Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 1231-1234 [2023-00163]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 5 / Monday, January 9, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
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 electronically, in binders or
otherwise, and posting an inexpensive
sign indicating warranty availability.
Warrantor compliance under the 2016
amendments entails providing retailers,
together with the warranted good, a
copy of the warranty or the address of
the warrantor’s internet website where
the consumer can review and obtain the
warranty terms, along with the contact
information where the consumer may
use a non-internet based method to
obtain a free copy of the warranty terms.
Commission staff believes that, in light
of the amendments, annual capital or
other non-labor costs will remain de
minimis.
Request for Comments
Pursuant to Section 3506(c)(2)(A) of
the PRA, the FTC invites comments on:
(1) whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(2) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information, including the validity of
the methodology and assumptions used;
(3) ways to enhance the quality, utility,
and clarity of the information to be
collected; and (4) ways to minimize the
burden of maintaining records and
providing disclosures to consumers. All
comments must be received on or before
March 10, 2023.
You can file a comment online or on
paper. For the FTC to consider your
comment, we must receive it on or
before March 10, 2023. Write
‘‘Paperwork Reduction Act Comment:
FTC File No. P072108’’ on your
comment. Your comment—including
your name and your state—will be
placed on the public record of this
proceeding, including the https://
www.regulations.gov website.
Due to the public health emergency in
response to the COVID–19 outbreak and
the agency’s heightened security
screening, postal mail addressed to the
Commission will be subject to delay. We
encourage you to submit your comments
online through the https://
www.regulations.gov website.
If you prefer to file your comment on
paper, write ‘‘Paperwork Reduction Act
Comment: FTC File No. P072108’’ on
your comment and on the envelope, and
mail your comment to the following
address: Federal Trade Commission,
Office of the Secretary, 600
Pennsylvania Avenue NW, Suite CC–
VerDate Sep<11>2014
18:21 Jan 06, 2023
Jkt 259001
5610 (Annex J), Washington, DC 20580;
or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024. If possible,
submit your paper comment to the
Commission by courier or overnight
service.
Because your comment will become
publicly available at https://
www.regulations.gov, you are solely
responsible for making sure that your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include any sensitive personal
information, such as your or anyone
else’s Social Security number; date of
birth; driver’s license number or other
state identification number, or foreign
country equivalent; passport number;
financial account number; or credit or
debit card number. You are also solely
responsible for making sure that your
comment does not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, your comment should not
include any ‘‘trade secret or any
commercial or financial information
which . . . . is privileged or
confidential’’—as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—
including in particular competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns, devices, manufacturing
processes, or customer names.
Comments containing material for
which confidential treatment is
requested must be filed in paper form,
must be clearly labeled ‘‘Confidential,’’
and must comply with FTC Rule 4.9(c).
In particular, the written request for
confidential treatment that accompanies
the comment must include the factual
and legal basis for the request, and must
identify the specific portions of the
comment to be withheld from the public
record. See FTC Rule 4.9(c). Your
comment will be kept confidential only
if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted publicly at
www.regulations.gov, we cannot redact
or remove your comment unless you
submit a confidentiality request that
meets the requirements for such
treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding, as
PO 00000
Frm 00048
Fmt 4703
Sfmt 4703
1231
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before March 10, 2023. For information
on the Commission’s privacy policy,
including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/
site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023–00180 Filed 1–6–23; 8:45 am]
BILLING CODE 6750–01–P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission.
Notice.
AGENCY:
ACTION:
In accordance with the
Paperwork Reduction Act of 1995
(‘‘PRA’’), the Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’) is seeking
public comment on its proposal to
extend for an additional three years the
Office of Management and Budget
(‘‘OMB’’) clearance for information
collection requirements in its Informal
Dispute Settlement Procedures Rule
(‘‘the Dispute Settlement Rule’’ or ‘‘the
Rule’’). The current clearance expires on
July 31, 2023.
DATES: Comments must be received on
or before March 10, 2023.
ADDRESSES: Interested parties may file a
comment online or on paper by
following the instructions in the
Request for Comments part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Dispute Settlement Rule;
PRA Comment: FTC File No. P072108’’
on your comment, and file your
comment online at https://
www.regulations.gov by following the
instructions on the web-based form. If
you prefer to file your comment on
paper, mail your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex J), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Laura Basford, General Attorney,
Division of Marketing Practices, Bureau
of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue
NW, Washington, DC 20580, (202) 326–
2343, lbasford@ftc.gov.
SUMMARY:
E:\FR\FM\09JAN1.SGM
09JAN1
1232
Federal Register / Vol. 88, No. 5 / Monday, January 9, 2023 / Notices
Burden Statement
SUPPLEMENTARY INFORMATION:
lotter on DSK11XQN23PROD with NOTICES1
Title: Informal Dispute Settlement
Procedures Rule (the Dispute Settlement
Rule or the Rule), 16 CFR part 703.
