96-21799. Notice of Proposed Information Collection Requests  

  • [Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
    [Notices]
    [Pages 43764-43769]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-21799]
    
    
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    FEDERAL TRADE COMMISSION
    
    
    Notice of Proposed Information Collection Requests
    
    AGENCY: Federal Trade Commission.
    
    ACTION: Proposed collection; comment request.
    
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    SUMMARY: The proposed information collection requirements described 
    below will be submitted to the Office of Management and Budget (OMB) 
    for review, as required by the Paperwork Reduction Act. The FTC is 
    soliciting public comments on proposed extensions of Paperwork 
    Reduction Act clearance for information collection requirements 
    contained in twelve rules issued or enforced by the Commission. These 
    OMB clearances expire on December 31, 1996. The FTC proposes that OMB 
    extend its approvals through December 31, 1999.
    
    DATES: Comments due: October 25, 1996.
    
    ADDRESSES: Send comments to the Office of Information and Regulatory 
    Affairs, Office of Management and Budget, New Executive Office 
    Building, Room 3228, Washington, D.C. 20503, ATTN: Desk Officer for the 
    Federal Trade Commission, and to Elaine W. Crockett, Office of the 
    General Counsel, Federal Trade Commission, Washington, D.C. 20580, 
    (202) 326-2453.
    
    FOR FURTHER INFORMATION CONTACT:
    Requests for additional information or copies of the proposed 
    information requirements should be addressed to Elaine W. Crockett at 
    the address listed above.
    
    SUPPLEMENTARY INFORMATION: The FTC will submit the proposed information 
    collections to OMB for review, as required by the Paperwork Reduction 
    Act of 1995 (44 U.S.C. Chapter 35, as amended). The purpose of this 
    Notice is to solicit comments from members of the public and affected 
    agencies concerning the proposed collections of information to: (1) 
    Evaluate whether the proposed collection of information is necessary 
    for the proper performance of the functions of the agency, including 
    whether the information will have practical utility, (2) Evaluate the 
    accuracy of the agency's estimate of the burden of the proposed 
    collection of information, including the validity of the methodology 
    and assumptions used, (3) Enhance the quality, utility, and clarity of 
    the information to be collected, and (4) Minimize the burden of the 
    collection 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.
        The FTC attempts to minimize the burden of collections of 
    information on the public whenever possible. In this regard it should 
    be noted that the great majority of the disclosure requirements 
    discussed below entail burdens 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. 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.
        The great majority of the recordkeeping and reporting provisions 
    discussed below entail burdens that are necessary for the enforcement 
    of the regulation and/or statute. In some instances, these 
    recordkeeping requirements are statutorily mandated. See, e.g. the 
    regulations implementing the Fur Products Labeling Act. In most 
    instances, the regulated entities keep these records in the normal 
    course of business, and thus these recordkeeping requirements do not 
    impose an additional ``burden'' on members of the public. See 5 C.F.R. 
    Sec. 1320.3(b)(2) (burden hours exclude effort that would be expended 
    regardless of any regulatory requirement).
    
    1. Collection Title: The Games of Chance Rule, 16 C.F.R. Part 419
    
        OMB Control Number: 3084-0067.
        Description of the collection of information and proposed use: The 
    Rule 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.
    
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        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: 8,250 total burden 
    hours.
        Recordkeeping: Approximately 30 independent firms contract to 
    conduct an average of 50 promotions per year at an average burden per 
    respondent of 150 hours for a total recordkeeping burden of 4,500 
    hours.
        Disclosures: Approximately 30 game promoters conduct an average of 
    50 games per year at an average burden per promotion of 2.5 hours for a 
    total disclosure burden of 3,750 hours.
    
    2. Title: Regulations Promulgated Under the Equal Credit Opportunity 
    Act, 15 U.S.C. Sec. 1691 et seq. (``ECOA''), (``Regulation B'')
    
        Control Number: 3084-0087.
        Description of the collection of information and proposed use: The 
    ECOA 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 C.F.R. Part 202, promulgated by the Board of Governors 
    of the Federal Reserve System, implements the ECOA. Among other things, 
    section 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. Sec. 1691(d). Second, creditors are required to provide 
    notification to mortgage credit applicants concerning appraisal 
    reports. 15 U.S.C. Sec. 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: 14,400,000 total burden 
    hours.
        Recordkeeping: The FTC estimates that Regulation B's recordkeeping 
    requirements affect 1 million credit firms at an average burden of 1 
    hour per firm per year, for a total estimated burden of 1,000,000 
    hours. The FTC estimates that approximately 4,000 creditors are subject 
    to the requirement to collect information about race/national origin, 
    sex, age, and marital status and that approximately 4 million credit 
    applications are affected. 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.
        Disclosures: The disclosures are all specifically mandated by the 
    ECOA. Approximately 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.
    
