56696 Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 

8The Care Labeling Rule imposes no specific 

recordkeeping requirements. Although the Rule 

requires manufacturers and importers to have 

reliable evidence to support the recommended care 

instructions, companies may provide as support 

current technical literature or rely on past 

experience. 

9About 1 billion of the 18.4 billion garments 

produced annually are either not covered by the 

Care Labeling Rule (gloves, hats, caps, and leather, 

fur, plastic, or leather garments) or are subject to an 

exemption that allows care instructions to appear 

on packaging (hosiery). 

10See note 5. 

1Commission 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). 

incur no additional capital or other nonlabor costs as a result of the Regulations. 

4. The Care Labeling Rule, 16 CFR Part 

423 (OMB Control Number: 3084–0103) 

The Care Labeling Rule, 16 CFR Part 

423, requires manufacturers and 

importers to attach a permanent care 

label to all covered textile clothing in 

order to assist consumers in making 

purchase decisions and in determining 

what method to use to clean their 

apparel. Also, manufacturers and 

importers of piece goods used to make 

textile clothing must provide the same 

care information on the end of each bolt 

or roll of fabric. 

Estimated annual hours burden: 

6,889,000 hours, rounded to the nearest 

thousand (solely relating to 

disclosure 8). 

Staff estimates that approximately 

24,700 manufacturers or importers of 

textile apparel, producing about 17.4 

billion textile garments annually, are 

subject to the Rule’s disclosure 

requirements. The burden of developing 

proper care instructions may vary 

greatly among firms, primarily based on 

the number of different lines of textile 

garments introduced per year that 

require new or revised care instructions. 

Staff estimates the burden of 

determining care instructions to be 43 

hours each year per respondent, for a 

cumulative total of 1,062,100 hours. 

Staff further estimates that the burden of 

drafting and ordering labels is 2 hours 

each year per respondent, for a total of 

49,400 hours. Staff believes that the 

process of attaching labels is fully 

automated and integrated into other 

production steps for about 40 percent of 

the approximately 17.4 billion garments 

that are required to have care 

instructions on permanent labels.9 For 

the remaining 10.4 billion items (60 

percent of 17.4 billion), the process is 

semi-automated and requires an average 

of approximately two seconds per item, 

for a total of 5,777,778 hours per year. 

Thus, the total estimated annual burden 

for all respondents is 6,889,278 hours. 

Estimated annual cost burden: 

$39,218,000, rounded to the nearest 

thousand (solely relating to labor costs). 

Task Hourly rate Burden hours Labor cost 

Determine care instructions ....................................................................................... $20.00 1,062,100 $21,242,000 

Draft and order labels ................................................................................................ 13.00 49,400 642,200 

Attach labels .............................................................................................................. 10 3.00 5,777,778 17,333,334 

Total .................................................................................................................... .............................. .............................. 39,217,534 

Staff believes that there are no current 

start-up costs or other capital costs 

associated with the Rule. Because the 

labeling of textile products has been an 

integral part of the manufacturing 

process for decades, manufacturers have 

in place the capital equipment 

necessary to comply with the Rule’s 

labeling requirements. Based on 

knowledge of the industry, staff believes 

that much of the information required 

by the Rule would be included on the 

product label even absent those 

requirements. 

William Blumenthal, 

General Counsel. 

[FR Doc. 05–19318 Filed 9–27–05; 8:45 am] 

BILLING CODE 6750–01–P 

FEDERAL TRADE COMMISSION 

Agency Information Collection 

Activities; Submission for OMB 

Review; Comment Request 

AGENCY: Federal Trade Commission 

(‘‘FTC’’ or ‘‘Commission’’). 

ACTION: Notice. 

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’’) (44 U.S.C. 3501–3520). The 

FTC is seeking public comments on its 

proposal to extend through January 31, 

2009 the current PRA clearances for 

information collection requirements 

contained in four consumer financial 

regulations enforced by the 

Commission. Those clearances expire 

on January 31, 2006. 

DATES: Comments must be received on 

or before November 28, 2005. 

