[Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
[Notices]
[Pages 44349-44356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21165]
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FEDERAL TRADE COMMISSION
Paperwork Reduction Act Applications
AGENCY: Federal Trade Commission.
ACTION: Notice of application to OMB under the Paperwork Reduction Act
(44 U.S.C. 3501-3520) for clearance of information collection
requirements contained in twenty-four regulations issued or enforced by
the Commission. The Commission is also applying to OMB for clearance of
information collection requirements imposed during the performance of
administrative or procedural tasks.
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SUMMARY: The FTC is seeking OMB clearance for provisions of several
regulations, issued or enforced by the Commission, that contain or may
contain requirements for the collection of information under the
Paperwork Reduction Act (``PRA''). The Paperwork Reduction Act has been
amended to redefine ``collection of information'' to include
``disclosure to third parties or the public.'' This amendment serves to
overturn the Supreme Court decision in Dole v. United Steelworkers of
America, 494 U.S. 26 (1990), which held that such disclosures were not
subject to the PRA.
In light of the amendment, the FTC is seeking to modify current OMB
clearances by revising its estimates of burdens to include provisions
requiring disclosures to consumers or other third parties. The FTC is
also seeking approval for other disclosure requirements contained in
rules that do not have current OMB clearance. Further, some requests
for clearance include recordkeeping and reporting requirements.
The FTC is also seeking OMB clearance for information collection
requests imposed during the performance of administrative or procedural
tasks. This information is submitted voluntarily to the Commission by
persons who wish to do business with or receive some benefit from the
agency. Because of the limited burden imposed, these requests have been
combined into a single item. See item number 25, infra.
Expansion of the PRA to include disclosure requirements has
substantially increased the reportable burden hours attributable to the
regulations enforced by the Commission. Disclosure requirements
specifically mandated by Congress account for much of this increase. Of
the twenty-four regulations addressed by this notice of application,
eleven entail burden estimates associated with statutorily required
disclosure provisions. For example, the Truth-in-Lending, Textile Act,
and Fair Packaging Regulations all involve large burden estimates,
totaling approximately 69 million burden hours.
[[Page 44350]]
Much of this burden reflects statutory provisions that require the
disclosure of such basic consumer information as the annual percentage
interest rate charged on loans, the composition of clothing and other
textile items, and the size and content of packaged products. While the
burden imposed on any individual party is often quite small (sometimes
measured in seconds), the number of affected parties is often very high
(sometimes measured in millions), and the total burden is therefore
large. See e.g., the Regulations implementing the Equal Credit
Opportunity Act, the Electronic Fund Transfer Act, and the Consumer
Leasing Act.
Additionally, the burden estimates in this application are larger
than in the past because the Commission is seeking clearance for
certain statutory recordkeeping and reporting requirements that were
not previously submitted to OMB. Examples include the regulations under
the Textile, Wool, and Fur Acts, totaling approximately 1,500,000
burden hours.
At this time, the Commission is seeking clearance for all statutory
mandated ``collections of information'' contained in its rules.
Individual Supporting Statements that detail each burden estimate and
affected entities have been provided to OMB for review. Copies of these
Supporting Statements may be obtained in the Public Reference Section,
Room 130, Federal Trade Commission.
DATES: Comments on this application must be submitted on or before
September 25, 1995.
ADDRESSES: Send comments both to the Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 3228, Washington, DC 20503, ATTN: Desk Officer
for the Federal Trade Commission, and to the Office of the General
Counsel, Federal Trade Commission, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Elaine W. Crockett, Attorney, Office of General Counsel, Federal Trade
Commission, Washington, DC 20580 (202)-326-2453.
SUPPLEMENTARY INFORMATION:
The following rules will be affected:
1. The Games of Chance Rule, 16 CFR part 419, establishes both
recordkeeping and disclosure requirements for food and gasoline
retailers in conducting and advertising games of chance. The Rule
requires that games promoters retain records showing compliance with
certain provisions, and identify winners, prizes, and number of game
pieces. The recordkeeping requirements assist in the enforcement of the
Rule.
The Rule also requires that games promoters disclose the odds-of-
winning and other prize information in broadcast and print
advertisements. Promoters must also post a winners' list, containing
the names and addresses of winners, the prizes won, and the number of
game pieces. The disclosure requirements assist customers in
determining both the likelihood of winning prizes and the legitimacy of
the game.
Estimate of Information Collection Burden. The FTC has current OMB
approval of 4,500 hours relating to the Rule's recordkeeping provisions
(control number 3084-0067). The FTC is seeking approval to add 3,750
burden hours relating to disclosure requirements, for a total burden of
8,250 hours.
Approximately 30 independent firms contract to conduct an average
of 50 promotions per year. Most of these firms already calculate the
information required by the Rule in the ordinary course of business in
order to determine the contract price to charge the client for the game
and to protect the integrity of the game if it is challenged by a
private legal action. Accordingly, the FTC estimates that the
additional burden of disclosing this information to third parties is
approximately 2.5 hours per promotion, for an additional total burden
of 3,750 hours.
