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Test Procedures and Labeling Standards for Recycled Oil

American Government Special Collections Reference Desk

American Government

Test Procedures and Labeling Standards for Recycled Oil

Donald S. Clark
Federal Trade Commission
20 December 2017


[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Proposed Rules]
[Pages 60334-60335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27374]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / 
Proposed Rules

[[Page 60334]]



FEDERAL TRADE COMMISSION

16 CFR Part 311

RIN 3084-AB48


Test Procedures and Labeling Standards for Recycled Oil

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

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

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
requests public comment on the overall costs, benefits, and regulatory 
and economic impact of its rule specifying Test Procedures and Labeling 
Standards for Recycled Oil (``Recycled Oil Rule'' or ``Rule''), as part 
of the Commission's systematic review of all current FTC rules and 
guides.

DATES: Comments must be received on or before February 12, 2018.

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 311--
Recycled Oil, Matter No. R811006'' on your comment, and file your 
comment online at https://ftcpublic.commentworks.com/ftc/RecycledOilReview, by following the instructions on the web-based form. 
If you prefer to file your comment on paper, 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, 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 A), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW, CC-9528, 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Recycled Oil Rule, mandated by the Energy Policy and 
Conservation Act (``EPCA'') (42 U.S.C. 6363), contains testing and 
labeling requirements for recycled engine oil. As indicated in the 
statute, the Rule's purpose is to encourage used oil recycling, promote 
recycled oil use, reduce new oil consumption, and reduce environmental 
hazards and wasteful practices associated with used oil disposal.\1\ 
The Rule, initially promulgated in 1995 (60 FR 55414 (Oct. 31, 1995)), 
allows manufacturers to represent that processed used engine oil is 
substantially equivalent to new oil as long as they substantiate such 
claims using American Petroleum Institute (API) Publication 1509 
(Engine Oil Licensing and Certification System).\2\ The Rule does not 
require manufacturers to explicitly state that their engine oil is 
substantially equivalent to new oil, nor does it mandate any specific 
qualifiers or disclosures.\3\
---------------------------------------------------------------------------

    \1\ 42 U.S.C. 6363(a).
    \2\ Under EPCA (42 U.S.C. 6363(c)), the National Institute of 
Standards and Technology (``NIST'') must develop (and report to the 
FTC) applicable standards for determining the substantial 
equivalence of processed used engine oil with new engine oil. NIST 
recommended API 1509 when the Commission originally promulgated the 
Rule.
    \3\ 60 FR at 55418-55419.
---------------------------------------------------------------------------

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. 
As part of its last review in 2007, the Commission determined to retain 
the Rule and updated the reference to API Publication 1509, Fifteenth 
Edition, and added an explanation of incorporation by reference in 
Sec.  311.4.\4\
---------------------------------------------------------------------------

    \4\ 72 FR 14410, 14413 (March 28, 2007).
---------------------------------------------------------------------------

    With the present Notice, the Commission initiates a new review. The 
Commission solicits comments on, among other things, the economic 
impact of, and the continuing need for, the Recycled Oil Rule; the 
Rule's benefits to consumers; and the burdens it places on industry 
members subject to the Rule's requirements, including small businesses.

III. Issues for Comments

    To aid commenters in submitting information, the Commission has 
prepared the following specific questions related to the Recycled Oil 
Rule. The Commission seeks comments on these and any other issues 
related to the Rule's current requirements. In their replies, 
commenters should provide any available evidence and data that supports 
their position, such as empirical data, consumer perception studies, 
and consumer complaints.
    (1) Need: Is there a continuing need for the Rule? Why or why not?
    (2) Benefits and Costs to Consumers: What benefits has the Rule 
provided to consumers, and does the Rule impose any significant costs 
on consumers?
    (3) Benefits and Costs to Industry Members: What benefits, if any, 
has the Rule provided to businesses, and does the Rule impose any 
significant costs, including costs of compliance, on businesses, 
including small businesses?
    (4) Recommended Changes: What modifications, if any, should the 
Commission make to the Rule to increase its benefits or reduce its 
costs? How would these modifications affect the costs and benefits of 
the Rule for consumers? How would these modifications affect the costs 
and benefits of the Rule for businesses, particularly small businesses?
    (5) Impact on Information: What impact has the Rule had on the flow 
of truthful information to consumers and on the flow of deceptive 
information to consumers?
    (6) Compliance: Provide any evidence concerning the degree of 
industry compliance with the Rule. Does this evidence indicate that the 
Rule should be modified? If so, why, and how? If not, why not?
    (7) Unnecessary Provisions: Provide any evidence concerning whether 
any of the Rule's provisions are no longer necessary. Explain why these 
provisions are unnecessary.
    (8) Technological or Economic Changes: What modifications, if any, 
should be made to the Rule to account for current or impending changes 
in

[[Page 60335]]

technology or economic conditions? How would these modifications affect 
the costs and benefits of the Rule for consumers and businesses, 
particularly small businesses?
    (9) Conflicts With Other Requirements: Does the Rule overlap or 
conflict with other federal, state, or local laws or regulations? If 
so, how? Provide any evidence that supports your position. With 
reference to the asserted conflicts, should the Rule be modified? If 
so, why, and how? If not, why not? Are there any Rule changes necessary 
to help state law enforcement agencies combat deceptive practices in 
the recycled engine oil market? Provide any evidence concerning whether 
the Rule has assisted in promoting national consistency with respect to 
the advertising of recycled engine oil.
    (10) Update Rule Reference to API Document: Should the Commission 
update the Rule to incorporate by reference the current version (i.e., 
the Seventeenth Edition) of the API Publication 1509? \5\ If so, should 
the incorporation include a specific date or other information to 
identify the seventeenth edition of API Publication 1509?
---------------------------------------------------------------------------

    \5\ The current Rule (Section 311.4) references the Fifteenth 
Edition of API Publication 1509.
---------------------------------------------------------------------------

IV. Comment Submissions

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before February 12, 
2018. Write ``16 CFR part 311--Recycled Oil, Matter No. R811006'' 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 website, at http://www.ftc.gov/os/publiccomments.shtm. 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, or to send 
them to the Commission by courier or overnight service. To make sure 
that the Commission considers your online comment, you must file it at 
https://ftcpublic.commentworks.com/ftc/RecycledOilReview, by following 
the instructions on the web-based form. When this Notice appears at 
https://www.regulations.gov, you also may file a comment through that 
website.
    If you prefer to file your comment on paper, write ``16 CFR part 
311--Recycled Oil, Matter No. R811006'' 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, 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 
A), 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 
website 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), 16 CFR 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 on the public FTC website--as legally required 
by FTC Rule 4.9(b)--we cannot redact or remove your comment from the 
FTC website, 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 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 
February 12, 2018. 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. 2017-27374 Filed 12-19-17; 8:45 am]
 BILLING CODE 6750-01-P
 

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