FEDERAL TRADE COMMISSION - INSULATION

FEDERAL TRADE COMMISSION
LABELING AND ADVERTISING OF HOME INSULATION 16CFR460
(From the U.S. Government Printing Office via GPO Access)

Sec. 460.1 What this regulation does.
This regulation deals with home insulation labels, fact sheets, ads, and other promotional materials in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act. If you are covered by this regulation, breaking any of its rules is an unfair and deceptive act or practice or an unfair method of competition under section 5 of that Act. You can be fined heavily (up to $10,000 plus an adjustment for inflation, under Sec. 1.98 of this chapter) each time you break a rule.
[44 FR 50242, Aug. 27, 1979, as amended at 61 FR 54549, Oct. 21, 1996; 61 FR 55840, Oct. 29, 1996]

Sec. 460.4 When the rules apply.
You must follow these rules each time you import, manufacture, distribute, sell, install, promote, or label home insulation. You must follow them each time you prepare, approve, place, or pay for home insulation labels, fact sheets, ads, or other promotional materials for consumer use. You must also follow them each time you supply anyone covered by this regulation with written information that is to be used in labels, fact sheets, ads, or other promotional materials for consumer use.

Sec. 460.10 How statements must be made.
All statements called for by this regulation must be made clearly and conspicuously.

Sec. 460.16 What new home sellers must tell new home buyers.
If you are a new home seller, you must put the following information in every sales contract: The type, thickness, and R-value of the insulation that will be installed in each part of the house. There is an exception to this rule. If the buyer signs a sales contract before you know what type of insulation will be put in the house, or if there is a change in the contract, you can give the buyer a receipt stating this information as soon as you find out.


Appendix to Part 460--Exemptions
Manufacturers of rigid, flat-roof insulation products used in flat, built-up roofs are exempted from the requirements in Sec. 460.12 that they label these home insulation products. 46 FR 22180 (1981).

New home sellers are exempted from:
the requirement in Sec. 460.18(a) that they disclose the type and thickness of the insulation when they make a representation in an advertisement or other promotional material about the R-value of the insulation in a new home; the requirement that they disclose in an advertisement or other promotional material the R-value explanatory statement specified in Sec. 460.18(a) or the savings explanatory statement specified in Sec. 460.19(b), conditioned upon the new home sellers alternatively disclosing the appropriate explanatory statement in the sales contract along with the disclosures required by Sec. 460.16; the requirement that they make the disclosures specified in Sec. 460.19(c) if they claim that insulation, along with other products in a new home, will cut fuel bills or fuel use; and the requirement that they include the reference to fact sheets when they must disclose the R-value explanatory statement or the savings claim explanatory statement under Sec. 460.18(a) or Sec. 460.19(b), respectively.