[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 65457]]

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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 Pub. L. 104-121, 110 
Stat. 847. The Commission's agenda observes guidelines and procedures 
issued July 21, 1999, 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). 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 Federal Trade Commission's Statement of Regulatory Priorities is 
included in part II.

     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, 16CFR part 307; (2)the Trade Regulation Rule Pursuant to the 
Telephone Disclosure and Dispute Resolution Act of 1992, 16CFR part 
308; (3) the Children's Online Privacy Protection Rule, 16 CFR part 
312; (4) the Trade Regulation Rule on Care Labeling of Textile 
Wearing Apparel and Certain Piece Goods as amended, 16 CFR part 
423; (5) the Trade Regulation Rule on Disclosure Requirements and 
Prohibitions Concerning Franchising and Business Opportunity 
Ventures, 16 CFR part 436; (6) the Trade Regulation Rule on Funeral 
Industry Practices, 16 CFR part 453; (7) the Trade Regulation Rule 
on Ophthalmic Practice Rules, 16 CFR part 456; and (8) the Trade 
Regulation Rule on Labeling and Advertising of Home Insulation, 16 
CFR part 460. 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 
ten years. These reviews incorporate and expand upon the review 
required by the Regulatory Flexibility Act. The Commission's ten-
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 Cynthia Hogue 
Levy, Attorney, Federal Trade Commission, 600 Pennsylvania Avenue NW., 
Washington, DC 20580, telephone: (202) 326-2158; e-mail: [email protected].

By direction of the Commission.

 Donald S. Clark,

Secretary.

                                                  Prerule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4507         Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986.     3084-AA48
4508         Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation...     3084-AA60
4509         Trade Regulation Rule on Funeral Industry Practices................................     3084-AA82
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                                               Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4510         Premerger Notification Rules and Report Form.......................................     3084-AA23
4511         Regulatory Review..................................................................     3084-AA47
4512         The Care Labeling Rule.............................................................     3084-AA54
4513         Trade Regulation Rule on Franchising and Business Opportunity Ventures.............     3084-AA63
4514         Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution       3084-AA78
            Act of 1992.........................................................................
4515         Trade Regulation Rule on Ophthalmic Practice Rules.................................     3084-AA80
4516         Trade Regulation Rule Concerning Power Output Claims for Amplifiers Utilized in         3084-AA81
            Home Entertainment Products.........................................................

[[Page 65459]]

 
4517         Appliance Labeling Rule............................................................     3084-AA83
4518         Children's Online Privacy Protection Rule Pursuant to the Children's Online Privacy     3084-AA84
            Protection Act of 1998..............................................................
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                                                Long-Term Actions
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4519         Amended Federal Deposit Insurance Corporation Improvement Act......................     3084-AA44
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                                                Completed Actions
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4520         Rule Governing Disclosure of Written Consumer Product Warranty Terms and Conditions     3084-AA72
4521         Rule Governing the Pre-Sale Availability of Written Warranty Terms.................     3084-AA73
4522         Rule Governing Informal Dispute Settlement Procedures..............................     3084-AA75
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Federal Trade Commission (FTC)                            Prerule Stage


  



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4507. 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. In FY99, the 
Commission will undertake a periodic review of the regulations. It will 
seek information concerning the regulatory and economic impact of the 
Rule, in order to decide whether it should be modified or rescinded.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Recommendation to the Commission 
Regarding ANPRM (Regulatory 
Review)                         11/00/99
ANPRM (Regulatory Review)       12/00/99
Comment Period End (Regulatory 
Review)                         02/00/00

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

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
_______________________________________________________________________




4508. TRADE REGULATION RULE CONCERNING THE LABELING AND ADVERTISING OF 
HOME INSULATION

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 41 et seq

[[Page 65460]]

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. The Commission is considering the comments 
received in two parts. In part I, the Commission reviewed 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
Comment Period End              06/06/95
Commission Action/Part I        03/28/96                    61 FR 13659
Commission Action/ANPRM         09/01/99                    64 FR 48024
Comment Period End              11/15/99