Disclosures: Approximately 30 game promoters conduct an average of
50 games per year at an average burden of 2.5 hours.
2. The Funeral Rule, 16 CFR part 453, prohibits as unfair or
deceptive acts or practices a variety of misrepresentations and other
practices in the sale of funeral goods and services. The Rule requires
funeral providers to give to consumers lists that display prices for
individual funeral goods and services (such as the price for embalming
or the price for use of funeral home facilities during the funeral
ceremony) and a statement showing the items that were actually
purchased by the consumer. The price lists and statements also contain
several disclosures about basic funeral-related legal requirements. The
disclosure requirements enable consumers to make reasoned purchasing
decisions.
Funeral providers must also retain copies of the price lists and
the ``statements of goods and services selected'' for a one-year
period. These recordkeeping requirements assist the Commission in the
enforcement of the Rule.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 21,000 hours relating to recordkeeping provisions (control
number 3084-0025). The FTC seeks to modestly adjust the recordkeeping
burden estimate to 22,300 hours and to add 54,050 burden hours relating
to disclosure requirements, for a total burden of 76,350 hours.
The recordkeeping estimate is consistent with the 1988 estimate for
recordkeeping hours. Much of this information is already kept during
the ordinary course of business for tax purposes or other business
reasons. While the precise amount of time needed to retain the records
required by the Rule would vary from one funeral provider to another,
the incremental time attributed to the Rule should not exceed an
average of one hour per funeral provider per year.
The disclosure estimate is based on the amount of time required to
update price lists as services or prices change. This amount of time
would also vary from one funeral provider to another; however, the FTC
estimates that an average of 2 hours per funeral provider per year
would be necessary to comply with these disclosure requirements.
Recordkeeping: Approximately 22,300 funeral providers retain
required records at an average burden of 1 hour per year. Disclosures:
Funeral providers disclose required information to customers at an
average burden of 2 hours per year.
3. The Equal Credit Opportunity Act (``ECOA''), 15 U.S.C. 1691 et
seq., prohibits discrimination in the extension of credit on the basis
of sex, marital status, race, color, religion, national origin, age,
derivation of income from a public assistance program, or good faith
exercise of any right under the Consumer Credit Protection Act.
Regulation B, 12 CFR part 202, promulgated by the Board of Governors of
the Federal Reserve System, implements the ECOA. Among other things,
Sec. 202.12 of Regulation B requires creditors to retain records
relating to consumer credit applications for 25 months, and records of
business credit applications for 12 months. Section 202.13 of
Regulation B requires creditors that receive mortgage credit
applications to record the applicant's race or national origin, sex,
marital status, and age. These requirements assist in enforcement of
the Act and implementing Regulation.
Regulation B also has two primary disclosure provisions, both of
which are statutorily required. First, creditors are required to
provide applicants with information about adverse credit actions. 15
U.S.C. 1691(d). Second, creditors are required to provide notification
to mortgage credit
[[Page 44351]]
applicants concerning appraisal reports. 15 U.S.C. 1691(e). These
disclosure requirements assist consumers in understanding their rights
under the ECOA. They also assist the Commission in detecting unlawful
discrimination.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 1,004,000 hours relating to recordkeeping provisions and
requirements to collect information about an applicant's race/national
origin, sex, age, and marital status (control number 3084-0087). The
FTC is seeking approval to add 13,400,000 hours relating to disclosure
requirements, for a total burden of 14,400,000 hours.
In 1988, the FTC estimated Regulation B's recordkeeping burden to
be 1,000,000 hours. At that time, the FTC also allocated 4,000 hours to
collecting information about race/national origin, sex, age, and
marital status. The FTC is now recalculating the burden estimate for
this requirement. The credit industry has experienced significant
growth in recent years and the FTC now estimates that approximately
4,000 creditors are subject to this requirement and that approximately
4 million credit applications are affected by this requirement. Because
Regulation B contains a model form that creditors may use to collect
the information, staff estimates that the burden associated with this
recordkeeping requirement is no more than one minute for each
application for a burden total of 66,700 hours.
The disclosures which account for the additional hours are all
specifically mandated by the ECOA. Appoximately 1 million creditors are
subject to the requirement to provide notice of adverse credit action
and 200 million accounts are covered by this requirement. Because the
Regulation provides model forms for these notices, the burden of
providing notice of adverse action is estimated to be 4 minutes for
each application, for a burden total of 13.3 million hours.
The other disclosure requirement under Regulation B involves
providing appraisal reports to consumers. The FTC estimates that 4,000
creditors and 4 million mortgage credit applications are subject to
this requirement. Because creditors have the option to include the
required notice on other forms that would be provided to the consumer
during the ordinary course of business, the additional burden of making
this disclosure is estimated to be 15 seconds for each application, for
a total burden estimate of 16,666 hours.
