[Federal Register Volume 89, Number 59 (Tuesday, March 26, 2024)]
[Notices]
[Pages 20970-20972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06354]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comments on its proposal to extend for an additional
three years the current Paperwork Reduction Act (``PRA'') clearance for
information collection requirements contained in the rules and
regulations under the Fur Products Labeling Act (``Fur Rules'' or
``Rules''). That clearance expires on October 31, 2024.
DATES: Comments must be filed by May 28, 2024.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Fur Rules; PRA
Comment: FTC File No. P072108'' on your comment, and file your comment
online at https://www.regulations.gov 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.
FOR FURTHER INFORMATION CONTACT: Jock K. Chung, Attorney, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
Mail Code CC-9528, 600 Pennsylvania Avenue NW, Washington, DC 20580,
(202) 326-2984.
SUPPLEMENTARY INFORMATION:
Title of Collection: Rules and Regulations under the Fur Products
Labeling Act, 16 CFR part 301.
OMB Control Number: 3084-0099.
Type of Review: Extension without change of currently approved
collection.
Abstract: The Fur Products Labeling Act (``Fur Act'') \1\ prohibits
the misbranding and false advertising of fur products. The Fur Rules
establish disclosure requirements that assist consumers in making
informed purchasing decisions, and recordkeeping requirements that
assist the Commission in enforcing the Rules. The Rules also provide a
procedure for exemption from certain disclosure provisions under the
Fur Act.
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\1\ 15 U.S.C. 69 et seq.
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Likely Respondents: Retailers, manufacturers, processors, and
importers of furs and fur products.
Frequency of Response: Third party disclosure; recordkeeping
requirement.
Estimated Annual Burden Hours: 180,639 hours (45,720 hours for
recordkeeping + 134,919 hours for disclosure).
Recordkeeping: 45,720 hours [500 retailers incur an average
recordkeeping burden of about 18 hours per year (9,000 hours total);
137 manufacturers incur an average recordkeeping burden of about 60
hours per year (8,220 hours total); and 950 importers of furs and fur
products incur an average recordkeeping burden of 30 hours per year
(28,500 hours total)].
Disclosure: 134,919 hours [(114,886 hours for labeling + 33 hours
for invoices + 20,000 hours for advertising)].
Estimated Annual Cost Burden: $3,555,329 (rounded to the nearest
whole dollar amount).
As required by section 3506(copyright)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), 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 Fur
Rules.
Burden Statement
FTC staff's burden estimates are based on data from the Department
of Labor's Bureau of Labor Statistics (BLS) and data or other input
from the Fur Industry Council of America. The relevant information
collection requirements in these Rules and FTC staff's corresponding
burden estimates follow. The estimates address the number of hours
needed and the labor costs incurred to comply with the requirements.
The Fur Act \2\ prohibits the misbranding and false advertising of
fur products. The Fur Rules establish disclosure requirements that
assist consumers in making informed purchasing decisions, and
recordkeeping requirements that assist the Commission in enforcing the
Rules. The Rules also provide a procedure for exemption from certain
disclosure provisions under the Fur Act.
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\2\ Id.
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Estimated Annual Hours Burden: 180,639 hours (45,720 hours for
recordkeeping + 134,919 hours for disclosure).
Recordkeeping: The Fur Rules require that retailers, manufacturers,
processors, and importers of furs and fur products keep certain records
in addition to those they may keep in the ordinary course of business.
FTC staff estimates that: (1) 500 retailers incur an average
recordkeeping burden of about 18 hours per year (9,000 hours total);
(2) 137 manufacturers incur an average recordkeeping burden of about 60
hours per year (8,220 hours total); and (3) 950 importers of furs and
fur products incur an average recordkeeping burden of 30 hours per year
(28,500 hours total). The combined recordkeeping burden for the
industry is approximately 45,720 hours annually.
Disclosure: FTC staff estimates that 637 respondents (137
manufacturers + 500 retail sellers of fur garments) each require an
average of 30 hours per year to determine label content (19,110 hours
total), and an average of 30 hours per year to draft and order labels
(19,110 hours total). FTC staff estimates that the total number of
garments subject to the fur labeling requirements annually is
approximately 1,840,000.\3\ FTC staff estimates that for approximately
50 percent of these garments (920,000) labels are attached manually,
requiring approximately four minutes per garment for a total of 61,333
hours annually. For the remaining 920,000, the process of attaching
labels is semi-automated and requires an average of approximately one
minute per item, for a total of 15,333 hours. Thus, the total burden
for
[[Page 20971]]
attaching labels is 76,666 hours, and the total burden for labeling
garments is 38,220 hours per year (19,110 hours to determine label
content + 19,110 hours to draft and order labels).
