Agency Information Collection Activities; Submission for OMB Review; Comment Request, 61648-61652 [E7-21399]
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Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Notices
November 1, 2007. You also will be
asked to provide identifying
information, including a photo ID,
before being admitted to the Board
meeting. The Public Affairs Office must
approve the use of cameras; please call
202–452–2955 for further information. If
you need an accommodation for a
disability, please contact Penelope
Beattie on 202–452–3982. For the
hearing impaired only, please use the
Telecommunication Device for the Deaf
(TDD) on 202– 263–4869.
Privacy Act Notice: Providing the
information requested is voluntary;
however, failure to provide your name,
date of birth, and social security number
or passport number may result in denial
of entry to the Federal Reserve Board.
This information is solicited pursuant to
Sections 10 and 11 of the Federal
Reserve Act and will be used to
facilitate a search of law enforcement
databases to confirm that no threat is
posed to Board employees or property.
It may be disclosed to other persons to
evaluate a potential threat. The
information also may be provided to law
enforcement agencies, courts, and
others, but only to the extent necessary
to investigate or prosecute a violation of
law.
MATTERS TO BE CONSIDERED:
Discussion Agenda:
1. Final Basel II risk–based capital
framework.
Note: 1. The staff memo to the Board
will be made available to the public in
paper. The background document for
this item consists of more than 800
pages and it will be made available to
the public on a computer disc in Word
format. If you require a paper copy of
the document, please call Penelope
Beattie on 202–452–3982.
2. This meeting will be recorded for
the benefit of those unable to attend.
Cassettes will then be available for
listening in the Board’s Freedom of
Information Office, and copies can be
ordered for $6 per cassette by calling
202–452–3684 or by writing to: Freedom
of Information Office, Board of
Governors of the Federal Reserve
System, Washington, D.C. 20551.
FOR FURTHER INFORMATION CONTACT:
Michelle Smith, Director, or Dave
Skidmore, Assistant to the Board, Office
of Board Members at 202–452–2955.
SUPPLEMENTARY INFORMATION: You may
call 202–452–3206 for a recorded
announcement of this meeting; or you
may contact the Board’s Web site at
https://www.federalreserve.gov for an
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Board of Governors of the Federal Reserve
System, October 26, 2007.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. 07–5430 Filed 10–29–07; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
Sunshine Act; Notice of Meeting
Time and Date:
9 a.m. (Eastern Time), November 19,
2007.
PLACE: 4th Floor Conference Room,
1250 H Street, NW., Washington, DC
20005.
STATUS: Open.
MATTERS TO BE CONSIDERED:
1. Approval of the minutes of the
October 15, 2007 Board member
meeting.
2. Executive Director’s Report:
a. Monthly Participant Activity
Report.
b. Monthly Investment Performance
Report.
c. Legislative Report.
3. Trade Pattern Analysis
4. Internal Controls Initiative
CONTACT PERSON FOR MORE INFORMATION:
Thomas J. Trabucco, Director, Office of
External Affairs, (202) 942–1640.
Dated: October 29, 2007.
Thomas K. Emswiler,
Secretary to the Board, Federal Retirement
Thrift Investment Board.
[FR Doc. 07–5436 Filed 10–29–07; 12:33pm]
BILLING CODE 6760–01–P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Submission for OMB
Review; Comment Request
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
AGENCY:
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. The FTC is seeking public
comments on its proposal to extend
through November 30, 2010 the current
OMB clearance for the information
collection requirements contained in the
Commission’s Rule Concerning
Disclosure of Written Consumer Product
Warranty Terms and Conditions. The
clearance is scheduled to expire on
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November 30, 2007. The FTC is also
seeking public comments on its
proposal to extend through December
31, 2010 the current OMB clearances for
the information collection requirements
contained in the Commission’s Rule
Governing Pre-Sale Availability of
Written Warranty Terms and the
Informal Dispute Settlement Procedures
Rule. Those clearances are scheduled to
expire on December 31, 2007.
DATES: Comments must be filed by
November 30, 2007.
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘Warranty
Rules: Paperwork Comment, FTC File
No. P044403’’ 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, Room H-135, 600
Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. 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.
However, if the comment contains any
material for which confidential
treatment is requested, it must be filed
in paper form, and the first page of the
document must be clearly labeled
‘‘Confidential.’’1 The FTC is requesting
that any comment filed in paper form be
sent by courier or overnight service, if
possible.
Comments filed in electronic form
should be submitted by using the
following weblink: https://
secure.commentworks.com/ftcwarrantypra (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 weblink:
https://secure.commentworks.com/ftcwarrantypra. If this notice appears at
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.
Comments should also be submitted
to: Office of Management and Budget,
Attention: Desk Officer for the Federal
1Commission Rule 4.2(d), 16 CFR 4.2(d). 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. 72, No. 210 / Wednesday, October 31, 2007 / Notices
Trade Commission. Comments should
be submitted via facsimile to (202) 3956974 because U.S. Postal Mail is subject
to lengthy delays due to heightened
security precautions.
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 will be considered by
the Commission, and will be available
to the public on the FTC Web site, to the
extent practicable, at www.ftc.gov. 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.
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FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the proposed information
requirements should be addressed to
Allyson Himelfarb, Investigator,
Division of Marketing Practices, Bureau
of Consumer Protection, Federal Trade
Commission, Room H-292, 600
Pennsylvania Ave., N.W., Washington,
D.C. 20580, (202) 326-2505.
SUPPLEMENTARY INFORMATION: Under the
Paperwork Reduction Act (‘‘PRA’’), 44
U.S.C. 3501-3521, federal agencies must
obtain approval from OMB for each
collection of information they conduct
or sponsor. On August 7, 2007, the FTC
sought comment on the information
collection requirements associated with
the FTC’s (1) Rule Concerning
Disclosure of Written Consumer Product
Warranty Terms and Conditions (OMB
Control Number 3084-0111); (2) Rule
Governing Pre-Sale Availability of
Written Warranty Terms (OMB Control
Number 3084-0112); and (3) Informal
Dispute Settlement Procedures Rule
(OMB Control Number 3084-0113)
(collectively, ‘‘Warranty Rules’’).2 No
comments were received. Pursuant to
the OMB regulations that implement the
PRA (5 CFR Part 1320), the FTC is
providing this second opportunity for
public comment while seeking OMB
approval to extend the existing
paperwork clearance for the Warranty
Rules. All comments should be filed as
prescribed in the ADDRESSES section
above, and must be received on or
before November 30, 2007.
