[Federal Register Volume 89, Number 213 (Monday, November 4, 2024)]
[Notices]
[Pages 87575-87578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25559]


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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

[[Page 87576]]

extend for an additional three years the Office of Management and 
Budget clearance for information collection requirements contained in 
the rules and regulations under the Pay-Per-Call Rule (Rule). This 
clearance expires on January 30, 2024.

DATES: Comments must be filed by January 3, 2025.

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 ``Pay-Per-Call Rule, PRA 
Comment, P085405,'' 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: P. Connell McNulty, Attorney, Division 
of Marketing Practices, Bureau of Consumer Protection, Federal Trade 
Commission, (202) 326-2061, <a href="/cdn-cgi/l/email-protection#0878656b667d647c71486e7c6b266f677e"><span class="__cf_email__" data-cfemail="2a5a4749445f465e536a4c5e49044d455c">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    Title: Trade Regulation Rule Pursuant to the Telephone Disclosure 
and Dispute Resolution Act of 1992 (``Pay-Per-Call Rule''), 16 CFR part 
308.
    OMB Control Number: 3084-0102.
    Type of Review: Extension of a currently approved collection.
    Abstract: The existing reporting and disclosure requirements of the 
Pay-Per-Call Rule are mandated by the Telephone Disclosure and Dispute 
Resolution Act of 1992 (TDDRA) to help prevent unfair and deceptive 
acts and practices in the advertising and operation of pay-per-call 
services and in the collection of charges for telephone-billed 
purchases. The information obtained by the Commission pursuant to the 
reporting requirement is used for law enforcement purposes. The 
disclosure requirements ensure that consumers are told about the costs 
of using a pay-per-call service, that they will not be liable for 
unauthorized non-toll charges on their telephone bills, and how to deal 
with disputes about telephone-billed purchases.
    Likely Respondents: telecommunications common carriers (subject to 
the reporting requirement only, unless acting as a billing entity), 
information providers (vendors) offering one or more pay-per-call 
services or programs, and billing entities.
    Estimated Annual Hours Burden: 949,536 hours (24 + 949,512).

Reporting: 24 hours for reporting by common carriers
Disclosure: 949,512 [(19,440 hours for advertising by vendors + 19,992 
hours for preamble disclosure which applies to every pay-per-call 
service + 6,480 burden hours for telephone-billed charges in billing 
statements (applies to vendors; applies to common carriers if acting as 
billing entity) + 13,000 burden hours for dispute resolution procedures 
in billing statements (applies to billing entities) + 890,600 hours for 
disclosures related to consumers reporting a billing error (applies to 
billing entities)]

    Estimated annual cost burden: $49,402,048 (solely relating to labor 
costs).\1\
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    \1\ Non-labor (e.g., capital/other start-up) costs are generally 
subsumed in activities otherwise undertaken in the ordinary course 
of business (e.g., business records from which only existing 
information must be reported to the Commission, pay-per-call 
advertisements or audiotext to which cost or other disclosures are 
added, etc.). To the extent that entities incur operating or 
maintenance expenses, or purchase outside services to satisfy the 
Rule's requirements, staff believe those expenses are also included 
in (or, if contracted out, would be comparable to) the annual burden 
hour and cost estimates provided below (where such costs are labor-
related), or are otherwise included in the ordinary cost of doing 
business (regarding non-labor costs).
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    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 Commission's Pay-
Per-Call Rule.

Burden Estimates

    Brief description of the need for and proposed use of the 
information:
    The existing reporting and disclosure requirements are mandated by 
the TDDRA to help prevent unfair and deceptive acts and practices in 
the advertising and operation of pay-per-call services and in the 
collection of charges for telephone-billed purchases. The information 
obtained by the Commission pursuant to the reporting requirement is 
used for law enforcement purposes. The disclosure requirements ensure 
that consumers are told about the costs of using a pay-per-call 
service, that they will not be liable for unauthorized non-toll charges 
on their telephone bills, and how to deal with disputes about 
telephone-billed purchases.
    Likely respondents and their estimated number:
    Respondents are telecommunications common carriers (subject to the 
reporting requirement only, unless acting as a billing entity), 
information providers (vendors) offering one or more pay-per-call 
services or programs, and billing entities. Staff estimates that there 
are 8 common carriers, approximately 5,400 vendors, and approximately 
2,600 possible billing entities. The FTC seeks public comment or data 
on these estimates and those stated below.
    Estimated annual reporting and disclosure burden: 949,536 hours; 
$49,402,048 in associated labor costs.
    The burden hour estimate for each reporting and disclosure 
requirement has been multiplied by a ``blended'' mean wage rate 
(expressed in dollars per hour), based on the particular skill mix 
needed to carry out that requirement, to determine its total annual 
cost. The blended rate calculations are based on the following skill 
categories and average wage rates and/or labor costs: $131/hour for 
professional (attorney) services; $23/hour for skilled clerical 
workers; $52/hour for computer programmers; and $62/hour for management 
time. These figures are averages, based on the most currently available 
Bureau of Labor Statistics (``BLS'') cost figures posted online. The 
attorney figure is based in part on BLS estimates and on other sources. 
FTC staff calculated labor costs by applying appropriate hourly cost 
figures to the burden hours discussed further below.
    (1) Reporting burden (applies to common carriers):
    The Rule provides that common carriers must make available to the 
Commission, upon written request, any records and financial information 
maintained by such carrier relating to the arrangements between the 
carrier and any vendor or service bureau (other than for the provision 
of local exchange service). See 16 CFR 308.6. Staff believes that the 
resulting burden on this segment of the industry will be minimal, since 
OMB's definition of ``burden'' for PRA purposes excludes any business 
effort that would be expended regardless of a regulatory requirement. 5 
CFR 1320.3(b)(2). Because this reporting requirement permits staff to 
seek information limited to that which is already maintained by the 
carriers, the only burden would be the time an entity expends to 
compile and provide the information to the Commission. Because the 
Commission has seldom needed to rely on this requirement, staff 
estimates the annual time for reporting at 3 hours per entity.
    In obtaining OMB clearance for this reporting requirement in 2021, 
staff estimated a total reporting burden of 18 hours. For 2024, staff 
is increasing the

