[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)]
[Notices]
[Pages 32816-32818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14976]


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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 proposes to conduct a study to examine consumer 
perception of class action notices (``Notice Study''). This is the 
second of two notices required under the Paperwork Reduction Act 
(``PRA'') seeking public comments on proposed research before 
requesting Office of Management and Budget (``OMB'') review and 
clearance of the collection of information discussed herein.

DATES: Comments must be received on or before August 17, 2017.

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 ``Class Action Notice 
Consumer Perception Study, Project No. P024210'' on your comment, and 
file your comment online at https://ftcpublic.commentworks.com/ftc/classactionnoticepra2, by following the instructions on the web-based 
form. If you prefer to file your comment on paper, write ``Class Action 
Notice Consumer Perception Study, Project No.

[[Page 32817]]

P024210'' on your comment and on the envelope, and 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, Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Robin Moore and Colin MacDonald, 
Attorneys, 202-326-2167 (Moore) or 202-326-3192 (MacDonald), Division 
of Enforcement, Bureau of Consumer Protection, Federal Trade 
Commission.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Class Action Fairness Project strives to protect injured 
consumers from settlements that provide them with little to no benefit 
and to protect businesses from the incentives such settlements may 
create for the filing of frivolous lawsuits. As part of this program, 
the FTC monitors class actions and files amicus briefs or intervenes in 
appropriate cases; \1\ coordinates with state, federal, and private 
groups to advise and seek suggestions on matters that merit FTC 
attention; and monitors the progress of legislation and class action 
rule changes.
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    \1\ See, e.g., FTC's Mem. of Law as Amicus Curiae, Nwabueze v. 
AT&T, Inc., 3:09-cv-1529 (N.D. Cal. Aug. 30, 2013), available at 
https://www.ftc.gov/sites/default/files/documents/amicus_briefs/nwabueze-v.att-inc./130830nwabuezeamicus.pdf; FTC's Mem. of Law as 
Amicus Curiae, White v. EDebitPay, LLC, 2:11-cv-06738 (C.D. Cal. 
Aug. 9, 2013), available at https://www.ftc.gov/sites/default/files/documents/amicus_briefs/anita-white-et-al.v.edebitpay-l.l.c.et-al.no.211-cv-06738-cbm-ffm-c.d.cal-august-9-2013/130809edebitpayamicusbrief.pdf; Mot. of FTC for Leave to File Brief 
as Amicus Curiae, Moore v. Verizon Commc'ns, Inc., 4:09-cv-08123 
(N.D. Cal. Aug. 17, 2012), available at https://www.ftc.gov/sites/default/files/documents/amicus_briefs/moore-v.verizon-communications-inc./120817mooreverizonamicusbrief.pdf.
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    On May 5, 2015, the FTC published the first notice regarding this 
study in the Federal Register. See 80 FR 25676 (May 5, 2015).\2\
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    \2\ The FTC announced the instant study in May 2015. However, in 
light of the Advisory Committee on Civil Rules' (``Advisory 
Committee'') consideration of explicitly including electronic notice 
as permissible under Rule 23(c)(2) of the Federal Rules of Civil 
Procedure, FTC staff determined that it would be appropriate to 
assess the prevalence of electronic notification and to consider 
issues raised by commenters on the Advisory Committee's proposal. 
See e.g, Letter from Todd B. Hilsee to The Advisory Committee on 
Civil Rules of the Judicial Conference of the United States 
(undated), available at http://www.uscourts.gov/file/19653/download. 
As part of that process, FTC staff reviewed class action 
settlements, researched additional issues, and consulted with class 
action administrators. In addition, in November 2016, pursuant to 
Section 6(b) of the FTC Act, the Commission issued orders seeking 
data, which further informed FTC staff's analysis. See Press 
Release, Fed. Trade Comm'n, FTC Seeks to Study Class Action 
Settlements (Nov. 14, 2016), available at https://www.ftc.gov/news-events/press-releases/2016/11/ftc-seeks-study-class-action-settlements. FTC staff will also use data obtained through the 6(b) 
Orders to inform a second study, the Deciding Factors Study. See 80 
FR 25677, 25678 (May 5, 2015). Based on marketplace trends 
identified through FTC's staff's research and data analysis, the 
study will focus on notices sent to individual consumers via email.
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II. The FTC's Proposed Study