272
FR 44140 (Aug. 7, 2007). The FTC issued a
correction Notice on August 10, 2007 (72 FR 45050)
in order to provide the appropriate weblink for
submitting electronic comments.
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The Warranty Rules implement the
Magnuson-Moss Warranty Act, 15
U.S.C. 2301 et seq. (‘‘Warranty Act’’ or
‘‘Act’’), which required the FTC to issue
three rules relating to warranties on
consumer products: the disclosure of
written warranty terms and conditions;
pre-sale availability of warranty terms;
and rules establishing minimum
standards for informal dispute
settlement mechanisms that are
incorporated into a written warranty.3
Consumer Product Warranty Rule
(‘‘Warranty Rule’’): The Warranty Rule,
16 CFR 701, specifies the information
that must appear in a written warranty
on a consumer product costing more
than $15. The Rule tracks Section 102(a)
of the Warranty Act,4 specifying
information that must appear in the
written warranty and, for certain
disclosures, mandates the exact
language that must be used.5 Neither the
Warranty Rule nor the Act requires that
a manufacturer or retailer warrant a
consumer product in writing, but if they
choose to do so, the warranty must
comply with the Rule.
The Rule Governing Pre-Sale
Availability of Written Warranty Terms
(‘‘Pre-Sale Availability Rule’’): The PreSale Availability Rule, 16 CFR 702,
requires sellers and warrantors to make
the text of any written warranty on a
consumer product costing more than
$15 available to the consumer before
sale. Among other things, the Rule
requires sellers to make the text of the
warranty readily available either by (1)
displaying it in close proximity to the
product or (2) furnishing it on request
and posting signs in prominent
locations advising consumers that the
warranty is available. The Rule requires
warrantors to provide materials to
enable sellers to comply with the Rule’s
requirements and also sets out the
methods by which warranty information
can be made available before the sale if
the product is sold through catalogs,
mail order, or door-to-door sales.
Informal Dispute Settlement Rule:
The Informal Dispute Settlement Rule,
16 CFR 703, specifies the minimum
standards which must be met by any
informal dispute settlement mechanism
that is incorporated into a written
consumer product warranty and which
the consumer must use before pursuing
legal remedies in court. In enacting the
Warranty Act, Congress recognized the
potential benefits of consumer dispute
mechanisms as an alternative to the
judicial process. Section 110(a) of the
Act sets out the Congressional policy to
‘‘encourage warrantors to establish
procedures whereby consumer disputes
are fairly and expeditiously settled
through informal dispute settlement
mechanisms’’ (‘‘IDSMs’’) and erected a
framework for their establishment.6 As
an incentive to warrantors to establish
IDSMs, Congress provided in Section
110(a)(3) that warrantors may
incorporate into their written consumer
product warranties a requirement that a
consumer must resort to an IDSM before
pursuing a legal remedy under the Act
for breach of warranty.7 To ensure
fairness to consumers, however,
Congress also directed that, if a
warrantor were to incorporate such a
‘‘prior resort requirement’’ into its
written warranty, the warrantor must
comply with the minimum standards set
by the Commission for such IDSMs.8
Section 110(a)(2) of the Act directed the
Commission to establish those
minimum standards.9
The Informal Dispute Settlement Rule
contains standards for IDSMs, including
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
warrantors establish written operating
procedures and provide copies of those
procedures upon request.
The Informal Dispute Settlement Rule
applies only to those firms that choose
to be bound by it by requiring
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 Informal Dispute Settlement Rule as
long as the warranty does not contain a
prior resort requirement.
Warranty Rule Burden Statement:
Total annual hours burden: 107,000
hours, rounded to the nearest thousand.
In its 2004 submission to OMB,10 the
FTC estimated that the information
collection burden of including the
disclosures required by the Warranty
Rule was approximately 34,000 hours
per year. Although the Rule’s
information collection requirements
have not changed, this estimate
increases the number of manufacturers
subject to the Rule based on recent
Census data. Nevertheless, because most
615
715
FR 60168 (Dec. 31, 1975).
U.S.C. 2302(a).
5 40 FR 60168, 60169-60170.
340
915
U.S.C. 2310(a).
U.S.C. 2310(a)(3).
8Id.
415
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U.S.C. 2310(a)(2).
FR 60877 (Oct. 13, 2004).
1069
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any capital goods, other than ordinary
office equipment, which providers
would already have available for general
business use.
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warrantors would now disclose this
information even if there were no
statute or rule requiring them to do so,
staff’s estimates likely overstate the
PRA-related burden attributable to the
Rule. Moreover, the Warranty Rule has
been in effect since 1976, and
warrantors have long since modified
their warranties to include the
information the Rule requires.
Based on conversations with various
warrantors’ representatives over the
years, staff has concluded that eight
hours per year is a reasonable estimate
of warrantors’ PRA-related burden
attributable to the Warranty Rule. This
estimate takes into account ensuring
that new warranties and changes to
existing warranties comply with the
Rule. Based on recent Census data, staff
now estimates that there are 134 large
manufacturers and 13,235 small
manufacturers covered by the Rule.11
This results in an annual burden
estimate of approximately 106,952
hours (13,369 total manufacturers x 8
hours of burden per year).
Total annual labor costs: $14,118,000,
rounded to the nearest thousand
Labor costs are derived by applying
appropriate hourly cost figures to the
burden hours described above. The
work required to comply with the
Warranty Rule—ensuring that new
warranties and changes to existing
warranties comply with the Rule—
requires a mix of legal analysis and
clerical support. Staff estimates that half
of the total burden hours (53,476 hours)
requires legal analysis at an average
hourly wage of $250 for legal
professionals,12 resulting in a labor cost
of $13,369,000. Assuming that the
remaining half of the total burden hours
requires clerical work at an average
hourly wage of $14, the resulting labor
cost is approximately $748,664. Thus,
the total annual labor cost is
approximately $14,117,664 ($13,369,000
for legal professionals + $748,664 for
clerical workers).
Total annual capital or other nonlabor costs: $0
The Rule imposes no appreciable
current capital or start-up costs. As
stated above, warrantors have already
modified their warranties to include the
information the Rule requires. Rule
compliance does not require the use of
Pre-Sale Availability Rule Burden
Statement:
Total annual hours burden: 2,328,000
hours, rounded to the nearest thousand.