Disclosures: Approximately 4,000 mortgage credit firms collect
information about approximately 4 million credit applications at a
burden estimate of 1 minute per collection. Approximately 1 million
credit firms provide notices of adverse action to approximately 200
million accounts per year at an average burden estimate of 15 seconds
per notice. Approximately 4,000 mortgage credit firms provide notices
concerning approximately 4 million applications at an average burden of
15 seconds per notice.
4. The Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq.
(``EFTA''), requires accurate disclosure of the costs, terms and rights
relating to electronic fund transfer (EFT) services to consumers.
Regulation E, promulgated by the Board of Governors of the Federal
Reserve System, implements the EFTA. Regulation E contains several
disclosure requirements relating to the terms and conditions of
electronic fund transfers services. For example, among other
disclosures, Regulation E requires financial institutions to (1) make
initial disclosures to a customer about the terms and conditions of
electronic fund transfer accounts; (2) deliver written notices
concerning changes in certain terms or conditions in the customer's
account; and (3) send periodic statements to customers concerning any
account to or from which electronic fund transfers can be made. The
disclosure requirements of Regulation E assist consumers in assessing
the costs and terms of EFT services.
The vast majority of Regulation E's disclosure requirements are
expressly mandated by the EFTA. See, e.g., consumer liability for
unauthorized use, 15 U.S.C. 1693g; initial disclosures, 15 U.S.C.
1693c(a); and documentation of transfers and receipts.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 500,000 hours relating to recordkeeping provisions
(control number 3084-0085). The FTC is seeking approval to add
20,000,000 burden hours relating to disclosure requirements, for a
total new burden of 20,500,000 hours.
Regulation E contains a wide variety of disclosure requirements.
The number of regulated entities and the estimated amount of time
necessary to comply with each requirement varies widely according to
the specific provisions of each requirement. As stated above, the
majority of these disclosures are statutorily required. It is also
extremely difficult to quantify precisely the number of entities and
the number of transactions affected by these requirements. In recent
years a large number of additional entities subject to Regulation E
have entered the market. Thus, the burden hours discussed below reflect
the increase in additional entities covered by the Regulation.
Disclosures: Approximately 500,000 firms offer EFT services to
consumers. However, the average burden hours vary significantly
according to the type of transaction involved and related disclosures.
For example, EFT initial account disclosures are sent to approximately
1 million new accounts per year at an average burden of 1 second per
account, whereas investigations and resolutions of account errors
average 10 minutes per complaint per year.
5. The Consumer Leasing Act, 15 U.S.C. 1667 et seq., requires
accurate disclosure of the costs and terms of leases to consumers.
Regulation M, promulgated by the Board of Governors of the Federal
Reserve System, implements the Consumer Leasing Act (``CLA'').
Regulation M imposes disclosure requirements on all types of lessors,
including leasing companies, finance companies, auto dealers, and some
furniture, appliance, radio and television dealers. The written
disclosures required by Regulation M are specifically required by the
CLA. See 15 U.S.C. 1667a. Similarly, the advertising disclosures
required by Regulation M are also specifically required by the CLA. See
15 U.S.C. 1667c. These disclosures assist consumers in understanding
the terms of leases prior to entering into a lease agreement.
Regulation M implements the disclosure provisions which are mandated by
statute.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 100,000 hours relating to recordkeeping provisions
(control number 3084-0086). The FTC is seeking approval to add 433,400
burden hours relating to disclosure requirements, for a total burden of
533,400 hours.
The number of consumer automobile leases (the largest category of
consumer leases) has increased considerably in recent years and the
current burden estimate reflects this growth. The FTC estimates that
approximately 2,500,000 lease transactions are now subject to the
written disclosure requirements and that providing the required
disclosures takes an average of 10 minutes per lease for a total burden
estimate of 416,000 hours. With respect to lease advertising
disclosures, most (although certainly not all) lease promotions offer
automobile transactions. The FTC estimates that approximately 1 million
lease advertisements per year are affected by the Rule at 1 minute per
advertisement for a total burden estimate of 16,666 burden hours.
[[Page 44352]]
Disclosures: Firms leasing products to consumers make disclosures
for approximately 2,500,000 lease transactions per year at an average
burden of 10 minutes per lease. Approximately 1 million lease
advertisements are placed per year at an average burden of 1 minute per
advertisement.
6. The Truth-in-Lending Act, 15 U.S.C. 1601 et seq. (``TILA''), was
enacted to foster comparison credit shopping and informed credit
decisionmaking by requiring accurate disclosure of the costs and terms
of credit to consumers. Regulation Z, promulgated by the Board of
Governors of the Federal Reserve System, implements the TILA.
