80_FR_65965 80 FR 65758 - Agency Information Collection Activities; Proposed Collection; Comment Request

80 FR 65758 - Agency Information Collection Activities; Proposed Collection; Comment Request

FEDERAL TRADE COMMISSION

Federal Register Volume 80, Issue 207 (October 27, 2015)

Page Range65758-65761
FR Document2015-27194

The FTC seeks public comments on proposed information requests to marketers of electronic cigarettes. These comments will be considered before the Commission submits a request for Office of Management and Budget (``OMB'') review under the Paperwork Reduction Act (``PRA'') of compulsory process orders to those marketers. The information sought from those companies would include, among other things, data on annual sales and marketing expenditures. The Commission intends to ask OMB for a three-year clearance to collect this information.

Federal Register, Volume 80 Issue 207 (Tuesday, October 27, 2015)
[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65758-65761]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27194]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice.

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SUMMARY: The FTC seeks public comments on proposed information requests 
to marketers of electronic cigarettes. These comments will be 
considered before the Commission submits a request for Office of 
Management and Budget (``OMB'') review under the Paperwork Reduction 
Act (``PRA'') of compulsory process orders to those marketers. The 
information sought from those companies would include, among other 
things, data on annual sales and marketing expenditures. The Commission 
intends to ask OMB for a three-year clearance to collect this 
information.

DATES: Comments on the proposed information requests must be received 
on or before December 28, 2015.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write: ``Electronic 
Cigarettes: Paperwork Comment, FTC File No. P144504'' on your comment 
and file the comment online at https://ftcpublic.commentworks.com/ftc/electroniccigarettespra 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: Requests for additional information 
should be addressed to Elizabeth Sanger or Shira Modell, Division of 
Advertising Practices, Bureau of Consumer Protection, Federal Trade 
Commission. Telephone: (202) 326-2757 (Sanger) or (202) 326-3116 
(Modell).

SUPPLEMENTARY INFORMATION:
    Background: For many years, the Commission has published reports on 
sales and marketing expenditures by the major cigarette and smokeless 
tobacco manufacturers. The data contained in

[[Page 65759]]

those reports are based on information submitted to the Commission, 
pursuant to compulsory process, by the largest domestic cigarette and 
smokeless tobacco manufacturers.
    In the past few years, sales of battery-powered devices generally 
referred to as electronic cigarettes or ``e-cigarettes'' have grown 
rapidly in the United States. Rather than burn tobacco, these devices 
heat liquid containing flavorings and chemicals (usually including 
nicotine) to produce an aerosol that is inhaled, and then exhaled, by 
the user. E-cigarettes, which are sold both online and in brick-and-
mortar stores, are available in both disposable and refillable models, 
in a range of nicotine strengths (including nicotine-free), and in a 
multitude of flavors; \1\ some companies allow consumers to order 
individually-customized flavor and nicotine content combinations.
---------------------------------------------------------------------------

    \1\ Those flavors include tobacco and menthol, as well as fruits 
(e.g., green apple), beverages (e.g., coffee), desserts (e.g., 
turtle sundae), and others.
---------------------------------------------------------------------------

    Given the increasing prevalence of e-cigarettes alongside 
conventional cigarettes and smokeless tobacco, the Commission believes 
it is necessary for the agency to begin collecting information from e-
cigarette marketers about their sales and marketing activities. The 
Commission intends to publish a report with the data it obtains,\2\ and 
to issue annual information requests to the major marketers, in order 
to track trends over time. The information will be sought using 
compulsory process under Section 6(b) of the Federal Trade Commission 
Act, 15 U.S.C. 46.
---------------------------------------------------------------------------

    \2\ The report would not disclose any company-specific 
confidential data.
---------------------------------------------------------------------------

