Application to Office of Management and Budget for Clearance of Information Collection Requirements Contained in Proposed Telemarketing Sales Rule

FEDERAL TRADE COMMISSION

Application to Office of Management and Budget for Clearance of

Information Collection Requirements Contained in Proposed Telemarketing

Sales Rule

AGENCY: Federal Trade Commission (``FTC'').

ACTION: Notice of application to the Office of Management and Budget

(``OMB'') under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.)

for clearance of information collection requirements contained in a

proposed trade regulation rule pursuant to the Telemarketing and

Consumer Fraud and Abuse Prevention Act.

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SUMMARY: The FTC is seeking OMB clearance for information collection

requirements contained in proposed regulations implementing the

Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C.

6101-6108 (``Telemarketing Act'' or ``the Act'').

The Telemarketing Act requires the Commission to issue a rule

prohibiting deceptive and abusive telemarketing acts and practices.

Section 3(a)(1). In accordance with the statutory directive, the

Commission is proposing a rule that prohibits various

misrepresentations and other deceptive and abusive acts and practices

and that imposes various disclosure and recordkeeping requirements on

affected entities.

Specifically, the proposed rule requires that affected entities

retain certain records for a two-year period. These records include

advertising, [[Page 8389]] promotional materials, and telemarketing

scripts; information regarding prize recipients and prizes; sales

information; information regarding employees directly involved in

telephone sales; and written notices, disclosures and acknowledgements

required under the proposed rule. These records would be available for

inspection by Commission staff, by other government law enforcement

personnel, and by private litigants to determine compliance with the

rule.

Absent the recordkeeping requirements, Commission staff believes

that this is the type of information that would be retained by these

entities in any event during the normal course of business because this

information would be useful in resolving private, non-governmental

inquiries and disputes. The definition of ``burden'' for OMB purposes

excludes any effort that would be expended regardless of a regulatory

requirement. 5 C.F.R. Sec. 1320.7(b)(1). Thus, the only burden would be

for retaining the records for an additional period of time.

Currently, staff is estimating that 40,000 entities will be

affected and that it will take each affected entity one hour per year

to retain these documents for an additional period of time. Thus, the

total burden for the proposed rule is estimated at 40,000 hours (1 hour

per year times 40,000 industry members). However, staff is seeking

comments, particularly quantitative estimates, about the amount of time

it would take to comply with these requirements, and the comments may

result in a change in the estimated burden hours. The basis for this

estimate is described in more detail in the Supporting Statement

submitted with the Request for OMB Review.

DATES: Comments on this application must be submitted on or before

March 31, 1995.

ADDRESSES: Send comments both to Office of Information and Regulatory

Affairs, Office of Management and Budget, New Executive Office

Building, Room 3228, Washington, DC 20503, ATN: Desk Officer for the

Federal Trade Commission, and to the Office of the Secretary, Room 159,

Federal Trade Commission, Washington, DC 20580. Copies of the

submission to OMB may be obtained from the Public Reference Section,

Room 130, Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: David M. Torok, Attorney, Bureau of

Consumer Protection, Division of Marketing Practices, Federal Trade

Commission, Washington, DC 20580, (202) 326-3140.

Donald S. Clark,

Secretary.

[FR Doc. 95-3538 Filed 2-13-95; 8:45 am]

BILLING CODE 6750-01-M