81 FR 23219 - Rules and Regulations Under the Hobby Protection Act

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 76 (April 20, 2016)

Page Range		23219-23223
FR Document		2016-09103

As part of its regular review of all its rules and guides, and in response to Congressional amendments to the Hobby Protection Act (``Hobby Act'' or ``Act''), the Federal Trade Commission (``Commission'') proposes to amend its Rules and Regulations Under the Hobby Protection Act (``Rules''), and seeks comment on its proposals.

Federal Register, Volume 81 Issue 76 (Wednesday, April 20, 2016)

[Federal Register Volume 81, Number 76 (Wednesday, April 20, 2016)]
[Proposed Rules]
[Pages 23219-23223]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-09103]

[[Page 23219]]

=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

16 CFR Part 304

RIN 3084-AB34

Rules and Regulations Under the Hobby Protection Act

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking; request for public comments.

-----------------------------------------------------------------------

SUMMARY: As part of its regular review of all its rules and guides, and
in response to Congressional amendments to the Hobby Protection Act
(``Hobby Act'' or ``Act''), the Federal Trade Commission
(``Commission'') proposes to amend its Rules and Regulations Under the
Hobby Protection Act (``Rules''), and seeks comment on its proposals.

DATES: Comments must be received on or before July 1, 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 ``Hobby Protection Rules
Review'' on your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/hobbyprotectionrules 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 B), 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
B), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Joshua S. Millard, (202) 326-2454,
Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Ave. NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Introduction

This Notice of Proposed Rulemaking (``NPRM'') summarizes the Hobby
Act, the Rules, and the recent amendments to the Hobby Act. It also
summarizes the comments the Commission received in response to its 2014
request for comment and explains why the Commission proposes
amendments. Additionally, it poses questions soliciting further
comment. It asks, in particular, whether the proposed amendments
appropriately implement Congressional changes to the Act, and what
regulatory burden the proposed amendments may impose. Finally, the NPRM
sets forth the Commission's regulatory analyses under the Regulatory
Flexibility and Paperwork Reduction Acts, as well as the text of the
proposed amendments.

II. Background

On November 29, 1973, President Nixon signed the Hobby Protection
Act, 15 U.S.C. 2101-2106. The Hobby Act requires manufacturers and
importers of ``imitation political items'' \1\ to ``plainly and
permanently'' mark them with the ``calendar year'' the items were
manufactured. Id. 2101(a). The Hobby Act also requires manufacturers
and importers of ``imitation numismatic items'' \2\ to ``plainly and
permanently'' mark these items with the word ``copy.'' Id. 2101(b). The
Hobby Act further directed the Commission to promulgate regulations for
determining the ``manner and form'' that imitation political items and
imitation numismatic items are to be permanently marked with the
calendar year of manufacture or the word ``copy.'' Id. 2101(c).
---------------------------------------------------------------------------

\1\ An imitation political item is ``an item which purports to
be, but in fact is not, an original political item, or which is a
reproduction, copy, or counterfeit of an original political item.''
15 U.S.C. 2106(2). The Hobby Act defines original political items as
being any political button, poster, literature, sticker or any
advertisement produced for use in any political cause. Id. 2106(1).
\2\ An imitation numismatic item is ``an item which purports to
be, but in fact is not, an original numismatic item or which is a
reproduction, copy, or counterfeit of an original numismatic item.''
15 U.S.C. 2106(4). The Hobby Act defines original numismatic items
to include coins, tokens, paper money, and commemorative medals
which have been part of a coinage or issue used in exchange or used
to commemorate a person or event. Id. Sec. 2106(3).
---------------------------------------------------------------------------

In 1975, the Commission issued Rules and Regulations Under the
Hobby Protection Act, 16 CFR part 304.\3\ The Rules track the
definitions used in the Hobby Act and implement that Act's ``plain and
permanent'' marking requirements by establishing where the item should
be marked, the sizes and dimensions of the letters and numerals to be
used, and how to mark incusable and nonincusable items.\4\ In 1988, the
Commission amended the Rules to provide additional guidance on the
minimum size of letters for the word ``copy'' as a proportion of the
diameter of coin reproductions.\5\ 53 FR 38942 (Oct. 4, 1988).
---------------------------------------------------------------------------

