[Federal Register Volume 69, Number 95 (Monday, May 17, 2004)]
[Notices]
[Pages 27926-27927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11101]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission (FTC or ``Commission'').

ACTION: Notice.

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SUMMARY: The information collection requirements described below will 
be submitted to the Office of Management and Budget (OMB) for review, 
as required by the Paperwork Reduction Act (PRA). The FTC is seeking 
public comments on its proposal to extend through August 31, 2007, the 
current PRA clearance for information collection requirements contained 
in its regulations under the Comprehensive Smokeless Tobacco Health 
Education Act of 1986 (``Smokeless Tobacco Act'' or the ``Act''). That 
clearance expires on August 31, 2004.

DATES: Comments must be submitted on or before July 16, 2004.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Smokeless Tobacco Regulations: Paperwork 
Comments, [R001009]'' to facilitate the organization of comments. A 
comment filed in paper form should include this reference both in the 
text and on the envelope, and should be mailed or delivered to the 
following address: Federal Trade Commission/Office of the Secretary, 
Room H-159, 600 Pennsylvania Avenue, NW., Washington, DC 20580. If the 
comment contains any material for which confidential treatment is 
requested, it must be filed in paper (rather than electronic) form, and 
the first page of the document must be clearly labeled 
``Confidential.'' \1\ The FTC is requesting that any comment filed in 
paper form be sent by courier or overnight service, if possible, 
because U.S. postal mail in the Washington area and at the Commission 
is subject to delay due to heightened security precautions.
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    \1\ Commission rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c).
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    The FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. All timely and responsive public comments, whether filed 
in paper or electronic form, will be considered by the Commission, and 
will be available to the public on the FTC Web site, to the extent 
practicable, at http://www.ftc.gov. As a matter of discretion, the FTC 
makes every effort to remove home contact information for individuals 
from the public comments it receives before placing those comments on 
the FTC Web site. More information, including routine uses permitted by 
the Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Rosemary Rosso, Attorney, Division of Advertising Practices, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580, 
(202) 326-2174.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal 
agencies must obtain approval from OMB for each collection of 
information they conduct or sponsor. ``Collection of information'' 
means agency requests or requirements that members of the public submit 
reports, keep records, or provide information to a third party. 44 
U.S.C. 3502(3); 5 CFR 1320.3(c). As required by section 3506(c)(2)(A) 
of the PRA, the FTC is providing this opportunity for public comment 
before requesting that OMB extend the existing paperwork clearance for 
the Smokeless Tobacco Act regulations (OMB Control Number 3084-
0082).\2\
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    \2\ The Commission seeks comment on the costs and burdens 
imposed by the existing smokeless tobacco regulations. In March 
2000, the Commission commenced a regulatory review of its smokeless 
tobacco regulations to determine whether there is a continuing need 
for the regulations and, if so, what revisions, if any, should be 
made. 65 FR 11944 (Mar. 7, 2000). If the Commission determines that 
the regulations should be amended, it will commence a rulemaking 
proceeding. Should any resulting amendments materially affect PRA 
burden, the Commission will notify OMB and seek amended clearance.
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    The FTC invites comments on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection 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.
    Description of the collection of information and proposed use: The 
Smokeless Tobacco Act requires that manufacturers, packagers, and 
importers of smokeless tobacco products include one of three specified 
health warnings on packages and in advertisements. The Act also 
requires that each manufacturer, packager, and importer of smokeless 
tobacco products submit a plan to the Commission specifying the method 
to rotate, display, and distribute the warning statement required to 
appear in advertising and labeling. The Commission is required by the 
Act to determine that these plans provide for rotation, display, and 
distribution of warnings in compliance with the Act and implementing 
regulations. To the best of the Commission's knowledge, all of the 
affected companies have previously filed plans. However, the plan 
submission requirement continues

[[Page 27927]]

