Federal Register / Vol. 72, No. 5 / Tuesday, January 9, 2007 / Rules and Regulations 901 

1 Industry guides are administrative 

interpretations of laws issued by the Commission 

for the guidance of the public in conducting its 

affairs in conformity with legal requirements. 16 

CFR 1.5. 

2 59 FR 64546 (December 14, 1994). 

3 Guide 6 also provides that plants propagated 

from plants lawfully collected from the wild state 

may be designated as ‘‘nursery-propagated.’’

4 See the Commission’s 1983 Statement on 

Deception found in the appendix to Cliffdale 

Associates, 103 F.T.C. 110, 174 (1984). 

5 71 FR 34045 (June 13, 2006). 

6 The comments are cited in this notice by the 

name of the commenter. All comments are on the 

public record and available for public inspection in 

the Consumer Response Center, Room 130, Federal 

Trade Commission, 600 Pennsylvania Avenue, 

NW., Washington, DC, from 9 a.m. to 5 p.m., 

Monday through Friday, except Federal holidays. 

The comments also are available on the Internet at 

the Commission’s Web site, http://www.ftc.gov. 

7 Barb Sachau (‘‘Sachau’’). 

adjusts the Department’s CMPs 

according to the statutory mandate. For 

the same reasons, there exists good 

cause to waive the thirty day delay in 

effectiveness of the rule, pursuant to 5 

U.S.C. 553(d)(3). 

Because notice and opportunity for 

comment are not required by 5 U.S.C. 

553, or any other law, a Regulatory 

Flexibility Analysis is not required and 

none was prepared. 

This rule does not contain 

information collection requirements for 

purposes of the Paperwork Reduction 

Act. 

List of Subjects in 15 CFR Part 6 

Law enforcement, Penalties. 

Lisa Casias, 

Deputy Chief Financial Officer and Director 

for Financial Management. 

■ For the reasons set forth in the 

preamble, subtitle A of Title 15 of the 

Code of Federal Regulations is amended 

as follows: 

PART 6—CIVIL MONETARY PENALTY 

INFLATION ADJUSTMENTS 

■ 1. The authority citation for part 6 

continues to read as follows: 

Authority: Sec. 4, as amended, and sec. 5, 

Pub. L. 101–410, 104 Stat. 890 (28 U.S.C. 

2461 note); Pub. L. 104–134, 110 Stat. 1321, 

28 U.S.C. 2461 note. 

■ 2. Section 6.4 is amended by revising 

the introductory text and paragraphs 

(a)(4) and (a)(5) to read as follows: 

§ 6.4 Adjustments to penalties. 

The civil monetary penalties provided 

by law within the jurisdiction of the 

respective agencies or bureaus of the 

Department, as set forth below in this 

section, are hereby adjusted in 

accordance with the inflation 

adjustment procedures prescribed in 

Section 5, from the amounts of such 

penalties in effect prior to December 14, 

2004, to the amounts of such penalties, 

as thus adjusted, except for the penalties 

stated in paragraphs (a)(4) and (a)(5) 

which became adjusted on March 9, 

2006. 

(a) * * * 

(4) 50 U.S.C. 1705(a), International 

Emergency Economic Powers Act—

Export Administration Regulation 

Violation, from $11,000 to $50,000. 

(5) 50 U.S.C. 1705(a), International 

Emergency Economic Powers Act—

Chemical Weapons Convention 

Implementation Act, Import Restriction 

Violation, from $11,000 to $50,000. 

* * * * * 

[FR Doc. E7–85 Filed 1–8–07; 8:45 am] 

BILLING CODE 3510–17–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 18 

Guides for the Nursery Industry 

AGENCY: Federal Trade Commission. 

ACTION: Confirmation of guides. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

has completed its regulatory review of 

the Guides for the Nursery Industry 

(‘‘Guides’’ or ‘‘Nursery Guides’’), as part 

of the Commission’s systematic review 

of all current Commission regulations 

and guides, and, with the exception of 

correcting a misspelled word, has 

determined to retain the Guides in their 

current form. 

DATES: This action is effective as of 

January 9, 2007. 

ADDRESSES: Requests for copies of this 

notice should be sent to the Consumer 

Response Center, Room 130, Federal 

Trade Commission, 600 Pennsylvania 

Ave., NW., Washington, DC 20580. The 

notice also is available on the Internet 

at the Commission’s Web site, http:// 

www.ftc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Janice Podoll Frankle, (202) 326–3022, 

Attorney, Division of Enforcement, 

Bureau of Consumer Protection, Federal 

Trade Commission, Washington, DC 

20580. E-mail: jfrankle@ftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

The Commission has determined, as 

part of its oversight responsibilities, to 

review its rules and guides periodically 

to seek information about their costs 

and benefits as well as their regulatory 

and economic impact. The information 

obtained assists the Commission in 

identifying rules and guides that 

warrant modification or rescission. 

