Telemarketing Sales Rule Fees, 25512-25516 [E6-6507]
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Federal Register / Vol. 71, No. 83 / Monday, May 1, 2006 / Proposed Rules
the following new airworthiness
directive (AD):
McDonnell Douglas: Docket No. FAA–2006–
24585; Directorate Identifier 2004–NM–
275–AD.
Comments Due Date
(a) The FAA must receive comments on
this AD action by June 15, 2006.
Affected ADs
(b) This AD supersedes AD 2003–03–08.
Applicability
(c) This AD applies to the McDonnell
Douglas airplanes identified in Table 1 of this
AD, certificated in any category, as identified
in Boeing Alert Service Bulletin DC9–
24A190, Revision 2, dated October 12, 2004.
TABLE 1.—AFFECTED AIRPLANES
Model
(1) DC–9–14, DC–9–15, and –15F airplanes.
(2) DC–9–21 airplanes.
(3) DC–9–31, DC–9–32, DC–9–32 (VC–9C),
DC–9–32F, DC–9–32F (C–9A, C–9B),
DC–9–33F, DC–9–34, and DC–9–34F airplanes.
(4) DC–9–41 airplanes.
(5) DC–9–51 airplanes.
Unsafe Condition
(d) This AD results from a report of
electrical arcing that resulted in a fire. We are
issuing this AD to prevent contamination of
certain electrical connectors, which could
cause electrical arcing and consequent fire on
the airplane.
(3) If no dripshield is installed over the
disconnect panel: Before further flight, install
a dripshield according to the service bulletin.
Previously Accomplished Inspections and
Corrective Actions
(g) Inspections and corrective actions
accomplished before March 7, 2003, in
accordance with the Accomplishment
Instructions of Boeing Alert Service Bulletin
DC9–24A190, dated July 31, 2001, are
considered acceptable for compliance with
the corresponding action specified in
paragraph (f) of this AD.
New Requirements of this AD
One-Time Inspection and Corrective Actions
(h) For airplanes other than those
identified in paragraph (f) of this AD: Within
18 months after the effective date of this AD,
do the one-time general visual inspection and
applicable corrective actions specified in
paragraph (f) of this AD, in accordance with
Boeing Alert Service Bulletin DC9–24A190,
Revision 2, dated October 12, 2004. The
applicable corrective actions must be done
before further flight.
Alternative Methods of Compliance (AMOCs)
(i)(1) The Manager, Los Angeles Aircraft
Certification Office, FAA, has the authority to
approve AMOCs for this AD, if requested in
accordance with the procedures found in 14
CFR 39.19.
(2) Before using any AMOC approved in
accordance with § 39.19 on any airplane to
which the AMOC applies, notify the
appropriate principal inspector in the FAA
Flight Standards Certificate Holding District
Office.
Issued in Renton, Washington, on April 20,
2006.
Kalene C. Yanamura,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. E6–6497 Filed 4–28–06; 8:45 am]
Requirements of AD 2003–03–08
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Compliance
(e) You are responsible for having the
actions required by this AD performed within
the compliance times specified, unless the
actions have already been done.
BILLING CODE 4910–13–P
One-Time Inspection and Corrective Actions
(f) For airplanes equipped with forward
lavatories, as listed Boeing Alert Service
Bulletin DC9–24A190, Revision 01, dated
November 21, 2001: Within 18 months after
March 7, 2003 (the effective date AD 2003–
03–08), perform a one-time general visual
inspection of the disconnect panel at station
Y=237.000 in the left forward cargo
compartment to find evidence of
contamination (e.g., staining or corrosion) of
electrical connectors by blue water, and to
determine if a dripshield is installed over the
disconnect panel. Do this inspection
according to the Accomplishment
Instructions of Boeing Alert Service Bulletin
DC9–24A190, Revision 01, excluding
Evaluation Form, dated November 21, 2001.
(1) If no evidence of contamination of
electrical connectors is found, and a
dripshield is installed, no further action is
required by this AD.
(2) If any evidence of contamination of any
electrical connector is found: Before further
flight, remove each affected connector, and
install a new or serviceable connector
according to the service bulletin.
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FEDERAL TRADE COMMISSION
16 CFR Part 310
RIN 3084–0098
Telemarketing Sales Rule Fees
Federal Trade Commission.
Notice of proposed rulemaking;
request for public comment.
AGENCY:
ACTION:
SUMMARY: The Federal Trade
Commission (the ‘‘Commission’’ or
‘‘FTC’’) is issuing a Notice of Proposed
Rulemaking (‘‘NPRM’’) to amend the
Telemarketing Sales Rule (‘‘TSR’’) to
revise the fees charged to entities
accessing the National Do Not Call
Registry, and invites written comments
on the issues raised by the proposed
changes.
DATES: Written comments must be
received on or before June 1, 2006.
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Interested parties are
invited to submit written comments.
Comments should refer to ‘‘TSR Fee
Rule, Project No. P034305,’’ to facilitate
the organization of comments. A
comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed or delivered, with two complete
copies, to the following address: Federal
Trade Commission/Office of the
Secretary, Room H–135 (Annex D), 600
Pennsylvania Avenue, NW.,
Washington, DC 20580. The FTC is
requesting that any comment filed in
paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Moreover, because paper
mail in the Washington area and at the
Commission is subject to delay, please
consider submitting your comments in
electronic form, as prescribed below.
Comments containing confidential
material, however, must be filed in
paper form, must be clearly labeled
‘‘Confidential,’’ and must comply with
Commission Rule 4.9(c).1
Comments filed in electronic form
should be submitted by clicking on the
following weblink: https://
secure.commentworks.com/ftcdncfees2006 and following the
instructions on the web-based form. To
ensure that the Commission considers
an electronic comment, you must file it
on the web-based form at the https://
secure.commentworks.com/ftcdncfees2006 weblink. If this notice
appears at https://www.regulations.gov,
you may also file an electronic comment
through that Web site. The Commission
will consider all comments that
regulations.gov forwards to it. You may
also visit the FTC Web site at https://
www.ftc.gov/opa/2006/04/
dncfees2006.htm to read the Notice of
Proposed Rulemaking and the news
release describing this proposed Rule.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments, whether filed in
paper or electronic form, will be
considered by the Commission, and will
be available to the public on the FTC
ADDRESSES:
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
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Federal Register / Vol. 71, No. 83 / Monday, May 1, 2006 / Proposed Rules
Web site, to the extent practicable, at
https://www.ftc.gov/os/
publiccomments.htm. As a matter of
discretion, the FTC makes every effort to
remove home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC Web site. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at https://www.ftc.gov/
ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: John
A. Krebs, (202) 326–3747, Division of
Planning & Information, Bureau of
Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue,
NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
On December 18, 2002, the
Commission issued final amendments to
the Telemarketing Sales Rule, which,
inter alia, established the National Do
Not Call Registry, permitting consumers
to register, via either a toll-free
telephone number or the Internet, their
preference not to receive certain
telemarketing calls (‘‘Amended TSR’’).2
Under the Amended TSR, most
telemarketers are required to refrain
from calling consumers who have
placed their numbers on the registry.3
Telemarketers must periodically access
the registry to remove from their
telemarketing lists the telephone
numbers of those consumers who have
registered.4
Shortly after issuance of the Amended
TSR, Congress passed The Do-Not-Call
Implementation Act (‘‘the
Implementation Act’’).5 The
Implementation Act gave the
Commission the specific authority to
‘‘promulgate regulations establishing
fees sufficient to implement and enforce
the provisions relating to the ‘do-notcall’ registry of the [TSR] * * * No
amounts shall be collected as fees
pursuant to this section for such fiscal
years except to the extent provided in
advance in appropriations Acts. Such
amounts shall be available * * * to
offset the costs of activities and services
related to the implementation and
enforcement of the [TSR], and other
activities resulting from such
implementation and enforcement.’’ 6
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2 68
FR 4580 (Jan. 29, 2003).