to apply to a company that amends its plan, or to a new company that 
enters the market.
    Burden statement:
    Estimated annual hours burden: 1,000 hours (rounded). The FTC is 
retaining its existing burden estimated of 1,000 hours. This amount is 
based on the burden previously estimated for 14 smokeless tobacco 
companies to prepare and submit amended compliance plans, and to permit 
at least three new companies to submit initial compliance plans. Though 
staff's calculations underlying the estimate totaled 560 hours, staff 
then conservatively rounded up its estimate to 1,000 hours. Staff 
firmly believes that this prior rounded estimate will fully incorporate 
any incremental effects of an additional three companies submitting 
plans.
    Virtually all affected companies long ago filed their plans with 
the Commission. Additional annual reporting burdens would occur only if 
those companies opt to change the way they display the warnings 
required by the Smokeless Tobacco Act. Although it is not possible to 
predict whether any of the companies will seek to amend an existing 
approval plan (and possibly none will), staff conservatively assumes 
that each of the 14 smokeless tobacco companies will file one amendment 
per year. This estimate is conservative because, over the past three 
years, the Commission has reviewed amended plans from only two 
companies,\3\ and the Commission has not changed the relevant 
regulations.\4\ The estimated time to prepare the amended plans 
submitted by these companies is less than 40 hours each. The only major 
amendment of an approved plan, occurring more than three years ago, 
required only 40 hours to prepare, which is considerably less time than 
individual companies spent preparing their initial plans. Commission 
staff believes it reasonable to assume that each of the 14 smokeless 
tobacco companies would spend no more than 40 hours to prepare an 
amended plan.
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    \3\ One of these companies also submitted its initial plans for 
two brands during this period. The burden estimate for the initial 
plans is calculated separately.
    \4\ Should the Commission amend the regulations in a manner that 
materially affects the burden under the PRA, it will notify OMB and 
seek amended clearance.
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    Commission staff also estimates that one smokeless tobacco 
manufacturer will file an initial plan, for an additional burden of 
approximately 150 hours. Over the past three years, only one company 
has submitted initial plans that together involve only two brands.\5\ 
When the regulations were first proposed in 1986, representatives of 
the Smokeless Tobacco Council, Inc. indicated that the six companies it 
represented would require approximately 700 to 800 hours in total (133 
hours each) to complete the initial required plans, involving multiple 
brands and multiple brand varieties. Staff assumed that other companies 
would require a little more time, on average, to complete their plans. 
Staff estimated that one smokeless tobacco company may file an initial 
plan, and it would require approximately 150 hours to complete the 
plan, and it believes this estimate remains reasonable.
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    \5\ One of the plans involved a single brand with two brand 
varieties. The other plan involved a single brand with a single 
brand variety.
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    In addition to the estimates above, the staff anticipates that in 
the next three years, up to two small importers or small single brand 
companies may submit initial plans, for an additional burden of 
approximately 80 hours. The Commission has received such plans in the 
past. Because these plans involved only a limited number of brands and 
no advertising, the estimated time to prepare the plans was very 
modest. Staff estimates that the two importers or small single brand 
companies who may submit initial plans will spend no more than 40 hours 
each to prepare the plans.
    Based on these assumptions, the total annual hours burden should 
not exceed 1,000 hours. [(14 companies x 40 hrs. each) + (one company x 
150 hrs.) + (2 companies x 40 hrs.) = 790 total hours, rounded to one 
thousand hours.]
    Estimated annual labor cost burden: $103,000.
    The total annualzied labor cost to these companies should not 
exceed $103,000. This is based on the assumption that management or 
attorneys will account for 80% of the esitmated 1,000 hours required to 
rewrite or amend the plans, at an hourly rate of $125, and that 
clerical support will account for the remaining time (20%) at an hourly 
rate of $15. [Management and attorneys' time (1,000 hrs. x 0.80 x $125 
= $100,000) + clerical time (1,000 hrs. x 0.2 x $15 = $3,000).]
    Estimated annual non-labor cost burden: $0 or minimal.
    The applicable requirements impose minimal start-up costs. The 
companies may keep copies of their plans to ensure that labeling and 
advertising complies with the requirements of the Smokeless Tobacco 
Act. Such recordkeeping would require the use of office supplies, e.g., 
file folders and paper, all of which the companies should have on hand 
in the ordinary course of their business.
    While companies submitting initial plans may incur one-time capital 
expenditures for equipment used to print package labels in order to 
include the statutory health warnings or to prepare acetates for 
advertising, the warnings themselves disclose information completely 
supplied by the federal government. As such, the disclosure does not 
constitute a ``collection of information'' as it is defined in the 
regulations implementing the PRA, nor by extension, do the financial 
resources expended in relation to it constitute paperwork ``burden.'' 
See 5 CFR 1320.3(c)(2). Moreover, any expenditures relating to the 
statutory health warning requirements would likely be minimal in any 
event. As noted above, virtually all affected firms have already 
submitted approved plans. For these companies, there are no capital 
expenditures. After the Commission approves a plan for the display of 
the warnings required by the Smokeless Tobacco Act, the companies are 
required to make additional submissions to the Commission only if there 
is a change in the way that they choose to display the warnings. Once 
the companies have prepared plates to print the required warnings on 
their labels, there are no additional set-up costs associated with the 
display of the warnings in labeling. Similarly, once the companies have 
prepared acetates of the required warnings for advertising and 
promotional materials, there are no additional set-up costs associated 
with printing the warnings in those materials.
    Finally, capital expenditures for small importer are likely to be 
de minimis. Both firms that submitted plans over the past three years 
used stickers to place the warnings on their packages. The stickered 
warnings could be generated with office equipments and supplies such as 
computers and labels, all of which the companies should have on hand in 
the ordinary course of their business. Because neither firm engaged in 
any advertising, no costs associated with advertising were incurred.

John D. Graubert,
Acting General Counsel.
[FR Doc. 04-11101 Filed 5-14-04; 8:45 am]
BILLING CODE 6750-01-M