Regulation Z requires creditors to calculate and disclose terms that
apply to both open-end credit (e.g., revolving credit or credit lines)
and closed-end credit (e.g., installment financing). Regulation Z
imposes disclosure requirements on all types of creditors in connection
with consumer credit, including mortgage companies, finance companies,
retailers, and credit card issuers, to ensure that consumers are fully
apprised of the terms of financing prior to consummation of the
transaction and, in some instances, during the loan term. It also
imposes advertising disclosure requirements on advertisers of consumer
credit. Among other things, Regulation Z also establishes billing error
resolution procedures and limits consumer liability for the
unauthorized use of credit cards. The vast majority of Regulation Z's
disclosure requirements are expressly mandated by the TILA. See e.g.,
open-end initial disclosures, 15 U.S.C. 1637(a); and open-end periodic
disclosures, 15 U.S.C. 1637(b). In most instances, the disclosure and
other requirements of Regulation Z form the basis both for
administrative enforcement of the TILA by the FTC and other agencies
and for private rights of action by private litigants.
Estimate of Information Collection Burden. The FTC has OMB approval
for 1,000,000 hours relating to recordkeeping provisions (control
number 3084-0088). The FTC is seeking approval to add 40,600,000 burden
hours relating to disclosure requirements, for a total burden estimate
of 41,600,000 hours.
As stated above, the majority of these disclosure provisions are
statutorily required. In recent years Congress has amended the TILA to
include additional requirements. In addition, the various types of
credit accounts affected by the Regulation have greatly increased.
Disclosures: Regulation Z contains a wide variety of disclosure
requirements. It is extremely difficult to quantify the number of
entities and the number of transactions affected by these requirements.
Further, the number of regulated entities and the estimated amount of
time necessary to comply with each requirement varies widely according
to the specific provisions of each requirement. For example, businesses
place approximately 200,000 open-end home equity line of credit
advertisements per year at an average burden of 5 minutes per
advertisement. On the other hand, 4 million residential loan
originations are made per year at 10 minutes per loan.
7. Textile Fiber Products Identification Act. The Textile Fiber
Products Identification Act, 15 U.S.C. 70 et seq. (``Textile Act''),
prohibits misbranding and false advertising of textile fiber products.
The Textile Act Regulations, 16 CFR part 303, which implement the
Textile Act, require accurate disclosure of material product
information in a standardized format. Many of these disclosures are
required by the Textile Act. See 15 U.S.C. 70(b). The disclosure
requirements assist consumers in making informed purchasing decisions.
The Regulations also require manufacturers and marketers who
substitute labels (e.g., resellers) to maintain records, invoices, and
other documents which reflect the bases relied upon in making fiber
content and country of origin disclosures. These recordkeeping
requirements are specifically mandated by the Textile Act. See 15
U.S.C. 70d. The recordkeeping requirements assist the Commission in
enforcing the Regulations.
The Regulations also contain a petition procedure for requesting
the establishment of generic names for textile fibers. The information
submitted is used by the FTC to determine whether the petition should
be granted.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 50 hours relating to procedures for requesting the
establishment of generic names for textile fibers (control number 3084-
0047). The FTC is seeking approval to add 1,291,000 hours for
recordkeeping requirements, which are statutorily required. The FTC is
also seeking to add 14,209,000 hours relating to disclosure
requirements, for a total burden estimate of 15,500,000 hours.
Recordkeeping: Approximately 30,000 textile firms retain required
records at an average burden of 43 hours per year. Disclosures:
Approximately 40,000 textile firms make disclosures for 9,300,000,000
covered products at an average burden of 5.5 seconds per item.
Petitions: Approximately 1 textile firm submits 1 petition per year at
an average burden of 50 hours.
8. Wool Products Labeling Act. The Wool Products Labeling Act, 15
U.S.C. 68 et seq. (``Wool Act''), prohibits misbranding of wool
products. The Wool Act Regulations, 16 CFR part 300, require accurate
disclosure of material information about wool products, including fiber
content and country of origin disclosures. Many of these disclosures
are mandated by the Wool Act. See 15 U.S.C. 68b. The disclosure
requirements assist consumers in making informed purchasing decisions.
The Regulations also require manufacturers and other marketers of
covered products to maintain records that support both claims made on
labels and invoices and savings representations. These recordkeeping
requirements are specifically mandated by the Wool Act, see 15 U.S.C.
68d, and assist the Commission in enforcing the Regulations.
The Regulations also contain a procedure for filing a petition
concerning whether or not representations of the fiber content of a
class of articles are commonly made, or whether or not the textile
content of certain products is insignificant or inconsequential. The
information submitted is used by the FTC to determine whether the
petition should be granted.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 50 hours relating to recordkeeping provisions (control
number 3084-0047). The FTC is seeking to adjust its current
recordkeeping burden estimate to 191,000 hours for these requirements,
which are statutorily required, and to add 2,100,000 hours relating to
disclosure requirements, for a new burden estimate of 2,291,000 hours.
