[Federal Register Volume 64, Number 5 (Friday, January 8, 1999)]
[Notices]
[Pages 1203-1207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-384]


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FEDERAL TRADE COMMISSION


Proposed Collection; Comment Request

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 
et seq.) (PRA), the Federal Trade Commission (FTC) is inviting comments 
on proposed three year extensions of Paperwork Reduction Act clearance 
for information collection requirements associated with five Commission 
rules. The FTC is also inviting comments on the extension of clearance 
for collections of information associated with FTC administrative or 
procedural tasks.
    This request is solely for extensions of current collections of 
information; no amendments or changes to these rules or the collection 
requirements contained therein are being proposed by this notice. Any 
adjustments to burden hours are due solely to changes in the market-
place or the practices of the industries involved.

DATES: Comments must be filed by (60 days from the date of this 
publication).

ADDRESSES: All comments should be identified as responding to this 
notice and should be sent to Elaine W. Crockett, Attorney, Office of 
the General Counsel, Room, 598, 600 Pennsylvania Avenue, NW., 20580. 
Telephone: (202) 326-2453. Fax: (202) 326-2477. E-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed extensions of the information requirements 
should be addressed to Elaine W. Crockett at the address listed above.

SUPPLEMENTARY INFORMATION: As required by 5 CFR 1320.8(d)(1), the FTC 
is seeking comments concerning the proposed extensions in order to: (1) 
Evaluate whether the proposed collections of information are necessary 
for the proper performance of the functions of the FTC, including 
whether the information will have practical utility; (2) Evaluate the 
accuracy of the FTC's estimates of the burdens associated with each 
proposed collection of information, including the validity of the 
methodologies and assumptions used; (3) Enhance the quality, utility, 
and clarity of the information to be collected; and (4) Minimize the 
burden of the collections of information on those who are to respond, 
including through the use of appropriate automated, electronic, 
mechanical or other technological collection techniques or other forms 
of information technology, e.g., permitting electronic submission of 
responses.

1. Title: FTC Hart-Scott-Rodino (``Premerger Notification'') Rules 
and Form, 16 CFR Parts 801-803--(OMB Control Number 3084-0005)--
Extension

    The Antitrust Improvements Act Notification and Report Form 
(``Report Form'' or ``Form'') implements the notification requirement 
contained in the Premerger Notification Rules, 16 CFR parts 801-803 
(1998) and section 7A of the Clayton Act, 15 U.S.C. 18a. Under the Act 
and its associated rules, certain parties contemplating acquisitions of 
a specified size must notify the FTC and the Antitrust Division of the 
Department of Justice (``the enforcement agencies'') and wait for 30 
days (or, in the case of a cash tender offer, 15 days) before 
consummating the transaction. The FTC has established the Report Form 
as the means for accomplishing the notification mandated by the Act. 
The Report Form provides the enforcement agencies with the information 
needed to make prompt, preliminary determinations of the antitrust 
implications of the reported transactions.
    On June 14, 1994, the FTC published a Federal Register Notice in 
which it proposed certain changes to the Report Form. 59 FR 30545. At 
that time, the FTC requested comments on any paperwork burdens imposed 
by those changes. Id. at 30588. Based on comments received in response 
to the Notice, as well as other input from interested parties, the 
enforcement agencies are continuing their review of the Report Form. 
Any future proposal to change the Form as a result of this review will 
include a request for comments on any paperwork burdens imposed by the 
proposal.

[[Page 1204]]