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

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

RIN: 3084-AA60
_______________________________________________________________________




4509. 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 responded 
to requests to address emerging issues in the funeral industry by 
beginning a review of the Rule in 1998. The Commission previously had 
determined to schedule a review of the Rule in 1999, in accordance with 
its ten-year schedule for reviewing all Commission rules and guides. 
The Commission published a notice soliciting public comment earlier 
this year. In response to requests of industry members and consumer 
groups, the Commission determined to extend the comment period. 
Commission staff will conduct a public workshop conference this Fall to 
discuss and explore openly issues raised in written comments.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Recommendation to Commission 
Regarding Initial Notice for 
Comment                         04/17/99
Initial Notice for Public 
Comment                         05/05/99                    64 FR 24249
Close of Comment Period 
(Extended)                      08/11/99
Public Workshop                 11/18/99
Recommendation to Commission    05/00/00

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

Agency Contact: Mercedes Kelley, Attorney, Federal Trade Commission, 
Division of Marketing Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3665
Email: [email protected]

Myra Howard, Attorney, Federal Trade Commission, Division of Marketing 
Practices, Bureau of Consumer Protection, Washington, DC 20580
Phone: 202 326-2047
Email: [email protected]

RIN: 3084-AA82

[[Page 65461]]

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Federal Trade Commission (FTC)                      Proposed Rule Stage


  



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4510. 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. 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 orders. The comment period ended July 
27, 1998. No comments were received. The Commission proposed 
modifications to the Premerger Notification and Report Form on June 14, 
1994. 59 FR 30545. Based on comments received in response to the 
Notice, as well as other input from interested parties, the enforcement 
agencies are continuing their review of the Form. If warranted, the 
Commission may propose further modifications and/or republish the 1994 
proposed modifications and offer an additional comment period before 
changing the Form.

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
Final Rule with Request for 
Comments (802.70)               06/25/98                    63 FR 34592
Comment Period End (802.70)     07/27/98
NPRM (HSR Form Changes)         09/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Additional Information: RFA: N

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

RIN: 3084-AA23
_______________________________________________________________________




4511. 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 program to review all current 
rules and guides to identify any that should be modified or rescinded. 
Under the review program, the Commission will review a portion of its 
rules and guides each year, on a revolving ten-year schedule. On 
January 25, 1999, the Commission published a notice in the Federal 
Register listing the rules and guides to be reviewed during 1999 and 
the staff contact person for information about each review. 64 FR 3668. 
The Commission thereafter published separate notices in the Federal 
Register for the rules and guides to be reviewed during 1999, 
soliciting comments about their costs and benefits and regulatory and 
economic impact. Early next year, the Commission will publish a list of 
additional rules and guides it will review in 2000. 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 may also address other specific matters or 
issues, such as proposed amendments.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Notice of Rules and Guides to 
Review in 1999                  01/25/99                     64 FR 3668
Notice of Rules and Guides to 
Review in 2000                  01/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Additional Information: RFA: N

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

RIN: 3084-AA47
_______________________________________________________________________




4512. THE CARE LABELING RULE

Priority: Other Significant

Reinventing Government: This rulemaking is part of the Reinventing 
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 and requires 
that the manufacturer or importer possess a

[[Page 65462]]

reasonable basis for the care instructions. On July 1, 1997, a 
conditional exemption became effective, allowing the use of the symbol 
system developed by the American Society for Testing and Materials on 
care labels. On December 28, 1995, the Commission published 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. An NPRM 
relating to these possible substantive changes was published on May 8, 
1998; the comment period ended on July 27, 1998. The NPRM proposed 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 proposed 
that the Rule be amended to allow for labeling for the relatively new 
process known as ``professional wet cleaning.'' Finally, the NPRM 
proposed a change in the definition of ``reasonable basis'' in the 
Rule, and in the definitions of water temperature. A workshop for 
interested parties to discuss the issues raised by the NPRM was held on 
January 29, 1999. A final rule and/or a second NPRM will be published 
in the near future.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           12/28/95                    60 FR 67102
ANPRM Comment Period End        03/13/96
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
Workshop                        01/29/99
Recommendation to Commission/
NPRM and Final Rule             01/00/00
Final Rule and/or Second NPRM   01/00/00

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

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
_______________________________________________________________________




4513. 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. On February 28, 1997, the Commission 
published an Advance Notice of Proposed Rulemaking (ANPRM) 
contemplating amendments that would address any new technologies and 
market practices and at the same time, reduce 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. Six public workshops were 
held 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 ANPR procedure 
has been completed and staff has forwarded a recommendation to the 
Commission.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           02/28/97                     62 FR 9115
Comment Period End              12/31/97                    62 FR 28824
Recommendation to Commission    03/26/99
NPRM                            10/22/99                    64 FR 57293
NPRM Comment Period End         12/21/99

