[Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
[Notices]
[Pages 44349-44356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21165]



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FEDERAL TRADE COMMISSION


Paperwork Reduction Act Applications

AGENCY: Federal Trade Commission.

ACTION: Notice of application to OMB under the Paperwork Reduction Act 
(44 U.S.C. 3501-3520) for clearance of information collection 
requirements contained in twenty-four regulations issued or enforced by 
the Commission. The Commission is also applying to OMB for clearance of 
information collection requirements imposed during the performance of 
administrative or procedural tasks.

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SUMMARY: The FTC is seeking OMB clearance for provisions of several 
regulations, issued or enforced by the Commission, that contain or may 
contain requirements for the collection of information under the 
Paperwork Reduction Act (``PRA''). The Paperwork Reduction Act has been 
amended to redefine ``collection of information'' to include 
``disclosure to third parties or the public.'' This amendment serves to 
overturn the Supreme Court decision in Dole v. United Steelworkers of 
America, 494 U.S. 26 (1990), which held that such disclosures were not 
subject to the PRA.
    In light of the amendment, the FTC is seeking to modify current OMB 
clearances by revising its estimates of burdens to include provisions 
requiring disclosures to consumers or other third parties. The FTC is 
also seeking approval for other disclosure requirements contained in 
rules that do not have current OMB clearance. Further, some requests 
for clearance include recordkeeping and reporting requirements.
    The FTC is also seeking OMB clearance for information collection 
requests imposed during the performance of administrative or procedural 
tasks. This information is submitted voluntarily to the Commission by 
persons who wish to do business with or receive some benefit from the 
agency. Because of the limited burden imposed, these requests have been 
combined into a single item. See item number 25, infra.
    Expansion of the PRA to include disclosure requirements has 
substantially increased the reportable burden hours attributable to the 
regulations enforced by the Commission. Disclosure requirements 
specifically mandated by Congress account for much of this increase. Of 
the twenty-four regulations addressed by this notice of application, 
eleven entail burden estimates associated with statutorily required 
disclosure provisions. For example, the Truth-in-Lending, Textile Act, 
and Fair Packaging Regulations all involve large burden estimates, 
totaling approximately 69 million burden hours. 

[[Page 44350]]
Much of this burden reflects statutory provisions that require the 
disclosure of such basic consumer information as the annual percentage 
interest rate charged on loans, the composition of clothing and other 
textile items, and the size and content of packaged products. While the 
burden imposed on any individual party is often quite small (sometimes 
measured in seconds), the number of affected parties is often very high 
(sometimes measured in millions), and the total burden is therefore 
large. See e.g., the Regulations implementing the Equal Credit 
Opportunity Act, the Electronic Fund Transfer Act, and the Consumer 
Leasing Act.
    Additionally, the burden estimates in this application are larger 
than in the past because the Commission is seeking clearance for 
certain statutory recordkeeping and reporting requirements that were 
not previously submitted to OMB. Examples include the regulations under 
the Textile, Wool, and Fur Acts, totaling approximately 1,500,000 
burden hours.
    At this time, the Commission is seeking clearance for all statutory 
mandated ``collections of information'' contained in its rules. 
Individual Supporting Statements that detail each burden estimate and 
affected entities have been provided to OMB for review. Copies of these 
Supporting Statements may be obtained in the Public Reference Section, 
Room 130, Federal Trade Commission.

DATES: Comments on this application must be submitted on or before 
September 25, 1995.

ADDRESSES: Send comments both to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3228, Washington, DC 20503, ATTN: Desk Officer 
for the Federal Trade Commission, and to the Office of the General 
Counsel, Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Elaine W. Crockett, Attorney, Office of General Counsel, Federal Trade 
Commission, Washington, DC 20580 (202)-326-2453.

SUPPLEMENTARY INFORMATION: 

