[Federal Register Volume 90, Number 79 (Friday, April 25, 2025)]
[Notices]
[Pages 17436-17438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07194]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission. (FTC).
ACTION: Notice.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comments on its proposal to extend for an additional
three years the current Paperwork Reduction Act (``PRA'') clearance for
information collection requirements contained in the Mail, internet, or
Telephone Order Merchandise Rule (``MITOR'' or ``Rule''). That
clearance expires on August 31, 2025.
DATES: Comments must be filed by June 24, 2025.
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 ``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.
FOR FURTHER INFORMATION CONTACT: Michelle Schaefer, Attorney, Division
of Enforcement, Bureau of Consumer Protection, Federal Trade
Commission, Mail Code CC-6316, 600 Pennsylvania Avenue NW, Washington,
DC 20580, (202) 326-3515.
SUPPLEMENTARY INFORMATION:
Title of Collection: Mail, internet, or Telephone Order Merchandise
Rule (MITOR or Rule), 16 CFR part 435.
OMB Control Number: 3084-0106.
Type of Review: Extension of currently approved collection.
Affected Public: Businesses engaged in the sale of merchandise by
mail, internet or telephone.
Estimated Annual Burden Hours: 4,003,250 hours [(68,358 established
businesses x 50 hours) + (2,545 new entrants x 230 hours)].
Estimated Annual Labor Costs: $104,084,500 (4,003,250 hours x
$26.00/hour).\1\
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\1\ The hourly wage rates for sales and related workers are
based on the hourly mean wage rates found at https://www.bls.gov/news.release/ocwage.htm (``Occupational Employment and Wages--May
2024,'' U.S. Department of Labor, last modified April 2, 2025, Table
1 (``National employment and wage data from the Occupational
Employment Statistics survey by occupation, May 2024'').
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Estimated Annual Non-Labor Costs: $0.
Abstract: Generally, the MITOR requires a seller (or merchant) to:
(1) have a reasonable basis for any express or implied shipment
representation made in soliciting the sale (if no express time period
is promised, the implied shipment representation is 30 days); (2)
notify the buyer (or consumer) and obtain the buyer's consent to any
delay in shipment; and (3) make prompt and full refunds when the buyer
exercises a cancellation option or the seller is unable to meet the
Rule's other requirements.
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 MITOR.
[[Page 17437]]
Burden Statement
A. Estimated Total Annual Hours Burden: 4,003,250 Hours
As discussed in prior Federal Register Notices related to this
clearance,\2\ FTC staff estimates that established companies each spend
an average of 50 hours per year on compliance with the Rule, and that
new industry entrants spend an average of 230 hours (an industry
estimate) on compliance.\3\ Thus, the total estimated hours burden is
calculated by multiplying the estimated number of established companies
by 50 hours, multiplying the estimated number of new entrants by 230
hours, and adding the two products.
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\2\ See, e.g., 62 FR 63717 (Dec. 2, 1997).
\3\ Most of this estimated time is start-up time tied to the
development and installation of computer systems geared to more
efficiently handle customer orders.
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Since the FTC's renewal request in 2022, however, the number of
businesses engaged in the sale of merchandise subject to the MITOR has
increased. The most currently available data from the U.S. Census
Bureau indicates that, between 2012 and 2022, the number of businesses
subject to the MITOR grew from 30,185 to 55,633, or an average increase
of 2,545 new businesses a year [(55,633 businesses in 2022 - 30,185
businesses in 2012) / 10 years].4 5 Assuming this growth
rate continues from 2025 through 2028, the average number of
established businesses during the three-year period for which OMB
clearance is sought for the Rule would be 68,358: \6\
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\4\ U.S. Census Bureau, All Sectors: County Business Patterns,
including ZIP Code Business Patterns, by Legal Form of Organization
and Employment Size Class for the U.S., States, and Selected
Geographies: 2022, available at https://data.census.gov/table/CBP2022.CB2200CBP?y=2022&n=4541.
\5\ Conceptually, this might understate the number of new
entrants. Given the virtually unlimited diversity of retail
establishments, it is very unlikely that there is a reliable
external measure; nonetheless, as in the past, the Commission
invites public comment that might better inform these estimates. For
example, many online marketplace sellers that use Amazon.com's
marketplace to sell to customers have agreements that provide that
Amazon handles packaging and shipping the products to customers.
