Proposed Partial Rule Exemption for Gilbarco, Inc. Publication: Federal Register Agency: Federal Trade Commission Byline: April J. Tabor Date: 29 June 2022 Subjects: American Government , Petroleum Topic: Gilbarco

[Federal Register Volume 87, Number 124 (Wednesday, June 29, 2022)]
[Proposed Rules]
[Pages 38692-38693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13795]



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FEDERAL TRADE COMMISSION

[File No. R811005]

16 CFR Part 306


Proposed Partial Rule Exemption for Gilbarco, Inc.

AGENCY: Federal Trade Commission.

ACTION: Notification of proposed exemption; request for comment.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') has 
received a petition from Gilbarco, Inc. (``Gilbarco'') seeking a 
partial exemption from the coverage of a rule and published that 
petition online at https://www.regulations.gov. The petition requests 
permission to post fuel rating labels that deviate from label size, 
shape, font size, and letterspace specifications contained in the Fuel 
Rating Rule. The Commission proposes granting the partial exemption and 
invites comment on this proposal.

DATES: Comments must be filed by August 15, 2022.

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 ``Gilbarco Exemption; 
Matter No. R811005'' on your comment, and file your comment online at 
https://www.regulations.gov/, 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, Org 0825, Mail Stop H-144, 600 Pennsylvania Avenue NW, 
Washington, DC 20580.

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

SUPPLEMENTARY INFORMATION: The Commission seeks comment on a ``Petition 
for Partial Exemption'' from Gilbarco, Inc. (``Gilbarco'').\1\ As 
discussed below, the Petition requests that the Commission issue a 
partial exemption allowing Gilbarco to reduce the footprint and type 
size of fuel labels required under 16 CFR part 306.
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    \1\ The petition is available online at https://www.regulations.gov.
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I. Background

    The Commission promulgated the Fuel Rating Rule (16 CFR part 306) 
(``the Rule'') in accordance with the Petroleum Marketing Practices Act 
(``PMPA''), 15 U.S.C. 2821 et seq., which requires the Commission to 
establish uniform automotive fuel rating and labeling standards.\2\ The 
ratings and labels provide consumers information they need to choose 
the correct type or grade of fuel for their vehicles. As originally 
published in 1979, the Rule only required an octane rating for 
automotive gasoline.\3\ Subsequently, the Commission added labeling 
requirements for liquid alternative fuels, biodiesel, and ethanol flex 
fuel.\4\ Section 306.12 of the Rule details the label color scheme, 
shape, size, textual content, and font type/point size. For example, 
the octane label must display the fuel's octane number in 96-point 
font. In addition, ethanol labels must state ``Use Only In Flex-Fuel 
Vehicles/May Harm Other Engines'' in capital letters and black font, 
with the phrase ``Flex-Fuel Vehicles'' in 16-point font.
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    \2\ See 15 U.S.C. 2823(c)(1).
    \3\ See Octane Posting and Certification Rule, 44 FR 19160 
(1979).
    \4\ See 58 FR 41356 (Aug. 3, 1993) (alternative fuels); 73 FR 
40154 (July 11, 2008); and 81 FR 2054 (Jan. 14, 2016).
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    In the past, the Commission granted partial exemptions to allow 
Gilbarco, one of the largest manufacturers of fuel dispensers in the 
U.S., to (1) post octane button labels with smaller label dimensions 
than allowed by the Rule (these dimension changes did not alter font 
size), and (2) add the word ``Press'' on the label. In addition, in the 
1995 exemption, the Commission allowed Gilbarco to make the font size 
``slightly smaller'' for the prominent octane (96-point font) number on 
the octane label.\5\
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    \5\ See Gilbarco exemptions at 60 FR 57584 (Nov. 16, 1995); 53 
FR 29277 (Aug. 3, 1988); 81 FR 86914 (Dec. 2, 2016). See also 
similar exemptions granted to other companies including Sunoco, 44 
FR 33740 (June 12, 1979) and 55 FR 1871 (Jan. 19, 1990); Dresser 
Industries, Inc., 56 FR 26821 (June 11, 1991); Exxon Corp., 54 FR 
14072 (Apr. 7, 1989).
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II. Gilbarco's Requested Partial Exemption

