[Federal Register Volume 72, Number 93 (Tuesday, May 15, 2007)]
[Notices]
[Pages 27311-27313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9304]


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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: 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''). The 
Federal Trade Commission (``FTC or Commission'') is seeking public 
comments on its proposal to extend through September 30, 2010, the 
current PRA clearance for information collection requirements contained 
in its regulations under the Comprehensive Smokeless Tobacco Health 
Education Act of 1986 (``Smokeless Tobacco Act'' or the ``Act''). That 
clearance expires on September 30, 2007.

[[Page 27312]]


DATES: Comments must be submitted on or before July 16, 2007.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Smokeless Tobacco Regulations: FTC File No. 
R011009'' 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 J), 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 described 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 clearing labeled ``Confidential.'' \1\
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    \1\ Commission 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 Commission Rule 4.9(c), 16 CFR 4.9(c).
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    Comments filed in electronic form should be submitted by following 
the instructions on the web-based form at https://secure.commentworks.com/ftc-SmokelessTobaccoRegs. To ensure that the 
Commission considers an electronic comment, you must file it on the 
web-based form at the https://secure.commentworks.com/ftc-SmokelessTobaccoRegs weblink. If this Notice appears at 
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 FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding 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 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/ftc/privacy/htm.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Rosemary Rosso, Senior Attorney, Division of 
Advertising Practices, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580, (202) 
326-2174.

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3520, 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 section 3506(c)(2)(A) 
of the PRA, the FTC is providing this opportunity for public comment 
before requesting that OMB extend the existing paperwork clearance for 
the Smokeless Tobacco Act regulations (OMB Control No. 3084-0082).
    The FTC invites comments on: (1) Whether the proposed collection of 
information is necessary for the proper performance or functions of the 
agency, 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 information to be collected; and (4) ways to minimize the 
burden of 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 July 16, 2007.
    Description of the collection of information and proposed use: The 
Smokeless Tobacco Act requires that manufacturers, packagers, and 
importers of smokeless tobacco products include one of three specified 
health warnings on packages and in advertisements. The Act also 
requires that each manufacturer, packager, and importer of smokeless 
tobacco products submit a plan to the Commission specifying the method 
to rotate, display, and distribute the warning statements required to 
appear in advertising and labeling. The Act requires the Commission to 
determine whether these plans provide for rotation, display, and 
distribution of warnings in compliance with the Act and implementing 
regulations. To the best of the Commission's knowledge, all of the 
affected companies have previously filed plans. However, the plan 
submission requirement also applies to a company that amends its plan, 
or to a new company that enters the market.
    Burden statement: Commission staff estimates of paperwork burden 
are based on its knowledge of the smokeless tobacco industry and the 
time companies require to prepare rotational warning plans for 
submission to and review by the Commission. Staff's estimates are 
further informed by discussions it has had with companies filing 
rotational plans or their representatives during the Commission's 
review of submitted plans. In estimating total annual burden hours and 
associated labor costs, staff considered its experience gained from the 
plans submitted over the past five years. Based on these factors, staff 
estimates that the average annual paperwork burden for the three-year 
clearance period sought is no more than 1,000 hours, with associated 
annual labor cost of no more than $203,000.
    The five smokeless tobacco manufacturers that comprise the dominant 
share of the domestic smokeless tobacco market filed their plans with 
the Commission long ago. Additional annual reporting burden would occur 
only if a company introduces a new brand or otherwise opts to display 
the health warnings in a manner not previously approved. Under those 
circumstances, a company would need to file an amendment to its plan. 
Although it is not possible to predict whether any of these companies 
will seek to amend an existing approved plan (and possibly none will), 
staff conservatively assumes that each of these five smokeless tobacco 
companies will file one amendment per year, for a total burden of not 
more than 200 hours. This estimate is conservative because over the 
past five years, none of these companies filed amendments to their 
existing plans, and the Commission has not changed the relevant 
regulations. The estimated time to prepare the amended plans submitted 
by these companies is less than 40 hours each. The only major amendment 
of an approved plan over the past ten years required less than 40 hours 
to prepare. Commission staff believes it reasonable to assume that each 
of these five smokeless tobacco companies would spend no more than 40 
hours to prepare an amended plan, and possibly considerably less time 
if the amendment

