[Federal Register Volume 83, Number 47 (Friday, March 9, 2018)]
[Notices]
[Pages 10482-10484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04825]


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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 information collection requirements described below will 
be submitted to the Office of Management and Budget (OMB) for review, 
as required by the Paperwork Reduction Act (PRA). The FTC seeks public 
comments on its proposal to extend for three years the current PRA 
clearances for information collection requirements contained in the 
rules and regulations under the Fur Products Labeling Act (Fur Rules or 
Rules). The clearance expires on May 31, 2018.

DATES: Comments must be received on or before May 8, 2018.

ADDRESSES: Interested parties may file a comment online or on paper by 
following the instructions in the Request for Comments part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Reduction 
Act: FTC File No. P072108'' on your comment, and file your comment 
online at https://ftcpublic.commentworks.com/ftc/furrulespra1 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 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 copies of the collection 
of information and supporting documentation should be addressed to Jock 
K. Chung, Attorney, Division of Enforcement, Bureau of Consumer 
Protection, Federal Trade Commission, Mail Code CC-9528, 600 
Pennsylvania Ave. NW, Washington, DC 20580, (202) 326-2984.

SUPPLEMENTARY INFORMATION:

Proposed Information Collection Activities

    Under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501-3520, 
federal agencies must get OMB approval for each collection of 
information they conduct, sponsor, or require. ``Collection of 
information'' means agency requests or requirements to 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 PRA clearance for the 
information collection requirements associated with the Commission's 
rules and regulations under the Fur Products Labeling Act (Fur Rules or 
Rules), 16 CFR part 301 (OMB Control Number 3084-0099).\1\ 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. All comments must be received on or before May 8, 2018.
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    \1\ The Commission issued the Fur Rules to implement the Fur 
Products Labeling Act, 15 U.S.C. 69 et seq.
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Burden Estimates

    Staff's burden estimates are based on data from the Department of 
Labor's Bureau of Labor Statistics (BLS) and data or other input from 
the Fur Industry Council of America. The relevant information 
collection requirements in these rules and staff's corresponding burden 
estimates follow. The estimates address the number of hours needed and 
the labor costs incurred to comply with the requirements.
    The Fur Products Labeling Act (Fur Act) \2\ prohibits the 
misbranding and false advertising of fur products. The Fur Rules 
establish disclosure requirements that assist consumers in making 
informed purchasing decisions, and recordkeeping requirements that

[[Page 10483]]

assist the Commission in enforcing the Rules. The Rules also provide a 
procedure for exemption from certain disclosure provisions under the 
Fur Act.
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    \2\ 15 U.S.C. 69 et seq.
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    The Commission expects that recent amendments to the Fur Act have 
increased the cost of complying with the Fur Rules as amended.\3\ 
Congress eliminated the Commission's power to exempt from the labeling 
requirements items where either the cost of the fur trim to the 
manufacturer or the manufacturer's selling price for the finished 
product is less than $150.\4\ As a result, more garments are now 
subject to the Fur Act and Rules, which will impose higher 
recordkeeping and labeling costs on manufacturers, importers, and 
retailers.
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    \3\ Final Rule, 79 FR 30445 (May 28, 2014) (effective date of 
November 19, 2014).
    \4\ Truth in Fur Labeling Act, Public Law 111-313.
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    Estimated annual hours burden: 249,541 hours (64,440 hours for 
recordkeeping + 185,101 hours for disclosure).
    Recordkeeping: The Fur Rules require that retailers, manufacturers, 
processors, and importers of furs and fur products keep certain records 
in addition to those they may keep in the ordinary course of business. 
Staff estimates that 1,230 retailers incur an average recordkeeping 
burden of about 18 hours per year (22,140 hours total); 90 
manufacturers incur an average recordkeeping burden of about 60 hours 
per year (5,400 hours total); and 1,230 importers of furs and fur 
products incur an average recordkeeping burden of 30 hours per year 
(36,900 hours total). The combined recordkeeping burden for the 
industry is approximately 64,440 hours annually.
    Disclosure: Staff estimates that 1,320 respondents (90 
manufacturers + 1,230 retail sellers of fur garments) each require an 
average of 30 hours per year to determine label content (39,600 hours 
total), and an average of ten hours per year to draft and order labels 
(13,200 hours total). Staff estimates that the total number of garments 
subject to the fur labeling requirements annually is approximately 
1,610,000.\5\ Staff estimates that for approximately 50 percent of 
these garments (805,000) labels are attached manually, requiring 
approximately four minutes per garment for a total of 53,667 hours 
annually. For the remaining 805,000, the process of attaching labels is 
semi-automated and requires an average of approximately five seconds 
per item, for a total of 1,118 hours. Thus, the total burden for 
attaching labels is 54,785 hours, and the total burden for labeling 
garments is 107,585 hours per year (39,600 hours to determine label 
content + 13,200 hours to draft and order labels + 54,785 hours to 
attach labels).
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    \5\ The total number of imported fur garments, fur-trimmed 
garments, and fur accessories is estimated to be approximately 
1,400,000 based on industry data. Estimated domestic production 
totals 210,000.
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    Staff estimates that the incremental burden associated with the Fur 
Rules' invoice disclosure requirement, beyond the time that would be 
devoted to preparing invoices in the absence of the Rules, is 
approximately one minute per invoice for garments and thirty seconds 
per invoice for pelts.\6\ The invoice disclosure requirement applies to 
fur garments, which are generally sold individually, and fur pelts, 
which are generally sold in groups of at least 50, on average. Assuming 
invoices are prepared for sales of 1,610,000 garments, the invoice 
disclosure requirement entails an estimated burden of 26,833 hours 
(1,610,000 invoices x one minute). Based on information from the Fur 
Industry Council of America, staff estimates total sales of 8,900,000 
pelts annually. Assuming invoices are prepared for sales of 178,000 
groups (derived from an estimated 8,900,000 pelts / 50) of imported and 
domestic pelts, the invoice disclosure requirement entails an estimated 
total burden of 1,483 hours (178,000 total invoices x thirty seconds). 
Thus, the total burden for invoice disclosures is 28,316 hours.
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    \6\ The invoice disclosure burden for PRA purposes excludes the 
time that respondents would spend for invoicing, apart from the Fur 
Rules, in the ordinary course of business. See 5 CFR 1320.3(b)(2).
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    Staff estimates that the Fur Rules' advertising disclosure 
requirements impose an average burden of 40 hours per year for each of 
the approximately 1,230 domestic fur retailers, or a total of 49,200 
hours.
    Thus, staff estimates the total disclosure burden to be 
approximately 185,101 hours (107,585 hours for labeling + 28,316 hours 
for invoices + 49,200 hours for advertising).
    Estimated annual cost burden: $4,996,243 (solely relating to labor 
costs). The chart below summarizes the total estimated costs.

