Notice2023-18769
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
The Federal Trade Commission ("FTC" or "Commission") is seeking public comments on its proposal to extend for an additional three years the current Paperwork Reduction Act ("PRA") clearance for information collection requirements contained in the FTC's trade regulation rule entitled "Use of Prenotification Negative Option Plans" ("Negative Option Rule" or "Rule"). That clearance expires on January 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 59922-59923]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-18769]
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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: The Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comments on its proposal to extend for an additional
three years the current Paperwork Reduction Act (``PRA'') clearance for
information collection requirements contained in the FTC's trade
regulation rule entitled ``Use of Prenotification Negative Option
Plans'' (``Negative Option Rule'' or ``Rule''). That clearance expires
on January 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 ``Negative Option 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: Katherine Johnson, Attorney, Division
of Enforcement, Federal Trade Commission, Room CC-9528, 600
Pennsylvania Avenue NW, Washington, DC 20580, (202) 326-2185.
SUPPLEMENTARY INFORMATION:
Title: Use of Prenotification Negative Option Plans (Negative
Option Rule or Rule), 16 CFR part 425.\1\
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\1\ The Commission recently published a Notice of Proposed
Rulemaking seeking comment on proposed amendments to the
Commission's Negative Option Rule. 88 FR 24716 (Apr. 24, 2023). The
present PRA Notice is not part of that proceeding and merely seeks
comment on the existing burden estimates for the current Rule, which
applies only to ``prenotification'' negative option plans.
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OMB Control Number: 3084-0104.
Type of Review: Extension without change of currently approved
collection.
Abstract: The Negative Option Rule governs the operation of
prenotification subscription plans. Under these types of plans--which
can include things such as a book of the month club, food of the month
club, or clothing items of the month club--a seller provides a consumer
with automatic shipments of merchandise unless the consumer
affirmatively notifies the seller they do not want the shipment. The
Rule requires that a seller notify a member that they will
automatically ship merchandise to the member and bill the member for
the merchandise if the subscriber fails to expressly reject the
merchandise beforehand within a prescribed time. The Rule protects
consumers by: (1) requiring that promotional materials disclose the
terms of membership clearly and conspicuously; and (2) establishing
procedures for the administration of such ``negative option'' plans.
Affected Public: Private Sector: Sellers of prenotification
subscription plans.
Estimated Annual Burden Hours: 2,500 hours.
Estimated Annual Labor Costs: $152,350 (solely related to labor
costs).
Estimated Annual Non-Labor Costs: $0 or de minimis.
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 Rule.
Burden Statement
Estimated Annual Burden Hours: 2,500.
Based on industry input, FTC staff estimates that approximately 25
clubs are subject to the disclosure requirements contained in the
Rule.\2\ FTC staff further estimates that each club will require
annually about 100 hours to comply with the Rule's disclosure
requirements. This yields a total annual burden of 2,500 hours (25
clubs x 100 hours).
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\2\ According to industry input, many firms previously covered
have transitioned to a subscription-based approach. Thus, the
current estimate is lower than past estimates. Additionally,
industry sources have indicted in the past that a substantial
portion of the existing clubs would make these disclosures absent
the Rule because they help foster long-term relationships with
consumers.
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Estimated Annual Cost Burden: $152,350 (solely related to labor
costs).
Based on recent data from the Bureau of Labor Statistics, the mean
hourly wage for advertising and promotion managers is approximately
$70.70 per hour; \3\ compensation for office and administrative support
personnel is approximately $21.90 per hour.\4\
[[Page 59923]]
Assuming that managers perform the bulk of the work, and clerical
personnel perform associated tasks (e.g., placing advertisements and
responding to inquiries about offerings or prices), the total cost to
the industry for the Rule's information collection requirements would
be approximately $152,350 [(80 hours managerial time x 25 clubs x
$70.70 per hour) + (20 hours clerical time x 25 clubs x $21.90 per
hour)].
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\3\ See Occupational Employment and Wages--May 2022, Table 1, at
<a href="https://www.bls.gov/news.release/ocwage.t01.htm">https://www.bls.gov/news.release/ocwage.t01.htm</a> (mean hourly wage
rate for advertising and promotion managers).
\4\ See id. (mean hourly wage rate for office and administrative
support occupations).
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Because the Rule has been in effect since 1974, the vast majority
of the negative option clubs have no current start-up costs. For new
clubs entering the market, the costs associated with the Rule's
disclosure requirements, beyond the additional labor costs discussed
above, are de minimis. Negative option clubs already have access to the
ordinary office equipment necessary to comply with the Rule. Similarly,
the Rule imposes few, if any, printing and distribution costs. The
required disclosures generally constitute only a small addition to the
advertising for negative option plans. Because printing and
distribution expenditures are incurred to market the product regardless
of the Rule, adding the required disclosures results in marginal
incremental expense.
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 ``Negative Option 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. 2023-18769 Filed 8-29-23; 8:45 am]
BILLING CODE 6750-01-P
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