[Federal Register Volume 64, Number 5 (Friday, January 8, 1999)]
[Notices]
[Pages 1203-1207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-384]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Proposed Collection; Comment Request
AGENCY: Federal Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) (PRA), the Federal Trade Commission (FTC) is inviting comments
on proposed three year extensions of Paperwork Reduction Act clearance
for information collection requirements associated with five Commission
rules. The FTC is also inviting comments on the extension of clearance
for collections of information associated with FTC administrative or
procedural tasks.
This request is solely for extensions of current collections of
information; no amendments or changes to these rules or the collection
requirements contained therein are being proposed by this notice. Any
adjustments to burden hours are due solely to changes in the market-
place or the practices of the industries involved.
DATES: Comments must be filed by (60 days from the date of this
publication).
ADDRESSES: All comments should be identified as responding to this
notice and should be sent to Elaine W. Crockett, Attorney, Office of
the General Counsel, Room, 598, 600 Pennsylvania Avenue, NW., 20580.
Telephone: (202) 326-2453. Fax: (202) 326-2477. E-mail:
ecrockett@ftc.gov.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed extensions of the information requirements
should be addressed to Elaine W. Crockett at the address listed above.
SUPPLEMENTARY INFORMATION: As required by 5 CFR 1320.8(d)(1), the FTC
is seeking comments concerning the proposed extensions in order to: (1)
Evaluate whether the proposed collections of information are necessary
for the proper performance of the functions of the FTC, including
whether the information will have practical utility; (2) Evaluate the
accuracy of the FTC's estimates of the burdens associated with each
proposed collection of information, including the validity of the
methodologies and assumptions used; (3) Enhance the quality, utility,
and clarity of the information to be collected; and (4) Minimize the
burden of the collections of information on those who are to respond,
including through the use of appropriate automated, electronic,
mechanical or other technological collection techniques or other forms
of information technology, e.g., permitting electronic submission of
responses.
1. Title: FTC Hart-Scott-Rodino (``Premerger Notification'') Rules
and Form, 16 CFR Parts 801-803--(OMB Control Number 3084-0005)--
Extension
The Antitrust Improvements Act Notification and Report Form
(``Report Form'' or ``Form'') implements the notification requirement
contained in the Premerger Notification Rules, 16 CFR parts 801-803
(1998) and section 7A of the Clayton Act, 15 U.S.C. 18a. Under the Act
and its associated rules, certain parties contemplating acquisitions of
a specified size must notify the FTC and the Antitrust Division of the
Department of Justice (``the enforcement agencies'') and wait for 30
days (or, in the case of a cash tender offer, 15 days) before
consummating the transaction. The FTC has established the Report Form
as the means for accomplishing the notification mandated by the Act.
The Report Form provides the enforcement agencies with the information
needed to make prompt, preliminary determinations of the antitrust
implications of the reported transactions.
On June 14, 1994, the FTC published a Federal Register Notice in
which it proposed certain changes to the Report Form. 59 FR 30545. At
that time, the FTC requested comments on any paperwork burdens imposed
by those changes. Id. at 30588. Based on comments received in response
to the Notice, as well as other input from interested parties, the
enforcement agencies are continuing their review of the Report Form.
Any future proposal to change the Form as a result of this review will
include a request for comments on any paperwork burdens imposed by the
proposal.
[[Page 1204]]
This request is for an extension of the Rules and the Form as they
currently exist. This notice proposes no amendments or changes to the
Rules of the Form, nor does it address any of the changes proposed in
1994. The purpose of this notice is simply to comply with those PRA
requirements that will allow the Report Form to be used in its current
format pending any amendments to the Rules or Form.
