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

FEDERAL TRADE COMMISSION

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

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


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

FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

AGENCY: Federal Trade Commission (FTC or Commission).

ACTION: Notice.

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

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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