\3\ 40 FR 5459 (Feb. 6, 1975).
\4\ Incusable items are items that can be impressed with a
stamp.
\5\ Before this amendment, if a coin were too small to comply
with the minimum letter size requirements, the manufacturer or
importer had to request a variance from those requirements from the
Commission. Because imitation miniature coins were becoming more
common, the Commission determined that it was in the public interest
to allow the word ``copy'' to appear on miniature imitation coins in
sizes that could be reduced proportionately with the size of the
item.
---------------------------------------------------------------------------

The Commission reviewed the Rules in 2004. That review yielded many
comments proposing that the Commission expand coverage to products
beyond the scope of the Hobby Act and address problems involving the
selling (or passing off) as originals of reproductions of antiques and
other items not covered by the Act. However, the Commission retained
the Rules without change, noting that it did not have authority under
the Hobby Act to expand the Rules as requested. 69 FR 9943 (Mar. 3,
2004).
In 2014, the Commission again requested public comment on the
Rules' costs, benefits, and overall impact.\6\ That comment period
closed on September 22, 2014.
---------------------------------------------------------------------------

\6\ 79 FR 40691 (July 14, 2014).
---------------------------------------------------------------------------

On December 19, 2014, President Obama signed into law H.R. 2754,
the Collectible Coin Protection Act (``CCPA''), a short set of
amendments to the Hobby Act. The CCPA amends the Act's scope to address
not only the distribution by manufacturers and importers of imitation
numismatic items, but also ``the sale in commerce'' of such items.
CCPA, Public Law 113-288, Sec. 2(1)(A) (2014). Additionally, the CCPA
makes it a violation of the Hobby Act ``for a person to provide
substantial assistance or support to any manufacturer, importer, or
seller if that person knows or should have known that the manufacturer,
importer, or seller is engaged in any act or practice'' violating the
marking requirements of the Act. Public Law 113-288, Sec. 2(1)(B).\7\
---------------------------------------------------------------------------

\7\ The CCPA also amends the Hobby Act to expand the permissible
venue (i.e., location) for private actions seeking injunctions or
damages for violations of the Hobby Act. Previously, a proper venue
was ``any United States District Court for a district in which the
defendant resides or has an agent.'' Proper venue now extends to any
U.S. District Court for a district in which the defendant transacts
business, or wherever venue is proper under 28 U.S.C. 1391. Public
Law 113-288, Sec. 2(2)(A)-(B). Further, the CCPA amends the Hobby
Act to state that in cases of violations of the Act involving
unauthorized use of a trademark of a collectible certification
service, the owners of such trademarks also have rights provided
under the Trademark Act of 1946, 15 U.S.C. 1116 et seq. Public Law
113-288, Sec. 2(2)(C).
---------------------------------------------------------------------------

III. Summary of Comments and Analysis

The Commission received six comments in response to its 2014
FRN.\8\

[[Page 23220]]

Members of the general public submitted four comments; a self-
identified professional coin and paper money dealer offered a comment;
and an attorney with asserted experience pertaining to coins and other
collectibles submitted a comment in his personal capacity. As discussed
below, commenters who addressed the issue agreed that the Commission
should retain the Rules. Some suggested modifying the Rules to expand
their scope or to clarify their applicability to certain kinds of
collectible coins.
---------------------------------------------------------------------------

\8\ The comments are available on the Commission's Web site at
http://www.ftc.gov/policy/public-comments/initiative-577. By
comparison, the Commission received 350 comments in its 2004
regulatory review of the Rules, but the vast majority of those were
form letters from individual collectors. 69 FR at 9943.
---------------------------------------------------------------------------