Estimated Annual Burden Hours: The total estimated burden
associated with completing and filing the Form is 260,443 hours (based
on fiscal year 1997 figures). We have estimated that, depending on a
number of different factors, it takes anywhere from 8 to 160 hours to
complete and file the Form.\1\ The average, based on historical
experience, is approximately 39 hours. In certain circumstances, only
an index or copies of filings made with another regulatory agency are
required to be submitted to the FTC in lieu of the Form (``index
filing''). We have estimated that 2 hours is needed to comply with the
filing requirement in these instances. The enforcement agencies
received notice of 3622 transactions in 1997, of which 59 were reported
to other regulatory agencies. Thus the total 1997 burden was (3517
transactions x 39 hours) + (59 transactions x 2 hours), or 260,443
hours. The increase from the 1994 estimated burden of 107,985 hours
(when OMB clearance was last sought regarding the Form and regulations)
is solely a function of the increase in filings since 1994. Although
the number of reported transactions totaled 3,622 in 1997, because of
variations in the number of filings required for each transaction, the
total number of filings received for these transactions is
approximately 6,734.\2\
---------------------------------------------------------------------------
\1\ These factors include the extent of the filing person's
United States operations; the number of different industries in
which the filing person is engaged; the firm's prior experience and
familiarity with the premerger notification program; the existence
of horizontal overlaps or vertical relationships in the businesses
in which the parties to the transaction derive revenue; and the
organizational structure and recordkeeping system of the reporting
entities.
\2\ For example, of the 3622 transactions reported, 164 were
joint ventures, (c)(6) transactions or (c)(8) transactions; only one
filing is required for each transaction. Of the remaining 3458,
approximately 80 percent, or 2766, require two filings per
transaction: one each from the acquiring person and the acquired
person. The other 20 percent (692) represent certain transactions
for which the consideration given is voting stock. A typical example
of these transactions is the acquisition of company B's voting stock
by company A. As payment for the B stock, A will give the B
sharholders certain shares of company A stock. A shareholder of B
will acquire an amount of company A stock that will require the B
shareholder to submit a separate filing as an acquiring person. For
HSR purposes, the company A/company B filings make up one
transaction, and the B shareholder/company A filings comprise a
second transaction. However, company A generally needs to submit
only one filing for the two transactions. Therefore the two
transactions require three filings, computed as 1.5 filings per
transaction (The 1.5 figure is a slight overestimation, since in
some cases more than one shareholder of company B has a filing
obligation as an acquiring person. Each shareholder's notification
is trated as a separate transaction, and company A's filing as an
acquiring person serves as the acquired party's filing for each of
the shareholder transactions. Thus, for example, four transactions--
a primary transaction with three related shareholder transactions--
may have a total of only five filings.)
---------------------------------------------------------------------------
Estimated Labor Costs: Using the burden hours estimated above, the
total cost associated with the Rule and Form would be approximately
$78,132,000 (260,443 hours x $300 hour). To verify this cost
estimate, staff conducted an informal survey of actual billings by
several antitrust practitioners for preparation of the Form.\3\ These
estimates, based on the type and complexity of each filing \4\ closely
approximated our estimate, based on burden hours. This information is
summarized below. Only the first category, the index filing, has been
determined on an hourly fee basis. The remaining figures are calculated
on the following basis: 6734 filings minus 59 index filings=6675.
\3\ The $45,000 Hart-Scott-Rodino filing fee is not included in
these cost estimates because the fee does not fall within either of
the two cost categories defined by OMB: (1) Total hour burden and
annualized costs of hour burden (labor), and (2) non-labor costs,
consisting of total capital and start-up costs and total operation
and maintenance costs. See OMB Instructions for Completing OMB Form
83-I.
\4\ The survey was based on number of filings because each side
to a transaction is represented by a different law firm. Therefore,
practitioners do not have cost information relating to an entire
transaction.
---------------------------------------------------------------------------
Index filing: 59 x $600 (2 hours @ $300/hr)=$35,400
Simple filings ([35% x 6675] x $2000)=4,672,000
Moderately complex filings ([60% x 6675] x $15,000) = 60,075,000
Very complex filings ([5% x 6675] x $50,000) = 16,700,000
Total: $81,482,400
This estimate is comparable to, although slightly higher than, our
estimate of $78,132,000. We conservatively have adopted the $81,482,400
estimate as the total annual labor cost.
Estimated Capital or Other Non-Labor Costs: The rule imposes no
current start-up costs and minimal capital costs. The Rule first took
effect in 1979, so law firms and companies already have incurred any
necessary start-up costs associated with filing the Form. Moreover, law
firms already have access, for other business purposes, to the ordinary
office equipment needed for compliance, and the Rule has no
consequential effect on the cost of operating and maintaining that
equipment.
