FR 39439 (1997). --------------------------------------------------------------------------- The only comment addressing this proposal approved its adoption.\33\ Accordingly, the Commission adopts this proposed amendment without change. --------------------------------------------------------------------------- \33\ NCWM (1). --------------------------------------------------------------------------- E. Acknowledge the Role of Weights-and-Measures Laws of Individual States Many products outside the Commission's FPLA purview fall within the purview of weights-and-measures laws of individual states; amending the Rules to acknowledge the state role would aid compliance efforts by alerting businesses that state laws may apply. Therefore, the Commission proposed to amend the Rules to state ``[m]any products exempted through proceedings under section 5(b) of the Act and section 500.3(e) of this chapter or excluded under part 503 of this chapter nonetheless fall within the purview of the weights-and-measures laws of individual states.'' The two comments addressing this proposal approved its adoption.\34\ One, however, favored further clarification to indicate that FDA also has a role in FPLA regulation, but did not provide any indication that entities were unfamiliar with this fact. Accordingly, the Commission adopts this proposed amendment without change. --------------------------------------------------------------------------- \34\ NCWM (1), Schindler (3). --------------------------------------------------------------------------- IV. Paperwork Reduction Act The Rules contain various existing information collection requirements for which the Commission has obtained OMB clearance under the Paperwork Reduction Act (``PRA'').\35\ Because the amendments do not trigger additional recordkeeping, disclosure, or reporting requirements, there is no incremental burden under the PRA. See 44 U.S.C. 3501-3521. None of the comments disputed the PRA analysis in the NPRM. --------------------------------------------------------------------------- \35\ 44 U.S.C. 3501 et seq. On April 6, 2015, OMB granted clearance through April 30, 2018, for these requirements and the associated PRA burden estimates. The OMB control number is 3084- 0110. --------------------------------------------------------------------------- V. Regulatory Flexibility Act The Regulatory Flexibility Act (``RFA'') \36\ requires the Commission to conduct an initial and final analysis of the anticipated economic impact of the amendments on small entities.\37\ The purpose of a regulatory flexibility analysis is to ensure the agency considers the impacts on small entities and examines regulatory alternatives that could achieve the regulatory purpose while minimizing burdens on small entities. Section 605 of the RFA \38\ provides that such an analysis is not required if the agency head certifies that the regulatory action will not have a significant economic impact on a substantial number of small entities. --------------------------------------------------------------------------- \36\ 5 U.S.C. 601-612. \37\ The Commission previously conducted an RFA analysis of the Rules. 59 FR 1862 (Jan. 12, 1994). \38\ 5 U.S.C. 605. --------------------------------------------------------------------------- The Commission believes the amendments will not have a significant economic impact on small entities, although they may affect a substantial number of small businesses. The amendments expand labeling options to accommodate the rise of online media, remove unnecessary price statement prohibitions, or are technical in nature. In the Commission's view, the amendments will not have a significant or disproportionate impact on the costs small entities incur in manufacturing, distributing, or selling consumer commodities. Indeed, the Rule revisions provide increased flexibility for companies complying with the Rules. Therefore, the Commission certifies that amending the Rules will not have a significant economic impact on a substantial number of small businesses. Although the Commission certifies under the RFA that the amendments will not have a significant impact on a substantial number of small entities, the Commission nonetheless has determined it is appropriate to publish a final regulatory flexibility analysis to ensure the impact of the amendments on small entities is fully addressed. Therefore, the Commission prepared the following analysis: A. Need for and Objective of the Amendments The objective of the amendments is to clarify and update the Rules in accordance with marketplace practices. The Act authorizes the Commission to implement its requirements through the issuance of rules. The amendments clarify and update the Rules, and provide covered entities with additional labeling options without imposing significant new