[Federal Register: May 17, 2004 (Volume 69, Number 95)]
[Notices]
[Page 27926-27927]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17my04-81]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (FTC or ``Commission'').
ACTION: Notice.
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SUMMARY: The information collection requirements described below will
be submitted to the Office of Management and Budget (OMB) for review,
as required by the Paperwork Reduction Act (PRA). The FTC is seeking
public comments on its proposal to extend through August 31, 2007, the
current PRA clearance for information collection requirements contained
in its regulations under the Comprehensive Smokeless Tobacco Health
Education Act of 1986 (``Smokeless Tobacco Act'' or the ``Act''). That
clearance expires on August 31, 2004.
DATES: Comments must be submitted on or before July 16, 2004.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Smokeless Tobacco Regulations: Paperwork
Comments, [R001009]'' 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 to the
following address: Federal Trade Commission/Office of the Secretary,
Room H-159, 600 Pennsylvania Avenue, NW., Washington, DC 20580. If the
comment contains any material for which confidential treatment is
requested, it must be filed in paper (rather than electronic) 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,
because U.S. postal mail in the Washington area and at the Commission
is subject to delay due to heightened security precautions.
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\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).
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The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC Web site, to the extent
practicable, at http://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 http://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
Rosemary Rosso, Attorney, Division of Advertising Practices, Bureau of
Consumer Protection, Federal Trade Commission, Washington, DC 20580,
(202) 326-2174.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3); 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing paperwork clearance for
the Smokeless Tobacco Act regulations (OMB Control Number 3084-
0082).\2\
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\2\ The Commission seeks comment on the costs and burdens
imposed by the existing smokeless tobacco regulations. In March
2000, the Commission commenced a regulatory review of its smokeless
tobacco regulations to determine whether there is a continuing need
for the regulations and, if so, what revisions, if any, should be
made. 65 FR 11944 (Mar. 7, 2000). If the Commission determines that
the regulations should be amended, it will commence a rulemaking
proceeding. Should any resulting amendments materially affect PRA
burden, the Commission will notify OMB and seek amended clearance.
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The FTC invites comments on: (1) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
Description of the collection of information and proposed use: The
Smokeless Tobacco Act requires that manufacturers, packagers, and
importers of smokeless tobacco products include one of three specified
health warnings on packages and in advertisements. The Act also
requires that each manufacturer, packager, and importer of smokeless
tobacco products submit a plan to the Commission specifying the method
to rotate, display, and distribute the warning statement required to
appear in advertising and labeling. The Commission is required by the
Act to determine that these plans provide for rotation, display, and
distribution of warnings in compliance with the Act and implementing
regulations. To the best of the Commission's knowledge, all of the
affected companies have previously filed plans. However, the plan
submission requirement continues
[[Page 27927]]
to apply to a company that amends its plan, or to a new company that
enters the market.
Burden statement:
Estimated annual hours burden: 1,000 hours (rounded). The FTC is
retaining its existing burden estimated of 1,000 hours. This amount is
based on the burden previously estimated for 14 smokeless tobacco
companies to prepare and submit amended compliance plans, and to permit
at least three new companies to submit initial compliance plans. Though
staff's calculations underlying the estimate totaled 560 hours, staff
then conservatively rounded up its estimate to 1,000 hours. Staff
firmly believes that this prior rounded estimate will fully incorporate
any incremental effects of an additional three companies submitting
plans.
Virtually all affected companies long ago filed their plans with
the Commission. Additional annual reporting burdens would occur only if
those companies opt to change the way they display the warnings
required by the Smokeless Tobacco Act. Although it is not possible to
predict whether any of the companies will seek to amend an existing
approval plan (and possibly none will), staff conservatively assumes
that each of the 14 smokeless tobacco companies will file one amendment
per year. This estimate is conservative because, over the past three
years, the Commission has reviewed amended plans from only two
companies,\3\ and the Commission has not changed the relevant
regulations.\4\ The estimated time to prepare the amended plans
submitted by these companies is less than 40 hours each. The only major
amendment of an approved plan, occurring more than three years ago,
required only 40 hours to prepare, which is considerably less time than
individual companies spent preparing their initial plans. Commission
staff believes it reasonable to assume that each of the 14 smokeless
tobacco companies would spend no more than 40 hours to prepare an
amended plan.
