Disclosure Requirements and Prohibitions Concerning Franchising, 38790-38791 [2020-12617]

Download as PDF 38790 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Rules and Regulations AIRAC date State City Airport FDC No. FDC date 16-Jul-20 ...... CA Sacramento ............. Sacramento Intl ........................ 0/2704 5/20/20 16-Jul-20 ...... MN Park Rapids ............. 0/1758 6/1/20 16-Jul-20 ...... 16-Jul-20 ...... GA NM Monroe .................... Roswell .................... Park Rapids Muni-Konshok Field. Monroe-Walton County ............. Roswell Air Center .................... 0/2642 0/2895 5/29/20 5/29/20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 16-Jul-20 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... NM NM NM NM NM NM NM GA PA PA PA CA Roswell .................... Roswell .................... Roswell .................... Roswell .................... Roswell .................... Roswell .................... Roswell .................... 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Chicago Midway Intl ................. 0/5727 0/6470 6/3/20 6/4/20 FOR FURTHER INFORMATION CONTACT: [FR Doc. 2020–13891 Filed 6–26–20; 8:45 am] BILLING CODE 4910–13–P FEDERAL TRADE COMMISSION 16 CFR Part 436 Disclosure Requirements and Prohibitions Concerning Franchising Federal Trade Commission. Final rule. AGENCY: ACTION: The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) announces revised monetary thresholds for three exemptions from the Franchise Rule. The FTC is required to adjust the size of the monetary thresholds every fourth year based upon changes in the Consumer Price Index for All Urban Consumers (‘‘CPI–U’’) published by the Department of Labor. DATES: This final rule is effective on July 1, 2020. SUMMARY: Christine M. Todaro, Attorney, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580; phone number: (202–326–3711), email address: ctodaro@ftc.gov. SUPPLEMENTARY INFORMATION: The FTC’s Trade Regulation Rule entitled ‘‘Disclosure Requirements and Prohibitions Concerning Franchising’’ (Franchise Rule or Rule) 1 provides three exemptions based on a monetary threshold: The ‘‘minimum payment exemption,’’ 2 the ‘‘large franchise investment exemption’’ 3 and the ‘‘large franchisee exemption.’’ 4 The Rule requires the Commission to ‘‘adjust the size of the monetary thresholds every fourth year based upon the . . . Consumer Price Index for all urban consumers [CPI–U] published by the Department of Labor.’’ 5 This requirement, added by the 2007 Subject This NOTAM, published in Docket No. 31315, Amdt No. 3908, TL 20–15, (85 FR 35800; June 12, 2020) is hereby rescinded in its entirety. RNAV (GPS) RWY 13, Amdt 1. RNAV (GPS) RWY 3, Amdt 2B. ILS OR LOC RWY 21, Amdt 18A. LOC BC RWY 3, Amdt 9C. RADAR 1, Orig–B. RNAV (GPS) RWY 3, Orig. RNAV (GPS) RWY 17, Orig. RNAV (GPS) RWY 21, Orig. RNAV (GPS) RWY 35, Orig. VOR–B, Amdt 1. ILS OR LOC RWY 31, Amdt 2B. VOR–A, Orig. RNAV (GPS) RWY 27, Orig–B. RNAV (GPS) RWY 9, Orig–B. ILS OR LOC RWY 17R, ILS RWY 17R (SA CAT I), ILS RWY 17R (CAT II–III), Amdt 16C. RNAV (GPS) RWY 10, Amdt 1A. RNAV (RNP) X RWY 22L, Orig. amendments to the Rule, took effect on July 1, 2007, so that franchisors would have a one-year phase-in period within which to comply with the amended Rule’s revised disclosure requirements before the July 1, 2008, final compliance deadline.6 As required by the Rule, the Commission previously revised the three monetary thresholds to reflect inflation in the CPI–U in 2012 and 2016.7 The Commission bases the exemption monetary thresholds that will take effect on July 1, 2020, on the increase in the CPI–U between 2007 and 2019. During this period, the annual average value of the Consumer Price Index for all urban consumers and all items increased by 23.3%—from an index value of 207.342 to a value of 255.657.8 Applying the percentage increase to the three monetary thresholds increases the thresholds as follows: 1 16 CFR part 436. CFR 436.8(a)(1). 