FR Doc E9-3056

[Federal Register: February 12, 2009 (Volume 74, Number 28)]
[Notices]
[Page 7061-7065]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe09-46]

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FEDERAL TRADE COMMISSION

Agency Information Collection Activities; Submission for OMB
Review; 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'') (44 U.S.C.
3501-3520). The FTC is seeking public comments on its proposal to
extend through February 28, 2012, the current PRA clearances for
information collection requirements contained in four product labeling
rules enforced by the Commission. Those clearances expire on February
28, 2009.

DATES: Comments must be received by March 16, 2009.

ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Apparel
Rules: FTC File No. P074201'' to facilitate the organization of
comments. Please note that comments will be placed on the public record
of this proceeding--including on the publicly accessible FTC website,
at (http://www.ftc.gov/os/publiccomments.shtm) -- and therefore should
not include any sensitive or confidential information. In particular,
comments should not include any sensitive personal information, such as
an individual'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. Comments also should not include any sensitive
health information, such as medical records or other individually
identifiable health information. In addition, comments should not
include any ``[t]rade secrets and commercial or financial information
obtained from a person and privileged or confidential. . . .,'' as
provided in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and
Commission Rule 4.10(a)(2), 16 CFR 4.10(a)(2). 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).\1\
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\1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be
accompanied by an explicit request for confidential treatment,
including the factual and legal basis for the request, 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 FTC Rule 4.9(c), 16 CFR 4.9(c).
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Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted by using the following weblink: (https://

[[Page 7062]]

secure.commentworks.com/ftc-apparelrulespra2) (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.commentworks.com/ftc-apparelrulespra2).
If this Notice appears at (http://www.regulations.gov/search/
index.jsp), you may also file an electronic comment through that
website. The Commission will consider all comments that regulations.gov
forwards to it. You may also visit the FTC website at http://
www.ftc.govto read the Notice and the news release describing it.
A comment filed in paper form should include the ``Apparel Rules:
FTC File No. P074201'' reference both in the text and on the envelope,
and should be mailed or delivered to the following address: Federal
Trade Commission/Office of the Secretary, Room H-135 (Annex J), 600
Pennsylvania Avenue, NW, Washington, DC 20580. The FTC is requesting
that any comment filed in paper form be sent by courier or overnight
service, if possible, because U.S. postal mail in the Washington area
and at the Commission is subject to delay due to heightened security
precautions.
Comments should additionally be submitted to: Office of Management
and Budget, Attention: Desk Officer for the Federal Trade Commission.
Comments should be submitted via facsimile to (202) 395-5167 because
U.S. Postal Mail is subject to lengthy delays due to heightened
security precautions.
The Federal Trade Commission Act (``FTC Act'') and other laws 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,
whether filed in paper or electronic form. Comments received will be
available to the public on the FTC website, to the extent practicable,
at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of
discretion, the Commission makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC website. More information, including
routine uses permitted by the Privacy Act, may be found in the FTC's
privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed information requirements should be addressed to
Connie Vecellio and Matthew Wilshire, Attorneys, Division of
Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Ave.,
N.W., Washington, D.C. 20580, (202) 326-2996.

SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act (``PRA''),
44 U.S.C. 3501-3520, federal agencies must obtain approval from OMB for
each collection of information they conduct or sponsor. On October 31,
2008, the FTC sought comment on the information collection requirements
associated with the Commission's regulations under the Fur Act, 16 CFR
Part 301 (OMB Control Number 3084-0099); regulations under the Wool
Act, 16 CFR Part 300 (OMB Control Number 3084-0100); regulations under
the Textile Act, 16 CFR Part 303 (OMB Control Number 3084-0101); and
the Care Labeling Rule, 16 CFR 423 (OMB Control Number 3084-0103).\2\
No comments were received. Pursuant to the OMB regulations that
implement the PRA (5 CFR Part 1320), the FTC is providing this second
opportunity for public comment while seeking OMB approval to extend the
existing paperwork clearance for the rules. All comments should be
filed as prescribed in the ADDRESSES section above, and must be
received on or before March 16, 2009.
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\2\ 73 FR 64948.
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Staff's burden estimates for the four rules in question are based
on data from the Department of Commerce's Bureau of the Census, the
International Trade Commission, the Department of Labor's Bureau of
Labor Statistics (``BLS''), and data or other input from industry
sources. The relevant information collection requirements within these
rules and corresponding burden estimates follow.

1. Regulations under the Fur Products Labeling Act, 15 U.S.C. 69 et
seq. (``Fur Act''), 16 CFR Part 301 (OMB Control Number: 3084-0099).