    3. Title: Regulations Promulgated Under the Electronic Fund Transfer 
    Act, 15 U.S.C. Sec. 1693 et seq. (``EFTA''), (``Regulation E'')
    
        Control Number: 3084-0085.
        Description of the collection of information and proposed use: The 
    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. Among other things, section 205.13 
    of Regulation E requires entities subject to the EFTA to retain 
    evidence of compliance with the regulation for two years. These 
    requirements assist in the enforcement of the Act and implementing 
    regulations. The FTC is the enforcing agency for the EFTA and 
    Regulation E as to all entities providing EFT services except those 
    (such as federally chartered or insured depository institutions) that 
    are subject to the regulatory authority of another federal agency.
        Regulation E contains several disclosure requirements relating to 
    the terms and conditions of electronic fund transfer 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. 
    Sec. 1693g; initial disclosures, 15 U.S.C. Sec. 1693c(a); and 
    documentation of transfers and receipts.
        Estimate of information collection burden: 20,500,000 total burden 
    hours.
        Recordkeeping: The FTC estimates that Regulation E's recordkeeping 
    requirements affect 500,000 firms that offer EFT services to consumers 
    at an average annual burden of 1 hour per firm, for a total 
    recordkeeping estimate of 500,000 hours.
        Disclosures: Regulation E also contains a wide variety of 
    disclosure requirements, which are more difficult to quantify. 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, and the number of entities and the 
    number of transactions affected by these requirements cannot readily be 
    ascertained. Also, in recent years a large number of additional 
    entities subject to Regulation E have entered the market.
        As stated above, the FTC estimates that approximately 500,000 firms 
    offer EFT services to consumers. However, the average burden hours 
    relating to disclosures 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
    
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    complaint per year. Although this figure is difficult to quantify, the 
    FTC estimates that the total burden estimate relating to disclosures is 
    approximately 20,000,000 hours.
    
    4. Title: Regulations Promulgated Under the Consumer Leasing Act, 15 
    U.S.C. Sec. 1667 et seq., (``CLA''), (``Regulation M'')
    
        Control Number: 3084-0086.
        Description of the collection of information and proposed use: The 
    CLA 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 CLA. Section 213.6 of Regulation 
    M requires lessors to retain evidence of compliance with the regulation 
    (other than advertising requirements) for two years after the date 
    disclosures are required to be made. These requirements assist in 
    enforcement of the Act and implementing regulations. The FTC is the 
    enforcing agency for the Consumer Leasing Act as to all lessors except 
    those (such as federally chartered or insured depository institutions) 
    that are subject to the regulatory authority of another federal agency.
        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.
        Estimate of information collection burden: 533,400 total burden 
    hours.
        Recordkeeping: The FTC estimates that 100,000 firms leasing 
    products to consumers are affected by Regulation M's recordkeeping 
    requirements at an average burden of 1 hour per year, for a total 
    recordkeeping burden of 100,000 hours.
        Disclosures: The burden relating to disclosure requirements has 
    increased significantly in recent years because the number of consumer 
    automobile leases (the largest category of consumer leases) has grown 
    dramatically and the current burden estimate reflects this growth. The 
    FTC estimates that approximately 2,500,000 lease transactions are 
    subject to the written disclosure requirements and that providing the 
    required disclosures takes an average of 10 minutes per lease for a 
    total burden related to lease transactions of 416,700 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 related to 
    lease advertisements of 16,666 burden hours.
    
    5. Title: Regulations Promulgated Under the Truth-in-Lending Act, 15 
    U.S.C. Sec. 1601 et seq. (``TILA''), (``Regulation Z'')
    
        Control Number: 3084-0088.
        Description of collection of information and proposed use: The 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. Among 
    other things, section 226.25 of Regulation Z requires creditors to 
    retain evidence of compliance with the regulation (other than the 
    advertising requirements) for two years after the date disclosures are 
    required to be made or other action is required to be taken. These 
    requirements assist in enforcement of the Act and implementing 
    regulations. The FTC enforces the TILA as to all creditors except those 
    (such as federally chartered or insured depository institutions) that 
    are subject to the regulatory authority of another federal agency.
        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. Sec. 1637(a); and open-end 
    periodic disclosures, 15 U.S.C. Sec. 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 Collection of information burden: 41,600,000 total 
    burden hours.
        Recordkeeping and Disclosures: 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. Because Regulation Z contains a wide variety of 
    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. These figures 
    are difficult to quantify; however, the FTC estimates Regulation Z's 
    recordkeeping requirements to be approximately 1,000,000 hours and 
    Regulation Z's disclosure requirements to be 40,600,000 burden hours.
    
