[Federal Register Volume 79, Number 182 (Friday, September 19, 2014)]
[Notices]
[Pages 56373-56375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22359]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

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

ACTION: Notice.

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SUMMARY: The FTC plans to conduct a study to examine consumer 
perception of environmental marketing claims. This is the second of two 
notices required under the Paperwork Reduction Act (``PRA'') in which 
the FTC seeks public comments on its proposed consumer research in 
connection with requesting Office of Management and Budget (``OMB'') 
review of, and clearance for, the collection of information discussed 
herein.

DATES: Comments must be received on or before October 20, 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 ``Green Marketing 
Consumer Perception Study, Project No. P954501'' on your comment, and 
file your comment online at https://ftcpublic.commentworks.com/ftc/organicstudypra2, by following the instructions on the web-based form. 
If you prefer to file your comment on paper, mail 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 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: Hampton Newsome, Attorney, 202-326-
2889, or Laura Koss, Attorney, 202-326-2890, Division of Enforcement, 
Bureau of Consumer Protection, Federal Trade Commission.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission's Guides for the Use of Environmental Marketing 
Claims (``Green Guides'' or ``Guides'') (16 CFR part 260) help 
marketers avoid making unfair and deceptive environmental claims.\1\ 
The Guides outline general principles that apply to all environmental 
marketing claims and provide guidance regarding specific categories of 
such claims.\2\ These categories include: General environmental benefit 
claims such as ``environmentally friendly''; degradable claims; 
compostable claims; recyclable claims; recycled content claims; source 
reduction claims; refillable claims; and ``free-of'' claims. The Green 
Guides explain how reasonable consumers are likely to interpret claims 
within these categories. The Guides also describe the basic elements 
necessary to substantiate claims and present options for qualifying 
them to avoid deception.\3\ The illustrative qualifications provide 
``safe harbors'' for marketers who want certainty, but do not represent 
the only permissible approaches. Currently, the Guides do not provide 
specific guidance regarding ``organic'' claims.
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    \1\ The Commission issued the Green Guides in 1992 (57 FR 36363) 
and subsequently revised them in 1996 (61 FR 53311), 1998 (63 FR 
24240), and 2012 (77 FR 62121).
    \2\ 15 U.S.C. 45(a). The Commission's industry guides, such as 
the Green Guides, are administrative interpretations of the 
application of Section 5 of the FTC Act, 15 U.S.C. 45(a), to 
advertising claims. The Commission issues industry guides to provide 
guidance for the public to conform with legal requirements. These 
guides provide the basis for voluntary abandonment of unlawful 
practices by industry members. 16 CFR part 17. The Guides do not 
have the force and effect of law and are not independently 
enforceable. However, the Commission can take action under the FTC 
Act if a business makes environmental marketing claims inconsistent 
with the Guides. In any such enforcement action, the Commission must 
prove that the act or practice at issue is unfair or deceptive.
    \3\ The Guides do not, however, establish standards for 
environmental performance or prescribe testing protocols.
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II. The FTC's Proposed Study

A. Study Description

    The FTC plans to conduct Internet-based research to explore 
consumer perceptions of certain environmental marketing claims, such as 
``organic'' and ``recycled content,'' to help the Commission better 
advise marketers on

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how to comply with the law. The proposed study will compare participant 
responses regarding the meaning of such claims across different 
products. Specifically, using a treatment-effect methodology, the study 
will examine whether respondents viewing organic and recycled content 
claims believe that these products have particular environmental 
benefits or attributes depending on the context in which they are 
presented. For ``recycled content'' claims, the study will present 
questions about products produced with materials sourced under 
different scenarios and compare participant responses to those 
scenarios. Those sources include products recycled by consumers, and 
those from manufacturing other products and reprocessed to varying 
degrees.
    The study will also examine how respondents understand the term 
``organic'' for claims involving products not covered by the National 
Organic Program (NOP) (e.g., mattresses and dry cleaning).\4\ The FTC 
staff will use the study results, along with other information such as 
public comments, in considering whether to recommend that the 
Commission propose revisions to the Green Guides.
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    \4\ The NOP is administered by the U.S. Department of 
Agriculture (USDA).
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    Having considered the costs and benefits of various data collection 
methods, the FTC has concluded that an Internet panel with nationwide 
coverage will provide the most efficient way to meet the research 
objectives. We will draw participants from an Internet panel maintained 
by a commercial firm. All participation will be voluntary. While the 
results will not be generalizable to the U.S. population, they will 
provide useful insights into consumer understanding of the claims being 
considered, particularly when comparing the responses to various 
scenarios to determine how consumers may view those scenarios 
differently. The FTC has contracted with IPSOS, a consumer research 
firm with substantial experience assessing consumer communications via 
the Internet and other alternative protocols, to administer the 
Internet study.