3 16 CFR 436.8(a)(5)(i). 4 16 CFR 436.8(a)(5)(ii). 5 16 CFR 436.8(b). 6 72 FR 15444 (Mar. 30, 2007). 7 77 FR 36149, 36150 (June 18, 2012); 81 FR 31500 (May 19, 2016). 8 Bureau of Labor Statistics, Consumer Price Index: Historical Consumer Price Index for All Urban Consumers (CPI–U), available at https:// www.bls.gov/cpi/tables/supplemental-files/ historical-cpi-u-201912.pdf. jbell on DSKJLSW7X2PROD with RULES 2 16 VerDate Sep<11>2014 17:30 Jun 26, 2020 Jkt 250001 PO 00000 Frm 00042 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1 38791 Federal Register / Vol. 85, No. 125 / Monday, June 29, 2020 / Rules and Regulations Exemption 2007 Base Minimum Payment ................................................................................................................................................... Large Franchise Investment .................................................................................................................................... Large franchisee ...................................................................................................................................................... Because the calculation of these thresholds is purely ministerial in nature and implements the Rule’s mandatory adjustment mechanism, these adjustments are exempt from the rulemaking procedures specified in section 18 of the FTC Act.10 In addition, the Commission has determined that notice and comment are unnecessary under the Administrative Procedure Act (‘‘APA’’) for the same reason. The Commission, therefore, has omitted notice and comment for good cause as provided by section 553(b)(B) of the APA.11 For this reason, the requirements of the Regulatory Flexibility Act also do not apply.12 Accordingly, the adjusted thresholds will take effect on July 1, 2020. Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a ‘‘major rule,’’ as defined by 5 U.S.C. 804(2). List of Subjects in 16 CFR Part 436 Advertising, Business and industry, Franchising, Trade practices. For the reasons set out in the preamble, the Federal Trade Commission amends 16 CFR part 436 as follows: PART 436—DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING 1. The authority citation for part 436 continues to read as follows: ■ Authority: 15 U.S.C. 41–58. § 436.8 [Amended] 2. Amend § 436.8 as follows: a. In paragraph (a)(1), remove ‘‘$570’’ and, in its place, add ‘‘$615’’; ■ b. In paragraph (a)(5)(i), remove both references to ‘‘$1,143,000’’ and, in their place, add ‘‘$1,233,000’’; and jbell on DSKJLSW7X2PROD with RULES ■ ■ 9 The Commission has rounded this figure from $616.50 to $615 to facilitate compliance and for clarity. 10 See 15 U.S.C. 57a(d)(2)(B); 16 CFR 1.15(b) (providing that non-substantive amendments to trade regulation rules are exempt from the rulemaking procedures of Section 18 of the FTC Act). 11 5 U.S.C. 553(b)(B) (providing that ‘‘good cause’’ exists to forego notice and comment when public comment is unnecessary). 