OMB Control Number: 3084–0113.
Type of Review: Extension of a
currently approved collection.
Abstract: The Dispute Settlement Rule
is one of three rules 1 that the FTC
implemented pursuant to requirements
of the Magnuson-Moss Warranty Act, 15
U.S.C. 2301 et seq. (‘‘Warranty Act’’ or
‘‘Act’’).2 The Dispute Settlement Rule,
16 CFR part 703, specifies the minimum
standards which must be met by any
informal dispute settlement mechanism
(‘‘IDSM’’) that is incorporated into a
written consumer product warranty and
which the consumer is required to use
before pursuing legal remedies under
the Act in court (known as the ‘‘prior
resort requirement’’).3
The Dispute Settlement Rule
standards for IDSMs include
requirements concerning the
mechanism’s structure (e.g., funding,
staffing, and neutrality), the
qualifications of staff or decision
makers, the mechanism’s procedures for
resolving disputes (e.g., notification,
investigation, time limits for decisions,
and follow-up), recordkeeping, and
annual audits. The Rule requires that
IDSMs establish written operating
procedures and provide copies of those
procedures upon request.
Likely Respondents: Warrantors that
Use an IDSM (Automobile
Manufacturers) and Informal Dispute
Settlement Mechanisms.
Estimated Annual Burden Hours:
9,267 (derived from 6,210 recordkeeping
hours in addition to 2,070 reporting
hours and 987 disclosure hours).
Estimated Annual Labor Costs:
$239,093.
Estimated Annual Capital or Other
Non-labor Costs: $344,560.
As required by section 3506(c)(2)(A)
of the PRA, 44 U.S.C. 3506(c)(2)(A), the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing clearance for
the information collection requirements
associated with the Dispute Settlement
Rule.
1 The other two rules relate to the information
that must appear in any written warranty offered on
a consumer product costing more than $15 and the
pre-sale availability of warranty terms.
2 40 FR 60168 (Dec. 31, 1975).
3 The Dispute Settlement Rule applies only to
those firms that choose to require consumers to use
an IDSM. Neither the Rule nor the Act requires
warrantors to set up IDSMs. A warrantor is free to
set up an IDSM that does not comply with the Rule
as long as the warranty does not contain a prior
resort requirement.
VerDate Sep<11>2014
18:21 Jan 06, 2023
Jkt 259001
The primary burden from the Dispute
Settlement Rule comes from the
recordkeeping requirements that apply
to IDSMs that are incorporated into a
consumer product warranty through a
prior resort clause. Currently, there are
two IDSMs operating under the Rule: (1)
the BBB AUTO LINE, and (2) the
National Center for Dispute Settlement
(‘‘NCDS’’). Although the Rule’s
information collection requirements
have not changed since 2020, staff has
adjusted its previous estimates slightly
upward for its 2023 calculations
because the two IDSMs indicate that, on
average, more disputes have been
handled since the previous submission
to OMB (12,241 disputes/year projected
in 2020; 12,420 disputes/year projected
in 2023). The calculations underlying
staff’s new estimates follow.
Recordkeeping: The Rule requires
IDSMs to maintain records of each
consumer warranty dispute. Both the
BBB AUTO LINE and NCDS report the
number of disputes closed each year.
Staff is using those numbers to project
what will happen over the next three
years of OMB clearance for the Rule.
The BBB AUTO LINE handles an
average of 9,365 disputes each year.4
NCDS handles an average of 3,055
disputes each year.5 Based on these
figures, staff estimates that the average
number of IDSM disputes covered by
the Rule is approximately 12,420. Case
files must include information such as
the consumer’s contact information, the
make and model of the product at issue,
all letters or other correspondence
submitted by the consumer or
warrantor, and all evidence collected to
resolve the dispute. Because
maintaining individual case records is a
necessary function for any IDSM, much
of the burden would be incurred in the
ordinary course of business.
Nonetheless, staff estimates that
maintaining individual case files
imposes an additional burden of 30
minutes per case.
Accordingly, the total annual
recordkeeping burden is approximately
6,210 hours ((12,420 disputes × 30
minutes of burden/dispute) ÷ 60
minutes/hour).
4 According to its annual audits, the BBB AUTO
LINE closed 10,351 disputes in 2019, 9,044 in 2020,
and 8,700 in 2021. This includes disputes for at
least two manufacturers that do not include a prior
resort requirement. Therefore, this number likely
overstates the number of disputes covered by the
Rule.