burdens or additional costs. B. Significant Issues Raised in Public Comments In the NPRM's initial regulatory flexibility analysis, the Commission concluded that the proposed amendments would not have a significant or disproportionate economic impact (including compliance costs) on small entities that produce consumer commodities other than those commodities falling within the authority of other agencies or otherwise outside the Act's or Rules' scope. None of the comments disputed the initial regulatory flexibility analysis. The Commission did not receive any comments from the Small Business Administration. C. Small Entities to Which the Amendments Will Apply The amendments cover every company in the economy that produces consumer commodities other than those commodities falling within the authority of other agencies or otherwise outside the Act's or Rules' scope. Based on available information, it is not feasible for the Commission to estimate the number of entities within this class of industry that are also small companies within the meaning of the Regulatory Flexibility Act.\39\ A substantial number of these entities likely qualify as small businesses. Nevertheless, the Commission estimates that the amendments will not have a significant impact on small businesses because the amendments do not impose any significant new obligations. The Commission sought, but did not receive, comment with regard to the estimated number or nature of small business entities, if any, for which the amendments would have a significant impact. --------------------------------------------------------------------------- \39\ 5 U.S.C. 601(3). --------------------------------------------------------------------------- D. Projected Reporting, Recordkeeping, and Other Compliance Requirements, Including Classes of Covered Small Entities and Professional Skills Needed To Comply As explained earlier in this document, the amendments expand labeling options to accommodate the rise of online media, remove unnecessary price statement prohibitions, or are technical in nature. The small entities potentially covered by these amendments will include all such entities subject to the Rules. The professional skills necessary for compliance with the Rules as modified by the amendments will include office and administrative support supervisors to determine label content and clerical personnel to draft and obtain labels and keep records. [[Page 71689]] E. Significant Alternatives to the Amendments The Commission has not proposed any specific small entity exemption or other significant alternatives, because the amendments expand labeling options to accommodate the rise of online media, remove unnecessary price statement prohibitions, or are technical in nature. In addition, these changes provide new flexibilities for small entitities by, for example, allowing regulated entities to omit a business address from a label if the address is readily available in an online directory or other Web site. Under these limited circumstances, the Commission does not believe a special exemption for small entities or significant compliance alternatives are necessary or appropriate to minimize the compliance burden, if any, on small entities while achieving the intended purposes of the proposed amendments. Nonetheless, the Commission sought, but did not receive, comments on the need, if any, for alternative compliance methods to reduce the economic impact of the Rules on small entities. None of the comments addressed the Regulatory Flexibility Act analysis in the NPRM. VI. Incorporation by Reference Consistent with 1 CFR part 51, the Commission is incorporating the complete metric conversion chart published in the National Institute of Standards and Technology (NIST) Handbook 133, Checking the Contents of Packaged Goods (2015 ed., Exhibit E, pgs. 135-157), as described in Section III.B above. The metric conversion chart provides a complete and up-to-date list of metric conversion factors for packagers. The metric conversion chart is reasonably available to interested parties. Members of the public can access the metric conversion chart online at NIST's Web site, NIST.gov. List of Subjects in 16 CFR Parts 500 and 502 Fair Packaging and Labeling Act, Incorporation by reference, Labeling, Packaging and containers, Trade practices. Under 15 U.S.C. 1454-1455 and as discussed in the preamble, the Federal Trade Commission amends title 16 of the Code of Federal Regulations by amending parts 500 and 502 as follows: PART 500--REGULATIONS UNDER SECTION 4 OF THE FAIR PACKAGING AND LABELING ACT 0 1. The authority citation for part 500 continues to read as follows: Authority: 15 U.S.C. 1453, 1454, 1455. 