82_FR_21774 82 FR 21685 - Freedom of Information Act; Miscellaneous Rules

82 FR 21685 - Freedom of Information Act; Miscellaneous Rules

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 89 (May 10, 2017)

Page Range21685-21687
FR Document2017-09432

The Federal Trade Commission is implementing provisions of the FOIA Improvement Act of 2016 by amending the regulation governing fees the agency may assess to offset the cost of disseminating information and records to the public. The FTC is also making other clarifying changes and updates to the fee regulation.

Federal Register, Volume 82 Issue 89 (Wednesday, May 10, 2017)
[Federal Register Volume 82, Number 89 (Wednesday, May 10, 2017)]
[Rules and Regulations]
[Pages 21685-21687]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09432]


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FEDERAL TRADE COMMISSION

16 CFR Part 4


Freedom of Information Act; Miscellaneous Rules

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission is implementing provisions of the 
FOIA Improvement Act of 2016 by amending the regulation governing fees 
the agency may assess to offset the cost of disseminating information 
and records to the public. The FTC is also making other clarifying 
changes and updates to the fee regulation.

DATES: These amendments are effective May 10, 2017.

FOR FURTHER INFORMATION CONTACT: G. Richard Gold, Attorney, (202) 326-
3355, Office of the General Counsel, Federal Trade Commission, 600 
Pennsylvania Avenue NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: In a document previously published in the 
Federal Register, 81 FR 93861 (Dec. 22, 2016), the Federal Trade 
Commission, as required by the Freedom of Information Act (FOIA), 
sought comments on proposed revisions to its fee regulation. See 5 
U.S.C. 552(a)(4)(A)(i). The FTC proposed to change its fee schedule to 
implement the FOIA Improvement Act of 2016 (the ``2016 FOIA 
Amendments'') \1\ as appropriate and to revise the regulation to 
account for other fee-related changes.\2\
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    \1\ On June 30, 2016, President Obama signed into law the FOIA 
Improvement Act of 2016, Public Law 114-185, amending the Freedom of 
Information Act (FOIA), 5 U.S.C. 552. The new law addresses a range 
of procedural issues and places additional limitations on assessing 
search fees (or, for requesters with preferred fee status, 
duplication fees) if an agency's response time to a requester is 
delayed.
    \2\ On December 22, 2016, the FTC also implemented a final rule 
that incorporated other parts of the 2016 FOIA Amendments. 81 FR 
93804. Pursuant to 5 U.S.C. 553, these changes did not require 
public comment.
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A. Public Comments

    The FTC received two comments in response to the proposed rule 
changes: one from Hartley Rathaway and one from the Reporters Committee 
for Freedom of the Press (``Reporters Committee'').\3\
---------------------------------------------------------------------------

    \3\ See https://www.ftc.gov/policy/public-comments/initiative-691 for links to each comment.
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Comment by Hartley Rathaway

    The comment from Hartley Rathaway argues that ``it is [not] fair 
that the government should force the citizenry to bear the costs of 
seeing the truth. Cut spending on wars, cut subsidies for the 
oligarchs, and then put that money toward uses like these. Charging us 
fees for information is unjust.'' The FTC understands this concern and 
notes that most agency FOIA responses do not impose any costs on the 
requester. For example, members of the public are entitled to two hours 
of free search time and 100 free pages, and are not charged for review 
time.\4\ Other requester categories (including Educational, Non-
commercial Scientific Institution, or News Media) are not charged for 
search or review time, and are also entitled to 100 free pages.\5\ The 
FTC also waives fees if the total chargeable fees for a request are 
under $25.00.\6\ Finally, the Commission may produce releasable records 
without any charge or at a charge reduced below the established fees if 
disclosure of the information is in the public interest because it is 
likely to contribute significantly to public understanding of the 
operations or activities of the government, and is not primarily in the 
commercial interest of the requester.\7\ Requesters are required to 
provide support for a fee waiver or reduction request, or a request to 
be granted status in one of the noncommercial requester categories.
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    \4\ 16 CFR 4.8(b).
    \5\ Id.
    \6\ 16 CFR 4.8(b)(4).
    \7\ 16 CFR 4.8(e).
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    Additionally, the FTC follows FOIA statutory language and Office of 
Management and Budget (``OMB'') directives to recoup allowable direct 
costs. The Freedom of Information Reform Act of 1986 (``FOIA Reform 
Act'') charged the OMB with responsibility for promulgating, pursuant 
to notice and comment, guidelines containing a uniform schedule of fees 
for individual agencies to follow when promulgating their FOIA fee 
regulations. 5 U.S.C. 552(a)(4)(A)(i). On March 27, 1987, the OMB 
issued its Uniform Freedom of Information Act Fee Schedule and 
Guidelines (OMB Fee Guidelines) but also concluded that issuance of a 
government-wide fee schedule was precluded by language of the FOIA 
Reform Act requiring ``each agency's fees to be based upon its direct 
reasonable operating costs of providing FOIA services.'' See 52 FR at 
10015. The FOIA Reform Act mandated that agencies conform their fee 
schedules to these guidelines. The guidelines specifically direct that 
``[a]gencies should charge fees that recoup the full allowable direct 
costs they incur . . . and shall use the most efficient and least 
costly methods to comply with requests for documents made under the 
FOIA.'' Id. at 10018. The FTC enforces this OMB directive to recoup 
allowable direct costs while also providing for lower cost requester 
categories and fee reductions or waivers as directed.

