81 FR 18628 - Agency Information Collection Activities; Proposed Collection; Comment Request

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 62 (March 31, 2016)

Page Range		18628-18629
FR Document		2016-07280

The FTC intends to conduct a survey of consumers to advance its understanding of the prevalence of consumer fraud and to allow the FTC to better serve people who experience fraud. The survey will be a follow-up to three previous surveys, the most recent of which was conducted between November 2011 and February 2012. Before gathering this information, the FTC is seeking public comments on its proposed consumer research. Comments will be considered before the FTC submits a request for the Office of Management and Budget (``OMB'') review under the Paperwork Reduction Act (``PRA'').

Federal Register, Volume 81 Issue 62 (Thursday, March 31, 2016)

[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Pages 18628-18629]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-07280]

[[Page 18628]]

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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 intends to conduct a survey of consumers to advance
its understanding of the prevalence of consumer fraud and to allow the
FTC to better serve people who experience fraud. The survey will be a
follow-up to three previous surveys, the most recent of which was
conducted between November 2011 and February 2012. Before gathering
this information, the FTC is seeking public comments on its proposed
consumer research. Comments will be considered before the FTC submits a
request for the Office of Management and Budget (``OMB'') review under
the Paperwork Reduction Act (``PRA'').

DATES: Comments on the proposed information requests must be received
on or before June 13, 2016.

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: ``Consumer Fraud Survey
2016: Paperwork Comment, FTC File No. P105502'' on your comment and
file the comment online at https://ftcpublic.commentworks.com/ftc/fraudsurvey2016 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 Keith B. Anderson, Economist, Bureau of
Economics, Federal Trade Commission, 600 Pennsylvania Avenue NW., H-
238, Washington, DC 20580, (202) 326-3428.

SUPPLEMENTARY INFORMATION:
Background: As part of its consumer protection mission, the FTC has
brought hundreds of cases targeting perpetrators of consumer fraud and
has committed significant resources to educational initiatives designed
to protect consumers against such frauds. In order to ensure that its
efforts in fighting fraud are as effective as possible, the Commission
would like to make certain that it has current data on the prevalence
of various types of consumer fraud.
The Commission has conducted three previous surveys designed to
estimate the prevalence of consumer fraud among U.S. adults. The most
recent survey was conducted between November 2011 and February 2012. A
report describing the findings of that survey--Consumer Fraud in the
United States, 2011: The Third FTC Survey--was released in April 2013
and can be found at https://www.ftc.gov/sites/default/files/documents/reports/consumer-fraud-united-states-2011-third-ftc-survey/130419fraudsurvey_0.pdf.\1\
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\1\ Each survey was conducted under OMB Control Number 3084-
0125. The first consumer fraud survey was conducted in May and June
of 2003. The results of that survey are reported in ``Consumer Fraud
in the United States: An FTC Survey'' (https://www.ftc.gov/sites/default/files/documents/reports/consumer-fraud-united-states-ftc-survey/040805confraudrpt.pdf). The 2005 survey was conducted in
November and December of 2005 and the findings of that survey are
reported in ``Consumer Fraud in the United States: The Second FTC
Survey,'' (https://www.ftc.gov/sites/default/files/documents/reports/consumer-fraud-united-states-second-federal-trade-commission-survey-staff-report-federal-trade/fraud.pdf).
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The 2011 survey asked about consumers' experiences with 15 specific
and two more general types of fraud during the previous year. Among
frauds covered by the survey were weight-loss products that did not
work as the seller claimed they would; failure to deliver promised
prize or lottery winnings after the consumer made a required purchase,
paid money, or attended a required sales presentation; and buyers' club
memberships that consumers had not agreed to purchase. Based on the
survey results, during 2011, 25.6 million U.S. adults--10.8 percent of
the U.S. adult population--were victims of one or more of the frauds
covered by the survey.
Among the 15 specific frauds included in the survey, the most
frequently reported was the purchase of a weight-loss product that the
seller falsely represented would allow the user to lose a substantial
amount of weight easily or lose the weight without diet or exercise.
The survey results suggested that during 2011 5.1 million consumers--
2.1 percent of the U.S. adult population--had tried such a product and
found that they only lost a little of the weight they had expected to
lose or failed to lose any weight at all.
Because the proposed survey will require obtaining answers from
more than nine individuals, the Commission intends to seek OMB
clearance under the PRA before conducting the survey. 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 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.
Description of the Collection of Information and Proposed Use: The
FTC proposes to conduct a telephone survey of up to 4,100 randomly-
selected consumers nationwide age 18 and over--100 in a pretest and
4,000 in the main survey--in order to gather specific information on
the incidence of consumer fraud in the general population. The proposed
sample size is similar to that used in the previous surveys. Many of
the questions will be similar to the 2005 and 2011 surveys.\2\ As
before, one of the focuses of the survey will be to determine the
prevalence of fraud among certain groups of consumers. These may
include racial minorities, the elderly, members of the military, and
those with low incomes. In order to obtain a more reliable picture of
the experiences of such groups, the survey may oversample members of
some of these groups. All information will be collected on a voluntary
basis, and information on the identities of participants will not be
collected. Subject to OMB approval for the survey, the FTC plans to
contract with a consumer research firm to identify consumers and
conduct the survey. The results will assist the FTC in determining the
incidence of consumer fraud in the general population and whether the
type or