0 2. In Sec. 500.3, revise paragraph (d) to read as follows: Sec. 500.3 Prohibited acts, coverage, general labeling requirements, exemption procedures. * * * * * (d) Each packaged or labeled consumer commodity, unless it has been exempted through proceedings under section 5(b) of the Act, shall bear a label specifying the identity of the commodity; the name and place of business of the manufacturer, packer, or distributor; the net quantity of contents; and the net quantity per serving, use or application, where there is a label representation as to the number of servings, uses, or applications obtainable from the commodity. Many products exempted through proceedings under section 5(b) of the Act and section 500.3(e) of this chapter or excluded under part 503 of this chapter nonetheless fall within the purview of the weights-and-measures laws of the individual states. * * * * * 0 3. Revise Sec. 500.5(c) to read as follows: Sec. 500.5 Name and place of business of manufacturer, packer or distributor. * * * * * (c) The statement of the place of business shall include the street address, city, state, and zip code; however, the street address may be omitted if it is listed in a readily accessible, widely published, and publicly available resource, including but not limited to a printed directory, electronic database, or Web site. * * * * * 0 4. In Sec. 500.19, revise paragraph (a) to read as follows: Sec. 500.19 Conversion of SI metric quantities to inch/pound quantities and inch/pound quantities to SI metric quantities. (a) For calculating the conversion of SI metric quantities to and from customary inch/pound quantities, the conversion chart published in the following handbook shall be employed: National Institute of Standards and Technology (NIST) Handbook 133, Checking the Net Contents of Packaged Goods, Appendix E--General Tables of Units of Measurements, 2015 Edition, adopted November 2014. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. You may obtain a copy of NIST Handbook 133 at the National Institute of Standards and Technology's Web site, http://www.nist.gov/pml/wmd/pubs/hb133.cfm. You may inspect a copy at FTC Library, (202) 326-2395, Federal Trade Commission, Room H- 630, 600 Pennsylvania Avenue NW., Washington, DC 20580, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html. * * * * * 0 5. Revise Sec. 500.22 to read as follows: Sec. 500.22 Abbreviations. The following abbreviations and none other may be employed in the required net quantity declaration: Inch--in. Feet or foot--ft. Fluid--fl. Liquid--liq. Ounce--oz. Gallon--gal. Pint--pt. Pound--lb. Quart--qt. Square--sq. Weight--wt. Yard--yd. Avoirdupois--avdp. Cubic--cu. Note: Periods and plural forms shall be optional. Exponents are permitted. PART 502--REGULATIONS UNDER SECTION 5(C) OF THE FAIR PACKAGING AND LABELING ACT 0 6. The authority citation for part 502 is revised to read as follows: Authority: 15 U.S.C. 1454, 1455. Sec. Sec. 502.100, 502.101, and 502.102 [Removed and Reserved] 0 7. Remove and reserve Sec. Sec. 502.100, 500.101, and 502.102. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2015-28918 Filed 11-16-15; 8:45 am] BILLING CODE 6750-01-P
![71686 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Rules and Regulations
(k) Material Incorporated by Reference listed in the regulations is approved by and (c) the net quantity of contents in
(1) The Director of the Federal Register the Director of the Federal Register as of terms of weight, measure, or numerical
approved the incorporation by reference December 17, 2015. count, with such disclosure’s placement
(IBR) of the service information listed in this ADDRESSES: Relevant portions of the and content in accordance with the
paragraph under 5 U.S.C. 552(a) and 1 CFR proceeding, including this document, Rules.6 The Rules detail how units of
part 51. are available at the Commission’s Web weight or mass and measure must be
(2) You must use this service information
as applicable to do the actions required by
site, www.ftc.gov. stated, and require use of both U.S. (e.g.,
this AD, unless this AD specifies otherwise. FOR FURTHER INFORMATION CONTACT: pounds, feet, and gallons) and metric
(i) Bombardier, Inc. Service Bulletin 100– Megan E. Gray, Attorney, (202) 326– measures.7 The Rules also require net
24–24, dated June 6, 2014. 3408, Division of Enforcement, Bureau quantity disclosures for packages
(ii) Reserved. of Consumer Protection, Federal Trade containing more than one product or
(3) For service information identified in Commission, 600 Pennsylvania Avenue unit, including: (a) ‘‘multi-unit
this AD, contact Bombardier, Inc., 400 Côte- NW., Washington, DC 20580. packages’’; 8 (b) ‘‘variety packages’’; 9
Vertu Road West, Dorval, Québec H4S 1Y9,
Canada; telephone: 514–855–5000; fax: 514–
SUPPLEMENTARY INFORMATION: and (c) ‘‘combination packages.’’ 10
855–7401; email: thd.crj@ I. Introduction In addition, the Act grants the FTC