Recordkeeping: Approximately 15,000 wool firms retain records at an
average burden of 12.73 hours per firm. Disclosures: Approximately
20,000 wool firms make disclosures on 1,375,000,000 covered products at
an average burden of 5.5 seconds per item. Petitions: Approximately 1
wool firm submits 1 petition per year at an average burden of 50 hours.
9. Fur Products Labeling Act. The Fur Products Labeling Act, 15
U.S.C. 69 (``Fur Act''), prohibits misbranding and false advertising of
fur products. The Fur Products Regulations, 16 CFR part 301, which
implement the Fur Products Labeling Act, require accurate disclosure of
material information about fur products, including the fur content
[[Page 44353]]
and the country of origin. Many of these disclosures are mandated by
the Fur Act. See 15 U.S.C. 69b. The disclosure requirements assist
consumers in making informed purchasing decisions.
The Regulations also require manufacturers and dealers in fur
products to retain records to support claims made on labels and to
support representations made in advertisements. The recordkeeping
requirements are specifically mandated by the Fur Act, see 15 U.S.C.
69e, and assist the Commission in enforcing the Regulations.
The Regulations also provide a procedure for exemption from certain
disclosure provisions under the Act.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 50 hours relating to recordkeeping provisions (control
number 3084-0047). The Commission is seeking approval to adjust its
current recordkeeping burden for these requirements, which are
statutorily required, to 59,000 hours and to add 78,500 hours relating
to disclosure requirements, for a total burden estimate of 137,600
hours.
Recordkeeping: Approximately 7,500 manufacturers and retailers
retain records at an average burden of 48 hours for manufacturers and
12 hours for retailers. Disclosures: Approximately 1,600 fur firms
disclose information at an average burden of 1 hour per firm.
Petitions: Approximately 1 fur firm submits 1 petition per year at an
average burden of 50 hours.
10. The Appliance Labeling Rule, 16 CFR part 305, establishes
testing, reporting, recordkeeping, and labeling requirements, for
manufacturers of certain appliances in disclosing and advertising
information relating to energy consumption of water usage. The Rule's
testing and disclosure requirements assist consumers in comparing the
energy efficiency or consumption of competing products. The Rule also
requires manufacturers to submit relevant data regarding energy or
water usage in connection with the products they manufacture. The
Commission uses this data to compile the ranges of comparability for
covered appliances for publication in the Federal Register. In
addition, the submissions may be used for comparison purposes in
enforcement actions involving alleged misstatements on labels or in
advertisements.
The Rule also requires manufacturers to keep records of test data
to derive information included on the labels. The records may be
requested and used by the Commission for enforcement purposes.
All of the requirements discussed above are specifically imposed by
the Energy Policy and Conservation Act of 1995. See, e.g., 42 U.S.C.
6296(a); 42 U.S.C. 6294(c)(1)(A); 42 U.S.C. 6296(b)(4); and 42 U.S.C.
6296(b)(2).
Estimate of Information Collection Burden. The FTC seeks approval
of 2,600 hours for these recordkeeping and reporting provisions, which
are statutorily imposed, and 923,400 hours for these disclosure
provisions, which are also statutorily imposed, for a total burden
estimate of 926,000 hours.
The Rule contains a wide variety of recordkeeping and disclosure
requirements. The number of regulated entities and the estimated amount
of time necessary to comply with each requirement varies widely
according to the specific provisions of each requirement. For example,
the test procedure for dishwashers requires an estimated 2 hours for
each of 70 basic models for a total burden of 140 hours. On the other
hand, the test procedure for central air conditioners requires an
estimated burden of 24 hours multiplied by 2 units tested for each of
1,500 basic models for a total burden of 72,000 hours.
11. The Fuel Rating Rule, 16 CFR part 306, establishes standard
procedures for determining, certifying and disclosing the octane rating
of automotive gasoline and the automotive fuel rating of alternative
liquid automotive fuel. These requirements are specifically mandated by
the Petroleum Marketing Practices Act. See 15 U.S.C. 2822(a)-(c). The
fuel rating determination, certification and labeling requirements
establish a framework that provides consumers with reliable,
comparable, and readily available information about the fuel ratings of
similar types of fuel.
The Rule also requires refiners, producers, importers, distributors
and retailers to retain records of delivery tickets, letters of
certification or tests upon which automotive fuel ratings are based.
The primary purpose of the Rule's recordkeeping requirements is to
preserve evidence of automotive fuel rating certification for
enforcement purposes.
Estimate of Information Collection Burden. The FTC has current OMB
approval for 19,000 hours relating to recordkeeping provisions (control
number 3084-0068). The FTC is seeking approval to add 24,000 burden
hours for disclosure requirements, which are specifically required by
statute, for a total burden of 43,000 hours.
Recordkeeping: Approximately 24,000 automotive fuel industry
members retain records at an average annual burden of 6 minutes per
industry member. Disclosures: Approximately 190,000 automotive fuel
industry members make required disclosures at an average annual burden
of 1 hour per industry member.