    The Commission plans to address its information requests to the 
ultimate U.S. parent of e-cigarette marketers (``industry members'') in 
order to ensure that no relevant data from affiliated or subsidiary 
companies go unreported. The Commission intends to issue information 
requests to approximately five large and ten small industry members. 
Even though this number does not represent the entire industry, the 
responses should provide valuable information about a reasonable 
percentage of the e-cigarette market, including its major players. 
Because the number of separately incorporated companies affected by the 
Commission's requests will exceed nine entities, the Commission intends 
to seek OMB clearance under the PRA before requesting any information 
from the industry members. Under the PRA, 44 U.S.C. 3501-3521, federal 
agencies must obtain approval from OMB for each ``collection of 
information'' they conduct or sponsor if posed to ten or more entities 
within any twelve-month period. 44 U.S.C. 3502(3); 5 CFR 1320.3(c). 
``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 authorize the 
proposed collection of information.
    The FTC invites comments on: (1) Whether participation in the study 
is necessary, including whether the information will be practically 
useful; (2) the accuracy of our burden estimates, including whether the 
methodology and assumptions used are valid; (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.
    The Commission anticipates that its requests will seek the 
following categories of information: (1) Sales and give-aways of e-
cigarettes and related products (e.g., refill cartridges and e-
liquids); (2) marketing expenditures, including the amounts being spent 
on various media; (3) product placements in television programming, 
motion pictures, magazines, and other publications; (4) efforts such as 
age-screening mechanisms to prevent youth from being exposed to 
advertising and promotion for e-cigarettes or from obtaining free 
product samples; (5) expenditures on advertising to deter youth under 
the age of 18 from purchasing or using e-cigarettes; and (6) data 
collection activities, including data collection in connection with 
digital and social media marketing, and efforts to avoid collection of 
data from those under age 18. The Commission requests comments on its 
intention to seek the above-listed categories of information.
    The Commission also invites comments on the following issues:
    1. Should the FTC seek to collect data that are differentiated 
according to: (a) The various types of products sold and given away by 
industry members (e.g., collecting data on disposable devices 
separately from data on refillable devices and on refill supplies); (b) 
the various flavors and nicotine strengths of those sales and give-
aways; (c) the various sizes and liquid capacities of disposable e-
cigarettes, cartridges, and e-liquids sold and given away; and (d) 
whether the company sells directly to consumers (e.g., over the 
Internet) or to wholesalers and distributors for subsequent sale to 
consumers (e.g., at convenience stores)? Would less detailed 
information be sufficient, and, if so, what level of detail will 
suffice, and why?
    2. Should the Commission collect data on product sales separately 
from data on product give-aways?
    3. If an e-cigarette is sold with more than one cartridge (or 
container of e-liquid), should all of those cartridges be considered 
part of the initial sale, or should some of them be considered refills? 
If some of them should be considered refills, which ones? Does it 
matter whether those cartridges are part of the same Stock Keeping Unit 
(``SKU'') as the e-cigarette device? Whether they are packaged with it 
in the same blister pack?
    4. Should the Commission seek data on state-by-state sales of e-
cigarettes and related products?
    5. Is there other information the Commission should seek from the 
companies about sales and give-aways of their products?
    6. Assuming that the Commission's collection and reporting of 
highly detailed data is necessary for understanding the e-cigarette 
industry--e.g., which flavor and nicotine content combinations are sold 
the most in direct online transactions with consumers, and which are 
sold the most to wholesalers and retailers, and which products are most 
frequently given away--can industry members provide those data? In 
other words, can the companies provide data that distinguishes between: 
(a) Direct sales to consumers (e.g., online sales) and sales to 
retailers and distributors; (b) sales and give-aways of disposable e-
cigarettes and sales and give-aways of refillable e-cigarettes; and (c) 
the various combinations of sizes, flavors, and nicotine contents of 
their e-cigarettes and refill cartridges and e-liquids? For example, 
can the companies report the volume and sales value of higher nicotine, 
menthol-flavored e-liquid sold to retailers and distributors separately 
from sales of lower nicotine, pizza-flavored e-liquid sold directly to 
consumers? Can they report the volume and sales value of higher 
nicotine, tobacco-flavored cartridges and e-liquids sold with an e-
cigarette (i.e., in the same blister pack) separately from the volume 
and sales value of lower nicotine, dessert-flavored refill cartridges 
and e-liquids? Can the companies provide sales data on a state-by-state 
basis, and if so, can they do so for all sales or only for sales made 
directly to consumers?
    7. Should the Commission collect data for each individual e-
cigarette flavor sold by the companies, or should it identify various 
flavor categories (e.g.,

[[Page 65760]]

tobacco, fruit, dessert) for purposes of the companies' reports? If the 
Commission should use flavor categories, how should those categories be 
defined? Similarly, should the Commission collect data for every level 
of nicotine content sold by the companies, or should it identify 
various ranges of nicotine content (e.g., nicotine-free, from 1.8% to 
