Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices 33701

1Although telemarketing fraud causes significant

harm to consumers—Congress has estimated that

misrepresentations or material omissions in

telemarketing sales presentations result in $3

billion to $40 billion annually in consumer injury—

the harm by telemarketing fraud remains a small

fraction of the $400 billion in total annual sales

through telemarketing.

Missouri; and State Bank of Jefferson

County, De Soto, Missouri.

Board of Governors of the Federal Reserve

System, June 20, 2001.

Robert deV. Frierson

Associate Secretary of the Board.

[FR Doc. 01–15870 Filed 6–22–01; 8:45 am]

BILLING CODE 6210–01–S

FEDERAL TRADE COMMISSION

Agency Information Collection

Activities; Submission for OMB

Review; Comment Request

AGENCY: Federal Trade Commission

(FTC).

ACTION: Notice.

SUMMARY: The Federal Trade

Commission (FTC) has submitted to the

Office of Management and Budget

(OMB) for review under the Paperwork

Reduction Act (PRA) information

collection requirements contained in its

Telemarketing Sales Rule (‘‘TSR’’ or

‘‘Rule’’). The FTC is seeking public

comments on its proposal to extend

through August 31, 2004 the current

PRA clearance for information

collection requirements contained in the

regulations. That clearance expires on

August 31, 2001.

DATES: Comments must be submitted on

or before July 25, 2001.

ADDRESSES: Send comments to the

Office of Information and Regulatory

Affairs, Office of Management and

Budget, New Executive Office Building,

Room 10202, Washington, DC 20503,

ATTN.: Desk Officer for the Federal

Trade Commission, and to Secretary,

Federal Trade Commission, Room H–

159, Pennsylvania Ave., NW.,

Washington, DC 20580. All comments

should be captioned ‘‘Telemarketing

Sales Rule: Paperwork comment.’’

FOR FURTHER INFORMATION CONTACT:

Request for additional information or

copies of the proposed information

requirements should be addressed to

Karen Leonard, Attorney, Division of

Marketing Practices, Bureau of

Consumer Protection, Federal Trade

Commission, Room H–238, 600

Pennsylvania Ave., NW., Washington,

DC 20580, (202) 326–3597.

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. On May 4,

2001, the FTC sought comment on the

information collection requirements

associated with the TSR, 16 CFR Part

310 (OMB Control Number: 3084–0097).

See 66 FR 22562. No comments were

received on any aspect of the notice,

including staff’s PRA burden estimates.

Pursuant to the OMB regulations that

implement the PRA (5 CFR Part 1320),

the FTC is providing this second

opportunity for public comment while

seeing OMB approval to extend the

existing paperwork clearance for the

Rule.

The TSR implements the

Telemarketing and Consumer Fraud and

Abuse Prevention Act, 15 U.S.C. 6101–

6108 (‘‘Act’’). The Act seeks to prevent

deceptive or abusive telemarketing

practices. It mandates certain

disclosures by telemarketers, and directs

the Commission to consider

recordkeeping requirements in its

promulgation of a telemarketing rule to

address such practices. As required by

the Act, the TSR mandates certain

disclosures regarding telephone sales

and requires telemarketers to retain

certain records regarding advertising,

sales, and employees. The disclosures

provide consumers with information

necessary to make informed purchasing

decisions. The records are available for

inspection by the Commission and other

law enforcement personnel to determine

compliance with the Rule. Records may

also yield information helpful in

measuring and redressing consumer

injury stemming from Rule violations.

Burden Statement

Estimated annual hours burden:

2,301,000 hours.

The estimated recordkeeping burden

is 50,000 hours for all industry members

affected by the Rule. The estimated

burden related to the Rule’s required

disclosures is 2,251,000 hours (rounded

to nearest thousand) for all affected

industry members, for a total of

2,301,000 burden hours.

Recordkeeping: At the time the

Commission issued the Rule, it

estimated that during the initial and

subsequent years after the Rule took

effect, 100 new telemarketing entities

per year would find it necessary to

revise their practices to conform with

the Rule, each requiring approximately

100 hours to develop a compliant

recordkeeping system, for a cumulative

yearly total of 10,000 burden hours. The

Commission received no comments

relating to this estimate either when it

issued the Rule nor during the ensuing

rule review and PRA clearance

processes, and staff believes the

estimate remains representative. There

is no reason to believe that the number

of affected new entrants each year has

increased.

Of the estimated 39,900 industry

members who have already assembled

and retained the required records in

their recordkeeping systems, staff

estimates that each member requires

only one hour per year to file and store

records required by the Rule. For

purposes of estimation, staff has

rounded up the cumulative sub-total of

39,900 hours to 40,000 hours. Thus,

total estimated annual recordkeeping

burden for new and existing entities is

50,000 hours.