    This request is for an extension of the Rules and the Form as they 
currently exist. This notice proposes no amendments or changes to the 
Rules of the Form, nor does it address any of the changes proposed in 
1994. The purpose of this notice is simply to comply with those PRA 
requirements that will allow the Report Form to be used in its current 
format pending any amendments to the Rules or Form.
    Estimated Annual Burden Hours: The total estimated burden 
associated with completing and filing the Form is 260,443 hours (based 
on fiscal year 1997 figures). We have estimated that, depending on a 
number of different factors, it takes anywhere from 8 to 160 hours to 
complete and file the Form.\1\ The average, based on historical 
experience, is approximately 39 hours. In certain circumstances, only 
an index or copies of filings made with another regulatory agency are 
required to be submitted to the FTC in lieu of the Form (``index 
filing''). We have estimated that 2 hours is needed to comply with the 
filing requirement in these instances. The enforcement agencies 
received notice of 3622 transactions in 1997, of which 59 were reported 
to other regulatory agencies. Thus the total 1997 burden was (3517 
transactions  x  39 hours) + (59 transactions  x  2 hours), or 260,443 
hours. The increase from the 1994 estimated burden of 107,985 hours 
(when OMB clearance was last sought regarding the Form and regulations) 
is solely a function of the increase in filings since 1994. Although 
the number of reported transactions totaled 3,622 in 1997, because of 
variations in the number of filings required for each transaction, the 
total number of filings received for these transactions is 
approximately 6,734.\2\
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    \1\ These factors include the extent of the filing person's 
United States operations; the number of different industries in 
which the filing person is engaged; the firm's prior experience and 
familiarity with the premerger notification program; the existence 
of horizontal overlaps or vertical relationships in the businesses 
in which the parties to the transaction derive revenue; and the 
organizational structure and recordkeeping system of the reporting 
entities.
    \2\ For example, of the 3622 transactions reported, 164 were 
joint ventures, (c)(6) transactions or (c)(8) transactions; only one 
filing is required for each transaction. Of the remaining 3458, 
approximately 80 percent, or 2766, require two filings per 
transaction: one each from the acquiring person and the acquired 
person. The other 20 percent (692) represent certain transactions 
for which the consideration given is voting stock. A typical example 
of these transactions is the acquisition of company B's voting stock 
by company A. As payment for the B stock, A will give the B 
sharholders certain shares of company A stock. A shareholder of B 
will acquire an amount of company A stock that will require the B 
shareholder to submit a separate filing as an acquiring person. For 
HSR purposes, the company A/company B filings make up one 
transaction, and the B shareholder/company A filings comprise a 
second transaction. However, company A generally needs to submit 
only one filing for the two transactions. Therefore the two 
transactions require three filings, computed as 1.5 filings per 
transaction (The 1.5 figure is a slight overestimation, since in 
some cases more than one shareholder of company B has a filing 
obligation as an acquiring person. Each shareholder's notification 
is trated as a separate transaction, and company A's filing as an 
acquiring person serves as the acquired party's filing for each of 
the shareholder transactions. Thus, for example, four transactions--
a primary transaction with three related shareholder transactions--
may have a total of only five filings.)
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    Estimated Labor Costs: Using the burden hours estimated above, the 
total cost associated with the Rule and Form would be approximately 
$78,132,000 (260,443 hours  x  $300 hour). To verify this cost 
estimate, staff conducted an informal survey of actual billings by 
several antitrust practitioners for preparation of the Form.\3\ These 
estimates, based on the type and complexity of each filing \4\ closely 
approximated our estimate, based on burden hours. This information is 
summarized below. Only the first category, the index filing, has been 
determined on an hourly fee basis. The remaining figures are calculated 
on the following basis: 6734 filings minus 59 index filings=6675.

    \3\ The $45,000 Hart-Scott-Rodino filing fee is not included in 
these cost estimates because the fee does not fall within either of 
the two cost categories defined by OMB: (1) Total hour burden and 
annualized costs of hour burden (labor), and (2) non-labor costs, 
consisting of total capital and start-up costs and total operation 
and maintenance costs. See OMB Instructions for Completing OMB Form 
83-I.
    \4\ The survey was based on number of filings because each side 
to a transaction is represented by a different law firm. Therefore, 
practitioners do not have cost information relating to an entire 
transaction.
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Index filing: 59 x $600 (2 hours @ $300/hr)=$35,400
Simple filings ([35% x 6675]  x  $2000)=4,672,000
Moderately complex filings ([60% x 6675]  x  $15,000) = 60,075,000
Very complex filings ([5% x 6675] x $50,000) = 16,700,000
    Total: $81,482,400

    This estimate is comparable to, although slightly higher than, our 
estimate of $78,132,000. We conservatively have adopted the $81,482,400 
estimate as the total annual labor cost.
    Estimated Capital or Other Non-Labor Costs: The rule imposes no 
current start-up costs and minimal capital costs. The Rule first took 
effect in 1979, so law firms and companies already have incurred any 
necessary start-up costs associated with filing the Form. Moreover, law 
firms already have access, for other business purposes, to the ordinary 
office equipment needed for compliance, and the Rule has no 
consequential effect on the cost of operating and maintaining that 
equipment.