2.4%); if the Commission should use ranges, what should they be?
    Estimated hours burden: The FTC staff's estimate of the hours 
burden is based on the time that would be required to respond to the 
Commission's information request. The FTC currently anticipates sending 
information requests to as many as 15 e-cigarette companies each year. 
The Commission anticipates that these companies will vary in size, in 
the number of products they sell, and in the extent and variety of 
their advertising and promotion. Because of these variables, and the 
quick-changing nature of the industry at this point, FTC staff has not 
calculated separate burden estimates for large and small companies, as 
is otherwise traditionally the case for the Commission's cigarette and 
smokeless tobacco Orders. For example, an e-cigarette marketer with a 
large volume of sales but a relatively small product line could 
potentially require fewer resources to respond to the Commission's 
Order than a marketer with lower overall sales but a substantially 
larger product line that offers consumers a greater range of flavor and 
nicotine options. Rather than account for each potential permutation of 
factors, FTC staff has calculated a per company average at the upper 
limit of this potential range. Some companies will likely require less 
time to compile their responses.
    The Commission anticipates that even if it provides models for the 
Excel datafiles the companies will be required to submit, recipients of 
its Orders will need substantial time to prepare a response the first 
time. Once an e-cigarette marketer has prepared its first response to a 
Commission Order, however, it will need less time in subsequent years 
to prepare its reports because it will know what information it will be 
required to produce, and will already have a template for its 
submission.
    Accordingly, as an approximation, staff assumes a per company 
average of 200 hours for each recipient of the Commission's information 
requests the first year they have to comply with the Commission's 
Order. Staff anticipates that in subsequent years, the per company 
average will be 150 hours. Thus, the overall estimated burden for 15 
recipients of the information requests is 3,000 hours for the first 
year and 2,250 for each of the two subsequent years, or a total of 
7,500 hours. Thus, the average yearly burden, over the course of a 
prospective three-year clearance, per recipient (large and small), is 
167 hours (rounded to the nearest whole number). These estimates 
include any time spent by separately incorporated subsidiaries and 
other entities affiliated with the ultimate parent company that has 
received the information request.
    Estimated cost burden: Commission staff cannot calculate with 
precision the labor costs associated with this data production, as they 
entail varying compensation levels of management and/or support staff 
among companies of different sizes. The staff assumes that computer 
analysts and other non-legal staff will perform most of the work 
involved in responding to the Orders, although in-house legal personnel 
will be involved in reviewing the actual submission to the Commission. 
The staff believes that the same $100/hour wage that it used in its 
recent request for reauthorization of information requests to the major 
cigarette and smokeless tobacco manufacturers is appropriate here also 
for the combined efforts of these individuals. Using this figure, 
staff's best estimate for the total labor costs for 15 information 
requests is $300,000 (3,000 hours x $100/hour) for the first year and 
$225,000 for each of the two subsequent years (2,250 hours x $100/
hour), for a total of $750,000 over the entire three-year period. 
Annualized, labor cost per respondent will average approximately 
$16,700.
    Staff believes that the capital or other non-labor costs associated 
with the information requests are minimal. Although the information 
requests may necessitate that industry members maintain the requested 
information provided to the Commission, they should already have in 
place the means to compile and maintain business records.
    Request for comment: You can file a comment online or on paper. For 
the Commission to consider your comment, we must receive it on or 
before December 28, 2015. Write ``Electronic Cigarettes: Paperwork 
Comment, FTC File No. P144504'' on your comment. Your comment--
including your name and your state--will be placed on the public record 
of this proceeding, including, to the extent practicable, on the public 
Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a 
matter of discretion, the Commission tries to remove individuals' home 
contact information from comments before placing them on the Commission 
Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment doesn't include any 
sensitive personal information, such as anyone'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, do not 
include any ``[t]rade secret or any commercial or financial information 
which is . . . privileged or confidential,'' as discussed in 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). In particular, do not include competitively sensitive 
information, such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names. If you 
want the Commission to give your comment confidential treatment, you 
must file it in paper form, with a request for confidential treatment, 
and you must follow the procedure explained in FTC Rule 4.9(c), 16 CFR 
4.9(c). Your comment will be kept confidential only if the FTC General 
Counsel grants your request in accordance with the law and the public 
interest.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online, or to send them to the Commission by courier or 
overnight service. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/electroniccigarettespra, by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
    If you file your comment on paper, write ``Electronic Cigarettes: 
Paperwork Comment, FTC File No. P114504'' 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

