[Federal Register Volume 74, Number 28 (Thursday, February 12, 2009)]
[Notices]
[Pages 7061-7065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-3056]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

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'') (44 U.S.C. 
3501-3520). The FTC is seeking public comments on its proposal to 
extend through February 28, 2012, the current PRA clearances for 
information collection requirements contained in four product labeling 
rules enforced by the Commission. Those clearances expire on February 
28, 2009.

DATES: Comments must be received by March 16, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Apparel 
Rules: FTC File No. P074201'' to facilitate the organization of 
comments. Please note that comments will be placed on the public record 
of this proceeding--including on the publicly accessible FTC website, 
at (http://www.ftc.gov/os/publiccomments.shtm) -- and therefore should 
not include any sensitive or confidential information. In particular, 
comments should not include any sensitive personal information, such as 
an individual's Social Security Number; date of birth; driver's license 
number or other state identification number, or foreign country 
equivalent; passport number; financial account number; or credit or 
debit card number. Comments also should not include any sensitive 
health information, such as medical records or other individually 
identifiable health information. In addition, comments should not 
include any ``[t]rade secrets and commercial or financial information 
obtained from a person and privileged or confidential. . . .,'' as 
provided in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and 
Commission Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing 
material for which confidential treatment is requested must be filed in 
paper form, must be clearly labeled ``Confidential,'' and must comply 
with FTC Rule 4.9(c).\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 FTC Rule 4.9(c), 16 CFR 4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://

[[Page 7062]]

secure.commentworks.com/ftc-apparelrulespra2) (and following the 
instructions on the web-based form). To ensure that the Commission 
considers an electronic comment, you must file it on the web-based form 
at the weblink: (https://secure.commentworks.com/ftc-apparelrulespra2). 
If this Notice appears at (http://www.regulations.gov/search/index.jsp), you may also file an electronic comment through that 
website. The Commission will consider all comments that regulations.gov 
forwards to it. You may also visit the FTC website at http://
www.ftc.govto read the Notice and the news release describing it.
    A comment filed in paper form should include the ``Apparel Rules: 
FTC File No. P074201'' 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 Avenue, 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.
    Comments should additionally be submitted to: Office of Management 
and Budget, Attention: Desk Officer for the Federal Trade Commission. 
Comments should be submitted via facsimile to (202) 395-5167 because 
U.S. Postal Mail is subject to lengthy delays due to heightened 
security precautions.
    The Federal Trade Commission Act (``FTC Act'') and other laws the 
Commission administers permit the collection of public comments to 
consider and use in this proceeding as appropriate. The Commission will 
consider all timely and responsive public comments that it receives, 
whether filed in paper or electronic form. Comments received will be 
available to the public on the FTC website, to the extent practicable, 
at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of 
discretion, the Commission 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 or 
copies of the proposed information requirements should be addressed to 
Connie Vecellio and Matthew Wilshire, Attorneys, Division of 
Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Ave., 
N.W., Washington, D.C. 20580, (202) 326-2996.

SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act (``PRA''), 
44 U.S.C. 3501-3520, federal agencies must obtain approval from OMB for 
each collection of information they conduct or sponsor. On October 31, 
2008, the FTC sought comment on the information collection requirements 
associated with the Commission's regulations under the Fur Act, 16 CFR 
Part 301 (OMB Control Number 3084-0099); regulations under the Wool 
Act, 16 CFR Part 300 (OMB Control Number 3084-0100); regulations under 
the Textile Act, 16 CFR Part 303 (OMB Control Number 3084-0101); and 
the Care Labeling Rule, 16 CFR 423 (OMB Control Number 3084-0103).\2\ 
No comments were received. Pursuant to the OMB regulations that 
implement the PRA (5 CFR Part 1320), the FTC is providing this second 
opportunity for public comment while seeking OMB approval to extend the 
existing paperwork clearance for the rules. All comments should be 
filed as prescribed in the ADDRESSES section above, and must be 
received on or before March 16, 2009.
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    \2\ 73 FR 64948.
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    Staff's burden estimates for the four rules in question are based 
on data from the Department of Commerce's Bureau of the Census, the 
International Trade Commission, the Department of Labor's Bureau of 
Labor Statistics (``BLS''), and data or other input from industry 
sources. The relevant information collection requirements within these 
rules and corresponding burden estimates follow.