2. Title--Negative Option Plans by Sellers in Commerce (``Negative 
Option Rule'') 16 CFR Part 425--(OMB Control Number 3084-0104)--
Extension

    The Negative Option Rule protects consumers who participate in 
negative option plans (e.g., record or book ``clubs''), contractual 
arrangements whereby a seller periodically ships merchandise to 
subscribers without an affirmative order by the subscriber. The Rule 
requires sellers to send an advance notice to subscribers describing 
merchandise offered for sale. The subscriber may instruct the seller, 
in accordance with the terms of the plan, to refrain from shipping the 
merchandise. The Rule also requires that promotional materials disclose 
the terms of membership clearly and conspicuously, and establish 
procedures for the administration of such ``negative option'' plans.
    Estimated Annual Burden Hours: The Rule's estimated annual burden 
is approximately 14,375 hours per year. We estimate that approximately 
175 existing clubs spend about 75 hours each to comply with the Rule's 
disclosure requirements, for a total of 13,125 per year (175 clubs  x  
75 hours).
    We have revised the number of hours from 125 to 75 hours per year 
for each existing club to comply with the information collection 
requirements contained in the Rule. These clubs should be familiar with 
the Rule, which has been in effect since 1974, so their ``burden'' of 
compliance has diminished over the years. Also, comments provided to 
the FTC indicate that a substantial portion of the existing clubs 
likely would now make these disclosures absent any regulatory 
requirement because the Rule has assisted in fostering long-term 
relationships with consumers.
    In addition, approximately 10 new clubs come into existence each 
year. These clubs spend about 125 hours complying with the Rule, making 
the total hours that new clubs spend per year 1,250 (10 new clubs  x  
125 hours). For new clubs, we have retained the estimate of 
approximately 125 hours to comply with the rule (including start-up 
time). The total of 14,375 hours per year for both existing and new 
clubs is a reduction from 15,500 burden hours that the FTC estimated in 
1995.
    Estimated Labor Costs: Total labor costs are approximately $367,697 
per

[[Page 1205]]

year. According to the Bureau of Labor Statistics, the average 
compensation for advertising managers is $27.88 per hour. Compensation 
for clerical personnel is approximately $10,00 per hour. Assuming that 
managers perform the bulk of the work, while clerical personnel perform 
some associated tasks, such as placing advertisements and responding to 
inquiries about offerings or prices, the total cost to the industry for 
the Rule's paperwork requirements would be approximately $367,697 (65 
hours managerial time  x  175 existing negative options plans  x  
$27.88 per hour = $317,135) plus (10 hours clerical time  x  175 
existing negative options plans  x  $10.00 per hour = $17,500) plus 
(115 hours managerial time  x  10 new negative options plans  x  $27.88 
per hour = $32,062) plus (10 hours clerical time  x  10 new negative 
options plans  x  $10.00 per hour = $1,000).
    Estimated Capital or Other Non-Labor Costs: Because the Rule has 
been in effect since 1974, the vast majority of the negative option 
clubs have no current start-up costs. For the few new clubs that enter 
the market each year, the capital and start-up costs associated with 
the Rule's disclosure requirements, beyond the additional labor costs 
discussed above, are de minimis. Negative option clubs already have 
access to the ordinary office equipment necessary for compliance with 
the Rule.
    Similarly, the Rule imposes few, if any, printing and distribution 
costs. The required disclosures generally constitute only a small 
addition to the materials that a prospective subscriber sends to the 
seller to solicit enrollment in a negative option plan. Because 
printing and distribution costs are incurred anyway to market the 
product, inserting the required disclosures constitutes only a de 
minimis incremental expense.