[[Page 18629]]

frequency of consumer frauds is changing. This information will inform
the FTC about how best to combat consumer fraud. The FTC may choose to
conduct another follow-up survey in approximately five years.
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\2\ The survey instrument for the 2011 Consumer Fraud Survey is
included in the 2013 report as Appendix D.
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Estimated Hours Burden: The FTC will pretest the survey on
approximately 100 respondents to ensure that all questions are easily
understood. This pretest will take approximately 17 minutes per person
and 28 hours as a whole (100 respondents x 17 minutes each). Answering
the consumer survey will require approximately 15 minutes per
respondent and 1,000 hours as a whole (4,000 respondents x 15 minutes
each). Thus, cumulative total burden hours for the first year of the
clearance will approximate 1,028 hours.
Estimated Cost Burden: The cost per respondent should be
negligible. Participation is voluntary and will not require start-up,
capital, or labor expenditures by respondents.
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 June 13, 2016. Write ``Consumer Fraud Survey 2016: Paperwork
Comment, FTC File No. P105502'' 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/fraudsurvey2016, by following the instructions on the web-based
form. When 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 ``Consumer Fraud Survey
2016: Paperwork Comment, FTC File No. P105502'' on your comment and on
the envelope, and mail it to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024. If possible, submit your paper comment to the
Commission by courier or overnight service.
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 June 13, 2016.
For information on the Commission's privacy policy, including routine
uses permitted by the Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-07280 Filed 3-30-16; 8:45 am]
BILLING CODE 6750-01-P