II. Background 

The Commission issued its Nursery 

Guides in 1979.1 These Guides address 

numerous sales practices for outdoor 

plants, trees, and flowers, including 

deceptive claims regarding quantity, 

size, grade, kind, species, age, maturity, 

condition, vigor, hardiness, growth 

ability, price, and origin or place where 

grown. 

In 1994, as part of its periodic review, 

the Commission amended the Nursery 

Guides.2 Specifically, the Commission 

amended Guide 6 (Plants collected from 

the wild state) and the related 

definitions. Guide 6 now advises sellers 

that it is unfair or deceptive to offer for 

sale plants collected from the wild state 

without disclosing that fact.3

Additionally, the Commission amended 

Guides 1–8 to update legal terminology. 

Specifically, the Commission deleted 

the expressions ‘‘it is an unfair trade 

practice’’ and ‘‘has the capacity and 

tendency or effect of deceiving 

purchasers,’’ neither of which the 

Commission uses in its orders, rules, or 

guides. The Commission substituted the 

language ‘‘it is an unfair or deceptive act 

or practice’’ and ‘‘misrepresents directly 

or by implication.’’ 4

On June 13, 2006, the Commission 

published a Federal Register notice 

(‘‘FRN’’) seeking comment on the 

Nursery Guides as part of the 

Commission’s ongoing project to review 

periodically its rules and guides to 

determine their current effectiveness 

and impact.5 The FRN sought comment 

on the continuing need for the Guides; 

the costs and benefits of the Guides; 

how the 1994 amendments to Guide 6 

affected the nursery industry and 

purchasers; and what effects, if any, 

technological or economic changes have 

had on the Guides. 

III. Regulatory Review Comments 

The Commission received two 

comments in response to the FRN,6 one 

from an individual 7 and one from the 

American Nursery & Landscape 

Association (‘‘ANLA’’). ANLA, a 

national trade organization formed in 

1875, represents nursery and 

greenhouse crop growers, landscape 

design and installation professionals, 

independent garden retailers, 

horticultural distributors, and industry 

suppliers. ANLA stated that these 

entities collectively comprise what is 

commonly referred to as the ‘‘green 

industry,’’ which generates annual 

economic output estimated at over $147 

billion. According to ANLA, the 

Nursery Guides cover many of the 

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902 Federal Register / Vol. 72, No. 5 / Tuesday, January 9, 2007 / Rules and Regulations 

8 Because ANLA did not provide substantive 

information in response to every question and some 

responses overlapped with others, this FRN does 

not discuss each question separately. 

9 In response to FRN question 9 (whether the 

Guides overlap or conflict with other federal, state 

or local laws or regulations), ANLA stated that it 

did not see any fundamental conflict. It indicated 

that the nursery industry recently worked with the 

National Institutes for Standards and Technology to 

develop industry guidelines for marketing plants 

sold in packages or in containers. ANLA stated that 

the ‘‘Industry Guide to Marketing Container Plants’’

(‘‘Industry Guide’’) ‘‘was necessitated by the 

widespread use of marketing terminology (10-inch 

pot, 1 gallon pot) that was viewed as not 

conforming with weights and measures consumer 

labeling requirements.’’ ANLA suggested that if the 

Commission decided to retain the Nursery Guides, 

it might want to reference the Industry Guide 

because it contains useful supplemental 

information. ANLA, however, did not propose any 

specific text or section of the Guides for this 

supplemental information. Because the Industry 

Guide addresses matters of state law, as opposed to 

compliance with the FTC Act or other laws 

enforced by the FTC, the Commission believes that 

it is potentially confusing to reference the Industry 

Guide in the Nursery Guides. 10 ‘‘Bulblets’’ was incorrectly spelled ‘‘bublets.’’

activities of its members and the 

industry. 

ANLA’s comments, which responded 

to each of the eleven FRN questions,8

indicated that the Nursery Guides serve 

a useful purpose and should remain in 

effect in their current form. ANLA 

stated that it did not have any proposals 

for changing the Guides 9 and did not 

have any ‘‘specific observations’’ about 

what effects, if any, changes in relevant 

technology, economic conditions, or 

environmental conditions had on the 

Guides. ANLA observed that the Guides 

‘‘have been generally adopted and 

become part of routine business practice 

at least among legitimate and 

respectable industry firms’’ and that the 

Nursery Guides ‘‘provide a framework 

for addressing the bad actors.’’ ANLA 

stated that its sense was that the Guides 

have imposed minimal costs on 

purchasers because they ‘‘merely 

convey the performance standards that 

should be met’’ when the industry 

engages in advertising and labeling that 

it otherwise conducts. Further, ANLA 

said that it did not believe the Guides 

have imposed any significant burdens 

on industry businesses. 