1. Regulations under the Fur Products Labeling Act, 15 U.S.C. 69 et 
seq. (``Fur Act''), 16 CFR Part 301 (OMB Control Number: 3084-0099).

    The Fur Act prohibits the misbranding and false advertising of fur 
products. The Fur Act Regulations, 16 CFR 301, establish disclosure 
requirements that assist consumers in making informed purchasing 
decisions, and recordkeeping requirements that assist the Commission in 
enforcing these regulations. The Regulations also provide a procedure 
for exemption from certain disclosure provisions under the Fur Act.
    Estimated annual hours burden: 121,000 hours, rounded to the 
nearest thousand (50,414 hours for recordkeeping + 70,226 hours for 
disclosure).
    Recordkeeping: The Regulations require that retailers, 
manufacturers, processors, and importers of furs and fur products keep 
certain records in addition to those they may keep in the ordinary 
course of business. Staff estimates that 1,150 retailers incur an 
average recordkeeping burden of about 13 hours per year (14,950 hours 
total); 82 manufacturers and fur processors combined incur an average 
recordkeeping burden of about 52 hours per year (4,264 total); and 
1,200 importers of furs and fur products incur an average recordkeeping 
burden of 26 hours per year (31,200 hours total). The combined 
recordkeeping burden for the industry is approximately 50,414 hours 
annually.
    Disclosure: Staff estimates that 1,220 respondents (70 
manufacturers + 1,150 retail sellers of fur garments) each require an 
average of 20 hours per year to determine label content (24,400 hours 
total), and an average of five hours per year to draft and order labels 
(6,100 hours total). Staff estimates that the total number of garments 
subject to the fur labeling requirements annually is approximately 
886,577.\3\ Staff estimates that for approximately 50 percent of these 
garments (443,289) labels are attached manually, requiring 
approximately four minutes per garment for a total of 29,553 hours 
annually. For the remaining 443,288, the process of attaching labels is 
semi-automated and requires an average of approximately two seconds per 
item, for a total of 246 hours. Thus, the total burden for attaching 
labels is 29,799 hours, and the total burden for labeling garments is 
60,299 hours per year (24,400 hours to determine label content + 6,100 
hours to draft and order labels + 29,799 hours to attach labels).
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    \3\ The total number of fur garments, fur-trimmed garments, and 
fur accessories is estimated to be approximately 1,019,054, based on 
International Trade Commission data. Of that number, approximately 
132,477 items are estimated to be exempt from the labeling 
requirements pursuant to 16 CFR 301.39 (items where either the cost 
of the fur trim to the manufacturer or the manufacturer's selling 
price for the finished product is less than $150 are exempt).
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    Staff estimates that the incremental burden associated with the 
Regulations' invoice disclosure requirement, beyond the time that would 
be devoted to preparing invoices in its absence, is approximately 30 
seconds per invoice.\4\ The invoice disclosure requirement

[[Page 7063]]

applies to fur garments, which are generally sold individually, and fur 
pelts, which are generally sold in groups of at least 50, on average. 
Based on information from the International Trade Commission and the 
Fur Commission USA, staff estimates a total of 8,333,865 pelts 
annually. Assuming invoices are prepared for sales of 886,577 garments 
and 166,677 groups (derived from an estimated 8,333,865 million pelts / 
50) each of imported and domestic pelts, the invoice disclosure 
requirement entails an estimated total burden of 8,777 hours (1,053,254 
total invoices x 30 seconds).
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    \4\ The invoice disclosure burden for PRA purposes excludes the 
time that respondents would spend for invoicing, apart from the Fur 
Act Regulations, in the ordinary course of business. See 5 CFR 
1320.3(b)(2).
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    Staff estimates that the Regulations' advertising disclosure 
requirements impose an average burden of one hour per year for each of 
the approximately 1,150 domestic fur retailers, or a total of 1,150 
hours.
    Thus, staff estimates the total disclosure burden to be 
approximately 70,226 hours (60,299 hours for labeling + 8,777 hours for 
invoices + 1,150 hours for advertising).
    Estimated annual cost burden: $1,911,000, rounded to the nearest 
thousand (solely relating to labor costs).