In its 2004 submission to OMB, FTC
staff estimated that the information
collection burden of making the
disclosures required by the Pre-Sale
Availability Rule was approximately
2,760,000 hours per year. Although
there has been no change in the Rule’s
information collection requirements
since 2004, staff has adjusted its
previous estimate of the number of
manufacturers subject to the Rule based
on recent Census data. As discussed
above, staff now estimates that there are
approximately 134 large manufacturers
and 13,235 small manufacturers subject
to the Rule. Census data suggests that
the number of retailers subject to the
Rule has remained largely unchanged
since 2004. Therefore, staff continues to
estimate that there are 6,552 large
retailers and 422,100 small retailers
impacted by the Rule.
Since 2001, online retailers have been
posting warranty information on their
web sites, reducing their burden of
providing the required information.13
While some online retailers make
warranty information directly available
on their web sites, the majority of them
instead provide consumers with
instructions on how to obtain that
information. Moreover, some online
retailers provide warranty information
electronically in response to a
consumer’s request for such
information. A review of 20 top online
retailers’ websites for availability of
warranty information suggests that a
significant percentage of retailers (40%
of the 20 sampled) have begun to
incorporate online methods of
complying with the Rule—either by
posting warranty information online or
sending that information to consumers
electronically. Based on this
information, staff estimates that
retailers’ annual hourly burden has
decreased by twenty percent.14
In 2004, staff estimated that large
retailers spend an average of 26 hours
per year and small retailers spend an
11Because some manufacturer likely make
products that are not priced above $15 or not
intended for household use—and thus would not be
subject to the Rules—this figure is likely an
overstatement.
12 Staff has derived an hourly wage rate for legal
professionals based upon industry knowledge. The
remaining wage rates used throughout this Notice
reflect recent data from the Bureau of Labor
Statistics National Compensation Survey.
13 Staff took note of this change in 2004 but, due
to the small number of retailers engaging in the
practice at that time, declined to make an
adjustment to its burden estimate.
14 This conservative estimate takes into account
that staff reviewed a limited number of websites.
Moreover, some online retailers also operate ‘‘brickand-mortar’’ operations and still provide paper
copies of warranties for review by customers who
do not do business online.
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average of 6 hours per year to comply
with the Rule. Applying a 20%
reduction to the FTC’s previous
estimates, staff assumes that large
retailers spend an average of 20.8 hours
per year and small retailers spend an
average 4.8 hours per year to comply
with the Rule. Accordingly, the total
annual burden for retailers is
approximately 2,162,362 hours ((6,552
large retailers x 20.8 burden hours) +
(422,100 small retailers x 4.8 burden
hours)).
Staff retains its previous estimate that
large manufacturers spend an average of
52 hours per year and small
manufacturers spend an average of 12
hours per year to comply with the Rule.
Accordingly, the total annual burden
incurred by manufacturers is
approximately 165,788 hours ((134 large
manufacturers x 52 hours) + (13,235
small manufacturers x 12 hours)).
Thus, the total annual burden for all
covered entities is approximately
2,328,150 hours (2,162,362 hours for
retailers + 165,788 hours for
manufacturers).
Total annual labor cost: $32,594,000,
rounded to the nearest thousand.
The work required to comply with the
Pre-Sale Availability Rule is
predominantly clerical, e.g., providing
copies of manufacturer warranties to
retailers and retailer maintenance of
them. Applying a clerical wage rate of
$14/hour, the total annual labor cost
burden is approximately $32,594,100
(2,328,150 hours x $14 per hour).
Total annual capital or other nonlabor costs: De minimis.
The vast majority of retailers and
warrantors already have developed
systems to provide the information the
Rule requires. Compliance by retailers
typically entails keeping warranties on
file, in binders or otherwise, and posting
an inexpensive sign indicating warranty
availability.15 Manufacturer compliance
entails providing retailers with a copy of
the warranties included with their
products.
Informal Dispute Settlement Rule
Burden Statement:
Total annual hours burden: 17,000
hours, rounded to the nearest thousand.
The primary burden from the Informal
Dispute Settlement Rule comes from the
recordkeeping requirements that apply
to IDSMs, the use of which is
incorporated into a consumer product
warranty. In its 2004 submission to
OMB, staff estimated that the
recordkeeping and reporting burden was
15 Although some retailers may choose to display
a more elaborate or expensive sign, that is not
required by the Rule.
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21,754 hours per year and 8,157 hours
per year for disclosure requirements or,
cumulatively, approximately 30,000
hours. Although the Rule’s information
collection requirements have not
changed since 2004, the audits filed by
the IDSMs indicate that on average
fewer disputes were handled over the
previous three years. In addition,
representatives of the IDSMs indicate
that relatively few consumers request a
copy of their complete case file, and
even fewer request a copy of the annual
audit. These factors result in a
decreased annual hours burden estimate
for the IDSMs. The calculations
underlying staff’s new estimates follow.
Recordkeeping: The Rule requires
IDSMs to maintain individual case files.
Because maintaining individual case
records is a necessary function for any
IDSM, much of the burden would be
incurred in the ordinary course of the
IDSM’s business. Nonetheless, staff
retains its previous estimate that
maintaining individual case files
imposes an additional burden of 30
minutes per case.
The amount of work required will
depend on the number of dispute
resolution proceedings undertaken in
each IDSM. The 2005 audit report for
the BBB AUTO LINE states that, during
calendar year 2005, it handled 23,672
warranty disputes on behalf of 12
manufacturers (including General
Motors, Honda, Ford, Saturn,
Volkswagen, Isuzu, and Nissan).16 The
BBB AUTO LINE audits from calendar
years 2004 and 2003 indicate warranty
disputes totaling 19,793 and 21,859,
respectively. Thus, the average number
of disputes filed annually through BBB
AUTO LINE over this three-year period
is 21,775 disputes.17 According to the
2005 audit report for the BBB AUTO
LINE, ten out of the twelve
manufacturers reviewed include a
‘‘prior resort’’ requirement in their
warranties, and thus are covered by the
Informal Dispute Settlement Rule.
Therefore, staff assumes that virtually
all of the average 21,775 disputes
handled by the BBB fall within the Rule.
Apart from the BBB audit report,
audit reports were submitted on behalf
of the National Center for Dispute
Settlement (NCDS), the mechanism that
handles dispute resolutions for Toyota,
Lexus, DaimlerChrysler, Mitsubishi, and
16 So far as staff is aware, all or virtually all of
the IDSMs subject to the Rule are within the auto
industry.
17 Because the number of annual disputes filed
has fluctuated, staff believes that taking the average
number of disputes filed between 2003 and 2005
(the most recent available data) is the best way to
project what will happen over the next three years
of the OMB clearance for the Rule.