Comment by the Reporters Committee for Freedom of the Press

    The Reporters Committee supports the FTC's efforts to update its 
regulations to comply with FOIA but argues that two aspects of the 
proposed rule are inconsistent with both the text of FOIA and its 
recent interpretation by the U.S. Court of Appeals for the District

[[Page 21686]]

of Columbia Circuit in Cause of Action v. Federal Trade Commission, 799 
F.3d 1108 (D.C. Cir. 2015).
    First, the Reporters Committee claims that Sec.  4.8(b)(2)(iii) of 
the proposed rule sets forth an incorrect definition of 
``representative of the news media.'' Specifically, the Reporters 
Committee states:

    FOIA defines a ``representative of the news media'' as any 
person or entity that gathers information of potential interest to a 
segment of the public, uses its editorial skills to turn the raw 
materials into a distinct work, and distributes that work to an 
audience. 5 U.S.C. 552(a)(4)(A) (emphasis added). The Proposed Rule, 
however, defines a ``representative of the news media'' as any 
person or entity that gathers information of potential interest to a 
segment of the public, uses its editorial skills to turn the raw 
materials into a distinct work, and distributes that work to the 
public.

The Reporters Committee argues that the proposed rule's departure from 
the statutory text should be revised to mirror the language of FOIA. 
The FTC agrees and is incorporating the Reporters Committee's suggested 
edit to the Final Rule's definition of ``representative of the news 
media'' as set out in Sec.  4.8(b)(2)(iii).
    Additionally, the Reporters Committee also claims that Sec.  
4.8(e)(2)(i)(C) of the proposed rule places impermissible limitations 
on the conditions pursuant to which a public interest fee waiver will 
be granted. Section 4.8(e)(2)(i)(C) of the proposed rule stated as 
follows:

    The understanding to which disclosure is likely to contribute is 
public understanding, as opposed to the understanding of the 
individual requester or a narrow segment of interested persons 
(e.g., by providing specific information about the requester's 
expertise in the subject area of the request and about the ability 
and intention to disseminate the information to the public) . . .

The Reporters Committee claims that this portion of the FTC's proposed 
rule does not comply with the recent decision by the U.S. Court of 
Appeals for the District of Columbia Circuit in Cause of Action v. 
Federal Trade Commission, 799 F.3d 1108 (D.C. Cir. 2015). For public 
interest fee waivers, the court determined that the FOIA statute does 
not:

require a requester to show an ability to convey the information to 
a ``broad segment'' of the public or to a ``wide audience.'' To the 
contrary, we have held that ``proof of the ability to disseminate 
the released information to a broad cross-section of the public is 
not required.'' . . . FOIA does not require that a requester be able 
to reach a ``wide audience.'' Rather, as the Second Circuit has 
held, ``the relevant inquiry . . . is whether the requester will 
disseminate the disclosed records to a reasonably broad audience of 
persons interested in the subject.''

    Cause of Action, 799 F.3d at 1116 (emphasis added) (citations 
omitted). The Reporters Committee argues that Cause of Action shows 
that for public interest fee waivers it is entirely sufficient if the 
requested records will increase the understanding of an audience of 
persons interested in the subject, even if that group is ``narrow'' as 
compared to the public at large. See Comment by the Reporters Committee 
(citing Cause of Action, 799 F.3d at 1116). The Reporters Committee 
thus claims that the reference to ``a narrow segment of interested 
persons'' as not meeting the standard for ``public understanding'' for 
fee waiver determinations should be deleted.
    The FTC has considered this suggested edit but is denying the 
request. The final rule section relating to Sec.  4.8(e)(2)(i)(C) is 
the same language that was previously proposed. This language complies 
with the FOIA statute and case law. Both the Cause of Action case that 
the Reporters Committee cites and the subsequent decision in National 
Security Counselors v. Department of Justice, 848 F.3d 467, 472 (D.C. 
Cir. Feb. 14, 2017), stated that, ``although a fee-waiver applicant 
need not demonstrate its ability to reach a `wide audience,' it must at 
least show that it can `disseminate the disclosed records to a 
reasonably broad audience of persons interested in the subject.' ''
    The National Security Counselors case then concluded that where a 
FOIA requester fails to provide sufficiently specific and non-
conclusory statements demonstrating its ability to disseminate the 
disclosures to a reasonably broad audience of persons interested in the 
subject, that deficiency alone is a sufficient basis for denying the 
fee waiver request. The National Security Counselors court denied the 
appellant's fee waiver request and stated that the appellant in that 
case did not identify a discernible audience for the proposed 
disclosures and was no more than a clearing house for the records it 
received. The appellant did not actively engage in gathering 
information to produce original publications and did not produce 
information about the size of its audience or the amount of traffic 
received by its Web site. National Security Counselors, 848 F.3d at 
472, 474. Thus the FTC concludes that a reasonably broad audience 
interested in the subject is clearly distinct from ``a narrow segment 
of interested persons'' and it is appropriate to consider whether the 
requested disclosure is likely to contribute to the understanding of 
``a narrow segment of interested persons'' as opposed to ``public 
understanding.'' \8\
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    \8\ See Crooker v. Department of the Army, 577 F. Supp. 1220, 
1223 (D.D.C. 1984) (rejecting fee waiver under previous standard for 
information of interest to ``a small segment of the scientific 
community,'' which would not ``benefit the public at large''), 
appeal dismissed as frivolous, No. 84-5089 (D.C. Cir. June 22, 
1984).
---------------------------------------------------------------------------

