Notice2023-18767
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 30, 2023
Issuing agencies
Federal Trade Commission
Abstract
In accordance with the Paperwork Reduction Act of 1995 ("PRA"), the Federal Trade Commission ("FTC" or "Commission") is seeking public comment on its proposal to extend for an additional three years the Office of Management and Budget clearance for information collection requirements in the Trade Regulation Rule entitled Labeling and Advertising of Home Insulation ("R-value Rule" or "Rule"). That clearance expires on March 31, 2024.
Full Text
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<title>Federal Register, Volume 88 Issue 167 (Wednesday, August 30, 2023)</title>
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[Federal Register Volume 88, Number 167 (Wednesday, August 30, 2023)]
[Notices]
[Pages 59923-59925]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-18767]
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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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SUMMARY: In accordance with the Paperwork Reduction Act of 1995
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the Office of Management and Budget clearance for
information collection requirements in the Trade Regulation Rule
entitled Labeling and Advertising of Home Insulation (``R-value Rule''
or ``Rule''). That clearance expires on March 31, 2024.
DATES: Comments must be filed by October 30, 2023.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``R-value Rule; PRA
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.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of
Enforcement, Federal Trade Commission, Room CC-9528, 600 Pennsylvania
Avenue NW, Washington, DC 20580, (202) 326-2889.
SUPPLEMENTARY INFORMATION:
Title of Collection: R-value Rule, 16 CFR part 460.
OMB Control Number: 3084-0109.
Type of Review: Extension without change of currently approved
collection.
Abstract: The R-value Rule establishes uniform standards for the
substantiation and disclosure of accurate, material product information
about the thermal performance characteristics of home insulation
products. The R-value of an insulation signifies the insulation's
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degree of resistance to the flow of heat. This information tells
consumers how well a product is likely to perform as an insulator and
allows consumers to determine whether the cost of the insulation is
justified.
Affected Public: Insulation manufacturers, installers, home
builders, home sellers, insulation sellers.
Estimated Annual Burden Hours: 100,874 hours.
Estimated Annual Labor Costs: $2,424,450.68 (solely related to
labor costs).
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 R-value Rule.
Burden Statement
Estimated Annual Burden Hours: 100,874 hours.
The Rule's requirements include product testing, recordkeeping, and
third-party disclosures on labels, fact sheets, advertisements, and
other promotional materials. Based on information provided by industry
and government sources, FTC staff estimates that the Rule affects: (1)
150 Insulation manufacturers and their testing laboratories; (2) 1,615
installers who sell home insulation; (3) 1,670,00 new home sales; and
(4) 7,500 retail sellers who sell home insulation for installation by
consumers.
1. Manufacturers
Under the Rule's testing requirements, manufacturers must test each
insulation product for its R-value. Based on past industry input, FTC
staff estimates that the test takes approximately two hours.
Approximately 15 of the 150 insulation manufacturers in existence
introduce one new product each year. Their total annual testing burden
is therefore approximately 30 hours.
FTC staff further estimates that most manufacturers require an
average of approximately 20 hours per year regarding third-party
disclosure requirements in advertising and other promotional materials.
Only the five or six largest manufacturers require additional time,
approximately 80 hours each. Thus, the annual third-party disclosure
burden for manufacturers is approximately 3,360 hours [(144
manufacturers x 20 hours) + (6 manufacturers x 80 hours)].
While the Rule imposes recordkeeping requirements, most
manufacturers and their testing laboratories keep their testing-related
records in the ordinary course of business. FTC staff estimates that no
more than one additional hour per year per manufacturer is necessary to
comply with this requirement, for an annual recordkeeping burden of
approximately 150 hours (150 manufacturers x 1 hour).
This yields a total annual burden of 3,540 hours (30 hours for
testing + 3,360 hours for third-party disclosures + 150 hours for
recordkeeping) for manufacturers.
2. Installers
Installers are required to show the manufacturers' insulation fact
sheet to retail consumers before purchase. They must also disclose
information in contracts or receipts concerning the R-value and the
amount of insulation to install. FTC staff estimates that two minutes
per sales transaction is sufficient to comply with these requirements.
Approximately 2,000,000 retrofit insulations (an industry source's
estimate) are installed by approximately 1,615 installers per year,
and, thus, the related annual burden total is approximately 66,667
hours (2,000,000 sales transactions x 2 minutes). FTC staff anticipates
that one hour per year per installer is sufficient to cover required
disclosures in advertisements and other promotional materials. Thus,
the burden for this requirement is approximately 1,615 hours per year.
In addition, installers must keep records that indicate the
substantiation relied upon for savings claims. The additional time to
comply with this requirement is minimal--approximately 5 minutes per
year per installer--for a total of approximately 135 hours.