5 According to NCDS’ annual audits, the number
of disputes both within its jurisdiction and closed
each year are 3,861 in 2019, 2,864 in 2020, and
2,439 in 2021.
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
Reporting: The Rule requires IDSMs
to update indexes, complete semiannual
statistical summaries, and submit an
annual audit report to the FTC. Staff
estimates that covered entities spend
approximately 10 minutes per case for
these activities, resulting in a total
annual burden of approximately 2,070
hours ((12,420 disputes × 10 minutes of
burden/dispute) ÷ 60 minutes/hour).
Disclosure
(a) Warrantors’ Disclosure Burden
As it did in 2020, staff has determined
that it would be appropriate to account
for the disclosure burden as it relates to
warrantors based on two types of
additional information that warrantors
are required to disclose under the Rule:
(1) information concerning the IDSM
and its procedures; and (2) information
that makes consumers aware of the
existence of the IDSM.6
A review of the annual audits of the
BBB AUTO LINE and the NCDS
indicates that there are approximately
twenty-six automobile manufacturers
covered by the Rule. Staff assumes that
each manufacturer spends an average of
thirty hours a year creating, revising,
and distributing the informational
materials necessary to comply with the
Rule, resulting in an annual disclosure
burden of 780 hours (26 manufacturers
× 30 hours).
(b) IDSMs’ Disclosure Burden
Under the Rule, the IDSMs are
required to provide to interested
consumers, upon request, copies of the
various types of information the IDSM
possesses, including its annual audits.
In addition, consumers who have filed
disputes with the IDSM also have a right
to copies of their records. IDSMs are
permitted to charge for providing both
types of information.
Based on discussions with
representatives of the two IDSMs, staff
estimates that the burden imposed by
these disclosure requirements is
approximately 207 hours per year. This
estimate draws from the average number
of disputes closed each year with the
IDSMs (12,420) and the assumption that
twenty percent of consumers request
copies of the records pertaining to their
disputes (approximately 2,484
disputes).7 Staff estimates that copying
such records would require
approximately 5 minutes per dispute.8
Staff estimates a total disclosure burden
of approximately 207 hours ((2,484
6 16
CFR 703.2(b).
assumes each dispute is associated with
one consumer.
8 In addition, some case files are provided to
consumers electronically, which further reduces the
paperwork burden borne by the IDSMs.
7 This
E:\FR\FM\09JAN1.SGM
09JAN1
Federal Register / Vol. 88, No. 5 / Monday, January 9, 2023 / Notices
disputes × 5 minutes of burden/dispute)
÷ 60 minutes/hour) for the IDSMs.
Accordingly, the total PRA-related
annual hours burden attributed to the
Rule is approximately 9,267 (6,210
hours for recordkeeping plus 2,070
hours for reporting plus 780 hours for
warrantors’ disclosures and 207 hours
for IDSM disclosures).
Total Annual Labor Cost: $239,093.
Recordkeeping: Staff assumes that
IDSMs use clerical staff to comply with
the recordkeeping requirements
contained in the Rule at an hourly rate
of approximately $19.9 Thus, the labor
cost associated with the 6,210 annual
burden hours for recordkeeping is
approximately $117,990 (6,210 burden
hours × $19 per hour).
Reporting: Staff assumes that IDSMs
also use clerical support staff at an
hourly rate of $19 to comply with the
reporting requirements. Thus, the labor
cost associated with the 2,070 annual
burden hours for reporting is
approximately $39,330 (2,070 burden
hours × $19 per hour).
Disclosure: Staff assumes that the
work required to comply with the
warrantors’ disclosure requirements
entails an equal mix of legal, clerical,
and graphic design work. Staff assumes
that one third of the total disclosure
hours for warrantors (260 hours) require
legal work at a rate of $250 per hour,
one third require graphic design at a rate
of $29 per hour,10 and one third require
clerical work at a rate of $19 per hour.
This results in a disclosure labor burden
of $77,480 for warrantors ((260 × $250)
+ (260 × $29) + (260 × $19)).
In addition, staff assumes that IDSMs
use clerical support at an hourly rate of
$19 to reproduce records and, therefore,
the labor cost associated with the 207
annual hours of disclosure burden for
IDSMs is approximately $3,933 (207
burden hours × $19 per hour).
Accordingly, the combined total
annual labor cost for PRA-related
burden under the Rule is approximately
$239,093 ($117,990 for recordkeeping +
$39,330 for reporting + $81,413 for
disclosures).
Total Annual Capital or Other NonLabor Costs: $344,560.