A. Support for the Rules

All of the commenters who addressed the issue supported the Rules;
none advocated rescinding them. For example, one commenter stated,
``there [is] a continuing need for the Rules as currently promulgated
because . . . they do protect consumers.'' \9\ Another described the
Act as ``a boon to collectors of legitimate numismatic and political
items,'' and stated: ``Over the years the presence of the law and
supporting regulations has provided guidance for makers of replicas.''
\10\ A dealer stated that the Act ``is a brilliant effort to help
protect the consumer from fraud, and . . . is well thought of across
all [l]egitimate [d]ealers.'' \11\
---------------------------------------------------------------------------

\9\ Comment of Luke Burgess, available at http://www.ftc.gov/policy/public-comments/2014/09/09/comment-00008.
\10\ Comment of Roger Burdette, available at http://www.ftc.gov/policy/public-comments/2014/09/09/comment-00007; see also Comment of
Kenneth Tireman of NC Coppers, available at http://www.ftc.gov/policy/public-comments/2014/07/30/comment-00004.
\11\ Comment of Kenneth Tireman, supra.
---------------------------------------------------------------------------

B. Suggested Rules Modifications

Some commenters suggested modifications to the Rules. In
particular, several commenters suggested modifications to address
``fantasy coins,'' government-issued coins altered by non-governmental
entities to bear historically impossible dates or other features
marketed as novelties.\12\ Commenters variously suggested that the
Commission require manufacturers of fantasy coins to stamp such items
with a ``FANTASY'' mark,\13\ expressly permit the sale of such items
without an identifying mark,\14\ or ban such items altogether.\15\
Several commenters also reported an increase in imports of unmarked
replica coins from Asia, and urged that the Rules cover such sales.\16\
One commenter specifically suggested expanding the Rules' scope to
incorporate the provisions of the CCPA before Congress adopted it and
sent it to the President for his signature.\17\
---------------------------------------------------------------------------

\12\ See Comment of Luke Burgess, supra (offering example of
Roosevelt dime altered to read ``1945,'' noting that Roosevelt dime
was not introduced until 1946, and noting that such coins are not
intended to be used as currency).
\13\ See id.
\14\ See Comment of Daniel Carr, available at http://www.ftc.gov/policy/public-comments/2014/09/17/comment-00010; Comment
of Armen Vartian, available at http://www.ftc.gov/policy/public-comments/2014/09/19/comment-00011.
\15\ See Comment of Luke Burgess, supra.
\16\ See, e.g., Comments of Daniel Carr, Roger Burdette, supra.
\17\ See Comment of Armen Vartian, supra.
---------------------------------------------------------------------------

C. Analysis

In light of the record, the Commission concludes there is a
continuing need for the Rules, and the costs they impose on businesses
are reasonable. Commenters who addressed the subject supported the
Rules, and no dealer or business expressed the view that the Rules
should be rescinded or revised to reduce costs. Moreover, Congress'
recent expansion of the Hobby Act's scope (addressing, among others,
persons who substantially assist or support manufacturers, importers,
or sellers that violate the Act's marking requirements) also appears to
evince Congressional sentiment that the Rules have not imposed undue
costs upon businesses or the public. Hence, both the record and recent
Congressional action support retaining the Rules.
The Commission recognizes, however, that amendments to the Rules
are necessary to bring them into harmony with the amended Hobby Act.
The Commission proposes to align its Rules with the Hobby Act by: (1)
Extending the Rules' scope to cover persons or entities engaged in
``the sale in commerce'' of imitation numismatic items; and (2) stating
that persons or entities violate the Rules if they provide substantial
assistance or support to any manufacturer, importer, or seller of
imitation numismatic items, or any manufacturer or importer of
imitation political items, when they know, or should have known, that
such person is engaged in any act or practice violating the marking
requirements set forth in the Hobby Act and the Rules. The Commission
solicits comment on the proposed amendments and the regulatory burden
they may impose on businesses.
However, the Commission does not propose amending its Rules to
incorporate the CCPA's provisions regarding the proper location for
lawsuits or the protection of the trademark rights of collectible
certification services, summarized supra note 6, as the existing Rules
do not address, relate to, or conflict with those provisions.
Additionally, it is not necessary to modify the Rules to address
specific collectible items, such as ``fantasy coins,'' as some
commenters suggested. The Commission can address specific numismatic
items as the need arises. Notably, the Commission has already addressed
whether coins resembling government-issued coins with date variations
are subject to the Rules. In re Gold Bullion Int'l, Ltd., 92 F.T.C. 196
(1978). It concluded that such coins should be marked as a ``COPY''
because otherwise they could be mistaken for an original numismatic
item. See id. at 223 (``[M]inor variations in dates between an original
and its alleged `copy' are insufficient to deprive the latter of its
status as a `reproduction, copy or counterfeit of an `or[i]ginal
numismatic item' and do not eliminate the requirement that the latter
be marked with the word `Copy'.'').\18\
---------------------------------------------------------------------------