    6. Title: Regulations Under the Textile Fiber Products Identification 
    Act, 15 U.S.C. Sec. 70 et seq. (``Textile Act'')
    
        Control Number: 3084-0047.
        Description of the collection of information and proposed use: The 
    Textile Act prohibits misbranding and false advertising of textile 
    fiber products. The Textile Act Regulations, 16 C.F.R. Sec. 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 that 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
    
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    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: 15,500,000 total burden 
    hours.
        Recordkeeping: The FTC estimates that approximately 30,000 textile 
    firms retain required records at an average burden of 43 hours per 
    year, for a total recordkeeping burden of 1,290,000 hours. Disclosures: 
    The FTC also estimates that approximately 40,000 textile firms make 
    disclosures for 9,300,000,000 covered products at an average burden of 
    5.5 seconds per item, for a total disclosure burden of 14,208,000 
    hours. Petitions: Approximately 1 textile firm submits 1 petition per 
    year at an average burden of 50 hours.
    
    7. Title: Regulations Under the Wool Products Labeling Act, 5 U.S.C. 
    Sec. 68 et seq. (``Wool Act'')
    
        Control Number: 3084-0047.
        Description of the collection of information and proposed use: The 
    Wool Act prohibits misbranding of wool products. The Wool Act 
    Regulations, 16 CFR Sec. 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. Sec. 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. 
    Sec. 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: 2,291,000 total burden 
    hours.
        Recordkeeping: The FTC estimates that approximately 15,000 wool 
    firms retain records at an average burden of 12.73 hours per firm, for 
    a total recordkeeping burden of 191,000 hours. 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, for a 
    total disclosure burden of approximately 2,100,000 hours. Petitions: 
    Approximately 1 wool firm submits 1 petition per year at an average 
    burden of 50 hours.
    
    8. Title: Regulations Under the Fur Products Labeling Act, 15 U.S.C. 
    Sec. 69 et. seq. (``Fur Act'')
    
        Control Number: 3084-0047.
        Description of the collection of information and proposed use: The 
    Fur Act prohibits misbranding and false advertising of fur products. 
    The Fur Products Regulations, 16 CFR Sec. 301, which implement the Fur 
    Products Labeling Act, require accurate disclosure of material 
    information about fur products, including the fur content and the 
    country of origin. Many of these disclosures are mandated by the Fur 
    Act. See 15 U.S.C. Sec. 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. 
    Sec. 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: 137,600 total burden 
    hours.
        Recordkeeping: The burden associated with the rule's general 
    recordkeeping requirements is estimated to be 15 to 30 minutes per week 
    for retailers and 1 hour per week for manufacturers. With an allowance 
    for the specific recordkeeping requirements associated with exempted 
    products and price savings claims, the total recordkeeping burden 
    associated with the rules is estimated to be approximately 59,000 
    hours.
        Disclosures: The FTC estimates that approximately 600 fur products 
    manufacturers make an average of 2,000 garments per year. In addition, 
    approximately 1,000 retailers will substitute labels for 500 fur 
    garments apiece. Preparation of a label for each garment will take an 
    average of 2 minutes per garment for a total labeling burden of 57,000 
    hours annually. Because invoices will be generated in the normal course 
    of business, the additional time needed to comply with the rule's 
    invoice disclosure requirement should be minimal and is estimated to be 
    30 seconds per garment, or an industry total of approximately 14,000 
    hours. The FTC also estimates that the advertising disclosure 
    requirement in the rule imposes an average burden of 1 hour per year 
    for each of the approximately 7,500 fur retailers in the nation, for an 
    estimated burden of 7,500 hours.
        Petitions: Over the past decade, the FTC has received no petitions 
    for an exemption under the Fur Act provisions. Nonetheless, the FTC is 
    estimating this yearly burden to be approximately 50 hours.
    
    9. Title: The ``900'' Number Rule, 16 CFR Part 308
    
        Control Number: 3084-0102
        Description of the collection of information and proposed use: The 
    900 Number Rule 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 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. Sec. 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. 
    Sec. 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: 3,241,200 total burden 
    hours.
        Recordkeeping/Reporting: The FTC estimates that approximately 25 
    common carriers make records available to the Commission at an average 
    burden
    
