[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]


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Part LVII





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 (RFA), 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 follows guidelines and procedures 
issued July 10, 2001, by the Office of Management and Budget in 
accordance with the provisions of 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 RFA. The current rulemakings that are likely to have some 
impact on small entities include: (1) the Smokeless Tobacco Rules, 
16 CFR part 307; (2) the Pay-Per-Call Rule, 16 CFR part 308; (3) 
the Franchise and Business Opportunities Rule, 16 CFR part 436; (4) 
Children's Online Privacy Protection Rule, 16 CFR part 312; (5) the 
Funeral Rule, 16 CFR part 453; (6) the Trade Regulation Rule on 
Ophthalmic Practice Rules, 16 CFR part 456; (7) the Rule on 
Labeling and Advertising of Home Insulation, 16 CFR part 460; and 
(8) the rulemaking begun pursuant to title V section 501(b) of the 
Gramm-Leach-Bliley Act: Privacy of Consumer Information -- 
Security, to establish security standards to safeguard customer 
information that will be codified in 16 CFR part 314.

     In addition, the agency has responded to the optional 
information requirement that corresponds to the requirements of 
Executive Order 13132, ``Federalism'' of August 4, 1999. 64 FR 
43255 (Aug. 10, 1999). The Commission believes that none of the 
rules in this agenda has ``substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and the responsibilities 
among the various levels of government'' within the meaning of E.O. 
13132. The Commission continues to work closely with the States and 
other governmental units in its rulemaking process, which 
explicitly considers the effect of the agency's rules on these 
governmental entities.

     In addition, the agency has responded to the optional 
information requirement that corresponds to the requirements of 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution or Use'' of May 
18, 2001. 66 FR 28355 (May 22, 2001). The Commission believes that 
none of the rules in this agenda meets this E.O.'s criteria 
requiring preparation of a Statement of Energy Effects.

     The agency also is conducting reviews of the Pay-Per-Call Rule 
as provided in the Rule and of the Telemarketing Sales Rule as 
required by the Telemarketing and Consumer Fraud and Abuse 
Prevention Act, 15 USC 6101-6108. Most of the other reviews listed 
in the following agenda are being conducted as part of the 
Commission's plan 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 and regulatory reform initiatives 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, 
attorney, telephone: (202) 326-2456; e-mail: [email protected]; or G. 
Richard Gold, attorney, telephone: (202) 326-3355; e-mail: 
[email protected], Federal Trade Commission, 600 Pennsylvania Avenue NW., 
Washington, DC 20580.

By direction of the Commission.

 Donald S. Clark,

Secretary.

                                     Federal Trade Commission--Prerule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4501         Regulatory Review..................................................................     3084-AA47
4502         Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986.     3084-AA48
4503         Trade Regulation Rule on Ophthalmic Practice Rules.................................     3084-AA80
4504         Trade Regulation Rule on Funeral Industry Practices................................     3084-AA82
4505         Telemarketing Sales Rule...........................................................     3084-AA86
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[[Page 62709]]


                                  Federal Trade Commission--Proposed Rule Stage
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4506         Premerger Notification Rules and Report Form.......................................     3084-AA23
4507         Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation...     3084-AA60
4508         Trade Regulation Rule on Franchising and Business Opportunity Ventures.............     3084-AA63
4509         Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution       3084-AA78
            Act of 1992.........................................................................
4510         Trade Regulation Rule Concerning Power Output Claims for Amplifiers Utilized in         3084-AA81
            Home Entertainment Products.........................................................
4511         Privacy of Consumer Information--Security..........................................     3084-AA87
4512         Children's Online Privacy Protection Rule..........................................     3084-AA88
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                                   Federal Trade Commission--Long-Term Actions
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4513         Amended Federal Deposit Insurance Corporation Improvement Act......................     3084-AA44
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Trade Commission (FTC)                            Prerule Stage


  



_______________________________________________________________________




4501. 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 continuing its review of current rules and 
guides to identify any that should be modified or rescinded. In January 
of each year, the Commission announces the rules and guides to be 
reviewed in that year. For example, on January 19, 2000, the Commission 
published a notice in the Federal Register listing the rules and guides 
to be reviewed during 2000 and the staff contact person for information 
about each review. 65 FR 2912. The Commission is currently devoting 
significant resources to both rulemakings required by statute and 
completing rule and guide reviews previously announced. See 65 FR 
73531. Accordingly, the Commission did not issue a separate notice for 
2001. The Commission will continue to consider ways to streamline and 
improve the review program. Early next year, the Commission plans to 
announce the rules and guides it will review in 2002. 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 2000                  01/19/00                     65 FR 2912
Notice of Rules and Guides to 
Review in 2002                  01/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

