Agency Information Collection Activities; Submission for OMB Review; Comment Request

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

------------------------------------------------------------------------

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

------------------------------------------------------------------------

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

---------------

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