2. Title--Negative Option Plans by Sellers in Commerce (``Negative
Option Rule'') 16 CFR Part 425--(OMB Control Number 3084-0104)--
Extension
The Negative Option Rule protects consumers who participate in
negative option plans (e.g., record or book ``clubs''), contractual
arrangements whereby a seller periodically ships merchandise to
subscribers without an affirmative order by the subscriber. The Rule
requires sellers to send an advance notice to subscribers describing
merchandise offered for sale. The subscriber may instruct the seller,
in accordance with the terms of the plan, to refrain from shipping the
merchandise. The Rule also requires that promotional materials disclose
the terms of membership clearly and conspicuously, and establish
procedures for the administration of such ``negative option'' plans.
Estimated Annual Burden Hours: The Rule's estimated annual burden
is approximately 14,375 hours per year. We estimate that approximately
175 existing clubs spend about 75 hours each to comply with the Rule's
disclosure requirements, for a total of 13,125 per year (175 clubs x
75 hours).
We have revised the number of hours from 125 to 75 hours per year
for each existing club to comply with the information collection
requirements contained in the Rule. These clubs should be familiar with
the Rule, which has been in effect since 1974, so their ``burden'' of
compliance has diminished over the years. Also, comments provided to
the FTC indicate that a substantial portion of the existing clubs
likely would now make these disclosures absent any regulatory
requirement because the Rule has assisted in fostering long-term
relationships with consumers.
In addition, approximately 10 new clubs come into existence each
year. These clubs spend about 125 hours complying with the Rule, making
the total hours that new clubs spend per year 1,250 (10 new clubs x
125 hours). For new clubs, we have retained the estimate of
approximately 125 hours to comply with the rule (including start-up
time). The total of 14,375 hours per year for both existing and new
clubs is a reduction from 15,500 burden hours that the FTC estimated in
1995.
Estimated Labor Costs: Total labor costs are approximately $367,697
per
[[Page 1205]]
year. According to the Bureau of Labor Statistics, the average
compensation for advertising managers is $27.88 per hour. Compensation
for clerical personnel is approximately $10,00 per hour. Assuming that
managers perform the bulk of the work, while clerical personnel perform
some associated tasks, such as placing advertisements and responding to
inquiries about offerings or prices, the total cost to the industry for
the Rule's paperwork requirements would be approximately $367,697 (65
hours managerial time x 175 existing negative options plans x
$27.88 per hour = $317,135) plus (10 hours clerical time x 175
existing negative options plans x $10.00 per hour = $17,500) plus
(115 hours managerial time x 10 new negative options plans x $27.88
per hour = $32,062) plus (10 hours clerical time x 10 new negative
options plans x $10.00 per hour = $1,000).
Estimated Capital or Other Non-Labor Costs: Because the Rule has
been in effect since 1974, the vast majority of the negative option
clubs have no current start-up costs. For the few new clubs that enter
the market each year, the capital and start-up costs associated with
the Rule's disclosure requirements, beyond the additional labor costs
discussed above, are de minimis. Negative option clubs already have
access to the ordinary office equipment necessary for compliance with
the Rule.
Similarly, the Rule imposes few, if any, printing and distribution
costs. The required disclosures generally constitute only a small
addition to the materials that a prospective subscriber sends to the
seller to solicit enrollment in a negative option plan. Because
printing and distribution costs are incurred anyway to market the
product, inserting the required disclosures constitutes only a de
minimis incremental expense.
3. Title: Power Output Claims for Amplifiers Utilized in Home
Entertainment Products, 16 CFR Part 432--(OMB Control Number 3084-
0105)--Extension
The Amplifier Rule assists consumers by requiring disclosure of
four performance characteristics whenever representations are made
concerning power output, power band or power frequency, and distortion
characteristics of home audio equipment. The Rule also specifies the
test conditions to be used to obtain the FTC disclosures.