    The following rules will be affected:
    1. The Games of Chance Rule, 16 CFR part 419, establishes both 
recordkeeping and disclosure requirements for food and gasoline 
retailers in conducting and advertising games of chance. The Rule 
requires that games promoters retain records showing compliance with 
certain provisions, and identify winners, prizes, and number of game 
pieces. The recordkeeping requirements assist in the enforcement of the 
Rule.
    The Rule also requires that games promoters disclose the odds-of-
winning and other prize information in broadcast and print 
advertisements. Promoters must also post a winners' list, containing 
the names and addresses of winners, the prizes won, and the number of 
game pieces. The disclosure requirements assist customers in 
determining both the likelihood of winning prizes and the legitimacy of 
the game.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval of 4,500 hours relating to the Rule's recordkeeping provisions 
(control number 3084-0067). The FTC is seeking approval to add 3,750 
burden hours relating to disclosure requirements, for a total burden of 
8,250 hours.
    Approximately 30 independent firms contract to conduct an average 
of 50 promotions per year. Most of these firms already calculate the 
information required by the Rule in the ordinary course of business in 
order to determine the contract price to charge the client for the game 
and to protect the integrity of the game if it is challenged by a 
private legal action. Accordingly, the FTC estimates that the 
additional burden of disclosing this information to third parties is 
approximately 2.5 hours per promotion, for an additional total burden 
of 3,750 hours.
    Disclosures: Approximately 30 game promoters conduct an average of 
50 games per year at an average burden of 2.5 hours.
    2. The Funeral Rule, 16 CFR part 453, prohibits as unfair or 
deceptive acts or practices a variety of misrepresentations and other 
practices in the sale of funeral goods and services. The Rule requires 
funeral providers to give to consumers lists that display prices for 
individual funeral goods and services (such as the price for embalming 
or the price for use of funeral home facilities during the funeral 
ceremony) and a statement showing the items that were actually 
purchased by the consumer. The price lists and statements also contain 
several disclosures about basic funeral-related legal requirements. The 
disclosure requirements enable consumers to make reasoned purchasing 
decisions.
    Funeral providers must also retain copies of the price lists and 
the ``statements of goods and services selected'' for a one-year 
period. These recordkeeping requirements assist the Commission in the 
enforcement of the Rule.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 21,000 hours relating to recordkeeping provisions (control 
number 3084-0025). The FTC seeks to modestly adjust the recordkeeping 
burden estimate to 22,300 hours and to add 54,050 burden hours relating 
to disclosure requirements, for a total burden of 76,350 hours.
    The recordkeeping estimate is consistent with the 1988 estimate for 
recordkeeping hours. Much of this information is already kept during 
the ordinary course of business for tax purposes or other business 
reasons. While the precise amount of time needed to retain the records 
required by the Rule would vary from one funeral provider to another, 
the incremental time attributed to the Rule should not exceed an 
average of one hour per funeral provider per year.
    The disclosure estimate is based on the amount of time required to 
update price lists as services or prices change. This amount of time 
would also vary from one funeral provider to another; however, the FTC 
estimates that an average of 2 hours per funeral provider per year 
would be necessary to comply with these disclosure requirements.
    Recordkeeping: Approximately 22,300 funeral providers retain 
required records at an average burden of 1 hour per year. Disclosures: 
Funeral providers disclose required information to customers at an 
average burden of 2 hours per year.
    3. The Equal Credit Opportunity Act (``ECOA''), 15 U.S.C. 1691 et 
seq., prohibits discrimination in the extension of credit on the basis 
of sex, marital status, race, color, religion, national origin, age, 
derivation of income from a public assistance program, or good faith 
exercise of any right under the Consumer Credit Protection Act. 
Regulation B, 12 CFR part 202, promulgated by the Board of Governors of 
the Federal Reserve System, implements the ECOA. Among other things, 
Sec. 202.12 of Regulation B requires creditors to retain records 
relating to consumer credit applications for 25 months, and records of 
business credit applications for 12 months. Section 202.13 of 
Regulation B requires creditors that receive mortgage credit 
applications to record the applicant's race or national origin, sex, 
marital status, and age. These requirements assist in enforcement of 
the Act and implementing Regulation.
    Regulation B also has two primary disclosure provisions, both of 
which are statutorily required. First, creditors are required to 
provide applicants with information about adverse credit actions. 15 
U.S.C. 1691(d). Second, creditors are required to provide notification 
to mortgage credit 