ADDRESSES: Interested parties are 

invited to submit written comments. 

Comments should refer to ‘‘Regs BEMZ: 

FTC File No. P054803’’ 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, (in ASCII format, 

WordPerfect, or Microsoft Word) as part 

of or as an attachment to e-mail 

messages directed to the following email box: paperworkcomment@ftc.gov. 

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 clearly labeled 

‘‘Confidential.’’ 1

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 will be considered by 

the Commission and will be available to 

the public on the FTC website, 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. 

Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 56697 

2PRA ‘‘burden’’ does not include effort expended 

in the ordinary course of business, regardless of any 

regulatory requirement. 5 CFR 1320.3(b)(2). 

3For example, large retailers may use computerbased and/or electronic means to provide required 

disclosures, including issuing some disclosures en 

masse, e.g., notices of changes in terms. Smaller 

retailers or other creditors may have less automated 

compliance systems but may nonetheless rely on 

electronic mechanisms for disclosures and 

recordkeeping. Regardless of size, some entities 

may utilize compliance systems that are fully 

integrated into their general business operational 

system; as such, they may have minimal additional 

burden. Other entities may have incorporated fewer 

of these approaches into their systems and may 

have a higher burden. 

4The Commission generally does not have 

jurisdiction over banks under the applicable 

regulations. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information or 

copies of the proposed information 

requirements should be addressed to 

Carole Reynolds, Attorney, Division of 

Financial Practices, Bureau of Consumer 

Protection, Federal Trade Commission, 

600 Pennsylvania Ave., NW., 

Washington, DC 20580, (202) 326–3230. 

SUPPLEMENTARY INFORMATION: Under the 

PRA, 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 the PRA, the 

FTC is providing this opportunity for 

public comment before requesting that 

OMB extend the existing paperwork 

clearance for the regulations noted 

herein. 44 U.S.C 3506(c)(2)(A). 

The FTC invites comments on: (1) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the 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 the information to be 

collected; and (4) ways to minimize the 

burden of the 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. 

The four regulations covered by this 

notice are: 

(1) Regulations promulgated under 

The Equal Credit Opportunity Act, 15 

U.S.C. 1691 et seq. (‘‘ECOA’’) 

(‘‘Regulation B’’) (OMB Control Number: 

3084–0087); 

(2) Regulations promulgated under 

The Electronic Fund Transfer Act, 15 

U.S.C. 1693 et seq. (‘‘EFTA’’) 

(‘‘Regulation E’’) (OMB Control Number: 

3084–0085); 

(3) Regulations promulgated under 

The Consumer Leasing Act, 15 U.S.C. 

1667 et seq., (‘‘CLA’’) (‘‘Regulation M’’) 

(OMB Control Number: 3084–0086); 

(4) Regulations promulgated under 

The Truth-In-Lending Act, 15 U.S.C. 

1601 et seq. (‘‘TILA’’) (‘‘Regulation Z’’) 

(OMB Control Number: 3084–0088). 

Each of these four rules impose 

certain recordkeeping and disclosure 

requirements associated with providing 

credit or with other financial 

transactions. As detailed below, the FTC 

staff has calculated the PRA burden for 

each rule based on the compliance costs 

of entities subject to enforcement by the 

FTC. All of these rules require covered 

entities to keep certain records. Staff 

believes that these entities would likely 

retain these records in the normal 

course of business even absent the 

recordkeeping requirement in the rules.2

There is, however, some burden 

associated with ensuring that covered 

entities do not prematurely dispose of 

relevant records during the period of 

time required by the applicable rule. 

Disclosure requirements involve both 

set-up and monitoring costs as well as 

certain transaction-specific costs. ‘‘Setup’’ burden, incurred by new entrants 

only, includes identifying the applicable 

disclosure requirements, determining 

compliance obligations, and designing 

and developing compliance systems and 

procedures. ‘‘Monitoring’’ burden, 

incurred by all covered entities, 

includes reviewing revisions to 

regulatory requirements, revising 

compliance systems and procedures as 

necessary, and monitoring the ongoing 

operation of systems and procedures to 

ensure continued compliance. 

