USA: Federal Trade Commission Issues Final Amendments to Amplifier Rule

This blog was originally posted on 17th June, 2024. Further regulatory developments may have occurred after publication. To keep up-to-date with the latest compliance news, sign up to our newsletter.

AUTHORED BY KELLY BUGIERA, SENIOR REGULATORY COMPLIANCE SPECIALIST, COMPLIANCE & RISKS

Introduction

The Federal Trade Commission (FTC) has issued final amendments to its Amplifier Rule in an effort to help consumers make direct comparisons of home entertainment amplifiers.

In this blog, we take a look at the background of the Amplifier Rule, and outline the changes to the final rule.

Amplifier Rule: Background

The Amplifier Rule regulates the power output related claims used for home entertainment amplifiers so that consumers can more readily compare products prior to purchase. The FTC enacted this rule in 1974 in response to advertisements for amplifiers that relied on widely disparate and, sometimes, deceptive testing methods, which left consumers without a reliable way to shop for amplifiers. Prior to now, the rule was last reviewed in 2008.

In December 2020, the FTC issued an advance notice of proposed rulemaking which sought comments regarding public support for the rule, as well as proposed changes or modifications that the FTC should consider as part of its regulatory review. Upon evaluation of the comments received, in July 2022, the Commission issued a notice of proposed rulemaking.

This sought additional comments regarding standardizing certain test conditions for the measurement of amplifier power output and also on the parameters of consumers’ normal use of multichannel home theater amplifiers. After receiving and analyzing the various public comments, in July 2023, the agency issued a supplemental notice of proposed rulemaking (SNPRM), seeking more comments and additional considerations that were used to develop the newly revised Final Rule.

The New Amplifier Rule

Upon careful evaluation of all of the comments received, the FTC has now approved a Final Rule adopting standard test conditions and other improvements for power output claims for amplifiers that are used in home entertainment products. Aside from a minor clarification, the Final Rule adopts the text of the aforementioned 2023 SNPRM.

The Final Rule incorporates the following changes:

• Requires uniform testing conditions for amplifiers if sellers make certain claims about power output;
• Improves differentiation between power output disclosures that comply with the rule’s test conditions from those that do not; and
• Modernizes and clarifies the language in the rule related to these modifications.

In addition, the Final Rule formalizes the FTC’s previous guidance regarding how the rule should be applied to multichannel amplifiers.

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