[Federal Register Volume 79, Number 142 (Thursday, July 24, 2014)]
[Notices]
[Pages 43047-43049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17486]


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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 FTC intends to ask the Office of Management and Budget 
(``OMB'') to extend for an additional three years the current Paperwork 
Reduction Act (``PRA'') clearance for information collection 
requirements contained in its Use of Prenotification Negative Option 
Plans (``Negative Option Rule'' or ``Rule''). That clearance expires on 
December 31, 2014.

DATES: Comments must be submitted by September 22, 2014.

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/NegOptionPRA 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, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex J), Washington, DC 20580, or deliver 
your comment to the

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following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
J), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Robert M. Frisby, Attorney, Division of 
Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 
600 Pennsylvania Avenue, NW., CC-9528, Washington, DC 20580, (202) 326-
2098.

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3521, 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 extend the existing clearance for the 
information collection requirements contained in the Negative Option 
Rule, 16 CFR Part 425 (OMB Control Number 3084-0104).
    The FTC invites comments on: (1) Whether the proposed 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; (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.
    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.

Burden Statement

    Estimated annual hours burden: 3,125 hours.
    Based on industry input, staff estimates that approximately 35 
existing clubs each require annually about 75 hours to comply with the 
Rule's disclosure requirements, for a total of 2,625 hours (35 clubs x 
75 hours). These clubs should be familiar with the Rule, which has been 
in effect since 1974, with the result that the burden of compliance has 
declined over time. Moreover, a substantial portion of the existing 
clubs likely would make these disclosures absent the Rule because they 
have helped foster long-term relationships with consumers.
    Approximately 5 new clubs come into being each year. These clubs 
require approximately 100 hours to comply with the Rule, including 
start up-time. Thus, the cumulative PRA burden for new clubs is about 
500 hours (5 clubs x 100 hours). Combined with the estimated burden for 
established clubs, the total burden is 3,125 hours.
    Estimated annual cost burden: $153,950 (solely related to labor 
costs).
    Based on recent data from the Bureau of Labor Statistics,\1\ the 
mean hourly wage for advertising managers is approximately $54 per 
hour; compensation for office and administrative support personnel is 
approximately $17 per hour. Assuming that managers perform the bulk of 
the work, and clerical personnel perform associated tasks (e.g., 
placing advertisements and responding to inquiries about offerings or 
prices), the total cost to the industry for the Rule's information 
collection requirements would be approximately $153,950 [(65 hours 
managerial time x 35 existing clubs x $54 per hour) + (10 hours 
clerical time x 35 existing clubs x $17 per hour) + (90 hours 
managerial time x 5 new clubs x $54 per hour) + (10 hours clerical time 
x 5 new clubs x $17)].
    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 de minimis. Negative option clubs already 
have access to the ordinary office equipment necessary to comply 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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    \1\ Occupational Employment And Wages--May 2013, Table 1, at 
http://www.bls.gov/news.release/pdf/ocwage.pdf.
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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 September 22, 2014. 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).\2\ Your comment will be kept confidential only if the FTC 
General Counsel grants your request in

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accordance with the law and the public interest.
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    \2\ 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 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/NegOptionPRA 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, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex J), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW., 5th Floor, Suite 5610 (Annex J), Washington, DC 
20024. If possible, submit your paper comment to the Commission by 
courier or overnight service.
    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 September 22, 
2014. 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.

David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2014-17486 Filed 7-23-14; 8:45 am]
BILLING CODE 6750-01-P