[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Proposed Rules]
[Pages 14049-14050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7434]
[[Page 14049]]
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FEDERAL TRADE COMMISSION
16 CFR Part 304
Request for Comments Concerning Rules and Regulations Under the
Hobby Protection Act
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Request for public comments.
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SUMMARY: The Federal Trade Commission requests public comments on its
Rules and Regulations Issued Under the Hobby Protection Act (``the
Rule''). The Commission, as a part of its systematic review of all
current Commission regulations and guides, requests comments about the
overall costs, benefits, and regulatory and economic impact of the
Rule. Further, the Commission, as mandated by the Regulatory
Flexibility Act, 5 U.S.C. 601, seeks information about the impact of
the Rule on small business firms.
DATES: Written comments will be accepted until May 27, 1997.
ADDRESS: Comments should be should be identified as ``16 CFR Part 304--
Comment'' and sent to: Secretary, FTC, Room H-159, Sixth and
Pennsylvania Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT: Robert E. Easton, Special Assistant,
Division of Enforcement, Bureau of Consumer Protection, FTC,
Washington, D.C. 20580, (202) 326-3029.
SUPPLEMENTARY INFORMATION: The Commission has determined, as part of
its oversight responsibilities, to review its rules and guides
periodically to seek information about their costs and benefits and
their regulatory and economic impact. The information obtained will
assist the Commission in identifying rules and guides that warrant
modification or rescission. Where appropriate, the Commission will
combine such periodic general reviews with reviews seeking information
about the economic impact of the rule on small business firms as
required by the Regulatory Flexibility Act.
A. Background
On November 29, 1973, Congress passed the Hobby Protection Act
(``Act''), 15 U.S.C. 2101-2106. The Act requires manufacturers and
importers of ``imitation political items'' \1\ to mark ``plainly and
permanently'' such items with the ``calendar year'' such items were
manufactured. 15 U.S.C. 2101(a). The Act also requires manufacturers
and importers of ``imitation numismatic items'' \2\ to mark ``plainly
and permanently'' such items with the word ``copy.'' 15 U.S.C. 2101(b).
The Act further provides that the Commission is to promulgate
regulations for determining the ``manner and form'' imitation political
items and imitation numismatic items are to be permanently marked with
the calendar year of manufacture or the word ``copy.'' 15 U.S.C.
2101(c).
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\1\ An imitation political item is ``an item which purports to
be, but in fact is not, an original political item, or which is a
reproduction, copy, or counterfeit of an original political item.''
15 U.S.C. 2106(2).
\2\ An imitation numismatic item is ``an item which purports to
be, but in fact is not, an original numismatic item or which is a
reproduction, copy, or counterfeit of an original numismatic item.''
15 U.S.C. 2106(4).
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Pursuant to the Act, in 1975 the Commission issued Rules and
Regulations under the Hobby Protection Act, 16 CFR Part 304. The Rule
tracks the definitions of terms used in the Act and implements the
Act's ``plain and permanent'' marking requirements by establishing the
sizes and dimensions of the letters and numerals to be used, the
location of the marking on the item, and how to mark incusable and
nonincusable items. In 1988, the Rule was amended to provide additional
guidance on the minimum size of letters for the word ``copy'' as a
proportion of the diameter of the diameter of coin reproductions.\3\ 53
FR 38942 (1988).
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\3\ Prior to the amendment, if a coin were too small to comply
with the minimum letter size requirements, the manufacturer or
importer had to individually request from the Commission a variance
from those requirements. Because imitation miniature coins were
becoming more common, the Commission determined that it was in the
public interest to allow the placing of the word ``copy'' on
miniature imitation coins in sizes that could be reduced
proportionately with the size of the item.
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In preparation for the reviews of the Rule, staff undertook a
limited inquiry to ascertain the degree of compliance with the Rule.
Based on this inquiry, it appears that there is a high level of
compliance with the Rule, both as to imitation political items and
imitation numismatic items.
B. Issues for Comment
The Commission solicits written public comments on the following
questions:
(1) Do there continue to be reasons for legislative and regulatory
intervention in the sale and marking of imitation political items and
imitation numismatic items, but not for other items collected by
hobbyists (e.g., stamps)? If so, please explain.
(a) What benefits has the Rule provided to purchasers of the
products or services affected by the Rule?
(b) Has the Rule imposed costs on purchasers?
(2) What changes, if any, should be made to the Rule to increase
the benefits of the Rule to purchasers?
(a) How would these changes affect the costs the Rule imposes on
firms subject to its requirements?
(3) What significant burdens or costs, including costs of
compliance, has the Rule imposed on firms subject to its requirements?
(a) Has the Rule provided benefits to such firms?
(4) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on firms subject to its requirements?
(a) How would these changes affect the benefits provided by the
Rule?
(5) Does the Rule overlap or conflict with other federal, state, or
local laws or regulations?
(6) Since the Rule was issued, what effects, if any, have changes
in relevant technology or economic conditions had on the Rule?
(7) What significant burdens or costs, including costs of
compliance, has the Rule imposed on small firms subject to its
requirements?
(a) How do these burdens or costs differ from those imposed on
larger firms subject to the Rule's requirements?
(8) To what extent are the burdens or costs that the Rule imposes
on small firms similar to those small firms would incur under standard
and prudent business practices?
(9) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on small firms?
(a) How would these changes affect the benefits of the Rule?
(b) Would such changes adversely affect the competitive position of
larger firms?
(10) The Rule currently mandates the minimum sizes for the calendar
year to be marked on imitation political items and for the word
``copy'' to be marked on imitation numismatic items.
(a) Should the Commission amend the Rule to replace the mandated
minimum sizes with a performance based standard (e.g., clear and
prominent disclosure)?
(b) If so, what should the performance based standard be?
(c) What would be the costs and benefits of the proposed
performance based standard?
List of Subjects in 16 CFR Part 304
Hobbies, Labeling, Trade practices.
Authority: 15 U.S.C. 41-58.
[[Page 14050]]
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 97-7434 Filed 3-24-97; 8:45 am]
BILLING CODE 7518-01-M
