[Federal Register Volume 80, Number 17 (Tuesday, January 27, 2015)]
[Notices]
[Pages 4264-4266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01430]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Notice.
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SUMMARY: The information collection requirements described below will
be submitted to the Office of Management and Budget (OMB) for review,
as required by the Paperwork Reduction Act (PRA). The FTC seeks public
comments on its proposal to extend, for three years, the current PRA
clearance for information collection requirements contained in the
rules and regulations under the Fur Products Labeling Act (``Fur
Rules''), 16 CFR 301. This clearance expires on April 30, 2015.
DATES: Comments must be received on or before March 30, 2015.
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 ``Fur Rules: FTC File
No. P074201'' on your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/furrulespra by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail or deliver 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: Requests for copies of the collection
of information and supporting documentation should be addressed to
Robert M. Frisby, 202-326-2098, or
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Lemuel Dowdy, 202-326-2981, Attorneys, Division of Enforcement, Bureau
of Consumer Protection, 600 Pennsylvania Ave., NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
Proposed Information Collection Activities
Under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501-3520,
federal agencies must get OMB approval for each collection of
information they conduct, sponsor, or require. ``Collection of
information'' means agency requests or requirements to submit reports,
keep records, or provide information to a third party. 44 U.S.C.
3502(3); 5 CFR 1320.3(c). As required by Section 3506(c)(2)(A) of the
PRA, the FTC is providing this opportunity for public comment before
requesting that OMB extend the existing PRA clearance for the
information collection requirements associated with the Commission's
rules and regulations under the Fur Products Labeling Act (``Fur
Rules''), 16 CFR part 301 (OMB Control Number 3084-0099).\1\
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\1\ The Commission issued the Fur Rules to implement the Fur
Products Labeling Act, 15 U.S.C. 69 et seq.
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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 the collection of information on those who
are to respond. All comments must be received on or before March 30,
2015.
Burden Estimates
Staff's burden estimates are based on data from the Department of
Labor's Bureau of Labor Statistics (``BLS'') and data or other input
from the Fur Industry Council of America. The relevant information
collection requirements in these rules and staff's corresponding burden
estimates follow. The estimates address the number of hours needed and
the labor costs incurred to comply with the requirements.
The Fur Products Labeling Act (``Fur Act'') \2\ prohibits the
misbranding and false advertising of fur products. The Fur Rules
establish disclosure requirements that assist consumers in making
informed purchasing decisions, and recordkeeping requirements that
assist the Commission in enforcing the Rules. The Rules also provide a
procedure for exemption from certain disclosure provisions under the
Fur Act.
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\2\ 15 U.S.C. 69 et seq.
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The Commission expects that recent amendments to the Fur Act have
increased the cost of complying with the Fur Rules as amended.\3\
Congress eliminated the Commission's power to exempt from the labeling
requirements items where either the cost of the fur trim to the
manufacturer or the manufacturer's selling price for the finished
product is less than $150.\4\ As a result, more garments are now
subject to the Fur Act and Rules, which will impose higher
recordkeeping and labeling costs on manufacturers, importers, and
retailers.
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\3\ Final Rule, 79 FR 30445 (May 28, 2014) (effective date of
November 19, 2014).
\4\ Truth in Fur Labeling Act, Public Law 111-313.
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Estimated annual hours burden: 249,541 hours (64,440 hours for
recordkeeping + 185,101 hours for disclosure).
Recordkeeping: The Fur Rules require that retailers, manufacturers,
processors, and importers of furs and fur products keep certain records
in addition to those they may keep in the ordinary course of business.
Staff estimates that 1,230 retailers incur an average recordkeeping
burden of about 18 hours per year (22,140 hours total); 90
manufacturers incur an average recordkeeping burden of about 60 hours
per year (5,400 hours total); and 1,230 importers of furs and fur
products incur an average recordkeeping burden of 30 hours per year
(36,900 hours total). The combined recordkeeping burden for the
industry is approximately 64,440 hours annually.
Disclosure: Staff estimates that 1,320 respondents (90
manufacturers + 1,230 retail sellers of fur garments) each require an
average of 30 hours per year to determine label content (39,600 hours
total), and an average of ten hours per year to draft and order labels
(13,200 hours total). Staff estimates that the total number of garments
subject to the fur labeling requirements annually is approximately
1,610,000.\5\ Staff estimates that for approximately 50 percent of
these garments (805,000) labels are attached manually, requiring
approximately four minutes per garment for a total of 53,667 hours
annually. For the remaining 805,000, the process of attaching labels is
semi-automated and requires an average of approximately five seconds
per item, for a total of 1,118 hours. Thus, the total burden for
attaching labels is 54,785 hours, and the total burden for labeling
garments is 107,585 hours per year (39,600 hours to determine label
content + 13,200 hours to draft and order labels + 54,785 hours to
attach labels).