[[Page 44351]]
applicants concerning appraisal reports. 15 U.S.C. 1691(e). These 
disclosure requirements assist consumers in understanding their rights 
under the ECOA. They also assist the Commission in detecting unlawful 
discrimination.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 1,004,000 hours relating to recordkeeping provisions and 
requirements to collect information about an applicant's race/national 
origin, sex, age, and marital status (control number 3084-0087). The 
FTC is seeking approval to add 13,400,000 hours relating to disclosure 
requirements, for a total burden of 14,400,000 hours.
    In 1988, the FTC estimated Regulation B's recordkeeping burden to 
be 1,000,000 hours. At that time, the FTC also allocated 4,000 hours to 
collecting information about race/national origin, sex, age, and 
marital status. The FTC is now recalculating the burden estimate for 
this requirement. The credit industry has experienced significant 
growth in recent years and the FTC now estimates that approximately 
4,000 creditors are subject to this requirement and that approximately 
4 million credit applications are affected by this requirement. Because 
Regulation B contains a model form that creditors may use to collect 
the information, staff estimates that the burden associated with this 
recordkeeping requirement is no more than one minute for each 
application for a burden total of 66,700 hours.
    The disclosures which account for the additional hours are all 
specifically mandated by the ECOA. Appoximately 1 million creditors are 
subject to the requirement to provide notice of adverse credit action 
and 200 million accounts are covered by this requirement. Because the 
Regulation provides model forms for these notices, the burden of 
providing notice of adverse action is estimated to be 4 minutes for 
each application, for a burden total of 13.3 million hours.
    The other disclosure requirement under Regulation B involves 
providing appraisal reports to consumers. The FTC estimates that 4,000 
creditors and 4 million mortgage credit applications are subject to 
this requirement. Because creditors have the option to include the 
required notice on other forms that would be provided to the consumer 
during the ordinary course of business, the additional burden of making 
this disclosure is estimated to be 15 seconds for each application, for 
a total burden estimate of 16,666 hours.
    Disclosures: Approximately 4,000 mortgage credit firms collect 
information about approximately 4 million credit applications at a 
burden estimate of 1 minute per collection. Approximately 1 million 
credit firms provide notices of adverse action to approximately 200 
million accounts per year at an average burden estimate of 15 seconds 
per notice. Approximately 4,000 mortgage credit firms provide notices 
concerning approximately 4 million applications at an average burden of 
15 seconds per notice.
    4. The Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq. 
(``EFTA''), requires accurate disclosure of the costs, terms and rights 
relating to electronic fund transfer (EFT) services to consumers. 
Regulation E, promulgated by the Board of Governors of the Federal 
Reserve System, implements the EFTA. Regulation E contains several 
disclosure requirements relating to the terms and conditions of 
electronic fund transfers services. For example, among other 
disclosures, Regulation E requires financial institutions to (1) make 
initial disclosures to a customer about the terms and conditions of 
electronic fund transfer accounts; (2) deliver written notices 
concerning changes in certain terms or conditions in the customer's 
account; and (3) send periodic statements to customers concerning any 
account to or from which electronic fund transfers can be made. The 
disclosure requirements of Regulation E assist consumers in assessing 
the costs and terms of EFT services.
    The vast majority of Regulation E's disclosure requirements are 
expressly mandated by the EFTA. See, e.g., consumer liability for 
unauthorized use, 15 U.S.C. 1693g; initial disclosures, 15 U.S.C. 
1693c(a); and documentation of transfers and receipts.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 500,000 hours relating to recordkeeping provisions 
(control number 3084-0085). The FTC is seeking approval to add 
20,000,000 burden hours relating to disclosure requirements, for a 
total new burden of 20,500,000 hours.
    Regulation E contains a wide variety of disclosure requirements. 
The number of regulated entities and the estimated amount of time 
necessary to comply with each requirement varies widely according to 
the specific provisions of each requirement. As stated above, the 
majority of these disclosures are statutorily required. It is also 
extremely difficult to quantify precisely the number of entities and 
the number of transactions affected by these requirements. In recent 
years a large number of additional entities subject to Regulation E 
have entered the market. Thus, the burden hours discussed below reflect 
the increase in additional entities covered by the Regulation.
    Disclosures: Approximately 500,000 firms offer EFT services to 
consumers. However, the average burden hours vary significantly 
according to the type of transaction involved and related disclosures. 
For example, EFT initial account disclosures are sent to approximately 
1 million new accounts per year at an average burden of 1 second per 
account, whereas investigations and resolutions of account errors 
average 10 minutes per complaint per year.
    5. The Consumer Leasing Act, 15 U.S.C. 1667 et seq., requires 
accurate disclosure of the costs and terms of leases to consumers. 
Regulation M, promulgated by the Board of Governors of the Federal 
Reserve System, implements the Consumer Leasing Act (``CLA''). 
Regulation M imposes disclosure requirements on all types of lessors, 
including leasing companies, finance companies, auto dealers, and some 
furniture, appliance, radio and television dealers. The written 
disclosures required by Regulation M are specifically required by the 
CLA. See 15 U.S.C. 1667a. Similarly, the advertising disclosures 
required by Regulation M are also specifically required by the CLA. See 
15 U.S.C. 1667c. These disclosures assist consumers in understanding 
the terms of leases prior to entering into a lease agreement. 
Regulation M implements the disclosure provisions which are mandated by 
statute.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 100,000 hours relating to recordkeeping provisions 
(control number 3084-0086). The FTC is seeking approval to add 433,400 
burden hours relating to disclosure requirements, for a total burden of 
533,400 hours.
    The number of consumer automobile leases (the largest category of 
consumer leases) has increased considerably in recent years and the 
current burden estimate reflects this growth. The FTC estimates that 
approximately 2,500,000 lease transactions are now subject to the 
written disclosure requirements and that providing the required 
disclosures takes an average of 10 minutes per lease for a total burden 
estimate of 416,000 hours. With respect to lease advertising 
disclosures, most (although certainly not all) lease promotions offer 
automobile transactions. The FTC estimates that approximately 1 million 
lease advertisements per year are affected by the Rule at 1 minute per 
advertisement for a total burden estimate of 16,666 burden hours. 