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: State

Additional Information: RFA: N

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
_______________________________________________________________________




4514. TRADE REGULATION RULE PURSUANT TO THE TELEPHONE DISCLOSURE AND 
DISPUTE RESOLUTION ACT OF 1992

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 5701 et seq; 15 USC 5714(1)

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 mandated that 
the FTC promulgate a rule to curb these practices; the 900-Number Rule 
became effective on November 1, 1993. TDDRA granted the Commission 
limited jurisdiction over common carriers for purposes of the 900-
Number Rule. 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. The Rule itself required the Commission to 
initiate a review of the

[[Page 65463]]

Rule 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 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.'' 
Many commenters reported that the 900-Number Rule has been successful 
in reducing the abuses that led to the passage of TDDRA. Despite the 
success of the Rule in correcting the abuses in the 900-number 
industry, complaints about other types of audiotext services (accessed 
via dialing patterns other than 900 numbers) are being reported. The 
majority of complaints now involve 800 numbers, international numbers, 
or other dialing patterns that do not use the 900-number prefix. Many 
consumer and law enforcement agencies also have been receiving 
complaints from consumers who have discovered unexplained charges (in 
some cases, recurring charges) on their telephone bills for services 
that were never authorized, ordered, received, or used, a practice 
known as ``cramming.'' On October 30, 1998, the Commission published an 
NPRM that would expand the definition of ``pay-per-call'' services 
beyond 900 numbers and that would implement measures to combat 
telephone bill cramming. The proposed revisions would (1) require the 
express authorization of the person to be billed for the purchase of 
any ``telephone-billed purchases'' that cannot be blocked by 900-number 
blocking; (2) prohibit vendors from billing consumers for monthly or 
other recurring charges for pay-per-call services unless the vendor had 
entered into a ``presubscription agreement'' with the person to be 
billed and had sent the consumer a written copy of the agreement; and 
(3) give consumers legal recourse to dispute unauthorized charges 
crammed on phone bills and have those charges removed. The comment 
period was extended to March 10, 1999, and the workshop-conference was 
held on May 20-21, 1999. At the workshop, participants discussed issues 
raised by the comments, such as the meaning of ``express 
authorization'' and the requirements for a presubscription agreement. 
Staff plans to forward a recommendation to the Commission for a final 
rule later this year.

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
NPRM                            10/30/98                    63 FR 58524
Comment Period End              01/08/99
Public Workshop-Conference      02/25/99
Comment Period Extended         03/10/99
Public Workshop-Conference Date 
Rescheduled                     05/20/99
Recommendation for Final Rule to 
Commission                      12/00/99

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 K. 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
_______________________________________________________________________




4515. 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 the patient, at no extra cost, 
a copy of the eyeglass prescription immediately after the examination 
is completed. The Rule also 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 has requested comments on 
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    12/00/99

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

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

RIN: 3084-AA80


_______________________________________________________________________



[[Page 65464]]

4516. 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. Based upon the regulatory review, the Commission 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 seeking comment on 
whether it should initiate a rulemaking proceeding to amend the Rule to 
reduce the preconditioning power output requirement from one-third of 
rated power to a lower figure, such as one-eighth of rated power; 
exempt sellers who make power output claims in media advertising from 
the requirement to disclose total rated harmonic distortion and the 
associated power bandwidth and impedance ratings; and clarify the 
manner in which the Rule's testing procedures apply to self-powered 
subwoofer-satellite combination speaker systems. The comment period for 
the ANPRM ended on September 8, 1998. Based on the ANPRM record, and 
the staff's recommendation, the Commission has determined to initiate a 
rulemaking proceeding by issuing an NPRM to seek further public comment 
on the aforementioned issues.