12 5 U.S.C. 603 and 604 (no regulatory flexibility analyses required where the APA does not require public comment). VerDate Sep<11>2014 17:30 Jun 26, 2020 Jkt 250001 c. In paragraph (a)(5)(ii), remove ‘‘$5,715,500’’ and, in its place, add ‘‘$6,165,000’’. ■ By direction of the Commission. April J. Tabor, Acting Secretary. [FR Doc. 2020–12617 Filed 6–26–20; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [Docket No. USCG–2020–0260] Special Local Regulation; Dutch Shoe Marathon; San Diego, CA Coast Guard, DHS. Notice of enforcement of regulation. AGENCY: ACTION: The Coast Guard will enforce the Dutch Shoe Marathon special local regulation on the waters of San Diego Bay, California on July 17, 2020. These special local regulations are necessary to provide for the safety of the participants, crew, spectators, sponsor vessels, and general users of the waterway. During the enforcement period, persons and vessels are prohibited from anchoring, blocking, loitering, or impeding within this regulated area unless authorized by the Captain of the Port, or his designated representative. SUMMARY: The regulations in 33 CFR 100.1101 will be enforced for the Dutch Shoe Marathon regulated area listed in item 4 in Table 1 to § 100.1101 from noon to 4 p.m. on July 17, 2020. FOR FURTHER INFORMATION CONTACT: If you have questions about this notice of enforcement, call or email Lieutenant Briana Biagas, Waterways Management, U.S. Coast Guard Sector San Diego, CA; telephone (619) 278–7656, email D11MarineEventsSD@uscg.mil. SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the special local regulations in 33 CFR 100.1101 Table 1, Item 4 of that section for the Dutch Shoe Marathon in San Diego Bay, CA from noon to 4 p.m. on July 17, 2020. This action is being taken to provide for the DATES: PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 Adjusted 2020 Threshold $500 1,000,000 5,000,000 9 $615 1,233,000 6,165,000 safety of life on navigable waterways during this event. Our regulation for marine events within the Eleventh Coast Guard District, § 100.1101, specifies the location of the regulated area for the Dutch Shoe Marathon which encompasses the waters of San Diego Bay, CA, from Shelter Island to Glorietta Bay. Under the provisions of § 100.1101, persons and vessels are prohibited from anchoring, blocking, loitering, or impeding within this regulated area unless authorized by the Captain of the Port, or his designated representative. The Coast Guard may be assisted by other Federal, State, or local law enforcement agencies in enforcing this regulation. In addition to this notice of enforcement in the Federal Register, the Coast Guard will provide the maritime community with advance notification of this enforcement period via the Local Notice to Mariners, Safety Marine Information Broadcast, and local advertising by the event sponsor. If the Captain of the Port Sector San Diego or his designated representative determines that the regulated area need not be enforced for the full duration stated on this document, he or she may use a marine information broadcast or other communications coordinated with the event sponsor to grant general permission to enter the regulated area. Dated: June 9, 2020. T.J. Barelli, Captain, U.S. Coast Guard, Captain of the Port San Diego. [FR Doc. 2020–12864 Filed 6–26–20; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG–2020–0370] RIN 1625–AA00 Safety Zone; Fischer Wedding Fireworks Lake Charlevoix, Boyne City, MI Coast Guard, DHS. Temporary final rule. AGENCY: ACTION: E:\FR\FM\29JNR1.SGM 29JNR1