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Porsche, all of which are covered by the
Rule. The 2005 audit of the NCDS
operations show that 2,154 disputes
were filed in 2005. In addition, the
NCDS audit shows that in 2004 and
2003, it handled 2,246 and 3,722
disputes, respectively. Thus, the NCDS
handled an average of 2,707 disputes
each year from 2003 through 2005.
Based on the above figures, staff
estimates that the average number of
disputes handled annually by IDSMs
covered by the Rule is approximately
24,482 (21,775 disputes handled by BBB
AUTO LINE + 2,707 disputes handled
by NCDS). Accordingly, staff estimates
the total annual recordkeeping burden
attributable to the Rule to be
approximately 12,241 hours (24,482
disputes x 30 minutes of burden ÷ 60
minutes).
Reporting: The Rule requires IDSMs
to update indexes, complete semiannual statistical summaries, and
submit an annual audit report to the
FTC. Staff retains its previous estimate
that covered entities spend
approximately 10 minutes per case for
these activities, resulting in a total
annual burden of approximately 4,080
hours (24,482 disputes x 10 minutes of
burden ÷ 60 minutes).
Disclosure: The Rule requires that
information about the IDSM be
disclosed in the written warranty. Any
incremental costs to the warrantor of
including this additional information in
the warranty are negligible. The
majority of the disclosure burden would
be borne by the IDSM, which is required
to provide to interested consumers upon
request copies of the various types of
information the IDSM possesses,
including annual audits. Consumers
who have dealt 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 IDSMs, staff
estimates that the burden imposed by
the disclosure requirements is
approximately 408 hours per year for
the existing IDSMs to provide copies of
this information. This estimate draws
from the average number of consumers
who file claims each year with the
IDSMs (24,482) and the assumption that
twenty percent of consumers
individually request copies of the
records pertaining to their disputes, or
approximately 4,896 consumers. Staff
estimates that copying such records
would require approximately 5 minutes
per consumer, including a negligible
number of requests for copies of the
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61651
annual audit.18 Thus, the IDSMs
currently operating under the Rule have
an estimated total disclosure burden of
408 hours (4,896 consumers x 5 minutes
of burden ÷ 60 minutes).
Accordingly, the total PRA-related
annual hours burden attributed to the
Rule is approximately 16,729 hours
(12,241 hours for recordkeeping + 4,080
hours for reporting + 408 hours for
disclosures).
Total annual labor cost: $266,000,
rounded to the nearest thousand.
Recordkeeping: Staff assumes that
IDSMs use skilled clerical or technical
support staff to comply with the
recordkeeping requirements contained
in the Rule at an hourly rate of $16.
Thus, the labor cost associated with the
12,241 annual burden hours for
recordkeeping is approximately
$195,856 (12,241 burden hours x $16
per hour).
Reporting: Staff assumes that IDSMs
also use skilled clerical support staff at
an hourly rate of $16 to comply with the
reporting requirements. Thus, the labor
cost associated with the 4,080 annual
burden hours for reporting is
approximately $65,280 (4,080 burden
hours x $16 per hour).
Disclosure: Staff assumes that IDSMs
use clerical support at an hourly rate of
$12 to reproduce records and, therefore,
the labor cost associated with the 408
annual burden hours for disclosures is
approximately $4,896 (408 burden
hours x $12 per hour).
Accordingly, the combined total
annual labor cost for PRA-related
burden under the Rule is approximately
$266,032 ($195,856 for recordkeeping +
$65,280 for reporting + $4,896 for
disclosures).
Total annual capital or other nonlabor costs: $329,000
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 would already have
access. In addition, according to a
representative of one IDSM, it has
already developed systems to collect
and retain information needed to
18 This estimate includes the additional amount
of time required to copy the annual audit upon a
consumer’s request. However, because staff has
determined that a very small minority of consumers
request a copy of the annual audit, this estimate is
likely an overstatement. In addition, at least a
portion of case files are provided to consumers
electronically, which further would reduce the
paperwork burden borne by the IDSMs.
E:\FR\FM\31OCN1.SGM
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rwilkins on PROD1PC63 with NOTICES
61652
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Notices
produce the indexes and statistical
summaries required by the Rule, and
thus, estimated very low capital or startup costs.
The only additional cost imposed on
IDSMs operating under the Rule that
would not be incurred for other IDSMs
is the annual audit requirement.
According to representatives of each of
the IDSMs currently operating under the
Rule, the vast majority of costs
associated with this requirement are the
fees paid to the auditors and their staffs
to perform the annual audit.
Representatives of the IDSMs estimated
a combined cost of $300,000 for both
IDSMs currently operating under the
Rule
Other non-labor costs: $29,000 in
copying costs. This total is based on
estimated copying costs of 7 cents per
page and several conservative
assumptions. Staff estimates that the
average dispute-related file is 35 pages
long and that a typical annual audit file
is approximately 200 pages in length. As
discussed above, staff assumes that
twenty percent of consumers using an
IDSM currently operating under the
Rule (approximately 4,896 consumers)
request copies of the records relating to
their disputes.
Staff also estimates that a very small
minority of consumers request a copy of
the annual audit. This assumption is
based on (1) the number of consumer
requests actually received by the IDSMs
in the past; and (2) the fact that the
IDSMs’ annual audits are available
online. For example, annual audits are
available on the FTC’s web site, where
consumers may view and or print pages
as needed, at no cost to the IDSM. In
addition, the Better Business Bureau
makes available on its web site the
annual audit of the BBB AUTO LINE.
Therefore, staff conservatively estimates
that only five percent of consumers
using an IDSM covered by the Rule
(approximately 1,224 consumers) will
request a copy of the IDSM’s audit
report.
Thus, the total annual copying cost
for dispute-related files is
approximately $11,995 (35 pages per file
x $.07 per page x 4,896 consumer
requests) and the total annual copying
cost for annual audit reports is
approximately $17,136 (200 pages per
audit report x $.07 per page x 1,224
consumer requests). Accordingly, the
total cost attributed to copying under
the Rule is approximately $29,131 and
the total non-labor cost under the Rule
is approximately $329,131 ($300,000 for
VerDate Aug<31>2005
17:45 Oct 30, 2007
Jkt 214001
auditor fees + $29,131 for copying
costs).
GENERAL SERVICES
ADMINISTRATION
William Blumenthal
General Counsel
[FR Doc. E7–21399 Filed 10–30–07: 8:45 am]
Premium Fuel Purchases for
Government Owned and Leased
Vehicles Due to Market Shortages in
Parts of California Affected by
Wildfires
[Billing Code: 6750 – 01–S]
Office of Governmentwide
Policy, General Services Administration
(GSA).