aero.bombardier.com; Internet http:// authority to issue rules to prevent
www.bombardier.com. Congress enacted the Fair Packaging
and Labeling Act, 15 U.S.C. 1451 et seq., consumer deception and facilitate value
(4) You may view this service information comparisons.11 The FTC has used this
at the FAA, Transport Airplane Directorate, (‘‘FPLA’’ or ‘‘Act’’) in 1966 to enable
1601 Lind Avenue SW., Renton, WA. For consumers to obtain accurate package authority to address three types of
information on the availability of this quantity information to facilitate value representations: ‘‘cents-off,’’ 12
material at the FAA, call 425–227–1221. comparisons and prevent unfair or ‘‘introductory offer,’’ 13 and ‘‘economy
(5) You may view this service information deceptive packaging and labeling of size.’’ 14
that is incorporated by reference at the ‘‘consumer commodities.’’ 1 Pursuant to As part of its ongoing regulatory
National Archives and Records the FPLA, the Commission promulgated
Administration (NARA). For information on
review program, the Commission
the availability of this material at NARA, call
the Rules, which generally concern published an Advance Notice of
202–741–6030, or go to: http:// products consumed during household Proposed Rulemaking (‘‘ANPR’’) in
www.archives.gov/federal-register/cfr/ibr- use. However, several categories of these March 2014 seeking comment on the
locations.html. products are exempt from FTC economic impact of, and the continuing
regulations under the FPLA.2 Moreover, need for, the Rules; the benefits of the
Issued in Renton, Washington, on October
30, 2015. the FTC has excluded certain others
from the Rules.3 6 16 CFR 500.6(b). The Office of Weights and
Michael Kaszycki,
Section 1453 of the Act directs the Measures of the National Institute of Standards and
Acting Manager, Transport Airplane Commission to issue regulations Technology, U.S. Department of Commerce, is
Directorate, Aircraft Certification Service. authorized to promote, to the greatest practical
requiring that all ‘‘consumer
[FR Doc. 2015–28822 Filed 11–16–15; 8:45 am] extent, uniformity in state and federal regulation of
commodities’’ be labeled to disclose: (a) the labeling of consumer commodities. 15 U.S.C.
BILLING CODE 4910–13–P The identity of the commodity (e.g., 1458(a)(2).
detergent, sponges), which must appear 7 Congress amended the FPLA in 1992 to require
on the principal display panel of the use of metric measurements, in addition to
FEDERAL TRADE COMMISSION commodity in conspicuous type and customary inch/pound measures. Pub. L. 102–245
(February 14, 1992); Pub. L. 102–329 (August 3,
position so that identity is easy to read 1992). In 1994, the FTC modified its regulations
16 CFR Parts 500 and 502 and understand; 4 (b) the name and accordingly. 59 FR 1872 (Jan. 12, 1994).
RIN 3084–AB33 place of business of the product’s 8 16 CFR 500.27.
manufacturer, packer, or distributor; 5 9 16 CFR 500.28.
10 16 CFR 500.29.
Rules, Regulations, Statements of
11 15 U.S.C. 1454(c). This discretionary authority
General Policy or Interpretation and 1 Consumer commodities are any food, device, or
cosmetic, and any other article, product, or enables the FTC to address four situations: (1)
Exemptions Under the Fair Packaging Setting standards for characterizing package sizes to
commodity that is customarily produced or
and Labeling Act distributed for sale through retail sales agencies or supplement the net quantity statement (e.g.,
instrumentalities for consumption or use by establishing a uniform size for a single sheet of
AGENCY: Federal Trade Commission individuals for purposes of personal care or in the toilet paper); (2) regulating packaging that claims a
(‘‘FTC’’ or ‘‘Commission’’). performance of services ordinarily rendered within product price is lower than its customary retail
ACTION: Final rule. the household, and which usually is consumed or price; (3) requiring labels to use common names or
expended in the course of such consumption or use. listing ingredients in order of decreasing
15 U.S.C. 1459(a). The Food and Drug prominence; and (4) preventing nonfunctional
SUMMARY: The Commission amends the slack-fill. 15 U.S.C. 1454(c).
Administration (‘‘FDA’’) administers the FPLA with
rules and regulations promulgated respect to food, drugs, cosmetics, and medical 12 A cents-off representation is one in which
under the Fair Packaging and Labeling devices. 15 U.S.C. 1454(a); 15 U.S.C. 1456(a). ‘‘cents-off’’ or a similar term is used to indicate that
Act (‘‘Rules’’) to: Modernize the place- 2 15 U.S.C. 1459(a)(1–5) (excluding, among other the consumer commodity is being offered for sale
of-business listing requirement; products, specified categories of meat, poultry, at a price lower than the ordinary and customary
tobacco, insecticide, fungicide, drug, alcohol, and retail price. 16 CFR 502.100.