‘‘Transaction-related’’ burden refers to 

the effort associated with providing the 

various required disclosures in 

individual transactions. While this 

burden varies with the number of 

transactions, the figures shown for 

transaction-related burden in the tables 

that follow are estimated averages. 

The actual range of compliance 

burden experienced by covered entities, 

and reflected in those averages, varies 

widely. Depending on the extent to 

which covered entities have developed 

computer-based systems and procedures 

for providing the required disclosures 

(and/or the extent which such entities 

utilize electronic transactions, 

communications, and/or electronic 

recordkeeping), and the efficacy of those 

systems and procedures, some entities 

may have little burden, while others 

may incur a higher burden.3

Calculating the burden associated 

with the four regulations’ disclosure 

requirements is very difficult because of 

the highly diverse group of affected 

entities. The ‘‘respondents’’ included in 

the following burden calculations 

consist of credit and lease advertisers, 

creditors, financial institutions, service 

providers, certain government agencies 

and others involved in delivering 

electronic fund transfers (‘‘EFTs’’) of 

government benefits, and lessors.4 The 

burden estimates represent staff’s best 

assessment, based on its knowledge and 

expertise relating to the financial 

services industry. To derive these 

estimates, staff considered the wide 

variations in covered entities’: (1) Size 

and location; (2) credit or lease products 

offered, extended, or advertised, and 

their particular terms; (3) types of EFTs 

used; (4) types and occurrences of 

adverse actions; (5) types of appraisal 

reports utilized; and (6) computer 

systems and electronic features of 

compliance operations. 

The required disclosures do not 

impose PRA burden on some covered 

entities because the entities make those 

disclosures in the ordinary course of 

business. In addition, as noted above, 

some entities use computer-based and/ 

or electronic means of providing the 

required disclosures, while others rely 

on methods requiring more manual 

effort. 

The cost estimates detailed below 

relate solely to labor costs and include 

the time necessary to train employees to 

be in compliance with the regulations. 

The applicable PRA requirements 

impose minimal capital or other nonlabor costs, as affected entities generally 

have the necessary equipment for other 

business purposes. Similarly, staff 

estimates that compliance with these 

rules entails minimal printing and 

copying costs beyond that associated 

with documenting financial transactions 

in the ordinary course of business. 

1. Regulation B 

The ECOA prohibits discrimination in 

the extension of credit. Regulation B, 12 

CFR 202, promulgated by the Board of 

Governors of the Federal Reserve 

System (‘‘FRB’’), establishes both 

recordkeeping and disclosure 

requirements to assist customers in 

understanding their rights under the 

ECOA and to assist in detecting 

unlawful discrimination. The FTC 

enforces the ECOA as to all creditors 

except those that are subject to the 

regulatory authority of another federal 

56698 Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 

5Regulation B contains model forms that 

creditors may use to gather and retain the required 

information. 

6The disclosure may be provided orally or in 

writing. Regulation B provides a model form to 

assist creditors in providing the disclosure. The 

FRB added this disclosure requirement in 2003. See 

52 FR 13144, 13163–64 (Mar. 18, 2003). 

agency (such as federally chartered or 

insured depository institutions). 

Estimated annual hours burden: 

3,189,000 hours, rounded to the nearest 

thousand (1,186,833 recordkeeping 

hours +2,001,771 disclosure hours). 

Recordkeeping: FTC staff estimates 

that Regulation B’s general 

recordkeeping requirements affect 

1,000,000 credit firms subject to the 

Commission’s jurisdiction, at an average 

annual burden of one hour per firm, for 

a total of 1,000,000 hours. Staff also 

estimates that the requirement that 

mortgage creditors monitor information 

about race/national origin, sex, age, and 

marital status imposes a maximum 

burden of one minute each 5 for 

approximately eleven million credit 

applications (based on industry data 

regarding the approximate number of 

mortgage purchase and refinance 

originations), for a total of 183,333 

hours. Staff also estimates that 

recordkeeping of self-testing subject to 

the regulation would affect 2,500 firms, 

with an average annual burden of one 

hour per firm, for a total of 2,500 hours, 

and that recordkeeping of any corrective 

action for self-testing would affect 250 

firms in a given year, with an average 

annual burden of four hours per firm, 

for a total of 1,000 hours. The total 

estimated recordkeeping burden is 

1,186,833 hours. 

