[ The Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Federal Trade Commission Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]



[[Page 62737]]

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Part LIX





Federal Trade Commission





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Semiannual Regulatory Agenda

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FEDERAL TRADE COMMISSION (FTC)                                   
  
_______________________________________________________________________

FEDERAL TRADE COMMISSION

16 CFR Ch. I

Semiannual Regulatory Agenda

AGENCY: Federal Trade Commission.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The following agenda of Commission proceedings is published in 
accordance with section 22(d)(1) of the Federal Trade Commission Act, 
15 U.S.C. 57b-3(d)(1), and the Regulatory Flexibility Act, 5 U.S.C. 601 
et seq., as amended by the Small Business Regulatory Enforcement 
Fairness Act of 1996, title II of Public Law 104-121, 110 Stat. 847. 
The Commission's agenda observes guidelines and procedures issued July 
8, 1998, by the Office of Management and Budget in accordance with the 
provisions of President Clinton's Executive Order No. 12866 
``Regulatory Planning and Review'' of September 30, 1993 (58 FR 51735; 
October 4, 1993).

    The Commission completed its Regulatory Flexibility Act section 
610 review of the rules and regulations under the Hobby Protection 
Act. The Commission has responded to the optional information 
requirement to identify rulemakings that are likely to have some 
impact on small entities but are not subject to the requirements of 
the Regulatory Flexibility Act. The current rulemakings that are 
likely to have some impact on small entities include: (1) The 
regulations under the Smokeless Tobacco Health Education Act of 
1986, 16 CFR part 307; (2) the Trade Regulation Rule pursuant to 
the Telephone Disclosure and Dispute Resolution Act of 1992, 16 CFR 
part 308; (3) the Trade Regulation Rule on Care Labeling of Textile 
Wearing Apparel and Certain Piece Goods, as amended, 16 CFR part 
423; (4) the Trade Regulation Rule on Disclosure Requirements and 
Prohibitions Concerning Franchising and Business Opportunity 
Ventures, 16 CFR part 436; (5) the Trade Regulation Rule on 
Ophthalmic Practice Rules, 16 CFR part 456; (6) the Trade 
Regulation Rule on Labeling and Advertising of Home Insulation, 16 
CFR part 460; (7) the Disclosure of Written Consumer Product 
Warranty Terms and Conditions, 16 CFR part 701; and (8) the Pre-
Sale Availability of Written Warranty Terms, 16 CFR part 702. The 
Agency also is conducting a review of the 900-Number Rule as 
required by the Rule itself. Most of the other reviews listed on 
the following agenda are being conducted as part of the 
Commission's plan, begun in 1992, to review and seek information 
about all of its regulations and guides, including their costs and 
benefits, and regulatory and economic impact, every 10 years. These 
reviews incorporate and expand upon the review required by the 
Regulatory Flexibility Act. The Commission's 10-year program is 
also consistent with the President's March 4, 1995, Regulatory 
Reform Initiative, directing agencies to conduct a review of all 
regulations and eliminate or revise those that are outdated or 
otherwise in need of reform.

    Except for notice of completed actions, the information in this 
agenda represents the judgment of Commission staff based upon 
information now available. Each projected date of action reflects 
an assessment by the FTC staff of the likelihood that the specified 
event will occur during the coming year. No final determination by 
the staff or the Commission respecting the need for or the 
substance of a trade regulation rule or any other procedural option 
should be inferred from the notation of projected events in this 
agenda. In most instances, the dates of future events are listed by 
month, not by a specific day. The acquisition of new information, 
changes of circumstances, or changes in the law may alter this 
information.

FOR FURTHER INFORMATION CONTACT: For information about specific 
regulatory actions listed in the agenda, contact the contact person 
listed for each particular proceeding. Comments or inquiries of a 
general nature about the agenda should be directed to Sandra M. Vidas, 
Staff Attorney, Federal Trade Commission, Sixth Street and Pennsylvania 
Avenue NW., Washington, DC 20580; telephone (202) 326-2456; e-mail: 
[email protected].

    This edition of the Unified Agenda of Federal Regulatory and 
Deregulatory Actions includes The Regulatory Plan, which appears in 
part II of this issue of the Federal Register. The FTC's Statement 
of Regulatory Priorities is included in part II.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

                                                  Prerule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4535         Trade Regulation Rule Concerning Power Output Claims for Amplifiers Utilized in Home
            Entertainment Products................................................................    3084-AA81
4536         Trade Regulation Rule on Funeral Industry Practices..................................    3084-AA82
----------------------------------------------------------------------------------------------------------------


                                               Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4537         Premerger Notification Rules and Report Form.........................................    3084-AA23
4538         Regulatory Review....................................................................    3084-AA47
4539         Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986...    3084-AA48
4540         The Care Labeling Rule...............................................................    3084-AA54
4541         Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation.....    3084-AA60
4542         Trade Regulation Rule on Franchising and Business Opportunity Ventures...............    3084-AA63
4543         Rule Governing Disclosure of Written Consumer Product Warranty Terms and Conditions..    3084-AA72

