82 FR 47207 - Agency Information Collection Activities; Proposed Collection; Comment Request

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 195 (October 11, 2017)

Page Range		47207-47209
FR Document		2017-21882

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 Trade Regulation Rule entitled Labeling and Advertising of Home Insulation (R-value Rule or Rule). That clearance expires on January 31, 2018.

Federal Register, Volume 82 Issue 195 (Wednesday, October 11, 2017)

[Federal Register Volume 82, Number 195 (Wednesday, October 11, 2017)]
[Notices]
[Pages 47207-47209]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-21882]

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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
Trade Regulation Rule entitled Labeling and Advertising of Home
Insulation (R-value Rule or Rule).

[[Page 47208]]

That clearance expires on January 31, 2018.

DATES: Comments must be submitted by December 11, 2017.

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 ``R-value Rule: FTC File
No. R811001'' on your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/rvaluerulepra1 by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be addressed to Hampton Newsome, Attorney, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
Mail Code CC-9528, 600 Pennsylvania Ave. NW., Washington, DC 20580,
(202) 326-2889.

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3521, federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3); 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in the Commission's R-
value Rule, 16 CFR part 460 (OMB Control Number 3084-0109).
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, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
The R-value Rule establishes uniform standards for the
substantiation and disclosure of accurate, material product information
about the thermal performance characteristics of home insulation
products. The R-value of an insulation signifies the insulation's
degree of resistance to the flow of heat. This information tells
consumers how well a product is likely to perform as an insulator and
allows consumers to determine whether the cost of the insulation is
justified.

R-Value Rule Burden Statement

Estimated annual hours burden: 131,740 hours.
The Rule's requirements include product testing, recordkeeping, and
third-party disclosures on labels, fact sheets, advertisements, and
other promotional materials. Based on information provided by members
of the insulation industry, staff estimates that the Rule affects: (1)
150 insulation manufacturers and their testing laboratories; (2) 1,615
installers who sell home insulation; (3) 125,000 new home builders/
sellers of site-built homes and approximately 5,500 dealers who sell
manufactured housing; and (4) 25,000 retail sellers who sell home
insulation for installation by consumers.
Under the Rule's testing requirements, manufacturers must test each
insulation product for its R-value. Based on past industry input, staff
estimates that the test takes approximately two hours. Approximately 15
of the 150 insulation manufacturers in existence introduce one new
product each year. Their total annual testing burden is therefore
approximately 30 hours.
Staff further estimates that most manufacturers require an average
of approximately 20 hours per year regarding third-party disclosure
requirements in advertising and other promotional materials. Only the
five or six largest manufacturers require additional time,
approximately 80 hours each. Thus, the annual third-party disclosure
burden for manufacturers is approximately 3,360 hours [(144
manufacturers x 20 hours) + (6 manufacturers x 80 hours)].
While the Rule imposes recordkeeping requirements, most
manufacturers and their testing laboratories keep their testing-related
records in the ordinary course of business. Staff estimates that no
more than one additional hour per year per manufacturer is necessary to
comply with this requirement, for an annual recordkeeping burden of
approximately 150 hours (150 manufacturers x 1 hour).
Installers are required to show the manufacturers' insulation fact
sheet to retail consumers before purchase. They must also disclose
information in contracts or receipts concerning the R-value and the
amount of insulation to install. Staff estimates that two minutes per
sales transaction is sufficient to comply with these requirements.
Approximately 2,000,000 retrofit insulations (an industry source's
estimate) are installed by approximately 1,615 installers per year,
and, thus, the related annual burden total is approximately 66,667
hours (2,000,000 sales transactions x 2 minutes). Staff anticipates
that one hour per year per installer is sufficient to cover required
disclosures in advertisements and other promotional materials. Thus,
the burden for this requirement is approximately 1,615 hours per year.
In addition, installers must keep records that indicate the
substantiation relied upon for savings claims. The additional time to
comply with this requirement is minimal--approximately 5 minutes per
year per installer--for a total of approximately 135 hours.
New home sellers must make contract disclosures concerning the
type, thickness, and R-value of the insulation they install in each
part of a new home. Staff estimates that no more than 30 seconds per
sales transaction is required to comply with this requirement, for a
total annual burden of approximately 9,783 hours (an estimated
1,174,000 new home sales per year \1\ x 30 seconds). New home sellers
who make energy savings claims must also keep records regarding the
substantiation relied upon for those claims. Staff believes that the 30
seconds covering disclosures would also encompass this recordkeeping
element.
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\1\ See Table 3b on housing starts for privately owned units for
2016 at https://www.census.gov/construction/nrc/pdf/newresconst_201706.pdf.
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The Rule requires that the approximately 25,000 retailers who sell
home insulation make fact sheets available to consumers before
purchase. This can be accomplished by, for example, placing copies in a
display rack or keeping copies in a binder on a service desk with an
appropriate notice. Replenishing or replacing fact sheets should
require no more than approximately one hour per year per retailer, for
a total of 25,000 annual hours, industry-wide.
The Rule also requires specific disclosures in advertisements or
other