18628 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices

FEDERAL TRADE COMMISSION consumers against such frauds. In order than nine individuals, the Commission
to ensure that its efforts in fighting fraud intends to seek OMB clearance under
Agency Information Collection are as effective as possible, the the PRA before conducting the survey.
Activities; Proposed Collection; Commission would like to make certain Under the PRA, 44 U.S.C. 3501–3521,
Comment Request that it has current data on the federal agencies must obtain approval
prevalence of various types of consumer from OMB for each ‘‘collection of
AGENCY: Federal Trade Commission fraud. information’’ they conduct or sponsor if
(‘‘FTC’’ or ‘‘Commission’’). The Commission has conducted three posed to ten or more entities within any
ACTION: Notice. previous surveys designed to estimate twelve-month period. 44 U.S.C. 3502(3);
the prevalence of consumer fraud 5 CFR 1320.3(c). ‘‘Collection of
SUMMARY: The FTC intends to conduct among U.S. adults. The most recent information’’ means agency requests or
a survey of consumers to advance its survey was conducted between requirements that members of the public
understanding of the prevalence of November 2011 and February 2012. A submit reports, keep records, or provide
consumer fraud and to allow the FTC to report describing the findings of that information to a third party. 44 U.S.C.
better serve people who experience survey—Consumer Fraud in the United 3502(3); 5 CFR 1320.3(c). As required by
fraud. The survey will be a follow-up to States, 2011: The Third FTC Survey— section 3506(c)(2)(A) of the PRA, the
three previous surveys, the most recent was released in April 2013 and can be FTC is providing this opportunity for
of which was conducted between found at https://www.ftc.gov/sites/ public comment before requesting that
November 2011 and February 2012. default/files/documents/reports/ OMB authorize the proposed collection
Before gathering this information, the consumer-fraud-united-states-2011- of information.
FTC is seeking public comments on its third-ftc-survey/130419fraudsurvey_ The FTC invites comments on: (1)
proposed consumer research. Comments 0.pdf.1 Whether the study is necessary,
will be considered before the FTC The 2011 survey asked about including whether the information will
submits a request for the Office of consumers’ experiences with 15 specific be practically useful; (2) the accuracy of
Management and Budget (‘‘OMB’’) and two more general types of fraud our burden estimates, including
review under the Paperwork Reduction during the previous year. Among frauds whether the methodology and
Act (‘‘PRA’’). covered by the survey were weight-loss assumptions used are valid; (3) ways to
DATES: Comments on the proposed products that did not work as the seller enhance the quality, utility, and clarity
information requests must be received claimed they would; failure to deliver of the information to be collected; and
on or before June 13, 2016. promised prize or lottery winnings after (4) ways to minimize the burden of the
ADDRESSES: Interested parties may file a the consumer made a required purchase, collection of information.
comment online or on paper, by paid money, or attended a required sales Description of the Collection of
following the instructions in the presentation; and buyers’ club Information and Proposed Use: The FTC
Request for Comment part of the memberships that consumers had not proposes to conduct a telephone survey
SUPPLEMENTARY INFORMATION section agreed to purchase. Based on the survey of up to 4,100 randomly-selected
below. Write: ‘‘Consumer Fraud Survey results, during 2011, 25.6 million U.S. consumers nationwide age 18 and
2016: Paperwork Comment, FTC File adults—10.8 percent of the U.S. adult over—100 in a pretest and 4,000 in the
No. P105502’’ on your comment and file population—were victims of one or main survey—in order to gather specific
the comment online at https:// more of the frauds covered by the information on the incidence of
ftcpublic.commentworks.com/ftc/ survey. consumer fraud in the general
fraudsurvey2016 by following the Among the 15 specific frauds population. The proposed sample size is
instructions on the web-based form. If included in the survey, the most similar to that used in the previous
you prefer to file your comment on frequently reported was the purchase of surveys. Many of the questions will be
paper, mail your comment to the a weight-loss product that the seller similar to the 2005 and 2011 surveys.2
following address: Federal Trade falsely represented would allow the user As before, one of the focuses of the
to lose a substantial amount of weight survey will be to determine the
Commission, Office of the Secretary,
easily or lose the weight without diet or prevalence of fraud among certain
600 Pennsylvania Avenue NW., Suite
exercise. The survey results suggested groups of consumers. These may
CC–5610 (Annex J), Washington, DC
that during 2011 5.1 million include racial minorities, the elderly,
20580, or deliver your comment to the
consumers—2.1 percent of the U.S. members of the military, and those with
following address: Federal Trade
adult population—had tried such a low incomes. In order to obtain a more
Commission, Office of the Secretary,
product and found that they only lost a reliable picture of the experiences of
Constitution Center, 400 7th Street SW.,
little of the weight they had expected to such groups, the survey may oversample
5th Floor Suite 5610 (Annex J),
lose or failed to lose any weight at all. members of some of these groups. All
Washington, DC 20024. Because the proposed survey will
FOR FURTHER INFORMATION CONTACT: information will be collected on a
require obtaining answers from more
Requests for additional information voluntary basis, and information on the
should be addressed to Keith B. 1 Each survey was conducted under OMB Control
identities of participants will not be
Anderson, Economist, Bureau of Number 3084–0125. The first consumer fraud collected. Subject to OMB approval for
Economics, Federal Trade Commission, survey was conducted in May and June of 2003. the survey, the FTC plans to contract
The results of that survey are reported in with a consumer research firm to
600 Pennsylvania Avenue NW., H–238, ‘‘Consumer Fraud in the United States: An FTC
Washington, DC 20580, (202) 326–3428. identify consumers and conduct the
mstockstill on DSK4VPTVN1PROD with NOTICES

Survey’’ (https://www.ftc.gov/sites/default/files/
documents/reports/consumer-fraud-united-states- survey. The results will assist the FTC
SUPPLEMENTARY INFORMATION:
ftc-survey/040805confraudrpt.pdf). The 2005 in determining the incidence of
Background: As part of its consumer survey was conducted in November and December consumer fraud in the general
protection mission, the FTC has brought of 2005 and the findings of that survey are reported
population and whether the type or
hundreds of cases targeting perpetrators in ‘‘Consumer Fraud in the United States: The
Second FTC Survey,’’ (https://www.ftc.gov/sites/
of consumer fraud and has committed default/files/documents/reports/consumer-fraud- 2 The survey instrument for the 2011 Consumer
significant resources to educational united-states-second-federal-trade-commission- Fraud Survey is included in the 2013 report as
initiatives designed to protect survey-staff-report-federal-trade/fraud.pdf). Appendix D.

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Document Created: 2016-03-31 00:55:02
Document Modified: 2016-03-31 00:55:02

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		Comments on the proposed information requests must be received on or before June 13, 2016.
Contact		Requests for additional information
FR Citation		81 FR 18628