[Federal Register Volume 76, Number 223 (Friday, November 18, 2011)]
[Notices]
[Pages 71563-71564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29833]


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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 FTC intends to ask the Office of Management and Budget 
(``OMB'') to extend through November 30, 2014, the current Paperwork 
Reduction Act (``PRA'') clearance for the information collection 
requirements in Use of Prenotification Negative Option Plans 
(``Negative Option Rule'' or ``Rule''). That clearance expires on 
November 30, 2011.

DATES: Comments must be submitted by December 19, 2011.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Negative Option Rule: 
FTC File No. P064202'' on your comment, and file your comment online at 
https://ftcpublic.commentworks.com/ftc/NegOptionPRA2 by following the 
instructions on the Web-based form. If you prefer to file your comment 
on paper, mail or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex 
J), 600 Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Edwin Rodriguez, Attorney, Division of 
Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 
600 Pennsylvania Avenue NW., M-8102B, Washington, DC 20580, (202) 326-
3147.

SUPPLEMENTARY INFORMATION:
    Title: Negative Option Rule, 16 CFR Part 425.
    OMB Control Number: 3084-0104.
    Type of Review: Extension of currently approved collection.
    Abstract: The Negative Option Rule governs the operation of 
prenotification subscription plans. Under these plans, sellers notify 
subscribers that they will automatically ship merchandise, such as 
books, compact discs, or tapes, and bill subscribers for the 
merchandise if the subscribers do not expressly reject the merchandise 
beforehand within a prescribed time. The Rule protects consumers by: 
(a) Requiring that promotional materials disclose the terms of 
membership clearly and conspicuously; and (b) establishing procedures 
for the administration of such ``negative option'' plans.
    On August 4, 2011, the Commission sought comment on the information 
collection requirements associated with the Negative Option Rule. 76 FR 
47186. No comments were received. Pursuant to the OMB regulations, 5 
CFR Part 1320, that implement the PRA, 44 U.S.C. 3501 et seq., the FTC 
is providing a second opportunity for the public to comment while 
seeking OMB approval to renew the pre-existing clearance for the Rule.
    Estimated Annual Burden: 3,875 hours.
    Estimated Number of Respondents, Estimated Average Burden per Year 
per Respondent:
    (a) 45 existing clubs each require annually about 75 hours to 
comply with the Rule's disclosure requirements, for a total of 3,375 
hours (45 clubs x 75 hours);
    (b) 5 new clubs come into being each year, requiring approximately 
100 hours to comply with the Rule, including start up-time, for a total 
of 500 hours (5 clubs x 100 hours).
    Estimated Annual Labor Cost: $167,125.\1\
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    \1\ The calculations underlying this estimate were detailed in 
the August 4, 2011, related Federal Register Notice. See 76 FR at 
47187. An error in the recap, however, showed the total as $171,825; 
the ensuing calculations in that notice, however, correctly showed 
the total as $167,125.
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    Estimated Capital or Other Non-Labor Cost: Minimal.\2\
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    \2\ Because the Rule has been in effect since 1974, the vast 
majority of the negative option clubs have no current start-up 
costs. For the few new clubs that enter the market each year, the 
costs associated with the Rule's disclosure requirements, beyond the 
additional labor costs discussed above, are minimal. Negative option 
clubs already have access to the ordinary office equipment necessary 
to achieve compliance with the Rule. Similarly, the Rule imposes 
few, if any, printing and distribution costs. The required 
disclosures generally constitute only a small addition to the 
advertising for negative option plans. Because printing and 
distribution expenditures are incurred to market the product 
regardless of the Rule, adding the required disclosures results in 
marginal incremental expense.
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Request for Comment

    You can file a comment online or on paper. For the FTC to consider 
your comment, we must receive it on or before December 19, 2011. Write 
``Negative Option Rule: FTC File No. P064202'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including, to the extent practicable, 
on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to 
remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone'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. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which is obtained from any person and which is 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). If you want 
the Commission to give your comment confidential treatment, you must 
file it in paper form, with a request for confidential treatment, and 
you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 
4.9(c).\3\ Your comment will be kept confidential only if the FTC 
General Counsel, in his or her sole discretion, grants your request in 
accordance with the law and the public interest.
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    \3\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your

[[Page 71564]]

comments online, or to send them to the Commission by courier or 
overnight service. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/NegOptionPRA2 by following the instructions on the Web-based form. 
If this Notice appears at http://www.regulations.gov/#!home, you also 
may file a comment through that Web site.
    If you file your comment on paper, write ``Negative Option Rule: 
FTC File No. P064202'' on your comment and on the envelope, and mail or 
deliver it to the following address: Federal Trade Commission, Office 
of the Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that 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 on or before December 19, 2011. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
    Comments on the information collection requirements subject to 
review under the PRA should additionally be submitted to OMB. If sent 
by U.S. mail, they should be addressed to Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for the Federal Trade Commission, New Executive Office 
Building, Docket Library, Room 10102, 725 17th Street NW., Washington, 
DC 20503. Comments sent to OMB by U.S. postal mail, however, are 
subject to delays due to heightened security precautions. Thus, 
comments instead should be sent by facsimile to (202) 395-5167.

David C. Shonka,
Acting General Counsel.
[FR Doc. 2011-29833 Filed 11-17-11; 8:45 am]
BILLING CODE 6750-01-P