[Federal Register Volume 64, Number 239 (Tuesday, December 14, 1999)]
[Notices]
[Pages 69765-69768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32392]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: The Federal Trade Commission (FTC) has submitted to the Office
of Management and Budget (OMB) for review under the Paperwork Reduction
Act (PRA) information collection requirements associated with six
current rules enforced by the Commission. Current clearances for this
information collection expire on December 31, 1999. The FTC is
requesting that OMB extend the paperwork clearances through December
31, 2002.
DATES: Comments must be filed by January 13, 2000.
ADDRESSES: Send written comments to the Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10202, Washington, D.C. 20503, ATTN.: Desk
Officer for the Federal Trade Commission, and to Gary M. Greenfield,
Attorney, Office of the General Counsel, Federal Trade Commission, 600
Pennsylvania Avenue, N.W., Washington, D.C. 20580, 202-326-2753. All
comments should be identified as responding to this notice.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed information requirements should be addressed to
Gary M. Greenfield at the address listed above.
SUPPLEMENTARY INFORMATION: The FTC has submitted a request to OMB to
extend the existing clearances to collect information associated with
the six rules described below. A Federal Register Notice with a 60-day
comment period soliciting comments on this collection of information
was published on October 6, 1999 (64 FR 54324). No comments were
received.
The relevant information collection requirements are as follows.
1. The Fuel Rating Rule, 16 CFR Part 306 (Control Number: 3084-
0068)
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, as required by the Petroleum Marketing Practices Act.
15 U.S.C. 2822(a)-(c). The Rule also requires refiners, producers,
importers, distributors, and retailers to retain records showing how
the ratings were determined, including delivery tickets or letters of
certification.
Estimated annual hours burden: 46,500 total burden hours (20,500
recordkeeping hours + 26,000 disclosure hours).
Recordkeeping: Based on industry sources, staff estimates that
205,000 fuel industry members incur an average annual burden of
approximately one-tenth of an hour to ensure retention of relevant
business records for the period required by the Rule, resulting in a
total of 20,500 hours.
Disclosure: Staff estimates that affected industry members incur an
average burden of approximately one hour to produce, distribute, and
post octane rating labels. Because the labels are durable, only about
one of every eight industry members (i.e., approximately 26,000 of
205,000 industry members) incur this burden each year, resulting in a
total annual burden of 26,000 hours.
Estimated annual cost burden: $749,000, rounded ($697,500 in labor
costs and $51,300 in non-labor costs).
Labor costs: Staff estimates that the work associated with the
Rule's
[[Page 69766]]
recordkeeping and disclosure requirements is performed by skilled
clerical employees at an average rate of $15.00 per hour. Thus, the
annual labor cost to respondents of complying with the recordkeeping
and disclosure requirements of the Fuel Rating Rule is estimated to be
$697,500 ((20,500 hours + 26,000 hours) x $15.00 per hour).
Capital or other non-labor costs: Staff believes that there are no
current start-up costs associated with the Rule. Because the Rule has
been effective since 1979 for gasoline, and since 1993 for liquid
alternative automtive fuels, industry members should already have in
place the capital equipment and other means necessary to comply with
the Rule. Industry members do, however, incur the cost of procuring
fuel dispenser labels to comply with the Rule. Based on estimates of
1,080,000 fuel dispensers (180,000 retailers x an average of six
dispensers per retailer) and a cost of thirty-eight cents each (per
industry sources) for labels that last for eight years, the total
annual labeling cost is estimated to be $51,300.
2. Regulations Under the Fur Products Labeling Act, 15 U.S.C. 69 et
seq. (``Fur Act'') (Control Number: 3084-0099)
The Fur Act prohibits misbranding and false advertising of fur
products. The Fur Products Regulations, 16 CFR 301 (``Fur
Regulations''), establish disclosure requirements that assist consumers
in making informed purchasing decisions, and recordkeeping requirements
that assist the Commission in enforcing these regulations. The Fur
Regulations also provide a procedure for exemption from certain
disclosure provisions under the Act.
Estimated annual hours burden: 150,000 hours, rounded (70,200 hours
for recordkeeping +79,450 hours for disclosure).
Recordkeeping: The Fur Regulations require that retailers,
manufacturers and processors, and importers keep records in addition to
those they may keep in the ordinary course of business. Staff estimates
that 1,500 retailers incur an average recordkeeping burden of about 13
hours per year (19,500 hours total); 225 manufacturers and fur
processors incur an average recordkeeping burden of about 52 hours per
year (11,700 total); and 1,500 importers of furs and fur products incur
an average recordkeeping burden of 26 hours per year (39,000 hours
total).\1\ The combined recordkeeping burden for the industry is
approximately 70,200 hours annually.
