[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 LVIII






Federal Trade Commission





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Semiannual Regulatory Agenda

[[Page 75610]]



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 19, 2002, 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 identified a rulemaking that is related to 
the events of September 11, 2001, because the USA PATRIOT Act, 
Pub.L. 107-56, 115 Stat. 272, amended the Telemarketing and 
Consumer Fraud and Abuse Prevention Act, 16 USC 6101-6108, and thus 
affects the Telemarketing Sales Rule, 16 CFR part 310.

     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) Smokeless Tobacco Rules, 16 
CFR part 307; (2) the Pay-Per-Call Rule, 16 CFR part 308; (3) 
Labeling Requirements for Alternative Fuels and Alternative-Fueled 
Vehicles, 16 CFR part 309; (4) the Telemarketing Sales Rule, 16 CFR 
part 310; (5) the Franchise and Business Opportunities Rule, 16 CFR 
part 436; (6) the Funeral Rule, 16 CFR part 453; (7) the Trade 
Regulation Rule on Ophthalmic Practice Rules, 16 CFR part 456; and 
(8) the Rule on Labeling and Advertising of Home Insulation, 16 CFR 
part 460.

     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 Executive Order'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 agency contact 
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
----------------------------------------------------------------------------------------------------------------
4193        Regulatory Review...................................................................     3084-AA47
4194        Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986..     3084-AA48
4195        Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation....     3084-AA60
4196        Trade Regulation Rule on Ophthalmic Practice Rules..................................     3084-AA80
4197        Trade Regulation Rule on Funeral Industry Practices.................................     3084-AA82

[[Page 75611]]

 
4198        Labeling Requirements for Alternative Fuels and Alternative-Fueled Vehicles.........     3084-AA89
----------------------------------------------------------------------------------------------------------------


                                  Federal Trade Commission--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4199        Trade Regulation Rule on Franchising and Business Opportunity Ventures..............     3084-AA63
4200        Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution        3084-AA78
            Act of 1992.........................................................................
4201        Telemarketing Sales Rule............................................................     3084-AA86
----------------------------------------------------------------------------------------------------------------


                                   Federal Trade Commission--Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4202        Privacy of Consumer Information--Security...........................................     3084-AA87
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Trade Commission (FTC)                            Prerule Stage






_______________________________________________________________________




4193. 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. The 
Commission will continue to consider ways to streamline and improve the 
review program. On March 4, 2002, the Commission published a tentative 
timetable for its regulatory review program under which all of the 
Commission's rules and guides are reviewed over a ten year period, and 
announced that it will review one rule and one guide during 2002. 67 FR 
9630 (Mar. 4, 2002). No determination about whether to modify or 
rescind a rule, 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. Finally, the 
Commission may modify the rule review timetable as circumstances 
warrant.

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                  03/04/02                     67 FR 9630
Notice of Rules and Guides to 
Review in 2003                  01/00/03

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-AA47
_______________________________________________________________________




4194. 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 advertisements 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, particularly their economic impact, in order to 
decide whether they should be amended. Staff plans to forward its 
recommendations to the Commission early next year.

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

[[Page 75612]]

Comment Period End (Regulatory 
Review)                         04/24/00
Comment Period Extended 
(Regulatory Review)             05/08/00                    65 FR 26534
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)             01/00/03
Commission Action               04/00/03

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
_______________________________________________________________________




4195. 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 by specifically 
requiring 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 the systematic review of its 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 
decided to retain the Rule with a few nonsubstantive amendments. In 
part II, the Commission is considering whether to 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 to recognize technological advances in R-Value 
testing and specimen preparation procedures, and to clarify and 
streamline the Rule's requirements. Staff is currently reviewing the 
comments and expects to forward its recommendation to the Commission 
regarding proposed substantive amendments to the Rule and anticipates 
publication of the NPRM by March 2003.

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
ANPRM Comment Period End        11/15/99
Recommendation to Commission    12/00/02
Commission Action               03/00/03

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
_______________________________________________________________________




4196. 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: Issued in 1978, 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 evaluating the comments 
received and formulating a recommendation 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              09/02/97
Recommendation to Commission    04/00/03

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

[[Page 75613]]

_______________________________________________________________________




4197. 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 decided to retain the Rule, 
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 rather than 
in 1999 as originally planned under its ten-year schedule for reviewing 
all Commission rules and guides. The Commission published a notice 
soliciting public comment in May 1999. 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    03/00/03
Commission Action               07/00/03

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
_______________________________________________________________________




4198. [bull] LABELING REQUIREMENTS FOR ALTERNATIVE FUELS AND 
ALTERNATIVE-FUELED VEHICLES

Priority: Substantive, Nonsignificant

Legal Authority: 42 USC 13232(a)