[[Page 44352]]

    Disclosures: Firms leasing products to consumers make disclosures 
for approximately 2,500,000 lease transactions per year at an average 
burden of 10 minutes per lease. Approximately 1 million lease 
advertisements are placed per year at an average burden of 1 minute per 
advertisement.
    6. The Truth-in-Lending Act, 15 U.S.C. 1601 et seq. (``TILA''), was 
enacted to foster comparison credit shopping and informed credit 
decisionmaking by requiring accurate disclosure of the costs and terms 
of credit to consumers. Regulation Z, promulgated by the Board of 
Governors of the Federal Reserve System, implements the TILA. 
Regulation Z requires creditors to calculate and disclose terms that 
apply to both open-end credit (e.g., revolving credit or credit lines) 
and closed-end credit (e.g., installment financing). Regulation Z 
imposes disclosure requirements on all types of creditors in connection 
with consumer credit, including mortgage companies, finance companies, 
retailers, and credit card issuers, to ensure that consumers are fully 
apprised of the terms of financing prior to consummation of the 
transaction and, in some instances, during the loan term. It also 
imposes advertising disclosure requirements on advertisers of consumer 
credit. Among other things, Regulation Z also establishes billing error 
resolution procedures and limits consumer liability for the 
unauthorized use of credit cards. The vast majority of Regulation Z's 
disclosure requirements are expressly mandated by the TILA. See e.g., 
open-end initial disclosures, 15 U.S.C. 1637(a); and open-end periodic 
disclosures, 15 U.S.C. 1637(b). In most instances, the disclosure and 
other requirements of Regulation Z form the basis both for 
administrative enforcement of the TILA by the FTC and other agencies 
and for private rights of action by private litigants.
    Estimate of Information Collection Burden. The FTC has OMB approval 
for 1,000,000 hours relating to recordkeeping provisions (control 
number 3084-0088). The FTC is seeking approval to add 40,600,000 burden 
hours relating to disclosure requirements, for a total burden estimate 
of 41,600,000 hours.
    As stated above, the majority of these disclosure provisions are 
statutorily required. In recent years Congress has amended the TILA to 
include additional requirements. In addition, the various types of 
credit accounts affected by the Regulation have greatly increased.
    Disclosures: Regulation Z contains a wide variety of disclosure 
requirements. It is extremely difficult to quantify the number of 
entities and the number of transactions affected by these requirements. 
Further, the number of regulated entities and the estimated amount of 
time necessary to comply with each requirement varies widely according 
to the specific provisions of each requirement. For example, businesses 
place approximately 200,000 open-end home equity line of credit 
advertisements per year at an average burden of 5 minutes per 
advertisement. On the other hand, 4 million residential loan 
originations are made per year at 10 minutes per loan.
    7. Textile Fiber Products Identification Act. The Textile Fiber 
Products Identification Act, 15 U.S.C. 70 et seq. (``Textile Act''), 
prohibits misbranding and false advertising of textile fiber products. 
The Textile Act Regulations, 16 CFR part 303, which implement the 
Textile Act, require accurate disclosure of material product 
information in a standardized format. Many of these disclosures are 
required by the Textile Act. See 15 U.S.C. 70(b). The disclosure 
requirements assist consumers in making informed purchasing decisions.
    The Regulations also require manufacturers and marketers who 
substitute labels (e.g., resellers) to maintain records, invoices, and 
other documents which reflect the bases relied upon in making fiber 
content and country of origin disclosures. These recordkeeping 
requirements are specifically mandated by the Textile Act. See 15 
U.S.C. 70d. The recordkeeping requirements assist the Commission in 
enforcing the Regulations.
    The Regulations also contain a petition procedure for requesting 
the establishment of generic names for textile fibers. The information 
submitted is used by the FTC to determine whether the petition should 
be granted.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 50 hours relating to procedures for requesting the 
establishment of generic names for textile fibers (control number 3084-
0047). The FTC is seeking approval to add 1,291,000 hours for 
recordkeeping requirements, which are statutorily required. The FTC is 
also seeking to add 14,209,000 hours relating to disclosure 
requirements, for a total burden estimate of 15,500,000 hours.
    Recordkeeping: Approximately 30,000 textile firms retain required 
records at an average burden of 43 hours per year. Disclosures: 
Approximately 40,000 textile firms make disclosures for 9,300,000,000 
covered products at an average burden of 5.5 seconds per item. 
Petitions: Approximately 1 textile firm submits 1 petition per year at 
an average burden of 50 hours.
    8. Wool Products Labeling Act. The Wool Products Labeling Act, 15 
U.S.C. 68 et seq. (``Wool Act''), prohibits misbranding of wool 
products. The Wool Act Regulations, 16 CFR part 300, require accurate 
disclosure of material information about wool products, including fiber 
content and country of origin disclosures. Many of these disclosures 
are mandated by the Wool Act. See 15 U.S.C. 68b. The disclosure 
requirements assist consumers in making informed purchasing decisions.
    The Regulations also require manufacturers and other marketers of 
covered products to maintain records that support both claims made on 
labels and invoices and savings representations. These recordkeeping 
requirements are specifically mandated by the Wool Act, see 15 U.S.C. 
68d, and assist the Commission in enforcing the Regulations.
    The Regulations also contain a procedure for filing a petition 
concerning whether or not representations of the fiber content of a 
class of articles are commonly made, or whether or not the textile 
content of certain products is insignificant or inconsequential. The 
information submitted is used by the FTC to determine whether the 
petition should be granted.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 50 hours relating to recordkeeping provisions (control 
number 3084-0047). The FTC is seeking to adjust its current 
recordkeeping burden estimate to 191,000 hours for these requirements, 
which are statutorily required, and to add 2,100,000 hours relating to 
disclosure requirements, for a new burden estimate of 2,291,000 hours.
    Recordkeeping: Approximately 15,000 wool firms retain records at an 
average burden of 12.73 hours per firm. Disclosures: Approximately 
20,000 wool firms make disclosures on 1,375,000,000 covered products at 
an average burden of 5.5 seconds per item. Petitions: Approximately 1 
wool firm submits 1 petition per year at an average burden of 50 hours.
    9. Fur Products Labeling Act. The Fur Products Labeling Act, 15 
U.S.C. 69 (``Fur Act''), prohibits misbranding and false advertising of 
fur products. The Fur Products Regulations, 16 CFR part 301, which 
implement the Fur Products Labeling Act, require accurate disclosure of 
material information about fur products, including the fur content 

