[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Proposed Rules]
[Pages 40121-40122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19123]


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FEDERAL TRADE COMMISSION

16 CFR Part 425


Rule Concerning the Use of Prenotification Negative Option Plans

AGENCY: Federal Trade Commission (FTC or Commission)

ACTION: Re-opening the record for submission of public comments.

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SUMMARY: The FTC re-opens the time period for filing public comments in 
response to its Advance Notice of Proposed Rulemaking and Request for 
Public Comments for sixty (60) days.

DATES: Written comments must be received on or before October 13, 2009.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Prenotification Negative Option Rule Review, 
Matter No. P064202'' to facilitate the organization of comments. Please 
note that your comment - including your name and your state - 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).
    Because comments will be made public, they 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 secret or any 
commercial or financial information which is obtained from any person 
and which is 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 and clearly labeled 
``Confidential.'' \1\
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    \1\The comment must also 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 Commission 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://secure.commentworks.com/ftc-NegativeOptionRuleANPR) (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-NegativeOptionRuleANPR). 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.gov) to read the Notice and the news release 
describing it.
    A comment filed in paper form should include the ``Prenotification 
Negative Option Rule Review, Matter No. P064202'' 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 Q), 600 Pennsylvania Avenue, N.W., 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.
    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: Robin Rosen Spector, (202) 326-3740 or 
Matthew Wilshire, (202) 326-2976, Attorneys, Division of Enforcement, 
Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue, NW., Washington, DC. 20580.

SUPPLEMENTARY INFORMATION: On May 14, 2009, the Commission published an 
Advance Notice of Proposed Rulemaking (``Notice'') seeking comment on 
the overall costs, benefits, necessity, and regulatory and economic 
impact of the FTC's Trade Regulation Rule concerning ``Use of 
Prenotification Negative Option Plans''\2\ (``Negative Option Rule'' or 
``Rule''). Currently, the Rule addresses only prenotification negative 
option plans for the delivery of merchandise. The Notice solicits 
comments on whether the Commission should expand the Rule to address 
additional negative option marketing categories and on the Rule's costs 
and benefits. The notice designated July 27, 2009, as the deadline for 
filing public comments.
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    \2\74 FR 22720 (May 14, 2009).
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    Three parties filed requests for an extension of the comment period 
in this matter in mid-July. The Commonwealth of Pennsylvania, Office of 
Attorney General, Bureau of Consumer Protection, ``along with several 
other states including without limitation, Vermont, Florida, Iowa and 
Colorado'' (collectively ``states'') requested a 30-day extension. The 
Broward County

[[Page 40122]]

Licensing and Consumer Protection Division requested a 60-day 
extension. Finally, the American Association of Law Libraries 
(``AALL'') requested a 30-day extension.
    These entities explain that extension of the comment period will 
allow them to provide more comprehensive comments. Specifically, the 
states explain that they are compiling data responsive to some of the 
Notice's specific questions and that the data they collect may be 
relevant to the Commission's decision on whether to expand the Negative 
Option Rule to cover additional types of negative option offers. 
Similarly, Broward County explains that it has received numerous 
complaints concerning trial conversion negative option offers that it 
believes demonstrate that an expansion of the Rule's coverage is 
warranted. Finally, the AALL explains that it represents ``more than 
5000 law librarians who are institutional consumers of enormous amounts 
of legal and other published material,'' and as such, are parties to 
many types of negative option plans. AALL states that it is requesting 
information from its membership regarding the Rule and an extension of 
the comment period would provide it with additional time to collect 
this data.
    All of this data would assist the Commission in evaluating the 
Rule's effectiveness and determining whether there is reason to believe 
that unfair or deceptive acts or practices in non-Rule covered negative 
option marketing are ``prevalent.'' Moreover, the requested short 
extension of the comment period will not substantially delay the 
rulemaking process. The Commission is mindful of the need to deal with 
this matter expeditiously; however, it also recognizes that its Notice 
requests comments on complex issues and believes that extending the 
comment period to facilitate the creation of a more complete record 
outweighs any harm that might result from any delay. The requests for 
an extension of the comment period were filed close to the comment 
deadline; therefore, there was insufficient time to extend the comment 
period. Accordingly, the Commission has decided to re-open the comment 
period for sixty (60) days, until October 13, 2009, to allow for 
additional comment.
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. E9-19123 Filed 8-10-09: 2:30 pm]
BILLING CODE 6750-01-S