[Federal Register Volume 88, Number 167 (Wednesday, August 30, 2023)]
[Notices]
[Pages 59923-59925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18767]


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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: In accordance with the Paperwork Reduction Act of 1995 
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is 
seeking public comment on its proposal to extend for an additional 
three years the Office of Management and Budget clearance for 
information collection requirements in the Trade Regulation Rule 
entitled Labeling and Advertising of Home Insulation (``R-value Rule'' 
or ``Rule''). That clearance expires on March 31, 2024.

DATES: Comments must be filed by October 30, 2023.

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 ``R-value Rule; 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: Hampton Newsome, Attorney, Division of 
Enforcement, Federal Trade Commission, Room CC-9528, 600 Pennsylvania 
Avenue NW, Washington, DC 20580, (202) 326-2889.

SUPPLEMENTARY INFORMATION: 
    Title of Collection: R-value Rule, 16 CFR part 460.
    OMB Control Number: 3084-0109.
    Type of Review: Extension without change of currently approved 
collection.
    Abstract: 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

[[Page 59924]]

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.
    Affected Public: Insulation manufacturers, installers, home 
builders, home sellers, insulation sellers.
    Estimated Annual Burden Hours: 100,874 hours.
    Estimated Annual Labor Costs: $2,424,450.68 (solely related to 
labor costs).
    As required by section 3506(c)(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 R-value Rule.

Burden Statement

    Estimated Annual Burden Hours: 100,874 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 industry 
and government sources, FTC staff estimates that the Rule affects: (1) 
150 Insulation manufacturers and their testing laboratories; (2) 1,615 
installers who sell home insulation; (3) 1,670,00 new home sales; and 
(4) 7,500 retail sellers who sell home insulation for installation by 
consumers.
1. Manufacturers
    Under the Rule's testing requirements, manufacturers must test each 
insulation product for its R-value. Based on past industry input, FTC 
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.
    FTC 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. FTC 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).
    This yields a total annual burden of 3,540 hours (30 hours for 
testing + 3,360 hours for third-party disclosures + 150 hours for 
recordkeeping) for manufacturers.
2. Installers
    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. FTC 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). FTC 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.
    This yields a total annual burden of 68,417 hours (66,667 hours for 
contract disclosures + 1,615 hours for promotional material disclosures 
+ 135 hours for recordkeeping) for installers.
3. New Home Sellers
    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. FTC staff estimates that not more than 30 seconds 
per sales transaction are required to comply with this requirement, for 
a total annual burden of approximately 13,917 hours (an estimated 
1,670,000 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. FTC 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 
2022 at U.S. Census Bureau, Monthly New Residential Construction--
June 2023 (July 19, 2023), https://www.census.gov/construction/nrc/pdf/newresconst.pdf.
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    This yields a total annual burden of 13,917 hours (for disclosures) 
for new home sellers.
4. Retail Sellers
    The Rule requires that the approximately 7,500 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 7,500 annual hours, industry-wide.
    The Rule also requires specific disclosures in advertisements or 
other 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 7,500 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.
    This yields a total annual burden of 15,000 hours (for fact sheet 
and other disclosures) for retail sellers.
    Estimated Annual Cost Burden: $2,424,450.68 (solely related to 
labor costs).
    The total annual labor cost for the Rule's information collection 
requirements is approximately $2,424,450.68, derived as follows: 
approximately $963 for testing, based on 30 hours for manufacturers (30 
hours x $32.10 per hour for skilled technical personnel); $5,420.70 for 
manufacturers' and installers' compliance with the Rule's recordkeeping 
requirements, based on 285 hours (285 hours x $19.02 per hour for 
clerical personnel); $63,907.20 for manufacturers'

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compliance with third-party disclosure requirements, based on 3,360 
hours (3,360 hours x $19.02 per hour for clerical personnel); and 
$2,354,159.78 for disclosure compliance by installers, new home 
sellers, and retailers (97,199 hours x $24.22 per hour for sales 
persons).\2\
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    \2\ The wage rates for skilled technical personnel (engineering 
technologists and technicians, except drafters), clerical personnel 
(file clerks), and sales persons (sales and related occupations) are 
based on are based on recent data from the Bureau of Labor 
Statistics Occupational Employment Statistics Survey. See U.S. 
Bureau of Labor Statistics, Table 1. National Employment and Wage 
Data from the Occupational Employment and Wage Statistics Survey by 
Occupation (May 2022), https://www.bls.gov/news.release/ocwage.t01.htm.
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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

    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 
October 30, 2023. 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 ``R-value Rule; 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 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 October 30, 
2023. 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. 2023-18767 Filed 8-29-23; 8:45 am]
BILLING CODE 6750-01-P