[[Page 44353]]
and the country of origin. Many of these disclosures are mandated by 
the Fur Act. See 15 U.S.C. 69b. The disclosure requirements assist 
consumers in making informed purchasing decisions.
    The Regulations also require manufacturers and dealers in fur 
products to retain records to support claims made on labels and to 
support representations made in advertisements. The recordkeeping 
requirements are specifically mandated by the Fur Act, see 15 U.S.C. 
69e, and assist the Commission in enforcing the Regulations.
    The Regulations also provide a procedure for exemption from certain 
disclosure provisions under the Act.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 50 hours relating to recordkeeping provisions (control 
number 3084-0047). The Commission is seeking approval to adjust its 
current recordkeeping burden for these requirements, which are 
statutorily required, to 59,000 hours and to add 78,500 hours relating 
to disclosure requirements, for a total burden estimate of 137,600 
hours.
    Recordkeeping: Approximately 7,500 manufacturers and retailers 
retain records at an average burden of 48 hours for manufacturers and 
12 hours for retailers. Disclosures: Approximately 1,600 fur firms 
disclose information at an average burden of 1 hour per firm. 
Petitions: Approximately 1 fur firm submits 1 petition per year at an 
average burden of 50 hours.
    10. The Appliance Labeling Rule, 16 CFR part 305, establishes 
testing, reporting, recordkeeping, and labeling requirements, for 
manufacturers of certain appliances in disclosing and advertising 
information relating to energy consumption of water usage. The Rule's 
testing and disclosure requirements assist consumers in comparing the 
energy efficiency or consumption of competing products. The Rule also 
requires manufacturers to submit relevant data regarding energy or 
water usage in connection with the products they manufacture. The 
Commission uses this data to compile the ranges of comparability for 
covered appliances for publication in the Federal Register. In 
addition, the submissions may be used for comparison purposes in 
enforcement actions involving alleged misstatements on labels or in 
advertisements.
    The Rule also requires manufacturers to keep records of test data 
to derive information included on the labels. The records may be 
requested and used by the Commission for enforcement purposes.
    All of the requirements discussed above are specifically imposed by 
the Energy Policy and Conservation Act of 1995. See, e.g., 42 U.S.C. 
6296(a); 42 U.S.C. 6294(c)(1)(A); 42 U.S.C. 6296(b)(4); and 42 U.S.C. 
6296(b)(2).
    Estimate of Information Collection Burden. The FTC seeks approval 
of 2,600 hours for these recordkeeping and reporting provisions, which 
are statutorily imposed, and 923,400 hours for these disclosure 
provisions, which are also statutorily imposed, for a total burden 
estimate of 926,000 hours.
    The Rule contains a wide variety of recordkeeping and disclosure 
requirements. The number of regulated entities and the estimated amount 
of time necessary to comply with each requirement varies widely 
according to the specific provisions of each requirement. For example, 
the test procedure for dishwashers requires an estimated 2 hours for 
each of 70 basic models for a total burden of 140 hours. On the other 
hand, the test procedure for central air conditioners requires an 
estimated burden of 24 hours multiplied by 2 units tested for each of 
1,500 basic models for a total burden of 72,000 hours.
    11. The Fuel Rating Rule, 16 CFR part 306, establishes standard 
procedures for determining, certifying and disclosing the octane rating 
of automotive gasoline and the automotive fuel rating of alternative 
liquid automotive fuel. These requirements are specifically mandated by 
the Petroleum Marketing Practices Act. See 15 U.S.C. 2822(a)-(c). The 
fuel rating determination, certification and labeling requirements 
establish a framework that provides consumers with reliable, 
comparable, and readily available information about the fuel ratings of 
similar types of fuel.
    The Rule also requires refiners, producers, importers, distributors 
and retailers to retain records of delivery tickets, letters of 
certification or tests upon which automotive fuel ratings are based. 
The primary purpose of the Rule's recordkeeping requirements is to 
preserve evidence of automotive fuel rating certification for 
enforcement purposes.
    Estimate of Information Collection Burden. The FTC has current OMB 
approval for 19,000 hours relating to recordkeeping provisions (control 
number 3084-0068). The FTC is seeking approval to add 24,000 burden 
hours for disclosure requirements, which are specifically required by 
statute, for a total burden of 43,000 hours.
    Recordkeeping: Approximately 24,000 automotive fuel industry 
members retain records at an average annual burden of 6 minutes per 
industry member. Disclosures: Approximately 190,000 automotive fuel 
industry members make required disclosures at an average annual burden 
of 1 hour per industry member.
    12. The Alternative Fuel Rule, 16 CFR part 309, establishes uniform 
labeling requirements for alternative fuels and alternative fueled 
vehicles. These disclosures provide consumers with reliable and 
comparable information about the fuel ratings of similar types of fuel 
and alternative fueled vehicles. The Rule also requires affected 
entities to retain records relating to representations made about fuel 
ratings for non-liquid alternative fuels and estimated cruising ranges 
and emission certification standards for alternative fueled vehicles. 
The primary purpose of these recordkeeping requirements is to preserve 
evidence of compliance with the Rule.
    Estimate of Information Collection Information. The Commission has 
current OMB approval for 159 hours relating to recordkeeping provisions 
(control number 3084-0094). The Commission is revising its 
recordkeeping burden from 159 to 189 burden hours. The Commission is 
also seeking approval to add 22,167 burden hours relating to disclosure 
requirements, for a new burden total of 22,400 hours.
    Recordkeeping: Approximately 1,658 automotive fuel industry members 
retain records at an average annual burden of 6 minutes per industry 
member. Disclosures: These requirements vary according to the type of 
disclosure required and the members of the automotive fuel industry 
affected. For example, approximately 350 industry members are affected 
by the fuel rating certification requirements for non-liquid 
alternative fuels at an estimated annual burden of 24 hours per 
industry member for a total burden of 8,400 hours. The burden for the 
same industry members to make a fuel rating determination is estimated 
at 2 hours per industry member for a total burden of 700 hours.
    13. The ``900'' Number Rule, 16 CFR part 308, establishes 
requirements for advertising and operating pay-per-call services. The 
Rule also establishes procedures for billing and collecting charges for 
these services. The primary purpose of the Rule is to assist in 
preventing unfair and deceptive acts or practices by ensuring that 
consumers are informed of cost and other material information prior to 
calling 900 numbers; to provide consumers with adequate billing 
information subsequent to calling 900 numbers; and to establish a 
mechanism for disputing charges for 