3. Title: Power Output Claims for Amplifiers Utilized in Home 
Entertainment Products, 16 CFR Part 432--(OMB Control Number 3084-
0105)--Extension

    The Amplifier Rule assists consumers by requiring disclosure of 
four performance characteristics whenever representations are made 
concerning power output, power band or power frequency, and distortion 
characteristics of home audio equipment. The Rule also specifies the 
test conditions to be used to obtain the FTC disclosures.
    Estimated Burden Hours: The annual burden is approximately 1,500 
hours. The Rule's provisions require affected entities to test the 
power output of amplifiers in accordance with specified FTC protocol. 
Approximately 300 new amplifiers and receivers come on the market each 
year. Since high fidelity manufacturers routinely conduct performance 
tests as part of any new product development, the Rule imposes 
incremental costs only to the extent that the FTC protocol is more 
time-consuming than alternative testing procedures. Specifically, a 
warm up (``precondition'') period that the Rule requires before 
measurements are taken may add approximately one hour to the testing 
entails. Thus, we estimate that the Rule imposes approximately 300 
hours (1 hour  x  300 mew products) of added testing burden annually.
    The Rule requires disclosures if an advertisement makes a power 
output claim. Assuming that ten advertisements per magazine are placed 
each month in ten existing magazines carrying audio equipment 
advertisements, we estimate that approximately 1,200 magazine 
advertisements annually would be required to carry the FTC disclosures. 
The cost of these disclosures is limited to the time needed to draft 
and review the language pertaining to power output specifications.
    Because this Rule became effective in 1974, and because members of 
the industry are familiar with its requirements, compliance is less 
burdensome today. Accordingly, we estimate the time involved for this 
task to be a maximum of 1 hour per advertisement, for a total burden of 
1,200 hours. The total annual burden imposed by the Rule is therefore 
approximately 1,500 burden hours. (300 testing hours + 1,200 disclosure 
hours). This is a reduction from 2,700 burden hours estimated in 1995.
    Estimated Labor Costs: According to staff at the Bureau of Labor 
Statistics, the average hourly compensation for electronics engineers 
in the industry is $28.73, and the average hourly compensation for 
marketing, advertising and public relations managers is $27.88. 
Generally, electronics engineers perform the testing of amplifiers and 
receivers (300 hours  x  $28.73 = $8,619.00), and marketing, 
advertising or public relations managers prepare advertisements 
(including required disclosures) (1,200 hours  x  $27.88 = $33,456.00). 
Based on this information, we estimate the cost to the industry for the 
Rule's paperwork requirements to be $42,075.00 per year ($33,456.00 + 
$8,619.00).
    Estimated Capital or Other Non-Labor Costs: The Rule imposes no 
capital or other non-labor costs because its requirements are 
incidental to testing and advertising done in the ordinary course of 
business.

4. Title: Disclosure Requirements and Prohibition Concerning 
Franchising and Business Opportunity Ventures (``Franchise Rule''), 
16 CFR Part 436--(OMB Control Number 3084-0107)--Extension

    The Franchise Rule requires franchisors and franchise brokers to 
furnish to prospective investors a disclosure document that provides 
information relating to the franchisor, the franchisor's business, and 
the nature of the proposed franchise relationship, as well as 
additional information about any claims concerning actual or potential 
sales, income, or profits for a prospective franchisee (``earnings 
claims''). Franchisors must also preserve the information that forms a 
reasonable basis for such claims. The Rule is designed to help 
potential investors protect themselves from fraudulent claims.
    Estimated Annual Burden Hours: The estimated annual burden imposed 
by the Rule is 33,500 hours. Based upon our review of trade 
publications and information from state regulatory authorities, we 
estimate there are approximately 5,000 American franchise systems, 
consisting of 3,500 business format franchises and 1,500 business 
opportunity sellers.
    Approximately 10% of all franchisors, or 500 franchisers, sell 
exclusively in states that do not impose franchise disclosure 
requirements comparable to those of the Rule. These firms are subject 
to compliance burdens imposed solely by the Commission's Rule. These 
firms may spend anywhere from 3-100 hours to comply with the Rule's 
disclosure requirements, which require, among other things, the 
disclosure of information about the business experience of the 
franchisor and the franchisor's directors and key executives; the 
litigation history of the franchisor and its directors and key 
executives; and the money required to be paid by the franchisee to 
obtain or start the franchise. We estimate the Rule compliance requires 
an average of 30 hours annually for each of these 500 franchisors, 
resulting in a total burden of approximately 15,000 hours.
    On the other hand, a number of states impose requirements similar 
to those of the Rule. In these instances, the Commission's Rule creates 
little additional regulatory burden on most major franchisors. The Rule 
requires that such firms need only provide an ``FTC'' cover sheet that 
identifies the franchisor, the date the document is issued, a table of 
contents, and a notice that tracks language specifically provided in 
the Rule. This additional