\18\ See also 92 F.T.C. at 217-18 (providing further guidance on
scope of Act, defining Act's reference to ``coinage or issue which
has been used in exchange'' to mean coins that have been ``actively
traded in the marketplace and used as a means of payment'')
(ellipsis omitted).
---------------------------------------------------------------------------

Lastly, the Commission does not propose modifying the Rules to ban
the sale of fantasy coins outright. Sales of properly-marked fantasy
coins are lawful under the Commission's decision in In re Gold Bullion
discussed above, which held that vendors could sell coins with date
variations so long as the coins are marked with the word `Copy.' '' 92
F.T.C. at 223. By contrast, the federal statute prohibiting the
alteration of U.S. coins requires fraudulent intent. 18 U.S.C. 331.
Accordingly, the Commission finds no grounds to adopt a rule banning
fantasy coins.

IV. Proposed Amendments

As the CCPA's amendments appear to require conforming changes, the
Commission proposes modifying the Rules' ``Applicability'' section, set
forth at 16 CFR 304.3. The specific text of these proposed
modifications is set forth at the end of this NPRM.

V. Request for Comment

The Commission solicits comment on the following specific
questions:
(A) What costs or burdens would the proposed Rules amendments
impose and on whom? How many retailers, manufacturers, and importers
are subject to the Rules? The Commission in particular seeks
information on any burden each amendment would impose on small
businesses and entities. How many small entities are affected by the

[[Page 23221]]

Rules, what are their annual revenues, and what is their size in terms
of number of employees?
(B) What evidence supports your answers?

VI. Paperwork Reduction Act

The proposed amendments to the Rules do not constitute a
``collection of information'' under the Paperwork Reduction Act, 44
U.S.C. 3501-3521 (``PRA''). The amendments are proposed to incorporate
changes made to the Hobby Act pursuant to the enactment of the CCPA
after the Commission last requested public comment on the Rules. Prior
to those changes, the Hobby Act already required manufacturers and
importers of imitation political items and imitation numismatic items
to mark such replica items (with the calendar year of manufacture or
the word, ``copy,'' respectively) so they may be identified as
replicas. The disclosure requirement under the existing Rules and the
proposed amendments are not a PRA ``collection of information'' for
which ``burden'' is evaluated and estimated as they specify the wording
for proper disclosure (here, the word ``copy''). See 5 CFR 1320.3(c)(2)
(``The public disclosure of language of information originally supplied
by the Federal government to the recipient for the purpose of
disclosure to the public is not included within [the definition of a
`collection of information.']''). Moreover, extending this disclosure
requirement to sellers of imitation numismatic items should not
increase the burden of compliance to the extent they are selling items
previously marked in compliance with the Hobby Act by manufacturers or
importers. The amendments do not impose any new burden upon
manufacturers and importers who produce replica items covered by the
Hobby Act and Rules. Nor do the proposed amendments to the Rules impose
any burden beyond that imposed by the enactment of the CCPA's changes
to the Hobby Act.