ACTION: Notice of Federal Management
Regulation (FMR) Bulletin B–16.
AGENCY:
GENERAL SERVICES
ADMINISTRATION
Temporary Duty and Relocation Travel
of Employees to Areas Impacted by the
Wildfires in California
Office of Governmentwide
Policy, General Services Administration
(GSA).
AGENCY:
Notice of Federal Travel
Regulation (FTR) Bulletin 08–02.
ACTION:
SUMMARY: The General Services
Administration (GSA) has issued FTR
Bulletin 08–02. FTR Bulletin 08–02
informs agencies that certain provisions
of the FTR governing the authorization
of actual subsistence expenses for
official travel (both TDY and relocation)
are temporarily waived as a result of the
Emergency Declaration signed by the
President on October 23, 2007, in
response to wildfires in parts of
California. It is expected that finding
lodging facilities and/or adequate meals
in the affected areas may be difficult,
and distances involved may be great
resulting in increased costs for per diem
expenses. FTR Bulletin 08–02 became
effective on October 24, 2007 and will
remain effective until January 24, 2008,
unless extended or rescinded by GSA.
This bulletin and all FTR bulletins are
located at gsa.gov/bulletin.
For
clarification of content, contact Patrick
McConnell, Office of Governmentwide
Policy, General Services
Administration, Washington, DC 20405,
telephone (202) 501–2362, or by email
at patrick.mcconnell@gsa.gov.
FOR FURTHER INFORMATION CONTACT:
Dated: October 25, 2007.
Russ Pentz,
Assistant Deputy Associate Administrator.
[FR Doc. E7–21393 Filed 10–30–07; 8:45 am]
BILLING CODE 6820–14–S
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
SUMMARY: The General Services
Administration (GSA) has issued
Bulletin B–16 which provides a
deviation for executive agencies to
purchase premium fuel for Government
owned and leased vehicles when lower
grade fuels are not available due to
market shortages in parts of California
affected by wildfires. FMR Bulletin B–
16 became effective on October 24, 2007
and will remain effective until January
24, 2008, unless extended or rescinded
by GSA. This bulletin and all FMR
bulletins are located at gsa.gov/bulletin.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Janet
Dobbs, Office of Governmentwide
Policy, General Services
Administration, Washington, DC 20405,
telephone (202) 208–6601, or by email
at janet.dobbs@gsa.gov.
Dated: October 25, 2007.
Russ Pentz,
Assistant Deputy Associate Administrator.
[FR Doc. E7–21418 Filed 10–30–07; 8:45 am]
BILLING CODE 6820–14–S
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Disease Control and
Prevention
[30Day–08–07AV]
Agency Forms Undergoing Paperwork
Reduction Act Review
The Centers for Disease Control and
Prevention (CDC) publishes a list of
information collection requests under
review by the Office of Management and
Budget (OMB) in compliance with the
Paperwork Reduction Act (44 U.S.C.
Chapter 35). To request a copy of these
requests, call the CDC Reports Clearance
Officer at (404) 639–5960 or send an email to omb@cdc.gov. Send written
comments to CDC Desk Officer, Office of
Management and Budget, Washington,
DC or by fax to (202) 395–6974. Written
comments should be received within 30
days of this notice.
E:\FR\FM\31OCN1.SGM
31OCN1
Agencies
[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Notices]
[Pages 61648-61652]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21399]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
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. The FTC is seeking
public comments on its proposal to extend through November 30, 2010 the
current OMB clearance for the information collection requirements
contained in the Commission's Rule Concerning Disclosure of Written
Consumer Product Warranty Terms and Conditions. The clearance is
scheduled to expire on November 30, 2007. The FTC is also seeking
public comments on its proposal to extend through December 31, 2010 the
current OMB clearances for the information collection requirements
contained in the Commission's Rule Governing Pre-Sale Availability of
Written Warranty Terms and the Informal Dispute Settlement Procedures
Rule. Those clearances are scheduled to expire on December 31, 2007.
DATES: Comments must be filed by November 30, 2007.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Warranty Rules: Paperwork Comment, FTC File
No. P044403'' 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, Room H-135,
600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 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. However, if the comment contains any material for
which confidential treatment is requested, it must be filed in paper
form, and the first page of the document must be clearly labeled
``Confidential.''\1\ The FTC is requesting that any comment filed in
paper form be sent by courier or overnight service, if possible.
---------------------------------------------------------------------------
\1\Commission Rule 4.2(d), 16 CFR 4.2(d). 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).
---------------------------------------------------------------------------
Comments filed in electronic form should be submitted by using the
following weblink: https://secure.commentworks.com/ftc-warrantypra (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 weblink: https://secure.commentworks.com/ftc-
warrantypra. If this notice appears at 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.
Comments should also be submitted to: Office of Management and
Budget, Attention: Desk Officer for the Federal
[[Page 61649]]
Trade Commission. Comments should be submitted via facsimile to (202)
395-6974 because U.S. Postal Mail is subject to lengthy delays due to
heightened security precautions.
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 will be
considered by the Commission, and will be available to the public on
the FTC Web site, to the extent practicable, at www.ftc.gov. 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: Requests for additional information or
copies of the proposed information requirements should be addressed to
Allyson Himelfarb, Investigator, Division of Marketing Practices,
Bureau of Consumer Protection, Federal Trade Commission, Room H-292,
600 Pennsylvania Ave., N.W., Washington, D.C. 20580, (202) 326-2505.
SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act (``PRA''),
44 U.S.C. 3501-3521, federal agencies must obtain approval from OMB for
each collection of information they conduct or sponsor. On August 7,
2007, the FTC sought comment on the information collection requirements
associated with the FTC's (1) Rule Concerning Disclosure of Written
Consumer Product Warranty Terms and Conditions (OMB Control Number
3084-0111); (2) Rule Governing Pre-Sale Availability of Written
Warranty Terms (OMB Control Number 3084-0112); and (3) Informal Dispute
Settlement Procedures Rule (OMB Control Number 3084-0113)
(collectively, ``Warranty Rules'').\2\ No comments were received.
Pursuant to the OMB regulations that implement the PRA (5 CFR Part
1320), the FTC is providing this second opportunity for public comment
while seeking OMB approval to extend the existing paperwork clearance
for the Warranty Rules. All comments should be filed as prescribed in
the ADDRESSES section above, and must be received on or before November
30, 2007.