[[Page 62739]]

 
4544         Rule Governing the Pre-Sale Availability of Written Warranty Terms...................    3084-AA73
4545         Rule Governing Informal Dispute Settlement Procedures................................    3084-AA75
4546         Trade Regulation Rule on Ophthalmic Practice Rules...................................    3084-AA80
----------------------------------------------------------------------------------------------------------------


                                                Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4547         Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution Act
            of 1992...............................................................................    3084-AA78
----------------------------------------------------------------------------------------------------------------


                                                Long-Term Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4548         Amended Federal Deposit Insurance Corporation Improvement Act........................    3084-AA44
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                                                Completed Actions
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                                                                                                     Regulation
 Sequence                                           Title                                            Identifier
  Number                                                                                               Number
----------------------------------------------------------------------------------------------------------------
4549         Trade Regulation Rule Concerning the Use of Negative Option Plans by Sellers in
            Commerce..............................................................................    3084-AA76
4550         Rules and Regulations Under the Hobby Protection Act (Section 610 Review)............    3084-AA79
----------------------------------------------------------------------------------------------------------------

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FEDERAL TRADE COMMISSION (FTC)                      Prerule Stage
  
_______________________________________________________________________

4535. TRADE REGULATION RULE CONCERNING POWER OUTPUT CLAIMS FOR 
AMPLIFIERS UTILIZED IN HOME ENTERTAINMENT PRODUCTS

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 432

Legal Deadline: None

Abstract: The Trade Regulation Rule Concerning Power Output Claims for 
Amplifiers Utilized in Home Entertainment Products (``Amplifier Rule'' 
or ``Rule'') was promulgated in 1974 to assist consumers in purchasing 
power amplification equipment for home entertainment purposes by 
standardizing the measurement and disclosure of various performance 
characteristics of the equipment. The Amplifier Rule establishes 
uniform test standards and disclosures so that consumers can make more 
meaningful comparisons of performance attributes. The Rule makes it an 
unfair or deceptive act or practice for manufacturers and sellers of 
sound power amplification equipment for home entertainment purposes to 
fail to disclose certain performance information in connection with 
direct or indirect representations of power output, power band, 
frequency or distortion characteristics. The Rule also sets out 
standard test conditions for performing the measurements that support 
the required performance disclosures. Further, the Rule prohibits 
representations of performance characteristics if they are not 
obtainable when the equipment is operated by the consumer in the usual 
and ordinary manner without the use of extraneous aids.
As part of its systematic review of all Commission rules and guides, 
the Commission requested comments on, among other things, the economic 
impact of, and the continuing need for, this Rule; possible conflict 
between the Rule and State, local and other Federal laws; and the 
effect on the Rule of any technological, economic, or other industry 
changes. In reviewing the Rule, the Commission tentatively determined 
that the Rule applies to self-powered speakers for use with home 
computers and home sound systems, as well as other amplification 
equipment for home computers, but asked for comments on whether such 
products should be outside the Rule's scope. The Commission also 
requested comments on whether the Rule's provisions should be extended 
to automobile sound systems and whether existing testing and disclosure 
requirements need to be modified for use with automotive sound 
amplification.

[[Page 62740]]


Based upon the record in this proceeding, the Commission has determined 
that the Rule applies to self-powered speakers for use with home 
computers and home sound systems but that the Rule should not be 
extended to automobile sound systems. The Commission also determined to 
issue an Advance Notice of Proposed Rulemaking relating to testing 
procedures and required disclosures in advertisements. The comment 
period for the ANPRM ended on September 8, 1998.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/07/97                    62 FR 16500
Comment Period End              06/06/97
Recommendation to Commission    05/08/98
ANPRM                           07/09/98                    63 FR 37238
Final Rule (Nonsubstantive 
Technical Changes)              07/09/98                    63 FR 37234
Comment Period End              09/08/98
Recommendation to Commission    03/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Neil Blickman, Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3038
Email: [email protected]

RIN: 3084-AA81
_______________________________________________________________________

4536.  TRADE REGULATION RULE ON FUNERAL INDUSTRY PRACTICES

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 45; 15 USC 46(g); 15 USC 57(a)