[[Page 65761]]

(Annex J), Washington, DC 20024. If possible, submit your paper comment 
to the Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. 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 December 28, 2015. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2015-27194 Filed 10-26-15; 8:45 am]
BILLING CODE 6750-01-P



                                              65758                        Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

                                              TIME AND DATE:   2:30 p.m. on Friday,                   requested may result in disapproval of                FEDERAL TRADE COMMISSION
                                              October 30, 2015.                                       your request for access to the Board’s
                                              PLACE: Marriner S. Eccles Federal                       premises. You may be subject to a fine                Agency Information Collection
                                              Reserve Board Building, 20th Street                     or imprisonment under 18 U.S.C. 1001                  Activities; Proposed Collection;
                                              entrance between Constitution Avenue                    for any false statements you make in                  Comment Request
                                              and C Streets NW., Washington, DC                       your request to enter the Board’s                     AGENCY:   Federal Trade Commission
                                              20551.                                                  premises.                                             (‘‘FTC’’ or ‘‘Commission’’).
                                              STATUS: Open.                                                                                                 ACTION: Notice.
                                                                                                      MATTERS TO BE CONSIDERED:     Discussion
                                                 On the day of the meeting, you will
                                                                                                      Agenda:
                                              be able to view the meeting via webcast                                                                       SUMMARY:   The FTC seeks public
                                              from a link available on the Board’s                      1. Proposed Rule establishing Total                 comments on proposed information
                                              public Web site. You do not need to                     Loss-Absorbing Capacity and Buffers,                  requests to marketers of electronic
                                              register to view the webcast of the                     Long-term Debt, and Clean Holding                     cigarettes. These comments will be
                                              meeting. A link to the meeting                          Company Requirements for U.S. Global                  considered before the Commission
                                              documentation will also be available                    Systemically Important Banking                        submits a request for Office of
                                              approximately 20 minutes before the                     Organizations and U.S. Intermediate                   Management and Budget (‘‘OMB’’)
                                              start of the meeting. Both links may be                 Holding Companies of Foreign Global                   review under the Paperwork Reduction
                                              accessed from the Board’s public Web                    Systemically Important Banking                        Act (‘‘PRA’’) of compulsory process
                                              site at www.federalreserve.gov.                         Organizations.                                        orders to those marketers. The
                                                 If you plan to attend the open meeting                                                                     information sought from those
                                                                                                        2. Final Rule regarding Margin and
                                              in person, we ask that you notify us in                                                                       companies would include, among other
                                              advance and provide your name, date of                  Capital Requirements for Uncleared
                                                                                                                                                            things, data on annual sales and
                                              birth, and social security number (SSN)                 Swaps.
                                                                                                                                                            marketing expenditures. The
                                              or passport number. You may provide                       Notes: 1. The staff memo to the Board               Commission intends to ask OMB for a
                                              this information by calling 202–452–                    will be made available to the public on               three-year clearance to collect this
                                              2474 or you may register online. You                    the day of the meeting in paper and the               information.
                                              may pre-register until close of business                background material will be made                      DATES:  Comments on the proposed
                                              on October 29, 2015. You also will be                   available on a compact disc (CD). If you              information requests must be received
                                              asked to provide identifying                            require a paper copy of the entire                    on or before December 28, 2015.
                                              information, including a photo ID,                      document, please call Penelope Beattie
                                              before being admitted to the Board                                                                            ADDRESSES: Interested parties may file a
                                                                                                      on 202–452–3982. The documentation                    comment online or on paper, by
                                              meeting. The Public Affairs Office must                 will not be available until about 20
                                              approve the use of cameras; please call                                                                       following the instructions in the
                                                                                                      minutes before the start of the meeting.              Request for Comment part of the
                                              202–452–2955 for further information. If
                                              you need an accommodation for a                           2. This meeting will be recorded for                SUPPLEMENTARY INFORMATION section
                                              disability, please contact Penelope                     the benefit of those unable to attend.                below. Write: ‘‘Electronic Cigarettes:
                                              Beattie on 202–452–3982. For the                        The webcast recording and a transcript                Paperwork Comment, FTC File No.
                                              hearing impaired only, please use the                   of the meeting will be available after the            P144504’’ on your comment and file the
                                              Telecommunication Device for the Deaf                   meeting on the Board’s public Web site                comment online at https://
                                              (TDD) on 202–263–4869.                                  http://www.federalreserve.gov/                        ftcpublic.commentworks.com/ftc/
                                                 Privacy Act Notice: The information                  aboutthefed/boardmeetings/ or if you                  electroniccigarettespra by following the
                                              you provide will be used to assist us in                prefer, a CD recording of the meeting                 instructions on the web-based form. If
                                              prescreening you to ensure the security                 will be available for listening in the                you prefer to file your comment on
                                              of the Board’s premises and personnel.                  Board’s Freedom of Information Office,                paper, mail your comment to the
                                              In order to do this, we may disclose                    and copies can be ordered for $4 per                  following address: Federal Trade
                                              your information consistent with the                    disc by calling 202–452–3684 or by                    Commission, Office of the Secretary,
                                              routine uses listed in the Privacy Act                                                                        600 Pennsylvania Avenue NW., Suite
                                                                                                      writing to: Freedom of Information
                                              Notice for BGFRS–32, including to                                                                             CC–5610 (Annex J), Washington, DC
                                                                                                      Office, Board of Governors of the
                                              appropriate federal, state, local, or                                                                         20580, or deliver your comment to the
                                                                                                      Federal Reserve System, Washington,
                                              foreign agencies where disclosure is                                                                          following address: Federal Trade
                                                                                                      DC 20551.                                             Commission, Office of the Secretary,
                                              reasonably necessary to determine
                                              whether you pose a security risk or                       For more information please contact:                Constitution Center, 400 7th Street SW.,
                                              where the security or confidentiality of                Michelle Smith, Director, or Dave                     5th Floor Suite 5610 (Annex J),
                                              your information has been                               Skidmore, Assistant to the Board, Office              Washington, DC 20024.
                                              compromised. We are authorized to                       of Board Members at 202–452–2955.                     FOR FURTHER INFORMATION CONTACT:
                                              collect your information by 12 U.S.C.                   SUPPLEMENTARY INFORMATION:   You may                  Requests for additional information
                                              243 and 248, and Executive Order 9397.                  access the Board’s public Web site at                 should be addressed to Elizabeth Sanger
                                              In accordance with Executive Order                      www.federalreserve.gov for an electronic              or Shira Modell, Division of Advertising
                                              9397, we collect your SSN so that we                                                                          Practices, Bureau of Consumer
                                                                                                      announcement. (The Web site also
                                              can keep accurate records, because other                                                                      Protection, Federal Trade Commission.
                                                                                                      includes procedural and other
                                              people may have the same name and                                                                             Telephone: (202) 326–2757 (Sanger) or
                                                                                                      information about the open meeting.)
tkelley on DSK3SPTVN1PROD with NOTICES




                                              birth date. In addition, we use your SSN                                                                      (202) 326–3116 (Modell).
                                              when we make requests for information                     Dated: October 23, 2015.                            SUPPLEMENTARY INFORMATION:
                                              about you from law enforcement and                      Margaret M. Shanks,                                      Background: For many years, the
                                              other regulatory agency databases.                      Deputy Secretary of the Board.                        Commission has published reports on
                                              Furnishing the information requested is                 [FR Doc. 2015–27436 Filed 10–23–15; 4:15 pm]          sales and marketing expenditures by the
                                              voluntary; however, your failure to                     BILLING CODE 6210–01–P
                                                                                                                                                            major cigarette and smokeless tobacco
                                              provide any of the information                                                                                manufacturers. The data contained in


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                                                                           Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices                                            65759