12. The Alternative Fuel Rule, 16 CFR part 309, establishes uniform
labeling requirements for alternative fuels and alternative fueled
vehicles. These disclosures provide consumers with reliable and
comparable information about the fuel ratings of similar types of fuel
and alternative fueled vehicles. The Rule also requires affected
entities to retain records relating to representations made about fuel
ratings for non-liquid alternative fuels and estimated cruising ranges
and emission certification standards for alternative fueled vehicles.
The primary purpose of these recordkeeping requirements is to preserve
evidence of compliance with the Rule.
Estimate of Information Collection Information. The Commission has
current OMB approval for 159 hours relating to recordkeeping provisions
(control number 3084-0094). The Commission is revising its
recordkeeping burden from 159 to 189 burden hours. The Commission is
also seeking approval to add 22,167 burden hours relating to disclosure
requirements, for a new burden total of 22,400 hours.
Recordkeeping: Approximately 1,658 automotive fuel industry members
retain records at an average annual burden of 6 minutes per industry
member. Disclosures: These requirements vary according to the type of
disclosure required and the members of the automotive fuel industry
affected. For example, approximately 350 industry members are affected
by the fuel rating certification requirements for non-liquid
alternative fuels at an estimated annual burden of 24 hours per
industry member for a total burden of 8,400 hours. The burden for the
same industry members to make a fuel rating determination is estimated
at 2 hours per industry member for a total burden of 700 hours.
13. The ``900'' Number Rule, 16 CFR part 308, establishes
requirements for advertising and operating pay-per-call services. The
Rule also establishes procedures for billing and collecting charges for
these services. The primary purpose of the Rule is to assist in
preventing unfair and deceptive acts or practices by ensuring that
consumers are informed of cost and other material information prior to
calling 900 numbers; to provide consumers with adequate billing
information subsequent to calling 900 numbers; and to establish a
mechanism for disputing charges for
[[Page 44354]]
900 number calls. The advertising, preamble, and billing statement
disclosures are specifically mandated by the Telephone Disclosure and
Dispute Resolution Act. 15 U.S.C. 5701 et seq. (``TDDRA''). The TDDRA
also requires the rules under the billing dispute resolution portion of
the Rule to be substantially similar to the requirements imposed under
the Truth-in-Lending Act and Fair Credit Billing Acts. 15 U.S.C.
5721(a)(2).
In addition, any common carrier who provides telecommunication
services to a provider of pay-per-call services is required to provide
the Commission with financial information and other records relating to
the arrangement. This requirement assists in the enforcement of the
Rule by permitting the Commission to obtain information from telephone
companies that provide transmission services to 900 number providers.
Estimate of Information Collection Burden. The FTC seeks approval
for 125 burden hours relating to reporting requirements and 3,241,000
burden hours relating to disclosure requirements, for a total burden
estimate of 3,241,200.
Reporting: Approximately 25 common carriers make records available
to the Commission at an average burden of 5 hours per submission.
Disclosures: Approximately 20,000 information providers place
approximately 3 advertisements per year at an average burden of 1 hour
per provider. Approximately 60,000 pay-per-call services are required
to make disclosures in the preamble at an average burden of 10 hours
for each preamble. Approximately 20,000 information providers are
required to ensure that disclosures appear on each billing statement at
an average burden estimate of 12 hours per provider.
14. The Care Labeling Rule, 16 CFR part 423, requires manufacturers
and importers to attach a permanent care label to all covered textile
clothing. Also, manufacturers and importers of piece goods used to make
textile clothing must provide the same care information on the end of
each bolt or roll of fabric. These labels disclose information about
washing or dry cleaning the apparel or fabric. These requirements
assist consumers in making purchasing decisions and in deciding what
method to use to clean their apparel. Professional cleaners also use
this information to clean apparel in a manner that avoids damage to the
garment. The Rule also provides a procedure whereby a member of the
industry may petition the Commission for an exemption for products that
are claimed to be harmed in appearance by the requirement for a
permanent label.
Estimate of Information Collection Burden. The FTC is seeking
approval for a burden estimate of 3,985,000 hours relating to
disclosure requirements.
Disclosures: Approximately 25,000 apparel manufacturers and
importers make disclosures at an average burden of 159 hours per
company per year. Petitions: Only 1 petition, subsequently withdrawn,
has been filed in recent years. An estimated 50 hours for preparing a
petition has been incorporated into the hours calculated for disclosure
requirements.
15. The Negative Option Rule, 16 CFR part 425, establishes
disclosure requirements for sellers who use negative option plans.
Negative option plans require the consumer to affirmatively decline an
offer of merchandise or else have the merchandise shipped
automatically. The Rule requires sellers of these plans to disclose the
material terms of the plan and cancellation procedures in promotional
materials. This information allows consumers to weigh the benefits and
burdens of negative option plans.
