[Federal Register: October 23, 2006 (Volume 71, Number 204)]
[Notices]
[Page 62109-62111]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23oc06-55]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Comment Request
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Notice.
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SUMMARY: The FTC is soliciting public comments on proposed information
requests to food and beverage companies and quick service restaurants.
These comments will be considered before the FTC submits a request for
Office of Management and Budget (OMB) review under the Paperwork
Reduction Act (PRA), 44 U.S.C. 3501-3520, of compulsory process orders
to major food and beverage manufacturers and quick service restaurant
companies in order to obtain information from those companies
concerning, among other things, their marketing activities and
expenditures targeted toward children and adolescents.
DATES: Comments on the proposed information requests must be received
on or before December 21, 2006.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Food Industry Marketing to Children Report:
Paperwork Comment; FTC File No. P064504'' to facilitate the
organization of comments. A comment filed in paper form should include
this reference both in the text and on the envelope, and should be
mailed or delivered, with two complete copies, to the following
address: Federal Trade Commission/Office of the Secretary, Room H-135
(Annex R), 600 Pennsylvania Avenue, NW., Washington, DC 20580. Because
paper mail in the Washington area and at the Commission is subject to
delay, please consider submitting your comments in electronic form, as
prescribed below. However, if the comment contains any material for
which confidential treatment is requested, it must be filed in paper
form, and the first page of the document must be clearly labeled
``Confidential.''\1\ The FTC is requesting that any comment filed in
paper form be sent by courier or overnight service, if possible.
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\1\ Any request for confidential treatment, including the
factual and legal basis for the request, must accompany the comment
and must identify the specific portions of the comment to be
withheld from the public record. The request will be granted or
denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
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Comments filed in electronic form should be submitted by using the
following Weblink: https://secure.commentworks[fxsp0].com/
foodmarketing[fxsp0]paperworkcomment (and following the instructions on
the Web-based form). To ensure that the Commission considers an
electronic comment, you must file it on the Web-based form at the
Weblink https://secure[fxsp0].commentworks[fxsp0].com/
foodmarketing[fxsp0]paperworkcomment. If this notice appears at http://www.regulations.gov
, you may also file an electronic comment through
that Web site. The Commission will consider all comments that
regulations.gov forwards to it.
The Federal Trade Commission Act, 15 U.S.C. 42-58 (FTC Act), and
other laws the Commission administers permit the collection of public
comments to consider and use as appropriate. All timely and responsive
public comments, whether filed in paper or electronic form, will be
considered by the Commission, and will be available to the public on
the FTC Web site, to the extent practicable, at http://www.ftc.gov. As
a matter of discretion, the FTC makes every effort to remove home
contact information for individuals from the public comments it
receives before placing those comments on the FTC Web site. More
information, including routine uses permitted by the Privacy Act, may
be found in the FTC's privacy policy, at http://www.ftc.gov/[fxsp0]ftc/
privacy.htm.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be addressed to Mary Johnson, 202-326-3115, or Rielle Montague,
202-326-2645, Attorneys, Division of Advertising Practices, Bureau of
Consumer Protection, Federal Trade Commission. The FTC staff contacts
can be reached by mail at: Federal Trade Commission, 600 Pennsylvania
Avenue, NW., NJ-3212, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: On November 22, 2005, the President signed a
bill appropriating funds for the Commission for FY 2006. Public Law
109-108. The Conference Report (H.R. Rep. No. 109-272 (2005)) for this
law incorporates by reference language from the Senate Report (S. Rep.
No. 109-88 (2005)), instructing the FTC to prepare a report on food
industry marketing activities and expenditures targeted to children and
adolescents.\2\ To prepare the report, the Commission needs relevant
information, including empirical data, on the nature and extent of
marketing activities and expenditures targeted to children and
adolescents.
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\2\ The Senate Report requests that the FTC's report: Include an
analysis of commercial advertising time on television, radio, and in
print media; in-store marketing; direct payments for preferential
shelf placement; events; promotions on packaging; all Internet
activities; and product placements in television shows, movies, and
video games.