                                              those reports are based on information                  ‘‘collection of information’’ they                    convenience stores)? Would less
                                              submitted to the Commission, pursuant                   conduct or sponsor if posed to ten or                 detailed information be sufficient, and,
                                              to compulsory process, by the largest                   more entities within any twelve-month                 if so, what level of detail will suffice,
                                              domestic cigarette and smokeless                        period. 44 U.S.C. 3502(3); 5 CFR                      and why?
                                              tobacco manufacturers.                                  1320.3(c). ‘‘Collection of information’’                 2. Should the Commission collect
                                                 In the past few years, sales of battery-             means agency requests or requirements                 data on product sales separately from
                                              powered devices generally referred to as                that members of the public submit                     data on product give-aways?
                                              electronic cigarettes or ‘‘e-cigarettes’’               reports, keep records, or provide                        3. If an e-cigarette is sold with more
                                              have grown rapidly in the United States.                information to a third party. 44 U.S.C.               than one cartridge (or container of e-
                                              Rather than burn tobacco, these devices                 3502(3); 5 CFR 1320.3(c). As required by              liquid), should all of those cartridges be
                                              heat liquid containing flavorings and                   section 3506(c)(2)(A) of the PRA, the                 considered part of the initial sale, or
                                              chemicals (usually including nicotine)                  FTC is providing this opportunity for                 should some of them be considered
                                              to produce an aerosol that is inhaled,                  public comment before requesting that                 refills? If some of them should be
                                              and then exhaled, by the user. E-                       OMB authorize the proposed collection                 considered refills, which ones? Does it
                                              cigarettes, which are sold both online                  of information.                                       matter whether those cartridges are part
                                              and in brick-and-mortar stores, are                        The FTC invites comments on: (1)                   of the same Stock Keeping Unit (‘‘SKU’’)
                                              available in both disposable and                        Whether participation in the study is                 as the e-cigarette device? Whether they
                                              refillable models, in a range of nicotine               necessary, including whether the                      are packaged with it in the same blister
                                              strengths (including nicotine-free), and                information will be practically useful;               pack?
                                              in a multitude of flavors; 1 some                       (2) the accuracy of our burden estimates,                4. Should the Commission seek data
                                              companies allow consumers to order                      including whether the methodology and                 on state-by-state sales of e-cigarettes and
                                              individually-customized flavor and                      assumptions used are valid; (3) ways to               related products?
                                                                                                      enhance the quality, utility, and clarity                5. Is there other information the
                                              nicotine content combinations.
                                                                                                      of the information to be collected; and               Commission should seek from the
                                                 Given the increasing prevalence of e-
                                                                                                      (4) ways to minimize the burden of the                companies about sales and give-aways
                                              cigarettes alongside conventional
                                                                                                      collection of information.                            of their products?
                                              cigarettes and smokeless tobacco, the                                                                            6. Assuming that the Commission’s
                                              Commission believes it is necessary for                    The Commission anticipates that its
                                                                                                      requests will seek the following                      collection and reporting of highly
                                              the agency to begin collecting                                                                                detailed data is necessary for
                                              information from e-cigarette marketers                  categories of information: (1) Sales and
                                                                                                      give-aways of e-cigarettes and related                understanding the e-cigarette industry—
                                              about their sales and marketing                                                                               e.g., which flavor and nicotine content
                                              activities. The Commission intends to                   products (e.g., refill cartridges and e-
                                                                                                      liquids); (2) marketing expenditures,                 combinations are sold the most in direct
                                              publish a report with the data it                                                                             online transactions with consumers, and
                                                                                                      including the amounts being spent on
                                              obtains,2 and to issue annual                                                                                 which are sold the most to wholesalers
                                                                                                      various media; (3) product placements
                                              information requests to the major                                                                             and retailers, and which products are
                                                                                                      in television programming, motion
                                              marketers, in order to track trends over                                                                      most frequently given away—can
                                                                                                      pictures, magazines, and other
                                              time. The information will be sought                                                                          industry members provide those data?
                                                                                                      publications; (4) efforts such as age-
                                              using compulsory process under Section                                                                        In other words, can the companies
                                                                                                      screening mechanisms to prevent youth
                                              6(b) of the Federal Trade Commission                                                                          provide data that distinguishes between:
                                                                                                      from being exposed to advertising and
                                              Act, 15 U.S.C. 46.                                                                                            (a) Direct sales to consumers (e.g.,
                                                                                                      promotion for e-cigarettes or from
                                                 The Commission plans to address its                                                                        online sales) and sales to retailers and
                                                                                                      obtaining free product samples; (5)
                                              information requests to the ultimate                    expenditures on advertising to deter                  distributors; (b) sales and give-aways of
                                              U.S. parent of e-cigarette marketers                    youth under the age of 18 from                        disposable e-cigarettes and sales and
                                              (‘‘industry members’’) in order to ensure               purchasing or using e-cigarettes; and (6)             give-aways of refillable e-cigarettes; and
                                              that no relevant data from affiliated or                data collection activities, including data            (c) the various combinations of sizes,
                                              subsidiary companies go unreported.                     collection in connection with digital                 flavors, and nicotine contents of their e-
                                              The Commission intends to issue                         and social media marketing, and efforts               cigarettes and refill cartridges and e-
                                              information requests to approximately                   to avoid collection of data from those                liquids? For example, can the
                                              five large and ten small industry                       under age 18. The Commission requests                 companies report the volume and sales
                                              members. Even though this number                        comments on its intention to seek the                 value of higher nicotine, menthol-
                                              does not represent the entire industry,                 above-listed categories of information.               flavored e-liquid sold to retailers and
                                              the responses should provide valuable                      The Commission also invites                        distributors separately from sales of
                                              information about a reasonable                          comments on the following issues:                     lower nicotine, pizza-flavored e-liquid
                                              percentage of the e-cigarette market,                      1. Should the FTC seek to collect data             sold directly to consumers? Can they
                                              including its major players. Because the                that are differentiated according to: (a)             report the volume and sales value of
                                              number of separately incorporated                       The various types of products sold and                higher nicotine, tobacco-flavored
                                              companies affected by the Commission’s                  given away by industry members (e.g.,                 cartridges and e-liquids sold with an e-
                                              requests will exceed nine entities, the                 collecting data on disposable devices                 cigarette (i.e., in the same blister pack)
                                              Commission intends to seek OMB                          separately from data on refillable                    separately from the volume and sales
                                              clearance under the PRA before                          devices and on refill supplies); (b) the              value of lower nicotine, dessert-flavored
                                              requesting any information from the                     various flavors and nicotine strengths of             refill cartridges and e-liquids? Can the
                                              industry members. Under the PRA, 44                     those sales and give-aways; (c) the                   companies provide sales data on a state-
                                              U.S.C. 3501–3521, federal agencies must
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                                                                                                      various sizes and liquid capacities of                by-state basis, and if so, can they do so
                                              obtain approval from OMB for each                       disposable e-cigarettes, cartridges, and              for all sales or only for sales made
                                                                                                      e-liquids sold and given away; and (d)                directly to consumers?
                                                1 Those flavors include tobacco and menthol, as
                                                                                                      whether the company sells directly to                    7. Should the Commission collect
                                              well as fruits (e.g., green apple), beverages (e.g.,
                                              coffee), desserts (e.g., turtle sundae), and others.    consumers (e.g., over the Internet) or to             data for each individual e-cigarette
                                                2 The report would not disclose any company-          wholesalers and distributors for                      flavor sold by the companies, or should
                                              specific confidential data.                             subsequent sale to consumers (e.g., at                it identify various flavor categories (e.g.,