CFR Citation:  16 CFR 453

Legal Deadline: None

Abstract: The Funeral Industry Practices Rule, which became effective 
in 1984, requires sellers of funeral goods and services to give price 
lists to consumers who visit a funeral home, and to disclose price and 
other information to callers who request it over the telephone. The 
Rule enables consumers to select and purchase only the goods and 
services they want, and requires funeral providers to seek authority 
before performing some services such as embalming. The Rule also 
requires funeral providers to make disclosures regarding any required 
purchases and prohibits misrepresentations regarding requirements and 
other aspects of funeral goods and services. In its 1994 review of the 
Rule, the Commission determined to retain the Rule and amended it to 
prohibit funeral providers from charging a ``casket handling fee'' in 
addition to any non-declinable basic-services fee and deleted certain 
affirmative telephone disclosure requirements. The Commission also 
determined to schedule a ``notice and comment'' review of the Rule in 
1999 in accordance with its ten-year schedule for reviewing all rules 
and guides. However, the Commission is responding to requests to 
address emerging issues in the funeral industry by beginning to review 
the Rule in 1998, instead of 1999, as previously scheduled. Staff is 
preparing a memorandum to the Commission concerning the scope of the 
review and the issues to be addressed in an ANPRM.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Recommendation to Commission    10/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Laurie Meehan, Attorney, Federal Trade Commission, 
Division of Marketing Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3755
Email: [email protected]

RIN: 3084-AA82
_______________________________________________________________________
FEDERAL TRADE COMMISSION (FTC)                Proposed Rule Stage
  
_______________________________________________________________________

4537. PREMERGER NOTIFICATION RULES AND REPORT FORM

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 18a Clayton Act

CFR Citation:  16 CFR 801 to 803

Legal Deadline: None

Abstract: The Premerger Notification Rules and the Antitrust 
Improvements Act Notification and Report Form were adopted pursuant to 
Section 7A of the Clayton Act. Section 7A requires firms of a certain 
size contemplating mergers or acquisitions of a specified size to file 
notification with the Federal Trade Commission (FTC) and the Department 
of Justice (DOJ) and to wait a designated period before consummating 
the transaction. It also requires the FTC, with the concurrence of the 
Assistant Attorney General for Antitrust, to promulgate rules requiring 
that notification be in a form and contain information necessary to 
enable the FTC and DOJ to determine whether the proposed acquisition 
may, if consummated, violate the antitrust laws. These rules are 
continually reviewed in order to improve the program's effectiveness 
and reduce the paperwork burden on the business community. The 
Commission proposed modifications to the Premerger Notification and 
Report form during fiscal year 1994. In March 1996, the Commission 
promulgated rules amending the Rule's treatment of acquisitions of 
goods or realty made in the ordinary course of business and adding new 
exemptions for acquisitions of realty and carbon-based mineral 
reserves. In addition, on August 9, 1995, the Commission published a 
final rule that removed 16 CFR part 800, the transitional rule 
addressing the treatment of acquisitions consummated before, and 
notification filed on or before September 5, 1978. On June 25, 1998, 
the Commission issued a Final Rule with a request for comments amending 
Rule 802.70, Acquisitions subject to order. This amendment reduces the 
burden on parties by exempting from the HSR filing requirements 
divestitures included in consent agreements that have been accepted by 
the Commission for public comment, or filed by the Commission or the 
Department of Justice with the District Court and that are subject to 
public comment but are not final

[[Page 62741]]

orders. The comment period ended July 27, 1998.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    09/30/81
NPRM (Ordinary Course)          09/24/85                    50 FR 38742
NPRM (HSR Form Changes)         06/14/94                    59 FR 30545
NPRM (Ordinary Course)          07/28/95                    60 FR 38930
Part 800 Repealed               08/09/95                    60 FR 40704
Final Rule (Ordinary Course)    03/28/96                    61 FR 13666
Final Rule Effective (Ordinary 
Course)                         04/29/96
Comment Period End              07/27/97
Final Rule with Request for 
Comments (802.70)               06/25/98                    63 FR 34592
NPRM (HSR Form Changes)         12/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Melea Epps, Staff Attorney, Pre-Merger Notification 
Office, Federal Trade Commission, Bureau of Competition, Washington, DC 
20580
Phone: 202 326-2705
Email: [email protected]

RIN: 3084-AA23
_______________________________________________________________________

4538. REGULATORY REVIEW

Priority:  Other Significant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 1 et seq

Legal Deadline: None

Abstract: The Commission is conducting a revolving ten-year review of 
current rules and guides to identify any that should be modified or 
rescinded. At the beginning of 1998, the Commission published a notice 
in the Federal Register listing the rules, guides, and exemption 
procedures to be reviewed during 1998. Early next year, the Commission 
will publish a list of additional rules and guides it will review in 
1999. During 1998, the Commission published separate notices in the 
Federal Register for each rule or guide, soliciting comments about its 
costs and benefits and regulatory and economic impact. Where rulemaking 
timetables have been established for rules being reviewed, they are 
included in this Agenda. However, no determination about whether to 
modify or rescind a rule, regulation, guide or interpretation or any 
other procedural option should be inferred from the Commission's 
decision to publish a request for comments. In certain instances, the 
reviews also will address other specific matters or issues, such as 
reviews mandated by the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Notice of Rules and Guides to 
Review in 1998                  01/12/98                     63 FR 1802
Notice of Rules and Guides to 
Review in 1999                  01/00/99