incorporate a more comprehensive seed products). 13 An introductory offer is one in which
metric chart; address the use of 3 16 CFR 503.2, 503.5. Many products outside the ‘‘introductory offer’’ or a similar phrase is used to
exponents with customary inch/pound scope of the FPLA and the Rules nevertheless fall indicate that the consumer commodity is being
measurements; delete outdated within the purview of individual state laws. 15 offered for sale at a price lower than the ordinary
U.S.C. 1461. See also National Institute of and customary retail price. 16 CFR 502.101. The
prohibitions on retail price sales
wgreen on DSK2VPTVN1PROD with RULES
Standards and Technology Handbook 130, Uniform Rules prohibit introductory offers in a trade area for
representations; and acknowledge the Laws and Regulations in the areas of legal a duration in excess of six months. 16 CFR
role of the weights-and-measures laws metrology and engine fuel quality (2015 ed.) 502.101(b)(3).
of individual states. (compilation of state and federal laws and 14 An economy size representation is one in
regulations pertaining to product labeling and which ‘‘economy size’’ or similar phrase is used to
DATES: This rule is effective on packaging). indicate that the consumer commodity has a retail
December 17, 2015. The incorporation 4 16 CFR 500.4.
sale price advantage due to the size of that package
by reference of certain publications 5 16 CFR 500.5. or the quantity of its contents. 16 CFR 502.102.
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![71688 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Rules and Regulations
promulgated these provisions to curtail V. Regulatory Flexibility Act B. Significant Issues Raised in Public
certain price representations that were The Regulatory Flexibility Act Comments
commonly used in a deceptive manner (‘‘RFA’’) 36 requires the Commission to In the NPRM’s initial regulatory
during the 1960s and 1970s. However, conduct an initial and final analysis of flexibility analysis, the Commission
these representations are now rarely the anticipated economic impact of the concluded that the proposed
seen in the modern marketplace. amendments on small entities.37 The amendments would not have a
Indeed, they have been absent for some purpose of a regulatory flexibility significant or disproportionate
time.32 Should they re-appear, the analysis is to ensure the agency economic impact (including compliance
Commission has other tools at its considers the impacts on small entities costs) on small entities that produce
disposal to ensure they are not used and examines regulatory alternatives consumer commodities other than those
deceptively. that could achieve the regulatory commodities falling within the
The only comment addressing this purpose while minimizing burdens on authority of other agencies or otherwise
proposal approved its adoption.33 small entities. Section 605 of the RFA 38 outside the Act’s or Rules’ scope. None
Accordingly, the Commission adopts provides that such an analysis is not of the comments disputed the initial
this proposed amendment without required if the agency head certifies that regulatory flexibility analysis. The
change. the regulatory action will not have a Commission did not receive any
significant economic impact on a comments from the Small Business
E. Acknowledge the Role of Weights- substantial number of small entities. Administration.
and-Measures Laws of Individual States The Commission believes the
amendments will not have a significant C. Small Entities to Which the
Many products outside the Amendments Will Apply
Commission’s FPLA purview fall within economic impact on small entities,
although they may affect a substantial The amendments cover every
the purview of weights-and-measures
number of small businesses. The company in the economy that produces
laws of individual states; amending the
amendments expand labeling options to consumer commodities other than those
Rules to acknowledge the state role
accommodate the rise of online media, commodities falling within the
would aid compliance efforts by alerting
remove unnecessary price statement authority of other agencies or otherwise
businesses that state laws may apply.
prohibitions, or are technical in nature. outside the Act’s or Rules’ scope. Based
Therefore, the Commission proposed to
In the Commission’s view, the on available information, it is not
amend the Rules to state ‘‘[m]any
amendments will not have a significant feasible for the Commission to estimate
products exempted through proceedings
or disproportionate impact on the costs the number of entities within this class
under section 5(b) of the Act and section
small entities incur in manufacturing, of industry that are also small
500.3(e) of this chapter or excluded companies within the meaning of the
distributing, or selling consumer
under part 503 of this chapter Regulatory Flexibility Act.39 A
commodities. Indeed, the Rule revisions
nonetheless fall within the purview of substantial number of these entities
provide increased flexibility for
the weights-and-measures laws of likely qualify as small businesses.
companies complying with the Rules.
