82 FR 29256 - Trade Regulation Rule Concerning Deceptive Advertising as to Sizes of Viewable Pictures Shown by Television Receiving Sets

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 123 (June 28, 2017)

As part of its systematic review of all current FTC rules and guides, the Commission requests public comment on the overall costs, benefits, necessity, and regulatory and economic impact of the FTC's Trade Regulation Rule concerning Deceptive Advertising as to Sizes of Viewable Pictures Shown by Television Receiving Sets (``Rule'' or ``Picture Tube Rule'').

[Federal Register Volume 82, Number 123 (Wednesday, June 28, 2017)]
[Proposed Rules]
[Pages 29256-29259]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13476]


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FEDERAL TRADE COMMISSION

16 CFR Part 410

RIN 3084-AB44


Trade Regulation Rule Concerning Deceptive Advertising as to 
Sizes of Viewable Pictures Shown by Television Receiving Sets

AGENCY: Federal Trade Commission.

ACTION: Advance notice of proposed rulemaking (ANPR); request for 
public comment.

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SUMMARY: As part of its systematic review of all current FTC rules and 
guides, the Commission requests public comment on the overall costs, 
benefits, necessity, and regulatory and economic impact of the FTC's 
Trade Regulation Rule concerning Deceptive Advertising as to Sizes of 
Viewable Pictures Shown by Television Receiving Sets (``Rule'' or 
``Picture Tube Rule'').

DATES: Comments must be received on or before August 31, 2017.

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: ``16 CFR part 410--
Picture Tube Rule Review, File No. P174200'' on your comment, and file 
your comment online at https://ftcpublic.commentworks.com/ftc/picturetuberule by following the instructions on the web-based form. If 
you prefer to file your comment on paper, write ``16 CFR part 410--
Picture Tube Rule Review, Matter No. P174200'' 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 B), Washington, DC 20580, or deliver your comment 
to the following address: Federal Trade Commission, Office of the 
Secretary, Constitution Center, 400 7th Street SW.,

[[Page 29257]]

5th Floor, Suite 5610 (Annex B), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: John Andrew Singer, (202) 326-3234, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission promulgated the Picture Tube Rule in 1966,\1\ to 
prevent deceptive claims regarding television screens' size and 
encourage uniformity in measurement, thereby aiding comparison 
shopping. The Rule sets forth the appropriate means to disclose the 
method used to measure the dimensions of television screens.\2\ Under 
the Rule, marketers must base any representation of screen size on the 
horizontal dimension of the actual, viewable picture area unless they 
disclose the alternative method of measurement clearly and 
conspicuously, and in close proximity, to the size designation.\3\ The 
Rule also directs that marketers base the measurement on a single-plane 
basis, without taking into account any screen curvature.\4\ Finally, it 
includes examples of both proper and improper size representations.\5\
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    \1\ 31 FR 3342 (Mar. 3, 1966).
    \2\ 16 CFR 410.1.
    \3\ The Rule provides that ``any referenced or footnote 
disclosure of the manner of measurement by means of the asterisk or 
some similar symbol does not satisfy the `close connection and 
conjunction' requirement of this part.'' Id., Note 2.
    \4\ Id., Note 1.
    \5\ Id., Note 2.
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II. Regulatory Review Program

    The Commission reviews its rules and guides periodically to seek 
information about their costs and benefits, regulatory and economic 
impact, and general effectiveness in protecting consumers and helping 
industry avoid deceptive claims. These reviews assist the Commission in 
identifying rules and guides that warrant modification or rescission. 
The Commission last reviewed the Rule in 2006, retaining it 
unchanged.\6\ With this document, the Commission initiates a new 
review. It solicits comments on, among other things: The economic 
impact of and the continuing need for, the Rule; the Rule's benefits to 
consumers; and the burdens it places on industry, including small 
businesses. The Commission further solicits comments, and invites the 
submission of data, regarding how consumers understand dimension claims 
for televisions, including: Whether consumers understand the stated 
dimensions, whether the dimensions are limited to the set's viewable 
portion, and whether the dimensions are based on a single-plane 
measurement that does not include curvature in the set's screen.\7\ The 
Commission also solicits comments on whether advances in broadcasting 
and television technology, such as the introduction of curved screen 
display panels and changing aspect ratios (e.g., from the traditional 
4:3 to 16:9), create a need to modify the Rule. Finally, it requests 
comments regarding whether the Rule should address viewable screen size 
measurement reporting tolerances and rounding.
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    \6\ 71 FR 34247 (Jun. 14, 2006).
    \7\ In the 50 years since the Rule's adoption, marketers have 
come typically to advertise screen size based on a single-plane 
diagonal measurement of the screen's viewable portion. The 
Commission, infra, solicits comments and data on whether this 
practice is continuing with the relatively recently introduced 
curved display panel television sets.
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III. Issues for Comment