[[Page 1206]]

compliance burden is de minimis. Language supplied by the government 
for the purpose of disclosure to the public is excluded from the 
definition of ``collection of information'' under the PRA. 5 CFR 
1320.3(c)(2). Nonetheless, we estimate that any additional time imposed 
by the remaining required disclosures can be handled by clerical staff 
and would be no more than 3 hours per year, for a total of 13,500 
burden hours (4.500 franchisors  x  3 hours = 13,500).
    The Rule also contains some recordkeeping provisions. Any 
recordkeeping effort that would be incurred in the ordinary course of 
business does not constitute ``burden'' under the PRA. 5 CFR 
1320.3(b)(2). This would usually be the case; however, there may be 
some recordkeeping effort that is incurred solely because of the Rule. 
We estimate that firms would spend no more than 1 hour per year on any 
additional compliance burden, for a recordkeeping burden of 5,000 
hours. The total burden for the Rule, therefore, is 33,500 hours.
    Estimated Annual Labor Costs: The estimated annual labor cost is 
approximately $3,935,000, consisting of $3,885,000 for disclosure 
requirements ($250 per hour attorney time  x  15,000 hours); $135,000 
for the FTC cover sheet (13,500 hours per year  x  $10.00 per hour 
clerical time); and $50,000 for recordkeeping costs (5,000 hours per 
year  x  $10.00 per hour clerical time).
    Estimated Capital and Other Non-Labor Costs: The estimated capital 
and other non-labor costs are approximately $1,500,000, consisting 
entirely of printing costs ($25.00 per document  x  100 copies  x  500 
franchisors = $1,250,000) + ($.50 per FTC cover sheet  x  100 copies 
x  4,500 firms=$250,000). Besides these costs, compliance with the Rule 
imposes few or no additional non-labor cost burdens beyond what 
franchisors ordinarily spend in the course of operating their business 
(such as purchasing computer equipment) or to comply with state 
disclosure laws (such as the costs to prepare audited financial 
statements).
    In 1995, the agency requested a burden estimate of 36,000 burden 
hours. We have revised that figure to 33,500 hours because a review of 
the 1995 submission revealed that some hours were inadvertently 
assigned to burden solely attributable to state requirements.

5. Title: Labeling and Advertising of Home Insulation (``R-Value 
Rule''), 16 CFR Part 460--(OMB Control Number 3084-0109)--Extension