[[Page 44354]]
900 number calls. The advertising, preamble, and billing statement 
disclosures are specifically mandated by the Telephone Disclosure and 
Dispute Resolution Act. 15 U.S.C. 5701 et seq. (``TDDRA''). The TDDRA 
also requires the rules under the billing dispute resolution portion of 
the Rule to be substantially similar to the requirements imposed under 
the Truth-in-Lending Act and Fair Credit Billing Acts. 15 U.S.C. 
5721(a)(2).
    In addition, any common carrier who provides telecommunication 
services to a provider of pay-per-call services is required to provide 
the Commission with financial information and other records relating to 
the arrangement. This requirement assists in the enforcement of the 
Rule by permitting the Commission to obtain information from telephone 
companies that provide transmission services to 900 number providers.
    Estimate of Information Collection Burden. The FTC seeks approval 
for 125 burden hours relating to reporting requirements and 3,241,000 
burden hours relating to disclosure requirements, for a total burden 
estimate of 3,241,200.
    Reporting: Approximately 25 common carriers make records available 
to the Commission at an average burden of 5 hours per submission. 
Disclosures: Approximately 20,000 information providers place 
approximately 3 advertisements per year at an average burden of 1 hour 
per provider. Approximately 60,000 pay-per-call services are required 
to make disclosures in the preamble at an average burden of 10 hours 
for each preamble. Approximately 20,000 information providers are 
required to ensure that disclosures appear on each billing statement at 
an average burden estimate of 12 hours per provider.
    14. The Care Labeling Rule, 16 CFR part 423, requires manufacturers 
and importers to attach a permanent care label to all covered textile 
clothing. 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. These labels disclose information about 
washing or dry cleaning the apparel or fabric. These requirements 
assist consumers in making purchasing decisions and in deciding what 
method to use to clean their apparel. Professional cleaners also use 
this information to clean apparel in a manner that avoids damage to the 
garment. The Rule also provides a procedure whereby a member of the 
industry may petition the Commission for an exemption for products that 
are claimed to be harmed in appearance by the requirement for a 
permanent label.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for a burden estimate of 3,985,000 hours relating to 
disclosure requirements.
    Disclosures: Approximately 25,000 apparel manufacturers and 
importers make disclosures at an average burden of 159 hours per 
company per year. Petitions: Only 1 petition, subsequently withdrawn, 
has been filed in recent years. An estimated 50 hours for preparing a 
petition has been incorporated into the hours calculated for disclosure 
requirements.
    15. The Negative Option Rule, 16 CFR part 425, establishes 
disclosure requirements for sellers who use negative option plans. 
Negative option plans require the consumer to affirmatively decline an 
offer of merchandise or else have the merchandise shipped 
automatically. The Rule requires sellers of these plans to disclose the 
material terms of the plan and cancellation procedures in promotional 
materials. This information allows consumers to weigh the benefits and 
burdens of negative option plans.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for a burden estimate of 15,500 hours relating to disclosure 
requirements.
    Disclosures: Approximately 124 negative option plan providers 
comply with disclosure requirements at an average burden of 125 hours 
per company.
    16. The Amplifier Rule, 16 CFR part 432, establishes requirements 
for disclosing power output specifications in advertising. The Rule 
also specifies test conditions to be used to obtain this information. 
Consumers use the information to make comparisons among the types and 
brands of audio equipment.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for a burden estimate of 2,700 hours relating to disclosure 
requirements.
    Disclosures: Approximately 300 new products must be tested annually 
at an average burden of 1 hour per product. Approximately 1200 magazine 
advertisements appear each year for an average burden of 2 hours per 
advertisement.
    17. The Mail Order or Telephone Merchandise Rule, 16 CFR part 435, 
requires mail or telephone order merchants to substantiate any shipment 
representation; to notify the consumer of, and obtain consent for, any 
shipment delay; and to make prompt and full refunds when the consumer 
exercises a cancellation option or the merchant is unable to meet the 
Rule's other requirements. The disclosure requirements ensure that 
consumers are provided with reliable shipment information in the 
solicitation of mail or telephone order sales and in notifications of 
delays in shipment.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for a burden estimate of 16,213,300 burden hours relating to 
disclosure requirements.
    Disclosures: Approximately 70,560 mail and telephone order 
merchants make required disclosures at an average burden of 230 hours 
per merchant per year.
    18. The Franchise Rule, 16 CFR part 436, requires franchisors and 
franchise brokers to furnish a disclosure document to prospective 
franchisees prior to sale. This document contains information on 20 
subjects relating to the franchisor, the franchisor's business, and the 
nature of the proposed franchise relationship. Franchisors must also 
disclose additional information if they make any claim about actual or 
potential sales, income, or profits for a prospective franchisee. These 
disclosures assist consumers in making informed investment decisions 
and otherwise verifying the representations of the franchisor.
    Estimate of Information Collection Burden. The FTC is requesting 
approval for an estimated burden of 36,200 hours relating to disclosure 
requirements.
    Disclosures: Approximately 3,613 franchisors and franchise brokers 
make required disclosures at an average burden of 10 hours per firm.
    19. The Used Car Rule, 16 CFR part 455, requires used car dealers 
to disclose information about warranty coverage, if any, and the 
mechanical condition of used cars on a one page, two-sided Buyers 
Guide, which must be placed in the window of the car. This information 
allows consumers to make informed purchasing decisions by evaluating 
whether a warranty is offered, the terms of the warranty, and the 
condition of the car.

