[Federal Register Volume 60, Number 30 (Tuesday, February 14, 1995)]
[Proposed Rules]
[Pages 8312-8313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3536]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 60, No. 30 / Tuesday, February 14, 1995 /
Proposed Rules
[[Page 8312]]
FEDERAL TRADE COMMISSION
16 CFR Part 307
Regulations Under the Comprehensive Smokeless Tobacco Health
Education Act of 1986
agency: Federal Trade Commission.
action: Notice of proposed rulemaking.
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summary: On March 20, 1991, the Federal Trade Commission (``the
Commission'') issued final regulations (56 FR 11653) amending 16 CFR
part 307, the Commission's existing regulations pursuant to the
Comprehensive Smokeless Tobacco Health Education Act of 1986 (``the
Smokeless Tobacco Act''). The amendments deleted the exemption of
utilitarian objects from the regulations, and provided a method for
displaying and rotating the health warnings on utilitarian objects. The
amendments also changed the requirements for the rotation of the health
warnings on point-of-sale and non-point-of-sale promotional materials
(``promotional materials''). On January 15, 1993, the Commission
deleted the promotional materials portion of the 1991 amendment,
indicating that it had failed to receive sufficient comment on this
portion of the Regulation. At the same time, the Commission re-proposed
its 1991 rule for promotional materials warning label rotations and
sought comment. Some of the comments received suggested that the
Commission should not only amend the rotational schedule for
promotional materials, but also amend the regulations governing the
rotation of utilitarian objects. Thus, the Commission is seeking public
comment on whether the regulations governing the rotation schedule for
utilitarian objects should be amended.
All persons are hereby notified of the opportunity to submit
written data, views, and arguments concerning the requirements for the
rotation of health warnings on utilitarian objects.
dates: Written comments will be accepted on or before April 17, 1995.
addresses: Send comments to Secretary, Federal Trade Commission, 6th
and Pennsylvania Avenue NW., Washington, DC 20580.
for further information contact: Phillip S. Priesman, Attorney, (202)
326-2484, Division of Advertising Practices, Federal Trade Commission,
6th & Pennsylvania Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Section A--Background
On January 15, 1993, the Commission proposed amending 16 CFR part
307 (58 FR 4874) to modify the rotational schedule for health warnings
on promotional materials. Some of the comments received suggested that
the Commission should not only amend the rotational provisions for
promotional materials, but also amend the regulations governing the
rotation of utilitarian objects.
The proposed rule would provide that a satisfactory plan for
utilitarian objects could provide for rotation according to either the
date the object is disseminated or the date the object is ordered. It
would also delete the exception permitting random rotation under
certain circumstances. This exception was intended to alleviate the
hardship caused when date of dissemination was specified as the only
acceptable basis for a rotation schedule. The Commission currently
permits rotation methods based on dissemination date or order date for
promotional materials. See 58 FR 4874 (Jan. 15, 1993). The proposed
rule for utilitarian items follows the rotation method currently in
effect for promotional materials. However, the proposed rule would
permit rotation based on dissemination date or order date only if the
production of materials is carried out in a manner consistent with
customary business practices. Thus, under the proposed rule, there
would no longer be any need for random rotation. For these reasons, the
Commission is proposing the deletion of the random rotation exception
from the regulations.
Section B--Questions
In particular, the Commission is soliciting information on the
following questions:
Question 1. What is the likely effect of the proposed requirements
for the rotation of health warnings or utilitarian objects on the
costs, profitability, competitiveness, and employment of small business
entities?
Question 2. The Smokeless Tobacco Act requires smokeless tobacco
companies to submit plans to the Commission that specify the method the
companies will use to rotate, display, and distribute the required
health warning statements on their packaging and advertising. The
original requirement for the submission of plans by marketers of
smokeless tobacco products was submitted to, and approved by, the
Office of Management and Budget. OMB Control No. 3084-0082.
By changing the requirements for the rotation of the health
warnings on utilitarian objects, the proposed amendments will require
some of the smokeless tobacco companies to revise their rotational
plans for utilitarian objects. What are the possible paperwork burdens
that the proposed utilitarian objects amendment to 16 CFR Part 307 may
impose?
Question 3. What are the possible regulatory alternatives that
would reduce the economic impact of the proposed rotational
requirements for warning labels on utilitarian objects, yet fully
implement the regulatory mandate of the Smokeless Tobacco Act?
Section C--Regulatory Flexibility Act
When the Smokeless Tobacco Regulations were first proposed, the FTC
certified that the Regulatory Flexibility Act requirement for
regulatory analysis was not applicable because the regulations did not
appear to have a significant economic impact on a substantial number of
small entities. 51 FR 24378 (1986). The Commission has re-examined that
issue with respect to the proposed amendment for utilitarian objects
and has preliminarily determined that the proposed amendment will not
change that determination because the amendment merely enables
manufacturers of smokeless tobacco to modify slightly an already
existing schedule by which they rotate the three required warnings on
utilitarian objects. In order to ensure, however, that no substantial
economic impact is being overlooked, public comment is requested on the
effect of the proposed regulations on costs, profitability,
[[Page 8313]] competitiveness, and employment of small entities.
Subsequent to the receipt of public comments, it will be decided
whether the preparation of a final regulatory flexibility analysis is
warranted.
In light of the above, it is certified that the proposed amendments
will not have a significant economic impact on a substantial number of
small entities. 5 U.S.C. 605(b) (1982). This notice serves as
certification to that effect for the purposes of the Small Business
Administration.
List of Subjects in 16 CFR Part 307
Health warnings, Smokeless tobacco, Trade practices.
Accordingly, it is proposed that part 307 of 16 CFR be amended as
follows:
PART 307--REGULATIONS UNDER THE COMPREHENSIVE SMOKELESS TOBACCO
HEALTH EDUCATION ACT OF 1986
1. The authority for part 307 continues to read as follows:
Authority: 15 U.S.C. 4401 et seq.
2. Section 307.12 is amended by revising paragraph (b) to read as
follows:
Sec. 307.12 Rotation, display, and dissemination of warning statements
in smokeless tobacco advertising.
* * * *
[b] Each manufacturer, packager, or importer of a smokeless tobacco
product must submit a plan to the Commission or its designated
representative that ensures that the three warning statements are
rotated every 4 months in alternating sequence. There may be more than
one system, however, that complies with the Act and these regulations.
For example, a plan may require all brands to display the same warning
during each 4-month period or require each brand to display a different
warning during a given 4-month period. A plan shall describe the method
of rotation and shall include a list of the designated warnings for
each 4-month period during the first year for each brand. A plan shall
describe the method that will be used to ensure the proper rotation in
different advertising media in sufficient detail to ensure compliance
with the Act and these regulations, although a number of different
methods may satisfy these requirements. For example, a satisfactory
plan for advertising in newspapers, magazines, or other periodicals
could provide for rotation according to either the cover or closing
date of the publication. A satisfactory plan for posters and placards,
other than billboard advertising, could provide for rotation according
to either the scheduled or the actual appearance of the advertising. A
satisfactory plan for point-of-sale and non-point-of-sale promotional
materials each as leaflets, pamphlets, coupons, direct mail circulars,
paperback book inserts, or non-print items, or for utilitarian objects,
could provide for rotation according to the date the materials or
objects are ordered by the smokeless tobacco manufacturer, or the date
the objects or materials are scheduled to be disseminated, provided
that the production of such materials or objects is carried out in a
manner consistent with customary business practices.
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-3536 Filed 2-13-95; 8:45 am]
BILLING CODE 6750-01-M
