81 FR 57910 - Agency Information Collection Activities; Proposed Collection; Comment Request

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 164 (August 24, 2016)

Page Range		57910-57911
FR Document		2016-20356

The information collection requirements described below will be submitted to the Office of Management and Budget (OMB) for review, as required by the Paperwork Reduction Act (PRA). The FTC seeks public comments on its proposal to extend, for three years, the current PRA clearance for information collection requirements contained in its Consumer Product Warranty Rule. That clearance expires on December 31, 2016.

Federal Register, Volume 81 Issue 164 (Wednesday, August 24, 2016)

[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57910-57911]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-20356]

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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 information collection requirements described below will
be submitted to the Office of Management and Budget (OMB) for review,
as required by the Paperwork Reduction Act (PRA). The FTC seeks public
comments on its proposal to extend, for three years, the current PRA
clearance for information collection requirements contained in its
Consumer Product Warranty Rule. That clearance expires on December 31,
2016.

DATES: Comments must be received on or before October 24, 2016.

ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``Warranty Rules:
Paperwork Comment, FTC File No. P044403'' on your comment, and file
your comment online at https://ftcpublic.commentworks.com/ftc/consumerwarrantypra by following the instructions on the web-based
form. If you prefer to file your comment on paper, mail or deliver 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 copies of the collection
of information and supporting documentation should be addressed to Gary
Ivens, Attorney, Division of Marketing Practices, Bureau of Consumer
Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., CC-
8528, Washington, DC 20580, (202) 326-2330.

SUPPLEMENTARY INFORMATION:

Proposed Information Collection Activities

Under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501-3520,
federal agencies must get OMB approval for each collection of
information they conduct, sponsor, or require. ``Collection of
information'' means agency requests or requirements to submit reports,
keep records, or provide information to a third party. 44 U.S.C.
3502(3); 5 CFR 1320.3(c). As required by section 3506(c)(2)(A) of the
PRA, the FTC is providing this opportunity for public comment before
requesting that OMB extend the existing PRA clearance for the
information collection requirements associated with the Commission's
Rule Concerning Disclosure of Written Consumer Product Warranty Terms
and Conditions (the Consumer Product Warranty Rule or Warranty Rule),
16 CFR part 701 (OMB Control Number 3084-0111).
The FTC invites comments on: (1) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on those who
are to respond. All comments must be received on or before October 24,
2016.
The Warranty Rule is one of three rules \1\ that the FTC
implemented pursuant to requirements of the Magnuson-Moss Warranty Act,
15 U.S.C. 2301 et seq. (Warranty Act or Act).\2\ The Warranty Rule
specifies the information that must appear in a written warranty on a
consumer product \3\ costing more than $15. The Rule tracks section
102(a) of the Warranty Act,\4\ specifying information that must appear
in the written warranty and, for certain disclosures, mandates the
exact language that must be used.\5\ Neither the Warranty Rule nor the
Act requires that a manufacturer or retailer warrant a consumer product
in writing, but if they choose to do so, the warranty must comply with
the Rule.
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\1\ The other two rules relate to the pre-sale availability of
warranty terms and minimum standards for informal dispute settlement
mechanisms that are incorporated into a written warranty.
\2\ 40 FR 60168 (Dec. 31, 1975).
\3\ The definition of consumer product excludes products
purchased solely for commercial or industrial use. 16 CFR 701.1(b).
\4\ 15 U.S.C. 2302(a).
\5\ 40 FR 60168, 60169-60170.
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Warranty Rule Burden Statement

Total annual hours burden: 140,280 hours.
In its 2013 submission to OMB, the FTC estimated that the
information collection burden of including the disclosures required by
the Warranty Rule was 116,128 hours per year. Although the Rule's
information collection requirements have not changed, this estimate
slightly increases the number of manufacturers subject to the Rule
based on recent Census data. Further, because most warrantors would
continue to disclose this information even if there were no statute or
rule requiring them to do so, staff's estimates likely overstate the
PRA-related burden attributable to the Rule. Moreover, the Warranty
Rule has been in effect since 1976, and warrantors have long since
modified their warranties to include the information the Rule requires.
Based on conversations with various warrantors' representatives
over the years, staff has concluded that eight hours per year is a
reasonable estimate of warrantors' PRA-related burden attributable to
the Warranty Rule.\6\ This estimate takes into account ensuring that
new warranties and changes to