Total Capital and Start-Up Costs: The
Rule imposes no appreciable current
lotter on DSK11XQN23PROD with NOTICES1
9 The
wage rate is derived from occupational data
found in the Bureau of Labor Statistics,
Occupational Employment and Wages (Mar. 2022),
available at https://www.bls.gov/news.release/
ocwage.htm. The clerical wage rate estimate is
based on the mean hourly wage data for the
category of ‘‘Office Clerks, general’’ ($18.75),
rounded up to the nearest whole dollar amount
($19).
10 Id. The wage rate estimate for graphic design
work is based on the mean hourly wage data for the
category of ‘‘Graphic designers’’ ($28.83), rounded
up to the nearest whole dollar amount ($29).
VerDate Sep<11>2014
18:21 Jan 06, 2023
Jkt 259001
capital or start-up costs. The vast
majority of warrantors have already
developed systems to retain the records
and provide the disclosures required by
the Rule. Rule compliance does not
require the use of any capital goods,
other than ordinary office equipment, to
which providers already have access.
The Rule imposes one additional cost
on IDSMs operating under the Rule,
which is the annual audit requirement.
According to representatives of the
IDSMs, the vast majority of costs
associated with this requirement consist
of the fees paid to the auditors and their
staffs. Representatives of the IDSMs
previously estimated a combined cost of
$300,000 associated with the audits. In
light of cost increases over the past three
years, staff has increased that estimate
by five percent, estimating that the
annual audit requirement now costs
$315,000.
Other Non-Labor Costs: As discussed
above, staff assumes that approximately
twenty percent of dispute files
(approximately 2,484 files) are
requested by consumers. Staff also
estimates that only five percent of
consumers will request a copy of the
IDSM’s audit report (approximately 612
audit reports).11 Staff bases this
assumption on the number of consumer
requests received by the IDSMs in the
past and the fact that the IDSMs’ annual
audits are available online. Staff
estimates that the average disputerelated file contains 35 pages and a
typical annual audit file contains
approximately 200 pages. Staff estimates
copying costs of 14 cents per page.
Thus, the total annual copying cost
for dispute-related files is
approximately $12,172 (35 pages per file
× $0.14 per page × 2,484 disputes) and
the total annual copying cost for annual
audit reports is approximately $17,388
(200 pages per audit report × $0.14 per
page × 621 audit reports). Accordingly,
the total cost attributed to copying
under the Rule is approximately
$29,560.
Thus, the total non-labor cost under
the Rule is approximately $344,560
($315,000 for auditor fees + $29,560 for
copying costs).
Request for Comments
Pursuant to Section 3506(c)(2)(A) of
the PRA, the FTC invites comments on:
(1) whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(2) the accuracy of the agency’s estimate
11 This estimate assumes each dispute is
associated with one consumer.
PO 00000
Frm 00050
Fmt 4703
Sfmt 4703
1233
of the burden of the proposed collection
of information, including the validity of
the methodology and assumptions used;
(3) ways to enhance the quality, utility,
and clarity of the information to be
collected; and (4) ways to minimize the
burden of maintaining records,
providing reports to the government and
providing disclosures to consumers.
For the FTC to consider a comment,
we must receive it on or before March
10, 2023. Your comment, including your
name and your state, will be placed on
the public record of this proceeding,
including the https://
www.regulations.gov website.
You can file a comment online or on
paper. Due to the public health
emergency in response to the COVID–19
outbreak and the agency’s heightened
security screening, postal mail
addressed to the Commission will be
subject to delay. We encourage you to
submit your comments online through
the https://www.regulations.gov
website.
If you file your comment on paper,
write ‘‘Dispute Settlement Rule; PRA
Comment: FTC File No. P072108’’ on
your comment and on the envelope, and
mail it to the following address: Federal
Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue
NW, Suite CC–5610 (Annex J),
Washington, DC 20580, or deliver your
comment to the following address:
Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024. If possible,
submit your paper comment to the
Commission by courier or overnight
service.
Because your comment will become
publicly available at https://
www.regulations.gov, you are solely
responsible for making sure that your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include any sensitive personal
information, such as your or anyone
else’s Social Security number; date of
birth; driver’s license number or other
state identification number, or foreign
country equivalent; passport number;
financial account number; or credit or
debit card number. You are also solely
responsible for making sure that your
comment does not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, your comment should not
include any ‘‘trade secret or any
commercial or financial information
which . . . is privileged or
confidential’’—as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
E:\FR\FM\09JAN1.SGM
09JAN1
1234
Federal Register / Vol. 88, No. 5 / Monday, January 9, 2023 / Notices
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
requests that the Office of Management
and Budget (‘‘OMB’’) extend for an
additional three years the current
Paperwork Reduction Act (‘‘PRA’’)
clearance for its shared enforcement
authority with the Consumer Financial
Protection Bureau (‘‘CFPB’’) for
information collection requirements
contained in the CFPB’s Regulation O.