Concerning FRN question 5 (how the 

1994 amendments to Guide 6 regarding 

plants collected from the wild state have 

affected the nursery industry and 

purchasers), ANLA stated that the intent 

of the 1994 amendments—which it 

supported—was to protect consumers 

because wild-collected plants often 

suffer high mortality. It noted, however, 

if wild-collected plants have been 

established in the nursery for at least a 

growing season, the surviving plants 

regain vigor and thus the consumer is 

more assured of purchasing viable 

plants. ANLA opined that the Guide 6 

‘‘nursery-propagated’’ designation helps 

conservationists and consumers 

interested in preserving these wild 

populations because they may want to 

purchase only truly nursery-propagated 

and grown plants. 

Sachau’s comment related solely to 

wild-collected plants, and did not 

indicate that any changes needed to be 

made to the Guides. Sachau stated that 

no wild-collected plants should be sold 

by any U.S. nursery. Sachau indicated 

that such plants were usually collected 

on national taxpayer-owned land, and 

that taking plants from this land was 

‘‘stealing.’’ Sachau stated that stealing 

plants from national land should be a 

criminal offense, and suggested specific 

fines to be imposed on anyone caught 

stealing from nationally-owned land. 

With regard to Sachau’s comments, the 

Commission notes that Guide 6 refers 

only to plants ‘‘lawfully’’ collected from 

the wild state. Moreover, to the extent 

that it is not already a crime, the FTC 

does not have the authority to make 

collecting plants from the wild state on 

national lands a criminal offense. 

In light of the comments received, and 

in the absence of any opposition to the 

Guides, the Commission concludes that 

there is a continuing need for the 

Nursery Guides. The comments provide 

evidence that the Guides serve a useful 

purpose, while imposing minimal costs 

on the industry, and the Commission 

has no evidence to the contrary. 

Accordingly, with the exception of 

correcting the misspelling of the word 

‘‘bulblets’’ 10 in § 18.1(c)(9), the 

Commission has determined to retain 

the Nursery Guides in their current 

form. 

IV. Conclusion 

For the reasons described above, the 

Commission has determined to retain 

the current Nursery Guides. 

List of Subjects in 16 CFR Part 18 

Advertising, Nursery, Trade practices. 

Text of Amendments 

■ For the reason set forth in the 

preamble, 16 CFR part 18 is amended as 

follows: 

PART 18—GUIDES FOR THE 

NURSERY INDUSTRY 

■ 1. Section 18.1 is amended by revising 

paragraph (c)(9) to read as follows: 

§ 18.1 Deception (general). 

* * * * * 

(c)(9) That bulblets are bulbs. 

* * * * * 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E7–52 Filed 1–8–07; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9309] 

RIN 1545–BD40 

Qualified Amended Returns 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations that state the rules relating 

to qualified amended returns by 

providing circumstances that end the 

period within which a taxpayer may file 

an amended return that constitutes a 

qualified amended return. The IRS uses 

qualified amended returns to determine 

whether an underpayment exists that is 

potentially subject to the accuracyrelated penalty on underpayments. 

Among other things, these final 

regulations provide that the period for 

filing a qualified amended return is 

terminated once the IRS has served a 

John Doe summons on a third party 

with respect to the taxpayer’s tax 

liability. In addition, for taxpayers who 

have claimed tax benefits from 

undisclosed listed transactions, the 

regulations provide that the period for 

filing a qualified amended return is 

terminated once the IRS requests 

information related to the transaction 

that is required to be included on a list 

under section 6112 from any person 

who made a tax statement to or for the 

benefit of the taxpayer, or any person 

who gave material aid, assistance, or 

advice to the taxpayer. The regulations 

also provide that the date on which 

published guidance is issued 

announcing a settlement initiative for a 

listed transaction in which penalties, in 

whole or in part, are compromised or 

waived is an additional date by which 

a taxpayer must file a qualified 

amended return. 

DATES: Effective Date: These regulations 

are effective January 9, 2007. 

Applicability Dates: For dates of 

applicability, see § 1.6664–1(b)(3). 

FOR FURTHER INFORMATION CONTACT: 

Laura Urich Daly, 202–622–4940 (not a 

toll-free number). 

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