[[Page 47209]]

promotional materials to ensure that the claims are fair and not
deceptive. This burden is very minimal because retailers typically use
advertising copy provided by the insulation manufacturer, and even when
retailers prepare their own advertising copy, the Rule provides some of
the language to be used. Accordingly, approximately one hour per year
per retailer should suffice to meet this requirement, for a total
annual burden of approximately 25,000 hours.
Retailers who make energy savings claims in advertisements or other
promotional materials must keep records that indicate the
substantiation they are relying upon. Because few retailers make these
types of promotional claims and because the Rule permits retailers to
rely on the insulation manufacturer's substantiation data for any
claims that are made, the additional recordkeeping burden is de
minimis. The time calculated for disclosures, above, would be more than
adequate to cover any burden imposed by this recordkeeping requirement.
To summarize, staff estimates that the Rule imposes a total of
131,740 burden hours, as follows: 150 recordkeeping and 3,390 testing
and disclosure hours for manufacturers; 135 recordkeeping and 68,282
disclosure hours for installers; 9,783 disclosure hours for new home
sellers; and 50,000 disclosure hours for retailers. The estimated total
burden is approximately 131,740 burden hours.
Estimated annual cost burden: $2,616,943 (solely related to labor
costs).
The total annual labor cost for the Rule's information collection
requirements is approximately $2,616,943, derived as follows:
Approximately $858 for testing, based on 30 hours for manufacturers (30
hours x $28.61 per hour for skilled technical personnel); $4,284 for
manufacturers' and installers' compliance with the Rule's recordkeeping
requirements, based on 285 hours (285 hours x $15.03 per hour for
clerical personnel); $50,501 for manufacturers' compliance with third-
party disclosure requirements, based on 3,360 hours (3,360 hours x
$15.03 per hour for clerical personnel); and $2,561,300 for disclosure
compliance by installers, new home sellers, and retailers (128,065
hours x $20 per hour for sales persons).\2\
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\2\ The wage rates for engineering technicians, except drafters
(skilled technical personnel), file clerks (clerical personnel), and
sales and related occupations (sales persons) are based on recent
data from the Bureau of Labor Statistics Occupational Employment
Statistics Survey.
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There are no significant current capital or other non-labor costs
associated with this Rule. Because the Rule has been in effect since
1980, members of the industry are familiar with its requirements and
already have in place the equipment for conducting tests and storing
records. New products are introduced infrequently. Because the required
disclosures are placed on packaging or on the product itself, the
Rule's additional disclosure requirements do not cause industry members
to incur any significant additional non-labor associated costs.

