[Federal Register Volume 74, Number 33 (Friday, February 20, 2009)]
[Notices]
[Pages 7894-7904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-3645]


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FEDERAL TRADE COMMISSION


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

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

ACTION: Notice.

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SUMMARY: The FTC plans to conduct a consumer study to evaluate 
alternatives to the current disclosures required for most consumer lamp 
(i.e., light bulb) products. The Commission is examining the 
effectiveness of current light bulb package labeling as directed by 
Congress. Before conducting this study, the FTC is seeking public 
comments on the proposed study pursuant to the Paperwork Reduction Act 
(``PRA'').

DATES: Comments must be received on or before March 23, 2009.

ADDRESSES: The Commission invites interested parties to submit written 
comments electronically or in paper form. Comments should refer to 
``Lamp Labeling Study, Project No. P084206'' 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 FTC 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://secure.commentworks.com/ftc-lampstudy) (and following the

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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-lampstudy). 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.
    A comment filed in paper form should include the reference ``Lamp 
Labeling Study, Project No. P084206'' 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 requests 
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.
    All comments should additionally be submitted to: Office of 
Information and Regulatory Affairs of OMB, 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 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: Hampton Newsome, Attorney, 202-326-
2889, or Lemuel Dowdy, Attorney, 202-326-2981, Division of Enforcement, 
Bureau of Consumer Protection, Federal Trade Commission.

SUPPLEMENTARY INFORMATION:

I. Background

    The FTC's current rules require disclosure of energy use (in 
watts), light output (in lumens), and life (in hours) on packaging for 
most consumer lamp (light bulb) products.\2\ In the Energy Independence 
and Security Act of 2007,\3\ Congress directed the FTC to consider the 
effectiveness of these lamp labeling requirements\4\ and alternative 
labeling disclosures. In particular, the Act calls on the Commission to 
consider whether alternative labeling approaches will help consumers 
better understand new high-efficiency lamp products and help them 
choose lamps that meet their needs.
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    \2\ See 16 CFR Part 305.
    \3\ See Section 321(b) of the Energy Independence and Security 
Act of 2007 (Pub. L. 110-140 (Sec.  324(a)).
    \4\ The current requirements do not impose a uniform disclosure 
format. Instead, the labeling requirements provide manufacturers 
flexibility regarding the size, font, and style in which the 
information is presented. See 16 CFR Part 305.
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    As a first step toward fulfilling this mandate, the Commission 
published an Advance Notice of Proposed Rulemaking on July 18, 2008 (73 
FR 40988) that provided background about current FTC labeling rules for 
light bulbs, the recent Congressional mandate, the purpose of the FTC 
labeling requirements, and various labeling considerations. In the 
Notice and at a public roundtable held on September 15, 2008, the 
Commission sought comment concerning the effectiveness of current 
labeling requirements, as well as whether labeling alternatives would 
help consumers in their purchasing decisions. Specifically, the 
Commission asked for comment on whether lamp packages should disclose 
characteristics such as lamp brightness, energy use, operating cost, 
color temperature, and lamp life. FTC staff, through its contractor, 
also asked a consumer focus group about various attributes of light 
bulb labels.\5\
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    \5\ A report on the seven-person focus group, prepared by FTC's 
contractor, Synovate, Inc., is available at (http://www.ftc.gov/os/comments/lightbulbs/index.shtm).
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    The Commission also requested that commenters provide consumer 
research related to lighting disclosures. However, no commenters 
submitted or identified any recent, comprehensive consumer research. 
The Commission, therefore, is planning to conduct a consumer research 
study to aid in determining what revisions, if any, it should make to 
existing labeling requirements. The Commission announced this consumer 
research effort in a December 1, 2008 notice (73 FR 72800). The 
Commission received no comments in response to that notice. The 
Commission will use the results of these consumer research results, 
along with other information gathered through the roundtable and 
written comments, to develop proposed changes to current lamp labeling 
requirements. This Notice provides additional details about the 
proposed research, an estimate of the burden hours associated with the 
collection of information for that activity, and an invitation for 
comment on these issues.