    Estimate of Information Collection Burden. The FTC is requesting 
approval for an estimated burden of 2,304,100 hours relating to 
disclosure requirements.

    Disclosures: Approximately 80,000 used car dealers make required 
disclosures at an average burden of 29 hours per dealer.

    20. The R-Value Rule, 16 CFR part 460, requires that manufacturers 
and sellers disclose the R-value (degree of resistance to the flow of 
heat) of a home insulation product prior to sale. This information is a 
measure of how well 

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the product will perform as an insulator and allows consumers to 
compare products and make cost-effective decisions about purchasing 
home insulation products.
    The Rule also requires home insulation manufacturers and 
laboratories to maintain records of tests conducted to determine the R-
value of each insulation product. Sellers who make representations 
concerning fuel or energy cost savings are required to maintain records 
to substantiate these claims. These recordkeeping requirements assist 
the Commission in enforcing the Rule.
    Estimate of Information Collection Burden. The FTC is requesting 
approval for an estimated burden of 366,056 hours relating to 
disclosure requirements and 275 hours relating to recordkeeping 
requirements, for a total estimated burden of 366,400 hours (rounded).
    Disclosures: 150 manufacturers, 1,500 installers, 137,000 new home 
sellers, and 25,000 retailers make disclosures at an average burden of 
23 hours for manufacturers, 20 hours for installers, 2 hours for new 
home sellers, and 2 hours for retailers. Recordkeeping: 150 
manufacturers and 1,500 installers keep records at an annual average 
burden of 1 hour per manufacturer and 5 minutes per installer.
    21. The Fair Packaging and Labeling Act, 15 U.S.C. 1450, (``FPLA'') 
was enacted to eliminate consumer deception concerning product size 
representations and package content information. The Regulations which 
implement the FPLA, 16 CFR part 500, establish requirements for the 
manner and form of labeling consumer commodities. Section 4 of the FPLA 
specifically requires packages or labels to be marked with: (1) A 
statement of identity, (2) a new quantity of contents disclosure, and 
(3) the name and place of business of a company that is responsible for 
the product.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for an estimated burden of 12,000,000 hours relating to 
disclosure requirements.
    Recordkeeping: Most of the records that manufacturers, packagers, 
distributors, and retailers of consumer commodities are required to 
retain would otherwise be kept in the normal course of business. 
Disclosures: Approximately 1,200,000 manufacturers, packagers, 
distributors, and retailers of consumer commodities make disclosures, 
most of which are statutorily required, at an average burden of 10 
hours per company.
    22. The Consumer Product Warranty Rule, 16 CFR part 701, provides 
that, where written warranties are provided, the warranties must 
disclose certain material facts regarding their terms and conditions. 
The purpose of the Rule is to prevent deception by providing consumers 
with information to assess written warranty terms.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for an estimated burden of 34,000 burden hours associated with 
these disclosure requirements.
    Disclosures: Approximately 4,241 warrantors of products make 
required disclosures at an average burden of 8 hours.
    23. The Pre-Sale Availability Rule, 16 CFR part 702, requires that 
the terms of written warranties for consumer products be made available 
to consumers prior to purchase. Manufacturers are required to provide 
materials sufficient for retailers to meet their obligations. The Rule 
also contains requirements for disclosing the availability of warranty 
information in catalogues and door-to-door sales.
    Estimate of Information Collection Burden. The FTC is seeking 
approval for an estimated burden of 2,759,700 hours associated with 
these disclosure requirements.
    Disclosures: Approximately 422,100 small retailers, 6,552 large 
retailers, 4,095 small manufacturers, and 146 large manufacturers make 
required disclosures at an average burden of 6 hours for small 