Disclosure: Staff believes that a

substantial majority of telemarketers

now make in the ordinary course of

business the disclosures the Rule

requires because doing so constitutes

good business practice.1 To the extent

this is so, the time and financial

resources needed to comply with

disclosure requirements do not

constitute ‘‘burden.’’ 16 CFR

1320.3(b)(2). Moreover, many state laws

require the same or similar disclosures

the Rule mandates. Thus, the disclosure

hours burden attributable solely to the

Rule is far less than the total number of

hours associated with the disclosures

overall. As it had done when last

seeking OMB clearance and related

public comment, staff estimates that the

disclosures the Rule requires would be

made in at least 75 percent of

telemarketing presentations even absent

the Rule. See 63 FR 40713, July 30,

1998. Staff received no comments

refuting this estimate. Accordingly, staff

determined that the hours burden

estimate for the Rule’s disclosure

requirements is 25 percent of the total

hours associated with disclosures of the

type the TSR requires. Staff estimates

the portion attributable to the Rule to be

2,251,000, rounded to the nearest

thousand. The components of this total

are detailed in the immediately

following paragraphs that address hours

burden.

In connection with the Rule’s

issuance and in the ensuing rule review

and PRA clearance processes, staff

estimated that the 39,900 (rounded to

40,000) industry members make

approximately 9 billion calls per year,

or 225,000 calls per year per company.

The TSR provides that if an industry

member chooses to solicit inbound calls

from consumers by advertising media

other than direct mail or by using direct

mail solicitations that make certain

required disclosures (providing for an

inbound telephone call as a possible

response), that member is exempted

33702 Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices

2 Direct Marketing Association Statistical Fact

Book 2000 (22d ed. 2000) (based on data for 1997–

1998, the two most recent years included within

this source information).

from complying with the Rule’s oral

disclosures. Staff estimates that at least

9,000 firms will choose to adopt

marketing methods that exempt them

from complying with the Rules oral

disclosure requirements. This

assumption is based on industry data

indicating that slightly over 20% of

industry members engage in direct mail

solicitations involving telemarketing 2

(and staff’s corollary assumption that

these solicitations will include written

disclosures the Rule alternatively

requires).

When the Commission issued the

TSR, staff estimated that it takes 7

seconds for telemarketers to disclose the

required outbound call information

orally. Staff also estimated that at least

60 percent of calls result in ‘‘hang-ups’’

before the seller or telemarketer can

make all the required disclosures and

that ‘‘hang-up’’ calls consume only 2

seconds. Accordingly, staff estimates

that the total time associated with these

initial disclosure requirements is

approximately 250 hours per firm

[(90,000 non-hang up calls (.40 ×

225,000) × 7 seconds per call] +

[135,000 hang-up calls (.60 × 225,000) ×

2 seconds per call]. Thus, the total time

expenditure for the 31,000 firms

choosing marketing methods that

require these oral disclosures is 7.75

million hours. The Commission has

received no comments on this estimate,

and staff believes it remains reasonable.

Based on the assumption that no more

than 25 percent of this time constitutes

‘‘burden’’ imposed solely by the Rule (as

opposed to the normal business

practices of most affected entities apart

from the Rule’s requirements), the

burden subtotal attributable to these

basic disclosures is 1,937,500 hours.

The TSR also requires further

disclosures before the customer pays for

goods or services. Specifically,

telemarketers must disclose the total

cost of the offered goods or services; all

material restrictions; and all material

terms and conditions of the seller’s

refund, cancellation, exchange, or

repurchase policies (if a representation

about such a policy is a part of the sales

offer). If a prize promotion is involved

in connection with the sale of goods or

services, the telemarketer must also

disclose information about the nonpurchase entry method for the prize

promotion. Staff estimates that these

disclosures consume approximately 10

seconds. However, the Rule requires

these disclosures only when a call

results in a sale. Staff estimates that

sales occur in approximately 6 percent

of telemarketing calls. Accordingly, the

estimated amount of time for these

disclosures is 37.5 hours per firm

[13,500 calls resulting in a sale (.06 ×

225,000 × 10 seconds)] or 1.163 million

hours for the 31,000 firms choosing

marketing methods that require oral

disclosures. The Commission has

received no comments on this estimate.

Again, staff believes the estimate

remains reasonable. Based on the

assumption that no more than 25

percent of this time constitutes

‘‘burden’’ imposed solely by the Rule,

the burden subtotal attributable to these

additional disclosures is 290,750 hours.