B. PRA Burden Analysis

    Staff is revising certain prior assumptions \5\ based on a more 
precise target population for completing the questionnaire and further 
consultation with its contractor regarding the anticipated response 
rate. IPSOS anticipates that 10 percent of those invited to participate 
in the study will complete the questionnaire. Accordingly, IPSOS might 
contact as many as 80,000 persons to achieve the study's goal of 
surveying 8,000 respondents.
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    \5\ See 79 FR 16330 (Mar. 25, 2014).
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    As before, staff estimates that respondents to the Internet 
questionnaire will require, on average, approximately 20 minutes to 
complete it. Staff will pretest the questionnaire with approximately 
100 respondents to ensure that all questions are easily understood. The 
pretest will total approximately 38 hours cumulatively (100 respondents 
x 23 minutes each), allowing for an extra three minutes per respondent 
for questions.
    For the full study, FTC staff now accounts in its estimates both 
for those who will complete the questionnaire and those who will not. 
Cumulatively, those completing it will require approximately 2,667 
hours (8,000 persons x 20 minutes each). Staff projects that those who 
will prematurely end the process will do so in under one minute; thus 
taking 1,200 hours, in total. [(80,000 total contacts--8,000 persons 
completing the questionnaire) x 1 minute each)]. Cumulatively, then, 
complete and partial surveying of 80,000 persons will total about 3,867 
hours.
    For the pretest, an additional 900 persons will prematurely end the 
process, which, cumulatively, totals an additional 15 hours.
    Overall burden for the pretest and questionnaire would thus be 
3,920 hours. The cost per respondent should be negligible. 
Participation is voluntary, and will not require any labor expenditures 
by respondents. There are no capital, start-up, operation, maintenance, 
or other similar costs to the respondents.

III. Paperwork Reduction Act

    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.\6\ As required by section 
3506(c)(2) of the PRA, the FTC published a notice seeking public 
comment on the proposed collections of information. See 79 FR 16330 
(Mar. 25, 2014). In response, the Commission received three 
comments.\7\ Section IV below sets forth FTC staff's analysis of these 
comments.
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    \6\ 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    \7\ The Commission received comments from the Organic Trade 
Association (#562-00008); Iberdrola Renewables 
(#562-00007); and the Natural Marketing Institute (NMI) 
(#562-00005), available at http://www.ftc.gov/policy/public-comments/initiative-562.
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    Pursuant to the OMB regulations, 5 CFR Part 1320, that implement 
the PRA, the Commission is providing this second opportunity for public 
comment. All comments should be filed as prescribed in the Request for 
Comment part of the SUPPLEMENTARY INFORMATION section below, and must 
be received on or before October 20, 2014.

IV. Analysis of Comments Received

    As noted above, the Commission received three comments regarding 
the proposed collections of information. Each comment is discussed 
below:
    Organic Trade Association: The Organic Trade Association (OTA) 
provided five recommendations for the study. First, it urged the FTC to 
refrain from conducting research on products already covered by the 
USDA's NOP. Second, it suggested that the FTC explore ``consumer trust 
in organic labeling'' related to products outside of the NOP's 
coverage. Third, it recommended that the FTC draft an enforcement 
policy related to such products. Fourth, it asked the FTC to monitor 
and take enforcement action against misleading ``organic'' claims for 
products not subject to USDA authority. Finally, OTA suggested that the 
FTC consider OTA's own research projects related to organic issues, the 
U.S. Families' Organic Attitudes and Beliefs Study and OTA's Organic 
Industry Survey, updated versions of which will be available soon.
    Consistent with OTA's recommendations, the FTC staff plans to focus 
only on organic claims involving products not clearly subject to 
current USDA requirements, such as dry cleaning or mattresses. In 
implementing this approach, the study will include several questions 
asking how respondents believe ``organic'' claims to be regulated, thus 
exploring their understanding of such claims. In addition, as explained 
earlier in this Notice, the FTC staff will use the results of the 
research, as well as other available studies, to determine whether to 
recommend development of further guidance related to such claims. The 
results will also help the FTC staff in considering appropriate 
enforcement against misleading claims for products not subject to NOP 
authority.
    National Marketing Institute: NMI encouraged the FTC to consider 
NMI's research services for the study. NMI explained that it has 
conducted consumer surveys for several years on a

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variety of environmental claims including consumer packaging and 
recycling habits, as well as consumer attitudes, trust, and purchasing 
behaviors related to organic products. NMI contended that it could 
provide information about cost, timing, and specific participation 
procedures. It noted that data results are typically available five 
weeks after collection.
    As explained in this Notice, the FTC has already contracted through 
the normal competively bid process with a firm experienced in such 
consumer studies to field this research project. This contracting 
process is complete.
    Iberdrola Renewables: Iberdrola Renewables expressed general 
support for the overall objective of the Green Guides--to ensure the 
``honesty, accuracy, and integrity of environmental marketing claims.''

V. Request for Comment

    Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) Whether the reporting requirements are necessary, 
including whether the information will be practically useful; (2) the 
accuracy of our burden estimates, including whether the methodology and 
assumptions used are valid; (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.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before October 20, 
2014. Write ``Green Marketing Consumer Perception Study, Project No. 
P954501'' 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). In particular, do 
not include competitively sensitive information such as costs, sales 
statistics, inventories, formulas, patterns, devices, manufacturing 
processes, or customer names.
    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).\8\ Your comment will be kept 
confidential only if the FTC General Counsel grants your request in 
accordance with the law and the public interest.
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    \8\ 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. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/organicstudypra2, 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 prefer to file your comment on paper, mail 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 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.
    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) 395-5806.
    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 October 20, 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. 2014-22359 Filed 9-18-14; 8:45 am]
BILLING CODE 6750-01-P