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        Task                  Hourly Rate                    Burden Hours                    Labor Cost
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Determine label                            $22.00                         24,400                       $536,800
 content
Draft and order                            $16.27                          6,100                        $99,247
 labels
Attach labels                           $9.50 \5\                         29,799                       $283,091
Invoice disclosures                        $16.27                          8,777                       $142,802
Prepare advertising                        $25.00                          1,150                        $28,750
 disclosures
Recordkeeping                              $16.27                         50,414                       $820,236
TOTAL                .............................  .............................                    $1,910,926
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\5\ Per industry sources, most fur labeling is done in the United States. This rate is reflective of an average
  domestic hourly wage for such tasks, which is derived from recent BLS statistics. Conversely, attaching labels
  with regard to the other regulations discussed herein is mostly performed by foreign labor, as detailed in
  note 6.

    Staff believes that there are no current start-up costs or other 
capital costs associated with the Regulations. Because the labeling of 
fur products has been an integral part of the manufacturing process for 
decades, manufacturers have in place the capital equipment necessary to 
comply with the Regulations' labeling requirements. Industry sources 
indicate that much of the information required by the Fur Act and its 
implementing Regulations would be included on the product label even 
absent the regulations. Similarly, invoicing, recordkeeping, and 
advertising disclosures are tasks performed in the ordinary course of 
business so that covered firms would incur no additional capital or 
other non-labor costs as a result of the Act or the Regulations.

2. Regulations under the Wool Products Labeling Act, 15 U.S.C. 68 et 
seq. (``Wool Act''), 16 CFR Part 300 (OMB Control Number: 3084-0100).

    The Wool Act prohibits the misbranding of wool products. The Wool 
Act Regulations, 16 CFR 300, establish disclosure requirements that 
assist consumers in making informed purchasing decisions and 
recordkeeping requirements that assist the Commission in enforcing the 
Regulations.
    Estimated annual hours burden: 440,000 hours, rounded to the 
nearest thousand (80,000 recordkeeping hours + 360,000 disclosure 
hours).
    Recordkeeping: Staff estimates that approximately 4,000 wool firms 
are subject to the Regulations' recordkeeping requirements. Based on an 
average annual burden of 20 hours per firm, the total recordkeeping 
burden is 80,000 hours.
    Disclosure: Approximately 8,000 wool firms, producing or importing 
about 600,000,000 wool products annually, are subject to the 
Regulations' disclosure requirements. Staff estimates the burden of 
determining label content to be 15 hours per year per respondent, or a 
total of 120,000 hours, and the burden of drafting and ordering labels 
to be 5 hours per respondent per year, or a total of 40,000 hours. 
Staff believes that the process of attaching labels is now fully 
automated and integrated into other production steps for about 40 
percent of all affected products. For the remaining 360,000,000 items 
(60 percent of 600,000,000), the process is semi-automated and requires 
an average of approximately two seconds per item, for a total of 
200,000 hours per year. Thus, the total estimated annual burden for all 
respondents is 360,000 hours (120,000 hours for determining label 
content + 40,000 hours to draft and order labels + 200,000 hours to 
attach labels). Staff believes that any additional burden associated 
with advertising disclosure requirements would be minimal (less than 
10,000 hours) and can be subsumed within the burden estimates set forth 
above.
    Estimated annual cost burden: $5,702,000, rounded to the nearest 
thousand (solely relating to labor costs).

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        Task                  Hourly Rate                    Burden Hours                    Labor Cost
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Determine label                            $22.00                        120,000                     $2,640,000
 content
Draft and order                            $16.27                         40,000                       $650,800
 labels
Attach labels                           $5.55 \6\                        200,000                     $1,110,000
Recordkeeping                              $16.27                         80,000                     $1,301,600
TOTAL                .............................  .............................                    $5,702,400
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\6\ For products that are imported, this work generally is done in the country where they are manufactured.
  According to information compiled by an industry trade association using data from the International Trade
  Commission, the U.S. Customs Service, and the U.S. Census Bureau, approximately 95 % of apparel and other
  textile products used in the United States is imported. With the remaining 5 % attributable to U.S. production
  at an approximate domestic hourly wage of $9.50 to attach labels, staff has calculated a weighted average
  hourly wage of $5.55 per hour attributable to U.S. and foreign labor combined. The estimated percentage of
  imports supplied by particular countries is based on trade data for 2007 compiled by the Office of Textiles
  and Apparel, International Trade Administration, U.S. Department of Commerce. Wages in major textile exporting
  countries, factored into the above hourly wage estimate, were based on 2006 data from the U.S. Department of
  Labor, Bureau of International Labor Affairs. See ``International Comparisons of Hourly Compensation Costs for
  Production Workers in Manufacturing,'' Table 1, available at: http://www.bls.gov/fls/hcpwsupptabtoc.htm.