CFR 310.4(b)(1)(iii)(B).
4 16 CFR 310.4(b)(3)(iv). The Commission
recently amended the TSR to requires telemarketers
to access the National Registry at least once every
31 days, effective January 1, 2005. See 69 FR 16368
(Mar. 29, 2004).
5 Pub. L. 108–10, 117 Stat. 557 (2003).
6 Id.
3 16
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On July 29, 2003, pursuant to the
Implementation Act and the
Consolidated Appropriations
Resolution, 2003,7 the Commission
issued a Final Rule further amending
the TSR to impose fees on entities
accessing the National Do Not Call
Registry (‘‘the Original Fee Rule’’).8
Those fees were based on the FTC’s best
estimate of the number of entities that
would be required to pay for access to
the National Registry, and the need to
raise $18.1 million in Fiscal Year 2003
to cover the costs associated with the
implementation and enforcement of the
‘‘do-not-call’’ provisions of the
Amended TSR. The Commission
determined that the fee structure would
be based on the number of different area
codes of data that an entity wished to
access annually. The Original Fee Rule
established an annual fee of $25 for each
area code of data requested from the
National Registry, with the first five area
codes of data provided at no cost.9 The
maximum annual fee was capped at
$7,375 for entities accessing 300 area
codes of data or more.10 On July 30,
2004, pursuant to the Implementation
Act and the Consolidated
Appropriations Act, 2004,11 the
Commission issued a revised Final Rule
further amending the TSR and
increasing fees on entities accessing the
National Do Not Call Registry (‘‘the 2004
Fee Rule’’).12 Those fees were based on
the FTC’s experience through June 1,
2004, its best estimate of the number of
entities that would be required to pay
for access to the National Registry, and
the need to raise $18 million in Fiscal
Year 2004 to cover the costs associated
with the implementation and
enforcement of the ‘‘do-not-call’’
provisions of the Amended TSR. The
Commission determined that the fee
structure would continue to be based on
the number of different area codes of
7 Pub.
L. 108–7, 117 Stat. 11 (2003).
FR 45134 (July 31, 2003).
9 Once an entity requested access to area codes of
data in the National Registry, it could access those
area codes as often as it deemed appropriate for one
year (defined as its ‘‘annual period’’). If, during the
course of its annual period, an entity needed to
access data from more area codes than those
initially selected, it would be required to pay for
access to those additional area codes. For purposes
of these additional payments, the annual period
was divided into two semi-annual periods of sixmonths each. Obtaining additional data from the
registry during the first semi-annual, six month
period required a payment of $25 for each new area
code. During the second semi-annual, six-month
period, the charge for obtaining data from each new
area code requested during that six-month period
was $15. These payments would provide the entity
access to those additional area codes of data for the
remainder of its annual period.
10 68 FR at 45141.
11 Pub. L. 108–199, 118 Stat. 3 (2004).
12 69 FR 45580 (July 30, 2004).
8 68
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data that an entity wished to access
annually. The 2004 Fee Rule established
an annual fee of $40 for each area code
of data requested from the National
Registry, with the first five area codes of
data provided at no cost.13 The
maximum annual fee was capped at
$11,000 for entities accessing 280 area
codes of data or more.14
On July 27, 2005, pursuant to the
Implementation Act and the
Consolidated Appropriations Act,
2005,15 the Commission issued a revised
Final Rule further amending the TSR
and increasing fees on entities accessing
the National Do Not Call Registry (‘‘the
2005 Fee Rule’’).16 These fees were
based on the FTC’s experience through
June 1, 2005, its best estimate of the
number of entities that would be
required to pay for access to the
National Registry, and the need to raise
$21.9 million in Fiscal Year 2005 to
cover the costs associated with the
implementation and enforcement of the
‘‘do-not-call’’ provisions of the
Amended TSR. The Commission again
determined that the fee structure would
be based on the number of different area
codes of data that an entity wished to
access annually. The 2005 Fee Rule
established an annual fee of $56 for each
area code of data requested from the
National Registry, with the first five area
codes of data provided at no cost.17 The
maximum annual fee was capped at
$15,400 for entities accessing 280 area
codes of data or more.18
In the Science, State, Justice,
Commerce, and Related Agencies
Appropriations Act, 2006 (‘‘the 2006
Appropriations Act’’),19 Congress
directed the FTC to collect offsetting
fees in the amount of $23 million in
Fiscal Year 2006 to implement and
enforce the TSR.20 Pursuant to the 2006
Appropriations Act and the
Implementation Act, as well as the
Telemarketing Fraud and Abuse
Prevention Act (‘‘the Telemarketing
Act’’),21 the FTC is issuing this NPRM
to amend the fees charged to entities
13 Id. at 45584. The 2004 Fee Rule had the same
fee structure as the Original Fee Rule. However, fees
were increased from $25 to $40 per area code for
the annual period and from $15 to $20 per area
code for the second six-month period.
14 Id.
15 Pub. L. 108–447, 118 Stat. 2809 (2004).
16 70 FR 43273 (July 27, 2005).
17 Id. at 43275. The 2005 Fee Rule had the same
fee structure as the 2004 Fee Rule, except that the
fees were increased from $40 to $56 per area code
for the annual period and from $20 to $28 per area
code for the second six-month period.
18 Id.
19 Pub. L. 109–108, 119 Stat. 2290 (2005).
20 Id. at 2330.
21 15 U.S.C. 6101–08.
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Federal Register / Vol. 71, No. 83 / Monday, May 1, 2006 / Proposed Rules
accessing the National Do Not Call
Registry.
II. Calculation of Proposed Revised
Fees
In the Original Fee Rule, the
Commission estimated that 10,000
entities would be required to pay for
access to the National Do Not Call
Registry. The Commission based its
estimate on the ‘‘best information
available to the agency’’ at that time.22
It noted that this estimate was based on
‘‘a number of significant assumptions,’’
about which the Commission had
sought additional information during
the comment period. The Commission
noted, however, that it received
virtually no comments providing
information supporting or challenging
these assumptions.23 As a result, the
Commission anticipated ‘‘that these fees
may need to be reexamined periodically
and adjusted, in future rulemaking
proceedings, to reflect actual experience
with operating the registry.’’ 24
In the 2004 Fee Rule, the Commission
reported that ‘‘[a]s of June 1, 2004, more
than 65,000 entities had accessed the
national registry. More than 57,000 of
those entities had accessed five or fewer
area codes of data at no charge, and
1,100 ‘exempt’ entities also accessed the
registry at no charge. Thus, more than
7,100 entities have paid for access to the
registry, with over 1,200 entities paying
for access to the entire registry.’’ 25 The
Commission based its calculation of
revised fees on this experience, with the
expectation that the number of entities
accessing the registry in Fiscal Year
2004 would be substantially the same as
in Fiscal Year 2003. As in the Original
Fee Rule, the Commission based its
estimate on the best information
available at the time, with the
continuing intent to periodically
reexamine and adjust the fees to reflect
actual experience with operating the
registry.