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                                              65760                        Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

                                              tobacco, fruit, dessert) for purposes of                15 recipients of the information requests             information from comments before
                                              the companies’ reports? If the                          is 3,000 hours for the first year and                 placing them on the Commission Web
                                              Commission should use flavor                            2,250 for each of the two subsequent                  site.
                                              categories, how should those categories                 years, or a total of 7,500 hours. Thus,                  Because your comment will be made
                                              be defined? Similarly, should the                       the average yearly burden, over the                   public, you are solely responsible for
                                              Commission collect data for every level                 course of a prospective three-year                    making sure that your comment doesn’t
                                              of nicotine content sold by the                         clearance, per recipient (large and                   include any sensitive personal
                                              companies, or should it identify various                small), is 167 hours (rounded to the                  information, such as anyone’s Social
                                              ranges of nicotine content (e.g.,                       nearest whole number). These estimates                Security number, date of birth, driver’s
                                              nicotine-free, from 1.8% to 2.4%); if the               include any time spent by separately                  license number or other state
                                              Commission should use ranges, what                      incorporated subsidiaries and other                   identification number or foreign country
                                              should they be?                                         entities affiliated with the ultimate                 equivalent, passport number, financial
                                                 Estimated hours burden: The FTC                      parent company that has received the                  account number, or credit or debit card
                                              staff’s estimate of the hours burden is                 information request.                                  number. You are also solely responsible
                                              based on the time that would be                            Estimated cost burden: Commission                  for making sure that your comment does
                                              required to respond to the Commission’s                 staff cannot calculate with precision the             not include any sensitive health
                                              information request. The FTC currently                  labor costs associated with this data                 information, such as medical records or
                                              anticipates sending information requests                production, as they entail varying                    other individually identifiable health
                                              to as many as 15 e-cigarette companies                  compensation levels of management                     information. In addition, do not include
                                              each year. The Commission anticipates                   and/or support staff among companies                  any ‘‘[t]rade secret or any commercial or
                                              that these companies will vary in size,                 of different sizes. The staff assumes that            financial information which is . . .
                                              in the number of products they sell, and                computer analysts and other non-legal                 privileged or confidential,’’ as discussed
                                              in the extent and variety of their                      staff will perform most of the work                   in Section 6(f) of the FTC Act, 15 U.S.C.
                                              advertising and promotion. Because of                   involved in responding to the Orders,                 46(f), and FTC Rule 4.10(a)(2), 16 CFR
                                              these variables, and the quick-changing                 although in-house legal personnel will                4.10(a)(2). In particular, do not include
                                              nature of the industry at this point, FTC               be involved in reviewing the actual                   competitively sensitive information,
                                              staff has not calculated separate burden                submission to the Commission. The staff               such as costs, sales statistics,
                                              estimates for large and small companies,                believes that the same $100/hour wage                 inventories, formulas, patterns, devices,
                                              as is otherwise traditionally the case for              that it used in its recent request for                manufacturing processes, or customer
                                              the Commission’s cigarette and                          reauthorization of information requests               names. If you want the Commission to
                                              smokeless tobacco Orders. For example,                  to the major cigarette and smokeless                  give your comment confidential
                                              an e-cigarette marketer with a large                    tobacco manufacturers is appropriate                  treatment, you must file it in paper
                                              volume of sales but a relatively small                  here also for the combined efforts of                 form, with a request for confidential
                                              product line could potentially require                  these individuals. Using this figure,                 treatment, and you must follow the
                                              fewer resources to respond to the                       staff’s best estimate for the total labor             procedure explained in FTC Rule 4.9(c),
                                              Commission’s Order than a marketer                      costs for 15 information requests is                  16 CFR 4.9(c). Your comment will be
                                              with lower overall sales but a                          $300,000 (3,000 hours × $100/hour) for                kept confidential only if the FTC
                                              substantially larger product line that                  the first year and $225,000 for each of               General Counsel grants your request in
                                              offers consumers a greater range of                     the two subsequent years (2,250 hours ×               accordance with the law and the public
                                              flavor and nicotine options. Rather than                $100/hour), for a total of $750,000 over              interest.
                                              account for each potential permutation                  the entire three-year period.                            Postal mail addressed to the
                                              of factors, FTC staff has calculated a per              Annualized, labor cost per respondent                 Commission is subject to delay due to
                                              company average at the upper limit of                   will average approximately $16,700.                   heightened security screening. As a
                                              this potential range. Some companies                       Staff believes that the capital or other           result, we encourage you to submit your
                                              will likely require less time to compile                non-labor costs associated with the                   comments online, or to send them to the
                                              their responses.                                        information requests are minimal.                     Commission by courier or overnight
                                                 The Commission anticipates that even                 Although the information requests may                 service. To make sure that the
                                              if it provides models for the Excel                     necessitate that industry members                     Commission considers your online
                                              datafiles the companies will be required                maintain the requested information                    comment, you must file it at https://
                                              to submit, recipients of its Orders will                provided to the Commission, they                      ftcpublic.commentworks.com/ftc/
                                              need substantial time to prepare a                      should already have in place the means                electroniccigarettespra, by following the
                                              response the first time. Once an e-                     to compile and maintain business                      instructions on the web-based form. If
                                              cigarette marketer has prepared its first               records.                                              this Notice appears at http://
                                              response to a Commission Order,                            Request for comment: You can file a                www.regulations.gov/#!home, you also
                                              however, it will need less time in                      comment online or on paper. For the                   may file a comment through that Web
                                              subsequent years to prepare its reports                 Commission to consider your comment,                  site.
                                              because it will know what information                   we must receive it on or before                          If you file your comment on paper,
                                              it will be required to produce, and will                December 28, 2015. Write ‘‘Electronic                 write ‘‘Electronic Cigarettes: Paperwork
                                              already have a template for its                         Cigarettes: Paperwork Comment, FTC                    Comment, FTC File No. P114504’’ on
                                              submission.                                             File No. P144504’’ on your comment.                   your comment and on the envelope, and
                                                 Accordingly, as an approximation,                    Your comment—including your name                      mail it to the following address: Federal
                                              staff assumes a per company average of                  and your state—will be placed on the                  Trade Commission, Office of the
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                                              200 hours for each recipient of the                     public record of this proceeding,                     Secretary, 600 Pennsylvania Avenue
                                              Commission’s information requests the                   including, to the extent practicable, on              NW., Suite CC–5610 (Annex J),
                                              first year they have to comply with the                 the public Commission Web site, at                    Washington, DC 20580, or deliver your
                                              Commission’s Order. Staff anticipates                   http://www.ftc.gov/os/                                comment to the following address:
                                              that in subsequent years, the per                       publiccomments.shtm. As a matter of                   Federal Trade Commission, Office of the
                                              company average will be 150 hours.                      discretion, the Commission tries to                   Secretary, Constitution Center, 400 7th
                                              Thus, the overall estimated burden for                  remove individuals’ home contact                      Street SW., 5th Floor, Suite 5610