II. FTC's Proposed Consumer Study

    The FTC proposes to collect information from consumers to gather 
data on the effectiveness of current lamp labels and alternative label 
designs. The proposed study will involve a sample of approximately 
5,600 respondents who are at least 18 years old and recent or likely 
future light bulb purchasers.\6\ The FTC and its contractor will 
administer questions to the respondents online over the Internet.\7\ 
The study will employ standard consumer survey methodologies, including 
copy testing and choice experiments, to explore how different label 
designs impact consumer decision-making regarding the purchase of light 
bulb products. The study will allow the FTC to explore the performance 
of various label formats, the labeling preferences of the respondents, 
and their understanding of relevant lighting concepts.
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    \6\ The FTC expects to study a stratified sample of the adult 
United States population that is broadly representative of consumer 
group attributes (e.g., geographic location, housing 
characteristics, gender, age, education, and race/ethnicity) based 
on the most recent Census Bureau's Current Population Survey and the 
Department of Energy's Residential Energy Consumption Survey. The 
contractor will identify respondents using any relevant, preexisting 
data in its Internet panel database and any necessary additional 
screener questions. The screener questions will help to ensure that 
the demographic composition of the sample reasonably matches that of 
the target population. Allowing for non-responses, up to 
approximately 15,000 respondents will answer screener questions. 
This number of respondents should enable the FTC to obtain its 
target sample size of 5,600 individuals.
    \7\ The FTC also will pretest the study on approximately 25 
individuals to ensure that all questions are understood. The pretest 
participants will be drawn from the target population.
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    The study will use a basic label design that includes certain 
information disclosures on the front of the package, as well as more 
comprehensive label disclosures on the rear or side panel (see sample 
labels at the end of this Notice). The test labels on the front of the 
package will include four (or fewer) disclosures: light output (or 
``brightness''), energy (e.g., efficiency, cost), life, and color 
temperature. The study will explore different approaches for making 
these disclosures. For instance, we will test respondents'

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perception of energy use disclosures displayed in the form of annual 
energy (operating) cost, luminous efficacy (lumens/watt), and a five-
star rating system. Table 1 below contains the list of variations to be 
tested. Given the small size of light bulb packaging and the associated 
space constraints, the information that can be included on the front of 
the package is limited. Therefore, we are not testing complex scales or 
similar graphical formats that would not fit easily on the front 
display panel. The test label design will also include a ``Lighting 
Facts'' label on the rear or side panel. This ``Lighting Facts'' label 
is similar in appearance to the ``Nutrition Facts'' label required by 
the Food and Drug Administration. The label drafted for this study 
includes a variety of information disclosures such as brightness, life, 
energy use in watts, voltage, luminous efficacy, and energy cost.\8\
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    \8\ A ``Lighting Facts'' label also could contain additional 
information such as voluntary disclosures provided by the 
manufacturer (e.g., minimum starting temperature), and other 
information mandated by state or federal requirements (e.g., 
hazardous content disclosures or information required by the Federal 
Communications Commission). However, because such voluntary 
disclosures and state or federally mandated disclosures will vary by 
manufacturer and lamp technology, we are not including any such 
disclosures on the test labels.
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    As discussed in more detail below, the study will assign 
respondents into groups (i.e., cells), each of which will be assigned a 
different label design (i.e., treatment). The study will use 
approximately six to twelve hypothetical test light bulbs, each with 
different performance characteristics such as brightness, energy use, 
life, and color temperature. While each cell will answer the 
questionnaire while reviewing disclosures for all hypothetical bulbs, 
the label treatment will vary. The underlying questions for every 
respondent, however, will remain the same regardless of which label 
treatment they view.