[[Page 7064]]

    Staff believes that there are no current start-up costs or other 
capital costs associated with the Regulations. Because the labeling of 
wool products has been an integral part of the manufacturing process 
for decades, manufacturers have in place the capital equipment 
necessary to comply with the Regulations. Based on knowledge of the 
industry, staff believes that much of the information required by the 
Wool Act and its implementing regulations would be included on the 
product label even absent their requirements. Similarly, recordkeeping 
and advertising disclosures are tasks performed in the ordinary course 
of business so that covered firms would incur no additional capital or 
other non-labor costs as a result of the Regulations.

3. Regulations under The Textile Fiber Products Identification Act, 15 
U.S.C. 70 et seq. (``Textile Act''), 16 CFR Part 303 (OMB Control 
Number: 3084-0101).

    The Textile Act prohibits the misbranding and false advertising of 
textile fiber products. The Textile Act Regulations, 16 CFR 303, 
establish disclosure requirements that assist consumers in making 
informed purchasing decisions, and recordkeeping requirements that 
assist the Commission in enforcing the Regulations. The Regulations 
also contain a petition procedure for requesting the establishment of 
generic names for textile fibers.
    Estimated annual hours burden: approximately 8,456,000 hours, 
rounded to the nearest thousand (623,400 recordkeeping hours + 
7,832,842 disclosure hours).
    Recordkeeping: Staff estimates that approximately 24,936 textile 
firms are subject to the Textile Regulations' recordkeeping 
requirements. Based on an average burden of 25 hours per firm, the 
total recordkeeping burden is 623,400 hours.
    Disclosure: Approximately 26,647 textile firms, producing or 
importing about 21.5 billion textile fiber products annually, are 
subject to the Regulations' disclosure requirements.\7\ Staff estimates 
the burden of determining label content to be 20 hours per year per 
respondent, or a total of 532,940 hours and the burden of drafting and 
ordering labels to be 5 hours per respondent per year, or a total of 
133,235 hours.\8\ Staff believes that the process of attaching labels 
is now fully automated and integrated into other production steps for 
about 40 percent of all affected products. For the remaining 12.9 
billion items (60 percent of 21.5 billion), the process is semi-
automated and requires an average of approximately two seconds per 
item, for a total of 7,166,667 hours per year. Thus, the total 
estimated annual burden for all respondents is 7,832,842 hours (532,940 
hours to determine label content + 133,235 hours to draft and order 
labels + 7,166,667 hours to attach labels).\9\ Staff believes that any 
additional burden associated with advertising disclosure requirements 
or the filing of generic fiber name petitions would be minimal (less 
than 10,000 hours) and can be subsumed within the burden estimates set 
forth above.
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    \7\ The apparent consumption of garments in the U.S. in 2007 was 
20.1 billion. Staff estimates that 1 billion garments are exempt 
from the Textile Act (i.e., any kind of headwear and garments made 
from something other than a textile fiber product, such as leather) 
or are subject to a special exemption for hosiery products sold in 
packages where the label information is contained on the package. 
Based on available data, staff estimates that an additional 3 
billion household textile products (non-garments, such as sheets, 
towels, blankets) were consumed. However, approximately 0.6 billion 
of all of these combined products (garments and non-garments) are 
subject to the Wool Products Labeling Act, not the Textile Fiber 
Products Identification Act, because they contain some amount of 
wool. Thus, the estimated net total products subject to the Textile 
Fiber Products Identification Act is 21.5 billion.
    \8\ In 2007, Congress amended the Wool Act to explicitly define 
``cashmere'' and certain terms used to describe superfine wool 
(e.g., ``Super 80s,'' ``Super 90s,'' etc.). See Pub. L. 109-428. The 
Commission anticipates revising the wool Regulations to incorporate 
these amendments. The Commission will seek comment on the increased 
burden, if any, imposed by these changes when it announces the 
revisions.
    \9\ The Commission revised the Textile Act Regulations in 2006 
in response to amendments to the Textile Act. See 70 Fed. Reg. 73369 
(Dec. 12, 2005). These amendments concerned the placement of labels 
on packages of certain types of socks and, therefore, do not place 
any additional disclosure burden on covered entities.
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    Estimated annual cost burden: $63,810,000, rounded to the nearest 
thousand (solely relating to labor costs).