Agencies

[Federal Register Volume 85, Number 125 (Monday, June 29, 2020)]
[Rules and Regulations]
[Pages 38790-38791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12617]


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FEDERAL TRADE COMMISSION

16 CFR Part 436


Disclosure Requirements and Prohibitions Concerning Franchising

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
announces revised monetary thresholds for three exemptions from the 
Franchise Rule. The FTC is required to adjust the size of the monetary 
thresholds every fourth year based upon changes in the Consumer Price 
Index for All Urban Consumers (``CPI-U'') published by the Department 
of Labor.

DATES: This final rule is effective on July 1, 2020.

FOR FURTHER INFORMATION CONTACT: Christine M. Todaro, Attorney, 
Division of Marketing Practices, Bureau of Consumer Protection, Federal 
Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580; 
phone number: (202-326-3711), email address: [email protected].

SUPPLEMENTARY INFORMATION: The FTC's Trade Regulation Rule entitled 
``Disclosure Requirements and Prohibitions Concerning Franchising'' 
(Franchise Rule or Rule) \1\ provides three exemptions based on a 
monetary threshold: The ``minimum payment exemption,'' \2\ the ``large 
franchise investment exemption'' \3\ and the ``large franchisee 
exemption.'' \4\ The Rule requires the Commission to ``adjust the size 
of the monetary thresholds every fourth year based upon the . . . 
Consumer Price Index for all urban consumers [CPI-U] published by the 
Department of Labor.'' \5\ This requirement, added by the 2007 
amendments to the Rule, took effect on July 1, 2007, so that 
franchisors would have a one-year phase-in period within which to 
comply with the amended Rule's revised disclosure requirements before 
the July 1, 2008, final compliance deadline.\6\
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    \1\ 16 CFR part 436.
    \2\ 16 CFR 436.8(a)(1).
    \3\ 16 CFR 436.8(a)(5)(i).
    \4\ 16 CFR 436.8(a)(5)(ii).
    \5\ 16 CFR 436.8(b).
    \6\ 72 FR 15444 (Mar. 30, 2007).
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    As required by the Rule, the Commission previously revised the 
three monetary thresholds to reflect inflation in the CPI-U in 2012 and 
2016.\7\ The Commission bases the exemption monetary thresholds that 
will take effect on July 1, 2020, on the increase in the CPI-U between 
2007 and 2019. During this period, the annual average value of the 
Consumer Price Index for all urban consumers and all items increased by 
23.3%--from an index value of 207.342 to a value of 255.657.\8\ 
Applying the percentage increase to the three monetary thresholds 
increases the thresholds as follows:
---------------------------------------------------------------------------

    \7\ 77 FR 36149, 36150 (June 18, 2012); 81 FR 31500 (May 19, 
2016).
    \8\ Bureau of Labor Statistics, Consumer Price Index: Historical 
Consumer Price Index for All Urban Consumers (CPI-U), available at 
https://www.bls.gov/cpi/tables/supplemental-files/historical-cpi-u-201912.pdf.

[[Page 38791]]



------------------------------------------------------------------------
                                                           Adjusted 2020
                Exemption                    2007 Base       Threshold
------------------------------------------------------------------------
Minimum Payment.........................            $500        \9\ $615
Large Franchise Investment..............       1,000,000       1,233,000
Large franchisee........................       5,000,000       6,165,000
------------------------------------------------------------------------

    Because the calculation of these thresholds is purely ministerial 
in nature and implements the Rule's mandatory adjustment mechanism, 
these adjustments are exempt from the rulemaking procedures specified 
in section 18 of the FTC Act.\10\ In addition, the Commission has 
determined that notice and comment are unnecessary under the 
Administrative Procedure Act (``APA'') for the same reason. The 
Commission, therefore, has omitted notice and comment for good cause as 
provided by section 553(b)(B) of the APA.\11\ For this reason, the 
requirements of the Regulatory Flexibility Act also do not apply.\12\ 
Accordingly, the adjusted thresholds will take effect on July 1, 2020.
---------------------------------------------------------------------------

    \9\ The Commission has rounded this figure from $616.50 to $615 
to facilitate compliance and for clarity.
    \10\ See 15 U.S.C. 57a(d)(2)(B); 16 CFR 1.15(b) (providing that 
non-substantive amendments to trade regulation rules are exempt from 
the rulemaking procedures of Section 18 of the FTC Act).
    \11\ 5 U.S.C. 553(b)(B) (providing that ``good cause'' exists to 
forego notice and comment when public comment is unnecessary).
    \12\ 5 U.S.C. 603 and 604 (no regulatory flexibility analyses 
required where the APA does not require public comment).
---------------------------------------------------------------------------

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

List of Subjects in 16 CFR Part 436

    Advertising, Business and industry, Franchising, Trade practices.

    For the reasons set out in the preamble, the Federal Trade 
Commission amends 16 CFR part 436 as follows:

PART 436--DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING 
FRANCHISING

0
1. The authority citation for part 436 continues to read as follows:

    Authority: 15 U.S.C. 41-58.


Sec.  436.8  [Amended]

0
2. Amend Sec.  436.8 as follows:
0
a. In paragraph (a)(1), remove ``$570'' and, in its place, add 
``$615'';
0
b. In paragraph (a)(5)(i), remove both references to ``$1,143,000'' 
and, in their place, add ``$1,233,000''; and
0
c. In paragraph (a)(5)(ii), remove ``$5,715,500'' and, in its place, 
add ``$6,165,000''.

    By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020-12617 Filed 6-26-20; 8:45 am]
BILLING CODE 6750-01-P