[[Page 87577]]

total burden estimate to 24 hours, based on an average estimate of 3 
hours expended by 8 common carriers. Using a $61/hour blended wage 
rate, the FTC now estimates an annual cost of $1,464.
    (2) Disclosure burden:
    (a) Advertising (applies to vendors). FTC staff estimates that the 
annual burden on the industry for the Rule's advertising disclosure 
requirements is 19,440 hours. The estimate reflects the burden on 
approximately 5,400 vendors who must make cost disclosures for all pay-
per-call services and additional disclosures if the advertisement is 
(a) directed to individuals under 18 or (b) for certain pay-per-call 
services. Because of continued industry changes and the fact that the 
Commission has seldom needed to rely on this requirement, staff is 
retaining its prior estimate that each vendor would have three 
advertisements requiring basic disclosures, and that 20 percent of 
these advertisements would require an additional disclosure. FTC staff 
estimates that each disclosure mandated by the Rule requires 
approximately one hour of compliance time. The total estimated annual 
cost of these burden hours is $1,010,880, applying a blended wage rate 
of $52/hour.
    (b) The Rule's preamble disclosure (applies to every pay-per-call 
service). To comply with the Act, the Pay-Per-Call Rule also requires 
that every pay-per-call service be preceded by a free preamble and that 
four different disclosures be made in each preamble. Additionally, 
preambles to sweepstakes pay-per-call services and services that offer 
information on federal programs must provide additional disclosures. 
Each preamble need only be prepared one time, unless the cost or other 
information is changed. There is no additional burden on the vendor to 
make the disclosures for each telephone call, because the preambles are 
taped and play automatically when a caller dials the pay-per-call 
number.
    Staff believes that the industry has had at least an 8 percent 
reduction in size since 2021 (when there were an estimated 18,110 pay-
per-call services). Accordingly, staff now estimates that there are no 
more than 16,660 advertised pay-per-call services.
    As with advertising disclosures, preambles for certain pay-per-call 
services require additional preamble disclosures. Consistent with the 
estimates of advertised pay-per-call services discussed above, staff 
estimates that 20 percent of all such pay-per-call services (3,332) 
relating to certain types of pay-per-call services would require such 
additional disclosures. Staff estimates that it would require no more 
than one hour to draft each type of disclosure because the disclosures 
applicable to the preamble closely approximate in content and volume 
the advertising disclosures discussed above. Accordingly, staff 
estimates a total of 19,992 burden hours (16,660 + 3,332) to comply 
with these requirements. At one hour each, cumulative labor cost 
associated with these disclosures is $1,039,584, using a blended wage 
rate of $52/hour (i.e., the same blended rate used for advertising 
disclosures).
    (c) Telephone-billed charges in billing statements (applies to 
vendors; applies to common carriers if acting as billing entity). 
Section 308.5(j) of the Rule, 16 CFR 308.5(j), requires that vendors 
ensure that certain disclosures appear on each billing statement that 
contains a charge for a call to a pay-per-call service. Because these 
disclosures appear on telephone bills already generated by the local 
telephone companies, and because the carriers are already subject to 
nearly identical requirements pursuant to the FCC's rules, FTC staff 
estimated that the burden to comply would be minimal. At most, the 
burden on the vendor would be limited to spot checking telephone bills 
to ensure that the charges are displayed in the manner required by the 
Rule.
    As it had in the 2021 PRA submission, FTC staff estimates that only 
10 percent of vendors would monitor billing statements in this manner 
and that it would take 12 hours per year to conduct such checks. Using 
the total estimated number of vendors (5,400), this results in a total 
of 6,480 burden hours. The total annual cost would be at most $349,920, 
using a blended rate of $54/hour.
    (d) Dispute resolution procedures in billing statements (applies to 
billing entities). This disclosure requirement is set forth in 16 CFR 
308.7(c). The blended rate used for these disclosures is $53/hour. FTC 
staff previously estimated that the billing entities would spend 
approximately 5 hours each to review, revise, and provide the 
disclosures on an annual basis. The estimated hour burden for the 
annual notice component of this requirement is 13,000 burden hours 
(based on 2,600 possible billing entities each requiring 5 hours), or a 
total cost of $689,000.
    (e) Further disclosures related to consumers reporting a billing 
error (applies to billing entities).
    As in the 2021 PRA submission for this Rule, FTC staff estimates 
that the incremental disclosure obligations related to consumers 
reporting a billing error under section 308.7(d) requires, on average, 
about one hour per each billing error. In 2021, staff projected that 
approximately 5 percent of an estimated 19,360,880 calls made to pay-
per-call services each year involves such a billing error. The staff is 
now reducing its prior estimate of the number of those calls by 
approximately 8 percent (to 17,812,010 calls) to reflect recent changes 
in the amount of pay-per-call services and their billing. Assuming the 
same apportionment (5 percent) of overall calls to pay-per-call 
services, this amounts to 890,600 hours, cumulatively. Applying the 
$52/hour blended wage rate, the estimated annual cost is $46,311,200.

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 
January 3, 2025. 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 ``Pay-Per-Call Rule, PRA 
Comment, P085405,'' 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

[[Page 87578]]

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 January 3, 
2025. 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. 2024-25559 Filed 11-1-24; 8:45 am]
BILLING CODE 6750-01-P


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