Estimated Burden Hours: The annual burden is approximately 1,500
hours. The Rule's provisions require affected entities to test the
power output of amplifiers in accordance with specified FTC protocol.
Approximately 300 new amplifiers and receivers come on the market each
year. Since high fidelity manufacturers routinely conduct performance
tests as part of any new product development, the Rule imposes
incremental costs only to the extent that the FTC protocol is more
time-consuming than alternative testing procedures. Specifically, a
warm up (``precondition'') period that the Rule requires before
measurements are taken may add approximately one hour to the testing
entails. Thus, we estimate that the Rule imposes approximately 300
hours (1 hour x 300 mew products) of added testing burden annually.
The Rule requires disclosures if an advertisement makes a power
output claim. Assuming that ten advertisements per magazine are placed
each month in ten existing magazines carrying audio equipment
advertisements, we estimate that approximately 1,200 magazine
advertisements annually would be required to carry the FTC disclosures.
The cost of these disclosures is limited to the time needed to draft
and review the language pertaining to power output specifications.
Because this Rule became effective in 1974, and because members of
the industry are familiar with its requirements, compliance is less
burdensome today. Accordingly, we estimate the time involved for this
task to be a maximum of 1 hour per advertisement, for a total burden of
1,200 hours. The total annual burden imposed by the Rule is therefore
approximately 1,500 burden hours. (300 testing hours + 1,200 disclosure
hours). This is a reduction from 2,700 burden hours estimated in 1995.
Estimated Labor Costs: According to staff at the Bureau of Labor
Statistics, the average hourly compensation for electronics engineers
in the industry is $28.73, and the average hourly compensation for
marketing, advertising and public relations managers is $27.88.
Generally, electronics engineers perform the testing of amplifiers and
receivers (300 hours x $28.73 = $8,619.00), and marketing,
advertising or public relations managers prepare advertisements
(including required disclosures) (1,200 hours x $27.88 = $33,456.00).
Based on this information, we estimate the cost to the industry for the
Rule's paperwork requirements to be $42,075.00 per year ($33,456.00 +
$8,619.00).
Estimated Capital or Other Non-Labor Costs: The Rule imposes no
capital or other non-labor costs because its requirements are
incidental to testing and advertising done in the ordinary course of
business.
4. Title: Disclosure Requirements and Prohibition Concerning
Franchising and Business Opportunity Ventures (``Franchise Rule''),
16 CFR Part 436--(OMB Control Number 3084-0107)--Extension
The Franchise Rule requires franchisors and franchise brokers to
furnish to prospective investors a disclosure document that provides
information relating to the franchisor, the franchisor's business, and
the nature of the proposed franchise relationship, as well as
additional information about any claims concerning actual or potential
sales, income, or profits for a prospective franchisee (``earnings
claims''). Franchisors must also preserve the information that forms a
reasonable basis for such claims. The Rule is designed to help
potential investors protect themselves from fraudulent claims.
Estimated Annual Burden Hours: The estimated annual burden imposed
by the Rule is 33,500 hours. Based upon our review of trade
publications and information from state regulatory authorities, we
estimate there are approximately 5,000 American franchise systems,
consisting of 3,500 business format franchises and 1,500 business
opportunity sellers.
Approximately 10% of all franchisors, or 500 franchisers, sell
exclusively in states that do not impose franchise disclosure
requirements comparable to those of the Rule. These firms are subject
to compliance burdens imposed solely by the Commission's Rule. These
firms may spend anywhere from 3-100 hours to comply with the Rule's
disclosure requirements, which require, among other things, the
disclosure of information about the business experience of the
franchisor and the franchisor's directors and key executives; the
litigation history of the franchisor and its directors and key
executives; and the money required to be paid by the franchisee to
obtain or start the franchise. We estimate the Rule compliance requires
an average of 30 hours annually for each of these 500 franchisors,
resulting in a total burden of approximately 15,000 hours.