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\1\ For many of these importers, fur products probably would
constitute only a small portion of their import business.
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Disclosure: Staff estimates that 1,710 respondents (210
manufacturers +1,500 retail sellers of fur garments) each require an
average of 20 hours per year to determine label content (34,200 hours
total), and an average of five hours per year to draft and order labels
(8,550 hours total). Staff estimates that manually attaching a label to
an estimated 785,000 fur garments requires approximately two minutes
per garment for an approximately total of 26,200 hours annually. Thus,
the total burden for labeling garments is 68,950 hours per year.
Staff estimates that the incremental burden associated with the Fur
Regulations' invoice disclosure requirement, beyond the time that would
be devoted to preparing invoices in the absence of the Fur Regulations,
is approximately 30 seconds per invoice.\2\ The invoice disclosure
requirement applies to fur garments, which are generally sold
individually, and fur pelts, which are generally sold in groups of at
least 50, on average. Assuming invoices are prepared for sales of
785,000 garments, 150,000 groups of imported pelts (7.5 million pelts
50) and 150,000 groups of domestic pelts, the invoice
disclosure requirement entails a total burden of approximately 9,000
hours, rounded.
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\2\ The invoicing burden for PRA purposes excludes the time
that, absent the Fur Act regulations, respondents would still spend
for invoicing in the ordinary course of business. See 5 C.F.R.
Sec. 1320.3(b)(2).
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Staff estimates that the Fur Regulations' advertising disclosure
requirements impose an average burden of one hour per year for each of
the approximately 1,500 domestic fur retailers, or a total of 1,500
hours.
Thus, staff estimates the total disclosure burden to be
approximately 79,450 hours (68,950 hours for labeling + 9,000 hours for
invoices +1,500 hours for advertising).
Estimated annual cost burden: $1,611,000, rounded (solely relating
to labor costs).
Staff estimates the annual labor cost burden based on the following
computations using labor cost rates based on information from the
Department of Labor and the American Appeal Manufacturers Association:
------------------------------------------------------------------------
Burden
Task Hourly rate hours Labor cost
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Determine label content....... $15.00 34,200 $513,000
Draft and order labels........ 9.00 8,550 76,950
Attach labels................. 8.00 26,200 209,600
Invoice disclosures........... 10.00 9,000 90,000
Prepare advertising 15.00 1,500 22,500
disclosures..................
Recordkeeping................. 10.00 70,200 702,000
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Total..................... ........... ........... 1,614,050
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Staff believes that there are no current start-up costs or other
capital costs associated with the Fur Regulations. Because the labeling
of fur products has been an integral part of the manufacturing process
for decades, manufacturers have in place the capital equipment
necessary to comply with the Fur Regulations. Industry sources
indicates that much of the information required by the Fur Act and its
implementing rules would be included on the product label even absent
the Fur Regulations. Similarly, invoicing, recordkeeping, and
advertising disclosures are tasks performed in the ordinary course of
business so that covered firms would incur no additional capital or
other non-labor costs as a result of the Act.
3. Regulations under the Wool Products Labeling Act, 5 U.S.C. 68 et
seq. (``Wool Act'') (Control Number: 3084-0100)
The Wool Act prohibits misbranding of wool products. The Wool Act
Regulations, 16 C.F.R. 300 (``Wool Regulations''), establish disclosure
requirements that assist consumers in making informed purchasing
decisions and recordkeeping requirements that
[[Page 69767]]
assist the Commission in enforcing the Regulations.
Estimated annual hours burden: 1,236,000 hours (375,000
recordkeeping hours + 861,000 disclosure hours).
Recordkeeping: Based on Bureau of Census data and other
information, staff estimates that approximately 15,000 wool firms are
subject to the Wool Regulations' recordkeeping requirements. Based on
an average burden of 25 hours per firm, the total recordkeeping burden
is 375,000 hours.
Disclosure: Approximately 20,000 wool firms, producing or importing
about one billion wool products annually, are subject to the Wool
Regulations' disclosure requirements. Staff estimates the burden of
determining label content to be 20 hours per year per respondent, or a
total of 400,000 hours, and the burden of drafting and ordering labels
to be 5 hours per respondent per year, or a total of 100,000 hours.