Disclosure: Regulation B requires that 

creditors (i.e., entities that regularly 

participate in a credit decision, 

including setting the terms of the credit) 

provide notices whenever they take 

adverse action. It requires entities that 

extend various types of mortgage credit 

to provide a copy of the appraisal report 

to applicants or to notify them of their 

right to a copy of the report (and 

thereafter provide a copy of the report, 

upon the applicant’s request). It also 

requires that for accounts which 

spouses may use or for which they are 

contractually liable, creditors who 

report credit history must do so in a 

manner reflecting both spouses’

participation. Further, it requires 

creditors that collect applicant 

characteristics for purposes of 

conducting a self-test to disclose to 

those applicants that providing the 

information is optional, that the creditor 

will not take the information into 

account in any aspect of the credit 

transactions, and, if applicable, that the 

information will be noted by visual 

observation or surname if the applicant 

chooses not to provide it.6

Regulation B applies to retailers, 

mortgage lenders, mortgage brokers, 

finance companies, Internet businesses, 

and others. Below is staff’s best estimate 

of burden applicable to this highly 

broad spectrum of covered entities. 

Disclosure 

Setup/monitoring 1 Transaction-related 2

Respondents 

Average burden per respondent 

(hours) 

Total setup/ 

monitoring 

burden (hours) 

Number of 

transactions 

Average burden per transaction (minutes) 

Total transaction burden 

(hours) 

Total burden 

(hours) 

Credit history reporting 250,000 .25 62,500 125,000,000 .25 520,833 583,333 

Adverse action notices 1,000,000 .5 500,000 200,000,000 .25 833,333 1,333,333 

Appraisal notices .......... 25,000 .5 12,500 7,000,000 .25 29,167 41,667 

Appraisal reports .......... 25,000 .5 12,500 7,000,000 .25 29,167 41,667 

Self-test disclosures ..... 2,500 .5 1,250 125,000 .25 521 1,771 

Total ...................... 2,001,771 

1With respect to appraisal notices and appraisal reports, the above figures reflect an increase in applicable mortgage entities. The figures assume that approximately half of those entities (.5 × 50,000, or 25,000 businesses) would not otherwise provide this information and thus would 

be affected. The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request. 2The above figures reflect an increase in mortgage transactions. They assume that half of applicable mortgage transactions (.5 × 14,000,000, 

or 7,000,000) would not otherwise provide the appraisal notices and reports and thus would be affected. 

Estimated annual cost burden: 

$62,863,000 rounded to the nearest 

thousand ($18,623,493 recordkeeping 

cost + $44,239,138 disclosure cost). 

Staff calculated labor costs by 

applying appropriate hourly cost figures 

to the burden hours described above. 

The hourly rates used below ($32 for 

managerial or professional time, $21 for 

skilled technical time, and $14 for 

clerical time) are averages, based on 

current Bureau of Labor Statistics cost 

figures. 

Recordkeeping: Staff estimates that 

the general recordkeeping responsibility 

of one hour per creditor would involve 

approximately 90 percent clerical time 

and 10 percent skilled technical time. 

Keeping records of race/national origin, 

sex, age, and marital status requires an 

estimated one minute of skilled 

technical time. Keeping records of the 

self-test responsibility and of any 

corrective actions requires an estimated 

one hour and four hours, respectively, 

of skilled technical time. As shown 

below, the total recordkeeping cost is 

$18,623,493. 

Disclosure: For each notice or 

information item listed, staff estimates 

that the burden hours consist of 10 

percent managerial time and 90 percent 

skilled technical time. As shown below, 

the total disclosure cost is $44,239,138. 

Required task 

Managerial Skilled technical Clerical 

Total 

Time cost ($) 

(hours) 

Cost 

($32/hr.) 