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kent Howerton, Division of Enforcement, Federal Trade 
Commission, Bureau of Consumer Protection, Washington, DC 20580
Phone: 202 326-3013
Email: [email protected]

RIN: 3084-AA47
_______________________________________________________________________

4539. REGULATIONS UNDER THE COMPREHENSIVE SMOKELESS TOBACCO HEALTH 
EDUCATION ACT OF 1986

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 4401

CFR Citation:  16 CFR 307

Legal Deadline: None

Abstract: The Comprehensive Smokeless Tobacco Health Education Act of 
1986 requires health warnings on all packages and advertising for 
smokeless tobacco. The Commission published an NPRM on February 14, 
1995, seeking public comment on whether the regulations governing the 
rotation schedule for utilitarian objects should be amended. The 60-day 
comment period expired on April 14, 1995. The Commission amended the 
smokeless tobacco regulations to permit rotation of the mandated health 
warnings on utilitarian items and promotional materials based on either 
the date the item or material is ordered from a supplier or the date it 
is disseminated to the public, provided the production of such items is 
carried out in a manner consistent with ordinary business practices. On 
a separate point, the Coalition on Smoking or Health petitioned the 
Commission to enforce the Smokeless Tobacco Act by requiring smokeless 
tobacco health warnings on sponsored racing cars, banners, flags, and 
other related objects bearing smokeless tobacco product brand names, 
logos, or selling messages. On October 26, 1993, the Commission issued 
an NPRM and proposed a requirement that sponsored auto racing vehicles 
and all other event-related objects that bear the brand name or selling 
message of smokeless tobacco products display health warning labels. 
Staff is reviewing the impact of the final Food and Drug Administration 
Rule on tobacco products and the State Attorneys' General omnibus 
settlement as applicable to event and team sponsorship. This review 
will be included in the rule review scheduled to begin in 1999.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM (Promotional Items)        01/15/93                     58 FR 4875
NPRM (Racing Cars)              11/04/93                    58 FR 58810
Comment Period End (Racing Cars)02/01/94
NPRM (Utilitarian Items)        02/14/95                     60 FR 8312
Comment Period End (Utilitarian 
Items)                          04/14/95
Final Staff Recommendation 
(Promotional Items)             05/17/96
Final Staff Recommendations 
(Utilitarian Items)             05/17/96
Final Action (Promotional Items)08/30/96                    61 FR 45883
Final Action (Utilitarian Items)08/30/96                    61 FR 45883
Begin Rule Review               01/00/99

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Nancy S. Warder, Division of Advertising Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580
Phone: 202 326-3048
Email: [email protected]

RIN: 3084-AA48
_______________________________________________________________________

4540. THE CARE LABELING RULE

Priority:  Other Significant

Reinventing Government: This rulemaking is part of the Reinventing

[[Page 62742]]

Government effort. It will revise text in the CFR to reduce burden or 
duplication, or streamline requirements.

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 423

Legal Deadline: None

Abstract: The Care Labeling Rule requires manufacturers and importers 
of textile wearing apparel to attach cleaning instructions stating what 
regular care is needed for the ordinary use of the product. If dry 
cleaning is recommended, the label must state at least one type of 
solvent that may be used (unless all commercially available types of 
solvent can be used), and must contain a warning against the use of any 
part of the normal dry cleaning procedure that would harm the product. 
The Rule also requires that the manufacturer or importer possess, prior 
to sale, a reasonable basis for the care instructions. It also states 
that ``any appropriate symbols may be used on care labels or care 
instructions, in addition to the required appropriate terms so long as 
the terms fulfill the requirements of this regulation.'' Although the 
Rule does not specifically state that the instructions must be in 
English, they usually are. On February 6, 1997, the Commission granted 
a Conditional Exemption with request for public comments. The 
Conditional Exemption, which became effective on July 1, 1997, allows 
the use of the symbol system developed by the American Society for 
Testing and Materials on care labels. The symbols, which show consumers 
how to safely launder or clean their clothing, will be permitted on 
care labels so long as the manufacturers include with the garments a 
written explanation of what the symbols mean for the first 18 months 
they are in use. When it granted the industry permission to use symbols 
on care labels instead of written words, the FTC launched a national 
campaign to help consumers in the transition to symbols by making sure 
they have easy access to additional descriptive information regarding 
how to care for their clothing. In addition, the Commission is 
conducting a substantive review of the Rule's requirements. An ANPRM 
relating to possible substantive changes in connection with methods of 
cleaning that can or should be listed on the care label, reasonable 
basis requirements, and definitions of water temperatures was published 
on December 28, 1995. An NPRM relating to these possible substantive 
changes was published on May 8, 1998; the comment period ended on July 
27, 1998. The NPRM proposes that the Rule be amended as follows: ``If 
an item of textile wearing apparel can be successfully washed and 
finished by a consumer at home, the label must provide an instruction 
for washing.'' The NPRM also proposes that the Rule be amended to allow 
for labeling for the relatively new process known as ``professional wet 
cleaning.'' Finally, the NPRM proposes a change in the definition of 
``reasonable basis'' in the Rule, and in the definitions of water 
temperature.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Reg Review                06/15/94                    59 FR 30733
Comment Period End              10/15/94
Recommendation to Commission    10/17/95
Request for Comment/ Exemption  11/16/95                    60 FR 57552
ANPRM                           12/28/95                    60 FR 67102
Comment Period End/Exemption    01/31/96
ANPRM Comment Period End        03/13/96
Recommendation to Commission/ 
Exemption                       11/15/96
Interim Conditional Exemption   02/06/97                     62 FR 5724
Comment Period End              03/10/97
Final Conditional Exemption     05/29/97                    62 FR 29006
Recommendation to Commission/
NPRM                            01/23/98
NPRM                            05/08/98                    63 FR 25417
Comment Period End              07/27/98
Recommendation to Commission    11/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Constance Vecellio, Care Labeling Rule Coordinator, 
Division of Enforcement, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-2966
Email: [email protected]