Conclusion

    The Commission certifies that the Rule amendments set forth in this 
final rule do not require an initial or final regulatory analysis under 
the Regulatory Flexibility Act because the amendments will not have a 
significant economic impact on a substantial number of small entities. 
See 5 U.S.C. 605(b). Most requests for access to FTC records are filed 
by individuals who are not ``small entities'' within the meaning of 
that Act. Id. at 601(6). In any event, the economic impact of the rule 
changes on all requesters is expected to be minimal, if any. The Rule 
amendments also do not contain information collection requirements 
within the meaning of the Paperwork Reduction Act, 44 U.S.C. 3501-3520.

List of Subjects in 16 CFR Part 4

    Administrative practice and procedure, Freedom of information.

0
For the reasons set forth in the preamble, the Federal Trade Commission 
amends Title 16, Chapter I, Subchapter A of the Code of Federal 
Regulations as follows:

PART 4--MISCELLANEOUS RULES

0
1. The authority citation for Part 4 continues to read as follows:

    Authority: 15 U.S.C. 46.


0
2. Amend Sec.  4.8 by revising paragraphs (b)(2)(iii), (b)(6)(i), 
(b)(7), (e)(2)(i)(C) and (i) to read as follows:


Sec.  4.8  Costs for obtaining Commission records.

* * * * *
    (b) * * *
    (2) * * *
    (iii) A representative of the news media is any person or entity 
that gathers information of potential interest to a segment of the 
public, uses its editorial skills to turn the raw materials into a 
distinct work, and distributes that work to an audience. The term 
``news'' means information that is about current events or that would 
be of current interest to the public. Examples of news media entities 
include television or radio stations broadcasting to the public at 
large and publishers of periodicals (but only in those instances where 
they

[[Page 21687]]

can qualify as disseminators of news) who make their products available 
for purchase by or subscription by the general public or free 
distribution to the general public. These examples are not intended to 
be all-inclusive. As traditional methods of news delivery evolve (e.g., 
electronic dissemination of newspapers through telecommunications 
services), such alternative media shall be considered to be news-media 
entities. A freelance journalist shall be regarded as working for a 
news-media entity if the journalist can demonstrate a solid basis for 
expecting publication through that entity, whether or not the 
journalist is actually employed by the entity. A publication contract 
would provide a solid basis for such an expectation, but the past 
publication record of a requester may also be considered in making such 
a determination. To qualify for news media status, a request must not 
be for a nonjournalistic commercial use. A request for records 
supporting the news dissemination function of the requester is not 
considered a commercial use.
* * * * *
    (6)(i) Schedule of direct costs. The following uniform schedule of 
fees applies to records held by all constituent units of the 
Commission:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
                               Duplication
------------------------------------------------------------------------
Paper to paper copy (up to 8.5'' x       $0.14 per page.
 14'').
Converting paper into electronic format  Quarter hour rate of operator
 (scanning).                              (Clerical, Other Professional,
                                          Attorney/Economist).
Other reproduction (e.g., converting     Actual direct cost, including
 from one electronic format to computer   operator time.
 disk or printout, microfilm,
 microfiche, or microform).
------------------------------------------------------------------------
                           Electronic Services
------------------------------------------------------------------------
Compact disc (CD)......................  $3.00 per disc.
DVD....................................  $3.00 per disc.
Videotape cassette.....................  $2.00 per cassette.
------------------------------------------------------------------------
                           Microfilm Services
------------------------------------------------------------------------
Conversion of existing fiche/film to     $0.14 per page.
 paper.
------------------------------------------------------------------------
                               Other Fees
------------------------------------------------------------------------
Certification..........................  $25.00 each.
Express Mail...........................  U.S. Postal Service Market
                                          Rates.
Records maintained at Iron Mountain or   Contract Rates.
 Washington National Records Center
 facilities (records retrieval,
 refiling, et cetera).
Other Services as they arise...........  Market Rates.
------------------------------------------------------------------------