---------------------------------------------------------------------------
\2\72 FR 44140 (Aug. 7, 2007). The FTC issued a correction
Notice on August 10, 2007 (72 FR 45050) in order to provide the
appropriate weblink for submitting electronic comments.
---------------------------------------------------------------------------
The Warranty Rules implement the Magnuson-Moss Warranty Act, 15
U.S.C. 2301 et seq. (``Warranty Act'' or ``Act''), which required the
FTC to issue three rules relating to warranties on consumer products:
the disclosure of written warranty terms and conditions; pre-sale
availability of warranty terms; and rules establishing minimum
standards for informal dispute settlement mechanisms that are
incorporated into a written warranty.\3\
---------------------------------------------------------------------------
\3\40 FR 60168 (Dec. 31, 1975).
---------------------------------------------------------------------------
Consumer Product Warranty Rule (``Warranty Rule''): The Warranty
Rule, 16 CFR 701, specifies the information that must appear in a
written warranty on a consumer product costing more than $15. The Rule
tracks Section 102(a) of the Warranty Act,\4\ specifying information
that must appear in the written warranty and, for certain disclosures,
mandates the exact language that must be used.\5\ Neither the Warranty
Rule nor the Act requires that a manufacturer or retailer warrant a
consumer product in writing, but if they choose to do so, the warranty
must comply with the Rule.
---------------------------------------------------------------------------
\4\15 U.S.C. 2302(a).
\5\ 40 FR 60168, 60169-60170.
---------------------------------------------------------------------------
The Rule Governing Pre-Sale Availability of Written Warranty Terms
(``Pre-Sale Availability Rule''): The Pre-Sale Availability Rule, 16
CFR 702, requires sellers and warrantors to make the text of any
written warranty on a consumer product costing more than $15 available
to the consumer before sale. Among other things, the Rule requires
sellers to make the text of the warranty readily available either by
(1) displaying it in close proximity to the product or (2) furnishing
it on request and posting signs in prominent locations advising
consumers that the warranty is available. The Rule requires warrantors
to provide materials to enable sellers to comply with the Rule's
requirements and also sets out the methods by which warranty
information can be made available before the sale if the product is
sold through catalogs, mail order, or door-to-door sales.
Informal Dispute Settlement Rule: The Informal Dispute Settlement
Rule, 16 CFR 703, specifies the minimum standards which must be met by
any informal dispute settlement mechanism that is incorporated into a
written consumer product warranty and which the consumer must use
before pursuing legal remedies in court. In enacting the Warranty Act,
Congress recognized the potential benefits of consumer dispute
mechanisms as an alternative to the judicial process. Section 110(a) of
the Act sets out the Congressional policy to ``encourage warrantors to
establish procedures whereby consumer disputes are fairly and
expeditiously settled through informal dispute settlement mechanisms''
(``IDSMs'') and erected a framework for their establishment.\6\ As an
incentive to warrantors to establish IDSMs, Congress provided in
Section 110(a)(3) that warrantors may incorporate into their written
consumer product warranties a requirement that a consumer must resort
to an IDSM before pursuing a legal remedy under the Act for breach of
warranty.\7\ To ensure fairness to consumers, however, Congress also
directed that, if a warrantor were to incorporate such a ``prior resort
requirement'' into its written warranty, the warrantor must comply with
the minimum standards set by the Commission for such IDSMs.\8\ Section
110(a)(2) of the Act directed the Commission to establish those minimum
standards.\9\
---------------------------------------------------------------------------
\6\15 U.S.C. 2310(a).
\7\15 U.S.C. 2310(a)(3).
\8\Id.
\9\15 U.S.C. 2310(a)(2).
---------------------------------------------------------------------------
The Informal Dispute Settlement Rule contains standards for IDSMs,
including 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
warrantors establish written operating procedures and provide copies of
those procedures upon request.
The Informal Dispute Settlement Rule applies only to those firms
that choose to be bound by it by requiring 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
Informal Dispute Settlement Rule as long as the warranty does not
contain a prior resort requirement.
Warranty Rule Burden Statement:
Total annual hours burden: 107,000 hours, rounded to the nearest
thousand.
In its 2004 submission to OMB,\10\ the FTC estimated that the
information collection burden of including the disclosures required by
the Warranty Rule was approximately 34,000 hours per year. Although the
Rule's information collection requirements have not changed, this
estimate increases the number of manufacturers subject to the Rule
based on recent Census data. Nevertheless, because most
[[Page 61650]]
warrantors would now disclose this information even if there were no
statute or rule requiring them to do so, staff's estimates likely
overstate the PRA-related burden attributable to the Rule. Moreover,
the Warranty Rule has been in effect since 1976, and warrantors have
long since modified their warranties to include the information the
Rule requires.
---------------------------------------------------------------------------
\10\69 FR 60877 (Oct. 13, 2004).
---------------------------------------------------------------------------
Based on conversations with various warrantors' representatives
over the years, staff has concluded that eight hours per year is a
reasonable estimate of warrantors' PRA-related burden attributable to
the Warranty Rule. This estimate takes into account ensuring that new
warranties and changes to existing warranties comply with the Rule.
Based on recent Census data, staff now estimates that there are 134
large manufacturers and 13,235 small manufacturers covered by the
Rule.\11\ This results in an annual burden estimate of approximately
106,952 hours (13,369 total manufacturers x 8 hours of burden per
year).
---------------------------------------------------------------------------
\11\Because some manufacturer likely make products that are not
priced above $15 or not intended for household use--and thus would
not be subject to the Rules--this figure is likely an overstatement.
---------------------------------------------------------------------------
Total annual labor costs: $14,118,000, rounded to the nearest
thousand
Labor costs are derived by applying appropriate hourly cost figures
to the burden hours described above. The work required to comply with
the Warranty Rule--ensuring that new warranties and changes to existing
warranties comply with the Rule--requires a mix of legal analysis and
clerical support. Staff estimates that half of the total burden hours
(53,476 hours) requires legal analysis at an average hourly wage of
$250 for legal professionals,\12\ resulting in a labor cost of
$13,369,000. Assuming that the remaining half of the total burden hours
requires clerical work at an average hourly wage of $14, the resulting
labor cost is approximately $748,664. Thus, the total annual labor cost
is approximately $14,117,664 ($13,369,000 for legal professionals +
$748,664 for clerical workers).
---------------------------------------------------------------------------
\12\ Staff has derived an hourly wage rate for legal
professionals based upon industry knowledge. The remaining wage
rates used throughout this Notice reflect recent data from the
Bureau of Labor Statistics National Compensation Survey.
