Notice2026-07538
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
April 17, 2026
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 ("OMB") clearance for information collection requirements in its Informal Dispute Settlement Procedures Rule ("the Dispute Settlement Rule" or "Rule"). That clearance expires on July 31, 2026.
Full Text
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<title>Federal Register, Volume 91 Issue 74 (Friday, April 17, 2026)</title>
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[Federal Register Volume 91, Number 74 (Friday, April 17, 2026)]
[Notices]
[Pages 20655-20658]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07538]
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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 (``OMB'') clearance for
information collection requirements in its Informal Dispute Settlement
Procedures Rule (``the Dispute Settlement Rule'' or ``Rule''). That
clearance expires on July 31, 2026.
DATES: Comments must be filed by June 16, 2026.
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 ``Dispute Settlement
Rule; PRA Comment: FTC File No. P044403'' 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, Mail
Stop H-144 (Annex E), Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Sung W. Kim, Attorney, Division of
Marketing Practices, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202)
326-2211; <a href="/cdn-cgi/l/email-protection#0f7c646662394f697b6c21686079"><span class="__cf_email__" data-cfemail="c1b2aaa8acf781a7b5a2efa6aeb7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Title: Informal Dispute Settlement Procedures Rule (the Dispute
Settlement Rule or the Rule), 16 CFR part 703.
OMB Control Number: 3084-0113.
Likely Respondents: Warrantors that Use an IDSM (Automobile
Manufacturers) and Informal Dispute Settlement Mechanisms.
Estimated Annual Burden Hours: 11,738 (derived from 7,843
recordkeeping hours in addition to 2,614 reporting hours and 1,281
disclosure hours).
Estimated Annual Labor Costs: $339,496.
Estimated Annual Capital or Other Non-Labor Costs: $425,987.
[[Page 20656]]
Abstract: The Dispute Settlement Rule is one of three rules \1\
that the FTC implemented pursuant to requirements of the Magnuson-Moss
Warranty Act, 15 U.S.C. 2301 et seq. (``Warranty Act'' or ``Act'').\2\
The Dispute Settlement Rule, 16 CFR part 703, specifies the minimum
standards that must be met by any informal dispute settlement mechanism
(``IDSM'') incorporated into a written consumer product warranty and
that the consumer is required to use before pursuing legal remedies
under the Act in court (known as the ``prior resort requirement'').\3\
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\1\ The other two rules relate to the information that must
appear in any written warranty offered on a consumer product costing
more than $15 (Consumer Product Warranty Rule, 16 CFR part 701) and
the pre-sale availability of warranty terms (Pre-Sale Availability
Rule, 16 CFR part 702).
\2\ 40 FR 60168 (Dec. 31, 1975).
\3\ The Dispute Settlement Rule applies only to those firms that
choose to require consumers to use an IDSM. Neither the Rule nor the
Act requires warrantors to set up IDSMs. A warrantor is free to set
up an IDSM that does not comply with the Rule as long as the
warranty does not contain a prior resort requirement.
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The Dispute Settlement Rule standards for IDSMs include
requirements concerning the mechanism's structure (e.g., funding,
staffing, and neutrality), the qualifications of staff or decision
makers, the mechanism's procedures for resolving disputes (e.g.,
notification, investigation, time limits for decisions, and follow-up),
recordkeeping, and annual audits. The Rule requires that IDSMs
establish written operating procedures and provide copies of those
procedures upon request.
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 associated with the Dispute
Settlement Rule.
Burden Statement
The primary burden from the Dispute Settlement Rule comes from the
recordkeeping requirements that apply to IDSMs that are incorporated
into a consumer product warranty through a prior resort clause.
Currently, there are two IDSMs operating under the Rule: (1) the BBB
AUTO LINE, and (2) the National Center for Dispute Settlement
(``NCDS''). Although the Rule's information collection requirements
have not changed since 2023, staff has adjusted its previous estimates
slightly upward for its 2026 calculations because the two IDSMs
indicate that, on average, more disputes have been handled since the
previous submission to OMB (12,420 disputes/year projected in 2023;
15,685 disputes/year projected in 2026). The calculations underlying
staff's new estimates follow.