Staff estimates that the process of attaching labels is now fully
automated and integrated into other production steps for about 35
percent of all affected garments. For the remaining 650,000,000 items
(65 percent of one billion), the process is semi-automated and requires
an average of approximately two seconds per item, for a total of
361,111 hours per year. Thus, the total estimated annual burden for all
respondents is 861,000 hours, rounded.
Estimated annual cost burden: $13,539,000, rounded (solely relating
to labor costs).
Staff estimates the annual labor cost burden based on the following
computations using labor cost rates based on information from the
Department of Labor and the American Apparel Manufacturers Association:
------------------------------------------------------------------------
Burden
Task Hourly rate hours Labor cost
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Determine label content.......... $15.00 400,000 $6,000,000
Draft and order labels........... 9.00 100,000 900,000
Attach labels.................... 8.00 361,111 2,888,888
Recordkeeping.................... 10.00 375,000 3,750,00
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Total........................ 13,538,888
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Staff believes that there are no current start-up costs or other
capital costs associated with the Wool Regulations. Because the
labeling of wool products has been an integral part of the
manufacturing process for decades, manufacturers have in place the
capital equipment necessary to comply with the Wool Regulations. Based
on knowledge of the industry, staff believes that much of the
information required by the Wool Act and its implementing rules would
be included on the product label even absent the Wool Regulations.
Similarly, recordkeeping and advertising disclosures are tasks
performed in the ordinary course of business so that covered firms
would incur no additional capital or other non-labor costs as a result
of the Wool Regulations.
4. Regulations Under The Textile Fiber Products Identification Act,
15 U.S.C. 70 et seq. (``Textile Act'') (Control Number: 3084-0101)
The Textile Act prohibits misbranding and false advertising of
textile fiber products. The Textile Act Regulations, 16 CFR 303
(``Textile Regulations''), establish disclosure requirements that
assist consumers in making informed purchasing decisions, and
recordkeeping requirements that assist the Commission in enforcing the
Regulations. The Regulations also contain a petition procedure for
requesting the establishment of generic names for textile fibers.
Estimated annual hours burden: approximately 6,433,000 hours
(725,000 recordkeeping hours + 5,708,000 disclosure hours).
Recordkeeping: Based on Bureau of Census data and other
information, staff estimates that approximately 29,000 textile firms
are subject to the Textile Regulations' recordkeeping requirements.
Based on an average burden of 25 hours per firm, the total
recordkeeping burden is 725,000 hours.
Disclosure: Approximately 39,000 textile firms, producing or
importing about 13.1 billion textile fiber products annually, are
subject to the Textile Regulations' disclosure requirements. Staff
estimates the burden of determining label content to be 20 hours per
year per respondent, or a total of 780,000 hours and the burden of
drafting and ordering labels to be 5 hours per respondent per year, or
a total of 195,000 hours. Staff estimates that the process of attaching
labels is now fully automated and integrated into other production
steps for about 35 percent of all affected garments. For the remaining
8.52 billion items (65 percent of 13.1 billion), the process is semi-
automated and requires an average of approximately two seconds per
item, for a total of 4,732,860 hours per year. Thus, the total
estimated annual burden for all respondents is 5,708,000 hours,
rounded.
Estimated annual cost burden: $58,568,000, rounded (solely relating
to labor costs).
Staff estimates the annual labor cost burden based on the following
computations using labor cost rates based on information from the
Department of Labor and the American Apparel Manufacturers Association:
------------------------------------------------------------------------
Burden
Task Hourly rate hours Labor cost
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Determine label content....... $15.00 780,000 $11,700,000
Draft and order labels........ 9.00 195,000 1,755,000
Attach labels................. 8.00 4,732,860 37,862,880
Recordkeeping................. 10.00 725,000 7,250,000
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Total..................... 58,567,880
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Staff believes that there are no current start-up costs or other
capital costs associated with the Textile Regulations. Because the
labeling of textile products has been an integral part of the
manufacturing process for decades, manufacturers have in place the
capital equipment necessary to comply with the Textile Regulations.
Industry sources
[[Page 69768]]
indicate that much of the information required by the Textile Act and
its implementing rules would be included on the product label even
absent the Textile Regulations. Similarly, invoicing, recordkeeping,
and advertising disclosures are tasks performed in the ordinary course
of business so that covered firms would incur no additional capital or
other non-labor costs as a result of the Textile Regulations.
