[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 73974]]



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 31, 2003, 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 
(Oct. 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) the Hobby Protection Rules, 
16 CFR part 304; (2) the Smokeless Tobacco Rules, 16 CFR part 307; 
(3) the Pay-Per-Call Rule, 16 CFR part 308; (4) the Labeling 
Requirements for Alternative Fuels and Alternative-Fueled Vehicles, 
16 CFR part 309; (5) the Telemarketing Sales Rule, 16 CFR part 310; 
(6) the Franchise and Business Opportunities Rule, 16 CFR part 436; 
(7) the Funeral Rule, 16 CFR part 453; (8) the Trade Regulation 
Rule on Ophthalmic Practice Rules, 16 CFR part 456; and (9) 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.

     Further, 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.'' 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.

     Most of the 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 RFA 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.

 Shira Pavis Minton,

Acting Secretary.

                                     Federal Trade Commission--Prerule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4243        Regulatory Review...................................................................    3084--AA47
4244        Regulations Under the Comprehensive Smokeless Tobacco Health Education Act of 1986..    3084--AA48
4245        Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution       3084--AA78
            Act of 1992.........................................................................
4246        Trade Regulation Rule on Ophthalmic Practice Rules..................................    3084--AA80
4247        Labeling Requirements for Alternative Fuels and Alternative--Fueled Vehicles........    3084--AA89
4248        Rules and Regulations Under the Hobby Protection Act................................    3084--AA90
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[[Page 73975]]


                                  Federal Trade Commission--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4249        Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation....    3084--AA60
4250        Trade Regulation Rule on Franchising and Business Opportunity Ventures..............    3084--AA63
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                                   Federal Trade Commission--Final Rule Stage
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4251        Premerger Notification Rules and Report Form........................................    3084--AA91
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                                  Federal Trade Commission--Long--Term Actions
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4252        Trade Regulation Rule on Funeral Industry Practices.................................    3084--AA82
----------------------------------------------------------------------------------------------------------------


                                   Federal Trade Commission--Completed Actions
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                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4253        Telemarketing Sales Rule............................................................    3084--AA86
4254        Appliance Labeling Rule.............................................................    3084--AA93
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


Federal Trade Commission (FTC)                            Prerule Stage






_______________________________________________________________________




4243. 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. 67 
FR 9630 (Mar. 4, 2002). On January 17, 2003, the Commission announced 
that it will review one rule, two guides, and the statements of general 
policy or interpretations under the Fair Credit Reporting Act during 
2003. 68 FR 2465 (Jan. 17, 2003). 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                  01/17/03                     68 FR 2465
Notice of Rules and Guides to 
Review in 2004                  01/00/04

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

[[Page 73976]]

_______________________________________________________________________




4244. 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 this 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
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)             02/00/04
Commission Action               05/00/04

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
_______________________________________________________________________




4245. 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 
2004.

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

[[Page 73977]]

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    04/00/04

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]

RIN: 3084-AA78
_______________________________________________________________________




4246. 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    04/00/04

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]

Matthew Daynard, Federal Trade Commission, Division of Advertising 
Practices, Bureau of Consumer Protection, Washington, DC 20580
Phone: 202 326--3291
Email: [email protected]

RIN: 3084-AA80
_______________________________________________________________________




4247. 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 requested comments on, 
among other things, the economic impact and benefits of 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. The Commission also requested 
comments on specific options for modifying the Rule's alternative--
fueled vehicle label in light of new Environmental Protection Agency 
tailpipe emissions standards. No Commission determination on the need 
for or the substance of the Rule should be inferred from the intent to 
publish requests for comments. The staff expects to forward its 
recommendation on a final rule to the Commission during 2003 and 
expects Commission action early in 2004.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Request for Comments            05/08/03                    68 FR 24669
Comment Period End              06/23/03
Recommendation to Commission    12/00/03
Commission Action               04/00/04

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]

RIN: 3084-AA89
_______________________________________________________________________




4248. RULES AND REGULATIONS UNDER THE HOBBY PROTECTION ACT

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 2101 et seq

CFR Citation: 16 CFR 304

Legal Deadline: None

Abstract: The Rule, which became effective on February 6, 1975; 
prescribes the required markings on imitation political and numismatic 
items, specifying the sizes and dimensions of the type, the location of 
the marking, and how to mark incusable (those that can be impressed 
with a stamp) and nonincusable items. Specifically, imitation political 
items -- such as buttons, posters, coffee mugs and the like -- must be 
marked with