On the other hand, a number of states impose requirements similar
to those of the Rule. In these instances, the Commission's Rule creates
little additional regulatory burden on most major franchisors. The Rule
requires that such firms need only provide an ``FTC'' cover sheet that
identifies the franchisor, the date the document is issued, a table of
contents, and a notice that tracks language specifically provided in
the Rule. This additional
[[Page 1206]]
compliance burden is de minimis. Language supplied by the government
for the purpose of disclosure to the public is excluded from the
definition of ``collection of information'' under the PRA. 5 CFR
1320.3(c)(2). Nonetheless, we estimate that any additional time imposed
by the remaining required disclosures can be handled by clerical staff
and would be no more than 3 hours per year, for a total of 13,500
burden hours (4.500 franchisors x 3 hours = 13,500).
The Rule also contains some recordkeeping provisions. Any
recordkeeping effort that would be incurred in the ordinary course of
business does not constitute ``burden'' under the PRA. 5 CFR
1320.3(b)(2). This would usually be the case; however, there may be
some recordkeeping effort that is incurred solely because of the Rule.
We estimate that firms would spend no more than 1 hour per year on any
additional compliance burden, for a recordkeeping burden of 5,000
hours. The total burden for the Rule, therefore, is 33,500 hours.
Estimated Annual Labor Costs: The estimated annual labor cost is
approximately $3,935,000, consisting of $3,885,000 for disclosure
requirements ($250 per hour attorney time x 15,000 hours); $135,000
for the FTC cover sheet (13,500 hours per year x $10.00 per hour
clerical time); and $50,000 for recordkeeping costs (5,000 hours per
year x $10.00 per hour clerical time).
Estimated Capital and Other Non-Labor Costs: The estimated capital
and other non-labor costs are approximately $1,500,000, consisting
entirely of printing costs ($25.00 per document x 100 copies x 500
franchisors = $1,250,000) + ($.50 per FTC cover sheet x 100 copies
x 4,500 firms=$250,000). Besides these costs, compliance with the Rule
imposes few or no additional non-labor cost burdens beyond what
franchisors ordinarily spend in the course of operating their business
(such as purchasing computer equipment) or to comply with state
disclosure laws (such as the costs to prepare audited financial
statements).
In 1995, the agency requested a burden estimate of 36,000 burden
hours. We have revised that figure to 33,500 hours because a review of
the 1995 submission revealed that some hours were inadvertently
assigned to burden solely attributable to state requirements.
5. Title: Labeling and Advertising of Home Insulation (``R-Value
Rule''), 16 CFR Part 460--(OMB Control Number 3084-0109)--Extension
The R-Value Rule establishes uniform standards for the
substantiation and disclosure of accurate, material product information
about the thermal performance characteristics of home insulation
products. The R-value of an insulation product signifies the
insulation's degree of resistance to the flow of heat. This information
tells consumers how well a product is likely to perform as an insulator
and allows consumers to determine whether the cost of the insulation is
justified.
Estimated Annual Burden Hours: The Rule's requirements include
product testing, recordkeeping, and third-party disclosures on labels,
fact sheets, advertisements and other promotional materials. These
requirements apply to certain manufacturers and their testing
laboratories; home insulation installers; new home sellers who make
energy savings claims; and retailers who sell home insulation for do-
it-yourself installation by consumers.
Based on information provided by members of the insulation
industry, staff estimate that the Rule affects: (1) 150 insulation
manufacturers and their testing laboratories; (2) 1,500 installers who
sell home insulation; (3) 130,000 new home builders/sellers of site-
built home and approximately 7,000 dealers who sell manufactured
housing; and (4) 25,000 retail sellers who sell home insulation for
installation by consumers.
Manufacturers and Testing Laboratories: Under the Rule's testing
requirements, manufacturers must test each insulation product for its
R-value. The test takes approximately 2 hours. Approximately 15 of the
150 insulation manufacturers in existence introduce one new product
each year. The total annual testing burden is therefore approximately
30 hours (15 manufacturers x 2 hours per test).
As for third-party disclosure requirements in advertising and other
promotional materials, staff estimate that most manufacturers spend an
average of approximately 20 hours per year to comply with this
requirement. Only the five or six largest manufacturers require
additional time (approximately 80 hours each). Thus, the annual third-
party disclosure burden for manufacturers is approximately 3,360 hours
(144 manufacturers x 20 hours + 6 manufacturers x 80 hours).