This yields a total annual burden of 68,417 hours (66,667 hours for
contract disclosures + 1,615 hours for promotional material disclosures
+ 135 hours for recordkeeping) for installers.
3. New Home Sellers
New home sellers must make contract disclosures concerning the
type, thickness, and R-value of the insulation they install in each
part of a new home. FTC staff estimates that not more than 30 seconds
per sales transaction are required to comply with this requirement, for
a total annual burden of approximately 13,917 hours (an estimated
1,670,000 new home sales per year \1\ x 30 seconds). New home sellers
who make energy savings claims must also keep records regarding the
substantiation relied upon for those claims. FTC staff believes that
the 30 seconds covering disclosures would also encompass this
recordkeeping element.
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\1\ See Table 3b on housing starts for privately owned units for
2022 at U.S. Census Bureau, Monthly New Residential Construction--
June 2023 (July 19, 2023), <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf">https://www.census.gov/construction/nrc/pdf/newresconst.pdf</a>.
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This yields a total annual burden of 13,917 hours (for disclosures)
for new home sellers.
4. Retail Sellers
The Rule requires that the approximately 7,500 retailers who sell
home insulation make fact sheets available to consumers before
purchase. This can be accomplished by, for example, placing copies in a
display rack or keeping copies in a binder on a service desk with an
appropriate notice. Replenishing or replacing fact sheets should
require no more than approximately one hour per year per retailer, for
a total of 7,500 annual hours, industry-wide.
The Rule also requires specific disclosures in advertisements or
other promotional materials to ensure that the claims are fair and not
deceptive. This burden is very minimal because retailers typically use
advertising copy provided by the insulation manufacturer, and even when
retailers prepare their own advertising copy, the Rule provides some of
the language to be used. Accordingly, approximately one hour per year
per retailer should suffice to meet this requirement, for a total
annual burden of approximately 7,500 hours.
Retailers who make energy savings claims in advertisements or other
promotional materials must keep records that indicate the
substantiation they are relying upon. Because few retailers make these
types of promotional claims and because the Rule permits retailers to
rely on the insulation manufacturer's substantiation data for any
claims that are made, the additional recordkeeping burden is de
minimis. The time calculated for disclosures, above, would be more than
adequate to cover any burden imposed by this recordkeeping requirement.
This yields a total annual burden of 15,000 hours (for fact sheet
and other disclosures) for retail sellers.
Estimated Annual Cost Burden: $2,424,450.68 (solely related to
labor costs).
The total annual labor cost for the Rule's information collection
requirements is approximately $2,424,450.68, derived as follows:
approximately $963 for testing, based on 30 hours for manufacturers (30
hours x $32.10 per hour for skilled technical personnel); $5,420.70 for
manufacturers' and installers' compliance with the Rule's recordkeeping
requirements, based on 285 hours (285 hours x $19.02 per hour for
clerical personnel); $63,907.20 for manufacturers'
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compliance with third-party disclosure requirements, based on 3,360
hours (3,360 hours x $19.02 per hour for clerical personnel); and
$2,354,159.78 for disclosure compliance by installers, new home
sellers, and retailers (97,199 hours x $24.22 per hour for sales
persons).\2\
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\2\ The wage rates for skilled technical personnel (engineering
technologists and technicians, except drafters), clerical personnel
(file clerks), and sales persons (sales and related occupations) are
based on are based on recent data from the Bureau of Labor
Statistics Occupational Employment Statistics Survey. See U.S.
Bureau of Labor Statistics, Table 1. National Employment and Wage
Data from the Occupational Employment and Wage Statistics Survey by
Occupation (May 2022), <a href="https://www.bls.gov/news.release/ocwage.t01.htm">https://www.bls.gov/news.release/ocwage.t01.htm</a>.
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There are no significant current capital or other non-labor costs
associated with this Rule. Because the Rule has been in effect since
1980, members of the industry are familiar with its requirements and
already have in place the equipment for conducting tests and storing
records. New products are introduced infrequently. Because the required
disclosures are placed on packaging or on the product itself, the
Rule's additional disclosure requirements do not cause industry members
to incur any significant additional non-labor associated costs.
Request for Comment
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the disclosure and recordkeeping requirements
are necessary, including whether the information will be practically
useful; (2) the accuracy of our burden estimates, including whether the
methodology and assumptions used are valid; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) ways to minimize the burden of the collection of information.
For the FTC to consider a comment, we must receive it on or before
October 30, 2023. 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.
You can file a comment online or on paper. Due to 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 file your comment on paper, write ``R-value Rule; PRA
Comment: FTC File No. P072108,'' on your comment and on the envelope,
and mail it to the following address: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580.
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 (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) 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 October 30,
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. 2023-18767 Filed 8-29-23; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on August 30, 2023.
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