[[Page 73978]]

the calendar year they were manufactured, and imitation numismatic 
items -- including coins, tokens and paper money -- must be marked with 
the word ``copy.'' As part of its ongoing systematic review of all 
Federal Trade Commission rules and guides, the Commission has requested 
public comments on, among other things, the economic impact and 
benefits of the 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. 68 FR 9856 
(Mar. 3, 2003). For example, the Federal Register notice asks for 
comments on whether changes in the relevant technology, such as e--mail 
and the Internet, affects the Rule since it was issued. No Commission 
determination on the need for or the substance of the Rule should be 
inferred from the intent to publish requests for comments. The staff 
expects to forward a recommendation to the Commission during 2003 and 
expects Commission action early in 2004.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Notice of Intent to Request 
Comments                        01/17/03                     68 FR 2465
Request for Comments            03/03/03                     68 FR 9856
Comment Period End              05/02/03
Recommendation to Commission    12/00/03
Commission Action               02/00/04

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]

RIN: 3084-AA90
_______________________________________________________________________


Federal Trade Commission (FTC)                      Proposed Rule Stage






_______________________________________________________________________




4249. 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. 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. The Commission reviewed the comments received on the 
ANPRM and issued a notice of proposed rulemaking (NPRM), which proposed 
a number of amendments to the Rule. The staff expects to forward its 
recommendation to the Commission by March 2004.

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
Request for Comments (NPRM)     07/15/03                    68 FR 41872
NPRM Comment Period End         09/22/03
Recommendation to Commission    03/00/04

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
_______________________________________________________________________




4250. 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

[[Page 73979]]

28, 1997, the Commission published an advance notice of proposed 
rulemaking (ANPRM) contemplating amendments 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                    03/00/04

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
_______________________________________________________________________


Federal Trade Commission (FTC)                         Final Rule Stage






_______________________________________________________________________




4251. 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 U.S. Department of Justice (DOJ) and to wait a designated period of 
time before consummating the transaction. It also requires the FTC, 
with the concurrence of the U.S. 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 to reduce the paperwork burden 
on the business community. The Commission proposed modifications to the 
HSR Form on June 14, 1994. 59 FR 30545.
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 
became effective on July 1, 2001.
On February 1, 2001, the Commission published interim and proposed 
rules amending the Hart--Scott--Rodino Rules (HSR Rules) contained in 
16 CFR parts 801, 802 and 803. The interim rules took effect upon 
publication and implemented statutory amendments to section 7A of the 
Clayton Act that had been enacted on December 21, 2000. The proposed 
rules set forth other changes improving and updating the HSR Rules.
Both the interim and proposed rules invited public comment. The 
Commission received seventeen public comments addressing the interim 
rules (66 FR 8679) and the proposed rules (66 FR 8723). The proposed 
rules were revised and changes to parts 801 and 802 were made final 
effective April 17, 2002 (67 FR 11898). Interim rule 802.21 was revised 
and made final in a separate rulemaking and made effective on February 
2, 2002 (67 FR 11904). On January 17, 2003, the Commission responded to 
issues raised by the comments received on the interim rules and issued 
final amendments to parts 801 and 803 (68 FR 2425). The Commission also 
received a number of comments that were not relevant to the changes 
promulgated by either set of rules. These additional comments remain 
under consideration and may be addressed by future rulemaking.
By the end of 2003, the Commission anticipates amending the HSR rules 
to allow parties to file the premerger notification and report form 
electronically via the Internet. The Commission also expects to issue a 
notice of proposed rulemaking during the spring or summer of 2004 to 
revise its treatment of noncorporate entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM (Rule Change)              02/01/01                     66 FR 8723
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 form SIC to NAICS) 05/09/01                    66 FR 23561
Effective Date (Change from SIC 
to NAICS)                       07/01/01
Final Rule Part 802.21          03/18/02                    67 FR 11904
Final Rules Parts 801 and 802   03/18/02                    67 FR 11898
Final Rules Parts 801 and 803   01/17/03                     68 FR 2425
Final Rule                      12/00/03
NPRM                            07/00/04