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                              Task                                  Hourly rate    Burden hours     Labor cost
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Determine label content.........................................          $28.00          39,600      $1,108,800
Draft and order labels..........................................           18.00          13,200         237,600
Attach labels...................................................         7 11.00          54,785         602,635
Invoice disclosures.............................................           18.00          28,316         509,688
Prepare advertising disclosures.................................           28.00          49,200       1,377,600
Recordkeeping...................................................           18.00          64,440       1,159,920
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    Total.......................................................  ..............  ..............       4,996,243
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    Staff believes that there are no current start-up costs or other 
capital costs associated with the Fur Rules. Because the labeling of 
fur products has been an integral part of the manufacturing process for 
decades, manufacturers have in place the capital equipment necessary to 
comply with the Rules' labeling requirements.\8\ Industry sources 
indicate that much of the information required by the Fur Act and Rules 
would be included on the product label even absent the Rules. 
Similarly, invoicing, recordkeeping, and advertising disclosures are 
tasks performed in the ordinary course of business so that covered 
firms would incur no additional capital or other non-labor costs as a 
result of the Act or the Rules.
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    \7\ Per industry sources, most fur labeling is done in the 
United States. This rate is reflective of an average domestic hourly 
wage for such tasks performed in the United States, which is derived 
from recent BLS statistics.
    \8\ Although items previously exempt from the labeling 
requirements must now be labeled regarding their fur content, the 
Textile and Wool Rules, found at 16 CFR 303 and 16 CFR 300, 
respectively, already required many such items to have fiber content 
labels. Hence, manufacturers likely have in place the equipment 
needed to comply with the additional labeling requirements.
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Request for Comments

    You can file a comment online or on paper. May 8, 2018. Write 
``Paperwork Reduction Act: FTC File No. P072108'' 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 website, at https://www.ftc.gov/policy/

[[Page 10484]]

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/furrulespra1 by following the 
instructions on the web based form. If this Notice appears at https://www.regulations.gov, you also may file a comment through that website.
    If you file your comment on paper, write ``Paperwork Reduction Act: 
FTC File No. P072108'' 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 C), 
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, submit your paper comment to the Commission by courier or 
overnight service.
    Because your comment will be placed on the publicly accessible FTC 
website 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 website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC website, 
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 Commission website at https://www.ftc.gov 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 May 8, 2018. 
You can find more information, including routine uses permitted by the 
Privacy Act, in the Commission's privacy policy, at https://www.ftc.gov/site-information/privacy-policy.

David C. Shonka,
Acting General Counsel.
[FR Doc. 2018-04825 Filed 3-8-18; 8:45 am]
BILLING CODE 6750-01-P