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On March 1, 2006, the FTC published a notice in the Federal
Register requesting relevant information. 71 FR 10535. In response, the
Commission received comments from five food industry associations, two
public health advocacy organizations, a marketing trade organization,
and one individual.\3\ In general, the comments suggested resources
from which relevant information may be available \4\ and points to
consider in developing the report. However, the comments presented
minimal information, especially empirical data, on the nature and
extent of marketing activities and expenditures targeted to children
and adolescents. The Commission thus
[[Page 62110]]
requires additional data and information in order to complete the
report.
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\3\ The comments are available at http://www.ftc.gov/os/comments/foodmarketingstudy/index.htm
.
\4\ Many of the suggested resources charge substantial amounts
for information. Public Law 109-108 did not contain any specific
funding to acquire information for this study.
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The FTC has the authority to compel production of this data and
information from food and beverage companies and quick service
restaurants under Section 6(b) of the FTC Act, 15 U.S.C. 46(b). The
Commission intends to send its information requests to the ultimate
parents of these types of companies to assure that no relevant data
from affiliated or subsidiary companies goes unreported. Because the
number of separately incorporated companies affected by the
Commission's requests will exceed ten entities, the Commission intends
to seek OMB clearance under the Paperwork Reduction Act (PRA) before
sending any information requests.
Under the PRA, 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 the PRA, 44
U.S.C. 3506(c)(2)(A), the FTC is providing this opportunity for public
comment before requesting that OMB grant the clearance for the proposed
information collection requirements.
The FTC invites comments on: (1) Whether the proposed collections
of information are necessary for the proper performance of the
functions of the FTC, 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. All comments should be filed as
prescribed in the ADDRESSES section above, and must be received on or
before December 21, 2006.
A. Information Requests to Food and Beverage Industry Members
1. Description of the Collection of Information and Proposed Use
The FTC proposes to send information requests to approximately
fifty (50) ultimate parent companies of food and beverage and quick
service restaurant companies in the United States (``industry
members''). The companies that are likely to receive these information
requests are those selling the categories of food and beverage products
that appear to be advertised to children most frequently. Specifically,
these categories of products are likely to include quick service
restaurant items, breakfast cereals, snack foods, candy and gum,
carbonated and noncarbonated beverages, frozen and chilled desserts,
prepared meals, and dairy products, including milk and yogurt. In
addition, the FTC proposes to collect information from major marketers
of fruits and vegetables to ensure that data are gathered regarding
efforts to promote consumption of these foods among children and
adolescents.
The information requests will seek data regarding, among other
things: (1) The types of foods marketed to children and adolescents;
(2) the types of measured \5\ and unmeasured \6\ media techniques used
to market products to children and adolescents; (3) the amount spent to
communicate marketing messages in measured and unmeasured media to
children and adolescents; and (4) the amount of commercial advertising
time in measured media directed to children and adolescents that
results from this spending.
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\5\ ``Measured media'' includes methods such as television,
print (magazine and newspaper), radio, outdoor advertising, and some
forms of Internet advertising.
\6\ ``Unmeasured media'' includes methods such as in-store
marketing (including shelf placement), events, package promotions,
and product placement in entertainment media (including television
shows, movies, video games, and music recordings).
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It should be noted that subsequent to this notice, any destruction,
removal, mutilation, alteration, or falsification of documentary
evidence that may be responsive to this information collection within
the possession or control of a person, partnership, or corporation
subject to the FTC Act may be subject to criminal prosecution. 15
U.S.C. 50; see also 18 U.S.C. 1505.