While the Rule imposes recordkeeping requirements, most
manufacturers and their testing laboratories keep these records of
testing in the ordinary course of business. Staff estimate that no more
than one additional hour per year per manufacturer is necessary to
comply with this requirement, for an annual recordkeeping burden of
approximately 150 hours (150 manufacturers x 1 hour).
Installers: Installers are required to show the manufacturers'
insulation fact sheet to retail consumers prior to purchase. Installers
must also disclose information in contracts or receipts concerning the
R-value and the amount of insulation to be installed. Staff estimate
that two minutes per sales transaction is sufficient for complying with
these requirements. Approximately 835,000 retrofit insulations are
installed by approximately 1,500 installers per year, and therefore,
the annual burden is approximately 27,833 hours (835,000 sales
transactions x 2 minutes). Staff also estimate that one hour per hour
year per installer is sufficient for including required disclosures in
advertisements and other promotional materials. The burden for their
requirement is approximately 1,500 hours per year (1,500 installers x
1 hour).
Also, installers must keep records that indicate substantiation
relied upon for savings claims. The addition time for complying with
this requirement is minimal, approximately 5 minutes per year per
installer, for a total of approximately 125 hours (1,500 installers x
5 minutes).
New Home Sellers: New home sellers must make contract disclosures
concerning the type, thickness and R-value of the insulation they
install in each part of a new home. Staff estimate that no more than
one minute per sales transaction is required to comply with this
requirement, for a total annual burden of approximately 283,333 hours
(1.7 million new home sales x 1 minute).
New home sellers who make energy savings claims must also keep
records regarding the substantiation relied upon for those claims.
Because few new home sellers make these claims, and the ones that do
would likely keep these records anyway in the ordinary course of
business, staff estimate that one minute burden for disclosures would
be more than adequate to cover this recordkeeping requirement, as well.
Retailers: The Rule requires that the approximately 25,000
retailers who sell home insulation make fact sheets available to
consumers prior to purchase. This can be accomplished by i.e., placing
copies in a display rack, or keeping copies in a binder on a service
desk with an appropriate notice. Replenishing or replacing fact sheets
takes approximately one hour per year per retailer, for a burden
estimate of approximately 25,000 annual hours (25,000 retailers x 1
hour).
[[Page 1207]]
The Rule also requires specific disclosures in advertisements or
other promotional materials to ensure that the claims are fair and not
deceptive. This burden is extremely small because retailers typically
use advertising copy provided by the insulation manufacturer, and even
when retailers prepare their own advertising copy, the Rule provides
some of the language to be used. Accordingly, approximately one hour
per year per retailer is sufficient for compliance with this
requirement, for a total annual burden of approximately 25,000 hours.
Retailers who make energy savings claims in advertisements or other
promotional materials must keep records that indicate the
substantiation they are relying upon. Because few retailers make these
types of promotional claims and because the Rule permits retailers to
rely on the insulation manufacturer's substantiation data for any
claims that are made, the additional recordkeeping burden is de
minimis. The time calculated for disclosures, above, would be more than
adequate to cover any burden imposed by this recordkeeping requirement.
To summarize, staff estimates that the Rule impose a total of
366,331 burden hours, as follows: 150 recordkeeping and 3,390 testing
and disclosure hours for manufacturers; 125 recordkeeping and 29,333
disclosure hours for installers; 283,333 disclosure hours for new home
sellers; and 50,000 disclosure hours for retailers. This figure has
been rounded to 366,400 burden hours.
Estimated Annual Labor Costs: The total annual labor costs for the
Rule's information collection requirements is $7,290,030, derived as
follows: $600 for testing, based on 30 hours for manufacturers (30
hours x $20 per hour for skilled technical personnel); $2,750 for
complying with the recordkeeping requirements of the Rule, based on 275
(275 hours x $10 per hour for clerical personnel); $33,360 for
manufacturers' compliance with third-party disclosure requirements,
based on 3,360 hours (3,360 hours x $10 per hour for clerical
personnel); and $7,253,350 for compliance by installers, new home
sellers, and retailers with third-party disclosure requirements, based
on 362,666 hours (362,666 hours x $20 per hour for sales persons).