RIN: 3084-AA54
_______________________________________________________________________

4541. TRADE REGULATION RULE CONCERNING THE LABELING AND ADVERTISING OF 
HOME INSULATION

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 460

Legal Deadline: None

Abstract: The Federal Trade Commission's Trade Regulation Rule 
Concerning the Labeling and Advertising of Home Insulation (R-Value 
Rule) became effective on September 29, 1980. The Rule is designed to 
assist consumers in evaluating and comparing the thermal performance 
characteristics of competing home insulation products. Specifically, 
the Rule requires manufacturers of home insulation products to provide 
information about the product's degree of resistance to the flow of 
heat (R-Value). The Rule also establishes uniform standards for 
testing, information disclosure and substantiation of product 
performance claims. As part of its systematic review of all Commission 
rules and guides, the Commission requested comments on, among other 
things, the economic impact of, and the continuing need for, this Rule, 
possible conflicts between the Rule and state, local and other Federal 
laws, and the effect on the Rule of any technological, economic, or 
other industry changes. At the same time, in response to a petition, 
the Commission proposed adopting a non-substantive amendment to the 
Rule that would allow, but not require, the use of an additional test 
procedure for measuring R-value, and solicited comments on the proposed 
amendment. The Commission is considering the comments in two parts. In 
part I, on March 28, 1996, the Commission reviewed the comments that 
addressed the current benefits, burdens and need for the Rule and 
determined to retain the Rule. The Commission also adopted non-
substantive amendments that: (1) allow the optional use of the 
additional R-value test procedure; and (2) require use in the future of 
revised, current versions of other test procedures cited in the Rule. 
In part II, the Commission will consider the comments recommending that 
the Commission adopt substantive revisions to the Rule.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/06/95                    60 FR 17492

[[Page 62743]]

Comment Period End              06/06/95
Commission Action/Part I        03/28/96                    61 FR 13659
Recommendation to Commission/
Part II                         12/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kent C. Howerton, Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3013
Email: [email protected]

RIN: 3084-AA60
_______________________________________________________________________

4542. TRADE REGULATION RULE ON FRANCHISING AND BUSINESS OPPORTUNITY 
VENTURES

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 to 58

CFR Citation:  16 CFR 436

Legal Deadline: None

Abstract: The Federal Trade Commission's Trade Regulation Rule on 
Franchising and Business Opportunity Ventures (Franchise Rule) became 
effective on October 21, 1979. The Rule is designed to reduce deceptive 
and unfair practices in the sale of franchises and business 
opportunities by requiring the pre-sale disclosure of material 
information about the franchise. For example, the Rule requires 
franchisors to disclose their business background and litigation 
history, as well as the number of failed and terminated franchise 
units. The Rule also requires the disclosure of material terms of the 
franchise relationship, such as recurring fees and termination and 
renewal rights. The Rule further requires the franchisor to provide an 
audited financial statement for the past three fiscal years. Finally, 
the Rule requires any franchisor who makes earnings representations to 
provide the prospective franchisee with an earnings claims document 
that substantiates those claims. As part of its systematic review of 
all Commission rules and guides, the Commission requested comments 
about the overall costs and benefits of the Rule and what effects, if 
any, have changes in relevant technology, economic conditions, and 
industry practices had on the Rule. Two public workshops have been 
held, one on September 12, 1995, and the other on March 11, 1996. On 
February 28, 1997, the Commission published an Advance Notice of 
Proposed Rulemaking (ANPRM) contemplating amendments to the Rule. The 
Commission is interested in ensuring that the Rule addresses new 
technologies and market practices and at the same time reduces any 
unnecessary regulatory burden. Specifically, the Commission requested 
comments on whether to revise the Rule to more closely align Federal 
and State disclosure requirements governing franchise sales, and to 
address changes in the marketing of franchises, such as the sale of 
franchises internationally and through the Internet. In the same ANPRM, 
the Commission announced that it would hold six public workshops in 
five cities during 1997 to: promote discussions about the issues; allow 
the public to make statements on the record; and assist Commission 
staff in drafting a proposed amended Rule. The Commission extended the 
comment period to December 31, 1997. The ANPRM procedure has been 
completed and staff is working on a recommendation to the Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/17/95                    60 FR 17656
Comment Period End              08/11/95
Public Workshop                 09/12/95                    60 FR 34485
Public Workshop                 03/11/96                     61 FR 5969
ANPRM                           02/28/97                     62 FR 9115
Comment Period End              12/31/97                    62 FR 28824
Recommendation to Commission    01/00/99