As noted above, staff estimates that

approximately 9,000 telemarketing firms

will choose the written disclosure

option. Firms electing this option are

likely to be those using written

advertising materials. Thus, the burden

of adding the required disclosures

should be minimal. Staff previously

estimated that a typical firm will spend

approximately 10 hours per year

engaged in activities ensuring

compliance with this provision of the

Rule, for an estimated total burden of

90,000 hours for all 9,000 firms using

written disclosure. As was the case

regarding the other estimates stated

above, when the Commission initially

published this estimate, it received no

comments on it nor had the Commission

received any such comments in the

ensuing Rule review and PRA clearance

processes. Staff believes this estimate

also remains reasonable. Based on the

assumption that no more than 25

percent of this time constitutes

‘‘burden’’ imposed solely by the Rule,

residual burden attributable to these

written disclosures is 22,500 hours.

Estimated annual labor cost burden:

$34,365,000.

The estimated labor cost for

recordkeeping is $600,000. Assuming a

cumulative burden of 10,000 hours/year

to set up compliant recordkeeping

systems, and applying to that a skilled

labor rate $20/hour, start-up costs

would approximate $200,000 yearly for

all new telemarketing entities. Staff also

estimates that existing industry

members require 40,000 hours,

cumulatively, to maintain compliance

with the TSR’s recordkeeping

provisions. Applying a clerical cost rate

of $10/hour, cumulative recordkeeping

maintenance would cost approximately

$400,000 annually. The estimated labor

cost for disclosure is $33,765,000, based

on an estimate of 2,251,000 disclosure

burden hours and a wage rate of $15/

hour. Thus, total labor cost, rounded to

the nearest thousand, is $34,365,000.

Estimated annual non-labor cost

burden: $10,022,000.

Total capital and start-up cost: Staff

estimates that the capital and start-up

costs associated withthe TSR’s

information collection requirements are

de minimis. The Rule’s recordkeeping

requirements mandate that companies

maintain records but not in any

particular form. While those

requirements necessitate that affected

entities have a means of storage,

industry members should have that

already regardless of the rule. Even if an

entity finds it necessary to purchase a

storage device, the cost is likely to be

minimal, especially when annualized

over the item’s useful life. The Rule’s

disclosure requirements require no

capital expenditures.

Other non-labor costs: Affected

entities need some storage media such

as file folders, computer diskettes, or

paper in order to comply with the Rule’s

recordkeeping requirements. Although

staff believes that most affected entities

would maintain the required records in

the ordinary course of business, staff

estimated that the approximately 40,000

industry members affected by the Rule

spend an annual amount of $50 each on

office supplies as a result of the Rule’s

recordkeeping requirements, for a total

recordkeeping cost burden of

$2,000,000.

To comply with the Rule’s disclosure

requirements, telemarketing firms likely

incur additional costs for telephone

service, assuming that the firms spend

more time on the telephone with

customers due to the required

disclosures. As further detailed above,

staff believes that the burden relating to

the required oral disclosures amounts to

8,913,000 hours (7.75 million initial

disclosure hours + 1.163 million hours

regarding sales). Assuming all calls to

customers are long distance, at a

commercial calling rate of 6 cents per

minute ($3.60 per hour), affected

entities as a whole may incur up to

$32,086,800 in telecommunications

costs as a result of the Rule’s disclosure

requirements. However, as also noted

above, staff estimates that only 25

percent of such disclosures constitute

‘‘burden.’’ Accordingly, the oral

disclosure cost burden, adjusted for this

apportionment, is $8,022,000, rounded

to the nearest thousand.

Staff believes that the estimated 9,000

entities choosing to comply with the

Rule through written disclosures incur

no additional capital or operating

expenses as a result of the Rule’s

requirements because they are likely to

provide written information to

prospective customers in the ordinary

course of business. Adding the required

Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices 33703

disclosures to that written information

likely requires no supplemental

expenditures.

Thus, total estimated non-labor cost

burden associated with the Rule is

$10,022,000 ($2,000,000 for

recordkeeping + $8,022,000 for oral

disclosures).

William E. Kovacic,

General Counsel.

[FR Doc. 01–15864 Filed 6–22–01; 8:45 am]

BILLING CODE 6750–01–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Centers for Disease Control and

Prevention

[Program Announcement 01120]

Public Health Preparedness for the

2002 Winter Olympic Games; Notice of

Availability of Funds

A. Purpose

The Centers for Disease Control and

Prevention (CDC) announces the

availability of fiscal year (FY) 2001

funds for a grant program for Public

Health Preparedness for the 2002 Winter

Olympic Games. This program

addresses the ‘‘Healthy People 2010’’

focus areas of Environmental Health and

Public Health Infrastructure. The

purpose of the program is to prepare the

public health system in the areas of the

safety of food, air, water, waste

handling, disease surveillance and

outbreak response, and emergency

medical services coordination in

response to the 2002 Winter Olympic

Games to be held in Utah.

