[Federal Register Volume 68, Number 41 (Monday, March 3, 2003)]
[Rules and Regulations]
[Pages 9856-9857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4868]


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FEDERAL TRADE COMMISSION

16 CFR Part 304


Rules and Regulations Under the Hobby Protection Act

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
requests public comment on the overall costs, benefits, and regulatory 
and economic impact of its Rules and Regulations Under the Hobby 
Protection Act (``Rule''), as part of the Commission's systematic 
review of all current Commission regulations and guides.

DATES: Written comments will be accepted until May 2, 2003.

ADDRESSES: Six paper copies of each written comment should be submitted 
to the Office of the Secretary, Federal Trade Commission, Room H-159, 
600 Pennsylvania Ave., NW., Washington, DC 20580. To encourage prompt 
and efficient review and dissemination of the comments to the public, 
all comments also should be submitted, if possible, in electronic form, 
on a 3\1/2\ inch computer disk, with a label on the disk stating the 
name of the commenter and the name and version of the word processing 
program used to create the document. (Programs based on DOS are 
preferred. Files from other operating systems should be submitted in 
ASCII text format.)
    Alternatively, the Commission will accept papers and comments 
submitted to the following e-mail address: [email protected], provided the 
content of any papers or comments submitted by e-mail is organized in 
sequentially numbered paragraphs. All comments and any electronic 
versions (i.e., computer disks) should be identified as ``16 CFR Part 
304 Comment--Hobby Protection Act Rule. The Commission will make this 
notice and, to the extent possible, all papers and comments received in 
electronic form in response to this notice available to the public 
through the Internet at the following address: http://www.ftc.gov 

FOR FURTHER INFORMATION CONTACT: Neil Blickman, Attorney, Division of 
Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 
Washington, DC 20580; (202) 326-3038.

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 29, 1973, Congress issued the Hobby Protection Act 
(``Act''), 15 U.S.C. 2101-2106. The Act requires manufacturers and 
importers of ``imitation political items'' \1\ to mark ``plainly and 
permanently'' such items with the ``calendar year'' such items were 
manufactured. 15 U.S.C. 2101(a). The Act also requires manufacturers 
and importers of ``imitation numismatic items'' \2\ to mark ``plainly 
and permanently'' such items with the word ``copy.'' 15 U.S.C. 2101(b). 
The Act further provides that the Commission is to promulgate 
regulations for determining the ``manner and form'' that imitation 
political items and imitation numismatic items are to be permanently 
marked with the calendar year of manufacture or the word ``copy.'' 15 
U.S.C. 2101(c).
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    \1\ An imitation political item is ``an item which purports to 
be, but in fact is not, an original political item, or which is a 
reproduction, copy, or counterfeit of an original political item.'' 
15 U.S.C. 2106(2). The Act defines original political items as being 
any political button, poster, literature, sticker or any 
advertisement produced for use in any political cause. Id. at 
2106(1). Political items dealers sell items such as presidential, 
local election, and cause-type buttons, pins, posters, tie clasps, 
cuff links, mugs, photos, inauguration invitations, marshal's 
badges, medals, ribbons and the like.
    \2\ An imitation numismatic item is ``an item which purports to 
be, but in fact is not, an original numismatic item or which is a 
reproduction, copy, or counterfeit of an original numismatic item.'' 
15 U.S.C. 2106(4). The Act defines original numismatic items to 
include coins, tokens, paper money, and commemorative medals which 
have been part of a coinage or issue used in exchange or used to 
commemorate a person or event. Id. at 2106(3).
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    Pursuant to the Act, in 1975 the Commission issued Rules and 
Regulations under the Hobby Protection Act, 16 CFR Part 304. The Rule 
tracks the definitions of terms used in the Act and implements the 
Act's ``plain and permanent'' marking requirements by establishing the 
sizes and dimensions of the letters and numerals to be used, the 
location of the marking on the item, and how to mark incusable and 
nonincusable items.\3\ In 1988, the Rule was amended to provide 
additional guidance on the minimum size of letters for the word 
``copy'' as a proportion of the diameter of coin reproductions.\4\ 53 
FR 38942 (Oct. 4, 1988).
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    \3\ Incusable items are those that can be impressed with a 
stamp.
    \4\ Prior to the amendment, if a coin were too small to comply 
with the minimum letter size requirements, the manufacturer or 
importer had to individually request from the Commission a variance 
from those requirements. Because imitation miniature coins were 
becoming more common, the Commission determined that it was in the 
public interest to allow the placing of the word ``copy'' on 
miniature imitation coins in sizes that could be reduced 
proportionately with the size of the item.
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II. Regulatory Review Program

    The Commission has determined to review all current Commission 
rules and guides periodically. These reviews seek information about the 
costs and benefits of the Commission's rules and guides and their 
regulatory and economic impact. The information obtained assists the 
Commission in identifying rules and guides that warrant modification or 
rescission. Therefore, the Commission solicits comment on, among other 
things, the economic impact of its Rules and Regulations Under the 
Hobby Protection Act; possible conflict between the Rule and state, 
local, or other federal laws; and the effect on the Rule of any 
technological, economic, or other industry changes.

III. Request For Comment

    The Commission solicits written public comment on the following 
questions:
    (1) Is there a continuing need for the Rule as currently 
promulgated?
    (2) What benefits has the Rule provided to purchasers of the 
products or services affected by the Rule?
    (3) Has the Rule imposed costs on purchasers?

[[Page 9857]]

    (4) What changes, if any, should be made to the Rule to increase 
the benefits of the Rule to purchasers? How would these changes affect 
the costs the Rule imposes on firms subject to its requirements? How 
would these changes affect the benefits to purchasers?
    (5) What significant burdens or costs, including costs of 
compliance, has the Rule imposed on firms subject to its requirements? 
Has the Rule provided benefits to such firms? If so, what benefits?
    (6) What changes, if any, should be made to the Rule to reduce the 
burdens or costs imposed on firms subject to its requirements? How 
would these changes affect the benefits provided by the Rule?
    (7) Does the Rule overlap or conflict with other federal, state, or 
local laws or regulations?
    (8) Since the Rule was issued, what effects, if any, have changes 
in relevant technology, such as e-mail and the Internet, or economic 
conditions had on the Rule?

List of Subjects in 16 CFR Part 304

    Hobbies, Labeling, Trade practices.

    Authority: 15 U.S.C. 41-58.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-4868 Filed 2-28-03; 8:45 am]
BILLING CODE 6750-01-P