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\3\ One of these companies also submitted its initial plans for
two brands during this period. The burden estimate for the initial
plans is calculated separately.
\4\ Should the Commission amend the regulations in a manner that
materially affects the burden under the PRA, it will notify OMB and
seek amended clearance.
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Commission staff also estimates that one smokeless tobacco
manufacturer will file an initial plan, for an additional burden of
approximately 150 hours. Over the past three years, only one company
has submitted initial plans that together involve only two brands.\5\
When the regulations were first proposed in 1986, representatives of
the Smokeless Tobacco Council, Inc. indicated that the six companies it
represented would require approximately 700 to 800 hours in total (133
hours each) to complete the initial required plans, involving multiple
brands and multiple brand varieties. Staff assumed that other companies
would require a little more time, on average, to complete their plans.
Staff estimated that one smokeless tobacco company may file an initial
plan, and it would require approximately 150 hours to complete the
plan, and it believes this estimate remains reasonable.
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\5\ One of the plans involved a single brand with two brand
varieties. The other plan involved a single brand with a single
brand variety.
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In addition to the estimates above, the staff anticipates that in
the next three years, up to two small importers or small single brand
companies may submit initial plans, for an additional burden of
approximately 80 hours. The Commission has received such plans in the
past. Because these plans involved only a limited number of brands and
no advertising, the estimated time to prepare the plans was very
modest. Staff estimates that the two importers or small single brand
companies who may submit initial plans will spend no more than 40 hours
each to prepare the plans.
Based on these assumptions, the total annual hours burden should
not exceed 1,000 hours. [(14 companies x 40 hrs. each) + (one company x
150 hrs.) + (2 companies x 40 hrs.) = 790 total hours, rounded to one
thousand hours.]
Estimated annual labor cost burden: $103,000.
The total annualzied labor cost to these companies should not
exceed $103,000. This is based on the assumption that management or
attorneys will account for 80% of the esitmated 1,000 hours required to
rewrite or amend the plans, at an hourly rate of $125, and that
clerical support will account for the remaining time (20%) at an hourly
rate of $15. [Management and attorneys' time (1,000 hrs. x 0.80 x $125
= $100,000) + clerical time (1,000 hrs. x 0.2 x $15 = $3,000).]
Estimated annual non-labor cost burden: $0 or minimal.
The applicable requirements impose minimal start-up costs. The
companies may keep copies of their plans to ensure that labeling and
advertising complies with the requirements of the Smokeless Tobacco
Act. Such recordkeeping would require the use of office supplies, e.g.,
file folders and paper, all of which the companies should have on hand
in the ordinary course of their business.
While companies submitting initial plans may incur one-time capital
expenditures for equipment used to print package labels in order to
include the statutory health warnings or to prepare acetates for
advertising, the warnings themselves disclose information completely
supplied by the federal government. As such, the disclosure does not
constitute a ``collection of information'' as it is defined in the
regulations implementing the PRA, nor by extension, do the financial
resources expended in relation to it constitute paperwork ``burden.''
See 5 CFR 1320.3(c)(2). Moreover, any expenditures relating to the
statutory health warning requirements would likely be minimal in any
event. As noted above, virtually all affected firms have already
submitted approved plans. For these companies, there are no capital
expenditures. After the Commission approves a plan for the display of
the warnings required by the Smokeless Tobacco Act, the companies are
required to make additional submissions to the Commission only if there
is a change in the way that they choose to display the warnings. Once
the companies have prepared plates to print the required warnings on
their labels, there are no additional set-up costs associated with the
display of the warnings in labeling. Similarly, once the companies have
prepared acetates of the required warnings for advertising and
promotional materials, there are no additional set-up costs associated
with printing the warnings in those materials.
Finally, capital expenditures for small importer are likely to be
de minimis. Both firms that submitted plans over the past three years
used stickers to place the warnings on their packages. The stickered
warnings could be generated with office equipments and supplies such as
computers and labels, all of which the companies should have on hand in
the ordinary course of their business. Because neither firm engaged in
any advertising, no costs associated with advertising were incurred.
John D. Graubert,
Acting General Counsel.
[FR Doc. 04-11101 Filed 5-14-04; 8:45 am]
BILLING CODE 6750-01-M