95-3536. Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986  

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

Document Information

Published:
02/14/1995
Department:
Federal Trade Commission
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
95-3536
Dates:
Written comments will be accepted on or before April 17, 1995.
Pages:
8312-8313 (2 pages)
PDF File:
95-3536.pdf
CFR: (1)
16 CFR 307.12