Estimate of Information Collection Burden. The FTC is seeking
approval for a burden estimate of 15,500 hours relating to disclosure
requirements.
Disclosures: Approximately 124 negative option plan providers
comply with disclosure requirements at an average burden of 125 hours
per company.
16. The Amplifier Rule, 16 CFR part 432, establishes requirements
for disclosing power output specifications in advertising. The Rule
also specifies test conditions to be used to obtain this information.
Consumers use the information to make comparisons among the types and
brands of audio equipment.
Estimate of Information Collection Burden. The FTC is seeking
approval for a burden estimate of 2,700 hours relating to disclosure
requirements.
Disclosures: Approximately 300 new products must be tested annually
at an average burden of 1 hour per product. Approximately 1200 magazine
advertisements appear each year for an average burden of 2 hours per
advertisement.
17. The Mail Order or Telephone Merchandise Rule, 16 CFR part 435,
requires mail or telephone order merchants to substantiate any shipment
representation; to notify the consumer of, and obtain consent for, any
shipment delay; and to make prompt and full refunds when the consumer
exercises a cancellation option or the merchant is unable to meet the
Rule's other requirements. The disclosure requirements ensure that
consumers are provided with reliable shipment information in the
solicitation of mail or telephone order sales and in notifications of
delays in shipment.
Estimate of Information Collection Burden. The FTC is seeking
approval for a burden estimate of 16,213,300 burden hours relating to
disclosure requirements.
Disclosures: Approximately 70,560 mail and telephone order
merchants make required disclosures at an average burden of 230 hours
per merchant per year.
18. The Franchise Rule, 16 CFR part 436, requires franchisors and
franchise brokers to furnish a disclosure document to prospective
franchisees prior to sale. This document contains information on 20
subjects relating to the franchisor, the franchisor's business, and the
nature of the proposed franchise relationship. Franchisors must also
disclose additional information if they make any claim about actual or
potential sales, income, or profits for a prospective franchisee. These
disclosures assist consumers in making informed investment decisions
and otherwise verifying the representations of the franchisor.
Estimate of Information Collection Burden. The FTC is requesting
approval for an estimated burden of 36,200 hours relating to disclosure
requirements.
Disclosures: Approximately 3,613 franchisors and franchise brokers
make required disclosures at an average burden of 10 hours per firm.
19. The Used Car Rule, 16 CFR part 455, requires used car dealers
to disclose information about warranty coverage, if any, and the
mechanical condition of used cars on a one page, two-sided Buyers
Guide, which must be placed in the window of the car. This information
allows consumers to make informed purchasing decisions by evaluating
whether a warranty is offered, the terms of the warranty, and the
condition of the car.
Estimate of Information Collection Burden. The FTC is requesting
approval for an estimated burden of 2,304,100 hours relating to
disclosure requirements.
Disclosures: Approximately 80,000 used car dealers make required
disclosures at an average burden of 29 hours per dealer.
20. The R-Value Rule, 16 CFR part 460, requires that manufacturers
and sellers disclose the R-value (degree of resistance to the flow of
heat) of a home insulation product prior to sale. This information is a
measure of how well
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the product will perform as an insulator and allows consumers to
compare products and make cost-effective decisions about purchasing
home insulation products.
The Rule also requires home insulation manufacturers and
laboratories to maintain records of tests conducted to determine the R-
value of each insulation product. Sellers who make representations
concerning fuel or energy cost savings are required to maintain records
to substantiate these claims. These recordkeeping requirements assist
the Commission in enforcing the Rule.
Estimate of Information Collection Burden. The FTC is requesting
approval for an estimated burden of 366,056 hours relating to
disclosure requirements and 275 hours relating to recordkeeping
requirements, for a total estimated burden of 366,400 hours (rounded).
Disclosures: 150 manufacturers, 1,500 installers, 137,000 new home
sellers, and 25,000 retailers make disclosures at an average burden of
23 hours for manufacturers, 20 hours for installers, 2 hours for new
home sellers, and 2 hours for retailers. Recordkeeping: 150
manufacturers and 1,500 installers keep records at an annual average
burden of 1 hour per manufacturer and 5 minutes per installer.
21. The Fair Packaging and Labeling Act, 15 U.S.C. 1450, (``FPLA'')
was enacted to eliminate consumer deception concerning product size
representations and package content information. The Regulations which
implement the FPLA, 16 CFR part 500, establish requirements for the
manner and form of labeling consumer commodities. Section 4 of the FPLA
specifically requires packages or labels to be marked with: (1) A
statement of identity, (2) a new quantity of contents disclosure, and
(3) the name and place of business of a company that is responsible for
the product.
Estimate of Information Collection Burden. The FTC is seeking
approval for an estimated burden of 12,000,000 hours relating to
disclosure requirements.