* * * * *
    (7) Untimely responses. (i) Except as provided in paragraphs 
(b)(7)(ii)-(iv) of this section, search fees for responding to a 
Freedom of Information Act request will not be assessed for responses 
that fail to comply with the time limits, as provided at 5 U.S.C. 
552(a)(4)(A)(viii), Sec.  4.11(a)(1)(ii) and Sec.  4.11(a)(3)(ii), if 
there are no unusual or exceptional circumstances, as those terms are 
defined by 5 U.S.C. 552(a)(6) and Sec.  4.11(a)(1)(ii). Except as 
provided below, duplication fees will not be assessed for an untimely 
response, where there are no unusual or exceptional circumstances, made 
to a requester qualifying for one of the fee categories set forth in 
paragraph (b)(2) of this section.
    (ii) If the Commission has determined that unusual circumstances 
apply and has provided a timely written notice to the requester in 
accordance with 5 U.S.C. 552(a)(6)(B), the delay in a response is 
excused for an additional 10 days. If the Commission fails to comply 
with the extended time limit, it will not charge search fees (or, for a 
requester qualifying for one of the fee categories set forth in 
paragraph (b)(2) of this section, will not charge duplication fees).
    (iii) If the Commission has determined that unusual circumstances 
apply and more than 5,000 pages are necessary to respond to the 
request, the agency may charge search fees (or, for requesters 
qualifying for one of the fee categories set forth in paragraph (b)(2) 
of this section, may charge duplication fees) if timely written notice 
has been provided to the requester and the agency has discussed with 
the requester via written mail, electronic mail, or telephone (or made 
not less than 3 good-faith attempts to do so) how the requester could 
effectively limit the scope of the request.
    (iv) If a court determines that exceptional circumstances exist, 
the Commission's failure to comply with a time limit shall be excused 
for the length of time provided by the court order.
* * * * *
    (e) * * *
    (2) * * *
    (i) * * *
    (C) The understanding to which disclosure is likely to contribute 
is public understanding, as opposed to the understanding of the 
individual requester or a narrow segment of interested persons (e.g., 
by providing specific information about the requester's expertise in 
the subject area of the request and about the ability and intention to 
disseminate the information to the public); and
* * * * *
    (i) Means of payment. Payment shall be made either electronically 
through the Department of Treasury's pay.gov Web site or by check or 
money order payable to the Treasury of the United States.
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-09432 Filed 5-9-17; 8:45 am]
BILLING CODE 6750-01-P



                                                                  Federal Register / Vol. 82, No. 89 / Wednesday, May 10, 2017 / Rules and Regulations                                            21685