VII. Regulatory Flexibility Act

The Regulatory Flexibility Act, 5 U.S.C. 601-612, requires an
agency to provide an Initial Regulatory Flexibility Analysis with a
proposed rule unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
See 5 U.S.C. 603-605.
FTC staff estimates that approximately 5,000 retailers,
manufacturers, and importers of imitation numismatic items are subject
to the Rules.\19\ FTC staff further estimates that there are fewer
manufacturers and importers of imitation political items, from 500 to
2,500.\20\ These are general estimates, and recognizing them as such,
the Commission invites public input regarding how many retailers,
manufacturers, and importers are subject to the Rules. Commission staff
understands from a prominent political memorabilia membership
organization, the American Political Items Collectors, that a
disclosure that an item is an imitation is built into the manufacturing
process. Entities compliant with the Rules mark replica coins with
``COPY,'' and replica political items with the date of manufacture,
when those items are made. The entities subject to these burdens will
be classified as small businesses if they satisfy the Small Business
Administration's relevant size standards, as determined by the Small
Business Size Standards component of the North American Industry
Classification System (``NAICS'').\21\ Potentially relevant NAICS size
standards, which are either minimum annual receipts or number of
employees, are as follows:
---------------------------------------------------------------------------

\19\ This estimate rests on an industry publication's assessment
of the general rare coin industry; comparable statistics are not as
readily available regarding the size of the imitation numismatic
item industry, which offers and sells replicas of rare and other
coins. See generally Numismatic Guaranty Corp., ``Coin Collecting:
How Large is the Rare Coin Market?,'' Coin Week (Dec. 19, 2013),
http://www.coinweek.com/education/coin-collecting-large-rare-coin-market.
\20\ This estimate reflects FTC staff's assessment that the
political memorabilia industry is comparatively smaller than that
for coins, with fewer public membership or trade organizations.
\21\ The standards are available at http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.

------------------------------------------------------------------------
NAICS Industry title Small business size standard
------------------------------------------------------------------------
Sign Manufacturing.................. 500 employees.
Fastener, Button, Needle and Pin 500 employees.
Manufacturing.
Miscellaneous Manufacturing......... 500 employees.
Miscellaneous Fabricated Metal 750 employees.
Product Manufacturing.
Rubber Product Manufacturing........ 500 employees.
Miscellaneous Wood Product 500 employees.
Manufacturing.
Leather Good and Allied Product 500 employees.
Manufacturing.
Commercial Printing................. 500 employees.
Miscellaneous Durable Goods Merchant 100 employees.
Wholesalers.
Book, Periodical, and Newspaper 100 employees.
Merchant Wholesalers.
Toy and Hobby Goods and Supplies 100 employees.
Merchant Wholesalers.
Hobby, Toy and Game Stores.......... $27.5 million.
Souvenir Stores..................... $7.5 million.
Political Organizations............. $7.5 million.
Electronic Shopping................. $32.5 million.
Electronic Auctions................. $38.5 million.
Mail-Order Houses................... $38.5 million.
------------------------------------------------------------------------

[[Page 23222]]