5. The Care Labeling Rule, 16 CFR Part 423 (Control Number: 3084-
0103)
The Care Labeling Rule, 16 CFR part 423, requires manufacturers and
importers to attach a permanent care label to all covered textile
clothing in order to assist consumers in making purchase decisions and
in determining what method to use to clean their apparel. 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.
Estimated annual hours burden: 5,449,000 hours, rounded (solely
relating to disclosure \3\)
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\3\ The Care Labeling Rule imposes no specific recordkeeping
requirements. Although the Rule requires manufacturers and importers
to have reliable evidence that their products were successfully
tested, companies may provide as support current technical
literature or rely on past experience.
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Based on Bureau of Census data and other information, staff
estimates that approximately 24,000 manufacturers of textile apparel,
producing about 12.1 billion textile garments annually, are subject to
the Care Labeling Rule disclosure requirements. The burden of
developing proper care instructions may vary greatly among firms,
primarily based on the number of different lines of textile garments
introduced per year that require new or revised care instructions.
Staff estimates the burden of determining label content to be 43 hours
per year per respondent, or a total of 1,032,000 hours and the burden
of drafting and ordering labels to be 2 hours per respondent per year,
or a total of 48,000 hours. Staff estimates that the process of
attaching labels is now fully automated and integrated into other
production steps for about 35 percent of all affected garments. For the
remaining 7.865 billion items (65 percent of 12.1 billion), the process
is semi-automated and requires an average of approximately two seconds
per item, for a total of 4,369,444 hours per year. Thus, the total
estimated annual burden for all respondents is 5,449,000 hours,
rounded.
Estimated annual cost burden: $51,000,000 (solely relating to labor
costs).
Staff estimates the annual labor cost burden based on the following
computations using labor cost rates based on information from the
Department of Labor and the American Apparel Manufacturers Association:
------------------------------------------------------------------------
Burden
Task Hourly rate hours Labor cost
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Determine label content....... $15.00 1,032,000 $15,480,000
Draft and order labels........ 9.00 48,000 432,000
Attach labels................. 8.00 4,369,444 34,955,552
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Total..................... ........... ........... 50,867,552
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Staff believes that there are no current start-up costs or other
capital costs associated with the Care Labeling Rule. Because the
labeling of textile products has been an integral part of the
manufacturing process for decades, manufacturers have in place the
capital equipment necessary to comply with the Care Labeling Rule.
Based on knowledge of the industry, staff believes that much of the
information required by the Care Labeling Rule would be included on the
product label even absent those requirements. Similarly, invoicing,
recordkeeping, and advertising disclosures are tasks performed in the
ordinary course of business so that covered firms would incur no
additional capital or other non-labor costs as a result of the Care
Labeling Rule.
6. Regulations Under The Fair Packaging and Labeling Act, 15 U.S.C.
1450 (``FPLA'') (Control Number: 3084-0110)
The FPLA was enacted to eliminate consumer deception concerning
product size representations and package content information. The
Regulations that implement the FPLA, 16 CFR 500, establish requirements
for the manner and form of labeling applicable to manufacturers,
packagers, and distributors of 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.
Estimated annual hours burden: 12,000,000 total burden hours
(solely relating to disclosure.\4\
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\4\ To the extent that the FPLA implementing regulations require
sellers to keep records that substantiate ``cents off,''
``introductory offer,'' and/or ``economy size'' claims, staff
believes that most, if not all, of the records that sellers maintain
would be kept in the ordinary course of business, regardless of the
legal mandates.
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Staff conservatively estimates that approximately 1,200,000
manufacturers, packagers, distributors, and retailers of consumer
commodities make disclosures at an average burden of ten hours per
company, for a total disclosure burden of 12,000,000 hours.
Estimated annual cost burden: $168,000,000 (solely relating to
labor costs).
The estimated annual labor cost burden associated with the FLPA
disclosure requirements consists of the cost of one hour of managerial
or professional time per covered entity (at an average cost of $50 per
hour) and nine hours of clerical time per covered entity (at an average
cost of $10), for a total of $168,000,000 ($140 per covered entity
times 1.2 million entities).
Total capital and start-up costs are de minimis. The packaging and
labeling activities that require capital and start-up costs are
independent of the FPLA, and would be performed by covered entities in
the ordinary course of business regardless of the statute. Because FPLA
requires that the information be placed on packages and labels, which
firms provide in the ordinary course of business, there appear to be no
additional operation, maintenance, or purchase of service costs.
Debra A. Valentine,
General Counsel.
[FR Doc. 99-32392 Filed 12-13-99 8:45 am]
BILLING CODE 6750-01-M