That clearance expires on March 31,
2023.
DATES: Comments must be received on
or before March 10, 2023.
ADDRESSES: Interested parties may file a
comment online or on paper by
following the instructions in the
Request for Comments part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Paperwork Reduction Act
Comment: FTC File No. P072108’’ on
your comment, and file your comment
online at https://www.regulations.gov by
following the instructions on the webbased form. If you prefer to file your
comment on paper, mail your comment
to the following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex J), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Stephanie Rosenthal, Division of
Financial Practices, Bureau of Consumer
Protection, Federal Trade Commission,
600 Pennsylvania Ave. NW,
Washington, DC 20580, (202) 326–3332.
SUPPLEMENTARY INFORMATION:
Title: Regulation O, 12 CFR part 1015.
OMB Control Number: 3084–0157.
Type of Review: Extension of
currently approved collection.
Estimated Number of Respondents:
118.
Estimated Annual Burden Hours: 354.
Abstract: The FTC and CFPB share
enforcement authority for the Mortgage
Assistance Relief Services (Regulation
O), 12 CFR part 1015.1 The rule
includes disclosure requirements to
assist purchasers of mortgage assistance
relief services in making well-informed
decisions and avoiding unfair or
deceptive acts and practices. The
1 Title X of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘Dodd-Frank Act’’),
Public Law 111–203, 124 Stat. 1376 (2010),
transferred the Commission’s rulemaking authority
under the mortgage provisions in section 626 of the
2009 Omnibus Appropriations Act, as amended, to
the CFPB. On December 16, 2011, the CFPB
republished the Mortgage Assistance Relief Services
(‘‘MARS’’) Rule as Regulation O (12 CFR pt. 1015).
As a result, the Commission subsequently rescinded
its MARS Rule (16 CFR pt. 322). Nonetheless, under
the Dodd-Frank Act, the FTC retains its authority
to bring law enforcement actions to enforce
Regulation O.
2 Consumer Financial Protection Bureau, Agency
Information Collection Activities: Comment
Request, 87 FR 40514 (Oct. 4, 2022).
3 See CFPB Supporting Statement, Mortgage
Assistance Relief Services (Regulation O) 12 CFR
1015, OMB Control No: 3170–0007 (July 11, 2022),
available at https://www.reginfo.gov/public/do/
PRAViewDocument?ref_nbr=202205-3170-004;
clearance expires on October 31, 2025.
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)
—including, in particular, competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns, devices, manufacturing
processes, or customer names.
Comments containing material for
which confidential treatment is
requested must (1) be filed in paper
form, (2) be clearly labeled
‘‘Confidential,’’ and (3) comply with
FTC Rule 4.9(c). In particular, the
written request for confidential
treatment that accompanies the
comment must include the factual and
legal basis for the request, and must
identify the specific portions of the
comment to be withheld from the public
record. See FTC Rule 4.9(c). Your
comment will be kept confidential only
if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted publicly at
www.regulations.gov, we cannot redact
or remove your comment unless you
submit a confidentiality request that
meets the requirements for such
treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before March 10, 2023. For information
on the Commission’s privacy policy,
including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/
site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023–00163 Filed 1–6–23; 8:45 am]
BILLING CODE 6750–01–P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission.
Notice.
AGENCY:
ACTION:
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
18:21 Jan 06, 2023
Jkt 259001
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
information that must be retained under
Regulation O’s recordkeeping
requirements is used by the CFPB and
the FTC for enforcement purposes and
to ensure compliance by MARS
providers with Regulation O. The
information is requested only on a caseby-case basis.
As required by section 3506(c)(2)(A)
of the PRA, 44 U.S.C. 3506(c)(2)(A), the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing clearance for
the information collection requirements
contained in Regulation O.
Burden Statement
Because the FTC and CFPB share
enforcement authority for this rule, the
FTC is seeking clearance for one-half of
the following burden estimates. These
estimates are based on the agencies’ law
enforcement experience and the recent
analysis conducted as part of the CFPB’s
clearance renewal for the information
collections associated with Regulation
O.2 The FTC and CFPB estimate that
there are approximately 118 for-profit,
non-attorney entities offering MARS
services and subject to Regulation O’s
requirements.3
Estimated annual hours burden: 354
(FTC share).
FTC staff estimates that compliance
with Regulation O’s disclosure
requirements for MARS providers
requires 6 hours of labor annually.4
Multiplying this figure by 118 entities
yields a total burden for covered
providers of 708 hours annually.5 For
PRA purposes, the FTC and CFPB share
enforcement authority and split the
information collection burden
associated with the Rule equally. As a
result, the FTC assumes 354 hours of
this total annual hours of burden.
Estimated associated labor cost:
$12,195 (FTC share).
