[Federal Register Volume 73, Number 109 (Thursday, June 5, 2008)]
[Notices]
[Pages 32026-32029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12590]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

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

ACTION: Notice.

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SUMMARY: The Federal Trade Commission is seeking public comments on its 
proposal to conduct consumer research on parental use of the Motion 
Picture Association of America (``MPAA'') movie rating information as 
it appears on DVD packaging for home video releases of rated motion 
pictures. The FTC is also seeking comment on a related proposal to 
conduct consumer research on parental attitudes toward the marketing of 
unrated DVD versions of rated motion pictures. To examine both issues, 
the Commission intends to conduct surveys of parents who have one or 
more children ages 7 to 16, and who have bought or rented a movie on 
DVD within the past year. 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'').

DATES: Comments must be filed by August 4, 2008.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``DVD Rating Symbol Study: FTC Matter No. 
P994511,'' 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-135 (Annex 
J), 600 Pennsylvania Ave., NW, Washington, DC 20580. 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. Moreover, because paper mail in the 
Washington area and at the Agency is subject to delay, please consider 
submitting your comments in electronic form, as prescribed below. If, 
however, the comment contains any material for which confidential 
treatment is requested, it must be filed in paper form, and the first 
page of the document must be clearly labeled ``Confidential.''\1\
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    \1\ FTC 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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    Comments filed in electronic form should be submitted by following 
the instructions on the web-based form at https://secure.commentworks.com/ftc-DVDRatingStudy. To ensure that the 
Commission considers an electronic comment, you must file it on the 
web-based form at the https://secure.commentworks.com/ftc-DVDRatingStudy weblink. If this notice appears at www.regulations.gov, 
you may also file an electronic comment through that website. The 
Commission will consider all comments that regulations.gov forwards to 
it.
    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 will be 
considered by the Commission and will be available to the public on the 
FTC website, to the extent practicable, at 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 website. 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.shtm).

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Michelle K. Rusk (202) 326-3148, or Keith R. 
Fentonmiller (202) 326-2775, Attorneys, Division of Advertising 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue, N.W., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: In September 2000, the Commission issued a 
report requested by the President and the Congress entitled, 
``Marketing Violent Entertainment to Children: A Review of Self-
Regulation and Industry Practices in the Motion Picture, Music 
Recording & Electronic Game Industries'' (hereafter ``2000 
Report'').\2\ That report found that the entertainment industry had 
engaged in widespread marketing of violent movies, video games, and 
music to children in a manner that was inconsistent with the industry's 
own rating systems and that undermined parents' attempts to make 
informed decisions about their children's exposure to violent content. 
Beginning with its 2000 Report, the Commission has made a series of 
specific recommendations to the industry regarding the disclosure of 
rating information, placement of advertising in media popular with 
children, and other aspects of marketing violent entertainment to 
children. The Commission has now issued five follow-up reports on the 
industry's progress toward implementing those recommendations.\3\
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    \2\ Available at (http://www.ftc.gov/bcp/conline/edcams/ratings/reports.htm).
    \3\ The follow-up reports were issued in April 2001, December 
2001, June 2002, July 2004, and April 2007. They are available at 
(http://www.ftc.gov/bcp/conline/edcams/ratings/reports.htm).
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    As one aspect of its ongoing monitoring, the Commission has 
examined the disclosure of MPAA ratings and rating reasons on DVD 
packaging for home video releases of MPAA-rated motion pictures. The 
MPAA Advertising Handbook requires that ``all packaging of rated home 
video releases must carry the rating of the motion picture and the 
rating reasons,'' and that ``the rating symbol and specific rating 
reasons must be clearly and legibly displayed.''\4\ The MPAA 
Advertising Handbook does not specify the location, size, or other 
aspects of how the rating information must be displayed. To assess 
compliance with MPAA requirements, the Commission looked at a sample of 
packaging for 12 movies on DVD as part of its June 2002 Report. The 
Commission found that all of the DVDs displayed the ratings and rating 
reasons, but that the small size, inconsistent positioning on the back 
of the package, and poor contrast made the rating information less 
noticeable.\5\ The Commission recommended that the industry improve the 
disclosure of rating information to ensure that it was effectively and 
clearly communicated on product packaging.\6\ Subsequently, in its July 
2004 Report, the Commission again noted that the movie industry 
typically places the movie's rating and rating reasons on the back of 
the DVD packaging and recommended that all of the rating information be 
placed prominently on the front of the packaging to make it more 
visible for parents and children and to assist retail store clerks in 
enforcing policies against selling R-rated DVDs to children.\7\ The 
Commission renewed this recommendation in its April 2007 Report.\8\
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    \4\ 2006 MPAA Advertising Handbook at 38 (on file with Federal 
Trade Commission staff).
    \5\ June 2002 Report at 10-11, available at (http://www.ftc.gov/bcp/conline/edcams/ratings/reports.htm).
    \6\ Id.
    \7\ July 2004 Report at 29, available at (http://www.ftc.gov/bcp/conline/edcams/ratings/reports.htm).
    \8\ April 2007 Report at 32, available at (http://www.ftc.gov/bcp/conline/edcams/ratings/reports.htm).
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    In the April 2007 Report, the Commission also reviewed, for the 
first time, the movie industry's practice of releasing unrated DVD 
versions of movies that were rated R when they were first released in 
theaters.\9\ The Commission expressed concern that these unrated, or 
so-called ``Director's Cut,'' home video releases sometimes contain 
additional footage that would result in a more restrictive rating if 
resubmitted for review by the MPAA. The agency cited examples of DVD 
movie packaging where studios exploited the lack of an MPAA rating to 
promote the movie. The Commission questioned whether the marketing of 
these unrated DVDs undermines the self-regulatory system. The agency 
suggested that the MPAA and DVD retailers establish policies on the 
advertising and sale of these DVDs to children.\10\
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    \9\ Id. at 8-11.
    \10\ Id. at 33.
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    The FTC is seeking public comments on its proposal to examine, 
through consumer research, two issues relating to MPAA ratings and DVD 
home video releases: (1) how the placement and size of MPAA rating 
information on DVD packaging for rated movies affects parental use of 
the rating; and (2) parental awareness and attitudes about the 
marketing of unrated DVDs. The Commission will seek OMB clearance under 
the PRA, 44 U.S.C. 3501-3521, before engaging in the proposed consumer 
research.
    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 requesting that OMB grant the clearance for this 
consumer survey.
    The FTC invites comments on: (1) whether the required 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;