Recordkeeping: The Rule requires IDSMs to maintain records of each
consumer warranty dispute. Both the BBB AUTO LINE and NCDS report the
number of disputes closed each year. Staff is using those numbers to
project what will happen over the next three years of OMB clearance for
the Rule. The BBB AUTO LINE handles an average of 11,061 disputes each
year.\4\ NCDS handles an average of 4,624 disputes each year.\5\ Based
on these figures, staff estimates that the average number of IDSM
disputes covered by the Rule is approximately 15,685. Case files must
include information such as the consumer's contact information, the
make and model of the product at issue, all letters or other
correspondence submitted by the consumer or warrantor, and all evidence
collected to resolve the dispute. Because maintaining individual case
records is a necessary function for any IDSM, much of the burden would
be incurred in the ordinary course of business. Nonetheless, staff
estimates that maintaining individual case files imposes an additional
burden of 30 minutes per case.
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\4\ According to its annual audits, the BBB AUTO LINE closed
7,766 disputes in 2022, 12,512 in 2023, and 12,906 in 2024. This
includes disputes for at least two manufacturers that do not include
a prior resort requirement. Therefore, this number likely overstates
the number of disputes covered by the Rule.
\5\ According to NCDS's annual audits, the number of disputes
both within its jurisdiction and closed each year were 2,777 in
2022, 4,410 in 2023, and 6,685 in 2024.
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Accordingly, the total annual recordkeeping burden is approximately
7,843 hours ((15,685 disputes x 30 minutes of burden/dispute)/60
minutes/hour).
Reporting: The Rule requires IDSMs to update indexes, complete
semiannual statistical summaries, and submit an annual audit report to
the FTC. Staff estimates that covered entities spend approximately 10
minutes per case for these activities, resulting in a total annual
burden of approximately 2,614 hours ((15,685 disputes x 10 minutes of
burden/dispute)/60 minutes/hour).
Disclosure
(a) Warrantors' Disclosure Burden
Similar to 2023, staff has determined that it would be appropriate
to account for the disclosure burden as it relates to warrantors based
on two types of additional information that warrantors are required to
disclose under the Rule: (1) information concerning the IDSM and its
procedures; and (2) information that makes consumers aware of the
existence of the IDSM.\6\
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\6\ 16 CFR 703.2(b).
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A review of the annual audits of the BBB AUTO LINE and the NCDS
indicates that there are approximately thirty-four automobile
manufacturers covered by the Rule. Staff assumes that each manufacturer
spends an average of thirty hours a year creating, revising, and
distributing the informational materials necessary to comply with the
Rule, resulting in an annual disclosure burden of 1,020 hours (34
manufacturers x 30 hours).
(b) IDSMs' Disclosure Burden
Under the Rule, the IDSMs are required to provide to interested
consumers, upon request, copies of the various types of information the
IDSM possesses, including its annual audits. In addition, consumers who
have filed disputes with the IDSM also have a right to copies of their
records. IDSMs are permitted to charge for providing both types of
information.
Based on discussions with representatives of the two IDSMs, staff
estimates that the burden imposed by these disclosure requirements is
approximately 261 hours per year. This estimate draws from the average
number of disputes closed each year with the IDSMs (15,685) and the
assumption that twenty percent of consumers request copies of the
records pertaining to their disputes (approximately 3,137 disputes).\7\
Staff estimates that copying such records would require approximately 5
minutes per dispute.\8\ Staff estimates a total disclosure burden of
approximately 261 hours ((3,137 disputes x 5 minutes of burden/
dispute)/60 minutes/hour) for the IDSMs.
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\7\ This assumes each dispute is associated with one consumer.
\8\ In addition, some case files are provided to consumers
electronically, which further reduces the paperwork burden borne by
the IDSMs.
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Accordingly, the total PRA-related annual hours burden attributed
to the Rule is approximately 11,738 (7,843 hours for recordkeeping plus
2,614 hours for reporting plus 1,020 hours for warrantors' disclosures
and 261 hours for IDSM disclosures).
Total Annual Labor Cost: $339,496.
Recordkeeping: Staff assumes that IDSMs use clerical staff to
comply with the recordkeeping requirements contained in the Rule at an
hourly rate of approximately $22.\9\ Thus, the labor
[[Page 20657]]
cost associated with the 7,843 annual burden hours for recordkeeping is
approximately $172,546 (7,843 burden hours x $22 per hour).
