Publication of Consent Agreements Accepted for Public Comment in the Federal Register

FEDERAL TRADE COMMISSION

16 CFR Parts 2 and 3

Publication of Consent Agreements Accepted for Public Comment in

the Federal Register

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission has revised Rule 2.34 and Rule

3.25(f) of its Rules of Practice, 16 CFR 2.34, 3.25(f) (1996), so that

the full text of consent agreements accepted for public comment will no

longer be published in the Federal Register. Instead, a summary of each

such agreement; the Analysis to Aid Public Comment that accompanies

each such agreement; and any Commission or Commissioner statements will

be published in the Federal Register after each such agreement is

placed on the public record. The Commission is not required by statute

to publish the full text of its consent agreements and related

documents in the Federal Register. Moreover, complete versions of these

materials are publicly available--from the Commission's Office of

Public Affairs, on its Internet World Wide Web Home Page (at ``http://

www.ftc.gov/os/actions.htm''), and from its Public Reference Room--

prior to the time they are published in the Federal Register. The

substantial expenditure of public funds required to publish full text

versions of consent agreements in the Federal Register therefore is not

warranted.

EFFECTIVE DATES: These rule amendments are effective on September 26,

1996. Comments may be filed with the Office of the Secretary until

October 28, 1996.

FOR FURTHER INFORMATION CONTACT:

Donald S. Clark, Office of the Secretary, Federal Trade Commission,

Sixth Street and Pennsylvania Avenue N.W., Washington D.C. 20580 (202)

326-2514.

SUPPLEMENTARY INFORMATION: Section 2.34 of the Federal Trade Commission

Rules of Practice, 16 CFR 2.34 (1996), currently provides that when the

Commission accepts for public comment a consent agreement under Part 2

of its Rules of Practice, it ``will publish the agreement, order, and

explanation in the Federal Register.'' Similarly, section 3.25(f) of

the Rules, 16 CFR 3.25(f) (1996), provides that when the Commission

accepts for public comment a consent agreement under Part 3 of its

Rules of Practice, it ``will publish the agreement, order, and

explanation in the Federal Register.'' The Commission also places all

of the documents associated with each Part 2 or Part 3 consent

agreement--including the agreement itself, the complaint, the Analysis

to Aid Public Comment, any separate Commission or Commissioner

statements, and a news release--on the public record. The Commission

makes these documents available to the public in a number of locations,

including its Office of Public Affairs (in both paper and electronic

form), on its Internet World Wide Web Home Page (at ``http://

www.ftc.gov/os/actions/htm'') (in electronic form), and in its Public

Reference Room (in paper form).

The Commission estimates that it can save more than $60,000 each

year by instead printing only the following documents, for each consent

agreement, in the Federal Register: (1) A summary announcing the

commencement of the public comment period and indicating that the full

text of the consent agreement documents is available from the

Commission's Office of Public Affairs, on its Internet Home Page, and

from its Public Reference Room; (2) the analysis to aid public comment;

and (3) any Commission or Commissioner statements. The Commission

believes that this substantial reduction in expenditures can be

effected without any adverse effects on the public comment process. At

the time a particular consent agreement is placed on the public

record--that is, on the date on which the news release

[[Page 50431]]

describing it is issued--members of the public are fully informed both

of the terms of the agreement and of how they can file comments

concerning it. In addition, the news release and all of the consent

agreement documents typically are made public--in both paper and

electronic form--at least one week before the consent agreement and the

analysis appear in the Federal Register. As a result, most individuals

and entities first learn about the consent agreement from the news

release, or from news coverage of the agreement. Any member of this

group who wishes both to comment and to review the full text of the

agreement can request a copy from the Public Reference Room--using the

address and telephone number in the news release--or pick up a copy in

person. Moreover, members of the public can secure an electronic copy

of each consent agreement package from the Commission's Internet Home

Page (at ``http://www.ftc.gov/os/actions.htm'') or from the electronic

bulletin board maintained by the Commission's Office of Public Affairs.

Furthermore, the Federal Register notice announcing the agreement will

continue to provide--through the analysis to aid public comment--a

comprehensive description of both the agreement and the draft

complaint. As a result, Federal Register users will continue to be

informed of both the contours of the agreement and that they can, if

they wish, file comments concerning it. If they need additional detail

from the agreement itself, they can secure electronic copies and/or

paper copies from the above sources.

These rule revisions relate solely to agency practice and, thus,

are not subject to the notice and comment requirements of the

Administrative Procedure Act, 5 U.S.C. 553(a)(2), nor to the

requirements of the Regulatory Flexibility Act, 5 U.S.C. 601(2). The

Paperwork Reduction Act, 44 U.S.C. 3501, does not apply because these

revisions do not contain requirements for information collection

subject to approval of the Office of Management and Budget. Although

the rule revisions are effective immediately, the Commission welcomes

comment on them and will consider further revision, as appropriate.

Such comments may be filed with the Office of the Secretary until

October 28, 1996.

List of Subjects in 16 CFR Parts 2 and 3

Administrative practice and procedure.

In consideration of the foregoing, the Commission hereby amends

Title 16, Chapter I, Subchapter A, Parts 2 and 3 of the Code of Federal

Regulations, as follows:

1. The authority for Parts 2 and 3 continues to read as follows:

Authority: Sec. 6, 38 Stat. 721, 15 U.S.C. 46.

2. Section 2.34 is amended so that the third sentence after the

introductory text beginning with ``The Commission * * *'' and ending

with ``* * * Federal Register.'' is revised to read as follows:

Sec. 2.34 Disposition.

* * * * *

* * * The Commission will publish the explanation in the Federal

Register. * * *

3. Section 3.25(f) is amended so that the second sentence in the

concluding text beginning with ``The Commission * * *'' and ending with

``* * * Federal Register.'' is revised to read as follows:

Sec. 3.25 Consent agreement settlements.

* * * * *

(f) * * * The Commission will publish the explanation in the

Federal Register. * * *

* * * * *

By direction of the Commission, Commissioner Azcuenaga

dissenting.

Donald S. Clark,

Secretary.

Dissenting Statement of Commissioner Mary L. Azcuenaga Concerning

Commission Decision To Stop Publishing in the Federal Register the Full

Text of Consent Agreements Accepted for Public Comment

Today the Commission revokes its long held policy of publishing

in the Federal Register the full text of consent agreements accepted

for public comment. Instead, the Commission will publish a summary,

an analysis and any Commission or commissioner statements. In

announcing this decision, the Commission also advises that complete

versions of the consent agreement, including complaints and orders,

will continue to be available from the Commission's Office of Public

Affairs (the press office), the Commission's home page on the World

Wide Web and the Commission's Public Reference Room (the office that

serves the general public). In an ideal world, the attainment of

which is surely very near, these alternative sources should be

sufficient. Unless we can be confident, however, that the other

sources are adequately serving the wide audience that follows the

Commission's actions in the Federal Register, the abandonment of

that means of disseminating information seems premature.

The Commission has a long and admirable tradition of genuine

attentiveness to public comment and of seeking it out even when it

is not required by law to do so. Out of deference to the members of

the public whose interests we serve, many of whom have a keen

interest in and need to know about Commission decisions, I would

have preferred, before dispensing with our current practice, to have

greater reason for confidence in the adequacy of the alternative

sources of the information.

[FR Doc. 96-24598 Filed 9-25-96; 8:45 am]

BILLING CODE 6750-01-M