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(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.
    All comments should be filed as prescribed in the ADDRESSES section 
above, and must be received on or before August 4, 2008.

1. Description of the Collection of Information and Proposed Use

    The FTC proposes to conduct a mall intercept study, using an 
experimental design with two treatment conditions, to assess how the 
placement and size of MPAA rating information on DVD packaging affects 
parental use of the rating. The FTC proposes to conduct a telephone 
survey to assess parental awareness and attitudes about the marketing 
of unrated DVDs. The methodologies for both consumer research proposals 
are detailed below.

a. The Mall Intercept Study on DVD Rating Prominence

    A mall intercept study is the most appropriate methodology for 
assessing differences in the effect of placement and size of the MPAA 
rating because it allows respondents to physically examine samples of 
DVD packaging. The study will have an experimental design with 
respondents randomly assigned to one of two treatment conditions. The 
study will analyze differences in response between the two groups.
    The FTC proposes to conduct the study in multiple locations across 
the country using a random sample of 400 adult respondents who are 
parents of one or more children ages 7 to 16, and who have bought or 
rented a DVD movie for their children within the past year. The study 
will be divided into two groups of 200. Each group will be given the 
opportunity to examine a DVD package for a movie that has been rated 
either PG-13 or R due in part to violent content.\11\ One group will be 
exposed to DVD packaging that displays the rating information as it 
actually appears on the back cover. The other group will be exposed to 
the same DVD packaging, with the exception that the rating information 
will be graphically altered to appear on the front panel and in a 
larger size. After exposure to the package, respondents will be asked a 
series of questions related to what respondents noticed about the 
package, whether they noticed the rating information, and whether or 
not they would allow their child to watch the movie.
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    \11\ Parents of children ages 7 to 11 will be shown DVD 
packaging for a PG-13-rated movie and parents of children ages 12 to 
16 will be shown packaging for an R-rated movie. Parents with 
children in both age groups will be randomly assigned to either the 
PG-13 or R group.
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    The information from the questionnaires will be collected on a 
voluntary basis, and the identities of the respondents will remain 
confidential. Subject to OMB approval for the collection of 
information, the FTC plans to contract with a consumer research firm 
that will identify respondents, conduct a pretest, refine the 
questionnaire, and conduct the study. The results will assist the FTC 
in determining how easy or difficult it is for parents to find and use 
MPAA rating information on DVD packaging and whether changes in 
presentation of the rating information will significantly improve the 
ease of use.