The Fur Act prohibits the misbranding and false advertising of fur
products. The Fur Act Regulations, 16 CFR 301, establish disclosure
requirements that assist consumers in making informed purchasing
decisions, and recordkeeping requirements that assist the Commission in
enforcing these regulations. The Regulations also provide a procedure
for exemption from certain disclosure provisions under the Fur Act.
Estimated annual hours burden: 121,000 hours, rounded to the
nearest thousand (50,414 hours for recordkeeping + 70,226 hours for
disclosure).
Recordkeeping: The Regulations 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. Staff estimates that 1,150 retailers incur an
average recordkeeping burden of about 13 hours per year (14,950 hours
total); 82 manufacturers and fur processors combined incur an average
recordkeeping burden of about 52 hours per year (4,264 total); and
1,200 importers of furs and fur products incur an average recordkeeping
burden of 26 hours per year (31,200 hours total). The combined
recordkeeping burden for the industry is approximately 50,414 hours
annually.
Disclosure: Staff estimates that 1,220 respondents (70
manufacturers + 1,150 retail sellers of fur garments) each require an
average of 20 hours per year to determine label content (24,400 hours
total), and an average of five hours per year to draft and order labels
(6,100 hours total). Staff estimates that the total number of garments
subject to the fur labeling requirements annually is approximately
886,577.\3\ Staff estimates that for approximately 50 percent of these
garments (443,289) labels are attached manually, requiring
approximately four minutes per garment for a total of 29,553 hours
annually. For the remaining 443,288, the process of attaching labels is
semi-automated and requires an average of approximately two seconds per
item, for a total of 246 hours. Thus, the total burden for attaching
labels is 29,799 hours, and the total burden for labeling garments is
60,299 hours per year (24,400 hours to determine label content + 6,100
hours to draft and order labels + 29,799 hours to attach labels).
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\3\ The total number of fur garments, fur-trimmed garments, and
fur accessories is estimated to be approximately 1,019,054, based on
International Trade Commission data. Of that number, approximately
132,477 items are estimated to be exempt from the labeling
requirements pursuant to 16 CFR 301.39 (items where either the cost
of the fur trim to the manufacturer or the manufacturer's selling
price for the finished product is less than $150 are exempt).
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Staff estimates that the incremental burden associated with the
Regulations' invoice disclosure requirement, beyond the time that would
be devoted to preparing invoices in its absence, is approximately 30
seconds per invoice.\4\ The invoice disclosure requirement

[[Page 7063]]

applies to fur garments, which are generally sold individually, and fur
pelts, which are generally sold in groups of at least 50, on average.
Based on information from the International Trade Commission and the
Fur Commission USA, staff estimates a total of 8,333,865 pelts
annually. Assuming invoices are prepared for sales of 886,577 garments
and 166,677 groups (derived from an estimated 8,333,865 million pelts /
50) each of imported and domestic pelts, the invoice disclosure
requirement entails an estimated total burden of 8,777 hours (1,053,254
total invoices x 30 seconds).
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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
Act Regulations, in the ordinary course of business. See 5 CFR
1320.3(b)(2).
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Staff estimates that the Regulations' advertising disclosure
requirements impose an average burden of one hour per year for each of
the approximately 1,150 domestic fur retailers, or a total of 1,150
hours.
Thus, staff estimates the total disclosure burden to be
approximately 70,226 hours (60,299 hours for labeling + 8,777 hours for
invoices + 1,150 hours for advertising).
Estimated annual cost burden: $1,911,000, rounded to the nearest
thousand (solely relating to labor costs).

Staff believes that there are no current start-up costs or other
capital costs associated with the Regulations. 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 Regulations' labeling requirements. Industry sources
indicate that much of the information required by the Fur Act and its
implementing Regulations would be included on the product label even
absent the regulations. 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 Regulations.

2. Regulations under the Wool Products Labeling Act, 15 U.S.C. 68 et
seq. (``Wool Act''), 16 CFR Part 300 (OMB Control Number: 3084-0100).

The Wool Act prohibits the misbranding of wool products. The Wool
Act Regulations, 16 CFR 300, establish disclosure requirements that
assist consumers in making informed purchasing decisions and
recordkeeping requirements that assist the Commission in enforcing the
Regulations.
Estimated annual hours burden: 440,000 hours, rounded to the
nearest thousand (80,000 recordkeeping hours + 360,000 disclosure
hours).
Recordkeeping: Staff estimates that approximately 4,000 wool firms
are subject to the Regulations' recordkeeping requirements. Based on an
average annual burden of 20 hours per firm, the total recordkeeping
burden is 80,000 hours.
Disclosure: Approximately 8,000 wool firms, producing or importing
about 600,000,000 wool products annually, are subject to the
Regulations' disclosure requirements. Staff estimates the burden of
determining label content to be 15 hours per year per respondent, or a
total of 120,000 hours, and the burden of drafting and ordering labels
to be 5 hours per respondent per year, or a total of 40,000 hours.
Staff believes that the process of attaching labels is now fully
automated and integrated into other production steps for about 40
percent of all affected products. For the remaining 360,000,000 items
(60 percent of 600,000,000), the process is semi-automated and requires
an average of approximately two seconds per item, for a total of
200,000 hours per year. Thus, the total estimated annual burden for all
respondents is 360,000 hours (120,000 hours for determining label
content + 40,000 hours to draft and order labels + 200,000 hours to
attach labels). Staff believes that any additional burden associated
with advertising disclosure requirements would be minimal (less than
10,000 hours) and can be subsumed within the burden estimates set forth
above.
Estimated annual cost burden: $5,702,000, rounded to the nearest
thousand (solely relating to labor costs).