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                                                                           Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices                                               65761

                                              (Annex J), Washington, DC 20024. If                     under the heading ‘‘Enter Keyword or                  offers [on the basis of shipment through
                                              possible, submit your paper comment to                  ID’’ and selecting ‘‘Search’’. Select the             the port resulting in the lowest cost to
                                              the Commission by courier or overnight                  link ‘‘Submit a Comment’’ that                        the Government.
                                              service.                                                corresponds with ‘‘Information
                                                Visit the Commission Web site at                                                                            B. Annual Reporting Burden
                                                                                                      Collection 9000–0057, Evaluation of
                                              http://www.ftc.gov to read this Notice                  Export Offers’’. Follow the instructions                Respondents: 100.
                                              and the news release describing it. The                 provided at the ‘‘Submit a Comment’’                    Responses per Respondent: 4.
                                              FTC Act and other laws that the                         screen. Please include your name,                       Annual Responses: 400.
                                              Commission administers permit the                       company name (if any), and                              Hours per Response: 0.25
                                              collection of public comments to                        ‘‘Information Collection 9000–0057,                     Total Burden Hours: 100.
                                              consider and use in this proceeding as                  Evaluation of Export Offers’’ on your                 C. Public Comments
                                              appropriate. The Commission will                        attached document.                                       Public comments are particularly
                                              consider all timely and responsive                         • Mail: General Services
                                                                                                                                                            invited on: Whether this collection of
                                              public comments that it receives on or                  Administration, Regulatory Secretariat
                                                                                                                                                            information is necessary; whether it will
                                              before December 28, 2015. You can find                  Division (MVCB), 1800 F Street NW.,
                                                                                                                                                            have practical utility; whether our
                                              more information, including routine                     Washington, DC 20405. ATTN: Ms.
                                                                                                                                                            estimate of the public burden of this
                                              uses permitted by the Privacy Act, in                   Flowers/IC 9000–0057, Evaluation of
                                                                                                                                                            collection of information is accurate,
                                              the Commission’s privacy policy, at                     Export Offers.
                                                                                                                                                            and based on valid assumptions and
                                              http://www.ftc.gov/ftc/privacy.htm.                        Instructions: Please submit comments
                                                                                                                                                            methodology; ways to enhance the
                                                By direction of the Commission.                       only and cite Information Collection
                                                                                                                                                            quality, utility, and clarity of the
                                              Donald S. Clark,                                        ‘‘Information Collection 9000–0057,
                                                                                                                                                            information to be collected; and ways in
                                                                                                      Evaluation of Export Offers’’ in all
                                              Secretary.                                                                                                    which we can minimize the burden of
                                                                                                      correspondence related to this
                                              [FR Doc. 2015–27194 Filed 10–26–15; 8:45 am]                                                                  the collection of information on those
                                                                                                      collection. Comments received generally
                                              BILLING CODE 6750–01–P                                                                                        who are to respond, through the use of
                                                                                                      will be posted without change to
                                                                                                                                                            appropriate technological collection
                                                                                                      http://www.regulations.gov, including
                                                                                                                                                            techniques or other forms of information
                                                                                                      any personal and/or business
                                              DEPARTMENT OF DEFENSE                                                                                         technology.
                                                                                                      confidential information provided. To                    Obtaining Copies of Proposals:
                                                                                                      confirm receipt of your comment(s),                   Requesters may obtain a copy of the
                                              GENERAL SERVICES                                        please check www.regulations.gov,
                                              ADMINISTRATION                                                                                                information collection documents from
                                                                                                      approximately two to three days after                 the General Services Administration,