CFR Citation: 16 CFR 309

Legal Deadline: None

Abstract: The Rule, which became effective on November 20, 1995, 
requires disclosure of appropriate cost and benefit information to 
enable consumers to make reasonable purchasing choices and comparisons 
between nonliquid alternative fuels as well as alternative-fueled 
vehicles. As part of its ongoing systemic review of all Federal Trade 
Commission rules and guides, the Commission plans to request comments 
on, among other things, the continuing need for this Rule; possible 
conflict between the Rule and State, local, or other Federal laws or 
regulations; and the effect on the Rule of any technological, economic, 
or other industry changes. No Commission determination on the need for 
or the substance of the Rule should be inferred from the intent to 
publish requests for comments.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            11/00/02
Comment Period End              01/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

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]

Related RIN: Previously reported as 3084-AA57
RIN: 3084-AA89
_______________________________________________________________________


Federal Trade Commission (FTC)                      Proposed Rule Stage






_______________________________________________________________________




4199. 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 most recent 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

[[Page 75614]]

that would address new technologies and market practices and at the 
same time, reduce unnecessary regulatory burdens. The Commission 
specifically 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. 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 preparing 
a staff report.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           02/28/97                     62 FR 9115
ANPRM 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                    12/00/02

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
Email: [email protected]

RIN: 3084-AA63
_______________________________________________________________________




4200. 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 public 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 a 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 by early 
2003.

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                 05/20/99
Public Workshop                 05/21/99
Recommendation to Commission    01/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

[[Page 75615]]

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]

RIN: 3084-AA78
_______________________________________________________________________




4201. TELEMARKETING SALES RULE

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 6101 to 6108

CFR Citation: 16 CFR 310

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

Abstract: In 1995, the Commission issued the Telemarketing Sales Rule 
(TSR or Rule), 16 CFR part 310, under the Telemarketing and Consumer 
Fraud and Abuse Prevention Act, 15 USC 6101-6108. TSR 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 1995 Act, the Commission is reviewing TSR 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. As part of the review, the Commission 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 
TSR was held on July 27-28, 2000.
On October 25, 2001, President Bush signed the USA PATRIOT Act, P.L. 
107-56, into law, with provisions that have significant impact on TSR. 
Section 1101 of the 2001 Act amends the Telemarketing Act to extend the 
coverage of TSR to charitable fund raising conducted by for-profit 
telemarketers for, or on behalf of, charitable organizations.
On January 22, 2002, the Commission announced its proposal to amend the 
Rule and to publish a notice of proposed rulemaking (NPRM). Among other 
things, the proposed Rule would establish a centralized national ``do 
not call'' registry, would prohibit telemarketers from receiving or 
sharing a consumer's billing information with anyone else, and would 
prohibit telemarketers from blocking ``Caller ID'' information. In 
addition, as mandated by Sec. 1011 of the USA PATRIOT Act, also 
referred to as the Crimes Against Charitable Americans Act of 2001, 15 
USC 6101 note, the Commission's proposal would add certain disclosures 
and other requirements applicable to for-profit telemarketers who 
solicit charitable donations. Staff held a three-day public workshop 
from June 5-7, 2002, to discuss these and other proposed changes to the 
Rule. On May 24, 2002, the Commission also issued a related NPRM 
proposing that user fees be imposed on telemarketers and their seller 
or telemarketer clients for access to the national ``do not call'' 
registry in order to establish and maintain the registry. See 67 FR 
37362 (May 29, 2002) Staff plans to forward its recommendations to the 
Commission by fall 2002.

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
Comment Period End              04/27/00
Extension of Comment Period     05/05/00                    65 FR 26161
Extended Comment Period End     05/30/00
Public Forum                    07/27/00
Public Forum                    07/28/00
USA Patriot Act Enacted         10/25/01
NPRM                            01/30/02                     67 FR 4492
NPRM Comment Period End         03/29/02
Extension of Comment Period     04/03/02                    67 FR 15767
Extended Comment Period End     04/15/02
Related NPRM                    05/29/02                    67 FR 37362
Public Forum                    06/05/02
Public Forum                    06/06/02
Public Forum                    06/07/02
Related NPRM Comment Period End 06/28/02
Recommendation to Commission    11/00/02
Commission Action               12/00/02

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]

Karen Leonard, Attorney, Division of Marketing Practices, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580
Phone: 202 326-3597
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)                        Completed Actions






_______________________________________________________________________




4202. 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 (GLB) 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 
Personal Information) of title V (Privacy) limits the ability of the 
newly authorized

[[Page 75616]]

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. After analyzing over forty-four comments, 
the Commission issued its final rule on May 23, 2002. Like the 
proposal, the final rule requires each financial institution to develop 
a written information security program that is appropriate to its size 
and complexity, the nature and scope of its activities, and the 
sensitivity of the customer information at issue. The Commission 
believes that the final rule strikes an appropriate balance between 
allowing flexibility to financial institutions and establishing 
standards for safeguarding customer information that are consistent 
with GLB's requirements.

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
Commission Action/Final Rule    05/23/02                    67 FR 36483

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Laura D. Berger, Attorney, Federal Trade Commission, 
Division of Financial Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326-3224
Email: [email protected]

RIN: 3084-AA87
[FR Doc. 02-23896 Filed 12-06-02; 8:45 am]
BILLING CODE 6750-01-S
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