I wonder how the FTC "got away with" the rather extreme 1974 regulations? The claims for power amplifier output power in those days were certainly right up there in
cryptocurrency territory
but that in and of itself doesn't explain it. One would think that, then as now, the manufacturers would, by and large, prefer
lenient (so to speak) requirements. One might further posit that they would've lobbied for same, as well!
It could also be argued that the IHF standards already "in effect" in that same era represented a good-faith effort to provide meaningful numbers for power output related to real world requirements for playback of music.