Time 

(hours) Cost ($21/hr.) Time (hours) Cost ($14/hr.) 

General recordkeeping 0 $0 100,000 $2,100,000 900,000 $12,600,000 $14,700,000 

Other recordkeeping .... 0 0 183,333 3,849,993 0 0 3,849,993 

Recordkeeping of test .. 0 0 2,500 52,500 0 0 52,500 

Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 56699 

Required task 

Managerial Skilled technical Clerical 

Total 

Time cost ($) 

(hours) 

Cost 

($32/hr.) 

Time 

(hours) Cost ($21/hr.) Time (hours) Cost ($14/hr.) 

Recordkeeping of corrective action ............ 0 0 1,000 21,000 0 0 21,000 

Total recordkeeping .............. ........................ ........................ ........................ ........................ ........................ ........................ 18,623,493 

Credit history reporting 58,333 $1,866,656 525,000 11,025,000 0 0 12,891,656 

Adverse action notices 133,333 4,266,656 1,200,000 25,200,000 0 0 29,466,656 

Appraisal notices .......... 4,167 133,344 37,500 787,500 0 0 920,844 

Appraisal reports .......... 4,167 133,344 37,500 787,500 0 0 920,844 

Self-test disclosure ....... 177 5,664 1,594 133,474 0 0 39,138 

Total disclosure ..... ........................ ........................ ........................ ........................ ........................ ........................ 44,239,138 

Total recordkeeping and 

disclosure ... ........................ ........................ ........................ ........................ ........................ ........................ 62,862,631 

2. Regulation E 

The EFTA requires accurate 

disclosure of the costs, terms, and rights 

relating to EFT services to consumers. 

Regulation E, 12 CFR 205, promulgated 

by the FRB, establishes both 

recordkeeping and disclosure 

requirements applicable to entities 

providing EFT services to consumers. 

The FTC enforces the EFTA as to all 

entities providing EFT services except 

those that are subject to the regulatory 

authority of another federal agency 

(such as federally chartered or insured 

depository institutions). 

Estimated annual hours burden: 

3,580,000 hours (500,000 recordkeeping 

hours + approximately 3,080,000 

disclosure hours). 

Recordkeeping: Staff estimates that 

Regulation E’s recordkeeping 

requirements affect 500,000 firms 

offering EFT services to consumers and 

subject to the Commission’s 

jurisdiction, at an average annual 

burden of one hour per firm, for a total 

of 500,000 hours. 

Disclosure: Regulation E applies to 

financial institutions (including certain 

retailers and electronic commerce 

entities), service providers, various 

federal and state agencies offering EFTs, 

and others. Below is staff’s best estimate 

of burden applicable to this highly 

broad spectrum of covered entities. 

Disclosure 

Setup/monitoring Transaction-related 

Total burden 

(hours) Respondents 

Average burden 

per respondent 

(hours) 

Total setup/ 

monitoring 

burden (hours) 

Number of 

transactions 

Average burden 

per transaction 

(minutes) 

Total transaction burden 

(hours) 

Initial terms ............... 100,000 .5 50,000 1,000,000 .02 333 50,333 

Change in terms ...... 25,000 .5 12,500 33,000,000 .02 11,000 23,500 

Periodic statements 100,000 .5 50,000 1,200,000,000 .02 400,000 450,000 

Error resolution ........ 100,000 .5 50,000 1,000,000 5 83,333 133,333 

Transaction receipts 100,000 .5 50,000 5,000,000,000 .02 1,666,667 1,716,667 

Preauthorized transfers ........................ 500,000 .5 250,000 1,000,000 .25 4,167 254,167 

Service provider notices ...................... 100,000 .25 25,000 1,000,000 .25 4,167 29,167 

Govt. benefit notices 10,000 .5 5,000 100,000,000 .25 416,667 421,667 

ATM notices ............. 500 .25 125 250,000 .25 1,041 1,166 

Total .................. ........................ .......................... ........................ ........................ .......................... ........................ 3,080,000 

Estimated annual cost burden: 

$75,418,000, rounded to the nearest 

thousand ($7,350,00 recordkeeping cost 

+ $68,068,000 disclosure cost). 