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    04/27/99
NPRM                            07/19/99                    64 FR 38610
Comment Period End              09/17/99
Recommendation to Commission    01/00/00

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
_______________________________________________________________________




4517. APPLIANCE LABELING RULE

Priority: Substantive, Nonsignificant

Legal Authority: 42 USC 6294 sec 324

CFR Citation: 16 CFR 305

Legal Deadline: None

Abstract: The Commission issued the Appliance Labeling Rule on November 
19, 1979, pursuant to section 324 of title III of the Energy Policy and 
Conservation Act of 1975, 42 USC 6294. The Rule requires manufacturers 
to disclose energy information about major household appliances to 
enable consumers who purchase appliances to compare the energy use or 
efficiency of competing models. The Rule applies to most types of major 
household appliance categories, including the category of ``clothes 
washers.'' There are also requirements that apply to fluorescent light 
ballasts, certain types of lighting products, and certain plumbing 
products. When the Commission published the Rule in 1979, the clothes 
washer category in appendix F was divided into subcategories 
``Standard'' and ``Compact.'' In 1994, the Commission amended appendix 
F to create additional subdivisions of ``Top Loading'' and ``Front 
Loading.'' These subdivisions were created primarily to allow consumers 
to compare the energy efficiency of washers within those subdivisions. 
The technologies of the two types of washers were different and front-
loading clothes washers were generally much more energy-efficient than 
top-loading clothes washers. Also, most consumers who shopped for one 
type of machine were not interested in purchasing the other type of 
machine. Since that time, consumer research has shown that a 
significant portion of consumers who shop for clothes washers now 
consider both types of machines. Also, technological advances in the 
clothes washer industry have begun to soften the distinction between 
front-loading and top-loading subdivisions. The Department of Energy 
(DOE), which is responsible for establishing standardized tests for 
these appliances, is considering eliminating the separate categories 
from its testing and standards program, and has requested that the 
Commission consider eliminating the top-loading and front-loading 
subcategories. Eliminating these subcategories would also be consistent 
with the Canadian EnerGuide appliance labeling program, and thus, the 
North American Free Trade Agreement (NAFTA) goals of reducing or 
eliminating non-tariff barriers to trade, e.g., labeling requirements). 
Therefore, the Commission requested public comments on a proposal to 
eliminate the top-loading and front-loading categories.


[[Page 65465]]


The Commission also has requested public comments on a proposal to 
grant manufacturers of qualifying appliances a conditional exemption 
from the Rule's prohibition against including any information not 
specified by the Rule to be placed on the EnergyGuide labels required 
by the Rule. Manufacturers of all covered appliances must disclose 
specific energy consumption or efficiency information in the form of an 
EnergyGuide label that is affixed to the product. No other marks may 
appear on or adjoin this label except as stated by the Rule. Currently, 
the ENERGY STAR Program, developed by the Environmental Protection 
Agency (EPA) in conjunction with DOE allows an ENERGY STAR logo to be 
placed on qualifying products or on an ENERGY STAR label or fact sheet 
associated with the product. The initials EPA and DOE both appear on 
the logo, the use of which indicates significantly better energy 
performance than a specified norm (DOE's minimum efficiency standards, 
in the case of appliances and HVAC equipment), or the incorporation of 
a specific energy saving feature on the product. The conditional 
exemption would allow a single, combined label (an ``augmented'' 
EnergyGuide) only on appliances and equipment that meet the ENERGY STAR 
Program qualification criteria. Among other things, a single label 
would allow manufacturers to reduce their costs, and would be less 
confusing to consumers than multiple labels relating to energy use. The 
Commission is also proposing a non-substantive amendment to the Rule to 
include the words ``Federal Trade Commission'' on all EnergyGuide 
labels so that consumers and others will be clear as to the identity of 
the agency with the authority to enforce the Rule.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM (Clothes Washers)          11/02/98                    63 FR 58671
NPRM (Conditional Exemption)    11/24/98                    63 FR 64921
Comment Period End (Conditional 
Exemption)                      12/17/98
Comment Period End (Clothes 
Washers)                        01/08/99
Recommendation to Commission 
(Conditional Exemption)         12/00/99
Recommendation to Commission 
(Clothes Washers)               01/00/00
Commission Action (Conditional 
Exemption)                      02/00/00
Commission Action (Clothes 
Washers)                        02/00/00

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Additional Information: RFA: N

Agency Contact: James Mills, Attorney, Division of Enforcement, Federal 
Trade Commission, Washington, DC 20580
Phone: 202 326-3035
Email: [email protected]

RIN: 3084-AA83
_______________________________________________________________________




4518.  CHILDREN'S ONLINE PRIVACY PROTECTION RULE PURSUANT TO THE 
CHILDREN'S ONLINE PRIVACY PROTECTION ACT OF 1998

Priority: Other Significant

Legal Authority: PL 105-277, Sec. 1301-1308

CFR Citation: 16 CFR 312

Legal Deadline: Final, Statutory, October 21, 1999, Promulgation of 
Rule.