A. Label Variations

    The study will arrange respondents into 15 to 20 cells of 
approximately 300 respondents each. Respondents in each cell will view 
one of 15 to 20 randomly-assigned treatments. For example, one group 
will answer the questionnaire while viewing labels displaying the 
current disclosure format, while another group will view labels with an 
alternative format.
    Examples of the variables we will use to create the treatments 
appear in Table 1 below, and include:
    Color Temperature: The study will explore three principal ways of 
communicating color temperature on the front package panel. One 
approach involves the use of standard terms to describe color 
temperature such as ``soft white'' and ``daylight.'' The terms used in 
the study are consistent with those in existing industry consensus 
standards and also previous ENERGY STAR efforts.\9\ The second approach 
will include a label that provides information on color temperature 
through six color-coded boxes, similar to a system considered in 
previous consumer research.\10\ The third approach will include a basic 
``Cool-Warm'' scale as illustrated in Example Label C at the end of 
this Notice. In addition to these three approaches on the front package 
panel, the ``Lighting Facts'' label, on the back panel will include 
information about color temperature (e.g., 2700 K).
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    \9\ The color temperature descriptors used in the study are 
based on ANSI C78.376-2001 and draft ``ENERGY STAR Program 
Requirements for CFLs [Compact Fluorescents]'' (Fourth Draft, Feb. 
27, 2007) (http://www.energystar.gov/ia/partners/prod_development/revisions/downloads/cfls/Criteria_CFLs_Version4.0_draft4.pdf). 
The Consortium for Energy Efficiency also suggested such a system in 
their comments. See (http://www.ftc.gov/os/comments/lightbulbs/536795-00011.pdf). The descriptors are as follows: 2700K (``Soft 
White''), 3000K (``Warm White''), 3500K (``White''), 4100K (``Cool 
White''), 5000K (``Natural'') and 6500K (``Daylight'').
    \10\ Leslie, R., and Rea, M., ``A System for Communicating 
Color: What Do Consumers Think,'' Lighting Research Center, 
Rensselaer Polytechnical Institute (http://www.lrc.rpi.edu/programs/lightingTransformation/colorCommunication/pdf/whatDoConsumersThink.pdf). The study was conducted with funding from 
the Department of Energy and Environmental Protection Agency.
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    Five-Star Efficiency Rating: The study will include some label 
designs that display a five-star rating system for energy efficiency as 
suggested by several commenters.\11\ In assigning ratings to the test 
models, the study uses the rating system proposed by the Natural 
Resources Defense Council (NRDC).\12\
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    \11\ For example, see Natural Resources Defense Council comments 
(http://www.ftc.gov/os/comments/lightbulbs/536795-00003.pdf); 
American Council for an Energy-Efficient Economy comments (http://www.ftc.gov/os/comments/lightbulbs/536795-00012.pdf); and Joint 
Comments from Pacific Gas and Electric Company, Southern California 
Edison, Sempra Energy Utilities, and Ecos Consulting comments 
(http://www.ftc.gov/os/comments/lightbulbs/536795-00010.pdf).
    \12\ See NRDC comments (http://www.ftc.gov/os/comments/lightbulbs/536795-00003.pdf). In particular, we have consulted 
NRDC's proposed ``Curved Efficacy Boundaries'' system as illustrated 
in Appendix 1 of its comments. This rating system relies on luminous 
efficacy (lumens/watt) weighted by lumens to create five efficiency 
categories for lamps. For example, under this system, a typical 
incandescent (60-watts, 800 lumens) receives 1 star; a typical 
compact fluorescent (CFL) bulb (13 watts, 800 lumens) receives 4 
stars; and a typical LED (light-emitting diode) bulb (7 watts, 800 
lumens) receives 5 stars.
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    Yearly Energy Cost Information: The front package panel for some 
treatments will include a yearly energy cost estimate based on a 2008 
national average residential electricity cost of 10.8 cents/kWh and a 
usage rate of 3 hours per day.\13\
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    \13\ See 73 FR 11406 (March 3, 2008) (DOE national average 
energy cost figures for 2008). Similarly, yearly bulb life 
information in the study will be based on a usage rate of 3 hours 
per day.
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    Watt-Equivalent Information: Several treatments will include 
information on the rear-panel ``Lighting Facts'' label that provides 
the brightness (in lumens) of typical incandescent bulbs at various 
wattages. This wattage-equivalent numbers are consistent with 
information provided by the ENERGY STAR program.\14\
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    \14\ See ENERGY STAR information at (http://www.energystar.gov/index.cfm?c=cfls.pr_cfl) (e.g., 800 lumens=60-watt incadenscent; 
1110 lumens=75-watt incandescent). The disclosures of such ``watt-
equivalence'' (i.e., the light output expressed by reference to the 
energy use of standard incandescent bulbs) is currently standard 
practice on CFL packages as manufacturers seek to help consumers 
understand the light output of CFLs in the context of an 
incandescent bulb's energy use. Due to space constraints, the study 
will not test such information on the front panel. We anticipate, 
however, that, regardless of any final FTC labeling requirements, 
manufacturers of CFL's will continue to provide information about 
watt-equivalence on their packaging as long as such information is 
useful to consumers.

