[Federal Register Volume 70, Number 88 (Monday, May 9, 2005)]
[Notices]
[Pages 24415-24417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9261]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection: 
Comment Request

AGENCY: Federal Trade Commission (FTC).

ACTION: Notice.

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SUMMARY: The FTC is soliciting public comments on proposed information 
requests to cigarette manufacturers and smokeless tobacco 
manufacturers. These comments will be considered before the FTC submits 
a request for Office of Management and Budget (OMB) review under the 
Paperwork Reduction Act (PRA), 44 U.S.C. 3501-3520, of compulsory 
process orders to the largest companies in those two industries for 
information concerning, inter alia, their sales and marketing 
expenditures.

DATES: Comments must be submitted on or before July 8, 2005.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to the ``Tobacco Reports: Paperwork Comment, FTC 
File No. P054507'' to facilitate the organization of the 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

[[Page 24416]]

(Annex G), 600 Pennsylvania Avenue, NW., Washington, DC 20580. Comments 
containing confidential material 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. 
Comments filed in electronic form (except comments containing any 
confidential material) should be sent to the following e-mail box: 
[email protected].
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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 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 
should be addressed to Michael Ostheimer, Attorney, Division of 
Advertising Practices, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580. 
Telephone: (202) 326-2699.

SUPPLEMENTARY INFORMATION: The sales and marketing data contained in 
the cigarette and smokeless tobacco reports that the FTC has issued for 
many years have been based on data submitted to the Commission pursuant 
to compulsory process by the largest cigarette and smokeless tobacco 
manufacturers in the United States. \2\ The FTC has authority to compel 
production of this information from cigarette and smokeless tobacco 
manufacturers under Section 6(b) of the FTC Act, 15 U.S.C. 46(b). The 
Federal Reports Elimination and Sunset Act of 1995 \3\ terminated the 
statutory mandates for these reports and allowed the agency to assess 
for itself the need for the reports. Accordingly, the Commission sought 
public comment on whether continuing to issue reports on the cigarette 
and smokeless tobacco industries was in the public interest and what 
forms any such reports should take. \4\ The Commission determined that 
the continued publication of such reports was in the public interest, 
and subsequently issued several reports.
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    \2\ Beginning in 1967, the Commission submitted annual reports 
to Congress on cigarette sales and marketing pursuant to the Federal 
Cigarette Labeling and Advertising Act. 15 U.S.C. 1331-1341. 
Beginning in 1986, the Commission submitted biennially to Congress 
reports on smokeless tobacco pursuant to the Comprehensive Smokeless 
Tobacco Health Education Act. 15 U.S.C. 4401-4408.
    \3\ Pub. L. 104-66, Section 3003(a)(1), 109 Stat. 734.
    \4\ 66 FR 18640 (2001).
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    More recently, the Commission decided to address its information 
requests to the ultimate parent of each of the leading cigarette and 
smokeless tobacco manufacturers in order to assure that no relevant 
data from affiliated companies goes unreported. This change presumably 
increases the number of separately incorporated entities affected by 
the Commission's requests. The Commission intends to seek OMB clearance 
under the Paperwork Reduction Act before requesting any information for 
these reports from the largest cigarette and smokeless tobacco 
manufacturers.
    Under the PRA, 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 submitting the proposed information collection 
requirements to OMB for review, as required by the PRA.
    The FTC invites comments on: (1) 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) the accuracy of the FTC's estimate of the burden 
of the proposed collections of information; (3) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(4) ways to minimize the burden of collecting 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.

A. Information Requests to the Cigarette and Smokeless Tobacco 
Industries

1. Description of the Collection of Information and Proposed Use

    The FTC proposes to send information requests on an annual basis to 
the ultimate parent company of each of the five largest cigarette 
companies and each of the five largest smokeless tobacco companies in 
the United States (``industry members''). The information requests will 
seek data regarding, inter alia: (1) The tobacco sales of industry 
members; (2) how much industry members spend advertising and promoting 
their tobacco products; (3) whether industry members are involved in 
the appearance of their tobacco products in television shows or movies; 
(4) how much industry members spend on advertising intended to reduce 
youth tobacco usage; (5) the events, if any, during which industry 
members' tobacco brands are televised; and (6) for the cigarette 
industry, the tar, nicotine, and carbon monoxide ratings of their 
cigarettes, to the extent they possess such data.

2. Estimated Hours Burden

    The FTC staff's estimate of the hours burden is based on the time 
required to respond to each information request. Although the 
Commission intends to issue the information requests only to the five 
largest cigarette companies and the five largest smokeless tobacco 
companies (for a total of 10 information requests), the burden estimate 
is based on up to 15 information requests being issued per year to take 
into account any future changes in these industries. Because these 
companies vary greatly in size, in the number of products that they 
sell, and in the extent and variety of their advertising and promotion, 
the FTC staff has provided a range of the estimated hours burden. Based 
upon its knowledge of the industries, the staff estimates that the time 
required to gather, organize, format, and produce such responses ranges 
between 30 and 80 hours per information request for all but the very 
largest companies. The very largest companies could require hundreds of 
hours per year. Thus, the staff estimates a total of 1,800 hours per 
year, with an average burden per company for each of the intended ten 
recipients of 180 hours. The staff estimates that for possible 
additional

[[Page 24417]]

recipients, which would be smaller companies, the burden should not 
exceed 300 hours (60 hours per company x 5 companies). Thus the staff's 
estimate of the total burden is 2,100 hours. These estimates include 
any time spent by separately incorporated subsidiaries and other 
entities affiliated with the ultimate parent company that has received 
the information request. \5\
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    \5\ The staff's burden estimate takes into account that the 
first request to the five smokeless tobacco companies may cover data 
for three calendar years.
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3. Estimated Cost Burden

    It is not possible to calculate with precision the labor costs 
associated with this data production, as they entail varying 
compensation levels of management and/or support staff among companies 
of different sizes. Financial, legal, marketing, and clerical personnel 
may be involved in the information collection process. We have assumed 
that professional personnel will handle most of the tasks involved in 
gathering and producing responsive information, and have applied an 
average hourly wage of $150/hour for their labor. The staff's best 
estimate for the total labor costs for up to 15 information requests is 
$315,000.
    The Commission estimates that the capital or other non-labor costs 
associated with the information requests are minimal. Although the 
information requests may necessitate that industry members maintain the 
requested information provided to the Commission, they should already 
have in place the means to compile and maintain business records.

William Blumenthal,
General Counsel.
[FR Doc. 05-9261 Filed 5-6-05; 8:45 am]
BILLING CODE 6750-01-U