                                                (g) Additional Information                              records to the public. The FTC is also                 or review time, and are also entitled to
                                                   The subject of this AD is addressed in               making other clarifying changes and                    100 free pages.5 The FTC also waives
                                                European Aviation Safety Agency (EASA) AD               updates to the fee regulation.                         fees if the total chargeable fees for a
                                                No. 2015–0144, dated July 21, 2015. You may             DATES: These amendments are effective                  request are under $25.00.6 Finally, the
                                                view the EASA AD on the Internet at http://                                                                    Commission may produce releasable
                                                                                                        May 10, 2017.
                                                www.regulations.gov in Docket No. FAA–                                                                         records without any charge or at a
                                                2016–6436.                                              FOR FURTHER INFORMATION CONTACT: G.
                                                                                                        Richard Gold, Attorney, (202) 326–3355,                charge reduced below the established
                                                (h) Subject
                                                                                                        Office of the General Counsel, Federal                 fees if disclosure of the information is
                                                  Joint Aircraft Service Component (JASC)               Trade Commission, 600 Pennsylvania                     in the public interest because it is likely
                                                Code: Wheel/Ski/Float/Emergency                         Avenue NW., Washington, DC 20580.                      to contribute significantly to public
                                                Equipment, 3246/2560.                                                                                          understanding of the operations or
                                                                                                        SUPPLEMENTARY INFORMATION: In a
                                                (i) Material Incorporated by Reference                                                                         activities of the government, and is not
                                                                                                        document previously published in the                   primarily in the commercial interest of
                                                   (1) The Director of the Federal Register             Federal Register, 81 FR 93861 (Dec. 22,                the requester.7 Requesters are required
                                                approved the incorporation by reference of              2016), the Federal Trade Commission,
                                                the service information listed in this                                                                         to provide support for a fee waiver or
                                                                                                        as required by the Freedom of                          reduction request, or a request to be
                                                paragraph under 5 U.S.C. 552(a) and 1 CFR               Information Act (FOIA), sought
                                                part 51.                                                                                                       granted status in one of the
                                                   (2) You must use this service information
                                                                                                        comments on proposed revisions to its                  noncommercial requester categories.
                                                as applicable to do the actions required by             fee regulation. See 5 U.S.C.                              Additionally, the FTC follows FOIA
                                                this AD, unless the AD specifies otherwise.             552(a)(4)(A)(i). The FTC proposed to                   statutory language and Office of
                                                   (i) Airbus Helicopters Alert Service                 change its fee schedule to implement                   Management and Budget (‘‘OMB’’)
                                                Bulletin MBB–BK117 C–2–88A–010,                         the FOIA Improvement Act of 2016 (the                  directives to recoup allowable direct
                                                Revision 1, dated April 16, 2015.                       ‘‘2016 FOIA Amendments’’) 1 as                         costs. The Freedom of Information
                                                   (ii) Reserved.                                       appropriate and to revise the regulation
                                                   (3) For Airbus Helicopters service
                                                                                                                                                               Reform Act of 1986 (‘‘FOIA Reform
                                                                                                        to account for other fee-related                       Act’’) charged the OMB with
                                                information identified in this AD, contact
                                                Airbus Helicopters, 2701 N. Forum Drive,
                                                                                                        changes.2                                              responsibility for promulgating,
                                                Grand Prairie, TX 75052; telephone (972)                A. Public Comments                                     pursuant to notice and comment,
                                                641–0000 or (800) 232–0323; fax (972) 641–                                                                     guidelines containing a uniform
                                                3775; or at https://                                      The FTC received two comments in                     schedule of fees for individual agencies
                                                www.airbushelicopters.com/techpub/FO/                   response to the proposed rule changes:                 to follow when promulgating their FOIA
                                                scripts/myFO_login.php.                                 one from Hartley Rathaway and one                      fee regulations. 5 U.S.C. 552(a)(4)(A)(i).
                                                   (4) You may view this service information            from the Reporters Committee for                       On March 27, 1987, the OMB issued its
                                                at FAA, Office of the Regional Counsel,                 Freedom of the Press (‘‘Reporters
                                                Southwest Region, 10101 Hillwood Pkwy,                                                                         Uniform Freedom of Information Act
                                                                                                        Committee’’).3                                         Fee Schedule and Guidelines (OMB Fee
                                                Room 6N–321, Fort Worth, TX 76177. For
                                                information on the availability of this                 Comment by Hartley Rathaway                            Guidelines) but also concluded that
                                                material at the FAA, call (817) 222–5110.                                                                      issuance of a government-wide fee
                                                   (5) You may view this service information
                                                                                                          The comment from Hartley Rathaway
                                                                                                                                                               schedule was precluded by language of
                                                that is incorporated by reference at the                argues that ‘‘it is [not] fair that the
                                                                                                                                                               the FOIA Reform Act requiring ‘‘each
                                                National Archives and Records                           government should force the citizenry to
                                                                                                                                                               agency’s fees to be based upon its direct
                                                Administration (NARA). For information on               bear the costs of seeing the truth. Cut
                                                                                                                                                               reasonable operating costs of providing
                                                the availability of this material at NARA, call         spending on wars, cut subsidies for the
                                                (202) 741–6030, or go to: http://                                                                              FOIA services.’’ See 52 FR at 10015. The
                                                                                                        oligarchs, and then put that money
                                                www.archives.gov/federal-register/cfr/ibr-                                                                     FOIA Reform Act mandated that
                                                                                                        toward uses like these. Charging us fees
                                                locations.html.                                                                                                agencies conform their fee schedules to
                                                                                                        for information is unjust.’’ The FTC
                                                                                                                                                               these guidelines. The guidelines
                                                  Issued in Fort Worth, Texas, on April 27,             understands this concern and notes that
                                                2017.                                                                                                          specifically direct that ‘‘[a]gencies
                                                                                                        most agency FOIA responses do not
                                                Scott A. Horn,
                                                                                                                                                               should charge fees that recoup the full
                                                                                                        impose any costs on the requester. For
                                                                                                                                                               allowable direct costs they incur . . .
                                                Acting Manager, Rotorcraft Directorate,                 example, members of the public are
                                                Aircraft Certification Service.
                                                                                                                                                               and shall use the most efficient and
                                                                                                        entitled to two hours of free search time
                                                                                                                                                               least costly methods to comply with
                                                [FR Doc. 2017–09373 Filed 5–9–17; 8:45 am]              and 100 free pages, and are not charged
                                                                                                                                                               requests for documents made under the
                                                BILLING CODE 4910–13–P                                  for review time.4 Other requester
                                                                                                                                                               FOIA.’’ Id. at 10018. The FTC enforces
                                                                                                        categories (including Educational, Non-
                                                                                                                                                               this OMB directive to recoup allowable
                                                                                                        commercial Scientific Institution, or
                                                                                                                                                               direct costs while also providing for
                                                FEDERAL TRADE COMMISSION                                News Media) are not charged for search
                                                                                                                                                               lower cost requester categories and fee
                                                                                                                                                               reductions or waivers as directed.
                                                16 CFR Part 4                                             1 On June 30, 2016, President Obama signed into

                                                                                                        law the FOIA Improvement Act of 2016, Public Law       Comment by the Reporters Committee
                                                Freedom of Information Act;                             114–185, amending the Freedom of Information Act
                                                                                                        (FOIA), 5 U.S.C. 552. The new law addresses a
                                                                                                                                                               for Freedom of the Press
                                                Miscellaneous Rules                                     range of procedural issues and places additional         The Reporters Committee supports
                                                           Federal Trade Commission                     limitations on assessing search fees (or, for
                                                AGENCY:
                                                                                                        requesters with preferred fee status, duplication
                                                                                                                                                               the FTC’s efforts to update its
                                                (FTC).                                                  fees) if an agency’s response time to a requester is   regulations to comply with FOIA but
                                                ACTION:   Final rule.                                   delayed.                                               argues that two aspects of the proposed
jstallworth on DSK7TPTVN1PROD with RULES