---------------------------------------------------------------------------
Total annual capital or other non-labor costs: $0
The Rule imposes no appreciable current capital or start-up costs.
As stated above, warrantors have already modified their warranties to
include the information the Rule requires. Rule compliance does not
require the use of any capital goods, other than ordinary office
equipment, which providers would already have available for general
business use.
Pre-Sale Availability Rule Burden Statement:
Total annual hours burden: 2,328,000 hours, rounded to the nearest
thousand.
In its 2004 submission to OMB, FTC staff estimated that the
information collection burden of making the disclosures required by the
Pre-Sale Availability Rule was approximately 2,760,000 hours per year.
Although there has been no change in the Rule's information collection
requirements since 2004, staff has adjusted its previous estimate of
the number of manufacturers subject to the Rule based on recent Census
data. As discussed above, staff now estimates that there are
approximately 134 large manufacturers and 13,235 small manufacturers
subject to the Rule. Census data suggests that the number of retailers
subject to the Rule has remained largely unchanged since 2004.
Therefore, staff continues to estimate that there are 6,552 large
retailers and 422,100 small retailers impacted by the Rule.
Since 2001, online retailers have been posting warranty information
on their web sites, reducing their burden of providing the required
information.\13\ While some online retailers make warranty information
directly available on their web sites, the majority of them instead
provide consumers with instructions on how to obtain that information.
Moreover, some online retailers provide warranty information
electronically in response to a consumer's request for such
information. A review of 20 top online retailers' websites for
availability of warranty information suggests that a significant
percentage of retailers (40% of the 20 sampled) have begun to
incorporate online methods of complying with the Rule--either by
posting warranty information online or sending that information to
consumers electronically. Based on this information, staff estimates
that retailers' annual hourly burden has decreased by twenty
percent.\14\
---------------------------------------------------------------------------
\13\ Staff took note of this change in 2004 but, due to the
small number of retailers engaging in the practice at that time,
declined to make an adjustment to its burden estimate.
\14\ This conservative estimate takes into account that staff
reviewed a limited number of websites. Moreover, some online
retailers also operate ``brick-and-mortar'' operations and still
provide paper copies of warranties for review by customers who do
not do business online.
---------------------------------------------------------------------------
In 2004, staff estimated that large retailers spend an average of
26 hours per year and small retailers spend an average of 6 hours per
year to comply with the Rule. Applying a 20% reduction to the FTC's
previous estimates, staff assumes that large retailers spend an average
of 20.8 hours per year and small retailers spend an average 4.8 hours
per year to comply with the Rule. Accordingly, the total annual burden
for retailers is approximately 2,162,362 hours ((6,552 large retailers
x 20.8 burden hours) + (422,100 small retailers x 4.8 burden hours)).
Staff retains its previous estimate that large manufacturers spend
an average of 52 hours per year and small manufacturers spend an
average of 12 hours per year to comply with the Rule. Accordingly, the
total annual burden incurred by manufacturers is approximately 165,788
hours ((134 large manufacturers x 52 hours) + (13,235 small
manufacturers x 12 hours)).
Thus, the total annual burden for all covered entities is
approximately 2,328,150 hours (2,162,362 hours for retailers + 165,788
hours for manufacturers).
Total annual labor cost: $32,594,000, rounded to the nearest
thousand.
The work required to comply with the Pre-Sale Availability Rule is
predominantly clerical, e.g., providing copies of manufacturer
warranties to retailers and retailer maintenance of them. Applying a
clerical wage rate of $14/hour, the total annual labor cost burden is
approximately $32,594,100 (2,328,150 hours x $14 per hour).
Total annual capital or other non-labor costs: De minimis.
The vast majority of retailers and warrantors already have
developed systems to provide the information the Rule requires.
Compliance by retailers typically entails keeping warranties on file,
in binders or otherwise, and posting an inexpensive sign indicating
warranty availability.\15\ Manufacturer compliance entails providing
retailers with a copy of the warranties included with their products.
---------------------------------------------------------------------------
\15\ Although some retailers may choose to display a more
elaborate or expensive sign, that is not required by the Rule.
---------------------------------------------------------------------------
Informal Dispute Settlement Rule Burden Statement:
Total annual hours burden: 17,000 hours, rounded to the nearest
thousand.
The primary burden from the Informal Dispute Settlement Rule comes
from the recordkeeping requirements that apply to IDSMs, the use of
which is incorporated into a consumer product warranty. In its 2004
submission to OMB, staff estimated that the recordkeeping and reporting
burden was
[[Page 61651]]
21,754 hours per year and 8,157 hours per year for disclosure
requirements or, cumulatively, approximately 30,000 hours. Although the
Rule's information collection requirements have not changed since 2004,
the audits filed by the IDSMs indicate that on average fewer disputes
were handled over the previous three years. In addition,
representatives of the IDSMs indicate that relatively few consumers
request a copy of their complete case file, and even fewer request a
copy of the annual audit. These factors result in a decreased annual
hours burden estimate for the IDSMs. The calculations underlying
staff's new estimates follow.
Recordkeeping: The Rule requires IDSMs to maintain individual case
files. Because maintaining individual case records is a necessary
function for any IDSM, much of the burden would be incurred in the
ordinary course of the IDSM's business. Nonetheless, staff retains its
previous estimate that maintaining individual case files imposes an
additional burden of 30 minutes per case.
The amount of work required will depend on the number of dispute
resolution proceedings undertaken in each IDSM. The 2005 audit report
for the BBB AUTO LINE states that, during calendar year 2005, it
handled 23,672 warranty disputes on behalf of 12 manufacturers
(including General Motors, Honda, Ford, Saturn, Volkswagen, Isuzu, and
Nissan).\16\ The BBB AUTO LINE audits from calendar years 2004 and 2003
indicate warranty disputes totaling 19,793 and 21,859, respectively.
Thus, the average number of disputes filed annually through BBB AUTO
LINE over this three-year period is 21,775 disputes.\17\ According to
the 2005 audit report for the BBB AUTO LINE, ten out of the twelve
manufacturers reviewed include a ``prior resort'' requirement in their
warranties, and thus are covered by the Informal Dispute Settlement
Rule. Therefore, staff assumes that virtually all of the average 21,775
disputes handled by the BBB fall within the Rule.
---------------------------------------------------------------------------
\16\ So far as staff is aware, all or virtually all of the IDSMs
subject to the Rule are within the auto industry.