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\5\ The total number of imported fur garments, fur-trimmed
garments, and fur accessories is estimated to be approximately
1,400,000 based on industry data. Estimated domestic production
totals 210,000.
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Staff estimates that the incremental burden associated with the Fur
Rules' invoice disclosure requirement, beyond the time that would be
devoted to preparing invoices in the absence of the Rules, is
approximately one minute per invoice for garments and thirty seconds
per invoice for pelts.\6\ The invoice disclosure requirement applies to
fur garments, which are generally sold individually, and fur pelts,
which are generally sold in groups of at least 50, on average. Assuming
invoices are prepared for sales of 1,610,000 garments, the invoice
disclosure requirement entails an estimated burden of 26,833 hours
(1,610,000 invoices x one minute). Based on information from the Fur
Industry Council of America, staff estimates total sales of 8,900,000
pelts annually. Assuming invoices are prepared for sales of 178,000
groups (derived from an estimated 8,900,000 pelts / 50) of imported and
domestic pelts, the invoice disclosure requirement entails an estimated
total burden of 1,483 hours (178,000 total invoices x thirty seconds).
Thus, the total burden for invoice disclosures is 28,316 hours.
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\6\ The invoice disclosure burden for PRA purposes excludes the
time that respondents would spend for invoicing, apart from the Fur
Rules, in the ordinary course of business. See 5 CFR 1320.3(b)(2).
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Staff estimates that the Fur Rules' advertising disclosure
requirements impose an average burden of 40 hours per year for each of
the approximately 1,230 domestic fur retailers, or a total of 49,200
hours.
Thus, staff estimates the total disclosure burden to be
approximately 185,101 hours (107,585 hours for labeling + 28,316 hours
for invoices + 49,200 hours for advertising).
Estimated annual cost burden: $4,657,902 (solely relating to labor
costs). The chart below summarizes the total estimated costs.
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Task Hourly rate Burden hours Labor cost
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Determine label content................................ $ 26.00 39,600 $1,029,600
Draft and order labels................................. 17.00 13,200 224,400
Attach labels.......................................... \7\ 10.00 54,785 547,850
Invoice disclosures.................................... 17.00 28,316 481,372
Prepare advertising disclosures........................ 26.00 49,200 1,279,200
Recordkeeping.......................................... 17.00 64,440 1,095,480
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Total.............................................. ................. ................. 4,657,902
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Staff believes that there are no current start-up costs or other
capital costs associated with the Fur Rules. Because the labeling of
fur products has been an integral part of the manufacturing process for
decades, manufacturers have in place the capital equipment necessary to
comply with the Rules' labeling requirements.\8\ Industry sources
indicate that much of the information required by the Fur Act and Rules
would be included on the product label even absent the Rules.
Similarly, invoicing, recordkeeping, and advertising disclosures are
tasks performed in the ordinary course of business so that covered
firms would incur no additional capital or other non-labor costs as a
result of the Act or the Rules.
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\7\ Per industry sources, most fur labeling is done in the
United States. This rate is reflective of an average domestic hourly
wage for such tasks performed in the United States, which is derived
from recent BLS statistics.
\8\ Although items previously exempt from the labeling
requirements must now be labeled regarding their fur content, the
Textile and Wool Rules, found at 16 CFR part 303 and 16 CFR part
300, respectively, already required many such items to have fiber
content labels. Hence, manufacturers likely have in place the
equipment needed to comply with the additional labeling
requirements.
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Request for Comments
You can file a comment online or on paper. Write ``Fur Rules: FTC
File No. P074201'' on your comment. Your comment--including your name
and your state--will be placed on the public record of this proceeding,
including, to the extent practicable, on the public Commission Web
site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of
discretion, the Commission tries to remove individuals' home contact
information from comments before placing them on the Commission Web
site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, such as a 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, do not include any ``[t]rade secret or
any commercial or financial information which is . . . privileged or
confidential,'' as discussed in 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). In particular, do
not include competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns, devices, manufacturing
processes, or customer names.
If you want the Commission to give your comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you must follow the procedure explained in
FTC Rule 4.9(c), 16 CFR 4.9(c). Your comment will be kept confidential
only if the FTC General Counsel, in his or her sole discretion, grants
your request in accordance with the law and the public interest. Postal
mail addressed to the Commission is subject to delay due to heightened
security screening. As a result, the Commission encourages you to
submit your comments online. To make sure that the Commission considers
your online comment, you must file it at https://ftcpublic.commentworks.com/ftc/furrulespra by following the
instructions on the web-based form. If this Notice appears at http://www.regulations.gov, you also may file a comment through that Web site.
If you file your comment on paper, write ``Fur Rules: FTC File No.
P074201'' 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, 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.
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 30,
2015. You can find more information, including routine uses permitted
by the Privacy Act, in the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2015-01430 Filed 1-26-15; 8:45 am]
BILLING CODE 6750-01-P