[[Page 57911]]

existing warranties comply with the Rule. Based on recent Census data,
staff now estimates that there are 17,535 manufacturers covered by the
Rule.\7\ This results in an annual burden estimate of approximately
140,280 hours (17,535 manufacturers x 8 hours of burden per year).
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\6\ FTC staff has previously contacted two manufacturing
associations--the Association of Home Appliance Manufacturers and
the National Association of Manufacturers--and we have not located
additional data that further clarifies this figure.
\7\ Because some manufacturers likely make products that are not
priced above $15 or not intended for household use--and thus would
not be subject to the Rule--this figure is likely an overstatement.
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Total annual labor costs: $19,011,798.
Labor costs are derived by applying appropriate hourly cost figures
to the burden hours described above. The work required to comply with
the Warranty Rule--ensuring that new warranties and changes to existing
warranties comply with the Rule--requires a mix of legal analysis
(50%), legal support (paralegals) (25%) and clerical help (25%). Staff
estimates that half of the total burden hours (70,140 hours) requires
legal analysis at an average hourly wage of $250 for legal
professionals,\8\ resulting in a labor cost of $17,535,000. Assuming
that 25% of the total burden hours requires legal support at the
average hourly wage of $25.19, and that the remaining 25% requires
clerical work at an average hourly wage of $16.92; the resulting labor
cost is approximately $1,154,893 ($883,413 + $593,384). Thus, the total
annual labor cost is approximately $19,011,797 ($17,535,000 for legal
professionals + $883,413 for legal support + $593,384 for clerical
workers).
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\8\ Staff has derived an hourly wage rate for legal
professionals based upon industry knowledge. The wage rates for
legal support workers and for clerical support used in this Notice
are based on recent data from the Bureau of Labor Statistics
National Compensation Survey.
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Total annual capital or other non-labor costs: $0.
The Rule imposes no appreciable current capital or start-up costs.
As stated above, warrantors have already modified their warranties to
include the information the Rule requires. Rule compliance does not
require the use of any capital goods, other than ordinary office
equipment, which providers would already have available for general
business use.

Request for Comments

You can file a comment online or on paper. Write ``Warranty Rules:
Paperwork Comment, FTC File No. P044403'' 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 does not include any
sensitive personal information, like 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, like 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 have to 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, 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, the Commission encourages
you to submit your comments online. To make sure that the Commission
considers your online comment, you must file it at https://ftcpublic.commentworks.com/ftc/consumerwarrantypra, by following the
instructions on the web-based form. If this Notice appears at http://www.regulations.gov, you also may file a comment through that Web site.
If you file your comment on paper, write ``Warranty Rules:
Paperwork Comment, FTC File No. P044403'' on your comment and on the
envelope, and mail or deliver it to the following address: Federal
Trade Commission, Office of the Secretary, Room H-113 (Annex J), 600
Pennsylvania Avenue NW., Washington, DC 20580. 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. 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 October 24,
2016. 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.

David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2016-20356 Filed 8-23-16; 8:45 am]
BILLING CODE 6750-01-P