\17\ Because the number of annual disputes filed has fluctuated,
staff believes that taking the average number of disputes filed
between 2003 and 2005 (the most recent available data) is the best
way to project what will happen over the next three years of the OMB
clearance for the Rule.
---------------------------------------------------------------------------
Apart from the BBB audit report, audit reports were submitted on
behalf of the National Center for Dispute Settlement (NCDS), the
mechanism that handles dispute resolutions for Toyota, Lexus,
DaimlerChrysler, Mitsubishi, and Porsche, all of which are covered by
the Rule. The 2005 audit of the NCDS operations show that 2,154
disputes were filed in 2005. In addition, the NCDS audit shows that in
2004 and 2003, it handled 2,246 and 3,722 disputes, respectively. Thus,
the NCDS handled an average of 2,707 disputes each year from 2003
through 2005.
Based on the above figures, staff estimates that the average number
of disputes handled annually by IDSMs covered by the Rule is
approximately 24,482 (21,775 disputes handled by BBB AUTO LINE + 2,707
disputes handled by NCDS). Accordingly, staff estimates the total
annual recordkeeping burden attributable to the Rule to be
approximately 12,241 hours (24,482 disputes x 30 minutes of burden / 60
minutes).
Reporting: The Rule requires IDSMs to update indexes, complete
semi-annual statistical summaries, and submit an annual audit report to
the FTC. Staff retains its previous estimate that covered entities
spend approximately 10 minutes per case for these activities, resulting
in a total annual burden of approximately 4,080 hours (24,482 disputes
x 10 minutes of burden / 60 minutes).
Disclosure: The Rule requires that information about the IDSM be
disclosed in the written warranty. Any incremental costs to the
warrantor of including this additional information in the warranty are
negligible. The majority of the disclosure burden would be borne by the
IDSM, which is required to provide to interested consumers upon request
copies of the various types of information the IDSM possesses,
including annual audits. Consumers who have dealt 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 IDSMs, staff
estimates that the burden imposed by the disclosure requirements is
approximately 408 hours per year for the existing IDSMs to provide
copies of this information. This estimate draws from the average number
of consumers who file claims each year with the IDSMs (24,482) and the
assumption that twenty percent of consumers individually request copies
of the records pertaining to their disputes, or approximately 4,896
consumers. Staff estimates that copying such records would require
approximately 5 minutes per consumer, including a negligible number of
requests for copies of the annual audit.\18\ Thus, the IDSMs currently
operating under the Rule have an estimated total disclosure burden of
408 hours (4,896 consumers x 5 minutes of burden / 60 minutes).
---------------------------------------------------------------------------
\18\ This estimate includes the additional amount of time
required to copy the annual audit upon a consumer's request.
However, because staff has determined that a very small minority of
consumers request a copy of the annual audit, this estimate is
likely an overstatement. In addition, at least a portion of case
files are provided to consumers electronically, which further would
reduce the paperwork burden borne by the IDSMs.
---------------------------------------------------------------------------
Accordingly, the total PRA-related annual hours burden attributed
to the Rule is approximately 16,729 hours (12,241 hours for
recordkeeping + 4,080 hours for reporting + 408 hours for disclosures).
Total annual labor cost: $266,000, rounded to the nearest thousand.
Recordkeeping: Staff assumes that IDSMs use skilled clerical or
technical support staff to comply with the recordkeeping requirements
contained in the Rule at an hourly rate of $16. Thus, the labor cost
associated with the 12,241 annual burden hours for recordkeeping is
approximately $195,856 (12,241 burden hours x $16 per hour).
Reporting: Staff assumes that IDSMs also use skilled clerical
support staff at an hourly rate of $16 to comply with the reporting
requirements. Thus, the labor cost associated with the 4,080 annual
burden hours for reporting is approximately $65,280 (4,080 burden hours
x $16 per hour).
Disclosure: Staff assumes that IDSMs use clerical support at an
hourly rate of $12 to reproduce records and, therefore, the labor cost
associated with the 408 annual burden hours for disclosures is
approximately $4,896 (408 burden hours x $12 per hour).
Accordingly, the combined total annual labor cost for PRA-related
burden under the Rule is approximately $266,032 ($195,856 for
recordkeeping + $65,280 for reporting + $4,896 for disclosures).
Total annual capital or other non-labor costs: $329,000
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 would already have access. In addition, according to a
representative of one IDSM, it has already developed systems to collect
and retain information needed to
[[Page 61652]]
produce the indexes and statistical summaries required by the Rule, and
thus, estimated very low capital or start-up costs.
The only additional cost imposed on IDSMs operating under the Rule
that would not be incurred for other IDSMs is the annual audit
requirement. According to representatives of each of the IDSMs
currently operating under the Rule, the vast majority of costs
associated with this requirement are the fees paid to the auditors and
their staffs to perform the annual audit. Representatives of the IDSMs
estimated a combined cost of $300,000 for both IDSMs currently
operating under the Rule
Other non-labor costs: $29,000 in copying costs. This total is
based on estimated copying costs of 7 cents per page and several
conservative assumptions. Staff estimates that the average dispute-
related file is 35 pages long and that a typical annual audit file is
approximately 200 pages in length. As discussed above, staff assumes
that twenty percent of consumers using an IDSM currently operating
under the Rule (approximately 4,896 consumers) request copies of the
records relating to their disputes.
Staff also estimates that a very small minority of consumers
request a copy of the annual audit. This assumption is based on (1) the
number of consumer requests actually received by the IDSMs in the past;
and (2) the fact that the IDSMs' annual audits are available online.
For example, annual audits are available on the FTC's web site, where
consumers may view and or print pages as needed, at no cost to the
IDSM. In addition, the Better Business Bureau makes available on its
web site the annual audit of the BBB AUTO LINE. Therefore, staff
conservatively estimates that only five percent of consumers using an
IDSM covered by the Rule (approximately 1,224 consumers) will request a
copy of the IDSM's audit report.
Thus, the total annual copying cost for dispute-related files is
approximately $11,995 (35 pages per file x $.07 per page x 4,896
consumer requests) and the total annual copying cost for annual audit
reports is approximately $17,136 (200 pages per audit report x $.07 per
page x 1,224 consumer requests). Accordingly, the total cost attributed
to copying under the Rule is approximately $29,131 and the total non-
labor cost under the Rule is approximately $329,131 ($300,000 for
auditor fees + $29,131 for copying costs).
William Blumenthal
General Counsel
[FR Doc. E7-21399 Filed 10-30-07: 8:45 am]
[Billing Code: 6750 - 01-S]