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

RIN: 3084-AA47
_______________________________________________________________________




4502. 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 Act directs the Commission to issue implementing 
Rules governing the format and display of the warnings. On November 4, 
1986, the Commission issued its Rules setting out the provisions for 
the size, color, typeface, and rotation of the statutory warnings. In 
FY 2000, the Commission undertook a periodic review of the Rules. The 
purpose of the review was to determine whether the Rules continue to 
effectively meet the goals of the Act and to seek information 
concerning the Rules or economic impact of the Rules in order to decide 
whether it should be amended. Staff plans to forward its 
recommendations to the Commission shortly.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Recommendation to the Commission 
Regarding ANPRM (Regulatory 
Review)                         01/27/00
ANPRM (Regulatory Review)       03/07/00                    65 FR 11944
Comment Period End (Regulatory 
Review)                         04/24/00
Comment Period Extended 
(Regulatory Review)             05/08/00                    65 FR 26534

[[Page 62710]]

Extended Comment Period End 
(Regulatory Review)             07/21/00
Reopening and Extension of 
Comment Period                  10/13/00                    65 FR 60899
Extended Comment Period End     10/16/00
Recommendation to Commission 
(Regulatory Review)             11/00/01
Commission Action               05/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Rosemary Rosso, Attorney, Federal Trade Commission, 
Division of Advertising Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-2174
Email: [email protected]

RIN: 3084-AA48
_______________________________________________________________________




4503. 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 retain the Rule or initiate a rulemaking to revise or 
repeal it.

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    02/00/02
Commission Action               05/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kial Young, Federal Trade Commission, Division of 
Advertising Practices, Bureau of Consumer Protection, Washington, DC 
20580
Phone: 202 326-3525
Email: [email protected]

RIN: 3084-AA80
_______________________________________________________________________




4504. 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 (Funeral Rule or 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 scheduled a review of the Rule in 1999,under 
its ten-year schedule for reviewing all Commission rules and guides. 
The Commission published a notice soliciting public comment in May 
1999. In response to requests of industry members and consumer groups, 
the Commission extended the comment period. Commission staff conducted 
a public workshop conference on November 18, 1999, to discuss and 
explore openly issues raised in written comments. Staff is evaluating 
the comments and preparing a recommendation to the Commission.

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                    64 FR 35965
Public Workshop                 11/18/99                    64 FR 56717
Recommendation to Commission    02/00/02
Commission Action               05/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: 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
_______________________________________________________________________




4505. TELEMARKETING SALES RULE

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 6101 to 6108

CFR Citation: 16 CFR 310

[[Page 62711]]

Legal Deadline: Other, Statutory, December 31, 2000, Rule Review and 
Report to Congress.

Abstract: In 1995, the Commission issued the Telemarketing Sales Rule 
(Rule), 16 CFR part 310, under the Telemarketing and Consumer Fraud and 
Abuse Prevention Act, 15 USC 6101-6108. The Rule requires telemarketers 
to disclose information; prohibits misrepresentations; limits the times 
telemarketers may call consumers; prohibits calls to a consumer who has 
asked not to be called again; and sets payment restrictions for the 
sale of certain goods and services.
As required by the Act, the Commission is reviewing the Rule to 
evaluate the Rule's operation and report to Congress. The Commission 
has issued a request for public comment on the Rule, its overall costs, 
benefits and its regulatory and economic impact since its adoption in 
1995. The Commission also held a public forum on January 11, 2000, 
addressing the operation of the Rule's ``do-not-call'' provision. 
Another public forum to discuss other provisions of the Rule was held 
on July 27-28, 2000. Public forums provide the Commission staff and 
interested parties an opportunity to discuss these issues and any other 
topics that emerge from the public comments.
Staff plans to complete its review and forward its recommendations to 
the Commission this fall.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Announcement of Public Forum re: 
``Do-Not-Call'' Provision       11/24/99                    64 FR 66124
Public Forum re ``Do-Not-Call'' 
Provision                       01/11/00
Request for Comments            02/28/00                    65 FR 10428
End Comment Period              04/27/00
Extension of Comment Period     05/05/00                    65 FR 26161
End Extended Comment Period     05/30/00
Public Forum                    07/27/00
Public Forum                    07/28/00
Recommendation to Commission    11/00/01
Commission Action               12/00/01