Request for Comment

You can file a comment online or on paper. December 11, 2017. Write
``R-value Rule: FTC File No. R811001'' 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 https://www.ftc.gov/policy/public-comments.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/rvaluerulepra1 by following the instructions on the web based form.
If this Notice appears at https://www.regulations.gov, you also may
file a comment through that Web site.
If you file your comment on paper, write ``R-value Rule: FTC File
No. R811001'' on your comment and on the envelope, and mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex C),
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, Washington, DC 20024. If
possible, submit your paper comment to the Commission by courier or
overnight service.
Because your comment will be placed on the publicly accessible FTC
Web site at www.ftc.gov, you are solely responsible for making sure
that your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
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)--including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on the public FTC Web site--as legally required by FTC Rule
4.9(b)--we cannot redact or remove your comment from the FTC Web site,
unless you submit a confidentiality request that meets the requirements
for such treatment under FTC Rule 4.9(c), and the General Counsel
grants that request.
Visit the Commission Web site at https://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 December 11,
2017. You can find more information, including routine uses permitted
by the Privacy Act, in the Commission's privacy policy, at https://www.ftc.gov/site-information/privacy-policy.

David C. Shonka,
Acting General Counsel.
[FR Doc. 2017-21882 Filed 10-10-17; 8:45 am]
BILLING CODE 6750-01-P

47208 Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices

That clearance expires on January 31, through the use of appropriate manufacturer is necessary to comply
2018. automated, electronic, mechanical, or with this requirement, for an annual
DATES: Comments must be submitted by other technological collection recordkeeping burden of approximately
December 11, 2017. techniques or other forms of information 150 hours (150 manufacturers × 1 hour).
technology, e.g., permitting electronic Installers are required to show the
ADDRESSES: Interested parties may file a
submission of responses. manufacturers’ insulation fact sheet to
comment online or on paper by
The R-value Rule establishes uniform retail consumers before purchase. They
following the instructions in the
standards for the substantiation and must also disclose information in
Request for Comments part of the
disclosure of accurate, material product contracts or receipts concerning the R-
SUPPLEMENTARY INFORMATION section
information about the thermal value and the amount of insulation to
below. Write ‘‘R-value Rule: FTC File
performance characteristics of home install. Staff estimates that two minutes
No. R811001’’ on your comment, and
insulation products. The R-value of an per sales transaction is sufficient to
file your comment online at https://
insulation signifies the insulation’s comply with these requirements.
ftcpublic.commentworks.com/ftc/rvalue
degree of resistance to the flow of heat. Approximately 2,000,000 retrofit
rulepra1 by following the instructions
This information tells consumers how insulations (an industry source’s
on the web-based form. If you prefer to
well a product is likely to perform as an estimate) are installed by approximately
file your comment on paper, mail your
insulator and allows consumers to 1,615 installers per year, and, thus, the
comment to the following address:
determine whether the cost of the related annual burden total is
Federal Trade Commission, Office of the
insulation is justified. approximately 66,667 hours (2,000,000
Secretary, 600 Pennsylvania Avenue
NW., Suite CC–5610 (Annex J), R-Value Rule Burden Statement sales transactions × 2 minutes). Staff
Washington, DC 20580, or deliver your anticipates that one hour per year per
Estimated annual hours burden: installer is sufficient to cover required
comment to the following address: 131,740 hours.
Federal Trade Commission, Office of the disclosures in advertisements and other
The Rule’s requirements include promotional materials. Thus, the burden
Secretary, Constitution Center, 400 7th product testing, recordkeeping, and
Street SW., 5th Floor, Suite 5610 for this requirement is approximately
third-party disclosures on labels, fact 1,615 hours per year. In addition,
(Annex J), Washington, DC 20024. sheets, advertisements, and other installers must keep records that
FOR FURTHER INFORMATION CONTACT: promotional materials. Based on
Requests for additional information indicate the substantiation relied upon