b. The Telephone Survey

    To assess parental awareness and attitudes about the marketing of 
unrated DVDs, the FTC plans to conduct a national telephone survey of 
1,000 adult respondents who are parents of one or more children ages 7 
to 16, and who have bought or rented a DVD movie for their children 
within the past year. This approach will allow the agency to have a 
sufficiently large and representative sample of the population to 
accurately assess parents' awareness and attitudes. Respondents will be 
asked a combination of open-ended and closed-ended questions. The 
questions will measure the level of parents' awareness of the marketing 
of unrated DVDs and assess whether parents understand that unrated DVD 
movies may contain content that could result in a more restrictive 
rating than the rating assigned to the theater version of the same 
movie. Additional questions will be designed to assess parents' 
attitudes about the marketing of unrated DVDs, including how the 
absence of a rating affects their decision whether to allow their 
children to watch the movie. Finally, respondents will be asked 
questions about what policy they expect DVD retailers to apply to the 
sale of unrated DVDs directly to children.
    As with the mall intercept study, the information from the 
telephone survey questionnaires will be collected on a voluntary basis, 
and the identities of the respondents will remain confidential. Subject 
to OMB approval for the collection of information, the FTC plans to 
contract with a consumer research firm that will identify respondents, 
conduct a pretest of the survey, refine the questionnaire, and conduct 
the survey. The results of the telephone survey will assist the FTC in 
assessing how the marketing of unrated DVDs impacts parents' decisions 
about what movies they will allow their children to watch. It will also 
help the FTC in forming recommendations about retail policies for the 
sale of unrated DVDs directly to children.

2. Estimated Hours Burden

    For the mall intercept study and a pretest of the study, the 
contractor will screen respondents to identify parents with children 
ages 7 to 16 who have bought or rented a DVD movie for their child 
within the past year. Allowing for non-response, the FTC staff 
estimates that the screening questions will be asked of approximately 
2,000 respondents in order to obtain a large enough sample for the 
study and the pretest. The FTC staff estimates that screening will 
require no more than two minutes per person for a maximum hour burden 
of 67 hours (2,000 respondents 2 minutes for each).
    The FTC intends to pretest the questionnaire on 15 parents to 
ensure that all questions are easily understood. The FTC expects that 
the pretest will require no more than 10 minutes per person. The hours 
burden imposed by the pretest will be approximately 2.5 hours (15 
respondents 10 minutes for each).
    The FTC staff estimates that the study of 400 respondents also will 
require no more than 10 minutes per person or, cumulatively, 67 hours 
(400 respondents 10 minutes for each).
    Thus, the estimated total hours burden attributable to the mall 
intercept study is 136.5 hours (67 + 2.5 + 67).
    For the telephone survey and a pretest of the survey, the 
contractor will apply the same screening threshold, identifying 
respondents who are parents with children ages 7 to 16 who have bought 
or rented a DVD movie for their child within the past year. Allowing 
for non-response, the FTC staff estimates that the screening questions 
will be asked of approximately 9,000 respondents in order to obtain a 
large enough sample for the survey and the pretest. The FTC staff 
estimates that screening will require no more than one minute per 
person for a maximum hour burden of 150 hours (9,000 respondents 1 
minute for each).
    The FTC intends to pretest the questionnaire on 100 parents to 
ensure that all questions are easily understood. The FTC expects that 
the pretest will require no more than 5 minutes per

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person. The hours burden imposed by the pretest will be approximately 
8.5 hours (100 respondents 5 minutes for each).
    The FTC staff estimates that the survey of 1,000 respondents also 
will require no more than 5 minutes per person or 83.5 hours (1,000 
respondents 5 minutes for each).
    Thus, the estimated total hours burden attributable to the 
telephone survey research is 242 hours (150 + 8.5 + 83.5).
    The combined total hours burden attributable to both research 
projects is 378.5 hours (242 + 136.5).

3. Estimated Cost Burden

    The cost per respondent should be negligible. Participation is 
voluntary and will not require any labor expenditures by respondents 
nor capital, start-up, operation, maintenance, or other similar costs.

William Blumenthal
General Counsel
[FR Doc. E8-12590 Filed 6-4-08: 8:45 am]
[Billing code: 6750-01-S]