    To further the above-noted goals, the FTC staff proposes to conduct 
an Internet-based consumer research study to explore consumer 
perceptions of class action notices. Based on marketplace trends 
identified through review of class action settlements and discussions 
with notice administrators, the study will focus on notices sent to 
individual consumers via email. Using a treatment-effect methodology, 
the study will examine whether variables such as the email address of 
the sender and subject line impact respondents' perception of and 
willingness to open an email notification. The proposed study will also 
gauge consumer comprehension of the options conveyed by the notice, 
including the process for participating in the settlement and the 
implications of consumers' choices. In the May 5, 2015, Federal 
Register Notice, the Commission also proposed to study whether 
respondents understood the implications for opting out of a settlement. 
However, to avoid duplication of the Commission's Deciding Factors 
Study, the Commission has determined not to examine this issue in the 
Notice Study.\3\ Notices used in the study are based on notices sent to 
class members in various nationwide class action settlements and 
streamlined versions designed by the FTC staff. We plan to use the 
study results, along with other information such as public comments, to 
guide the FTC's Class Action Fairness Project.
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    \3\ The Commission has determined that the opt-out issue is more 
appropriately addressed in the Deciding Factors Study, which will 
examine factors that influence class members' decision to 
participate in settlement, opt out of the settlement, or object to 
the settlement. See 80 FR 25677, 25678 (May 5, 2015).
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    Having considered the costs and benefits of various data collection 
methods, FTC staff has concluded that an Internet panel with nationwide 
coverage will provide the most efficient way to collect data to meet 
the research objectives within a feasible budget. Thus, the Commission 
proposes to collect responses from a broad spectrum of the U.S. adult 
population. Participants will be drawn from an Internet panel 
maintained by a commercial firm that operates the panel. All 
participation will be voluntary. While the results will not be 
generalizable to the U.S. population, comparing the responses to 
various treatments should provide useful insight into consumer 
understanding of the claims being considered.\4\ The FTC staff has 
contracted with Great Lakes Marketing, a consumer research firm with 
substantial experience assessing consumer communications via the 
Internet and other alternative protocols, to administer the Internet 
study.
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    \4\ See Fed. Trade Comm'n, Appliance Labeling Rule: Proposed 
Rule, 72 FR 6836, 6838-39, 6841, 6843-51, 6854 (Feb. 13, 2007) 
(codified at 16 CFR part 305) (discussing results of consumer 
research involving treatment groups).
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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.\5\ As required by Section 
3506(c)(2) of the PRA, the FTC published a notice seeking public 
comment 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. See 80 FR 25676 
(May 5, 2015). In response, the Commission received two comments, 
neither of which substantively commented on the FTC's proposed 
study.\6\ Each comment is discussed in Section IV below.
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    \5\ 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    \6\ The Commission received comments from the Class Action 
Trolls, Inc. (#615-00004) and one individual commenter (#615-00005), 
available at http://www.ftc.gov/policy/public-comments/initiative-615.
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    Pursuant to Section 3507 of the PRA and 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 August 17, 
2017.
    As before, staff estimates that respondents will require, on 
average, approximately 20 minutes to complete

[[Page 32818]]

the Internet questionnaire. Staff will also pretest the questionnaire 
with approximately 100 respondents to ensure that all questions are 
easily understood. Allowing for an extra three minutes for questions 
unique to the pretest, staff estimates that the pretest will take 
approximately 23 minutes. Cumulatively, those completing the 
questionnaire will require approximately 2,667 hours (8,000 persons x 
20 minutes each), and those completing the pretest will require 
approximately 38 hours (100 respondents x 23 minutes each).
    Staff is revising its overall estimate of burden to include those 
responders who do not complete the questionnaire and pretest. Staff 
projects that those who will prematurely end the process will do so in 
less than one minute. The staff anticipates that 60 percent of those 
invited to participate in the study will complete the questionnaire. 
Accordingly, the contractor might contact as many as 13,333 people to 
achieve the study's goal of surveying 8,000 respondents, which would 
result in an additional 89 hours total. [(13,333 total contacts--8,000 
people completing the questionnaire) x 1 minute each]. For the pretest, 
the staff estimates that an additional 67 people will prematurely end 
the process, which totals an additional 1 hour [(167 total contacts--
100 persons completing the pretest) x 1 minute each]. Cumulatively, 
complete and partial surveying of 13,333 people will total about 2,756 
hours and complete and partial pretesting will total 39 hours, for an 
overall total of 2,795 hours. The cost per respondent should be 
negligible. Participation will not require start-up, capital, or labor 
expenditures.

IV. Analysis of Comments Received

    As noted above, the Commission received two comments regarding the 
proposed collections of information. Class Action Trolls, Inc. 
requested updates as information becomes available on issues related to 
this study. Information will be made public as appropriate on FTC.gov 
and through other means. The Individual Commenter expressed support for 
the FTC's work in this area.

V. Request for Comment

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before August 17, 2017. 
Write ``Class Action Notice Consumer Perception Study, Project No. 
P024210'' 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 https://www.ftc.gov/policy/public-comments.
    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/classactionnoticepra2, 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 ``Class Action Notice 
Consumer Perception Study, Project No. P024210'' on your comment and on 
the envelope, and 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, Washington, DC 20024. If possible, please submit your paper 
comment to the Commission by courier or overnight service.
    Comments on any proposed 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 can also be sent via email to 
[email protected].
    Because your comment will be placed on the publicly accessible FTC 
Web site at https://www.ftc.gov/, you are solely responsible for making 
sure that your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else'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, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
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)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    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). 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). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the public FTC Web site--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC Web site, 
unless you submit a confidentiality request that meets the requirements 
for such treatment under FTC Rule 4.9(c), and the General Counsel 
grants that request.
    Visit the FTC Web site to read this Notice. 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 August 17, 2017. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

    By direction of the Commission.
Donald S. Clark,
 Secretary.
[FR Doc. 2017-14976 Filed 7-17-17; 8:45 am]
BILLING CODE 6750-01-P