    To aid commenters in submitting their comments, the Commission 
provides the following general regulatory review questions and specific 
questions related to the Picture Tube Rule. The Commission seeks 
comments on these and any other issues related to the Rule's current 
requirements. In their replies to each of these questions, commenters 
should provide any available evidence and data, such as empirical data, 
consumer perception studies, or consumer complaints, that support the 
positions asserted in their comments.

A. General Regulatory Review Questions

    (1) Need: Is there a continuing need for the Rule? Explain why or 
why not. Is there a need for a rule to address any unfair or deceptive 
acts or practices concerning television screen sizes or would case-by-
case enforcement be a better approach to addressing such practices?
    (2) Unnecessary Provisions: Are any specific provisions of the Rule 
no longer necessary? If so, identify these provisions and explain why 
they are unnecessary.
    (3) Benefits and Costs to Consumers: What benefits, if any, does 
the Rule provide to consumers, and does the Rule impose any significant 
costs on consumers?
    (4) Benefits and Costs to Industry Members: What benefits, if any, 
does the Rule provide to businesses, and does the Rule impose any 
significant costs, including compliance costs, on businesses, including 
small businesses?
    (5) Recommended Changes: What modifications, if any, should the 
Commission make to the Rule to increase its benefits or reduce its 
costs? Explain the specific modifications you propose and how they 
would affect the Rule's costs and benefits for consumers and 
businesses, particularly small businesses.
    (6) Impact on Information: What impact does the Rule have on the 
flow of truthful information to consumers and deceptive information to 
consumers?
    (7) Compliance: What is the degree of industry compliance with the 
Rule? Does this compliance level indicate that the Commission should 
modify the Rule? If so, explain why and how the Commission should do 
so.
    (8) Additional Unfair or Deceptive Practices: Are there unfair or 
deceptive practices not covered by the Rule occurring in the 
marketplace relating to the advertising and promotion of the viewable 
picture size of television set screens? If so: (a) Describe these 
practices and provide evidence of their existence; (b) state their 
prevalence; (c) state their impact on consumers; (d) explain what 
modifications the Commission should make to the Rule to eliminate such 
practices; and (e) explain how any modification would impact consumers 
and businesses, particularly small businesses.
    (9) Product Coverage: Should the Commission broaden the Rule to 
include products not currently covered? If so: (a) Identify these 
products; (b) describe the unfair or deceptive practices occurring 
regarding these products and provide evidence of these practices; (c) 
state the prevalence of these practices; (d) explain what modifications 
the Commission should make to the Rule to cover these practices; (e) 
explain how these modifications would eliminate these practices; and 
(f) explain how any modification would impact consumers and businesses, 
particularly small businesses.
    (10) Overlaps and Conflicts with, and Effects on, Other 
Requirements: Does the Rule overlap or conflict with other Federal, 
State, or local laws or regulations? If so: (a) Identify these laws or 
regulations; (b) describe how the Rule overlaps or conflicts; and (c) 
explain how the Commission should modify the Rule to eliminate or 
lessen such overlaps or conflicts. Additionally, are any modifications 
to the Rule necessary to assist state law enforcement agencies' efforts 
to combat deceptive or unfair practices in television set marketing? If 
so, explain what modifications the

[[Page 29258]]

Commission should make to the Rule and how they will assist these 
agencies.