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: State

Agency Contact: Steven Toporoff, Division of Marketing Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580
Phone: 202 326-3135
Email: [email protected]

RIN: 3084-AA63
_______________________________________________________________________

4543. RULE GOVERNING DISCLOSURE OF WRITTEN CONSUMER PRODUCT WARRANTY 
TERMS AND CONDITIONS

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 701

Legal Deadline: None

Abstract: The Rule Governing the Disclosure of Written Consumer Product 
Warranty Terms and Conditions (Rule 701) requires warrantors to 
disclose the terms and conditions of written warranties on consumer 
products actually costing the consumer more than $15.00. Rule 701 
specifies the information that must appear in the written warranty, as 
well as the exact language that must be used for certain items. Under 
Rule 701, the information must be disclosed in simple, easily 
understood, and concise language in a single document. In addition to 
specifying the information that must appear in a written warranty, Rule 
701 also requires that, in instances where the warrantor uses a 
warranty registration or owner registration card, the warranty must 
disclose whether that registration card is a condition precedent to 
warranty coverage. Finally, it provides that, in connection with ``seal 
of approval'' programs, the disclosures do not have to be given in the 
actual seal itself, if they are made in a general circulation 
publication. As part of its systematic review of all Commission 
regulations and guides, the Commission requested comments on, among 
other things, the economic impact of, and the continuing need for the 
Rule, possible conflict between the Rule and State, local, and other 
Federal laws, and the effect on the Rule of any technological, 
economic, or other industry changes. The comment period has ended and 
staff is preparing a recommendation to the Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    04/03/96                    61 FR 14688
Comment Period End              06/03/96
Recommendation to Commission    12/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Carole I. Danielson, Division of Marketing Practices, 
Bureau

[[Page 62744]]

of Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3115
Email: [email protected]

RIN: 3084-AA72
_______________________________________________________________________

4544. RULE GOVERNING THE PRE-SALE AVAILABILITY OF WRITTEN WARRANTY TERMS

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 702

Legal Deadline: None

Abstract: The Rule Governing the Pre-Sale Availability of Written 
Warranty Terms, 16 CFR part 702 (Rule 702) published as a final rule in 
1975 and amended in 1987, is being reviewed under the Commission's 
procedures. Section 102(b)(1)(A) of the Magnuson-Moss Warranty Act, 15 
U.S.C. 2301 et seq., directed the Commission to prescribe rules 
requiring that the terms of any written warranty on a consumer product 
be made available to the prospective purchaser prior to the sale of the 
product. Accordingly, the Commission issued Rule 702, which requires 
sellers and warrantors to make the terms of a written warranty 
available to the consumer prior to sale. Among other things, the Rule 
requires sellers to make warranty information readily available by 
either (1) displaying it in close proximity to the product, or (2) 
furnishing it on request and posting signs in prominent locations 
advising consumers that warranty information is available. The Rule 
requires warrantors to provide materials to enable sellers to comply 
with the Rule's requirements. It also sets out the methods by which 
warranty information can be made available prior to the sale of the 
product in instances where the product is sold through catalogs, mail 
order, or door-to-door. As part of its systematic review of all 
Commission regulations and guides, the Commission has determined to 
seek comments on, among other things, the economic impact of, and the 
continuing need for the rule, possible conflict between the rule and 
State, local, and other Federal laws and the effect on the rule of any 
technological, economic, or other industry changes. The comment period 
has ended and staff is preparing a recommendation to the Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    04/03/96                    61 FR 14688
Comment Period End              06/03/96
Recommendation to Commission    12/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Carole I. Danielson, Division of Marketing Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580
Phone: 202 326-3115
Email: [email protected]