[[Page 27313]]

would be minor or applied only to one brand or brand variety.
    Commission staff also estimates that over the requested three-year 
clearance period up to four smokeless tobacco manufacturers, packagers, 
or importers will file an initial plan that includes rotational schemes 
for both packaging and advertising, for an additional burden of no more 
than 240 hours. This estimate is conservative because over the past 
five years, only four initial plans with both packaging and advertising 
schemes have been filed with the FTC. When the regulations were first 
proposed in 1986, representatives of the Smokeless Tobacco Council, 
Inc. indicated that the six companies it represented would require 
approximately 700 to 800 hours in total (133 hours each) to complete 
the initial required plans, involving multiple brands, multiple brand 
varieties, and multiple forms of both packaging and advertising. The 
four initial plans submitted over the past five years are considerably 
less complex. Each of these plans involves only one or two brands or 
brand varieties, with more limited types of advertising and packaging. 
In addition, three of the four companies submitting plans had prior 
familiarity with the preparation of rotational warning plans. Further, 
increased computerization and improvements in electronic communication 
over the past 20 years have decreased the time needed for the 
preparation and drafting of rotational warning plans. Staff estimates 
that it would require no more than 60 hours to prepare such an initial 
plan, and that four initial plans will be submitted.
    Staff anticipates that over the next three years, up to four 
smokeless tobacco manufacturers, packagers, or importers may submit 
initial plans covering packaging alone, for an additional burden of no 
more than 160 hours. Over the past five years, the Commission has 
received four such plans. Because each of the plans involved only a 
single brand, a single form of packaging, and no advertising, the 
estimated time to prepare the plans is very modest. Staff anticipates 
that the companies that submit initial plans covering packaging alone 
will spend no more than 40 hours each to prepare the plans, and 
possibly considerably less. This estimate is conservative. Like other 
estimates stated herein, this is based on the total number of plans 
submitted to the FTC over the past five years, rather than annually.
    Finally, staff estimates that over the next three years, up to four 
amendments will be filed by companies other than the five largest 
smokeless tobacco manufacturers. Over the past five years, the 
Commission has received four such plans. Each of the amendments 
involved very modest changes to the existing plans. Staff estimates 
that four companies submitting similar amended plans will spend no more 
than 20 to 40 hours each to prepare the amendments, for an additional 
burden estimate of no more than 160 hours. As above, this is 
conservatively based on the total number of plans submitted to the FTC 
over the past five years, rather than annually.
    Estimated total annual hours burden: 1,000 hours.
    Based on these assumptions, the total annual hours should not 
exceed 1,000 hours. [(5 companies x 40 hours each) + (4 companies x 60 
hours each) + (4 companies x 40 hours each) + (4 companies x 40 hours 
each) = 760 total hours, rounded to one thousand hours]
    Estimated labor costs: $203,000.
    The total annualized labor cost to these companies should not 
exceed $203,000. This is based on the assumption that management or 
attorneys will account for 80% of the estimated 1,000 hours required to 
draft initial or amended plans, at an hourly rate of $250 per hour, and 
that clerical support will account for the remaining time (20%) at an 
hourly rate of $15. [Management and attorneys' time (1,000 hours x 0.80 
x $250 = $200,000) + clerical time (1,000 hours x 0.20 x $15 = $3,000) 
= $203,000]
    Estimated annual non-labor cost burden: $0 or minimal.
    The applicable requirements impose minimal start-up costs. The 
companies may keep copies of their plans to ensure that labeling and 
advertising complies with the requirements of the Smokeless Tobacco 
Act. Such recordkeeping would require the use of office supplies, e.g., 
file folders and paper, all of which the companies should have on hand 
in the ordinary course of their business.
    While companies submitting initial plans may incur one-time capital 
expenditures for equipment used to print package labels in order to 
include the statutory health warnings or to prepare acetates for 
advertising, the warnings themselves disclose information completely 
supplied by the federal government. As such, the disclosure does not 
constitute a ``collection of information'' as it is defined in the 
regulations implementing the PRA, nor, by extension, do the financial 
resources expended in relation to it constitute paperwork ``burden.'' 
See 5 CFR 1320.3(c)(2). Moreover, any expenditures relating to the 
statutory health warning requirements would likely be minimal in any 
event. For companies that have already submitted approved plans, there 
are no capital expenditures. After the Commission approves a plan for 
the rotation and display of the warnings required by the Smokeless 
Tobacco Act, the companies are required to make additional submissions 
to the Commission only if they choose to change the way they display 
the warnings. Once companies have prepared the artwork for printing the 
required warnings on package labels, there are no additional start-up 
costs associated with the display of the warnings on packaging. 
Similarly, once companies have prepared artwork and possibly acetates 
for the display of the warnings in advertising, there are no additional 
start-up costs associated with printing the warnings in those 
materials.

William Blumenthal,
General Counsel.
 [FR Doc. E7-9304 Filed 5-14-07; 8:45 am]
BILLING CODE 6750-01-P