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        Task                  Hourly Rate                    Burden Hours                    Labor Cost
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Determine label                            $22.00                        532,940                    $11,724,680
 content
Draft and order                            $16.27                        133,235                     $2,167,733
 labels
Attach labels                          $5.55 \10\                      7,166,667                    $39,775,002
Recordkeeping                              $16.27                        623,400                    $10,142,718
TOTAL                .............................  .............................                   $63,810,133
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\10\ See note 6.

    Staff believes that there are no current start-up costs or other 
capital costs associated with the Regulations. Because the labeling of 
textile products has been an integral part of the manufacturing process 
for decades, manufacturers have in place the capital equipment 
necessary to comply with the Regulations' labeling requirements. 
Industry sources indicate that much of the information required by the 
Textile Act and its implementing rules would be included on the product 
label even absent their requirements. Similarly, recordkeeping, 
invoicing, and advertising disclosures are tasks performed in the 
ordinary course of business so that covered firms would incur no 
additional capital or other non-labor costs as a result of the 
Regulations.

4. The Care Labeling Rule, 16 CFR Part 423 (OMB Control Number: 3084-
0103).

    The Care Labeling Rule, 16 CFR Part 423, requires manufacturers and 
importers to attach a permanent care label to all covered textile 
clothing in order to assist consumers in making purchase decisions and 
in determining what method to use to clean their apparel. Also, 
manufacturers and importers of piece goods used to make textile 
clothing must provide the same care information on the end of each bolt 
or roll of fabric.
    Estimated annual hours burden: 7,566,000 hours, rounded to the 
nearest thousand (solely relating to disclosure\11\).
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    \11\ The Care Labeling Rule imposes no specific recordkeeping 
requirements. Although the Rule requires manufacturers and importers 
to have reliable evidence to support the recommended care 
instructions, companies may provide as support current technical 
literature or rely on past experience.
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    Staff estimates that approximately 26,647 manufacturers or 
importers of textile apparel, producing about 20.1 billion textile 
garments annually, are subject to the Rule's disclosure requirements. 
The burden of developing proper care instructions may vary greatly 
among firms, primarily based on the number of different lines of 
textile

[[Page 7065]]

garments introduced per year that require new or revised care 
instructions. Staff estimates the burden of determining care 
instructions to be 43 hours each year per respondent, for a cumulative 
total of 1,145,821 hours. Staff further estimates that the burden of 
drafting and ordering labels is 2 hours each year per respondent, for a 
total of 53,294 hours. Staff believes that the process of attaching 
labels is fully automated and integrated into other production steps 
for about 40 percent of the approximately 19.1 billion garments that 
are required to have care instructions on permanent labels.\12\ For the 
remaining 11.46 billion items (60 percent of 19.1 billion), the process 
is semi-automated and requires an average of approximately two seconds 
per item, for a total of 6,366,667 hours per year. Thus, the total 
estimated annual burden for all respondents is 7,565,782 hours 
(1,145,821 hours to determine care instructions + 53,294 hours to draft 
and order labels + 6,366,667 hours to attach labels).
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    \12\ About 1 billion of the 20.1 billion garments produced 
annually are either not covered by the Care Labeling Rule (gloves, 
hats, caps, and leather, fur, plastic, or leather garments) or are 
subject to an exemption that allows care instructions to appear on 
packaging (hosiery).
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    Estimated annual cost burden: $61,410,000\13\ , rounded to the 
nearest thousand (solely relating to labor costs).
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    \13\ We have corrected an error in this calculation that 
appeared in the prior 60-day Federal Register notice.

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        Task                  Hourly Rate                    Burden Hours                    Labor Cost
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Determine care                             $22.00                      1,145,821                    $25,208,062
 instructions
Draft and order                            $16.27                         53,294                       $867,093
 labels
Attach labels                          $5.55 \14\                      6,366,667                    $35,335,002
TOTAL                .............................  .............................                   $61,410,157
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\14\ See note 6.

    Staff believes that there are no current start-up costs or other 
capital costs associated with the Rule. Because the labeling of textile 
products has been an integral part of the manufacturing process for 
decades, manufacturers have in place the capital equipment necessary to 
comply with the Rule's labeling requirements. Based on knowledge of the 
industry, staff believes that much of the information required by the 
Rule would be included on the product label even absent those 
requirements.

David C. Shonka,
Acting General Counsel.
[FR Doc. E9-3056 Filed 2-11-09: 8:45 am]
[Billing code: 6750-01-S]