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Task Hourly Rate Burden Hours Labor Cost
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Determine label $22.00 120,000 $2,640,000
content
Draft and order $16.27 40,000 $650,800
labels
Attach labels $5.55 \6\ 200,000 $1,110,000
Recordkeeping $16.27 80,000 $1,301,600
TOTAL ............................. ............................. $5,702,400
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\6\ For products that are imported, this work generally is done in the country where they are manufactured.
According to information compiled by an industry trade association using data from the International Trade
Commission, the U.S. Customs Service, and the U.S. Census Bureau, approximately 95 % of apparel and other
textile products used in the United States is imported. With the remaining 5 % attributable to U.S. production
at an approximate domestic hourly wage of $9.50 to attach labels, staff has calculated a weighted average
hourly wage of $5.55 per hour attributable to U.S. and foreign labor combined. The estimated percentage of
imports supplied by particular countries is based on trade data for 2007 compiled by the Office of Textiles
and Apparel, International Trade Administration, U.S. Department of Commerce. Wages in major textile exporting
countries, factored into the above hourly wage estimate, were based on 2006 data from the U.S. Department of
Labor, Bureau of International Labor Affairs. See ``International Comparisons of Hourly Compensation Costs for
Production Workers in Manufacturing,'' Table 1, available at: http://www.bls.gov/fls/hcpwsupptabtoc.htm.

[[Page 7064]]

Staff believes that there are no current start-up costs or other
capital costs associated with the Regulations. Because the labeling of
wool products has been an integral part of the manufacturing process
for decades, manufacturers have in place the capital equipment
necessary to comply with the Regulations. Based on knowledge of the
industry, staff believes that much of the information required by the
Wool Act and its implementing regulations would be included on the
product label even absent their requirements. Similarly, 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 Regulations.

3. Regulations under The Textile Fiber Products Identification Act, 15
U.S.C. 70 et seq. (``Textile Act''), 16 CFR Part 303 (OMB Control
Number: 3084-0101).

The Textile Act prohibits the misbranding and false advertising of
textile fiber products. The Textile Act Regulations, 16 CFR 303,
establish disclosure requirements that assist consumers in making
informed purchasing decisions, and recordkeeping requirements that
assist the Commission in enforcing the Regulations. The Regulations
also contain a petition procedure for requesting the establishment of
generic names for textile fibers.
Estimated annual hours burden: approximately 8,456,000 hours,
rounded to the nearest thousand (623,400 recordkeeping hours +
7,832,842 disclosure hours).
Recordkeeping: Staff estimates that approximately 24,936 textile
firms are subject to the Textile Regulations' recordkeeping
requirements. Based on an average burden of 25 hours per firm, the
total recordkeeping burden is 623,400 hours.
Disclosure: Approximately 26,647 textile firms, producing or
importing about 21.5 billion textile fiber products annually, are
subject to the Regulations' disclosure requirements.\7\ Staff estimates
the burden of determining label content to be 20 hours per year per
respondent, or a total of 532,940 hours and the burden of drafting and
ordering labels to be 5 hours per respondent per year, or a total of
133,235 hours.\8\ Staff believes that the process of attaching labels
is now fully automated and integrated into other production steps for
about 40 percent of all affected products. For the remaining 12.9
billion items (60 percent of 21.5 billion), the process is semi-
automated and requires an average of approximately two seconds per
item, for a total of 7,166,667 hours per year. Thus, the total
estimated annual burden for all respondents is 7,832,842 hours (532,940
hours to determine label content + 133,235 hours to draft and order
labels + 7,166,667 hours to attach labels).\9\ Staff believes that any
additional burden associated with advertising disclosure requirements
or the filing of generic fiber name petitions would be minimal (less
than 10,000 hours) and can be subsumed within the burden estimates set
forth above.
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\7\ The apparent consumption of garments in the U.S. in 2007 was
20.1 billion. Staff estimates that 1 billion garments are exempt
from the Textile Act (i.e., any kind of headwear and garments made
from something other than a textile fiber product, such as leather)
or are subject to a special exemption for hosiery products sold in
packages where the label information is contained on the package.
Based on available data, staff estimates that an additional 3
billion household textile products (non-garments, such as sheets,
towels, blankets) were consumed. However, approximately 0.6 billion
of all of these combined products (garments and non-garments) are
subject to the Wool Products Labeling Act, not the Textile Fiber
Products Identification Act, because they contain some amount of
wool. Thus, the estimated net total products subject to the Textile
Fiber Products Identification Act is 21.5 billion.
\8\ In 2007, Congress amended the Wool Act to explicitly define
``cashmere'' and certain terms used to describe superfine wool
(e.g., ``Super 80s,'' ``Super 90s,'' etc.). See Pub. L. 109-428. The
Commission anticipates revising the wool Regulations to incorporate
these amendments. The Commission will seek comment on the increased
burden, if any, imposed by these changes when it announces the
revisions.
\9\ The Commission revised the Textile Act Regulations in 2006
in response to amendments to the Textile Act. See 70 Fed. Reg. 73369
(Dec. 12, 2005). These amendments concerned the placement of labels
on packages of certain types of socks and, therefore, do not place
any additional disclosure burden on covered entities.
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Estimated annual cost burden: $63,810,000, rounded to the nearest
thousand (solely relating to labor costs).