    The R-Value Rule establishes uniform standards for the 
substantiation and disclosure of accurate, material product information 
about the thermal performance characteristics of home insulation 
products. The R-value of an insulation product signifies the 
insulation's degree of resistance to the flow of heat. This information 
tells consumers how well a product is likely to perform as an insulator 
and allows consumers to determine whether the cost of the insulation is 
justified.
    Estimated Annual Burden Hours: The Rule's requirements include 
product testing, recordkeeping, and third-party disclosures on labels, 
fact sheets, advertisements and other promotional materials. These 
requirements apply to certain manufacturers and their testing 
laboratories; home insulation installers; new home sellers who make 
energy savings claims; and retailers who sell home insulation for do-
it-yourself installation by consumers.
    Based on information provided by members of the insulation 
industry, staff estimate that the Rule affects: (1) 150 insulation 
manufacturers and their testing laboratories; (2) 1,500 installers who 
sell home insulation; (3) 130,000 new home builders/sellers of site-
built home and approximately 7,000 dealers who sell manufactured 
housing; and (4) 25,000 retail sellers who sell home insulation for 
installation by consumers.
    Manufacturers and Testing Laboratories: Under the Rule's testing 
requirements, manufacturers must test each insulation product for its 
R-value. The test takes approximately 2 hours. Approximately 15 of the 
150 insulation manufacturers in existence introduce one new product 
each year. The total annual testing burden is therefore approximately 
30 hours (15 manufacturers  x  2 hours per test).
    As for third-party disclosure requirements in advertising and other 
promotional materials, staff estimate that most manufacturers spend an 
average of approximately 20 hours per year to comply with this 
requirement. Only the five or six largest manufacturers require 
additional time (approximately 80 hours each). Thus, the annual third-
party disclosure burden for manufacturers is approximately 3,360 hours 
(144 manufacturers  x  20 hours + 6 manufacturers  x  80 hours).
    While the Rule imposes recordkeeping requirements, most 
manufacturers and their testing laboratories keep these records of 
testing in the ordinary course of business. Staff estimate that no more 
than one additional hour per year per manufacturer is necessary to 
comply with this requirement, for an annual recordkeeping burden of 
approximately 150 hours (150 manufacturers  x  1 hour).
    Installers: Installers are required to show the manufacturers' 
insulation fact sheet to retail consumers prior to purchase. Installers 
must also disclose information in contracts or receipts concerning the 
R-value and the amount of insulation to be installed. Staff estimate 
that two minutes per sales transaction is sufficient for complying with 
these requirements. Approximately 835,000 retrofit insulations are 
installed by approximately 1,500 installers per year, and therefore, 
the annual burden is approximately 27,833 hours (835,000 sales 
transactions  x  2 minutes). Staff also estimate that one hour per hour 
year per installer is sufficient for including required disclosures in 
advertisements and other promotional materials. The burden for their 
requirement is approximately 1,500 hours per year (1,500 installers  x  
1 hour).
    Also, installers must keep records that indicate substantiation 
relied upon for savings claims. The addition time for complying with 
this requirement is minimal, approximately 5 minutes per year per 
installer, for a total of approximately 125 hours (1,500 installers  x  
5 minutes).
    New Home Sellers: New home sellers must make contract disclosures 
concerning the type, thickness and R-value of the insulation they 
install in each part of a new home. Staff estimate that no more than 
one minute per sales transaction is required to comply with this 
requirement, for a total annual burden of approximately 283,333 hours 
(1.7 million new home sales  x  1 minute).
    New home sellers who make energy savings claims must also keep 
records regarding the substantiation relied upon for those claims. 
Because few new home sellers make these claims, and the ones that do 
would likely keep these records anyway in the ordinary course of 
business, staff estimate that one minute burden for disclosures would 
be more than adequate to cover this recordkeeping requirement, as well.
    Retailers: The Rule requires that the approximately 25,000 
retailers who sell home insulation make fact sheets available to 
consumers prior to purchase. This can be accomplished by i.e., placing 
copies in a display rack, or keeping copies in a binder on a service 
desk with an appropriate notice. Replenishing or replacing fact sheets 
takes approximately one hour per year per retailer, for a burden 
estimate of approximately 25,000 annual hours (25,000 retailers  x  1 
hour).

[[Page 1207]]

    The Rule also requires specific disclosures in advertisements or 
other promotional materials to ensure that the claims are fair and not 
deceptive. This burden is extremely small because retailers typically 
use advertising copy provided by the insulation manufacturer, and even 
when retailers prepare their own advertising copy, the Rule provides 
some of the language to be used. Accordingly, approximately one hour 
per year per retailer is sufficient for compliance with this 
requirement, for a total annual burden of approximately 25,000 hours.
    Retailers who make energy savings claims in advertisements or other 
promotional materials must keep records that indicate the 
substantiation they are relying upon. Because few retailers make these 
types of promotional claims and because the Rule permits retailers to 
rely on the insulation manufacturer's substantiation data for any 
claims that are made, the additional recordkeeping burden is de 
minimis. The time calculated for disclosures, above, would be more than 
adequate to cover any burden imposed by this recordkeeping requirement.
    To summarize, staff estimates that the Rule impose a total of 
366,331 burden hours, as follows: 150 recordkeeping and 3,390 testing 
and disclosure hours for manufacturers; 125 recordkeeping and 29,333 
disclosure hours for installers; 283,333 disclosure hours for new home 
sellers; and 50,000 disclosure hours for retailers. This figure has 
been rounded to 366,400 burden hours.
    Estimated Annual Labor Costs: The total annual labor costs for the 
Rule's information collection requirements is $7,290,030, derived as 
follows: $600 for testing, based on 30 hours for manufacturers (30 
hours  x  $20 per hour for skilled technical personnel); $2,750 for 
complying with the recordkeeping requirements of the Rule, based on 275 
(275 hours  x  $10 per hour for clerical personnel); $33,360 for 
manufacturers' compliance with third-party disclosure requirements, 
based on 3,360 hours (3,360 hours  x  $10 per hour for clerical 
personnel); and $7,253,350 for compliance by installers, new home 
sellers, and retailers with third-party disclosure requirements, based 
on 362,666 hours (362,666 hours  x  $20 per hour for sales persons).
    Estimate of Capital and Other Non-Labor Costs: There are no 
significant current capital or other non-labor costs associated with 
this Rule. Because the Rule has been in effect since 1980, members of 
the industry are familiar with its requirements and already have in 
place the equipment for conducting tests and storing records. New 
products are introduced infrequently. Because the required disclosures 
are placed on packaging or on the product itself, the Rule's additional 
disclosure requirements do not cause industry members to incur any 
significant additional non-labor associated costs.