Estimate of Capital and Other Non-Labor Costs: There are no
significant current capital or other non-labor costs associated with
this Rule. Because the Rule has been in effect since 1980, members of
the industry are familiar with its requirements and already have in
place the equipment for conducting tests and storing records. New
products are introduced infrequently. Because the required disclosures
are placed on packaging or on the product itself, the Rule's additional
disclosure requirements do not cause industry members to incur any
significant additional non-labor associated costs.
6. Title: FTC Administrative Activities (OMB Control Number 3084-
0047)--Extension
Currently, the FTC has OMB clearance for certain administrative
and/or procedural activities relating to: (1) FTC procurement
activities; (2) the document order form used by the FTC public
reference branch; (3) applications to the Commission, including
applications and notices contained in the Commission's Rules of
Practice (primarily Parts I, II, and IV); and (4) rules governing
claims against the FTC under the Equal Access to Justice Act.
The FTC seeks to delete items (1), (2), and (4). With respect to
item (1), OMB has advised the FTC that it must seek clearance only for
any agency-unique information collections that have been published as a
supplement to the Federal Acquisition Regulations. The FTC has no such
supplement and accordingly, there is no requirements to obtain OMB
approval. Deleting this item eliminates 1,000 of 2,300 hours estimated
in the FTC's 1995 submission for OMB Control No. 3084-0047.
With respect to item (2), FTC Form 14 is excluded from the PRA's
definition of ``information'' because the form asks only for the
respondent's name, address, a description of the records and the number
of copies requested. See 5 CFR 1320.3(h)(1) (the definition of
``information'' excludes an ``affidavit'' or ``certification'' that
asks the respondent for identifying information such as his or her
name, address, the date, and the nature of the instrument); OMB
Implementing Guidance to the Paperwork Reduction Act of 1995
(Preliminary Draft), February 3, 1997 (certain other information, such
as quantity, quality, or location, may also be excluded). Deleting this
item eliminates another 1,000 or 2,300 hours.
With respect to item (4), the ``law enforcement'' exception of the
PRA excludes this category, because it involves collecting information
during the conduct of a Federal investigation, civil action,
administrative action, investigation, or audit with respect to a
specific party, or subsequent adjudicative or judicial proceeding
designed to determine fines or other penalties. See 5 CFR 1320.4(a)(1)-
(3). Deleting this item eliminates another 200 hours of the 2,300 hours
previously estimated for this submission.
With respect to item (3), the FTC is requesting an extension for
those provisions covered by that category. Several of the Commission's
rules contain provisions that allow certain modifications to, or
exemptions from, a rule. For example, part 901 of the Commission's
rules, 16 CFR part 901, implementing the Fair Debt Collection Practices
Act, 15 U.S.C. 1692, sets forth the procedures and standards for
approving petitions received from a state that is requesting permission
to apply state law in lieu of federal standards.
Estimated Annual Burden Hours: Most applications to the Commission
generally fall within the ``law enforcement exception'' discussed
above, and those that are not rare and burden associated with them is
de minimis. For example, over the last decade, the Commission has
received only one application for an exemption under the Fair Debt
Collection Practices Act provisions. Staff has estimated that such a
submission can be completed well within 50 hours. Applications and
notices to the Commission contained in other rules (generally in Parts
I, II, and IV of the Commission's Rules of Practice) are also
infrequent and difficult to quantify. An example is a request for a
waiver of costs for obtaining Commission records. See 16 CFR 4.8(e).
Nonetheless, in order to cover any potential ``collections of
information'' for which we have not otherwise requested clearance, we
are requesting a total of 100 burden hours as an estimate of the time
needed to submit any relevant responses.
Estimated Annual Labor Costs: Based on 100 burden hours, and an
hourly rate of $250 for attorney time, we estimate the annual cost
burden to be no more than $25,000.
Estimated Capital and Start-Up Costs/Operation and Maintenance: Not
applicable.
Debra A. Valentine,
General Counsel.
[FR Doc. 99-384 Filed 1-7-99; 8:45 am]
BILLING CODE 6750-01-M