In the 2005 Fee Rule, the Commission
reported that from March 1, 2004
through February 28, 2005,26 ‘‘more
than 60,800 entities have accessed all or
part of the information in the registry.
Approximately 1,300 of these entities
are ‘exempt’ and therefore have
accessed the registry at no charge. An
additional 52,700 entities have accessed
five or fewer area codes of data, also at
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22 68
FR at 45140.
23 Id.
24 Id.
at 45142.
FR at 45584.
26 The Commission noted that ‘‘[a]s of June 1,
2005, there [had] been no significant or material
changes in the number of entities that have
accessed the registry since the Commission issued
2005 Fee Rule NPR.’’ 70 FR at 43279.
25 69
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no charge. As a result, approximately
6,700 entities have paid for access to the
registry, with slightly less than 1,100
entities paying for access to the entire
registry.’’ 27
From March 1, 2005 to February 28,
2006, slightly less than 66,200 entities
have accessed all or part of the
information in the registry.
Approximately 1,300 of these entities
are ‘‘exempt’’ and therefore have
accessed the registry at no charge.28 An
additional 58,300 entities have accessed
five or fewer area codes of data, also at
no charge. As a result, approximately
6,500 entities have paid for access to the
registry, with slightly less than 1,000
entities paying for access to the entire
registry.
As previously stated, the 2006
Appropriations Act directs the
Commission to collect offsetting fees in
Fiscal Year 2006 to implement and
enforce the Amended TSR.29 The
Commission is proposing a revised Fee
Rule to raise $23 million of fees to offset
costs it expects to incur in this Fiscal
Year for the following purposes related
to implementing and enforcing the
Amended TSR. First, funds are required
to operate the National Registry. This
includes items such as handling
consumer registration and complaints,
telemarketer access to the registry, state
access to the registry, and the
management and operation of law
enforcement access to appropriate
information.30 Second, funds are
27 79
FR at 43279 n. 81.
2005 Fee Rule, the 2004 Fee Rule, and the
Original Fee Rule stated that ‘‘there shall be no
charge to any person engaging in or causing others
to engage in outbound telephone calls to consumers
and who is accessing the National Do Not Call
Registry without being required to under this Rule,
47 CFR 64.1200, or any other federal law.’’ 16 CFR
310.8(c). Such ‘‘exempt’’ organizations include
entities that engage in outbound telephone calls to
consumers to induce charitable contributions, for
political fund raising, or to conduct surveys. They
also include entities engaged solely in calls to
persons with whom they have an established
business relationship or from whom they have
obtained express written agreement to call,
pursuant to 16 CFR 310.4(b)(1)(iii)(B)(i) or (ii), and
who do not access the National Registry for any
other purpose. See 70 FR at 43275; 69 FR at 45585–
6; and 68 FR at 45144.
29 2004 $23.1 See 119 Stat. at 2330. This $23.1
million includes collections of $5.1 million from
the Fiscal Year 2003 Original Fee Rule that were
actually collected in Fiscal Year 2004 and $18
million to be raised from this year’s Amended Fee
Rule.
30 From March 2005 to February 2006,
approximately 51 million phone numbers were
added to the National Registry, with a total since
inception of approximately 121 million
registrations. Since inception, the registry has also
handled many requests from organizations wishing
to access the registry (e.g. telemarketers, states, and
law enforcers), including hundreds of thousands of
subscription requests, and millions of area code
access requests (including downloads and
interactive search requests).
28 The
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required for law enforcement efforts,
including identifying targets,
coordinating domestic and international
initiatives, challenging alleged violators,
and consumer and business education
efforts, which are critical to securing
compliance with the Amended TSR.
These law enforcement efforts are a
significant component of the total costs,
given the large number of ongoing
investigations currently being
conducted by the agency, and the
substantial effort necessary to complete
such investigations. Third, funds are
required to cover ongoing agency
infrastructure and administration costs
associated with the operation and
enforcement of the registry, including
information technology structural
supports and distributed mission
overhead support costs for staff and
non-personnel expenses such as office
space, utilities, and supplies.
The Commission proposes to revise
the fees charged for access to the
National Registry based on the
assumption that approximately the same
number of entities will access similar
amounts of data from the National
Registry during their next annual
period.31 Based on that assumption, and
the continued allowance for free access
to ‘‘exempt’’ organizations and for the
first five area codes of data, the
proposed revised fee would be $62 per
area code. The maximum amount that
would be charged to any single entity
would be $17,050, which would be
charged to any entity accessing 280 area
codes of data or more. The fee charged
to entities requesting access to
additional area codes of data during the
second six months of their annual
period would be $31.
The Commission proposes to continue
allowing all entities accessing the
National Registry to obtain the first five
area codes of data for free.32 The
31 Telemarketers were first able to access the
National Registry on September 2, 2003. As a result,
the first year of operation did will not conclude
until August 31, 2004 and the second year of
operation did not end until August 31, 2005.
Similarly, the third year of operation will not end
until August 31, 2006. The Commission realizes
that a small number of additional entities may
access the National Registry for the first time prior
to September 1, 20062004, and should be
considered in calculating the revised fees. In this
regard, the Commission will adjust the assumptions
to reflect the actual number of entities that have
accessed the registry, and make the appropriate
changes to the fees, at the time of issuance of the
Final Rule.
32 If all entities accessing the National Registry
were charged for the first five area codes of data,
the cost per area code would be reduced to $38$32,
while the maximum amount charged to access the
entire National Registry would be $10,640$8960.
These hypothetical fee rates are based on the
assumption that the same number of entities would
pay to access the same number of area codes they
currently access for free.
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Commission allowed such free access in
the Original Fee Rule, the 2004 Fee
Rule, and the 2005 Fee Rule, ‘‘to limit
the burden placed on small businesses
that only require access to a small
portion of the national registry.’’ 33 The
Commission noted that such a fee
structure was consistent with the
mandate of the Regulatory Flexibility
Act,34 which requires that to the extent,
if any, a rule is expected to have a
significant economic impact on a
substantial number of small entities,
agencies should consider regulatory
alternatives to minimize such impact.
As stated in the prior fee rules, ‘‘the
Commission continues to believe that
providing access to five area codes of
data for free is an appropriate
compromise between the goals of
equitably and adequately funding the
national registry, on one hand, and
providing appropriate relief for small
businesses, on the other.’’ 35 In addition,
requiring over 58,000 entities to pay a
small fee for access to five or fewer area
codes from the National Registry would
place a significant burden on the
registry, requiring the expenditure of
even more resources to handle properly
that additional traffic. Nonetheless, the
Commission continues to seek comment
on this issue.
The Commission also proposes to
continue allowing ‘‘exempt’’
organizations, as discussed in footnote
28, above, to obtain free access to the
National Registry. The Commission
believes that any exempt entity,
voluntarily accessing the National
Registry to avoid calling consumers who
do not wish to receive telemarketing
calls, should not be charged for such
access. Charging such entities access
fees, when they are under no legal
obligation to comply with the ‘‘do-notcall’’ requirements of the TSR, may
make them less likely to obtain access
to the National Registry in the future,
resulting in an increase in unwanted
calls to consumers. As with free access
to five or fewer area codes, the
Commission seeks comment on this
issue as well.
