[Federal Register Volume 89, Number 59 (Tuesday, March 26, 2024)]
[Notices]
[Pages 20967-20970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06350]


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FEDERAL TRADE COMMISSION


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

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') has 
clearance from the Office of Management and Budget (``OMB'') to send 
information requests, pursuant to compulsory process, to a combined ten 
or more of the largest cigarette manufacturers and smokeless tobacco 
manufacturers. The information sought includes, among other things, 
data on the manufacturers' annual sales and marketing expenditures for 
cigarettes, smokeless tobacco products, and electronic devices used to 
heat non-combusted cigarettes, and sales of tobacco-free nicotine 
lozenges and pouches. The current OMB clearance expires on August 31, 
2024. The Commission plans to ask OMB for renewed three-year clearance 
to collect this information, and to modify its existing clearance to 
allow for the

[[Page 20968]]

collection of additional information concerning annual marketing 
expenditures for tobacco-free nicotine lozenges and pouches by 
smokeless tobacco manufacturers or related companies.

DATES: Comments must be filed by May 28, 2024.

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 ``Tobacco Reports; PRA 
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.

FOR FURTHER INFORMATION CONTACT: Michael Ostheimer, Division of 
Advertising Practices, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW, Mailstop CC-10507, Washington, 
DC 20580, (202) 326-2699.

SUPPLEMENTARY INFORMATION: 
    Title: FTC Cigarette and Smokeless Tobacco Data Collection.
    OMB Control Number: 3084-0134.
    Type of Review: Revision and extension of currently approved 
collection.
    Likely Respondents: Parent companies of the largest cigarette 
companies and smokeless tobacco companies.
    Estimated Annual Burden Hours: 3,540 disclosure hours.
    Estimated Annual Labor Costs: $407,100.
    Abstract: Pursuant to section 6(b) of the FTC Act, 15 U.S.C. 46(b), 
the Commission collects information on sales and/or marketing of 
cigarettes, smokeless tobacco products, tobacco-free nicotine lozenges 
and pouches, and electronic devices used to heat non-combusted 
cigarettes (collectively, ``subject products'') from manufacturers of 
cigarettes and smokeless tobacco products. Depending on the type of 
product a manufacturer produces, the Commission requests the 
information using two different instruments--that is, a Cigarette Order 
and a Smokeless Tobacco Order. The Commission compiles and publishes 
the data in two periodic reports.
    Using compulsory process under section 6(b) of the FTC Act, the 
Commission plans to continue sending information requests annually to 
the ultimate parent companies of the largest cigarette companies and 
smokeless tobacco companies in the United States (collectively, 
``industry members''). The information requests will seek data 
regarding, among other things: (1) the cigarette or smokeless tobacco 
sales of industry members; (2) how much industry members spend 
advertising and promoting their cigarette or smokeless tobacco 
products, and the specific amounts spent in each of a number of 
specified expenditure categories; (3) whether industry members are 
involved in the appearance of their cigarette or smokeless tobacco 
products or brand imagery in television shows, motion pictures, on the 
internet, or on social media; (4) how much industry members spend on 
advertising intended to reduce youth cigarette or smokeless tobacco 
usage; (5) the events, if any, during which industry members' cigarette 
or smokeless tobacco brands are televised; and (6) how much industry 
members spend on public entertainment events promoting their companies 
but not specific cigarette or smokeless tobacco products or such 
products generally. The information requests will also seek information 
from the cigarette companies pertaining to the annual sales, give 
aways, and marketing expenditures for electronic devices used to heat 
non-combusted cigarette products.
    While, in previous years, the information requests only sought 
information pertaining to the annual unit and dollar sales of tobacco-
free nicotine lozenges and pouches, the Commission plans to seek a 
modification of its existing clearance in order to collect information 
concerning advertising and promotional expenditures for tobacco-free 
nicotine lozenges and pouches. The need to collect this information is 
predicated upon the fact that sales of tobacco-free nicotine lozenges 
and pouches more than doubled between 2020 and 2022, and these products 
appear to be especially popular with youth.
    The current PRA clearance to collect this information is valid 
through August 31, 2024 (OMB Control No. 3084-0134). 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 renew the clearance for the PRA burden associated with the proposed 
collection, and the proposed modification.

Burden Statement

    Estimated Annual Burden Hours: 3,540.
    The FTC staff's estimated hours of burden is based on the time 
required each year to respond to the Commission's information requests. 
Because the potential recipients of the information requests vary 
greatly in size, the number of products they sell, and the extent and 
variety of their advertising and promotion, FTC staff distinguishes 
between the four largest industry members and smaller industry members 
for the purpose of calculating the estimated annual burden hours. This 
burden analysis first discusses the burden hours that industry members 
will incur in providing information on their sales and marketing 
expenditures for cigarettes and smokeless tobacco products.
    Requests for Information on Cigarettes and Smokeless Tobacco: For 
the information requests on the sales and marketing expenditures for 
cigarettes and smokeless tobacco products, the Commission currently 
anticipates sending information requests to the four largest cigarette 
companies and the five largest smokeless tobacco companies each year. 
However, in order to take into account any future industry changes, the 
burden estimate is based on up to 15 information requests being issued 
per year. The Commission assumes that six of the 15 information 
requests will be issued to the four largest industry members, and the 
remaining nine information requests will be issued to nine smaller 
industry members.\1\
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    \1\ Based on their product variety, two of the four largest 
industry members receive both a Cigarette Order and a Smokeless 
Tobacco Order.
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    FTC staff estimates that each of the four largest industry members 
will incur, on average, a burden of 400 hours per response per year, 
resulting in a cumulative burden of approximately 2,400 hours per year 
(6 requests x 400 hours per year). Additionally, FTC staff estimates 
that the remaining nine smaller recipients of the Commission's 
information requests will each incur, on average, a burden of 60 hours 
per request per year, resulting in a cumulative burden of approximately 
540 hours per year (9 requests x 60 hours).
    Accordingly, FTC staff estimates that, for the purpose of providing 
information on their sales and marketing for cigarettes and smokeless 
tobacco products industry members will incur a cumulative burden of 
approximately 2,940 hours per year (2,400 hours per year + 540 hours 
per year).
    Requests for Information on Tobacco-Free Nicotine Lozenges and 
Pouches: In the past, the Commission's Smokeless Tobacco Orders have 
also sought