RIN: 3084-AA73
_______________________________________________________________________

4545. RULE GOVERNING INFORMAL DISPUTE SETTLEMENT PROCEDURES

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 703

Legal Deadline: None

Abstract: The Rule Governing Informal Dispute Settlement Procedures 
(Rule 703) establishes minimum requirements for those informal 
settlement mechanisms (IDSM) that are incorporated by the warrantor 
into its consumer product warranty. By incorporating the IDSM into the 
warranty, the warrantor requires the consumer to use the IDSM before 
pursuing any legal remedies in court. Among other things, the Rule sets 
out the member qualifications, general operating procedures, and 
recordkeeping requirements of such IDSMs. The Rule also prescribes the 
duties of the warrantor in making consumers aware of the IDSM and how 
to use it, as well as the warrantor's duties to comply with the IDSM's 
requests and decisions. The Rule also requires IDSMs that operate under 
Rule 703 to submit annual audits to the Federal Trade Commission to 
determine their compliance with the Rule. As part of its systematic 
review of all Commission regulations and guides, the Commission has 
requested comments on, among other things, the economic impact of, and 
the continuing need for, the Rule; whether there are changes that might 
be made to the Rule that would increase consumer benefits or which 
might minimize cost to firms subject to its requirements; the degree to 
which it may conflict with other State, local, and other Federal laws; 
and the effect on the rules of any technological, economic, or other 
industry changes. The comment period has ended and staff is preparing a 
recommendation to the Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    01/01/97
Request for Comments            04/02/97                    62 FR 15636
Comment Period Extended         06/13/97                    62 FR 32338
Comment Period End              08/01/97
Recommendation to Commission    12/00/98

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Carole I. Danielson, Division of Marketing Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580
Phone: 202 326-3115
Email: [email protected]

RIN: 3084-AA75
_______________________________________________________________________

4546. TRADE REGULATION RULE ON OPHTHALMIC PRACTICE RULES

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 456

Legal Deadline: None

Abstract: The Trade Regulation Rule on Ophthalmic Practice Rules, also 
known as the ``Prescription Release Rule,'' provides that an 
optometrist or ophthalmologist must give to the patient a copy of the 
patient's eyeglass prescription immediately after the eye examination 
is completed at no extra cost. The Prescription Release Rule prohibits 
optometrists and ophthalmologists from conditioning the availability of 
an eye examination, as defined by the Rule, on a requirement that the 
patient agrees to purchase ophthalmic goods from the optometrist or 
ophthalmologist, and from placing on the prescription, or delivering to 
the patient, certain disclaimers or waivers of liability. The Rule does 
not require an optometrist or ophthalmologist to release a contact lens 
prescription to a patient after an eye exam. As part of its systematic 
review of all Commission rules and guides, the Commission requested 
comments on

[[Page 62745]]

the economic impact of, and the continuing need for, this Rule, 
possible conflict between the Rule and State, local, or other Federal 
laws, and the effect on the Rule of any technological, economic, or 
other industry changes. Staff is preparing a memorandum to the 
Commission summarizing the comments received and making recommendations 
as to whether the Commission should revise, repeal, or retain the rule.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/03/97                    62 FR 15865
Notice of Comment Period 
Extension                       05/29/97                    62 FR 29088
Comment Period End              06/02/97
Comment Period End              09/02/97
Recommendation to Commission    11/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Denise Owens, Division of Service Industry Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580
Phone: 202 326-3277
Email: [email protected]

RIN: 3084-AA80
_______________________________________________________________________
FEDERAL TRADE COMMISSION (FTC)                   Final Rule Stage
  
_______________________________________________________________________

4547. TRADE REGULATION RULE PURSUANT TO THE TELEPHONE DISCLOSURE AND 
DISPUTE RESOLUTION ACT OF 1992

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 5701 et seq

CFR Citation:  16 CFR 308

Legal Deadline: None

Abstract: Congress enacted the Telephone Disclosure and Dispute 
Resolution Act of 1992 (TDDRA) to curtail certain unfair and deceptive 
practices perpetrated by some pay-per-call businesses, and to encourage 
the growth of the legitimate pay-per-call industry. TDDRA granted the 
Commission limited jurisdiction over common carriers for purposes of 
the 900-Number Rule, which became effective November 1, 1993. The Rule 
requires that advertisements for 900-Numbers contain certain 
disclosures; that anyone who calls a 900-Number service be given the 
opportunity to hang up at the conclusion of the preamble without 
incurring any charge for the call; and establishes procedures for 
resolving billing disputes for 900-Number calls and other telephone-
billed purchases. Under the terms of the rule itself, a review of the 
Rule is required to be initiated by the Commission prior to November 
1997. As part of this review, the Commission published a notice in the 
Federal Register on March 12, 1997, requesting comments on, among other 
things, the economic impact of, and the continuing need for, the 900-
Number Rule and the effect on the Rule of any technological or industry 
changes. The Commission also sought comments, pursuant to authority 
granted under the Telecommunications Act of 1996, on whether to expand 
the Rule to govern other similar audio information and entertainment 
services. Staff held a workshop-conference on June 19-20, 1997, during 
which members of the industry discussed issues raised in the comments, 
including billing and collection issues and possible ways to expand the 
definition of ``pay-per-call services.'' Staff is preparing a 
recommendation to the Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            03/12/97                    62 FR 11750
Comment Period End              05/12/97
Public Workshop                 06/19/97
Public Workshop                 06/20/97
Recommendation to Commission    09/08/98
Commission Action               12/00/98