In calculating the associated labor
costs, FTC staff estimates that a
compliance officer or equivalent will
prepare the required disclosures at an
hourly rate of $34.45/hr.6 Thus, the
estimated annual labor cost is $24,390
(118 providers × 6 hours × $34.45) of
which the FTC assumes half, or $12,195.
4 Id.
5 Id.
6 This estimate is based on the median hourly
wage for a Compliance Officer (occupation code 13–
1041) of $34.45 provided by the Bureau of Labor
Statistics. See BLS Occupational Employment and
Wages estimate of the median hourly wage for a
Compliance Officer (occupation code 13–1041) of
$34.45, available at https://www.bls.gov/oes/
current/oes131041.htm.
E:\FR\FM\09JAN1.SGM
09JAN1
]]>Agencies
[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1231-1234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00163]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Paperwork Reduction Act of 1995
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the Office of Management and Budget (``OMB'') clearance for
information collection requirements in its Informal Dispute Settlement
Procedures Rule (``the Dispute Settlement Rule'' or ``the Rule''). The
current clearance expires on July 31, 2023.
DATES: Comments must be received on or before March 10, 2023.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``Dispute Settlement
Rule; PRA Comment: FTC File No. P072108'' on your comment, and file
your comment online at https://www.regulations.gov by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Laura Basford, General Attorney,
Division of Marketing Practices, Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580,
(202) 326-2343, [email protected].
[[Page 1232]]
SUPPLEMENTARY INFORMATION:
Title: Informal Dispute Settlement Procedures Rule (the Dispute
Settlement Rule or the Rule), 16 CFR part 703.
OMB Control Number: 3084-0113.
Type of Review: Extension of a currently approved collection.
Abstract: The Dispute Settlement Rule is one of three rules \1\
that the FTC implemented pursuant to requirements of the Magnuson-Moss
Warranty Act, 15 U.S.C. 2301 et seq. (``Warranty Act'' or ``Act'').\2\
The Dispute Settlement Rule, 16 CFR part 703, specifies the minimum
standards which must be met by any informal dispute settlement
mechanism (``IDSM'') that is incorporated into a written consumer
product warranty and which the consumer is required to use before
pursuing legal remedies under the Act in court (known as the ``prior
resort requirement'').\3\
---------------------------------------------------------------------------
\1\ The other two rules relate to the information that must
appear in any written warranty offered on a consumer product costing
more than $15 and the pre-sale availability of warranty terms.
\2\ 40 FR 60168 (Dec. 31, 1975).
\3\ The Dispute Settlement Rule applies only to those firms that
choose to require consumers to use an IDSM. Neither the Rule nor the
Act requires warrantors to set up IDSMs. A warrantor is free to set
up an IDSM that does not comply with the Rule as long as the
warranty does not contain a prior resort requirement.
---------------------------------------------------------------------------
The Dispute Settlement Rule standards for IDSMs include
requirements concerning the mechanism's structure (e.g., funding,
staffing, and neutrality), the qualifications of staff or decision
makers, the mechanism's procedures for resolving disputes (e.g.,
notification, investigation, time limits for decisions, and follow-up),
recordkeeping, and annual audits. The Rule requires that IDSMs
establish written operating procedures and provide copies of those
procedures upon request.
Likely Respondents: Warrantors that Use an IDSM (Automobile
Manufacturers) and Informal Dispute Settlement Mechanisms.
Estimated Annual Burden Hours: 9,267 (derived from 6,210
recordkeeping hours in addition to 2,070 reporting hours and 987
disclosure hours).
Estimated Annual Labor Costs: $239,093.
Estimated Annual Capital or Other Non-labor Costs: $344,560.
As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements associated with the Dispute
Settlement Rule.
Burden Statement
The primary burden from the Dispute Settlement Rule comes from the
recordkeeping requirements that apply to IDSMs that are incorporated
into a consumer product warranty through a prior resort clause.
Currently, there are two IDSMs operating under the Rule: (1) the BBB
AUTO LINE, and (2) the National Center for Dispute Settlement
(``NCDS''). Although the Rule's information collection requirements
have not changed since 2020, staff has adjusted its previous estimates
slightly upward for its 2023 calculations because the two IDSMs
indicate that, on average, more disputes have been handled since the
previous submission to OMB (12,241 disputes/year projected in 2020;
12,420 disputes/year projected in 2023). The calculations underlying
staff's new estimates follow.