B. Eligible Applicant

Assistance will be provided only to

the Utah Department of Health. No other

applications are solicited. Eligibility is

limited to the Utah Department of

Health to prepare the State’s public

health system for the 2002 Winter

Olympic Games.

Note: Title 2 United States Code, section

1611 states that an organization described in

section 501(c)(4) of the Internal Revenue

Code that engages in lobbying activities is not

eligible to receive Federal funds constituting

an award, grant, or loan.

C.. Availability of Funds

Approximately $250,000 is available

in FY 2001 to fund this award. It is

expected that the award will begin on or

about September 30, 2001, and will be

made for a one-year project period.

Funding estimates may change.

D. Where to Obtain Additional

Information

To obtain business management

technical assistance, contact: Sharron P.

Orum, Lead Grants Management

Specialist, Grants Management Branch

Procurement and Grants Office, Centers

for Disease Control and Prevention,

2920 Brandywine Road, Room 3000,

Atlanta, GA 30341–4146, Telephone

number: (770) 488–2716, E-mail

address: spo2@cdc.gov.

For program technical assistance,

contact: Edwin Kent Gray, Chief,

Emergency Preparedness and Response

Branch, National Center for

Environmental Health, Centers for

Disease Control and Prevention 4770

Buford Highway, Mailstop F38, Atlanta,

GA 30341 Telephone number: (770)

488–7100, Email address: keg1@cdc.gov.

Dated: June 19, 2001.

John L. Williams,

Director, Procurement and Grants Office,

Centers for Disease Control and Prevention

(CDC).

[FR Doc. 01–15823 Filed 6–22–01; 8:45 am]

BILLING CODE 4163–18–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Centers for Disease Control and

Prevention

[Program Announcement 01113]

Environmental Health Epidemiology

Resource Development for Mexico and

Latin American Countries Notice of

Availability of Funds

A. Purpose

The Centers for Disease Control and

Prevention (CDC) announces the

availability of fiscal year (FY) 2001

funds for a cooperative agreement

program with the Instituto Nacional de

Salud Publica (INSP).This program

addresses the ‘‘Healthy People 2010’’

focus area of Environmental Health.

The purpose of the program is to

establish an environmental health

epidemiology, environmental health

professional training, and

demonstration and training service

delivery program based in a university

setting in Mexico, with the objective to:

Measurably improve and increase

human resource expertise in the field of

environmental epidemiology and health

services delivery, in terms of availability

and quality of practice, in Mexico and

throughout the Latin American and

Caribbean country region.

No human subjects research will be

supported under this cooperative

agreement.

B. Eligible Applicant

Assistance will be provided only to

the Instituto Nacional de Salud Publica

(INSP). No other applications are

solicited.

The INSP, as the national institute of

public health of the Government of

Mexico, is the most appropriate and

qualified agency to provide the services

specified under this cooperative

agreement because:

The INSP is a leading environmental

health epidemiology teaching

institution, both at the undergraduate

and graduate levels, in Mexico and the

Latin American and Caribbean country

region, and is the only public health

teaching institution in the region whose

mission scope covers the entire region.

The INSP has formal collaborative

arrangements with other teaching

institutions in Mexico, including those

located near the Mexico-U.S. border,

and with those in other countries in the

region which provide the entre for

establishing and maintaining the

environmental health epidemiology

training and demonstration program

supported by this cooperative

agreement.

The INSP has a highly qualified

doctoral and master’s level teaching

staff whose responsibilities include the

conduct of programs related to the

achievement of the environmental

health epidemiology and fellow training

activities which are the intended

objectives of this cooperative agreement.

Note: Title 2 of the United States Code,

Section 1611, states that an organization

described in Section 501(c) (4) of the Internal

Revenue Code that engages in lobbying

activities is not eligible to receive Federal

funds constituting an award, grant,

cooperative agreement, contract, loan, or any

other form.

C. Availability of Funds

Approximately $229,000 is available

in FY 2001 to support this program. It

is expected that the award will begin on

September 30, 2001, and will be made

for a 12-month budget period within a

project period of up to five years.

Funding estimates may change.

Continuation awards within an

approved project period will be made

on the basis of satisfactory progress as

evidenced by required reports and the

availability of funds.

D. Where to Obtain Additional

Information

To obtain business management

technical assistance, contact: Sharron

Orum, Lead Grants Management

Specialist, Grants Management Branch,

Procurement and Grants Office, Centers

for Disease Control and Prevention,