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\9\ The wage rate is derived from occupational data found in the
Bureau of Labor Statistics, Occupational Employment and Wages (Apr.
2025), available at <a href="https://www.bls.gov/news.release/ocwage.htm">https://www.bls.gov/news.release/ocwage.htm</a>. The
clerical wage rate estimate is based on the mean hourly wage data
for the category of ``Office Clerks, general'' ($21.86), rounded up
to the nearest whole dollar amount ($22).
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Reporting: Staff assumes that IDSMs also use clerical support staff
at an hourly rate of $22 to comply with the reporting requirements.
Thus, the labor cost associated with the 2,614 annual burden hours for
reporting is approximately $57,508 (2,614 burden hours x $22 per hour).
Disclosure: Staff assumes that the work required to comply with the
warrantors' disclosure requirements entails an equal mix of legal,
clerical, and graphic design work. Staff assumes that one third of the
total disclosure hours for warrantors (340 hours) require legal work at
a rate of $250 per hour, one third require graphic design at a rate of
$33 per hour,\10\ and one third require clerical work at a rate of $22
per hour. This results in a disclosure labor burden of $103,700 for
warrantors ((340 x $250) + (340 x $33) + (340 x $22)).
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\10\ Id. The wage rate estimate for graphic design work is based
on the mean hourly wage data for the category of ``Graphic
designers'' ($32.98), rounded up to the nearest whole dollar amount
($33).
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In addition, staff assumes that IDSMs use clerical support at an
hourly rate of $22 to reproduce records and, therefore, the labor cost
associated with the 261 annual hours of disclosure burden for IDSMs is
approximately $5,742 (261 burden hours x $22 per hour).
Accordingly, the combined total annual labor cost for PRA-related
burden under the Rule is approximately $339,496 ($172,546 for
recordkeeping + $57,508 for reporting + $109,442 for disclosures).
Total Annual Capital or Other Non-Labor Costs: $425,987.
Total Capital and Start-Up Costs: The Rule imposes no appreciable
current capital or start-up costs. The vast majority of warrantors have
already developed systems to retain the records and provide the
disclosures required by the Rule. Rule compliance does not require the
use of any capital goods, other than ordinary office equipment, to
which providers already have access.
The Rule imposes one additional cost on IDSMs operating under the
Rule, which is the annual audit requirement. According to
representatives of the IDSMs, the vast majority of costs associated
with this requirement consist of the fees paid to the auditors and
their staffs. Representatives of the IDSMs previously estimated a
combined cost of $315,000 associated with the audits. In light of cost
increases over the past three years, staff has increased that estimate
by an additional twenty percent, estimating that the annual audit
requirement now costs $378,000 (or $315,000 plus 20% increase).
Other Non-Labor Costs: As discussed above, staff assumes that
approximately twenty percent of dispute files (approximately 3,137
files) are requested by consumers. Staff also estimates that only five
percent of consumers will request a copy of the IDSM's audit report
(approximately 784 audit reports).\11\ Staff bases this assumption on
the number of consumer requests received by the IDSMs in the past and
the fact that the IDSMs' annual audits are available online. Staff
estimates that the average dispute-related file contains 35 pages and a
typical annual audit file contains approximately 200 pages. Staff
estimates copying costs of 18 cents per page.
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\11\ This estimate assumes each dispute is associated with one
consumer.
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Thus, the total annual copying cost for dispute-related files is
approximately $19,763 (35 pages per file x $0.18 per page x 3,137
disputes), and the total annual copying cost for annual audit reports
is approximately $28,224 (200 pages per audit report x $0.18 per page x
784 audit reports). Accordingly, the total cost attributed to copying
under the Rule is approximately $47,987.
Thus, the total non-labor cost under the Rule is approximately
$425,987 ($378,000 for auditor fees + $47,987 for copying 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
June 16, 2026. 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.
If you file your comment on paper, write ``Dispute Settlement Rule;
PRA Comment: FTC File No. P044403'' 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, Mail
Stop H-144 (Annex E), 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
[[Page 20658]]
before June 16, 2026. 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. 2026-07538 Filed 4-16-26; 8:45 am]
BILLING CODE 6750-01-P
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