Recordkeeping: The Rule requires IDSMs to maintain records of each
consumer warranty dispute. Both the BBB AUTO LINE and NCDS report the
number of disputes closed each year. Staff is using those numbers to
project what will happen over the next three years of OMB clearance for
the Rule. The BBB AUTO LINE handles an average of 9,365 disputes each
year.\4\ NCDS handles an average of 3,055 disputes each year.\5\ Based
on these figures, staff estimates that the average number of IDSM
disputes covered by the Rule is approximately 12,420. Case files must
include information such as the consumer's contact information, the
make and model of the product at issue, all letters or other
correspondence submitted by the consumer or warrantor, and all evidence
collected to resolve the dispute. Because maintaining individual case
records is a necessary function for any IDSM, much of the burden would
be incurred in the ordinary course of business. Nonetheless, staff
estimates that maintaining individual case files imposes an additional
burden of 30 minutes per case.
---------------------------------------------------------------------------
\4\ According to its annual audits, the BBB AUTO LINE closed
10,351 disputes in 2019, 9,044 in 2020, and 8,700 in 2021. This
includes disputes for at least two manufacturers that do not include
a prior resort requirement. Therefore, this number likely overstates
the number of disputes covered by the Rule.
\5\ According to NCDS' annual audits, the number of disputes
both within its jurisdiction and closed each year are 3,861 in 2019,
2,864 in 2020, and 2,439 in 2021.
---------------------------------------------------------------------------
Accordingly, the total annual recordkeeping burden is approximately
6,210 hours ((12,420 disputes x 30 minutes of burden/dispute) / 60
minutes/hour).
Reporting: The Rule requires IDSMs to update indexes, complete
semiannual statistical summaries, and submit an annual audit report to
the FTC. Staff estimates that covered entities spend approximately 10
minutes per case for these activities, resulting in a total annual
burden of approximately 2,070 hours ((12,420 disputes x 10 minutes of
burden/dispute) / 60 minutes/hour).
Disclosure
(a) Warrantors' Disclosure Burden
As it did in 2020, staff has determined that it would be
appropriate to account for the disclosure burden as it relates to
warrantors based on two types of additional information that warrantors
are required to disclose under the Rule: (1) information concerning the
IDSM and its procedures; and (2) information that makes consumers aware
of the existence of the IDSM.\6\
---------------------------------------------------------------------------
\6\ 16 CFR 703.2(b).
---------------------------------------------------------------------------
A review of the annual audits of the BBB AUTO LINE and the NCDS
indicates that there are approximately twenty-six automobile
manufacturers covered by the Rule. Staff assumes that each manufacturer
spends an average of thirty hours a year creating, revising, and
distributing the informational materials necessary to comply with the
Rule, resulting in an annual disclosure burden of 780 hours (26
manufacturers x 30 hours).
(b) IDSMs' Disclosure Burden
Under the Rule, the IDSMs are required to provide to interested
consumers, upon request, copies of the various types of information the
IDSM possesses, including its annual audits. In addition, consumers who
have filed disputes with the IDSM also have a right to copies of their
records. IDSMs are permitted to charge for providing both types of
information.
Based on discussions with representatives of the two IDSMs, staff
estimates that the burden imposed by these disclosure requirements is
approximately 207 hours per year. This estimate draws from the average
number of disputes closed each year with the IDSMs (12,420) and the
assumption that twenty percent of consumers request copies of the
records pertaining to their disputes (approximately 2,484 disputes).\7\
Staff estimates that copying such records would require approximately 5
minutes per dispute.\8\ Staff estimates a total disclosure burden of
approximately 207 hours ((2,484
[[Page 1233]]
disputes x 5 minutes of burden/dispute) / 60 minutes/hour) for the
IDSMs.
---------------------------------------------------------------------------
\7\ This assumes each dispute is associated with one consumer.
\8\ In addition, some case files are provided to consumers
electronically, which further reduces the paperwork burden borne by
the IDSMs.
---------------------------------------------------------------------------
Accordingly, the total PRA-related annual hours burden attributed
to the Rule is approximately 9,267 (6,210 hours for recordkeeping plus
2,070 hours for reporting plus 780 hours for warrantors' disclosures
and 207 hours for IDSM disclosures).
Total Annual Labor Cost: $239,093.
Recordkeeping: Staff assumes that IDSMs use clerical staff to
comply with the recordkeeping requirements contained in the Rule at an
hourly rate of approximately $19.\9\ Thus, the labor cost associated
with the 6,210 annual burden hours for recordkeeping is approximately
$117,990 (6,210 burden hours x $19 per hour).
---------------------------------------------------------------------------
\9\ The wage rate is derived from occupational data found in the
Bureau of Labor Statistics, Occupational Employment and Wages (Mar.
2022), available at https://www.bls.gov/news.release/ocwage.htm. The
clerical wage rate estimate is based on the mean hourly wage data
for the category of ``Office Clerks, general'' ($18.75), rounded up
to the nearest whole dollar amount ($19).