[[Page 73980]]

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
Email: [email protected]

RIN: 3084-AA91
_______________________________________________________________________


Federal Trade Commission (FTC)                        Long-Term Actions






_______________________________________________________________________




4252. TRADE REGULATION RULE ON FUNERAL INDUSTRY PRACTICES

Priority: Substantive, Nonsignificant

CFR Citation: 16 CFR 453

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    03/00/05
Commission Action               07/00/05

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Carole I. Danielson
Phone: 202 326--3115
Email: [email protected]

RIN: 3084-AA82
_______________________________________________________________________


Federal Trade Commission (FTC)                        Completed Actions






_______________________________________________________________________




4253. 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.
The Commission was required to begin review of the TSR to evaluate the 
Rule's operation and report to Congress. The Commission 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. The review is summarized in the Statement of Basis 
and Purpose for the ``do--not--call'' Rule. 68 FR 4580 (Jan. 29, 2003).
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). The Commission announced the final amended Rule 
on December 18, 2002. On October 1, 2003, affected parties must be in 
full compliance with (1) Sec. 310.4(b)(1)(iv)(the prohibition of 
abandoned calls); (2) Sec. 310.4(b)(4)(the safe harbor for call 
abandonment as well as any record keeping requirements associated with 
the safe harbor); and (3) Sec. 310.4(b)(1)(iii)(B) (the national ``do 
not call'' registry provisions of the amended Rule). 68 FR 16414 (Apr. 
4, 2003). Full compliance is required for Sec. 310.4(a)(7) (the caller 
identification provisions) on January 29, 2004; and March 31, 2003, was 
the date required for full compliance with all other provisions of the 
amended TSR.
As noted above, among other things, the final amended Rule establishes 
a national ``do not call'' registry, requires telemarketers to transmit 
Caller ID information, prohibits abandoned calls, prohibits 
unauthorized billing, requires express authorization when certain

[[Page 73981]]

payment mechanisms are used, requires express informed consent in 
certain types of transactions, requires disclosures when the offer 
involves a negative option feature, and requires disclosures and 
prohibits misrepresentations in solicitations for charitable 
contributions. The amended Rule provides an exemption from the do--
not--call registry for businesses with which consumers have an 
established business relationship. The Rule also exempts from the do--
not call registry for--profit telemarketers making charitable 
solicitations.
The National Do Not Call Registry opened on June 27, 2003. Consumers 
can register for free in two ways: online at DONOTCALL.GOV or by 
telephone at 1 (888) 382--1222. As of October 1, 2003, it became 
illegal for most telemarketers to call a number listed on the national 
registry.
On February 20, 2003, the Congress authorized the agency to collect 
fees sufficient to implement and enforce the ``do not call'' provisions 
of the TSR (P.L. 108--7). On April 3, 2003, the Commission issued a 
Revised Notice of Proposed Rulemaking (Revised Fee NPRM) to amend the 
TSR by adding a new section that would impose fees on entities 
accessing the national ``do not call'' registry. 68 FR 16238 (Apr. 3, 
2003). The Commission issued the Final Fee Rule on July 31, 2003. 68 FR 
45134. The Final Rule will among other things: require only sellers to 
pay the annual fee for access to the national registry; impose an 
annual fee of $25 per area code, with a maximum annual fee of $7,375; 
allow access to up to five area codes for free; and, set October 1, 
2003, as the effective date for the ``do--not--call'' provisions of the 
amended TSR.
Additional revisions to the amended TSR will allow more entities to 
access the ``do not call'' registry for the purpose of scrubbing their 
lists, even if they are entities that are exempt from the FTC's 
jurisdiction. However, the FTC emphasizes strongly that the information 
in the national registry may be used for no purpose other than to stop 
unwanted telemarketing calls.
To comply with the amended TSR's ``do not call'' provisions by the 
effective date of October 1, 2003, all covered sellers are required to 
access the registry for the first time between September 1 and 
September 30, 2003.