6. Title: FTC Administrative Activities (OMB Control Number 3084-
0047)--Extension

    Currently, the FTC has OMB clearance for certain administrative 
and/or procedural activities relating to: (1) FTC procurement 
activities; (2) the document order form used by the FTC public 
reference branch; (3) applications to the Commission, including 
applications and notices contained in the Commission's Rules of 
Practice (primarily Parts I, II, and IV); and (4) rules governing 
claims against the FTC under the Equal Access to Justice Act.
    The FTC seeks to delete items (1), (2), and (4). With respect to 
item (1), OMB has advised the FTC that it must seek clearance only for 
any agency-unique information collections that have been published as a 
supplement to the Federal Acquisition Regulations. The FTC has no such 
supplement and accordingly, there is no requirements to obtain OMB 
approval. Deleting this item eliminates 1,000 of 2,300 hours estimated 
in the FTC's 1995 submission for OMB Control No. 3084-0047.
    With respect to item (2), FTC Form 14 is excluded from the PRA's 
definition of ``information'' because the form asks only for the 
respondent's name, address, a description of the records and the number 
of copies requested. See 5 CFR 1320.3(h)(1) (the definition of 
``information'' excludes an ``affidavit'' or ``certification'' that 
asks the respondent for identifying information such as his or her 
name, address, the date, and the nature of the instrument); OMB 
Implementing Guidance to the Paperwork Reduction Act of 1995 
(Preliminary Draft), February 3, 1997 (certain other information, such 
as quantity, quality, or location, may also be excluded). Deleting this 
item eliminates another 1,000 or 2,300 hours.
    With respect to item (4), the ``law enforcement'' exception of the 
PRA excludes this category, because it involves collecting information 
during the conduct of a Federal investigation, civil action, 
administrative action, investigation, or audit with respect to a 
specific party, or subsequent adjudicative or judicial proceeding 
designed to determine fines or other penalties. See 5 CFR 1320.4(a)(1)-
(3). Deleting this item eliminates another 200 hours of the 2,300 hours 
previously estimated for this submission.
    With respect to item (3), the FTC is requesting an extension for 
those provisions covered by that category. Several of the Commission's 
rules contain provisions that allow certain modifications to, or 
exemptions from, a rule. For example, part 901 of the Commission's 
rules, 16 CFR part 901, implementing the Fair Debt Collection Practices 
Act, 15 U.S.C. 1692, sets forth the procedures and standards for 
approving petitions received from a state that is requesting permission 
to apply state law in lieu of federal standards.
    Estimated Annual Burden Hours: Most applications to the Commission 
generally fall within the ``law enforcement exception'' discussed 
above, and those that are not rare and burden associated with them is 
de minimis. For example, over the last decade, the Commission has 
received only one application for an exemption under the Fair Debt 
Collection Practices Act provisions. Staff has estimated that such a 
submission can be completed well within 50 hours. Applications and 
notices to the Commission contained in other rules (generally in Parts 
I, II, and IV of the Commission's Rules of Practice) are also 
infrequent and difficult to quantify. An example is a request for a 
waiver of costs for obtaining Commission records. See 16 CFR 4.8(e). 
Nonetheless, in order to cover any potential ``collections of 
information'' for which we have not otherwise requested clearance, we 
are requesting a total of 100 burden hours as an estimate of the time 
needed to submit any relevant responses.
    Estimated Annual Labor Costs: Based on 100 burden hours, and an 
hourly rate of $250 for attorney time, we estimate the annual cost 
burden to be no more than $25,000.
    Estimated Capital and Start-Up Costs/Operation and Maintenance: Not 
applicable.
Debra A. Valentine,
General Counsel.
[FR Doc. 99-384 Filed 1-7-99; 8:45 am]
BILLING CODE 6750-01-M