57910 Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices

Unless otherwise noted, comments Paperwork Comment, FTC File No. on those who are to respond. All
regarding each of these applications P044403’’ on your comment, and file comments must be received on or before
must be received at the Reserve Bank your comment online at https:// October 24, 2016.
indicated or the offices of the Board of ftcpublic.commentworks.com/ftc/ The Warranty Rule is one of three
Governors not later than September 18, consumerwarrantypra by following the rules 1 that the FTC implemented
2016. instructions on the web-based form. If pursuant to requirements of the
A. Federal Reserve Bank of Atlanta you prefer to file your comment on Magnuson-Moss Warranty Act, 15
(Chapelle Davis, Assistant Vice paper, mail or deliver your comment to U.S.C. 2301 et seq. (Warranty Act or
President) 1000 Peachtree Street NE., the following address: Federal Trade Act).2 The Warranty Rule specifies the
Atlanta, Georgia 30309. Comments can Commission, Office of the Secretary, information that must appear in a
also be sent electronically to 600 Pennsylvania Avenue NW., Suite written warranty on a consumer
Applications.Comments@atl.frb.org: CC–5610 (Annex J), Washington, DC product 3 costing more than $15. The
1. Sunshine Bancorp, Inc., Plant City, 20580, or deliver your comment to the Rule tracks section 102(a) of the
Florida (‘‘Sunshine’’); to become a following address: Federal Trade Warranty Act,4 specifying information
savings and loan holding company. Commission, Office of the Secretary, that must appear in the written warranty
Sunshine currently is a savings and loan Constitution Center, 400 7th Street SW., and, for certain disclosures, mandates
holding company; Sunshine proposes to 5th Floor, Suite 5610 (Annex J), the exact language that must be used.5
become a bank holding company for a Washington, DC 20024. Neither the Warranty Rule nor the Act
moment in time by merging with FNB FOR FURTHER INFORMATION CONTACT:
requires that a manufacturer or retailer
Bancorp Inc., Orlando, Florida and Requests for copies of the collection of warrant a consumer product in writing,
acquire its subsidiary bank, Florida information and supporting but if they choose to do so, the warranty
Bank of Commerce, Orlando Florida, documentation should be addressed to must comply with the Rule.
(‘‘FB Bank’’). Sunshine also has applied Gary Ivens, Attorney, Division of Warranty Rule Burden Statement
to retain its savings association, Marketing Practices, Bureau of
Sunshine Bank, Plant City, Florida. Total annual hours burden: 140,280
Consumer Protection, Federal Trade hours.
After the acquisition, Sunshine Commission, 600 Pennsylvania Avenue In its 2013 submission to OMB, the
proposes to merge FB Bank with NW., CC–8528, Washington, DC 20580, FTC estimated that the information
Sunshine Bank, with Sunshine Bank as (202) 326–2330. collection burden of including the
the surviving entity, and become a SUPPLEMENTARY INFORMATION: disclosures required by the Warranty
savings and loan holding company.
Rule was 116,128 hours per year.
Board of Governors of the Federal Reserve Proposed Information Collection
Although the Rule’s information
System, August 18, 2016. Activities
collection requirements have not
Margaret M. Shanks, Under the Paperwork Reduction Act changed, this estimate slightly increases
Deputy Secretary of the Board. (PRA), 44 U.S.C. 3501–3520, federal the number of manufacturers subject to
[FR Doc. 2016–20202 Filed 8–23–16; 8:45 am] agencies must get OMB approval for the Rule based on recent Census data.
BILLING CODE 6210–01–P
each collection of information they Further, because most warrantors would
conduct, sponsor, or require. continue to disclose this information
‘‘Collection of information’’ means even if there were no statute or rule
FEDERAL TRADE COMMISSION agency requests or requirements to requiring them to do so, staff’s estimates
submit reports, keep records, or provide likely overstate the PRA-related burden
Agency Information Collection information to a third party. 44 U.S.C. attributable to the Rule. Moreover, the
Activities; Proposed Collection; 3502(3); 5 CFR 1320.3(c). As required by Warranty Rule has been in effect since
Comment Request section 3506(c)(2)(A) of the PRA, the 1976, and warrantors have long since
FTC is providing this opportunity for modified their warranties to include the
AGENCY: Federal Trade Commission public comment before requesting that information the Rule requires.
(FTC or Commission). OMB extend the existing PRA clearance Based on conversations with various
ACTION: Notice. for the information collection warrantors’ representatives over the
requirements associated with the years, staff has concluded that eight
SUMMARY: The information collection Commission’s Rule Concerning hours per year is a reasonable estimate
requirements described below will be Disclosure of Written Consumer Product of warrantors’ PRA-related burden
submitted to the Office of Management Warranty Terms and Conditions (the attributable to the Warranty Rule.6 This
and Budget (OMB) for review, as Consumer Product Warranty Rule or estimate takes into account ensuring
required by the Paperwork Reduction Warranty Rule), 16 CFR part 701 (OMB that new warranties and changes to
Act (PRA). The FTC seeks public Control Number 3084–0111).
comments on its proposal to extend, for The FTC invites comments on: (1) 1 The other two rules relate to the pre-sale

three years, the current PRA clearance Whether the proposed collection of availability of warranty terms and minimum
for information collection requirements standards for informal dispute settlement
information is necessary for the proper mechanisms that are incorporated into a written
contained in its Consumer Product performance of the functions of the warranty.
Warranty Rule. That clearance expires agency, including whether the 2 40 FR 60168 (Dec. 31, 1975).

on December 31, 2016. information will have practical utility; 3 The definition of consumer product excludes

DATES: Comments must be received on products purchased solely for commercial or
(2) the accuracy of the agency’s estimate
mstockstill on DSK3G9T082PROD with NOTICES

industrial use. 16 CFR 701.1(b).
or before October 24, 2016. of the burden of the proposed collection 4 15 U.S.C. 2302(a).

ADDRESSES: Interested parties may file a of information, including the validity of 5 40 FR 60168, 60169–60170.

comment online or on paper by the methodology and assumptions used; 6 FTC staff has previously contacted two

following the instructions in the (3) ways to enhance the quality, utility, manufacturing associations—the Association of
Home Appliance Manufacturers and the National
Request for Comments part of the and clarity of the information to be Association of Manufacturers—and we have not
SUPPLEMENTARY INFORMATION section collected; and (4) ways to minimize the located additional data that further clarifies this
below. Write ‘‘Warranty Rules: burden of the collection of information figure.

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Document Created: 2016-08-24 03:02:59
Document Modified: 2016-08-24 03:02:59

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 must be received on or before October 24, 2016.
Contact		Requests for copies of the collection
FR Citation		81 FR 57910