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Catherine Harrington-McBride, Attorney, Federal Trade 
Commission, Division of Marketing Practices, Bureau of Consumer 
Protection, Washington, DC 20580
Phone: 202 326-2452
Email: [email protected]

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

RIN: 3084-AA86
_______________________________________________________________________


Federal Trade Commission (FTC)                      Proposed Rule Stage






_______________________________________________________________________




4506. 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 (Rules) and the Antitrust 
Improvements Act Notification and Report Form (HSR 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 HSR Form on 
June 14, 1994. 59 FR 30545.
The Commission has issued Interim Rules based on comments received in 
response to this Notice, as well as on some changes in HSR reporting 
requirements necessitated by the recent amendments to Section 7(A) of 
the Clayton Act. The President signed the statutory amendments into law 
on December 21, 2000. Both the statutory amendments and the interim 
rules became effective on February 1, 2001. The Commission also 
published a notice of proposed rulemaking (NPRM) updating examples in 
several rules and revising others. The comment period for the interim 
rules and the NPRM ended on March 19, 2001. In addition, changes 
requiring the use of the North American Industrial Classification 
System (NAICS) to replace the Standard Industrial Classification (SIC) 
codes in completing items 5-8 on the HSR Form were made effective July 
1, 2001. Staff expects to propose additional changes by the winter.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM (Rule Changes)             02/01/01                     66 FR 8722
Interim Rule I (Statutory 
Changes)                        02/01/01                     66 FR 8679
Interim Rule II (Rules of 
Practice)                       02/01/01                     66 FR 8720
Comment Period End (Interim and 
Proposed Rules)                 03/19/01
NPRM (Change from SIC to NAICS) 05/09/01                    66 FR 23561
Effective Date (Change from SIC 
to NAICS)                       07/01/01
NPRM (Additional Rule Changes)  05/00/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Marian Bruno, Assistant Director, Federal Trade 
Commission, Premerger Notification Office, Washington, DC 20580
Phone: 202 326-2846

[[Page 62712]]

Email: [email protected]

RIN: 3084-AA23
_______________________________________________________________________




4507. 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 (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 
nonsubstantive 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 is considering the comments recommending 
that the Commission adopt substantive revisions to the Rule. In 
response to the comments received, the Commission issued an advance 
notice of proposed rulemaking (ANPRM) seeking comment on whether it 
should initiate a rulemaking proceeding to amend the Rule. In the 
ANPRM, the Commission proposed amendments to recognize technological 
advances in R-Value testing and specimen preparation procedures, and to 
clarify and streamline the Rule's requirements. The comment period on 
the ANPRM ended on November 15, 1999. Based on the ANPRM record, the 
Commission will determine whether to initiate a rulemaking proceeding.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/06/95                    60 FR 17492
Commission Action/Part I        03/28/96                    61 FR 13659
Commission Action/ANPRM         09/01/99                    64 FR 48023
Comment Period End              11/15/99
Recommendation to Commission    02/00/02
Commission Action               05/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Hampton Newsome, Attorney, Federal Trade Commission, 
Division of Enforcement, Bureau of Consumer Protection, Washington, DC 
20580
Phone: 202 326-2889
Email: [email protected]

RIN: 3084-AA60
_______________________________________________________________________




4508. 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. On October 22, 1999, 
the Commission published a notice of proposed rulemaking (NPRM) with a 
text of the revised Rule. Comments were accepted until December 21, 
1999, and rebuttal comments were accepted until January 31, 2000. 
Commission staff is now analyzing the comments and will prepare a staff 
report.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           02/28/97                     62 FR 9115
Comment Period End              12/31/97                    62 FR 28822
Recommendation to Commission    03/26/99
NPRM                            10/22/99                    64 FR 57293
NPRM Comment Period End         12/21/99
NPRM Rebuttal Comment Period End01/31/00
Staff Report                    06/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: State