Recordkeeping: Most of the records that manufacturers, packagers,
distributors, and retailers of consumer commodities are required to
retain would otherwise be kept in the normal course of business.
Disclosures: Approximately 1,200,000 manufacturers, packagers,
distributors, and retailers of consumer commodities make disclosures,
most of which are statutorily required, at an average burden of 10
hours per company.
22. The Consumer Product Warranty Rule, 16 CFR part 701, provides
that, where written warranties are provided, the warranties must
disclose certain material facts regarding their terms and conditions.
The purpose of the Rule is to prevent deception by providing consumers
with information to assess written warranty terms.
Estimate of Information Collection Burden. The FTC is seeking
approval for an estimated burden of 34,000 burden hours associated with
these disclosure requirements.
Disclosures: Approximately 4,241 warrantors of products make
required disclosures at an average burden of 8 hours.
23. The Pre-Sale Availability Rule, 16 CFR part 702, requires that
the terms of written warranties for consumer products be made available
to consumers prior to purchase. Manufacturers are required to provide
materials sufficient for retailers to meet their obligations. The Rule
also contains requirements for disclosing the availability of warranty
information in catalogues and door-to-door sales.
Estimate of Information Collection Burden. The FTC is seeking
approval for an estimated burden of 2,759,700 hours associated with
these disclosure requirements.
Disclosures: Approximately 422,100 small retailers, 6,552 large
retailers, 4,095 small manufacturers, and 146 large manufacturers make
required disclosures at an average burden of 6 hours for small
retailers, 26 hours for large retailers, 12 hours for small
manufacturers, and 52 hours for large manufacturers.
24. The Informal Dispute Settlement Procedures Rule, 16 CFR part
703, provides for disclosures in warranties when warrantors offer
dispute settlement resolution procedures in a written consumer product
warranty. The Rule also provides for dispute resolution information to
be provided to consumers upon request. The disclosure requirements
allow consumers to be fully informed regarding the warranty's dispute
settlement procedures.
The Rule also requires affected entities to retain individual
records for each dispute; indexes that categorize disputes by product
model, and show the extent to which the warrantor has abided by
decisions of the resolution process; and statistical summaries that
classify disputes according to various status and final disposition
categories.
Affected entities must conduct an annual audit of their dispute
resolution procedures and submit a report to the Commission. These
requirements assist the Commission in enforcing the Rule.
Estimate of Information Collection Burden. The FTC is requesting
approval for an estimated burden of 500 disclosure hours and 6,456
recordkeeping hours, for a total burden estimate of 7,000 hours
(rounded).
Disclosures: Approximately 2 warrantors who offer informal dispute
settlement procedures make required disclosures at an average burden of
250 hours. Recordkeeping: Approximately 2 warrantors who offer informal
dispute settlement procedures make required disclosures at an average
burden of 3,228 hours.
25. FTC Administrative Activities. These information collection
requests constitute administrative or procedural matters. Each
specifies information to be submitted voluntarily to the Commission by
persons who wish to do business with or receive some benefit from the
agency. Because of the limited burden imposed, these requests for OMB
approval have been combined into a single item. These requests relate
to: (1) FTC procurement activities; (2) the document order form used by
the FTC public reference branch; (3) applications and notices to the
Commission; and (4) rules governing claims under the Equal Access to
Justice Act.
The FTC seeks to modify item (3) to include applications and
notices to the Commission contained in other rules (generally in Parts
I, II, and IV of the Commission's rules of practice) that may, or may
not, constitute the ``collection of information.'' See, e.g., 16 CFR
4.8(e) (requests for a waiver of costs for obtaining Commission
records). Because these provisions are generally imposed during the
conduct of federal criminal, civil, or administrative action with
respect to a specific party they would normally not be covered by the
PRA. See 5 CFR 1320.22. Any requirements that are not imposed in this
context are extremely rare, and the de minimis burden associated with
them can be easily incorporated into the 50 burden hours already
requested in this section.
The FTC is also requesting approval to delete three currently
approved requests from item (3)--the procedure for establishing generic
names under the Textile Act Regulations and the procedures for certain
exemptions under the Wool and Fur Act Regulations. The FTC has prepared
separate submissions for these regulations. See item numbers 7, 8 & 9,
infra. In 1993, the total burden estimate for the Textile, Wool, and
Fur Act Regulations was approximately 50 hours. Even though the FTC has
deleted these hours, the total burden associated with item (3) has not
changed because
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of the additional hours associated with the new request for clearance
of notices and applications to the Commission.
Estimate of Information Collection Burden. The FTC is requesting an
estimated burden of 2,300 hours (rounded) relating to administrative
activities. This figure is unchanged from the Commission's current
approval (control number 3084-0047). Various states, companies, and
individuals make requests pursuant to this item for a total burden of
2,300 hours.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 95-21165 Filed 8-24-95; 8:45 am]
BILLING CODE 6750-01-M