---------------------------------------------------------------------------
Reporting: Staff assumes that IDSMs also use clerical support staff
at an hourly rate of $19 to comply with the reporting requirements.
Thus, the labor cost associated with the 2,070 annual burden hours for
reporting is approximately $39,330 (2,070 burden hours x $19 per hour).
Disclosure: Staff assumes that the work required to comply with the
warrantors' disclosure requirements entails an equal mix of legal,
clerical, and graphic design work. Staff assumes that one third of the
total disclosure hours for warrantors (260 hours) require legal work at
a rate of $250 per hour, one third require graphic design at a rate of
$29 per hour,\10\ and one third require clerical work at a rate of $19
per hour. This results in a disclosure labor burden of $77,480 for
warrantors ((260 x $250) + (260 x $29) + (260 x $19)).
---------------------------------------------------------------------------
\10\ Id. The wage rate estimate for graphic design work is based
on the mean hourly wage data for the category of ``Graphic
designers'' ($28.83), rounded up to the nearest whole dollar amount
($29).
---------------------------------------------------------------------------
In addition, staff assumes that IDSMs use clerical support at an
hourly rate of $19 to reproduce records and, therefore, the labor cost
associated with the 207 annual hours of disclosure burden for IDSMs is
approximately $3,933 (207 burden hours x $19 per hour).
Accordingly, the combined total annual labor cost for PRA-related
burden under the Rule is approximately $239,093 ($117,990 for
recordkeeping + $39,330 for reporting + $81,413 for disclosures).
Total Annual Capital or Other Non-Labor Costs: $344,560.
Total Capital and Start-Up Costs: The Rule imposes no appreciable
current capital or start-up costs. The vast majority of warrantors have
already developed systems to retain the records and provide the
disclosures required by the Rule. Rule compliance does not require the
use of any capital goods, other than ordinary office equipment, to
which providers already have access.
The Rule imposes one additional cost on IDSMs operating under the
Rule, which is the annual audit requirement. According to
representatives of the IDSMs, the vast majority of costs associated
with this requirement consist of the fees paid to the auditors and
their staffs. Representatives of the IDSMs previously estimated a
combined cost of $300,000 associated with the audits. In light of cost
increases over the past three years, staff has increased that estimate
by five percent, estimating that the annual audit requirement now costs
$315,000.
Other Non-Labor Costs: As discussed above, staff assumes that
approximately twenty percent of dispute files (approximately 2,484
files) are requested by consumers. Staff also estimates that only five
percent of consumers will request a copy of the IDSM's audit report
(approximately 612 audit reports).\11\ Staff bases this assumption on
the number of consumer requests received by the IDSMs in the past and
the fact that the IDSMs' annual audits are available online. Staff
estimates that the average dispute-related file contains 35 pages and a
typical annual audit file contains approximately 200 pages. Staff
estimates copying costs of 14 cents per page.
---------------------------------------------------------------------------
\11\ This estimate assumes each dispute is associated with one
consumer.
---------------------------------------------------------------------------
Thus, the total annual copying cost for dispute-related files is
approximately $12,172 (35 pages per file x $0.14 per page x 2,484
disputes) and the total annual copying cost for annual audit reports is
approximately $17,388 (200 pages per audit report x $0.14 per page x
621 audit reports). Accordingly, the total cost attributed to copying
under the Rule is approximately $29,560.
Thus, the total non-labor cost under the Rule is approximately
$344,560 ($315,000 for auditor fees + $29,560 for copying costs).
Request for Comments
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (2) the
accuracy of the agency's estimate of the burden of the proposed
collection of information, including the validity of the methodology
and assumptions used; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of maintaining records, providing reports to the government
and providing disclosures to consumers.
For the FTC to consider a comment, we must receive it on or before
March 10, 2023. Your comment, including your name and your state, will
be placed on the public record of this proceeding, including the
https://www.regulations.gov website.
You can file a comment online or on paper. Due to the public health
emergency in response to the COVID-19 outbreak and the agency's
heightened security screening, postal mail addressed to the Commission
will be subject to delay. We encourage you to submit your comments
online through the https://www.regulations.gov website.
If you file your comment on paper, write ``Dispute Settlement Rule;
PRA Comment: FTC File No. P072108'' on your comment and on the
envelope, and mail it to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024. If possible, submit your paper comment to the
Commission by courier or overnight service.
Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and
[[Page 1234]]
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2) --including, in particular,
competitively sensitive information such as costs, sales statistics,
inventories, formulas, patterns, devices, manufacturing processes, or
customer names.
Comments containing material for which confidential treatment is
requested must (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before March 10,
2023. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-00163 Filed 1-6-23; 8:45 am]
BILLING CODE 6750-01-P
