Notice2023-00180
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
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Published
January 9, 2023
Issuing agencies
Federal Trade Commission
Abstract
The Federal Trade Commission (FTC or Commission) is seeking public comment on its proposal to extend an additional three years the Office of Management and Budget clearance for information collection requirements of its the FTC's Rule Governing Pre-Sale Availability of Written Warranty Terms. The current clearance expires on May 31, 2023.
Full Text
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<title>Federal Register, Volume 88 Issue 5 (Monday, January 9, 2023)</title>
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[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1229-1231]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00180]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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[[Page 1230]]
SUMMARY: The Federal Trade Commission (FTC or Commission) is seeking
public comment on its proposal to extend an additional three years the
Office of Management and Budget clearance for information collection
requirements of its the FTC's Rule Governing Pre-Sale Availability of
Written Warranty Terms. The current clearance expires on May 31, 2023.
DATES: Comments must be received on or before March 10, 2023.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Reduction
Act Comment: FTC File No. P072108'' on your comment, and file your
comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Laura Basford, Attorney, Division of
Marketing Practices, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202)
326-2343.
SUPPLEMENTARY INFORMATION:
Title: Pre-Sale Availability of Written Warranty Terms (Pre-Sale
Availability Rule or Rule), 16 Part CFR 702.
OMB Control Number: 3084-0112.
Type of Review: Extension of a currently approved collection.
Background: The Pre-Sale Availability Rule, 16 CFR part 702, is one
of three rules \1\ that the FTC issued as required by the Magnuson Moss
Warranty Act, 15 U.S.C. 2301 et seq. (Warranty Act or Act).\2\ The Pre-
Sale Availability Rule requires sellers and warrantors to make the text
of any written warranty on a consumer product costing more than $15
available to the consumer before sale. Among other things, the Rule
requires sellers to make the text of the warranty readily available
either by (1) displaying it in close proximity to the product or (2)
furnishing it on request and posting signs in prominent locations
advising consumers that the warranty is available. The Rule requires
warrantors to provide materials to enable sellers to comply with the
Rule's requirements and also sets out the methods by which warranty
information can be made available before the sale if the product is
sold through catalogs, mail order, or door to door sales. In addition,
in 2016, the FTC revised the Rule to allow warrantors to post warranty
terms on internet websites if they also provide a non-internet based
method for consumers to obtain the warranty terms and satisfy certain
other conditions.\3\ The revised Rule also allows certain sellers to
display warranty terms pre-sale in an electronic format if the
warrantor has used the online method of disseminating warranty terms.
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\1\ The other two rules relate to the information that must
appear in a written warranty on a consumer product costing more than
$15 if a warranty is offered and minimum standards for informal
dispute settlement mechanisms that are incorporated into a written
warranty.
\2\ 40 FR 60168 (Dec. 31, 1975).
\3\ 81 FR 63664-70 (Sept. 15, 2016).
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As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in the Pre-Sale
Availability Rule.
Burden Statement
Total annual hours burden: 2,764,837.
In its 2019 submission to OMB, FTC staff estimated that the
information collection burden of making the disclosures required by the
Pre-sale Availability Rule was approximately 3,069,314 hours per year.
Although there has been no change in the Rule's information collection
requirements since 2019, staff has adjusted downward its previous
estimate of the number of manufacturers subject to the Rule based on
recent Census data. Based on that data, staff now estimates that there
are approximately 27,094 manufacturers subject to the Rule.\4\ In
addition, staff has adjusted downward its previous estimate of the
number of retailers subject to the Rule based on recent Census data.
There are now an estimated 523,164 retailers impacted by the Rule.\5\
These estimates likely overstate the number of manufacturers and
retailers because some of the included manufacturers and retailers may
make and sell products that are not covered by the Rule.
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\4\ The 2019 estimate was that 31,029 manufacturers were subject
to the Rule.
\5\ The 2019 estimate was that 575,177 retailers were subject to
the Rule.
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In prior years, staff categorized retailers and manufacturers based
on their size, and applied different time estimates for complying with
the Rule based on whether the entity was large or small. This year,
staff instead applies a single time estimate to all retailers and
another to all manufacturers, regardless of size. These estimates are
intended to be an average time burden, reflecting the typical burden
across the full spectrum of retailers and manufacturers, and taking
into account the number of large and small entities from prior years.