Abstract: Congress enacted the Children's Online Privacy Protection Act 
(``COPPA'' or ``the Act'') on October 21, 1998, to provide a means for 
parents to control the flow of their children's personal information 
over the Internet. The Act directs the FTC to adopt regulations, within 
one year after enactment of the Act, that prohibit unfair and deceptive 
acts and practices in connection with the collection and use of 
personal information from and about children on the Internet. Earlier 
this year, the Commission published an NPRM and solicited public 
comment on a proposed rule. The proposed rule, with certain exceptions, 
requires commercial web sites and online service providers directed to 
children who knowingly collect personal information from children to 
obtain verifiable parental consent before collecting, using, or 
disclosing such information. The proposed rule asserts that ``[a]n 
operator must make reasonable efforts to obtain verifiable parental 
consent, taking into consideration available technology. Any method to 
obtain verifiable parental consent must be reasonably calculated, in 
light of available technology, to ensure that the person providing 
consent is the child's parent.'' Operators subject to the proposed rule 
are required to post prominent links on their websites to a notice of 
how they collect and use personal information from children. Under the 
proposed rule, parents must be given the opportunity to prohibit 
operators from disclosing their child's personal information to third 
parties. In addition, the Act requires operators to give parents the 
opportunity to review and make changes to any personal information 
provided by their child, and, at any time, require the operator to 
delete their child's information and prevent the operator from any 
further collection of personal information. The COPPA contains a 
requirement that operators not condition a child's participation in 
online activities on the provision of more personal information than is 
reasonably necessary to participate in those activities. Operators are 
also required under the Act to establish procedures to protect the 
confidentiality, security, and integrity of the personal information 
they collect online from children. In addition, the Act establishes a 
safe harbor program for industry groups or others who wish to create 
self-regulatory programs to govern participants' compliance with the 
Act. Operators who participate in such Commission-approved programs 
will, in most circumstances, be subject to the review and disciplinary 
procedures provided in those guidelines in lieu of formal Commission 
investigation and law enforcement proceedings. Because an initial 
review of the more than 120 public comments indicated to the agency 
that the issue of how web sites can obtain ``verifiable parental 
consent'' warrants additional discussion and information gathering, a 
public workshop was scheduled for July 20, 1999. Staff has reviewed the 
public comments and information from the public workshop and has 
forwarded a recommendation to the Commission. The Commission recently 
issued a final rule which becomes effective next spring.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            04/27/99                    64 FR 22750
Comment Period Ends             06/11/99
Public Workshop                 07/20/99

[[Page 65466]]

Request for Comments to an 
Initial Regulatory Flexibility 
Analysis (IRFA)                 07/27/99                    64 FR 40525
Comment Period for IFRA Ends    08/06/99
Recommendation to Commission    09/22/99
Commission Action               10/20/99
Effective Date for New Rule     04/21/00

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Toby Milgrom Levin, Attorney, Federal Trade Commission, 
Division of Advertising Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3156
Email: [email protected]

RIN: 3084-AA84
_______________________________________________________________________


Federal Trade Commission (FTC)                        Long-Term Actions


  



_______________________________________________________________________




4519. 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
_______________________________________________________________________


Federal Trade Commission (FTC)                        Completed Actions


  



_______________________________________________________________________




4520. 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, the Rule provides that, in connection with 
``seal of approval'' programs, the disclosures are not required 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. After reviewing the record, the 
Commission determined to retain Rule 701 unchanged.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    04/03/96                    61 FR 14688
Recommendation to Commission    02/04/99
Final Action                    04/22/99                    64 FR 19700

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

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-AA72
_______________________________________________________________________




4521. 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, 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 sought comments on, among other things, the economic

[[Page 65467]]

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. After reviewing the record, the Commission determined to 
retain Rule 702 unchanged.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    04/03/96                    61 FR 14688
Recommendation to Commission    02/04/99
Final Action                    04/22/99                    64 FR 19700

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: RFA: N

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
_______________________________________________________________________




4522. 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 
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. After reviewing the record, the Commission determined 
to retain Rule 703 unchanged.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Begin Review                    01/01/97
Comment Period Extended         06/13/97                    62 FR 32338
Comment Period End              08/01/97
Recommendation to Commission    02/04/99
Final Action                    04/22/99                    64 FR 19700

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
[FR Doc. 99-25676 Filed 11-19-99; 8:45 am]
BILLING CODE 6750-01-F