                                                                                                      submission to verify posting (except                  Regulatory Secretariat Division (MVCB),
                                              NATIONAL AERONAUTICS AND                                allow 30 days for posting of comments
                                              SPACE ADMINISTRATION                                                                                          1800 F Street NW., Washington, DC
                                                                                                      submitted by mail).                                   20405, telephone 202–501–4755.
                                              [OMB Control No. 9000–0057; Docket 2015–                FOR FURTHER INFORMATION CONTACT: Mr.                     Please cite OMB Control Number
                                              0055; Sequence 24]                                      Curtis E. Glover, Sr., Procurement                    ‘‘9000–0057, Evaluation of Export
                                                                                                      Analyst, Office of Governmentwide                     Offers’’ in all correspondence.
                                              Information Collection; Evaluation of
                                                                                                      Acquisition Policy, GSA, 202–501–4082
                                              Export Offers                                                                                                 Edward Loeb,
                                                                                                      or via email at Curtis.glover@gsa.gov.
                                              AGENCY:  Department of Defense (DOD),                   SUPPLEMENTARY INFORMATION:
                                                                                                                                                            Acting Director, Federal Acquisition Policy
                                              General Services Administration (GSA),                                                                        Division, Office of Governmentwide
                                                                                                      A. Purpose                                            Acquisition Policy, Office of Acquisition
                                              and National Aeronautics and Space                                                                            Policy, Office of Governmentwide Policy.
                                              Administration (NASA).                                    Offers submitted in response to
                                                                                                                                                            [FR Doc. 2015–27243 Filed 10–26–15; 8:45 am]
                                              ACTION: Notice of request for public                    Government solicitations must be
                                                                                                                                                            BILLING CODE 6820–EP–P
                                              comments regarding an extension to an                   evaluated and awards made on the basis
                                              existing OMB clearance.                                 of the lowest laid down cost to the
                                                                                                      Government at the overseas port of
                                              SUMMARY:   Under the provisions of the                  discharge, via methods and ports                      DEPARTMENT OF HEALTH AND
                                              Paperwork Reduction Act, the                            compatible with required delivery dates               HUMAN SERVICES
                                              Regulatory Secretariat Division will be                 and conditions affecting transportation
                                              submitting to the Office of Management                                                                        Centers for Disease Control and
                                                                                                      know at the time of evaluation. FAR
                                              and Budget (OMB) a request to review                                                                          Prevention
                                                                                                      provision 52.247–51, ‘‘Evaluation of
                                              and approve an extension of a                           Export Offers,’’ is required for insertion            [60Day–16–16BM; Docket No. CDC–2015–
                                              previously approved information                         in Government solicitations when                      0091]
                                              collection requirement concerning                       supplies are to be exported through
                                              ‘‘Information Collection 9000–0057,                     Contiguous United States (CONUS)                      Proposed Data Collection Submitted
                                              Evaluation of Export Offers.’’                          ports and offers are solicited on a free              for Public Comment and
                                              DATES: Submit comments on or before                     onboard (f.o.b.) origin or f.o.b.                     Recommendations
                                              December 28, 2015.                                      destination basis. The provision has                  AGENCY: Centers for Disease Control and
                                              ADDRESSES: Submit comments                              three alternates, to be used (1) when the             Prevention (CDC), Department of Health
                                              identified by Information Collection                    CONUS ports of export are DoD water                   and Human Services (HHS).
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                                              9000–0057, Evaluation of Export Offers,                 terminals, (2) when offers are solicited              ACTION: Notice with comment period.
                                              by any of the following methods:                        on an f.o.b. origin only basis, and (3)
                                                 • Regulations.gov: http://                           when offers are solicited on an f.o.b.                SUMMARY:   The Centers for Disease
                                              www.regulations.gov. Submit comments                    destination only basis. The provision                 Control and Prevention (CDC), as part of
                                              via the Federal eRulemaking portal by                   collects information regarding the                    its continuing efforts to reduce public
                                              inputting ‘‘Information Collection 9000–                vendor’s preference for delivery ports.               burden and maximize the utility of
                                              0057, Evaluation of Export Offers’’                     The information is used to evaluate                   government information, invites the


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Document Created: 2015-12-14 15:36:42
Document Modified: 2015-12-14 15:36:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments on the proposed information requests must be received on or before December 28, 2015.
ContactRequests for additional information
FR Citation80 FR 65758 

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