                                                                                                          2 On December 22, 2016, the FTC also
                                                                                                                                                               rule are inconsistent with both the text
                                                SUMMARY:   The Federal Trade                            implemented a final rule that incorporated other       of FOIA and its recent interpretation by
                                                Commission is implementing provisions                   parts of the 2016 FOIA Amendments. 81 FR 93804.
                                                                                                        Pursuant to 5 U.S.C. 553, these changes did not        the U.S. Court of Appeals for the District
                                                of the FOIA Improvement Act of 2016                     require public comment.
                                                by amending the regulation governing                      3 See https://www.ftc.gov/policy/public-              5 Id.

                                                fees the agency may assess to offset the                comments/initiative-691 for links to each comment.      6 16    CFR 4.8(b)(4).
                                                cost of disseminating information and                     4 16 CFR 4.8(b).                                      7 16    CFR 4.8(e).



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                                                21686             Federal Register / Vol. 82, No. 89 / Wednesday, May 10, 2017 / Rules and Regulations

                                                of Columbia Circuit in Cause of Action                  audience of persons interested in the                 of ‘‘a narrow segment of interested
                                                v. Federal Trade Commission, 799 F.3d                   subject.’’                                            persons’’ as opposed to ‘‘public
                                                1108 (D.C. Cir. 2015).                                     Cause of Action, 799 F.3d at 1116                  understanding.’’ 8
                                                   First, the Reporters Committee claims                (emphasis added) (citations omitted).
                                                that § 4.8(b)(2)(iii) of the proposed rule                                                                    Conclusion
                                                                                                        The Reporters Committee argues that
                                                sets forth an incorrect definition of                   Cause of Action shows that for public                    The Commission certifies that the
                                                ‘‘representative of the news media.’’                   interest fee waivers it is entirely                   Rule amendments set forth in this final
                                                Specifically, the Reporters Committee                   sufficient if the requested records will              rule do not require an initial or final
                                                states:                                                 increase the understanding of an                      regulatory analysis under the Regulatory
                                                  FOIA defines a ‘‘representative of the news           audience of persons interested in the                 Flexibility Act because the amendments
                                                media’’ as any person or entity that gathers            subject, even if that group is ‘‘narrow’’             will not have a significant economic
                                                information of potential interest to a segment          as compared to the public at large. See               impact on a substantial number of small
                                                of the public, uses its editorial skills to turn        Comment by the Reporters Committee                    entities. See 5 U.S.C. 605(b). Most
                                                the raw materials into a distinct work, and                                                                   requests for access to FTC records are
                                                                                                        (citing Cause of Action, 799 F.3d at
                                                distributes that work to an audience. 5 U.S.C.                                                                filed by individuals who are not ‘‘small
                                                552(a)(4)(A) (emphasis added). The Proposed             1116). The Reporters Committee thus
                                                                                                        claims that the reference to ‘‘a narrow               entities’’ within the meaning of that Act.
                                                Rule, however, defines a ‘‘representative of
                                                                                                        segment of interested persons’’ as not                Id. at 601(6). In any event, the economic
                                                the news media’’ as any person or entity that
                                                gathers information of potential interest to a          meeting the standard for ‘‘public                     impact of the rule changes on all
                                                segment of the public, uses its editorial skills        understanding’’ for fee waiver                        requesters is expected to be minimal, if
                                                to turn the raw materials into a distinct work,         determinations should be deleted.                     any. The Rule amendments also do not
                                                and distributes that work to the public.                   The FTC has considered this                        contain information collection
                                                The Reporters Committee argues that                     suggested edit but is denying the                     requirements within the meaning of the
                                                the proposed rule’s departure from the                  request. The final rule section relating to           Paperwork Reduction Act, 44 U.S.C.
                                                statutory text should be revised to                     § 4.8(e)(2)(i)(C) is the same language that           3501–3520.
                                                mirror the language of FOIA. The FTC                    was previously proposed. This language                List of Subjects in 16 CFR Part 4
                                                agrees and is incorporating the                         complies with the FOIA statute and case
                                                                                                        law. Both the Cause of Action case that                 Administrative practice and
                                                Reporters Committee’s suggested edit to
                                                                                                        the Reporters Committee cites and the                 procedure, Freedom of information.
                                                the Final Rule’s definition of
                                                ‘‘representative of the news media’’ as                 subsequent decision in National                       ■ For the reasons set forth in the
                                                set out in § 4.8(b)(2)(iii).                            Security Counselors v. Department of                  preamble, the Federal Trade
                                                   Additionally, the Reporters                          Justice, 848 F.3d 467, 472 (D.C. Cir. Feb.            Commission amends Title 16, Chapter I,
                                                Committee also claims that                              14, 2017), stated that, ‘‘although a fee-             Subchapter A of the Code of Federal
                                                § 4.8(e)(2)(i)(C) of the proposed rule                  waiver applicant need not demonstrate                 Regulations as follows:
                                                places impermissible limitations on the                 its ability to reach a ‘wide audience,’ it
                                                conditions pursuant to which a public                                                                         PART 4—MISCELLANEOUS RULES
                                                                                                        must at least show that it can
                                                interest fee waiver will be granted.                    ‘disseminate the disclosed records to a               ■ 1. The authority citation for Part 4
                                                Section 4.8(e)(2)(i)(C) of the proposed                 reasonably broad audience of persons                  continues to read as follows:
                                                rule stated as follows:                                 interested in the subject.’ ’’                            Authority: 15 U.S.C. 46.
                                                   The understanding to which disclosure is                The National Security Counselors
                                                                                                        case then concluded that where a FOIA                 ■  2. Amend § 4.8 by revising paragraphs
                                                likely to contribute is public understanding,
                                                                                                        requester fails to provide sufficiently               (b)(2)(iii), (b)(6)(i), (b)(7), (e)(2)(i)(C) and
                                                as opposed to the understanding of the
                                                individual requester or a narrow segment of             specific and non-conclusory statements                (i) to read as follows:
                                                interested persons (e.g., by providing specific         demonstrating its ability to disseminate              § 4.8 Costs for obtaining Commission
                                                information about the requester’s expertise in          the disclosures to a reasonably broad                 records.
                                                the subject area of the request and about the           audience of persons interested in the
                                                ability and intention to disseminate the                                                                      *       *    *     *     *
                                                                                                        subject, that deficiency alone is a                      (b) * * *
                                                information to the public) . . .
                                                                                                        sufficient basis for denying the fee                     (2) * * *
                                                The Reporters Committee claims that                     waiver request. The National Security                    (iii) A representative of the news
                                                this portion of the FTC’s proposed rule                 Counselors court denied the appellant’s               media is any person or entity that
                                                does not comply with the recent                         fee waiver request and stated that the                gathers information of potential interest
                                                decision by the U.S. Court of Appeals                   appellant in that case did not identify a             to a segment of the public, uses its
                                                for the District of Columbia Circuit in                 discernible audience for the proposed                 editorial skills to turn the raw materials
                                                Cause of Action v. Federal Trade                        disclosures and was no more than a                    into a distinct work, and distributes that
                                                Commission, 799 F.3d 1108 (D.C. Cir.                    clearing house for the records it                     work to an audience. The term ‘‘news’’
                                                2015). For public interest fee waivers,                 received. The appellant did not actively              means information that is about current
                                                the court determined that the FOIA                      engage in gathering information to                    events or that would be of current
                                                statute does not:                                       produce original publications and did                 interest to the public. Examples of news
                                                require a requester to show an ability to               not produce information about the size                media entities include television or
                                                convey the information to a ‘‘broad segment’’           of its audience or the amount of traffic              radio stations broadcasting to the public
                                                of the public or to a ‘‘wide audience.’’ To the         received by its Web site. National                    at large and publishers of periodicals
                                                contrary, we have held that ‘‘proof of the              Security Counselors, 848 F.3d at 472,                 (but only in those instances where they
jstallworth on DSK7TPTVN1PROD with RULES