[[Page 20969]]

information pertaining to the annual unit and dollar sales of tobacco-
free nicotine lozenges and pouches by the smokeless tobacco 
manufacturers or related companies. The Commission is proposing to 
amend its existing OMB clearance to also collect data on smokeless 
tobacco manufacturers' annual advertising and promotional expenditures 
for tobacco-free nicotine lozenges and pouches. FTC staff estimates 
that, as a result of this modification, the Commission will seek this 
information from the five largest smokeless tobacco manufacturers each 
year. However, in order to take into account any future industry 
changes, the burden estimate is based on up to five additional 
information requests being issued per year to smokeless tobacco 
companies that sell, or have related companies that sell, tobacco-free 
nicotine lozenges and pouches.
    FTC staff estimates that each of the ten recipients will incur, on 
average, a burden of 50 hours per request per year. Accordingly, FTC 
staff estimates that, for the purpose of providing information on the 
sales and marketing expenditures for tobacco-free nicotine lozenges and 
pouches, the recipients will incur a cumulative burden of approximately 
500 hours per year (10 requests x 50 hours per year).
    Requests for Information on Devices to Heat Non-Combusted 
Cigarettes: The Commission's Cigarette Orders have also sought sales 
and marketing expenditure information for electronic devices used to 
heat non-combusted cigarettes. At this time, there is no longer any 
industry member that sells such devices in the United States, but FTC 
staff anticipates that at least one of the four largest industry 
members will re-enter this market segment over the next three years. 
FTC staff assumes that, as a result of the Commission's information 
requests, it will take any of the largest cigarette companies that sell 
electronic devices used to heat non-combusted cigarettes approximately 
25 hours per year to compile the information on their sales and 
marketing expenditures for such devices, and that as many as four of 
the largest industry members may sell such devices, for a possible 
burden of 100 hours (4 requests x 25 hours per year).
    Accordingly, FTC staff estimates that, as a result of the 
Commission's requests for information on sales and marketing for the 
subject products, market participants will incur a cumulative burden of 
approximately 3,540 hours per year (2,940 hours per year + 500 hours 
per year + 100 hours per year). This estimate includes any time spent 
by separately incorporated subsidiaries and other entities affiliated 
with the ultimate parent company that receives the information request.
    Estimated Annual Cost Burden: $407,100.
    FTC staff cannot calculate with precision the labor costs 
associated with this data production, as those costs entail varying 
compensation levels of management and/or support staff among companies 
of different sizes. FTC staff assumes that paralegals and computer 
analysts will perform most of the work involved in responding to the 
Commission information requests, although in-house legal personnel will 
be involved in reviewing the actual submission to the Commission. FTC 
staff will use a combined hourly wage of $115/hour for the combined 
efforts of these individuals.\2\ Using this figure, FTC staff's best 
estimate for the total annual labor costs is $407,100 per year ($115 
per hour x 3,540 hours).
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    \2\ FTC staff believes that this estimate is conservative. 
According to data from the Bureau of Labor Statistics, the mean 
hourly wages for these three occupations are as follows: $30.21 for 
paralegals; $53.15 for computer and information analysts; and $78.74 
for lawyers. Economic News Release, Bureau of Labor Statistics, 
Table 1--National employment and wage data from the Occupational 
Employment Statistics survey by occupation, May 2022 (Table 1), 
available at http://www.bls.gov/news.release/ocwage.t01.htm. Even if 
employees of the major cigarette and smokeless tobacco manufacturers 
earn more than these hourly wages, FTC staff believes its $115/hour 
estimate is appropriate.
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    Estimated Capital or Other Non-Labor Cost: De minimis.
    FTC staff believes that the capital or other non-labor costs 
associated with the information requests are minimal. Although the 
information requests may necessitate that industry members maintain the 
requested information provided to the Commission, they should already 
have in place the means to compile and maintain business records.

Request for Comment

    Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) whether the disclosure and recordkeeping 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.
    For the FTC to consider a comment, we must receive it on or before 
May 28, 2024. 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.
    You can file a comment online or on paper. Due to 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 file your comment on paper, write ``Tobacco Reports; PRA 
Comment: FTC File No. P072108'' on your comment and on the envelope, 
and mail it to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), 
Washington, DC 20580.
    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 (1) be filed in paper form, (2) be clearly labeled 
``Confidential,'' and (3) 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

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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 May 28, 2024. 
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. 2024-06350 Filed 3-25-24; 8:45 am]
BILLING CODE 6750-01-P