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\3\ This estimate is half the prior estimate. FTC staff bases
this estimate on an assessment that the overall market for fur
products appears to have halved. For example, the number of fur
retailers has declined from 950 to 500. The total number of imported
fur garments, fur-trimmed garments, and fur accessories is 3,562,242
annually based on U.S. government import statistics for Harmonized
Tariff Schedule (HTS) Number 4303. However, this figure includes
many products that contain fur but are not covered by the Fur Act
and Rules, such as rabbit feet, or purses with fur. Estimated
domestic production totals 90,000.
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FTC staff estimates that the incremental burden associated with the
Fur Rules' invoice disclosure requirement, beyond the time that would
be devoted to preparing invoices in the absence of the Rules, is
approximately one minute per invoice for pelts.\4\ The invoice
disclosure requirement applies to fur pelts, which are generally sold
in groups of at least 1100, on average. Based on information from the
Fur Industry Council of America, staff estimates total sales of
2,156,491 pelts annually. Thus, the invoice disclosure requirement
entails an estimated total burden of 33 hours (1,960 total invoices x
one minute).
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\4\ The invoice disclosure burden for PRA purposes excludes the
time that respondents would spend for invoicing, apart from the Fur
Rules, in the ordinary course of business. See 5 CFR 1320.3(b)(2).
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FTC staff estimates that the Fur Rules' advertising disclosure
requirements impose an average burden of 40 hours per year for each of
the approximately 500 domestic fur retailers, or a total of 20,000
hours.
Thus, FTC staff estimates the total disclosure burden to be
approximately 134,919 hours.
Estimated Annual Cost Burden: $3,555,329 (rounded to the nearest
whole dollar amount). The chart below summarizes the total estimated
costs.
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Task Hourly rate Burden hours Labor costs
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Determine label content................................ \5\ $31.49 19,110 $601,773.90
Draft and order labels................................. \6\ 20.46 19,110 390,990.60
Attach labels.......................................... \7\ 13.00 76,666 996,658.00
Invoice disclosures.................................... \8\ 20.46 33 675.18
Prepare advertising disclosures........................ \9\ 31.49 20,000 629,800.00
Recordkeeping.......................................... \10\ 20.46 45,720 935,431.20
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Total.............................................. ................. ................. 3,555,328.88
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FTC staff believes that there are no current start-up costs or
other capital costs associated with the Fur Rules. Because the labeling
of fur products has been an integral part of the manufacturing process
for decades, manufacturers have in place the capital equipment
necessary to comply with the Rules' labeling requirements. Industry
sources indicate that much of the information required by the Fur Act
and Rules would be included on the product label even absent the Rules.
Similarly, invoicing, recordkeeping, and advertising disclosures are
tasks performed in the ordinary course of business so that covered
firms would incur no additional capital or other non-labor costs as a
result of the Act or the Rules.
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\5\ The wage rate for supervisors of office and administrative
support workers is based on data through May 2022 from the Bureau of
Labor Statistics Occupational Employment Statistics Survey at
https://www.bls.gov/news.release/ocwage.htm (released on April 25,
2023).
\6\ The wage rate for correspondence clerks is based on recent
data from the Bureau of Labor Statistics Occupational Employment
Statistics Survey at https://www.bls.gov/news.release/ocwage.htm.
\7\ Per industry sources, most fur labeling is done in the
United States. This rate is reflective of an average domestic hourly
wage for such tasks performed in the United States, which is derived
from recent BLS statistics.
\8\ See supra note 6.
\9\ See supra note 5.
\10\ See supra note 6.
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Request for Comment
Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the disclosure and recordkeeping requirements
are necessary, including whether the information will be practically
useful; (2) the accuracy of our burden estimates, including whether the
methodology and assumptions used are valid; (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.
For the FTC to consider a comment, we must receive it on or before
May 28, 2024. Your comment, including your name and your state, will be
placed on the public record of this proceeding, including the https://www.regulations.gov website.
You can file a comment online or on paper. Due to heightened
security screening, postal mail addressed to the Commission will be
subject to delay. We encourage you to submit your comments online
through the https://www.regulations.gov website.
If you file your comment on paper, write ``Fur Rules; PRA Comment:
FTC File No. P072108'' on your comment and on the envelope, and mail it
to the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580.
Because your comment will become publicly available at https://www.regulations.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 (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) 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
[[Page 20972]]
has been posted publicly at www.regulations.gov, we cannot redact or
remove your comment 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.
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 May 28, 2024.
For information on the Commission's privacy policy, including routine
uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2024-06354 Filed 3-25-24; 8:45 am]
BILLING CODE 6750-01-P