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III. Invitation to Comment
All persons are hereby given notice of
the opportunity to submit written data,
views, facts, and arguments addressing
the issues raised by this NPRM. Written
comments must be received on or before
June 1, 2006. All comments should be
filed as prescribed in the ADDRESSES
section above.
IV. Communications by Outside Parties
to Commissioners or Their Advisors
Written communications and
summaries or transcripts of oral
communications respecting the merits
of this proceeding from any outside
party to any Commissioner or
Commissioner’s advisor will be placed
on the public record. See 16 CFR
1.26(b)(5).
V. Paperwork Reduction Act
Pursuant to the Paperwork Reduction
Act,36 the Office of Management and
Budget (‘‘OMB’’) approved the
information collection requirements in
the TSR and assigned OMB Control
Number 3084–0097.37 The proposed
rule amendment, as discussed above,
provides for an increase in the fees that
are charged for accessing the National
Do Not Call Registry. Therefore, the
proposed rule amendment does not
create any new recordkeeping,
reporting, or third-party disclosure
requirements that would be subject to
review and approval by OMB pursuant
to the Paperwork Reduction Act.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act 38
requires an agency either to provide an
Initial Regulatory Flexibility Analysis
(‘‘IRFA’’) with a proposed rule, or
certify that the proposed rule will not
have a significant economic impact on
a substantial number of small entities.
The FTC does not expect that the rule
concerning revised fees will have the
threshold impact on small entities. As
discussed in Section II, above, this
NPRM specifically proposes charging no
fee for access to one to five area codes
of data included in the registry. As a
result, the Commission anticipates that
many small businesses will be able to
access the National Registry without
having to pay any annual fee. Thus, it
is unlikely that there will be a
significant burden on small businesses
resulting from the adoption of the
proposed revised fees. Nonetheless, the
Commission has determined that it is
appropriate to publish an IRFA in order
to inquire into the impact of this
proposed rule on small entities.
Therefore, the Commission has prepared
the following analysis.
36 44
33 See
68 FR at 45140; 69 FR at 45582; and 70 FR
at 43275.
34 5 U.S.C. 601.
35 See 68 FR at 45141; 69 FR at 45584; and 70 FR
at 43275–6.
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U.S.C. 3501–3520.
staff is currently seeking an
extension of the clearance for the information
collection requirements associated with the TSR.
See 71 FR 3302 (January 20, 2006).
38 5 U.S.C. 604(a).
37 Commission
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Sfmt 4702
25515
A. Reasons for the Proposed Rule
As outlined in Section II, above, the
Commission is proposing to amend the
fees charged to entities accessing the
National Registry in order to raise
sufficient amounts to offset the current
year costs to implement and enforce the
Amended TSR.
B. Statement of Objectives and Legal
Basis
The objective of the current proposed
rule is to collect sufficient fees from
entities that must access the National Do
Not Call Registry. The legal authority for
this NPRM is the 2006 Appropriations
Act, the Implementation Act, and the
Telemarketing Act.
C. Description of Small Entities to
Which the Rule Will Apply
The Small Business Administration
has determined that ‘‘telemarketing
bureaus’’ with $6.5 million or less in
annual receipts qualify as small
businesses.39 Similar standards, i.e.,
$6.5 million or less in annual receipts,
apply for many retail businesses which
may be ‘‘sellers’’ and subject to the
proposed revised fee provisions
outlined in this NPRM. In addition,
there may be other types of businesses,
other than retail establishments, that
would be ‘‘sellers’’ subject to the
proposed rule.
As described in Section II, above, over
58,000 entities have accessed five or
fewer area codes of data from the
National Registry at no charge. While
not all of these entities may qualify as
small businesses, and some small
businesses may be required to purchase
access to more than five area codes of
data, the Commission believes that this
is the best estimate of the number of
small entities that would be subject to
the proposed revised fee rule. The
Commission invites comment on this
issue, including information about the
number and type of small business
entities that may be subject to the
revised fees.
D. Projected Reporting, Recordkeeping
and Other Compliance Requirements
The information collection activities
at issue in this NPRM consist
principally of the requirement that
firms, regardless of size, that access the
National Registry submit minimal
identifying and payment information,
which is necessary for the agency to
collect the required fees. The cost
impact of that requirement and the labor
or professional expertise required for
compliance with that requirement were
discussed in section V of the 2004 Fee
39 See
E:\FR\FM\01MYP1.SGM
13 CFR 121.201.
01MYP1
25516
Federal Register / Vol. 71, No. 83 / Monday, May 1, 2006 / Proposed Rules
Rule Notice of Proposed Rule Making.
69 FR 23701, 23704 (April 30, 2004).
As for compliance requirements,
small and large entities subject to the
revised fee rule will pay the same rates
to obtain access to the National Do Not
Call Registry in order to reconcile their
calling lists with the phone numbers
maintained in the National Registry. As
noted earlier, however, compliance
costs for small entities are not
anticipated to have a significant impact
on small entities, to the extent the
Commission believes that compliance
costs for those entities will be largely
minimized by their ability to obtain data
for up to five area codes at no charge.
E. Duplication With Other Federal Rules
None.
rwilkins on PROD1PC63 with PROPOSAL
F. Discussion of Significant Alternatives
The Commission recognizes that
alternatives to the proposed revised fee
are possible. For example, instead of a
fee based on the number of area codes
that a telemarketer accesses from the
National Registry, access could be
provided on the basis of a flat fee
regardless of the number of area codes
accessed. The Commission believes,
however, that these alternatives would
likely impose greater costs on small
businesses, to the extent they are more
likely to access fewer area codes than
larger entities.
Another alternative the Commission
has considered entails providing small
businesses with free access to the
National Registry.40 This alternative
would require entities seeking an
exemption from the fees to submit
information regarding their annual
revenues, to determine whether they
meet the statutory threshold to be
classified a small business and exempt
from the fees. The Commission
continues to believe, however, ‘‘an
alternative approach that would provide
small business with exemptive relief
more directly tied to size status would
not balance the private and public
interests at stake any more equitably or
reasonably than the approach currently
proposed by the Commission.’’ 41 The
Commission also continues to believe
that ‘‘such a system would present
greater administrative, technical, and
legal costs and complexities than the
Commission’s current proposal which
does not require any proof or
verification of that status.’’ 42
Accordingly, the Commission believes
its current proposal is likely to be the
40 See 69 FR at 45583; see also 68 FR 16238,
16243 n.53 (April 3, 2003).
41 See 68 FR at 16243 n.53.
42 Id.
VerDate Aug<31>2005
16:26 Apr 28, 2006
Jkt 208001
least burdensome for small businesses,
while achieving the goal of covering the
necessary costs to implement and
enforce the Amended TSR.
Despite these conclusions, the
Commission welcomes comment on any
significant alternatives that would
further minimize the impact on small
entities, consistent with the objectives
of the Telemarketing Act, the 2006
Appropriations Act, and the
Implementation Act.
List of Subjects in 16 CFR Part 310
Telemarketing, Trade practices.