    In its new petition, Gilbarco requests a partial exemption to 
permit retailers to post narrower label dimensions for button labels, 
as well as allow the use of smaller font size for certain text to 
accommodate such narrower labels.\6\ These changes would allow Gilbarco 
to fit a larger number of fuel labels on a single dispenser. Gilbarco 
explains the exemption is needed ``so that retailers may adapt to the 
needs of consumers while continuing to ensure the clear and conspicuous 
disclosure of all information required by the Rule.'' Given increases 
in fuel choices at retail pumps, Gilbarco has developed and now 
proposes button label specifications that would allow its dispensers to 
accommodate one additional fuel grade button, for a total of six 
buttons for selecting fuel on dispensers.
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    \6\ In its petition, Gilbarco asked the Commission to consider 
granting the proposed exemptions without a notice and comment 
period. The Commission, however, has determined that the petition 
may raise issues appropriate for public comment, and is therefore 
publishing this Notice to seek comment before reaching a final 
decision on the petition. Under Sec.  1.31 of the Commission's 
rules, 16 CFR 1.31(f), the FTC invites public comment on petitions 
for rulemaking including petitions for exemptions from Commission 
rules. This Notice satisfies the requirements of that section.
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    To help achieve this goal, Gilbarco specifically requests the 
following changes to the fuel rating labels:
    1. Permission to post fuel rating labels that deviate from the 
Rule's requirements concerning the external dimensions of labels for 
gasoline, alternative liquid automotive fuels, ethanol flex fuels, 
biodiesel, biodiesel blends, and biomass-based diesel to allow for 
labels that are 2.20 inch wide (and the same length as previously 
permitted by the Commission in previous exemption requests).\7\
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    \7\ The Rule (16 CFR 306.12) requires 3 inches wide by 2.5 
inches long.
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    2. Permission for fuel retailers to post fuel rating labels that 
deviate from font size and letterspace specifications contained in the 
Rule in the following manner:
    a. 22-point font size for ``XX% ETHANOL'' instead of 24-point font 
as currently required on the ethanol label;
    b. 10-point font size and 10.5-point letterspace for ``MINIMUM 
OCTANE RATING'' instead of 12-point font and 12 \1/2\ point spacing as 
currently required on the octane label; and
    c. 14-point font size for ``FLEX-FUEL VEHICLES'' instead of 16-
point currently required on the ethanol label.
    Under the proposed partial exemption, the overall length of the 
labels will remain as previously approved by the Commission, and their 
background and text insertions will otherwise comply with the Rule's 
color scheme, content, and font type and point size requirements.

III. Discussion

    The Commission preliminarily concludes that Gilbarco's proposed 
label modifications meet the Rule's labeling requirements because they 
provide clear and conspicuous notice of the required information and 
are consistent with the Rule's other requirements relating to color 
scheme, content, and font. In addition, the Commission's experience 
with similar exemptions suggests the proposed slight reductions in font 
size

[[Page 38693]]

to several label disclosures are unlikely to materially affect 
consumers' understanding of the labels at the pump. Accordingly, the 
Commission proposes granting the requested exemption. The Commission 
requests comment on this proposal and whether the requested changes 
would materially affect the legibility of required fuel labels.

IV. Request for Comment

    The Commission seeks comment on the proposed exemption in this 
Notice. You can file a comment online or on paper. For the Commission 
to consider your comment, we must receive it on or before August 15, 
2022. Write ``Gilbarco Exemption; Matter No. R811005'' 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 website https://www.regulations.gov.
    Because of the public health emergency in response to the COVID-19 
outbreak and the agency's heightened security screening, postal mail 
addressed to the Commission will be subject to delay. We strongly 
encourage you to submit your comments online through the https://www.regulations.gov website. To ensure the Commission considers your 
online comment, please follow the instructions on the web-based form.
    If you file your comment on paper, write ``Gilbarco Exemption; 
Matter No. R811005'' on your comment and on the envelope, and mail your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, Org 0825, Mail Stop H-144, 600 Pennsylvania Avenue NW, 
Washington, DC 20580.
    Because your comment will be placed on the public record, you are 
solely responsible for making sure your comment does not include any 
sensitive or confidential information. Your comment should not contain 
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 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 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 publicly at www.regulations.gov--as legally 
required by FTC Rule 4.9(b), 16 CFR 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 document and the news release 
describing it. The FTC Act and other laws 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 it receives on or before August 15, 2022. 
For information on the Commission's privacy policy, including routine 
uses permitted by the Privacy Act, see https://www.ftc.gov/siteinformation/privacypolicy.
    Because written comments appear adequate to present the views of 
all interested parties, the Commission has not scheduled an opportunity 
for presentation of oral comments regarding these proposed amendments. 
Interested parties may request an opportunity to present views orally. 
If such a request is made, the Commission will publish a document in 
the Federal Register stating the time and place for such oral 
presentation(s) and describing the procedures that will be followed. 
Interested parties who wish to present oral views must submit a 
request, on or before August 15, 2022, in the form of a written comment 
that describes the issues on which the party wishes to speak. If no 
oral presentations are scheduled, the Commission will base its decision 
on the written rulemaking record.

V. Paperwork Reduction Act

    The Fuel Rating Rule contains recordkeeping, disclosure, testing, 
and reporting requirements 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 that 
implement the Paperwork Reduction Act (PRA). OMB has approved the 
Rule's existing information collection requirements through September 
30, 2023 (OMB Control No. 3084-0068). The proposed partial exemption 
would not amend the Rule or change the substance or frequency of the 
Rule's disclosure requirements and, therefore, does not require OMB 
clearance.

VI. Regulatory Flexibility Act

    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 partial exemption on small entities. 
The RFA requires that the Commission provide an Initial Regulatory 
Flexibility Analysis (``IRFA'') with a rule unless the Commission 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. 5 U.S.C. 605. The proposed 
exemption does not amend the Rule or alter the substance or frequency 
of the Rule's disclosure requirements. Thus, the Commission has 
concluded that a regulatory flexibility analysis is not necessary, and 
certifies, under Section 605 of the Regulatory Flexibility Act (5 
U.S.C. 605(b)), that the proposed exemption will not have a significant 
economic impact on a substantial number of small entities.

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-13795 Filed 6-28-22; 8:45 am]
BILLING CODE 6750-01-P