                  TABLE 1 - Examples of Label Variables
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   Location/
   Descriptor       Variable      Variable      Variable      Variable
------------------------------------------------------------------------
Front Panel-     Light Output   Brightness    ............  ............
 Light Output     in lumens      in lumens
------------------------------------------------------------------------
Front Panel-     Annual energy  Energy        Energy        Energy use
 Energy           costs          efficiency    efficiency    in watts
                                 in lumens/    based on 5-
                                 watt          star rating
------------------------------------------------------------------------
Front Panel-     Life in years  Life in       ............  ............
 Life                            hours
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[[Page 7897]]

 
Front Panel-     Word           Six colored-  Cool-Warm     ............
 Color            descriptor     coded boxes   Scale
Temperature       (e.g.,
                  ``soft
                  white''``day
                  light'')
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Rear Panel       ``Lighting     ``Lighting    No            ............
                  Facts''        Facts''       information
                  label with     label         on rear
                  watt           without       panel
                  equivalent     watt
                  information    equivalent
                                 information
------------------------------------------------------------------------

B. Test Lamp Models

    The study will employ six to twelve different hypothetical lamp 
models, each with different brightness, energy use, life, and color 
temperature characteristics. Several of these hypothetical models will 
be marked as ENERGY STAR products where the hypothetical criteria meet 
the ENERGY STAR criteria. The various characteristics of several 
hypothetical models appear in Table 2. Because we are considering a 
labeling approach that will convey uniform information to consumers 
regardless of the bulb type, the hypothetical labels will not identify 
the technology of the enclosed lamp (e.g., incandescent, compact 
fluorescent, or solid-state). However, the hypothetical characteristics 
(e.g., lumens, energy use, and life) of the test models will be 
consistent with the characteristics of available bulb technologies.

                                        TABLE 2 - Examples of Test Models
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                                                  Yearly     5 Star                            Color     Color
         Lumens     Watts    Life in   Life in    Energy     Energy     ENERGY     Lumens/   Temp (in     Temp
                              hours     years      Cost      Rating      STAR       Watt        K)       (name)
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       870        13        6000      5.5       $1.54      4          Yes        67          2700      Soft
                                                                                                        White
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       870        7         50000     45.7      $0.83      5          Yes        124         2700      Soft
                                                                                                        White
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       820        60        1500      1.4       $7.10      1          No         14          2700      Soft
                                                                                                        White
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       1690       100       750       0.7       $11.83     2          No         17          2700      Soft
                                                                                                        White
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       1750       26        6000      5.5       $3.07      4          Yes        68          2700      Soft
                                                                                                        White
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       1500       23        10000     9.1       $2.72      4          Yes        65          3500      White
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       1199       20        10000     9.1       $2.37      4          No         60          6500      Daylight
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       870        13        6000      5.5       $1.54      4          Yes        67          4100      Cool
                                                                                                        White
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       825        13        6000      5.5       $1.54      4          Yes        63          6500      Daylight
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C. Questionnaire