B. Specific Questions Related to the Picture Tube Rule

    (1) Consumer Understanding of Screen Measurements Generally: What 
understanding do consumers have regarding television screen dimensions 
stated in advertisements, e.g., do they think the dimensions are 
diagonal, horizontal, or vertical; single or multi-plane; include only 
the viewable screen area? Submit evidence supporting your position.
    (2) The Rule's Default Screen Measurement Method: Should the Rule's 
default television set screen measurement method change, e.g., to the 
diagonal single-plane measurement of the viewable portion of a screen? 
If so: (a) Explain how, and why, the default screen measurement method 
should change; (b) explain whether the Commission should continue to 
require that, when a screen dimension stated in advertising is based 
upon anything but the default measurement method, the method used must 
be disclosed clearly and conspicuously, and in close proximity, to the 
dimension; (c) submit evidence supporting your position; and (d) 
explain how the default screen measurement method that you proposed in 
response to (a), supra, would impact consumers and businesses, 
particularly small businesses.
    (3) Curved Display Screens: Note 1 to the Rule directs that the 
viewable picture size of television set screens be measured on a 
single-plane basis, not taking into account any screen curvature. When 
the Commission originally promulgated this provision, television sets 
used cathode ray tubes with curved display screens. Today, television 
sets generally incorporate plasma, LED, OLED, and similar flat display 
screens, though some television sets have concave display screens. (a) 
Do consumers understand that stated dimensions are based on a single-
plane measurement that does not include curvature in the screen? Submit 
evidence supporting your position. (b) Does the use of curved screens 
affect how manufacturers and marketers measure and promote the viewable 
screen size of television sets? If so: (1) Identify and explain these 
effects; (2) explain how, if at all, the Commission should modify the 
Rule to address these effects; and (3) explain how any modification 
would impact consumers and businesses, particularly small businesses.
    (4) Measurement Reporting Tolerances and Rounding: The Rule does 
not address how to disclose the viewable screen size of television sets 
that do not, consistent with Note 2, measure precisely to an inch or 
100th of a centimeter measurement. In 2008, industry requested staff 
guidance on rounding because promotional material measurements were 
often off by up to \1/2\-inch to avoid waste in cutting glass from 
standard sheets. Staff advised, with the caveat that it did not speak 
for the Commission, that it was unlikely to recommend enforcement 
action based on an up to \1/2\-inch discrepancy, as long as marketers 
make clear that the larger number represents a class size and state the 
actual screen measurement, clearly and conspicuously, and in close 
proximity to the class size representation, e.g., 32'' Class, 31.75'' 
actual measurement. Explain: (a) How, if at all, the Commission should 
modify the Rule to address this issue; and (b) how any modification 
would impact consumers and businesses, particularly small businesses.
    (5) Aspect Ratios: Some television sets have viewing screens with a 
16:9 (1.77:1) aspect ratio rather than 4:3 (1.33:1) ratio. Do different 
aspect ratios affect how manufacturers and marketers measure and 
promote the viewable screen size of television sets? If so: (a) 
Identify how different aspect ratios change screen measurement and 
television set marketing; (b) explain how, if at all, the Commission 
should modify the Rule to address this issue; and (c) explain how any 
modification would impact consumers and businesses, particularly small 
businesses.
    (6) Technological or Economic Changes: Should the Commission 
otherwise modify the Rule to account for current or impending changes 
in technology or economic conditions that may affect television sets? 
If so: (a) Identify these changes; (b) explain how, if at all, the 
Commission should modify the Rule to address this issue; and (c) 
explain how any modifications would impact consumers and businesses, 
particularly small businesses.

IV. Request for Comment

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before August 31, 2017. 
Write ``16 CFR part 410--Picture Tube Rule Review, File No. P174200'' 
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 public Commission Web site, at http://www.ftc.gov/policy/public-comments.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/picturetuberule, by following the instructions on the web-based 
form. If this Notice appears at https://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you prefer to file your comment on paper, write ``16 CFR part 
410--Picture Tube Rule Review, File No. P174200'' 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 B), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex B), Washington, DC 20024. If possible, submit your 
paper comment to the Commission by courier or overnight service.
    Because your comment will be placed on the publicly accessible FTC 
Web site at https://www.ftc.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 else's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure 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 ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
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).

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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 on the public FTC Web site--as legally required 
by FTC Rule 4.9(b)--we cannot redact or remove your comment from the 
FTC Web site, 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 Web site to read this Notice 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 
August 31, 2017. 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.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-13476 Filed 6-27-17; 8:45 am]
 BILLING CODE 6750-01-P