individual states.’’ Nevertheless, the Commission estimates
Therefore, the Commission certifies that
The two comments addressing this amending the Rules will not have a that the amendments will not have a
proposal approved its adoption.34 One, significant economic impact on a significant impact on small businesses
however, favored further clarification to substantial number of small businesses. because the amendments do not impose
indicate that FDA also has a role in Although the Commission certifies any significant new obligations. The
FPLA regulation, but did not provide under the RFA that the amendments Commission sought, but did not receive,
any indication that entities were will not have a significant impact on a comment with regard to the estimated
unfamiliar with this fact. Accordingly, substantial number of small entities, the number or nature of small business
the Commission adopts this proposed Commission nonetheless has entities, if any, for which the
amendment without change. determined it is appropriate to publish amendments would have a significant
IV. Paperwork Reduction Act a final regulatory flexibility analysis to impact.
ensure the impact of the amendments D. Projected Reporting, Recordkeeping,
The Rules contain various existing on small entities is fully addressed. and Other Compliance Requirements,
information collection requirements for Therefore, the Commission prepared the Including Classes of Covered Small
which the Commission has obtained following analysis: Entities and Professional Skills Needed
OMB clearance under the Paperwork To Comply
A. Need for and Objective of the
Reduction Act (‘‘PRA’’).35 Because the
Amendments As explained earlier in this document,
amendments do not trigger additional
recordkeeping, disclosure, or reporting The objective of the amendments is to the amendments expand labeling
requirements, there is no incremental clarify and update the Rules in options to accommodate the rise of
burden under the PRA. See 44 U.S.C. accordance with marketplace practices. online media, remove unnecessary price
3501–3521. None of the comments The Act authorizes the Commission to statement prohibitions, or are technical
disputed the PRA analysis in the NPRM. implement its requirements through the in nature. The small entities potentially
issuance of rules. The amendments covered by these amendments will
32 In 1997, the U.S. Food and Drug clarify and update the Rules, and include all such entities subject to the
Administration revoked similar regulations for provide covered entities with additional Rules. The professional skills necessary
‘‘cents off’’ and economy size representations, on labeling options without imposing for compliance with the Rules as
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the grounds that such representations were no
significant new burdens or additional modified by the amendments will
longer used in the marketplace. 62 FR 39439 (1997). include office and administrative
33 NCWM (1). costs.
34 NCWM (1), Schindler (3).
support supervisors to determine label
35 44 U.S.C. 3501 et seq. On April 6, 2015, OMB 36 5 U.S.C. 601–612. content and clerical personnel to draft
granted clearance through April 30, 2018, for these 37 The Commission previously conducted an RFA and obtain labels and keep records.
requirements and the associated PRA burden analysis of the Rules. 59 FR 1862 (Jan. 12, 1994).
estimates. The OMB control number is 3084–0110. 38 5 U.S.C. 605. 39 5 U.S.C. 601(3).
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![Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Rules and Regulations 71689
E. Significant Alternatives to the PART 500—REGULATIONS UNDER approved by the Director of the Federal
Amendments SECTION 4 OF THE FAIR PACKAGING Register in accordance with 5 U.S.C.
AND LABELING ACT 552(a) and 1 CFR part 51. You may
The Commission has not proposed obtain a copy of NIST Handbook 133 at
any specific small entity exemption or ■ 1. The authority citation for part 500 the National Institute of Standards and
other significant alternatives, because continues to read as follows: Technology’s Web site, http://
the amendments expand labeling www.nist.gov/pml/wmd/pubs/
Authority: 15 U.S.C. 1453, 1454, 1455.
options to accommodate the rise of hb133.cfm. You may inspect a copy at
online media, remove unnecessary price ■ 2. In § 500.3, revise paragraph (d) to
read as follows: FTC Library, (202) 326–2395, Federal
statement prohibitions, or are technical Trade Commission, Room H–630, 600
in nature. In addition, these changes § 500.3 Prohibited acts, coverage, general Pennsylvania Avenue NW., Washington,
provide new flexibilities for small labeling requirements, exemption DC 20580, or at the National Archives
entitities by, for example, allowing procedures. and Records Administration (NARA).
regulated entities to omit a business * * * * * For information on the availability of
address from a label if the address is (d) Each packaged or labeled this material at NARA, call 202–741–
readily available in an online directory consumer commodity, unless it has 6030, or go to: http://www.archives.gov/
or other Web site. Under these limited been exempted through proceedings federal-register/cfr/ibr-locations.html.