Whether Amazon.com is also the entity responsible for sending
customers delay notices when necessary could affect which entity is
subject to MITOR disclosure requirements (Amazon or the individual
marketplace seller).
\6\ As noted above, the existing OMB clearance for the Rule
expires on August 31, 2025, and the FTC is seeking to extend the
clearance for three years.
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Established New
Year businesses entrants
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2025-26....................................... 65,813 2,545
2026-27....................................... 68,358 2,545
2027-28....................................... 70,903 2,545
Average....................................... 68,358 2,545
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FTC staff estimates that, in an average year during the three-year
OMB clearance period, established businesses and new entrants will
devote 4,003,250 hours to comply with the MITOR [(68,358 established
businesses x 50 hours) + (2,545 new entrants x 230 hours) = 4,003,250].
The estimated PRA burden per seller to comply with the MITOR is
likely overstated because much of the estimated time burden for
disclosure-related compliance would arguably be incurred even absent
the Rule. Over the years, industry trade associations and individual
witnesses have consistently taken the position that providing consumers
with notice about the status of their orders fosters consumer loyalty
and encourages repeat purchases, which are important to marketers'
success. In recent years, the demands of the internet's online
marketplace and its leading retailers, such as Amazon.com, Walmart.com,
and Ebay.com have driven many businesses to upgrade the information
management systems to track and ship orders more effectively.\7\ These
upgrades were primarily prompted by the industry's need to deal with
growing consumer demand for merchandise that is timely shipped.
Accordingly, most companies now provide updated order information of
the kind required by the Rule in their ordinary course of business to
meet consumer expectations regarding timely shipment, notification of
delay, and prompt and full refunds.\8\
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\7\ Brian Baskin, Amazon's Free Shipping Pushes Small Retailers,
Delivery Firms to Compete, The Wall Street Journal (Apr. 8, 2017),
available at https://www.wsj.com/articles/amazons-free-shipping-pushes-small-retailers-delivery-firms-to-compete-1491649203.
\8\ Under the OMB regulation implementing the PRA, burden is
defined to exclude any effort that would be expended regardless of
any regulatory requirement. 5 CFR 1320.3(b)(2).
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B. Estimated Labor Costs: $102,563,265
FTC staff derived labor costs by applying appropriate hourly cost
figures to the burden hours described above. According to the most
recent data available from the Bureau of Labor and Statistics,\9\ the
mean hourly income for workers in sales and related occupations was
$26.00/hour. The bulk of the burden of complying with the MITOR is
borne by clerical personnel along with assistance from sales personnel.
FTC staff believes that the mean hourly income for workers in sales and
related occupations is an appropriate measure of a direct marketer's
average labor cost to comply with the Rule. Thus, the total annual
labor cost to new and established businesses for MITOR compliance
during the three-year period for which OMB approval is sought would be
approximately $104,084,500 (4,003,250 hours x $26.00/hour). Relative to
direct industry sales, this total is negligible.\10\
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\9\ See Table 1, National Employment and Wage Data from the
Occupational Employment Statistics Survey by Occupation, May 2024,
available at https://www.bls.gov/news.release/ocwage.t01.htm.
\10\ Considering that sales for ``electronic shopping and mail
order houses'' grew from $411.480 billion in 2015 to $1,593.380
billion in 2022, FTC staff estimates the annual mail, internet, or
telephone sales to consumers in the three-year period for which OMB
clearance is sought will average $1.3 trillion. Thus, the projected
average labor cost for MITOR compliance by existing and new
businesses for that period would amount to 0.006438% of sales. U.S.
Census Bureau, Supplemental Estimated Annual Sales for Employer-only
U.S. Electronic Shopping and Mail-Order Houses (NAICS 4541)--Total
and E-commerce Sales by Primary Business Activity: 2015-2022 (Sep.
25, 2024), available at https://www.census.gov/data/tables/2022/econ/arts/2022restated/supplemental-ecommerce.html.
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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
June 24, 2025. 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 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 ``Paperwork Reduction Act
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
[[Page 17438]]
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 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 June 24, 2025.
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. 2025-07194 Filed 4-24-25; 8:45 am]
BILLING CODE 6750-01-P