                                                ability to disseminate the released                     474. Thus the FTC concludes that a
                                                information to a broad cross-section of the             reasonably broad audience interested in                 8 See Crooker v. Department of the Army, 577 F.
                                                public is not required.’’ . . . FOIA does not
                                                require that a requester be able to reach a
                                                                                                        the subject is clearly distinct from ‘‘a              Supp. 1220, 1223 (D.D.C. 1984) (rejecting fee waiver
                                                                                                        narrow segment of interested persons’’                under previous standard for information of interest
                                                ‘‘wide audience.’’ Rather, as the Second                                                                      to ‘‘a small segment of the scientific community,’’
                                                Circuit has held, ‘‘the relevant inquiry . . .          and it is appropriate to consider                     which would not ‘‘benefit the public at large’’),
                                                is whether the requester will disseminate the           whether the requested disclosure is                   appeal dismissed as frivolous, No. 84–5089 (D.C.
                                                disclosed records to a reasonably broad                 likely to contribute to the understanding             Cir. June 22, 1984).



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                                                                         Federal Register / Vol. 82, No. 89 / Wednesday, May 10, 2017 / Rules and Regulations                                                                     21687

                                                can qualify as disseminators of news)                                      journalist shall be regarded as working                        not be for a nonjournalistic commercial
                                                who make their products available for                                      for a news-media entity if the journalist                      use. A request for records supporting
                                                purchase by or subscription by the                                         can demonstrate a solid basis for                              the news dissemination function of the
                                                general public or free distribution to the                                 expecting publication through that                             requester is not considered a
                                                general public. These examples are not                                     entity, whether or not the journalist is                       commercial use.
                                                intended to be all-inclusive. As                                           actually employed by the entity. A
                                                                                                                                                                                          *     *     *     *    *
                                                traditional methods of news delivery                                       publication contract would provide a
                                                evolve (e.g., electronic dissemination of                                  solid basis for such an expectation, but                         (6)(i) Schedule of direct costs. The
                                                newspapers through                                                         the past publication record of a                               following uniform schedule of fees
                                                telecommunications services), such                                         requester may also be considered in                            applies to records held by all
                                                alternative media shall be considered to                                   making such a determination. To qualify                        constituent units of the Commission:
                                                be news-media entities. A freelance                                        for news media status, a request must