The Commission is unable to conclude how many of the above-listed
entities qualify as small businesses. The record in this proceeding
does not contain information regarding the size of the entities subject
to the Rules. Moreover, the relevant NAICS categories include many
entities that do not engage in activities covered by the Rules.
Therefore, estimates of the percentage of small businesses in those
categories would not necessarily reflect the percentage of small
businesses subject to the Rules in those categories. Accordingly, the
Commission invites comments regarding the number of entities in each
NAICS category that are subject to the Rules, and revenue and employee
data for those entities.
Even absent this data, however, the Commission does not expect that
the proposed amendments will have a significant economic impact on
small entities. As discussed above in Section VI, the amendments do not
impose any new costs upon persons or entities engaged in commerce
concerning items that comply with the marking requirements of the Hobby
Act and Rules. This document serves as notice to the Small Business
Administration of the agency's certification of no effect. Nonetheless,
to ensure that the economic impact of the proposed amendments on small
entities is fully addressed, Commission staff have prepared the
following initial regulatory flexibility analysis.
(1) A description of the reasons why action by the agency is being
considered.
As explained above, the proposed amendment is intended to harmonize
the Rules with the Hobby Act, as amended by the CCPA.
(2) A succinct statement of the objectives of, and legal basis for,
the proposed rule.
See above. The proposed amendment, to 16 CFR 304.3, would extend
the Rules' coverage to persons engaged in the sale in commerce of
imitation numismatic items, and persons or entities that provide
substantial assistance or support to any manufacturer, importer, or
seller of covered items under certain circumstances. The legal basis
for this amendment is the CCPA, which expanded the scope of the Hobby
Act.
(3) A description of and, where feasible, an estimate of the number
of small entities to which the proposed rule will apply.
As noted earlier, staff estimates that approximately 5,000
retailers, manufacturers, and importers of imitation numismatic items
are subject to the Rules, and from 500 to 2,500 manufacturers and
importers of imitation political items are subject to the Rules.
Commission staff seek further comments and data on this general
estimate.
(4) A description of the projected reporting, recordkeeping and
other compliance requirements of the proposed rule, including an
estimate of the classes of small entities which will be subject to the
requirement and the type of professional skills necessary for
preparation of the report or record.
The Rules impose a disclosure (marking) burden, currently estimated
at 5 hours annually. The proposed amendment is not expected to increase
this burden on any person or entity subject to and in compliance with
the Rules. The additional burden imposed by the proposed amendment, if
it is adopted, will result solely from the expanded scope of the Rules
to cover certain additional persons and entities, consistent with Hobby
Act, as amended. As noted earlier, the disclosure burden imposed by the
Rules is normally addressed in the manufacturing process, which
requires graphic or other design skills for the die, cast, mold or
other process used to manufacture the item. Commission staff invite
further comment, if any, on these issues.
(5) An identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap or conflict with the
proposed rule.
Although the Hobby Act expressly does not preempt other Federal or
state law, see 15 U.S.C. 2105, Commission staff is not aware of any
other relevant Federal rules that duplicate, overlap, or conflict with
the Rules or the proposed amendments to the Rules. See 16 CFR 340.4
(noting that the Rules do not substitute for or limit other statutes
and laws that, inter alia, prohibit the reproduction of genuine
currency, i.e., counterfeiting). Commission staff invite further
comment or information, if any, on this issue.
(6) Any significant alternatives to the proposed rule, to the
extent they would accomplish the stated objectives of applicable
statutes and minimize any significant economic impact of the proposed
rule on small entities, such as different compliance or reporting
requirements or timetables for small entities, clarification,
consolidation, or simplification of such requirements, or the use of
performance rather than design standards, or a small entity exemption.
Commission staff have not identified any significant alternatives
that would accomplish the statute's objectives while minimizing any
significant economic impact on small entities. The proposed amendment,
as explained earlier, is intended to bring the scope of the Rules in
line with the scope of the Hobby Act, as amended by the CCPA. Neither
the Act nor the Rules exempt small entities, or impose lesser or
different requirements on such entities. Such exemptions or alternative
requirements would undermine the purpose and effect of the Act and the
Rules, to the extent that Congress has determined by law that covered
items, regardless of the size of the entity that manufactures, imports
or sells them, require markings (i.e., disclosures) under certain
circumstances for the protection of consumers who may purchase such
items. Commission staff seek public comment on whether the proposed
amendment is sufficiently clear, simple, and concise to communicate the
expanded scope of and potential liability under the Rules for covered
persons and entities, including the consistency of the proposed
amendment with the Hobby Act, as amended by the CCPA.

VIII. Communications by Outside Parties to the Commissioners or Their
Advisors

Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding from any
outside party to any Commissioner or Commissioner's advisor will be
placed on the public record. See 16 CFR 1.26(b)(5).

IX. Instructions for Submitting Comments

You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before July 1, 2016.
Write ``Hobby Protection Rules Review'' on the 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 does not 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

[[Page 23223]]

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). In particular, the written request for
confidential treatment that accompanies the comment must include the
factual and legal basis for the request, and must identify the specific
portions of the comments to be withheld from the public record. Your
comment will be kept confidential only if the FTC General Counsel, in
his or her sole discretion, 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 comment online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/hobbyprotectionrules, 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 ``Hobby Protection Rules
Review'' 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 B), Washington, DC
20580. If possible, submit your paper comment to the Commission by
courier, or overnight service. If you prefer to deliver your comment,
deliver it to the following address: Federal Trade Commission, Office
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor,
Suite 5610 (Annex B), Washington, DC 20024.
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 responsive public comments that it
receives on or before July 1, 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.

