FTC Proposes Amendments to Rule Regarding R-Value Home Insulation Labeling and Advertising

On December 4, 2017, the FTC announced that it was proposing amendments to the R-value Rule, which generally governs disclosures and advertising in connection with insulation marketed for use in residential structures.  The proposed revisions are part of the FTC’s periodic review of all of its current rules and follow the FTC’s request for comment on the Rule in 2016.

As a preliminary matter, the FTC noted that it has decided to retain the Rule based on comments generally expressing the benefits and minimal costs of the Rule, as well as its own enforcement actions and education efforts and the industry’s use of the Rule, such as to help identify and address violations.  The FTC proposes to address a couple coverage issues, namely: (1) to apply the testing requirements of the Rule to R-value claims made for any product marketed to reduce energy use by slowing heat flow in residential buildings; and (2) to clarify that commercial products which are sold for residential use are subject to the Rule.  Additionally, the proposal includes a number of potential changes to various R-value-related disclosure and marketing provisions, including, among others: (1) amending the fact sheet disclosure regarding factors that may affect a consumer’s heating and cooling costs, adding disclosures regarding the import and impact of proper insulation installation and home air sealing; (2) clarifying that online retailers are required to post labels and fact sheets for covered insulation products they sell directly to consumers; and (3) exempting any space-constrained advertisement from certain Rule-required disclosures, though the burden remains on industry members to show that there is insufficient space for the required disclosure.  At present, the FTC proposes to make the amendments effective 180 days after publication in the Federal Register.

Comments regarding the proposed amendments must be received on or before March 8, 2018.

The FTC’s summary of its proposal, including a link to the proposed Rule, can be found at: https://www.ftc.gov/news-events/press-releases/2017/12/ftc-proposes-updates-r-value-rule-home-insulation-products.