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), bars the Commission
from publicly disclosing trade secrets or confidential commercial or
financial information it receives from persons pursuant to, among other
methods, special orders authorized by Section 6(b) of the FTC Act. Such
information also would be exempt from disclosure under the Freedom of
Information Act (5 U.S.C. 552(b)(4)). Moreover, under Section 21(c) of
the FTC Act, 15 U.S.C. 57b-2(c), a submitter who designates a
submission as confidential is entitled to 10 days' advance notice of
any anticipated public disclosure by the Commission, assuming that the
Commission has determined that the information does not, in fact,
constitute 6(f) material. Although materials covered under one or more
of these various sections are protected by stringent confidentiality
constraints, the FTC Act and the Commission's rules authorize
disclosure in limited circumstances (e.g., official requests by
Congress, requests from other agencies for law enforcement purposes,
and administrative or judicial proceedings). Even in those limited
contexts, however, the Commission's rules may afford protections to the
submitter, such as advance notice to seek a protective order in
litigation. See 15 U.S.C. 57b-2; 16 CFR 4.9-4.11.
Finally, the information presented in the report will not reveal
company-specific data. See 15 U.S.C. 57b-2(d)(1)(B). Rather, the
Commission anticipates providing information on an anonymous or
aggregated basis, in a manner sufficient to protect individual
companies' confidential information, to provide a factual summary of
food industry marketing activities and expenditures targeted to
children and adolescents.
2. Estimated Hours Burden
The FTC staff's estimate of the hours burden is based on the time
required to respond to each information request. The Commission intends
to issue the information requests to approximately 50 parent companies
of food and beverage and quick service restaurant advertisers. Because
these companies vary in size, in the number of products that they
market to children and adolescents, and in the extent and variety of
their marketing and advertising, the FTC staff has provided a range of
the estimated hours burden.
Based upon its knowledge of the industries, the staff estimates, on
average, that the time required to gather, organize, format, and
produce such responses ranges between 80-120 hours per information
request for companies that market a single category of product to
children and adolescents. Staff estimates that companies that market
multiple categories of products to children and adolescents would spend
between 120-300 hours to respond to an information request. The total
estimated burden per company is based on the following:
Identify, obtain, and organize sales information, prepare response:
15-35 hours.
[[Page 62111]]
Identify, obtain, and organize information on advertising and
marketing expenditures, prepare response: 15-75 hours.
Identify, obtain, and organize media placement information, prepare
response: 40-160 hours.
Identify, obtain, and organize information regarding marketing
policies, prepare response: 10-30 hours.
Total 80-300 hours.
Assuming that approximately 35 information requests are sent to
parent companies that market a single category of product to children
and adolescents, staff estimates a total burden for these companies of
3,500 hours (35 companies x 100 average burden hours per company).
Assuming that approximately 15 information requests are sent to parent
companies that market multiple categories of products to children and
adolescents, staff estimates a total of approximately 3,150 hours (15
companies x 210 average burden hours per company). Thus, the staff's
estimate of the total burden is approximately 6,650 hours. These
estimates include any time spent by separately incorporated
subsidiaries and other entities affiliated with the ultimate parent
company that has received the information request.
3. Estimated Cost Burden
It is difficult to calculate with precision the labor costs
associated with this data production, as they entail varying
compensation levels of management and/or support staff among companies
of different sizes. Financial, legal, marketing, and clerical personnel
may be involved in the information collection process. The FTC staff
has assumed that professional personnel and outside legal counsel will
handle most of the tasks involved in gathering and producing responsive
information, and has applied an average hourly wage of $250/hour for
their labor. Thus, the staff estimates that the total labor costs for
the information requests will be $1,662,500 (($250 x 3,500 hours for
companies that market a single category) + ($250 x 3,150 hours for
companies that market multiple categories)).
FTC staff estimates that the capital or other non-labor costs
associated with the information requests are minimal. Although the
information requests may necessitate that industry members maintain the
requested information provided to the Commission, they should already
have in place the means to compile and maintain business records.
John D. Graubert,
Acting General Counsel.
[FR Doc. E6-17666 Filed 10-20-06; 8:45 am]
BILLING CODE 6750-01-P