[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Proposed Rules]
[Pages 14049-14050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7434]



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FEDERAL TRADE COMMISSION

16 CFR Part 304


Request for Comments Concerning Rules and Regulations Under the 
Hobby Protection Act

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission requests public comments on its 
Rules and Regulations Issued Under the Hobby Protection Act (``the 
Rule''). The Commission, as a part of its systematic review of all 
current Commission regulations and guides, requests comments about the 
overall costs, benefits, and regulatory and economic impact of the 
Rule. Further, the Commission, as mandated by the Regulatory 
Flexibility Act, 5 U.S.C. 601, seeks information about the impact of 
the Rule on small business firms.

DATES: Written comments will be accepted until May 27, 1997.

ADDRESS: Comments should be should be identified as ``16 CFR Part 304--
Comment'' and sent to: Secretary, FTC, Room H-159, Sixth and 
Pennsylvania Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Robert E. Easton, Special Assistant, 
Division of Enforcement, Bureau of Consumer Protection, FTC, 
Washington, D.C. 20580, (202) 326-3029.

SUPPLEMENTARY INFORMATION: 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 and 
their regulatory and economic impact. The information obtained will 
assist the Commission in identifying rules and guides that warrant 
modification or rescission. Where appropriate, the Commission will 
combine such periodic general reviews with reviews seeking information 
about the economic impact of the rule on small business firms as 
required by the Regulatory Flexibility Act.

A. Background

    On November 29, 1973, Congress passed the Hobby Protection Act 
(``Act''), 15 U.S.C. 2101-2106. The Act requires manufacturers and 
importers of ``imitation political items'' \1\ to mark ``plainly and 
permanently'' such items with the ``calendar year'' such items were 
manufactured. 15 U.S.C. 2101(a). The Act also requires manufacturers 
and importers of ``imitation numismatic items'' \2\ to mark ``plainly 
and permanently'' such items with the word ``copy.'' 15 U.S.C. 2101(b). 
The Act further provides that the Commission is to promulgate 
regulations for determining the ``manner and form'' imitation political 
items and imitation numismatic items are to be permanently marked with 
the calendar year of manufacture or the word ``copy.'' 15 U.S.C. 
2101(c).
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    \1\ An imitation political item is ``an item which purports to 
be, but in fact is not, an original political item, or which is a 
reproduction, copy, or counterfeit of an original political item.'' 
15 U.S.C. 2106(2).
    \2\ An imitation numismatic item is ``an item which purports to 
be, but in fact is not, an original numismatic item or which is a 
reproduction, copy, or counterfeit of an original numismatic item.'' 
15 U.S.C. 2106(4).
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    Pursuant to the Act, in 1975 the Commission issued Rules and 
Regulations under the Hobby Protection Act, 16 CFR Part 304. The Rule 
tracks the definitions of terms used in the Act and implements the 
Act's ``plain and permanent'' marking requirements by establishing the 
sizes and dimensions of the letters and numerals to be used, the 
location of the marking on the item, and how to mark incusable and 
nonincusable items. In 1988, the Rule was amended to provide additional 
guidance on the minimum size of letters for the word ``copy'' as a 
proportion of the diameter of the diameter of coin reproductions.\3\ 53 
FR 38942 (1988).
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    \3\  Prior to the amendment, if a coin were too small to comply 
with the minimum letter size requirements, the manufacturer or 
importer had to individually request from the Commission a variance 
from those requirements. Because imitation miniature coins were 
becoming more common, the Commission determined that it was in the 
public interest to allow the placing of the word ``copy'' on 
miniature imitation coins in sizes that could be reduced 
proportionately with the size of the item.
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    In preparation for the reviews of the Rule, staff undertook a 
limited inquiry to ascertain the degree of compliance with the Rule. 
Based on this inquiry, it appears that there is a high level of 
compliance with the Rule, both as to imitation political items and 
imitation numismatic items.

B. Issues for Comment

    The Commission solicits written public comments on the following 
questions:
    (1) Do there continue to be reasons for legislative and regulatory 
intervention in the sale and marking of imitation political items and 
imitation numismatic items, but not for other items collected by 
hobbyists (e.g., stamps)? If so, please explain.
    (a) What benefits has the Rule provided to purchasers of the 
products or services affected by the Rule?
    (b) Has the Rule imposed costs on purchasers?
    (2) What changes, if any, should be made to the Rule to increase 
the benefits of the Rule to purchasers?
    (a) How would these changes affect the costs the Rule imposes on 
firms subject to its requirements?
    (3) What significant burdens or costs, including costs of 
compliance, has the Rule imposed on firms subject to its requirements?
    (a) Has the Rule provided benefits to such firms?
    (4) What changes, if any, should be made to the Rule to reduce the 
burdens or costs imposed on firms subject to its requirements?
    (a) How would these changes affect the benefits provided by the 
Rule?
    (5) Does the Rule overlap or conflict with other federal, state, or 
local laws or regulations?
    (6) Since the Rule was issued, what effects, if any, have changes 
in relevant technology or economic conditions had on the Rule?
    (7) What significant burdens or costs, including costs of 
compliance, has the Rule imposed on small firms subject to its 
requirements?
    (a) How do these burdens or costs differ from those imposed on 
larger firms subject to the Rule's requirements?
    (8) To what extent are the burdens or costs that the Rule imposes 
on small firms similar to those small firms would incur under standard 
and prudent business practices?
    (9) What changes, if any, should be made to the Rule to reduce the 
burdens or costs imposed on small firms?
    (a) How would these changes affect the benefits of the Rule?
    (b) Would such changes adversely affect the competitive position of 
larger firms?
    (10) The Rule currently mandates the minimum sizes for the calendar 
year to be marked on imitation political items and for the word 
``copy'' to be marked on imitation numismatic items.
    (a) Should the Commission amend the Rule to replace the mandated 
minimum sizes with a performance based standard (e.g., clear and 
prominent disclosure)?
    (b) If so, what should the performance based standard be?
    (c) What would be the costs and benefits of the proposed 
performance based standard?

List of Subjects in 16 CFR Part 304

    Hobbies, Labeling, Trade practices.
    Authority: 15 U.S.C. 41-58.


[[Page 14050]]


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 97-7434 Filed 3-24-97; 8:45 am]
BILLING CODE 7518-01-M