VII. Proposed Rule
Accordingly, for the reasons stated in
the preamble, the Federal Trade
Commission proposes to amend part
310 of title 16 of the Code of Federal
Regulations as follows:
PART 310—TELEMARKETING SALES
RULE
1. The authority citation for part 310
continues to read as follows:
Authority: 15 U.S.C. 6101–6108.
2. Revise § 310.8(c) and (d) to read as
follows:
§ 310.8 Fee for access to the National Do
Not Call Registry.
*
*
*
*
*
(c) The annual fee, which must be
paid by any person prior to obtaining
access to the National Do Not Call
Registry, is $62 per area code of data
accessed, up to a maximum of $17,050;
provided, however, that there shall be
no charge for the first five area codes of
data accessed by any person, and
provided further, that there shall be no
charge to any person engaging in or
causing others to engage in outbound
telephone calls to consumers and who
is accessing the National Do Not Call
Registry without being required under
this Rule, 47 CFR 64.1200, or any other
federal law. Any person accessing the
National Do Not Call Registry may not
participate in any arrangement to share
the cost of accessing the registry,
including any arrangement with any
telemarketer or service provider to
divide the costs to access the registry
among various clients of that
telemarketer or service provider.
(d) After a person, either directly or
through another person, pays the fees
set forth in § 310.8(c), the person will be
provided a unique account number
which will allow that person to access
the registry data for the selected area
codes at any time for twelve months
following the first day of the month in
which the person paid the fee (‘‘the
annual period’’). To obtain access to
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
additional area codes of data during the
first six months of the annual period,
the person must first pay $62 for each
additional area code of data not initially
selected. To obtain access to additional
area codes of data during the second six
months of the annual period, the person
must first pay $31 for each additional
area code of data not initially selected.
The payment of the additional fee will
permit the person to access the
additional area codes of data for the
remainder of the annual period.
*
*
*
*
*
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E6–6507 Filed 4–28–06; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
23 CFR Parts 657 and 658
[FHWA Docket No. FHWA–2006–24134]
RIN 2125–AF17
Size and Weight Enforcement and
Regulations
Federal Highway
Administration (FHWA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM); request for comments.
AGENCY:
SUMMARY: This action updates the
regulations governing the enforcement
of commercial vehicle size and weight
to incorporate provisions enacted in the
Safe, Accountable, Flexible, Efficient,
Transportation Equity Act: a Legacy for
Users (SAFETEA–LU); the Energy
Policy Act of 2005; and, the
Transportation, Treasury, Housing and
Urban Development, the Judiciary, the
District of Columbia, and Independent
Agencies Appropriations Act of 2006.
This action would further add various
definitions; correct obsolete references,
definitions, and footnotes; eliminate
redundant provisions; amend numerical
route changes to the National Highway
designations; and incorporate statutorily
mandated weight and length limit
provisions.
DATES: Comments must be received on
or before June 30, 2006. Late-filed
comments will be considered to the
extent practicable.
ADDRESSES: Mail or hand deliver
comments to the U.S. Department of
Transportation, Dockets Management
Facility, Room PL–401, 400 Seventh
Street, SW., Washington, DC 20590, or
submit electronically at https://
E:\FR\FM\01MYP1.SGM
01MYP1
Agencies
[Federal Register Volume 71, Number 83 (Monday, May 1, 2006)]
[Proposed Rules]
[Pages 25512-25516]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6507]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 310
RIN 3084-0098
Telemarketing Sales Rule Fees
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking; request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (the ``Commission'' or ``FTC'')
is issuing a Notice of Proposed Rulemaking (``NPRM'') to amend the
Telemarketing Sales Rule (``TSR'') to revise the fees charged to
entities accessing the National Do Not Call Registry, and invites
written comments on the issues raised by the proposed changes.
DATES: Written comments must be received on or before June 1, 2006.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``TSR Fee Rule, Project No. P034305,'' to
facilitate the organization of comments. A comment filed in paper form
should include this reference both in the text and on the envelope, and
should be mailed or delivered, with two complete copies, to the
following address: Federal Trade Commission/Office of the Secretary,
Room H-135 (Annex D), 600 Pennsylvania Avenue, NW., Washington, DC
20580. The FTC is requesting that any comment filed in paper form be
sent by courier or overnight service, if possible, because U.S. postal
mail in the Washington area and at the Commission is subject to delay
due to heightened security precautions. Moreover, because paper mail in
the Washington area and at the Commission is subject to delay, please
consider submitting your comments in electronic form, as prescribed
below. Comments containing confidential material, however, must be
filed in paper form, must be clearly labeled ``Confidential,'' and must
comply with Commission Rule 4.9(c).\1\
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\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
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Comments filed in electronic form should be submitted by clicking
on the following weblink: https://secure.commentworks.com/ftc-
dncfees2006 and following the instructions on the web-based form. To
ensure that the Commission considers an electronic comment, you must
file it on the web-based form at the https://secure.commentworks.com/
ftc-dncfees2006 weblink. If this notice appears at https://
www.regulations.gov, you may also file an electronic comment through
that Web site. The Commission will consider all comments that
regulations.gov forwards to it. You may also visit the FTC Web site at
https://www.ftc.gov/opa/2006/04/dncfees2006.htm to read the Notice of
Proposed Rulemaking and the news release describing this proposed Rule.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC
[[Page 25513]]
Web site, to the extent practicable, at https://www.ftc.gov/os/
publiccomments.htm. As a matter of discretion, the FTC makes every
effort to remove home contact information for individuals from the
public comments it receives before placing those comments on the FTC
Web site. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at https://
www.ftc.gov/ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: John A. Krebs, (202) 326-3747,
Division of Planning & Information, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Background
On December 18, 2002, the Commission issued final amendments to the
Telemarketing Sales Rule, which, inter alia, established the National
Do Not Call Registry, permitting consumers to register, via either a
toll-free telephone number or the Internet, their preference not to
receive certain telemarketing calls (``Amended TSR'').\2\ Under the
Amended TSR, most telemarketers are required to refrain from calling
consumers who have placed their numbers on the registry.\3\
Telemarketers must periodically access the registry to remove from
their telemarketing lists the telephone numbers of those consumers who
have registered.\4\
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\2\ 68 FR 4580 (Jan. 29, 2003).
\3\ 16 CFR 310.4(b)(1)(iii)(B).
\4\ 16 CFR 310.4(b)(3)(iv). The Commission recently amended the
TSR to requires telemarketers to access the National Registry at
least once every 31 days, effective January 1, 2005. See 69 FR 16368
(Mar. 29, 2004).
---------------------------------------------------------------------------
Shortly after issuance of the Amended TSR, Congress passed The Do-
Not-Call Implementation Act (``the Implementation Act'').\5\ The
Implementation Act gave the Commission the specific authority to
``promulgate regulations establishing fees sufficient to implement and
enforce the provisions relating to the `do-not-call' registry of the
[TSR] * * * No amounts shall be collected as fees pursuant to this
section for such fiscal years except to the extent provided in advance
in appropriations Acts. Such amounts shall be available * * * to offset
the costs of activities and services related to the implementation and
enforcement of the [TSR], and other activities resulting from such
implementation and enforcement.'' \6\
---------------------------------------------------------------------------
\5\ Pub. L. 108-10, 117 Stat. 557 (2003).
\6\ Id.