retailers, 26 hours for large retailers, 12 hours for small 
manufacturers, and 52 hours for large manufacturers.
    24. The Informal Dispute Settlement Procedures Rule, 16 CFR part 
703, provides for disclosures in warranties when warrantors offer 
dispute settlement resolution procedures in a written consumer product 
warranty. The Rule also provides for dispute resolution information to 
be provided to consumers upon request. The disclosure requirements 
allow consumers to be fully informed regarding the warranty's dispute 
settlement procedures.
    The Rule also requires affected entities to retain individual 
records for each dispute; indexes that categorize disputes by product 
model, and show the extent to which the warrantor has abided by 
decisions of the resolution process; and statistical summaries that 
classify disputes according to various status and final disposition 
categories.
    Affected entities must conduct an annual audit of their dispute 
resolution procedures and submit a report to the Commission. These 
requirements assist the Commission in enforcing the Rule.
    Estimate of Information Collection Burden. The FTC is requesting 
approval for an estimated burden of 500 disclosure hours and 6,456 
recordkeeping hours, for a total burden estimate of 7,000 hours 
(rounded).
    Disclosures: Approximately 2 warrantors who offer informal dispute 
settlement procedures make required disclosures at an average burden of 
250 hours. Recordkeeping: Approximately 2 warrantors who offer informal 
dispute settlement procedures make required disclosures at an average 
burden of 3,228 hours.
    25. FTC Administrative Activities. These information collection 
requests constitute administrative or procedural matters. Each 
specifies information to be submitted voluntarily to the Commission by 
persons who wish to do business with or receive some benefit from the 
agency. Because of the limited burden imposed, these requests for OMB 
approval have been combined into a single item. These requests relate 
to: (1) FTC procurement activities; (2) the document order form used by 
the FTC public reference branch; (3) applications and notices to the 
Commission; and (4) rules governing claims under the Equal Access to 
Justice Act.
    The FTC seeks to modify item (3) to include applications and 
notices to the Commission contained in other rules (generally in Parts 
I, II, and IV of the Commission's rules of practice) that may, or may 
not, constitute the ``collection of information.'' See, e.g., 16 CFR 
4.8(e) (requests for a waiver of costs for obtaining Commission 
records). Because these provisions are generally imposed during the 
conduct of federal criminal, civil, or administrative action with 
respect to a specific party they would normally not be covered by the 
PRA. See 5 CFR 1320.22. Any requirements that are not imposed in this 
context are extremely rare, and the de minimis burden associated with 
them can be easily incorporated into the 50 burden hours already 
requested in this section.
    The FTC is also requesting approval to delete three currently 
approved requests from item (3)--the procedure for establishing generic 
names under the Textile Act Regulations and the procedures for certain 
exemptions under the Wool and Fur Act Regulations. The FTC has prepared 
separate submissions for these regulations. See item numbers 7, 8 & 9, 
infra. In 1993, the total burden estimate for the Textile, Wool, and 
Fur Act Regulations was approximately 50 hours. Even though the FTC has 
deleted these hours, the total burden associated with item (3) has not 
changed because 

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of the additional hours associated with the new request for clearance 
of notices and applications to the Commission.
    Estimate of Information Collection Burden. The FTC is requesting an 
estimated burden of 2,300 hours (rounded) relating to administrative 
activities. This figure is unchanged from the Commission's current 
approval (control number 3084-0047). Various states, companies, and 
individuals make requests pursuant to this item for a total burden of 
2,300 hours.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 95-21165 Filed 8-24-95; 8:45 am]
BILLING CODE 6750-01-M