                                                                                                                                                      Duplication

                                                Paper to paper copy (up to 8.5″ x 14″) ....................................................                      $0.14 per page.
                                                Converting paper into electronic format (scanning) .................................                             Quarter hour rate of operator (Clerical, Other Professional, Attorney/
                                                                                                                                                                   Economist).
                                                Other reproduction (e.g., converting from one electronic format to com-                                          Actual direct cost, including operator time.
                                                  puter disk or printout, microfilm, microfiche, or microform).

                                                                                                                                               Electronic Services

                                                Compact disc (CD) ...................................................................................            $3.00 per disc.
                                                DVD ..........................................................................................................   $3.00 per disc.
                                                Videotape cassette ...................................................................................           $2.00 per cassette.

                                                                                                                                                Microfilm Services

                                                Conversion of existing fiche/film to paper ................................................                      $0.14 per page.

                                                                                                                                                      Other Fees

                                                Certification ...............................................................................................    $25.00 each.
                                                Express Mail .............................................................................................       U.S. Postal Service Market Rates.
                                                Records maintained at Iron Mountain or Washington National Records                                               Contract Rates.
                                                  Center facilities (records retrieval, refiling, et cetera).
                                                Other Services as they arise ....................................................................                Market Rates.



                                                *       *     *    *     *                                                 section, will not charge duplication                           understanding of the individual
                                                   (7) Untimely responses. (i) Except as                                   fees).                                                         requester or a narrow segment of
                                                provided in paragraphs (b)(7)(ii)–(iv) of                                     (iii) If the Commission has                                 interested persons (e.g., by providing
                                                this section, search fees for responding                                   determined that unusual circumstances                          specific information about the
                                                to a Freedom of Information Act request                                    apply and more than 5,000 pages are                            requester’s expertise in the subject area
                                                will not be assessed for responses that                                    necessary to respond to the request, the                       of the request and about the ability and
                                                fail to comply with the time limits, as                                    agency may charge search fees (or, for                         intention to disseminate the information
                                                provided at 5 U.S.C. 552(a)(4)(A)(viii),                                   requesters qualifying for one of the fee                       to the public); and
                                                § 4.11(a)(1)(ii) and § 4.11(a)(3)(ii), if                                  categories set forth in paragraph (b)(2) of
                                                there are no unusual or exceptional                                        this section, may charge duplication                           *     *     *     *    *
                                                circumstances, as those terms are                                          fees) if timely written notice has been                          (i) Means of payment. Payment shall
                                                defined by 5 U.S.C. 552(a)(6) and                                          provided to the requester and the                              be made either electronically through
                                                § 4.11(a)(1)(ii). Except as provided                                       agency has discussed with the requester                        the Department of Treasury’s pay.gov
                                                below, duplication fees will not be                                        via written mail, electronic mail, or                          Web site or by check or money order
                                                assessed for an untimely response,                                         telephone (or made not less than 3 good-                       payable to the Treasury of the United
                                                where there are no unusual or                                              faith attempts to do so) how the                               States.
                                                exceptional circumstances, made to a                                       requester could effectively limit the                          *     *     *     *    *
                                                requester qualifying for one of the fee                                    scope of the request.
                                                categories set forth in paragraph (b)(2) of                                   (iv) If a court determines that                               By direction of the Commission.
                                                this section.                                                              exceptional circumstances exist, the                           Donald S. Clark,
                                                   (ii) If the Commission has determined                                   Commission’s failure to comply with a                          Secretary.
                                                that unusual circumstances apply and                                       time limit shall be excused for the                            [FR Doc. 2017–09432 Filed 5–9–17; 8:45 am]
                                                has provided a timely written notice to                                    length of time provided by the court
                                                                                                                                                                                          BILLING CODE 6750–01–P
                                                the requester in accordance with 5                                         order.
jstallworth on DSK7TPTVN1PROD with RULES




                                                U.S.C. 552(a)(6)(B), the delay in a                                        *       *      *    *    *
                                                response is excused for an additional 10                                      (e) * * *
                                                days. If the Commission fails to comply                                       (2) * * *
                                                with the extended time limit, it will not                                     (i) * * *
                                                charge search fees (or, for a requester                                       (C) The understanding to which
                                                qualifying for one of the fee categories                                   disclosure is likely to contribute is
                                                set forth in paragraph (b)(2) of this                                      public understanding, as opposed to the


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Document Created: 2017-05-10 00:00:56
Document Modified: 2017-05-10 00:00:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThese amendments are effective May 10, 2017.
ContactG. Richard Gold, Attorney, (202) 326- 3355, Office of the General Counsel, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation82 FR 21685 
CFR AssociatedAdministrative Practice and Procedure and Freedom of Information

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