---------------------------------------------------------------------------
On July 29, 2003, pursuant to the Implementation Act and the
Consolidated Appropriations Resolution, 2003,\7\ the Commission issued
a Final Rule further amending the TSR to impose fees on entities
accessing the National Do Not Call Registry (``the Original Fee
Rule'').\8\ Those fees were based on the FTC's best estimate of the
number of entities that would be required to pay for access to the
National Registry, and the need to raise $18.1 million in Fiscal Year
2003 to cover the costs associated with the implementation and
enforcement of the ``do-not-call'' provisions of the Amended TSR. The
Commission determined that the fee structure would be based on the
number of different area codes of data that an entity wished to access
annually. The Original Fee Rule established an annual fee of $25 for
each area code of data requested from the National Registry, with the
first five area codes of data provided at no cost.\9\ The maximum
annual fee was capped at $7,375 for entities accessing 300 area codes
of data or more.\10\ On July 30, 2004, pursuant to the Implementation
Act and the Consolidated Appropriations Act, 2004,\11\ the Commission
issued a revised Final Rule further amending the TSR and increasing
fees on entities accessing the National Do Not Call Registry (``the
2004 Fee Rule'').\12\ Those fees were based on the FTC's experience
through June 1, 2004, its best estimate of the number of entities that
would be required to pay for access to the National Registry, and the
need to raise $18 million in Fiscal Year 2004 to cover the costs
associated with the implementation and enforcement of the ``do-not-
call'' provisions of the Amended TSR. The Commission determined that
the fee structure would continue to be based on the number of different
area codes of data that an entity wished to access annually. The 2004
Fee Rule established an annual fee of $40 for each area code of data
requested from the National Registry, with the first five area codes of
data provided at no cost.\13\ The maximum annual fee was capped at
$11,000 for entities accessing 280 area codes of data or more.\14\
---------------------------------------------------------------------------
\7\ Pub. L. 108-7, 117 Stat. 11 (2003).
\8\ 68 FR 45134 (July 31, 2003).
\9\ Once an entity requested access to area codes of data in the
National Registry, it could access those area codes as often as it
deemed appropriate for one year (defined as its ``annual period'').
If, during the course of its annual period, an entity needed to
access data from more area codes than those initially selected, it
would be required to pay for access to those additional area codes.
For purposes of these additional payments, the annual period was
divided into two semi-annual periods of six-months each. Obtaining
additional data from the registry during the first semi-annual, six
month period required a payment of $25 for each new area code.
During the second semi-annual, six-month period, the charge for
obtaining data from each new area code requested during that six-
month period was $15. These payments would provide the entity access
to those additional area codes of data for the remainder of its
annual period.
\10\ 68 FR at 45141.
\11\ Pub. L. 108-199, 118 Stat. 3 (2004).
\12\ 69 FR 45580 (July 30, 2004).
\13\ Id. at 45584. The 2004 Fee Rule had the same fee structure
as the Original Fee Rule. However, fees were increased from $25 to
$40 per area code for the annual period and from $15 to $20 per area
code for the second six-month period.
\14\ Id.
---------------------------------------------------------------------------
On July 27, 2005, pursuant to the Implementation Act and the
Consolidated Appropriations Act, 2005,\15\ the Commission issued a
revised Final Rule further amending the TSR and increasing fees on
entities accessing the National Do Not Call Registry (``the 2005 Fee
Rule'').\16\ These fees were based on the FTC's experience through June
1, 2005, its best estimate of the number of entities that would be
required to pay for access to the National Registry, and the need to
raise $21.9 million in Fiscal Year 2005 to cover the costs associated
with the implementation and enforcement of the ``do-not-call''
provisions of the Amended TSR. The Commission again determined that the
fee structure would be based on the number of different area codes of
data that an entity wished to access annually. The 2005 Fee Rule
established an annual fee of $56 for each area code of data requested
from the National Registry, with the first five area codes of data
provided at no cost.\17\ The maximum annual fee was capped at $15,400
for entities accessing 280 area codes of data or more.\18\
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\15\ Pub. L. 108-447, 118 Stat. 2809 (2004).
\16\ 70 FR 43273 (July 27, 2005).
\17\ Id. at 43275. The 2005 Fee Rule had the same fee structure
as the 2004 Fee Rule, except that the fees were increased from $40
to $56 per area code for the annual period and from $20 to $28 per
area code for the second six-month period.
\18\ Id.
---------------------------------------------------------------------------
In the Science, State, Justice, Commerce, and Related Agencies
Appropriations Act, 2006 (``the 2006 Appropriations Act''),\19\
Congress directed the FTC to collect offsetting fees in the amount of
$23 million in Fiscal Year 2006 to implement and enforce the TSR.\20\
Pursuant to the 2006 Appropriations Act and the Implementation Act, as
well as the Telemarketing Fraud and Abuse Prevention Act (``the
Telemarketing Act''),\21\ the FTC is issuing this NPRM to amend the
fees charged to entities
[[Page 25514]]
accessing the National Do Not Call Registry.
---------------------------------------------------------------------------
\19\ Pub. L. 109-108, 119 Stat. 2290 (2005).
\20\ Id. at 2330.
\21\ 15 U.S.C. 6101-08.
---------------------------------------------------------------------------
II. Calculation of Proposed Revised Fees
In the Original Fee Rule, the Commission estimated that 10,000
entities would be required to pay for access to the National Do Not
Call Registry. The Commission based its estimate on the ``best
information available to the agency'' at that time.\22\ It noted that
this estimate was based on ``a number of significant assumptions,''
about which the Commission had sought additional information during the
comment period. The Commission noted, however, that it received
virtually no comments providing information supporting or challenging
these assumptions.\23\ As a result, the Commission anticipated ``that
these fees may need to be reexamined periodically and adjusted, in
future rulemaking proceedings, to reflect actual experience with
operating the registry.'' \24\
---------------------------------------------------------------------------
\22\ 68 FR at 45140.
\23\ Id.
\24\ Id. at 45142.
---------------------------------------------------------------------------
In the 2004 Fee Rule, the Commission reported that ``[a]s of June
1, 2004, more than 65,000 entities had accessed the national registry.
More than 57,000 of those entities had accessed five or fewer area
codes of data at no charge, and 1,100 `exempt' entities also accessed
the registry at no charge. Thus, more than 7,100 entities have paid for
access to the registry, with over 1,200 entities paying for access to
the entire registry.'' 25 The Commission based its
calculation of revised fees on this experience, with the expectation
that the number of entities accessing the registry in Fiscal Year 2004
would be substantially the same as in Fiscal Year 2003. As in the
Original Fee Rule, the Commission based its estimate on the best
information available at the time, with the continuing intent to
periodically reexamine and adjust the fees to reflect actual experience
with operating the registry.
---------------------------------------------------------------------------
\25\ 69 FR at 45584.
---------------------------------------------------------------------------
In the 2005 Fee Rule, the Commission reported that from March 1,
2004 through February 28, 2005,26 ``more than 60,800
entities have accessed all or part of the information in the registry.
Approximately 1,300 of these entities are `exempt' and therefore have
accessed the registry at no charge. An additional 52,700 entities have
accessed five or fewer area codes of data, also at no charge. As a
result, approximately 6,700 entities have paid for access to the
registry, with slightly less than 1,100 entities paying for access to
the entire registry.'' 27
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\26\ The Commission noted that ``[a]s of June 1, 2005, there
[had] been no significant or material changes in the number of
entities that have accessed the registry since the Commission issued
2005 Fee Rule NPR.'' 70 FR at 43279.
\27\ 79 FR at 43279 n. 81.