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--User Fees         05/29/02                    67 FR 37362
Public Forum                    06/05/02
Public Forum                    06/06/02
Public Forum                    06/07/02
NPRM--User Fees Comment Period 
End                             06/28/02
Recommendation to Commission    11/08/02
Final Commission Action 
Announced                       12/18/02
Final Amended Rule Published    01/29/03                     68 FR 4580
Revised Fee NPRM                04/03/03                    68 FR 16238
Stay of Compliance              04/04/03                    68 FR 16414
Rev'd. User Fee NPRM Comment 
Period End                      05/01/03
Final Rule on User Fees         07/31/03                    68 FR 45134

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: David M Torok, Attorney, Federal Trade Commission, 
Division of Marketing Practices, Bureau of Consumer Protection, 
Washington, DC 20580
Phone: 202 326--3075
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
_______________________________________________________________________




4254. [bull] APPLIANCE LABELING RULE

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 42 USC 6291 et seq

CFR Citation: 16 CFR 305

Legal Deadline: None

Abstract: The Commission issued the Rule concerning disclosures 
regarding energy consumption and water use of certain home appliances 
(Appliance Labeling Rule) in 1979, 44 FR 66466 (Nov. 19, 1979) in 
response to a directive in the Energy Policy and Conservation Act of 
1975 (EPCA), 42 U.S.C. 6294. The rule requires manufacturers of all 
covered appliances to disclose specific energy consumption or 
efficiency information (derived from the DOE test procedures) at the 
point of sale in the form of an EnergyGuide label and in catalogs.
New energy conservation standards and a new DOE test procedure for 
clothes washers will become effective on January 1, 2004. Application 
of the new test procedure (the J1 test) will likely produce energy 
consumption figures different from those yielded by the old test 
procedure (the J test). Because these test results are used to 
determine energy use information that appears on the FTC EnergyGuide 
label, consumers may not be able effectively to compare the energy 
performance of clothes washers if the labels are based on two different 
test procedures.
To ease the transition to the new energy efficiency standard and new 
(J1) test procedure, the Association of Home Appliance Manufacturers 
(AHAM) wrote to FTC staff on February 7, 2003, requesting permission to 
begin using that test for labeling clothes washers during 2003, before 
the test becomes effective. In addition, AHAM's letter requested that 
the Commission allow its members to provide special wording on the 
EnergyGuide labels for these

[[Page 73982]]

models to help consumers in distinguishing washers tested under the new 
(J1) procedure from those tested under the old (J) procedure. AHAM 
proposed a modified label that would display a banner across the top 
stating: ``This Model has been Tested to the 2004 Test Procedure. 
Compare only with Models with this Notice.'' AHAM requested that the 
Commission allow its members to begin using the new (J1) test and 
modified labels on May 1, 2003, and that the labeling changes be made 
permanent.
To grant AHAM's request, the Commission would have to grant an 
exemption from certain EnergyGuide testing and labeling requirements 
for the remainder of the calendar year of 2003 and issue rule 
amendments to make the requested labeling changes a permanent 
requirement for all manufacturers after January 1, 2004. On April 4, 
2003, the Commission sought comments on AHAM's proposals. 68 FR 16231. 
The Commission received four comments; three of which supported the 
conditional exemption and rule change. In a Federal Register notice 
issued on June 18, 2003, the Commission granted a conditional exemption 
from certain EnergyGuide testing and labeling requirements for the 
remainder of the calendar year of 2003 to allow manufacturers to use 
the new (J1) test procedure immediately instead of waiting until the 
beginning of 2004. The Commission also amended the Rule to require 
explanatory language on EnergyGuide labels for all models beginning 
January 1, 2004. 68 FR 36458.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            04/03/03                    68 FR 16231
Final Rule and Conditional 
Exemption                       06/18/03                    68 FR 36458

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

URL For More Information:
www.ftc.gov/bcp/online/edcams/eande/index.html

URL For Public Comments:
www.ftc.gov/os/comments/appliancecomments/index.html

Agency Contact: Hampton Newsome, Attorney, Federal Trade Commission, 
Division of Enforcement, Bureau of Consumer Protection, 601 New Jersey 
Avenue NW., Washington, DC 20580
Phone: 202 326--2889
Email: [email protected]

RIN: 3084-AA93
[FR Doc. 03-24018 Filed 12-19-03; 8:45 am]
BILLING CODE 6750-01-S