Staff believes that there are no current start-up costs or other
capital costs associated with the Regulations. Because the labeling of
textile products has been an integral part of the manufacturing process
for decades, manufacturers have in place the capital equipment
necessary to comply with the Regulations' labeling requirements.
Industry sources indicate that much of the information required by the
Textile Act and its implementing rules would be included on the product
label even absent their requirements. Similarly, recordkeeping,
invoicing, 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
Regulations.

4. The Care Labeling Rule, 16 CFR Part 423 (OMB Control Number: 3084-
0103).

The Care Labeling Rule, 16 CFR Part 423, requires manufacturers and
importers to attach a permanent care label to all covered textile
clothing in order to assist consumers in making purchase decisions and
in determining what method to use to clean their apparel. Also,
manufacturers and importers of piece goods used to make textile
clothing must provide the same care information on the end of each bolt
or roll of fabric.
Estimated annual hours burden: 7,566,000 hours, rounded to the
nearest thousand (solely relating to disclosure\11\).
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\11\ The Care Labeling Rule imposes no specific recordkeeping
requirements. Although the Rule requires manufacturers and importers
to have reliable evidence to support the recommended care
instructions, companies may provide as support current technical
literature or rely on past experience.
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Staff estimates that approximately 26,647 manufacturers or
importers of textile apparel, producing about 20.1 billion textile
garments annually, are subject to the Rule's disclosure requirements.
The burden of developing proper care instructions may vary greatly
among firms, primarily based on the number of different lines of
textile

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garments introduced per year that require new or revised care
instructions. Staff estimates the burden of determining care
instructions to be 43 hours each year per respondent, for a cumulative
total of 1,145,821 hours. Staff further estimates that the burden of
drafting and ordering labels is 2 hours each year per respondent, for a
total of 53,294 hours. Staff believes that the process of attaching
labels is fully automated and integrated into other production steps
for about 40 percent of the approximately 19.1 billion garments that
are required to have care instructions on permanent labels.\12\ For the
remaining 11.46 billion items (60 percent of 19.1 billion), the process
is semi-automated and requires an average of approximately two seconds
per item, for a total of 6,366,667 hours per year. Thus, the total
estimated annual burden for all respondents is 7,565,782 hours
(1,145,821 hours to determine care instructions + 53,294 hours to draft
and order labels + 6,366,667 hours to attach labels).
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\12\ About 1 billion of the 20.1 billion garments produced
annually are either not covered by the Care Labeling Rule (gloves,
hats, caps, and leather, fur, plastic, or leather garments) or are
subject to an exemption that allows care instructions to appear on
packaging (hosiery).
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Estimated annual cost burden: $61,410,000\13\ , rounded to the
nearest thousand (solely relating to labor costs).
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\13\ We have corrected an error in this calculation that
appeared in the prior 60-day Federal Register notice.

Staff believes that there are no current start-up costs or other
capital costs associated with the Rule. Because the labeling of textile
products has been an integral part of the manufacturing process for
decades, manufacturers have in place the capital equipment necessary to
comply with the Rule's labeling requirements. Based on knowledge of the
industry, staff believes that much of the information required by the
Rule would be included on the product label even absent those
requirements.

David C. Shonka,
Acting General Counsel.
[FR Doc. E9-3056 Filed 2-11-09: 8:45 am]