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From March 1, 2005 to February 28, 2006, slightly less than 66,200
entities have accessed all or part of the information in the registry.
Approximately 1,300 of these entities are ``exempt'' and therefore have
accessed the registry at no charge.28 An additional 58,300
entities have accessed five or fewer area codes of data, also at no
charge. As a result, approximately 6,500 entities have paid for access
to the registry, with slightly less than 1,000 entities paying for
access to the entire registry.
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\28\ The 2005 Fee Rule, the 2004 Fee Rule, and the Original Fee
Rule stated that ``there shall be no charge to any person engaging
in or causing others to engage in outbound telephone calls to
consumers and who is accessing the National Do Not Call Registry
without being required to under this Rule, 47 CFR 64.1200, or any
other federal law.'' 16 CFR 310.8(c). Such ``exempt'' organizations
include entities that engage in outbound telephone calls to
consumers to induce charitable contributions, for political fund
raising, or to conduct surveys. They also include entities engaged
solely in calls to persons with whom they have an established
business relationship or from whom they have obtained express
written agreement to call, pursuant to 16 CFR 310.4(b)(1)(iii)(B)(i)
or (ii), and who do not access the National Registry for any other
purpose. See 70 FR at 43275; 69 FR at 45585-6; and 68 FR at 45144.
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As previously stated, the 2006 Appropriations Act directs the
Commission to collect offsetting fees in Fiscal Year 2006 to implement
and enforce the Amended TSR.29 The Commission is proposing a
revised Fee Rule to raise $23 million of fees to offset costs it
expects to incur in this Fiscal Year for the following purposes related
to implementing and enforcing the Amended TSR. First, funds are
required to operate the National Registry. This includes items such as
handling consumer registration and complaints, telemarketer access to
the registry, state access to the registry, and the management and
operation of law enforcement access to appropriate
information.30 Second, funds are required for law
enforcement efforts, including identifying targets, coordinating
domestic and international initiatives, challenging alleged violators,
and consumer and business education efforts, which are critical to
securing compliance with the Amended TSR. These law enforcement efforts
are a significant component of the total costs, given the large number
of ongoing investigations currently being conducted by the agency, and
the substantial effort necessary to complete such investigations.
Third, funds are required to cover ongoing agency infrastructure and
administration costs associated with the operation and enforcement of
the registry, including information technology structural supports and
distributed mission overhead support costs for staff and non-personnel
expenses such as office space, utilities, and supplies.
---------------------------------------------------------------------------
\29\ 2004 $23.1 See 119 Stat. at 2330. This $23.1 million
includes collections of $5.1 million from the Fiscal Year 2003
Original Fee Rule that were actually collected in Fiscal Year 2004
and $18 million to be raised from this year's Amended Fee Rule.
\30\ From March 2005 to February 2006, approximately 51 million
phone numbers were added to the National Registry, with a total
since inception of approximately 121 million registrations. Since
inception, the registry has also handled many requests from
organizations wishing to access the registry (e.g. telemarketers,
states, and law enforcers), including hundreds of thousands of
subscription requests, and millions of area code access requests
(including downloads and interactive search requests).
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The Commission proposes to revise the fees charged for access to
the National Registry based on the assumption that approximately the
same number of entities will access similar amounts of data from the
National Registry during their next annual period.31 Based
on that assumption, and the continued allowance for free access to
``exempt'' organizations and for the first five area codes of data, the
proposed revised fee would be $62 per area code. The maximum amount
that would be charged to any single entity would be $17,050, which
would be charged to any entity accessing 280 area codes of data or
more. The fee charged to entities requesting access to additional area
codes of data during the second six months of their annual period would
be $31.
---------------------------------------------------------------------------
\31\ Telemarketers were first able to access the National
Registry on September 2, 2003. As a result, the first year of
operation did will not conclude until August 31, 2004 and the second
year of operation did not end until August 31, 2005. Similarly, the
third year of operation will not end until August 31, 2006. The
Commission realizes that a small number of additional entities may
access the National Registry for the first time prior to September
1, 20062004, and should be considered in calculating the revised
fees. In this regard, the Commission will adjust the assumptions to
reflect the actual number of entities that have accessed the
registry, and make the appropriate changes to the fees, at the time
of issuance of the Final Rule.
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The Commission proposes to continue allowing all entities accessing
the National Registry to obtain the first five area codes of data for
free.32 The
[[Page 25515]]
Commission allowed such free access in the Original Fee Rule, the 2004
Fee Rule, and the 2005 Fee Rule, ``to limit the burden placed on small
businesses that only require access to a small portion of the national
registry.'' 33 The Commission noted that such a fee
structure was consistent with the mandate of the Regulatory Flexibility
Act,34 which requires that to the extent, if any, a rule is
expected to have a significant economic impact on a substantial number
of small entities, agencies should consider regulatory alternatives to
minimize such impact. As stated in the prior fee rules, ``the
Commission continues to believe that providing access to five area
codes of data for free is an appropriate compromise between the goals
of equitably and adequately funding the national registry, on one hand,
and providing appropriate relief for small businesses, on the other.''
35 In addition, requiring over 58,000 entities to pay a
small fee for access to five or fewer area codes from the National
Registry would place a significant burden on the registry, requiring
the expenditure of even more resources to handle properly that
additional traffic. Nonetheless, the Commission continues to seek
comment on this issue.
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\32\ If all entities accessing the National Registry were
charged for the first five area codes of data, the cost per area
code would be reduced to $38$32, while the maximum amount charged to
access the entire National Registry would be $10,640$8960. These
hypothetical fee rates are based on the assumption that the same
number of entities would pay to access the same number of area codes
they currently access for free.
\33\ See 68 FR at 45140; 69 FR at 45582; and 70 FR at 43275.
\34\ 5 U.S.C. 601.
\35\ See 68 FR at 45141; 69 FR at 45584; and 70 FR at 43275-6.
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The Commission also proposes to continue allowing ``exempt''
organizations, as discussed in footnote 28, above, to obtain free
access to the National Registry. The Commission believes that any
exempt entity, voluntarily accessing the National Registry to avoid
calling consumers who do not wish to receive telemarketing calls,
should not be charged for such access. Charging such entities access
fees, when they are under no legal obligation to comply with the ``do-
not-call'' requirements of the TSR, may make them less likely to obtain
access to the National Registry in the future, resulting in an increase
in unwanted calls to consumers. As with free access to five or fewer
area codes, the Commission seeks comment on this issue as well.
III. Invitation to Comment
All persons are hereby given notice of the opportunity to submit
written data, views, facts, and arguments addressing the issues raised
by this NPRM. Written comments must be received on or before June 1,
2006. All comments should be filed as prescribed in the ADDRESSES
section above.
IV. Communications by Outside Parties to Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding from any
outside party to any Commissioner or Commissioner's advisor will be
placed on the public record. See 16 CFR 1.26(b)(5).
V. Paperwork Reduction Act
Pursuant to the Paperwork Reduction Act,\36\ the Office of
Management and Budget (``OMB'') approved the information collection
requirements in the TSR and assigned OMB Control Number 3084-0097.\37\
The proposed rule amendment, as discussed above, provides for an
increase in the fees that are charged for accessing the National Do Not
Call Registry. Therefore, the proposed rule amendment does not create
any new recordkeeping, reporting, or third-party disclosure
requirements that would be subject to review and approval by OMB
pursuant to the Paperwork Reduction Act.