This approach is consistent with how staff have estimated the time
burden for the Warranty Rule, 16 CFR part 701, another rule the FTC
issued under the Act.
Staff estimates that retailers spend, on average, 5 hours per year
to comply with the Rule. Accordingly, the total annual burden for
retailers is approximately 2,615,820 hours (523,164 retailers x 5
burden hours). Staff estimates that manufacturers spend an average of
5.5 hours per year to comply with the Rule. Accordingly, the total
annual burden incurred by manufacturers is approximately 149,017 hours
(27,094 manufacturers x 5.5 hours).
Thus, the total annual burden for all covered entities is
approximately 2,764,837 hours (2,615,820 hours for retailers + 149,017
hours for manufacturers).
Total annual labor cost: $67,738,531.
The work required to comply with the Pre-Sale Availability Rule
entails a mix of clerical work and work performed by sales associates.
Staff estimates that half of the total burden hours would likely be
performed by sales associates. At the manufacturing level, this work
would entail ensuring that the written warranty is available for every
warranted consumer product. At the retail level, this work would entail
ensuring that the written warranty is made available to the consumer
prior to sale. The remaining half of the work required to comply with
the Pre-Sale Availability Rule is clerical in nature, e.g., shipping or
otherwise providing copies of manufacturer warranties to retailers,
along with retailer maintenance of the warranties. Applying a sales
associate wage rate of $26/hour to half of the burden hours and a
clerical wage rate of $23/hour to half of the burden hours, the total
annual labor cost burden is approximately $67,738,531 (1,382,419 hours
x $26 per hour) + (1,382,419 hours x $23 per hour).\6\
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\6\ The wage rates are derived from occupational data found in
the National Occupational Employment and Wage Estimates--May 2021,
U.S. Bureau of Labor Statistics, released March 31, 2022: <a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>.
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Total annual capital or other non-labor costs: De minimis.
[[Page 1231]]
The vast majority of retailers and warrantors already have
developed systems to provide the information the Rule requires.
Compliance by retailers typically entails keeping warranties on file
electronically, in binders or otherwise, and posting an inexpensive
sign indicating warranty availability. Warrantor compliance under the
2016 amendments entails providing retailers, together with the
warranted good, a copy of the warranty or the address of the
warrantor's internet website where the consumer can review and obtain
the warranty terms, along with the contact information where the
consumer may use a non-internet based method to obtain a free copy of
the warranty terms. Commission staff believes that, in light of the
amendments, annual capital or other non-labor costs will remain de
minimis.
Request for Comments
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (2) the
accuracy of the agency's estimate of the burden of the proposed
collection of information, including the validity of the methodology
and assumptions used; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of maintaining records and providing disclosures to
consumers. All comments must be received on or before March 10, 2023.
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before March 10, 2023. Write
``Paperwork Reduction Act Comment: FTC File No. P072108'' on your
comment. Your comment--including your name and your state--will be
placed on the public record of this proceeding, including the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
Due to the public health emergency in response to the COVID-19
outbreak and the agency's heightened security screening, postal mail
addressed to the Commission will be subject to delay. We encourage you
to submit your comments online through the <a href="https://www.regulations.gov">https://www.regulations.gov</a>
website.
If you prefer to file your comment on paper, write ``Paperwork
Reduction Act Comment: FTC File No. P072108'' on your comment and on
the envelope, and mail your comment to the following address: Federal
Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW,
Suite CC-5610 (Annex J), Washington, DC 20580; or deliver your comment
to the following address: Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite
5610 (Annex J), Washington, DC 20024. If possible, submit your paper
comment to the Commission by courier or overnight service.
Because your comment will become publicly available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . . is privileged or confidential''--as provided
by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2)--including in particular competitively
sensitive information such as costs, sales statistics, inventories,
formulas, patterns, devices, manufacturing processes, or customer
names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at <a href="http://www.regulations.gov">www.regulations.gov</a>, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding, as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before March 10,
2023. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-00180 Filed 1-6-23; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on January 9, 2023.
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