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    of 5 hours per submission, for a total reporting burden of 125 hours.
        Disclosures: As directed by statute, the 900 Number Rule requires 
    certain disclosures to be made in advertisements for 900 numbers. 
    Specifically, every advertisement for a 900 number must contain a 
    disclosure of the cost of the telephone call. Other types of 900 number 
    advertisements (those directed primarily to individuals under 18, 
    sweepstakes ads, and federal programs ads) must contain additional 
    disclosures. The FTC estimates that each disclosure mandated by the 
    Rule requires 1 hour of compliance time. Of 60,000 advertisements 
    (20,000 information providers  x  3 services/ads for each), 
    approximately 30% are advertisements for sweepstakes or federal 
    programs, and approximately 50% are directed to individuals under the 
    age of 18. Thus, it would take 110,000 burden hours (60,000 (cost) + 
    20,000 (sweepstakes/federal programs) + 30,000 (parental permission) to 
    comply with all of the advertising disclosures contained in the Rule.
        The FTC estimates that 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, for a total burden estimate of 600,000 
    hours.
        In addition, the 900 Number Rule requires information providers to 
    ensure that disclosures appear on each billing statement. The FTC 
    estimates that approximately 2,000 of 20,000 information providers will 
    conduct monitoring of billing statements at an average burden estimate 
    of 12 hours per provider, for a total burden estimate of 24,000 hours.
        Pursuant to the statute, the Rule also requires that information 
    providers ensure that certain disclosures appear on each billing 
    statement that contains a charge for a call to a 900 number. The FTC 
    estimates that approximately 50,000,000 calls are made to pay-per-call 
    services each year; of those calls, approximately 5% result in charges 
    about which consumers call to complain and which constitute ``billing 
    errors'' as defined by the Rule. While the time it takes to respond to 
    each alleged billing error will vary according to the type of complaint 
    and the ease with which it can be resolved, staff estimates that, on 
    average, a billing entity will spend 1 hour resolving each alleged 
    billing error. Accordingly, the compliance burden would be 2,500,000 
    hours (5% of 50,000,000  x  1 hour for each billing error) to comply 
    with the dispute resolution requirements contained in the rule.
        Billing entities are also required to notify pay-per-call customers 
    in writing, at least annually, of their rights and obligations with 
    respect to pay-per-call service charges. The FTC estimates that it will 
    take 7,000 hours for billing entities to notify pay-per-call customers 
    in writing, at least annually, of their rights and obligations with 
    respect to pay-per-call service charges (1400 billing entities  x  5 
    hours to review and revise disclosure each year), for a total burden 
    estimate of 7,000 hours.
        Based on these figures, the total yearly burden of the 900 Number 
    Rule is approximately 3,241,125 hours (125 reporting hours + 3,241,000 
    disclosure hours).
    
    10. Title: The Care Labeling Rule, 16 CFR Part 423
    
        Control Number: 3084-0103.
        Description of collection of information and proposed use: The Care 
    Labeling Rule 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: 3,985,000 total burden 
    hours.
        Disclosures: The FTC estimates that approximately 25,000 apparel 
    manufacturers and importers make disclosures at an average burden of 
    approximately 159 hours per company per year, for a total burden 
    estimate of approximately 3,985,000 hours. Petitions: Only 1 petition, 
    subsequently withdrawn, has been filed in recent years. Thus, an 
    estimated 50 hours for preparing a petition has been incorporated into 
    the total burden calculated for the disclosure requirements.
    
    11. Title: Regulation Under the Fair Packaging and Labeling Act, 15 
    U.S.C. Sec. 1450 (``FPLA'')
    
        Control Number: 3084-0110.
        Description of collection of information and proposed use: The FPLA 
    was enacted to eliminate consumer deception concerning product size 
    representations and package content information. The Regulations that 
    implement the FPLA, 16 CFR Sec. 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 net 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: 12,000,000 total burden 
    hours.
        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, and 
    any hours that would constitute a ``burden'' under the Paperwork 
    Reduction Act have been included in the figure established for 
    disclosures.
        Disclosures: The FTC estimates that 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, for a total disclosure 
    burden of 12,000,000 hours.
    
    12. Title: The Fuel Rating Rule, 16 CFR Part 306
    
        Control Number: 3084-0068.
        Description of collection of information and proposed use: The Fuel 
    Rating Rule 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. Sec. 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: 43,000 total burden 
    hours.
    
    [[Page 43769]]
    
        Recordkeeping: The FTC estimates that approximately 190,000 
    automotive fuel industry members retain records at an average annual 
    burden of 6 minutes per industry member, for a total recordkeeping 
    burden of 19,000 hours. Disclosures: The FTC also estimates that 
    approximately 24,000 distributors make required disclosures at an 
    average annual burden of 1 hour per industry member, for a total 
    disclosure burden of 24,000 hours.
    Benjamin I. Berman,
    Acting Secretary.
    [FR Doc. 96-21799 Filed 8-23-96; 8:45 am]
    BILLING CODE 6750-01-M
    
    
    

Document Information

Published:
08/26/1996
Department:
Federal Trade Commission
Entry Type:
Notice
Action:
Proposed collection; comment request.
Document Number:
96-21799
Dates:
Comments due: October 25, 1996.
Pages:
43764-43769 (6 pages)
PDF File:
96-21799.pdf