[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1229-1231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00180]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: The Federal Trade Commission (FTC or Commission) is seeking 
public comment on its proposal to extend an additional three years the 
Office of Management and Budget clearance for information collection 
requirements of its the FTC's Rule Governing Pre-Sale Availability of 
Written Warranty Terms. The current clearance expires on May 31, 2023.

DATES: Comments must be received on or before March 10, 2023.

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 Comment: FTC File No. P072108'' on your comment, and file your 
comment online at https://www.regulations.gov 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: Laura Basford, Attorney, Division of 
Marketing Practices, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202) 
326-2343.

SUPPLEMENTARY INFORMATION: 
    Title: Pre-Sale Availability of Written Warranty Terms (Pre-Sale 
Availability Rule or Rule), 16 Part CFR 702.
    OMB Control Number: 3084-0112.
    Type of Review: Extension of a currently approved collection.
    Background: The Pre-Sale Availability Rule, 16 CFR part 702, is one 
of three rules \1\ that the FTC issued as required by the Magnuson Moss 
Warranty Act, 15 U.S.C. 2301 et seq. (Warranty Act or Act).\2\ The Pre-
Sale Availability Rule requires sellers and warrantors to make the text 
of any written warranty on a consumer product costing more than $15 
available to the consumer before sale. Among other things, the Rule 
requires sellers to make the text of the warranty readily available 
either by (1) displaying it in close proximity to the product or (2) 
furnishing it on request and posting signs in prominent locations 
advising consumers that the warranty is available. The Rule requires 
warrantors to provide materials to enable sellers to comply with the 
Rule's requirements and also sets out the methods by which warranty 
information can be made available before the sale if the product is 
sold through catalogs, mail order, or door to door sales. In addition, 
in 2016, the FTC revised the Rule to allow warrantors to post warranty 
terms on internet websites if they also provide a non-internet based 
method for consumers to obtain the warranty terms and satisfy certain 
other conditions.\3\ The revised Rule also allows certain sellers to 
display warranty terms pre-sale in an electronic format if the 
warrantor has used the online method of disseminating warranty terms.
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    \1\ The other two rules relate to the information that must 
appear in a written warranty on a consumer product costing more than 
$15 if a warranty is offered and minimum standards for informal 
dispute settlement mechanisms that are incorporated into a written 
warranty.
    \2\ 40 FR 60168 (Dec. 31, 1975).
    \3\ 81 FR 63664-70 (Sept. 15, 2016).
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    As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C. 
3506(c)(2)(A), 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 Pre-Sale 
Availability Rule.

Burden Statement

    Total annual hours burden: 2,764,837.
    In its 2019 submission to OMB, FTC staff estimated that the 
information collection burden of making the disclosures required by the 
Pre-sale Availability Rule was approximately 3,069,314 hours per year. 
Although there has been no change in the Rule's information collection 
requirements since 2019, staff has adjusted downward its previous 
estimate of the number of manufacturers subject to the Rule based on 
recent Census data. Based on that data, staff now estimates that there 
are approximately 27,094 manufacturers subject to the Rule.\4\ In 
addition, staff has adjusted downward its previous estimate of the 
number of retailers subject to the Rule based on recent Census data. 
There are now an estimated 523,164 retailers impacted by the Rule.\5\ 
These estimates likely overstate the number of manufacturers and 
retailers because some of the included manufacturers and retailers may 
make and sell products that are not covered by the Rule.
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    \4\ The 2019 estimate was that 31,029 manufacturers were subject 
to the Rule.
    \5\ The 2019 estimate was that 575,177 retailers were subject to 
the Rule.
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    In prior years, staff categorized retailers and manufacturers based 
on their size, and applied different time estimates for complying with 
the Rule based on whether the entity was large or small. This year, 
staff instead applies a single time estimate to all retailers and 
another to all manufacturers, regardless of size. These estimates are 
intended to be an average time burden, reflecting the typical burden 
across the full spectrum of retailers and manufacturers, and taking 
into account the number of large and small entities from prior years. 
This approach is consistent with how staff have estimated the time 
burden for the Warranty Rule, 16 CFR part 701, another rule the FTC 
issued under the Act.
    Staff estimates that retailers spend, on average, 5 hours per year 
to comply with the Rule. Accordingly, the total annual burden for 
retailers is approximately 2,615,820 hours (523,164 retailers x 5 
burden hours). Staff estimates that manufacturers spend an average of 
5.5 hours per year to comply with the Rule. Accordingly, the total 
annual burden incurred by manufacturers is approximately 149,017 hours 
(27,094 manufacturers x 5.5 hours).
    Thus, the total annual burden for all covered entities is 
approximately 2,764,837 hours (2,615,820 hours for retailers + 149,017 
hours for manufacturers).
    Total annual labor cost: $67,738,531.
    The work required to comply with the Pre-Sale Availability Rule 
entails a mix of clerical work and work performed by sales associates. 
Staff estimates that half of the total burden hours would likely be 
performed by sales associates. At the manufacturing level, this work 
would entail ensuring that the written warranty is available for every 
warranted consumer product. At the retail level, this work would entail 
ensuring that the written warranty is made available to the consumer 
prior to sale. The remaining half of the work required to comply with 
the Pre-Sale Availability Rule is clerical in nature, e.g., shipping or 
otherwise providing copies of manufacturer warranties to retailers, 
along with retailer maintenance of the warranties. Applying a sales 
associate wage rate of $26/hour to half of the burden hours and a 
clerical wage rate of $23/hour to half of the burden hours, the total 
annual labor cost burden is approximately $67,738,531 (1,382,419 hours 
x $26 per hour) + (1,382,419 hours x $23 per hour).\6\
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    \6\ The wage rates are derived from occupational data found in 
the National Occupational Employment and Wage Estimates--May 2021, 
U.S. Bureau of Labor Statistics, released March 31, 2022: https://www.bls.gov/oes/current/oes_nat.htm.
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    Total annual capital or other non-labor costs: De minimis.

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    The vast majority of retailers and warrantors already have 
developed systems to provide the information the Rule requires. 
Compliance by retailers typically entails keeping warranties on file 
electronically, in binders or otherwise, and posting an inexpensive 
sign indicating warranty availability. Warrantor compliance under the 
2016 amendments entails providing retailers, together with the 
warranted good, a copy of the warranty or the address of the 
warrantor's internet website where the consumer can review and obtain 
the warranty terms, along with the contact information where the 
consumer may use a non-internet based method to obtain a free copy of 
the warranty terms. Commission staff believes that, in light of the 
amendments, annual capital or other non-labor costs will remain de 
minimis.

Request for Comments

    Pursuant to Section 3506(c)(2)(A) of the PRA, 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 maintaining records and providing disclosures to 
consumers. All comments must be received on or before March 10, 2023.
    You can file a comment online or on paper. For the FTC to consider 
your comment, we must receive it on or before March 10, 2023. Write 
``Paperwork Reduction Act Comment: 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 the https://www.regulations.gov website.
    Due to the public health emergency in response to the COVID-19 
outbreak and the agency's heightened security screening, postal mail 
addressed to the Commission will be subject to delay. We encourage you 
to submit your comments online through the https://www.regulations.gov 
website.
    If you prefer to file your comment on paper, write ``Paperwork 
Reduction Act Comment: 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 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.
    Because your comment will become publicly available at https://www.regulations.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 publicly at www.regulations.gov, we cannot redact or remove 
your comment 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.
    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 March 10, 
2023. 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.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-00180 Filed 1-6-23; 8:45 am]
BILLING CODE 6750-01-P