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

[[Page 62713]]

Email: [email protected]

RIN: 3084-AA63
_______________________________________________________________________




4509. 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 Pay-Per-Call or 
900-Number Rule (Rule) became effective on November 1, 1993. TDDRA 
granted the Commission limited jurisdiction over common carriers for 
purposes of the Rule. The Rule requires that advertisements for 900-
numbers contain certain disclosures; requires 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 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 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 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 early next 
year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            03/12/97                    62 FR 11749
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 58523
Comment Period Extended         01/04/99                       64 FR 61
Comment Period End              01/08/99
Public Workshop-Conference      02/25/99
Extended Comment Period End     03/10/99
Public Workshop-Conference Date 
Rescheduled                     05/20/99
Recommendation to Commission    01/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Elizabeth Hone, Attorney, Federal Trade Commission, 
Division of Marketing Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3207
Email: [email protected]

Marianne K. Schwanke, Attorney, Federal Trade Commission, Division of 
Marketing Practices, Bureau of Consumer Protection, Washington, DC 
20580
Phone: 202 326-3165
Email: [email protected]

RIN: 3084-AA78
_______________________________________________________________________




4510. 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

[[Page 62714]]

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.
To determine whether changes in technology that occurred since the Rule 
was issued necessitated any Rule revisions, the Commission requested 
comments on the Rule. Among other things, the Commission asked about 
the economic impact of, and the continuing need for, this Rule; and any 
possible conflict between the Rule and State, local and other Federal 
laws. 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 
ANPRM seeking comment on whether it should amend the Rule. Based on the 
ANPRM record, the Commission issued an NPRM to seek public comment on 
whether the Commission should amend the Rule to reduce the 
preconditioning power output requirement from one-third of rated power 
to a lower figure; 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. Based on 
the NPRM record, the Commission amended the Rule as proposed in the 
NPRM. At the same time, the Commission issued a supplemental notice of 
proposed rulemaking (SNPRM) to seek public comment on proposed testing 
procedures for ``home theater'' receivers with five or more channels. 
The comment period for the SNPRM ended on March 30, 2001. Staff plans 
to forward its recommendation to the Commission this fall and 
anticipates Commission action before the end of the calendar year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            04/07/97                    62 FR 16500
Comment Period End              06/06/97
ANPRM                           07/09/98                    63 FR 37238
Final Rule (Nonsubstantive 
Technical Changes)              07/09/98                    63 FR 37234
Comment Period End              09/08/98
NPRM                            07/19/99                    64 FR 38610
Comment Period End              10/15/99                    64 FR 51087
SNPRM                           12/22/00                    65 FR 80798
Commission Action (Final Rule)  12/22/00                    65 FR 81232
Comment Period End              02/23/01
Reopen Comment Period           03/01/01                    66 FR 12915
Comment Period End              03/30/01
Recommendation to Commission    11/00/01
Commmission Action              12/00/01

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

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

RIN: 3084-AA81
_______________________________________________________________________




4511. PRIVACY OF CONSUMER INFORMATION--SECURITY

Priority: Other Significant

Legal Authority: PL 106-102, sec 501(b)