X. Proposed Rule Language

List of Subjects in 16 CFR 304

Hobbies, Labeling, Trade practices.

For the reasons set forth in the preamble, the Federal Trade
Commission proposes to amend 16 CFR part 304 as follows:

PART 304--RULES AND REGULATIONS UNDER THE HOBBY PROTECTION ACT

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

Authority: 15 U.S.C. 2101 et seq.

0
2. Amend Sec. 304.3 to read as follows:

Sec. 304.3 Applicability.

Any person engaged in the manufacturing, or importation into the
United States for introduction into or distribution in commerce, of
imitation political or imitation numismatic items shall be subject to
the requirements of the Act and the regulations promulgated thereunder.
Any person engaged in the sale in commerce of imitation numismatic
items shall be subject to the requirements of the Act and the
regulations promulgated thereunder. It shall be a violation of the Act
and the regulations promulgated thereunder for a person to provide
substantial assistance or support to any manufacturer, importer, or
seller of imitation numismatic items, or to any manufacturer or
importer of imitation political items, if that person knows or should
have known that the manufacturer, importer, or seller is engaged in any
practice that violates the Act and the regulations promulgated
thereunder.

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-09103 Filed 4-19-16; 8:45 am]
BILLING CODE 6750-01-P

Federal Register / Vol. 81, No. 76 / Wednesday, April 20, 2016 / Proposed Rules 23223