    All respondents will answer a single series of questions about the 
characteristics of the products described in the labels and their 
preferences pertaining to those products. The questionnaire also will 
seek information about respondents' understanding of different lighting 
concepts such as lumens (i.e., light output) and color temperature 
(i.e., the color characteristics of a light source). Finally, the study 
will seek to gauge whether respondents have preferences regarding how 
certain types of information are communicated.\15\
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    \15\ The study also will contain questions related to 
respondents' experiences with current light bulb labels.
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    Specifically, the issues to be addressed by the questionnaire 
include:
 Usefulness of current labeling: For some treatments, respondents who 
are recent lamp purchasers will answer questions about whether they can 
remember seeing information on light bulb packages and the usefulness 
of that information in their purchasing decisions.
 Brightness (Light Output): Respondents will answer questions about the 
brightness (i.e., light output) of different lamps after viewing 
different package labels.
 Energy Use: Respondents will answer questions about the relative 
energy use of different products after viewing side-by-side comparisons 
of their packaging.
 Color temperature: Respondents will answer questions about the 
correlated color temperature of different lamps (i.e., the light 
emitted by different lamps) after viewing different package labels.
 ENERGY STAR interaction: Respondents will be asked to identify ENERGY 
STAR lamps after comparing different lamp labels.\16\
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    \16\ For the purposes of the study, it will be assumed that high 
efficiency bulbs consistent with LED performance qualify for ENERGY 
STAR even though the ENERGY STAR program has not finalized criteria 
for LED bulbs at this time.
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 Credibility questions: Respondents will be asked whether they find 
certain information on packages believable.
 Willingness to pay questions: Respondents will provide information on 
their willingness to pay for models of varying energy use.
 Quality perception questions: Respondents will be asked questions 
related to possible quality differences between bulbs that use 
different amounts of energy. In particular, the study will explore 
whether respondents incorrectly interpret certain types of energy use 
disclosures

[[Page 7898]]

as indicia of product quality (e.g., workmanship, performance).
 Usefulness of disclosures: Respondents will be asked to gauge the 
usefulness of different types of information (e.g., life, color 
temperature, etc.) in their purchasing decisions.
 Usefulness of disclosure formats: Respondents will answer questions 
about whether they find specific types of disclosures useful (e.g., 
energy cost, five-stars, or lumens/watt).
    The study results will allow the FTC to compare the effectiveness 
of various label approaches. In analyzing the results, the FTC will 
conduct a statistical comparison of respondent answers across different 
test label components. If there are differences in accuracy rates for 
particular label approaches, the direction and statistical significance 
of these differences will aid the FTC in assessing whether one type of 
label design is more comprehensible than alternative designs. The FTC 
will use the study results in conjunction with other information 
generated during this rulemaking proceeding to develop and propose 
changes to existing labeling requirements, if such changes are 
warranted.

III. Estimated Burden Hours\17\
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    \17\ Fractional hours are rounded up to the next whole number.
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    The Commission estimates that the cumulative total burden hours for 
the study will be approximately 2,972 hours. This total estimate is 
derived as follows. First, the FTC plans to conduct a pretest of 25 
persons that will take approximately 30 minutes on average per person, 
resulting in approximately 13 burden hours (25 respondents x 30 
minutes). Second, once the pretest is complete, the FTC and its 
contractor will ask screener questions of approximately 15,000 
respondents in order to obtain the FTC's target sample size of 5,600 
individuals. The FTC estimates that it will take respondents one minute 
to respond to the screener questions. Thus, the total burden related to 
the screener questions will be approximately 250 hours (15,000 
respondents x 1 minute). Finally, those respondents who pass the 
screener questions will answer the entire questionnaire. Using a 
conservative estimate of 6,500 individuals,\18\ the FTC further 
estimates that participating in the study will require an additional 
2,709 hours (6,500 respondents x 25 minutes). Finally, the cost per 
respondent should be negligible. Participation is voluntary and will 
not require start-up, capital, or labor expenditures by respondents.
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    \18\ Although the target sample is 5,600 individuals, the 
procedures used by the contractor may result in the collection of 
information from a slightly higher number of individuals.
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IV. Request for Comment

    As required by Section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3501-
3521, the FTC is providing this opportunity for public comment before 
requesting Office of Management and Budget (``OMB'') approval of 
information collection activities associated with the study. Under the 
PRA, federal agencies must obtain OMB approval 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).
    Specifically, the FTC invites comments on: (1) whether the proposed 
collection of information is 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 collection 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 
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 March 
23, 2009.
BILLING CODE 6750-01-S

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David C. Shonka
Acting General Counsel
[FR Doc. E9-3645 Filed 2-19-09: 8:45 am]
BILLING CODE 6750-01-C