information provided by members of the for savings claims. The additional time
should be addressed to Hampton insulation industry, staff estimates that
Newsome, Attorney, Division of to comply with this requirement is
the Rule affects: (1) 150 insulation minimal—approximately 5 minutes per
Enforcement, Bureau of Consumer manufacturers and their testing
Protection, Federal Trade Commission, year per installer—for a total of
laboratories; (2) 1,615 installers who sell approximately 135 hours.
Mail Code CC–9528, 600 Pennsylvania home insulation; (3) 125,000 new home New home sellers must make contract
Ave. NW., Washington, DC 20580, (202) builders/sellers of site-built homes and disclosures concerning the type,
326–2889. approximately 5,500 dealers who sell thickness, and R-value of the insulation
SUPPLEMENTARY INFORMATION: Under the manufactured housing; and (4) 25,000 they install in each part of a new home.
PRA, 44 U.S.C. 3501–3521, federal retail sellers who sell home insulation Staff estimates that no more than 30
agencies must obtain approval from for installation by consumers. seconds per sales transaction is required
OMB for each collection of information Under the Rule’s testing requirements, to comply with this requirement, for a
they conduct or sponsor. ‘‘Collection of manufacturers must test each insulation total annual burden of approximately
information’’ means agency requests or product for its R-value. Based on past 9,783 hours (an estimated 1,174,000
requirements that members of the public industry input, staff estimates that the new home sales per year 1 × 30 seconds).
submit reports, keep records, or provide test takes approximately two hours.
New home sellers who make energy
information to a third party. 44 U.S.C. Approximately 15 of the 150 insulation
savings claims must also keep records
3502(3); 5 CFR 1320.3(c). As required by manufacturers in existence introduce
regarding the substantiation relied upon
section 3506(c)(2)(A) of the PRA, the one new product each year. Their total
for those claims. Staff believes that the
FTC is providing this opportunity for annual testing burden is therefore
30 seconds covering disclosures would
public comment before requesting that approximately 30 hours.
also encompass this recordkeeping
OMB extend the existing clearance for Staff further estimates that most
element.
the information collection requirements manufacturers require an average of
The Rule requires that the
contained in the Commission’s R-value approximately 20 hours per year
approximately 25,000 retailers who sell
Rule, 16 CFR part 460 (OMB Control regarding third-party disclosure
home insulation make fact sheets
Number 3084–0109). requirements in advertising and other
available to consumers before purchase.
The FTC invites comments on: (1) promotional materials. Only the five or
This can be accomplished by, for
Whether the proposed collection of six largest manufacturers require
example, placing copies in a display
information is necessary for the proper additional time, approximately 80 hours
rack or keeping copies in a binder on a
performance of the functions of the each. Thus, the annual third-party
service desk with an appropriate notice.
agency, including whether the disclosure burden for manufacturers is
Replenishing or replacing fact sheets
information will have practical utility; approximately 3,360 hours [(144
should require no more than
manufacturers × 20 hours) + (6
asabaliauskas on DSKBBXCHB2PROD with NOTICES

(2) the accuracy of the agency’s estimate
approximately one hour per year per
of the burden of the proposed collection manufacturers × 80 hours)].
retailer, for a total of 25,000 annual
of information, including the validity of While the Rule imposes
hours, industry-wide.
the methodology and assumptions used; recordkeeping requirements, most
The Rule also requires specific
(3) ways to enhance the quality, utility, manufacturers and their testing
disclosures in advertisements or other
and clarity of the information to be laboratories keep their testing-related
collected; and (4) ways to minimize the records in the ordinary course of 1 See Table 3b on housing starts for privately
burden of the collection of information business. Staff estimates that no more owned units for 2016 at https://www.census.gov/
on those who are to respond, including than one additional hour per year per construction/nrc/pdf/newresconst_201706.pdf.

VerDate Sep<11>2014 17:58 Oct 10, 2017 Jkt 244001 PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 E:\FR\FM\11OCN1.SGM 11OCN1

Document Created: 2018-10-25 10:01:37
Document Modified: 2018-10-25 10:01:37

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 submitted by December 11, 2017.
Contact		Requests for additional information
FR Citation		82 FR 47207