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\36\ 44 U.S.C. 3501-3520.
\37\ Commission staff is currently seeking an extension of the
clearance for the information collection requirements associated
with the TSR. See 71 FR 3302 (January 20, 2006).
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VI. Regulatory Flexibility Act
The Regulatory Flexibility Act \38\ requires an agency either to
provide an Initial Regulatory Flexibility Analysis (``IRFA'') with a
proposed rule, or certify that the proposed rule will not have a
significant economic impact on a substantial number of small entities.
The FTC does not expect that the rule concerning revised fees will have
the threshold impact on small entities. As discussed in Section II,
above, this NPRM specifically proposes charging no fee for access to
one to five area codes of data included in the registry. As a result,
the Commission anticipates that many small businesses will be able to
access the National Registry without having to pay any annual fee.
Thus, it is unlikely that there will be a significant burden on small
businesses resulting from the adoption of the proposed revised fees.
Nonetheless, the Commission has determined that it is appropriate to
publish an IRFA in order to inquire into the impact of this proposed
rule on small entities. Therefore, the Commission has prepared the
following analysis.
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\38\ 5 U.S.C. 604(a).
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A. Reasons for the Proposed Rule
As outlined in Section II, above, the Commission is proposing to
amend the fees charged to entities accessing the National Registry in
order to raise sufficient amounts to offset the current year costs to
implement and enforce the Amended TSR.
B. Statement of Objectives and Legal Basis
The objective of the current proposed rule is to collect sufficient
fees from entities that must access the National Do Not Call Registry.
The legal authority for this NPRM is the 2006 Appropriations Act, the
Implementation Act, and the Telemarketing Act.
C. Description of Small Entities to Which the Rule Will Apply
The Small Business Administration has determined that
``telemarketing bureaus'' with $6.5 million or less in annual receipts
qualify as small businesses.\39\ Similar standards, i.e., $6.5 million
or less in annual receipts, apply for many retail businesses which may
be ``sellers'' and subject to the proposed revised fee provisions
outlined in this NPRM. In addition, there may be other types of
businesses, other than retail establishments, that would be ``sellers''
subject to the proposed rule.
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\39\ See 13 CFR 121.201.
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As described in Section II, above, over 58,000 entities have
accessed five or fewer area codes of data from the National Registry at
no charge. While not all of these entities may qualify as small
businesses, and some small businesses may be required to purchase
access to more than five area codes of data, the Commission believes
that this is the best estimate of the number of small entities that
would be subject to the proposed revised fee rule. The Commission
invites comment on this issue, including information about the number
and type of small business entities that may be subject to the revised
fees.
D. Projected Reporting, Recordkeeping and Other Compliance Requirements
The information collection activities at issue in this NPRM consist
principally of the requirement that firms, regardless of size, that
access the National Registry submit minimal identifying and payment
information, which is necessary for the agency to collect the required
fees. The cost impact of that requirement and the labor or professional
expertise required for compliance with that requirement were discussed
in section V of the 2004 Fee
[[Page 25516]]
Rule Notice of Proposed Rule Making. 69 FR 23701, 23704 (April 30,
2004).
As for compliance requirements, small and large entities subject to
the revised fee rule will pay the same rates to obtain access to the
National Do Not Call Registry in order to reconcile their calling lists
with the phone numbers maintained in the National Registry. As noted
earlier, however, compliance costs for small entities are not
anticipated to have a significant impact on small entities, to the
extent the Commission believes that compliance costs for those entities
will be largely minimized by their ability to obtain data for up to
five area codes at no charge.
E. Duplication With Other Federal Rules
None.
F. Discussion of Significant Alternatives
The Commission recognizes that alternatives to the proposed revised
fee are possible. For example, instead of a fee based on the number of
area codes that a telemarketer accesses from the National Registry,
access could be provided on the basis of a flat fee regardless of the
number of area codes accessed. The Commission believes, however, that
these alternatives would likely impose greater costs on small
businesses, to the extent they are more likely to access fewer area
codes than larger entities.
Another alternative the Commission has considered entails providing
small businesses with free access to the National Registry.\40\ This
alternative would require entities seeking an exemption from the fees
to submit information regarding their annual revenues, to determine
whether they meet the statutory threshold to be classified a small
business and exempt from the fees. The Commission continues to believe,
however, ``an alternative approach that would provide small business
with exemptive relief more directly tied to size status would not
balance the private and public interests at stake any more equitably or
reasonably than the approach currently proposed by the Commission.''
\41\ The Commission also continues to believe that ``such a system
would present greater administrative, technical, and legal costs and
complexities than the Commission's current proposal which does not
require any proof or verification of that status.'' \42\
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\40\ See 69 FR at 45583; see also 68 FR 16238, 16243 n.53 (April
3, 2003).
\41\ See 68 FR at 16243 n.53.
\42\ Id.
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Accordingly, the Commission believes its current proposal is likely
to be the least burdensome for small businesses, while achieving the
goal of covering the necessary costs to implement and enforce the
Amended TSR.
Despite these conclusions, the Commission welcomes comment on any
significant alternatives that would further minimize the impact on
small entities, consistent with the objectives of the Telemarketing
Act, the 2006 Appropriations Act, and the Implementation Act.
List of Subjects in 16 CFR Part 310
Telemarketing, Trade practices.
VII. Proposed Rule
Accordingly, for the reasons stated in the preamble, the Federal
Trade Commission proposes to amend part 310 of title 16 of the Code of
Federal Regulations as follows:
PART 310--TELEMARKETING SALES RULE
1. The authority citation for part 310 continues to read as
follows:
Authority: 15 U.S.C. 6101-6108.
2. Revise Sec. 310.8(c) and (d) to read as follows:
Sec. 310.8 Fee for access to the National Do Not Call Registry.
* * * * *
(c) The annual fee, which must be paid by any person prior to
obtaining access to the National Do Not Call Registry, is $62 per area
code of data accessed, up to a maximum of $17,050; provided, however,
that there shall be no charge for the first five area codes of data
accessed by any person, and provided further, that there shall be no
charge to any person engaging in or causing others to engage in
outbound telephone calls to consumers and who is accessing the National
Do Not Call Registry without being required under this Rule, 47 CFR
64.1200, or any other federal law. Any person accessing the National Do
Not Call Registry may not participate in any arrangement to share the
cost of accessing the registry, including any arrangement with any
telemarketer or service provider to divide the costs to access the
registry among various clients of that telemarketer or service
provider.
(d) After a person, either directly or through another person, pays
the fees set forth in Sec. 310.8(c), the person will be provided a
unique account number which will allow that person to access the
registry data for the selected area codes at any time for twelve months
following the first day of the month in which the person paid the fee
(``the annual period''). To obtain access to additional area codes of
data during the first six months of the annual period, the person must
first pay $62 for each additional area code of data not initially
selected. To obtain access to additional area codes of data during the
second six months of the annual period, the person must first pay $31
for each additional area code of data not initially selected. The
payment of the additional fee will permit the person to access the
additional area codes of data for the remainder of the annual period.
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E6-6507 Filed 4-28-06; 8:45 am]
BILLING CODE 6750-01-P