circumstances, the Commission does under section 5(b) of the Act, shall bear
not believe a special exemption for a label specifying the identity of the * * * * *
small entities or significant compliance commodity; the name and place of ■ 5. Revise § 500.22 to read as follows:
alternatives are necessary or appropriate business of the manufacturer, packer, or
to minimize the compliance burden, if distributor; the net quantity of contents; § 500.22 Abbreviations.
any, on small entities while achieving and the net quantity per serving, use or The following abbreviations and none
the intended purposes of the proposed application, where there is a label other may be employed in the required
amendments. Nonetheless, the representation as to the number of
net quantity declaration:
Commission sought, but did not receive, servings, uses, or applications
comments on the need, if any, for obtainable from the commodity. Many Inch—in.
products exempted through proceedings Feet or foot—ft.
alternative compliance methods to
under section 5(b) of the Act and section
reduce the economic impact of the Fluid—fl.
500.3(e) of this chapter or excluded
Rules on small entities. under part 503 of this chapter Liquid—liq.
None of the comments addressed the nonetheless fall within the purview of Ounce—oz.
Regulatory Flexibility Act analysis in the weights-and-measures laws of the
the NPRM. individual states. Gallon—gal.
* * * * * Pint—pt.
VI. Incorporation by Reference
■ 3. Revise § 500.5(c) to read as follows: Pound—lb.
Consistent with 1 CFR part 51, the Quart—qt.
Commission is incorporating the § 500.5 Name and place of business of
manufacturer, packer or distributor. Square—sq.
complete metric conversion chart
published in the National Institute of * * * * * Weight—wt.
Standards and Technology (NIST) (c) The statement of the place of
Yard—yd.
Handbook 133, Checking the Contents business shall include the street
address, city, state, and zip code; Avoirdupois—avdp.
of Packaged Goods (2015 ed., Exhibit E,
however, the street address may be Cubic—cu.
pgs. 135–157), as described in Section
omitted if it is listed in a readily
III.B above. The metric conversion chart accessible, widely published, and
Note: Periods and plural forms shall be
provides a complete and up-to-date list optional. Exponents are permitted.
publicly available resource, including
of metric conversion factors for but not limited to a printed directory,
packagers. electronic database, or Web site. PART 502—REGULATIONS UNDER
The metric conversion chart is * * * * * SECTION 5(C) OF THE FAIR
reasonably available to interested PACKAGING AND LABELING ACT
■ 4. In § 500.19, revise paragraph (a) to
parties. Members of the public can read as follows:
access the metric conversion chart ■ 6. The authority citation for part 502
online at NIST’s Web site, NIST.gov. § 500.19 Conversion of SI metric quantities is revised to read as follows:
to inch/pound quantities and inch/pound
List of Subjects in 16 CFR Parts 500 and quantities to SI metric quantities. Authority: 15 U.S.C. 1454, 1455.
502 (a) For calculating the conversion of §§ 502.100, 502.101, and 502.102
SI metric quantities to and from [Removed and Reserved]
Fair Packaging and Labeling Act, customary inch/pound quantities, the
Incorporation by reference, Labeling, conversion chart published in the ■ 7. Remove and reserve §§ 502.100,
Packaging and containers, Trade following handbook shall be employed: 500.101, and 502.102.
practices. National Institute of Standards and
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By direction of the Commission.
Under 15 U.S.C. 1454–1455 and as Technology (NIST) Handbook 133, Donald S. Clark,
discussed in the preamble, the Federal Checking the Net Contents of Packaged
Secretary.
Trade Commission amends title 16 of Goods, Appendix E—General Tables of
Units of Measurements, 2015 Edition, [FR Doc. 2015–28918 Filed 11–16–15; 8:45 am]
the Code of Federal Regulations by
amending parts 500 and 502 as follows: adopted November 2014. This BILLING CODE 6750–01–P
incorporation by reference was
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Document Created: 2015-12-14 14:00:55
Document Modified: 2015-12-14 14:00:55
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective on December 17, 2015. The incorporation by reference of certain publications listed in the regulations is approved by the Director of the Federal Register as of December 17, 2015. | |
| Contact | Megan E. Gray, Attorney, (202) 326- 3408, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580. | |
| FR Citation | 80 FR 71686 | |
| RIN Number | 3084-AB33 | |
| CFR Citation | 16
CFR
500 16 CFR 502 | |
| CFR Associated | Fair Packaging and Labeling Act; Incorporation by Reference; Labeling; Packaging and Containers and Trade Practices |
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