for making sure that your comment does FTC Act and other laws that the DEPARTMENT OF HOMELAND
not include any sensitive health Commission administers permit the SECURITY
information, such as medical records or collection of public comments to
other individually identifiable health consider and use in this proceeding as Coast Guard
information. appropriate. The Commission will
In addition, do not include any consider all responsive public 33 CFR Part 100
‘‘[t]rade secret or any commercial or comments that it receives on or before [Docket Number USCG–2016–0276]
financial information which is . . . July 1, 2016. For information on the
privileged or confidential,’’ as discussed RIN 1625–AA08
Commission’s privacy policy, including
in Section 6(f) of the FTC Act, 15 U.S.C.
routine uses permitted by the Privacy Special Local Regulation; Lake of the
46(f), and FTC Rule 4.10(a)(2), 16 CFR
4.10(a)(2). In particular, do not include Act, see http://www.ftc.gov/ftc/ Ozarks, Lakeside, MO
competitively sensitive information privacy.htm.
AGENCY: Coast Guard, DHS.
such as costs, sales statistics, X. Proposed Rule Language
inventories, formulas, patterns, devices, ACTION: Notice of proposed rulemaking.
manufacturing processes, or customer List of Subjects in 16 CFR 304 SUMMARY: The Coast Guard proposes to
names. establish a special local regulation for
If you want the Commission to give Hobbies, Labeling, Trade practices.
certain waters of the Lake of the Ozarks.
your comment confidential treatment, For the reasons set forth in the This action is necessary to provide for
you must file it in paper form, with a preamble, the Federal Trade the safety of life on these navigable
request for confidential treatment, and Commission proposes to amend 16 CFR waters near Lakeside, MO, during a
you must follow the procedure part 304 as follows: powerboat race on June 4, 2016. This
explained in FTC Rule 4.9(c), 16 CFR proposed rulemaking would designate
4.9(c). In particular, the written request PART 304—RULES AND prohibited areas for the race course and
for confidential treatment that REGULATIONS UNDER THE HOBBY associated safety buffer, spectator areas,
accompanies the comment must include PROTECTION ACT and location for vessels to transit during
the factual and legal basis for the the race at no wake speeds. Deviation
request, and must identify the specific
■ 1. The authority citation for this part from the established special local
portions of the comments to be withheld
continues to read as follows: regulation must be authorized by the
from the public record. Your comment
Authority: 15 U.S.C. 2101 et seq.
Captain of the Port Upper Mississippi
will be kept confidential only if the FTC
River or a designated representative. We
General Counsel, in his or her sole
■ 2. Amend § 304.3 to read as follows: invite your comments on this proposed
discretion, grants your request in
rulemaking.
accordance with the law and the public § 304.3 Applicability.
interest. DATES: Comments and related material
Postal mail addressed to the Any person engaged in the must be received by the Coast Guard on
Commission is subject to delay due to manufacturing, or importation into the or before May 5, 2016.
heightened security screening. As a United States for introduction into or ADDRESSES: You may submit comments
result, we encourage you to submit your distribution in commerce, of imitation identified by docket number USCG–
comment online. To make sure that the political or imitation numismatic items 2016–0276 using the Federal
Commission considers your online shall be subject to the requirements of eRulemaking Portal at http://
comment, you must file it at https:// the Act and the regulations promulgated www.regulations.gov. See the ‘‘Public
ftcpublic.commentworks.com/ftc/ thereunder. Any person engaged in the Participation and Request for
hobbyprotectionrules, by following the sale in commerce of imitation Comments’’ portion of the
instructions on the web-based form. If numismatic items shall be subject to the SUPPLEMENTARY INFORMATION section for
this Notice appears at http:// requirements of the Act and the further instructions on submitting
www.regulations.gov/#!home, you also comments.
regulations promulgated thereunder. It
may file a comment through that Web
shall be a violation of the Act and the FOR FURTHER INFORMATION CONTACT: If
site.
regulations promulgated thereunder for you have questions about this proposed
If you file your comment on paper,
a person to provide substantial rulemaking, call or email LCDR Sean
write ‘‘Hobby Protection Rules Review’’
assistance or support to any Peterson, Chief of Prevention, U.S. Coast
on your comment and on the envelope,
manufacturer, importer, or seller of Guard; telephone 314–269–2332, email
and mail it to the following address:
imitation numismatic items, or to any Sean.M.Peterson@uscg.mil.
Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue manufacturer or importer of imitation SUPPLEMENTARY INFORMATION:
NW., Suite CC–5610 (Annex B), political items, if that person knows or I. Table of Abbreviations
Washington, DC 20580. If possible, should have known that the
submit your paper comment to the manufacturer, importer, or seller is CFR Code of Federal Regulations
COTP Captain of the Port
Commission by courier, or overnight engaged in any practice that violates the DHS Department of Homeland Security
service. If you prefer to deliver your Act and the regulations promulgated FR Federal Register
comment, deliver it to the following thereunder. NPRM Notice of proposed rulemaking
Lhorne on DSK5TPTVN1PROD with PROPOSALS

address: Federal Trade Commission, By direction of the Commission. § Section
Office of the Secretary, Constitution U.S.C. United States Code
Center, 400 7th Street SW., 5th Floor, Donald S. Clark,
Secretary. II. Background, Purpose, and Legal
Suite 5610 (Annex B), Washington, DC
Basis
20024. [FR Doc. 2016–09103 Filed 4–19–16; 8:45 am]
Visit the Commission Web site at BILLING CODE 6750–01–P On March 16, 2016, the Lake Race
http://www.ftc.gov to read this Notice Steering Committee notified the Coast
and the news release describing it. The Guard that it will be hosting a

VerDate Sep<11>2014 14:51 Apr 19, 2016 Jkt 238001 PO 00000 Frm 00036 Fmt 4702 Sfmt 4702 E:\FR\FM\20APP1.SGM 20APP1

Document Created: 2016-04-20 01:51:27
Document Modified: 2016-04-20 01:51:27

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		Proposed Rules
Action		Notice of proposed rulemaking; request for public comments.
Dates		Comments must be received on or before July 1, 2016.
Contact		Joshua S. Millard, (202) 326-2454, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Ave. NW., Washington, DC 20580.
FR Citation		81 FR 23219
RIN Number		3084-AB34