CFR Citation: 16 CFR 314

Legal Deadline: None

Abstract: On November 12, 1999, the Gramm-Leach-Bliley Act (G-L-B) was 
enacted. The Act repealed the key provision of the Glass-Steagall Act, 
that among other things, required the separation of banking, insurance, 
and securities institutions. Subtitle A (Disclosure of Nonpublic Person 
Information) of Title V (Privacy) limits the ability of the newly-
authorized financial institutions to disclose nonpublic personal 
information about consumers to nonaffiliated third parties, and 
requires them to disclose to consumers their privacy policies and 
practices respecting information shared with both affiliates and 
nonaffiliated third parties. The Commission issued the statutorily 
mandated Rule on the Privacy of Consumer Financial Information (Privacy 
Rule), 16 CFR part 313, on May 12, 2000. The Privacy Rule took effect 
on November 13, 2000, and full compliance was required on or before 
July 1, 2001.
In addition to the Privacy Rule, Section 501 of Subtitle A requires the 
agencies to establish appropriate standards for financial institutions 
to safeguard nonpublic personal information. In particular, section 
501(b) of the Act requires the Commission to ``establish appropriate 
standards for the financial institutions [subject to its jurisdiction] 
relating to administrative, technical, and physical safeguards.'' 
Section 501(b) sets out the objectives of these standards: (1) to 
insure the security and confidentiality of customer records and 
information; (2) to protect against any anticipated threats or hazards 
to the security or integrity of such records; and (3) to protect 
against unauthorized access to or use of such records of information 
which could result in substantial harm or inconvenience to any 
customer. On September 7, 2000, the Commission issued an advance notice 
of proposed rulemaking (ANPRM) and a request for comments reopening its 
Safeguards Rule (to be codified at part 314). On August 7, 2001, the 
Commission published an NPRM. This comment period ended on October 9, 
2001. Staff plans to forward its recommendation to the Commission early 
next year.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM and Request for Comments  09/07/00                    65 FR 54186
Extension of Comment Period     10/06/00                    65 FR 59766
Comment Period End              10/10/00
Extended Comment Period End     10/24/00
Commission Action               07/30/01
NPRM                            08/07/01                    66 FR 41162
NPRM Comment Period End         10/09/01
Recommendation to Commission    01/00/02

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Laura D. Berger, Attorney, Federal Trade Commission,

[[Page 62715]]

Division of Financial Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3224
Email: [email protected]

RIN: 3084-AA87
_______________________________________________________________________




4512.   CHILDREN'S ONLINE PRIVACY PROTECTION RULE

Priority: Other Significant

Legal Authority: 15 USC 6501 et seq

CFR Citation: 16 CFR 312

Legal Deadline: None

Abstract: As part of the effort to protect children's online privacy, 
Congress enacted the Children's Online Privacy Act of 1998, 15 USC 6501 
et seq. (COPPA), to prohibit unfair or deceptive acts or practices in 
connection with the collection, use, or disclosure of personally 
identifiable information from children on the Internet. On October 20, 
1999, the Commission issued its final Rule implementing COPPA, which 
became effective on April 21, 2000. See 16 CFR Part 312. The Rule 
imposes certain requirements on operators of websites or online 
services directed to children under thirteen years of age, or other 
websites or online services that have actual knowledge that they have 
collected information from a child under thirteen years of age. Among 
other things, the Rule requires that website operators obtain 
verifiable parental consent prior to collecting, using, or disclosing 
personal information from children under thirteen years of age.
The Rule provides that, ``[a]ny 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.'' 16 CFR 312.5(b)(1). In order to allow time for reliable 
electronic methods of verification to become widely available and 
affordable, the Rule sets forth a sliding scale approach for obtaining 
verifiable parental consent, which depends upon the reason the personal 
information is collected. The sliding scale was set to expire on April 
21, 2002, at which time website operators must obtain verifiable 
parental consent using the more reliable methods set out by the Rule 
for all uses of personal information. 16 CFR 312.5(b)(2).
At the time it issued the final Rule, the Commission anticipated that 
the sliding scale was necessary only in the short term because the more 
reliable methods of obtaining verifiable parental consent would soon be 
widely available and affordable. At the present time, however, it 
appears that the expected progress in available technology has not 
occurred. The Commission therefore proposes to amend the Rule to extend 
the sliding scale mechanism for an additional two years to April 21, 
2004. The Commission requests comment on the proposed extension and 
several questions concerning the current and anticipated availability 
and affordability of secure electronic mechanisms or infomediary 
services for obtaining parental consent.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            10/31/01                    66 FR 54963
NPRM Comment Period End         11/30/01

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kial Young, Federal Trade Commission, Division of 
Advertising Practices, Bureau of Consumer Protection, Washington, DC 
20580
Phone: 202 326-3525
Email: [email protected]

Mamie Kresses, Federal Trade Commission, Division of Advertising 
Practices, Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, 
Washington, DC 20580
Phone: 202 326-2070
Email: [email protected]

Elizabeth Delaney, Federal Trade Commission, Division of Advertising 
Practices, Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, 
Washington, DC 20580
Phone: 202 326-2903
Email: [email protected]

RIN: 3084-AA88
_______________________________________________________________________


Federal Trade Commission (FTC)                        Long-Term Actions


  



_______________________________________________________________________




4513. 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
[FR Doc. 01-23874 Filed 11-30-01; 8:45 am]
BILLING CODE 6750-01-S
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