Regulatory Flexibility Analysis Required: No
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Adam Cohn, Division of Marketing Practices, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3411
Email: [email protected]
  
Marianne Schwanke, Division of Marketing Practices, Bureau of Consumer 
Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3165
Email: [email protected]

RIN: 3084-AA78
_______________________________________________________________________
FEDERAL TRADE COMMISSION (FTC)                  Long-Term Actions
  
_______________________________________________________________________

4548. AMENDED FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT

Priority:  Substantive, Nonsignificant

CFR Citation:  Not yet determined

Timetable: Next Action Undetermined

Regulatory Flexibility Analysis Required: No

Government Levels Affected: State

Agency Contact: Carole Reynolds
Phone: 202 326-3230
Email: [email protected]

RIN: 3084-AA44

[[Page 62746]]

_______________________________________________________________________
FEDERAL TRADE COMMISSION (FTC)                  Completed Actions
  
_______________________________________________________________________

4549. TRADE REGULATION RULE CONCERNING THE USE OF NEGATIVE OPTION PLANS 
BY SELLERS IN COMMERCE

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 425

Legal Deadline: None

Abstract: The Trade Regulation Rule Concerning the Use of Negative 
Option Plans by Sellers in Commerce (Negative Option Rule) governs a 
type of selling technique known as a prenotification negative option 
plan. Under such a plan, a seller and a subscriber enter into a 
contractual agreement whereby the seller will periodically sell 
merchandise to the subscriber by shipping merchandise to the subscriber 
even though the subscriber has not affirmatively ordered the 
merchandise. The Negative Option Rule requires sellers who use 
prenotification negative option plans to disclose the material terms of 
the plans clearly and conspicuously in their promotional materials. The 
Rule requires, in part, that the seller send to the subscriber an 
announcement, which identifies the merchandise the seller intends to 
send to the subscriber. The seller will then send the merchandise and 
bill the subscriber for it, unless the subscriber instructs the seller 
by a certain date not to send the merchandise. A negative option plan 
will often require a subscriber to purchase a minimum quantity of 
merchandise, after which the subscriber may cancel the membership. As 
part of its systematic review of Commission rules and guides, the 
Commission has completed its review of this Rule. The Commission 
decided to retain the Rule in its present form with minor technical 
changes.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            03/31/97                    62 FR 15135
Comment Period End              06/02/97
Recommendation to Commission    06/29/98
Final Action                    08/20/98                    63 FR 44555

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Edwin Rodriguez, Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3147
Email: [email protected]

RIN: 3084-AA76
_______________________________________________________________________

4550. RULES AND REGULATIONS UNDER THE HOBBY PROTECTION ACT (SECTION 610 
REVIEW)

Priority:  Substantive, Nonsignificant

Legal Authority:  15 USC 41 et seq

CFR Citation:  16 CFR 304

Legal Deadline: None

Abstract: The Rules and Regulations under the Hobby Protection Act 
require that all imitation numismatic and imitation political items 
sold in, or imported into, the United States be marked with the word 
``Copy'' or the year of manufacture. An amendment to the Rule in 1988 
permits manufacturers of miniature numismatic items to mark the word 
``Copy'' in smaller dimensions than those required under the previous 
Rule. The Commission determined, at that time, that the amendment would 
facilitate compliance with the Rule and eliminate potential costs, in 
both time and resources, to industry and the Commission from individual 
variance applications for miniature numismatic items.
The Commission has conducted a review of this Rule under the Regulatory 
Flexibility Act, 5 USC 601 et seq., as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996. At the same time, and as 
part of its systematic review of all Commission rules and guides, the 
Commission requested comments on, among other things, the economic 
impact of, and the continuing need for, this Rule, possible conflict 
between the Rule and State, local and other Federal laws, and the 
effect on the Rule of any technological, economic, or other industry 
changes, with particular emphasis on the effect on small businesses.
Based on the record in this proceeding, the Commission has determined 
that the Rules successfully protect consumers from those who would try 
to pass off reproductions as originals and that the costs of compliance 
are not significant to either small entities or others.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            03/25/97                    62 FR 14049
Comment Period End              05/27/97
Recommendation to Commission    06/03/98
Final Action                    07/07/98                    63 FR 36555
Final Action Effective          07/07/98

Regulatory Flexibility Analysis Required: Yes
Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Neil Blickman, Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3038
Email: [email protected]

RIN: 3084-AA79
[FR Doc. 98-23556 Filed 11-06-98; 8:45 am]
BILLING CODE 6750-01-F