Staff calculated labor costs by 

applying appropriate hourly cost figures 

to the burden hours described above. 

The hourly rates used below ($32 for 

managerial or professional time, $21 for 

skilled technical time, and $14 for 

clerical time) are averages, based on 

current Bureau of Labor Statistics cost 

figures. 

Recordkeeping: For the 500,000 

recordkeeping hours, staff estimates that 

10 percent of the burden hours require 

skilled technical time and 90 percent 

require clerical time. As shown below, 

the total recordkeeping cost is 

$7,350,000. 

Disclosure: For each notice or 

information item listed, staff estimates 

that 10 percent of the burden hours 

require managerial time and 90 percent 

require skilled technical time. As shown 

below, the total disclosure cost is 

$68,068,000. 

Required task 

Managerial Skilled technical Clerical 

Total cost 

Time ($) 

(hours) Cost ($32/hr.) Time (hours) 

Cost 

($21/hr.) Time (hours) Cost (14/hr) 

Recordkeeping ............. 0 $0 50,000 $1,050,000 450,000 $6,300,000 $7,350,000 

56700 Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 

Required task 

Managerial Skilled technical Clerical 

Total cost 

Time ($) 

(hours) Cost ($32/hr.) Time (hours) 

Cost 

($21/hr.) Time (hours) Cost (14/hr) 

Disclosure: 

Initial terms ........... 5,033 161,056 45,300 951,300 0 0 1,112,356 

Change in terms ... 2,350 75,200 21,150 444,150 0 0 519,350 

Periodic statements ................. 45,000 1,440,000 405,000 8,505,000 0 0 9,945,000 

Error resolution ..... 13,333 426,656 120,000 2,520,000 0 0 2,946,656 

Transaction receipts ................. 171,667 5,493,344 1,545,000 32,445,000 0 0 37,938,344 

Preauthorized 

transfers ............ 25,417 813,344 228,750 4,803,750 0 0 5,617,094 

Service provider 

notices ............... 2,917 93,344 26,250 551,250 0 0 644,594 

Govt. benefit notices ................... 42,167 1,349,344 379,500 7,969,500 0 0 9,318,844 

ATM notices .......... 116 3,712 1,050 22,050 0 0 25,762 

Total disclosure ............ ........................ ........................ ........................ ........................ ........................ ........................ 68,068,000 

Total recordkeeping 

and disclosures ........................ ........................ ........................ ........................ ........................ ........................ 75,418,000 

3. Regulation M 

The CLA requires accurate disclosure 

of the costs and terms of leases to 

consumers. Regulation M, 12 CFR 213, 

promulgated by the FRB, establishes 

disclosure requirements that assist 

consumers in comparison shopping and 

in understanding the terms of leases and 

recordkeeping requirements that assist 

enforcement of the CLA. The FTC 

enforces the CLA as to all lessors and 

advertisers except those that are subject 

to the regulatory authority of another 

federal agency (such as federally 

chartered or insured depository 

institutions). 

Estimated annual hours burden: 

279,000 hours, rounded to the nearest 

thousand (150,000 recordkeeping hours 

+ 129,167 disclosure hours). 

Recordkeeping: Staff estimates that 

Regulation M’s recordkeeping 

requirements affect approximately 

150,000 firms leasing products to 

consumers and subject to the 

Commission’s jurisdiction, at an average 

annual burden of one hour per firm, for 

a total of 150,000 hours. 

Disclosure: Regulation M applies to 

automobile lessors (such as auto dealers, 

independent leasing companies, and 

manufacturers’ captive finance 

companies), computer lessors (such as 

computer dealers and other retailers), 

furniture lessors, various electronic 

commerce lessors, and diverse types of 

lease advertisers, and others. Below is 

staff’s best estimate of burden applicable 

to this highly broad spectrum of covered 

entities. 

Disclosure 

Setup/monitoring Transaction-related 

Total burden 

(hours) Respondents 

Average burden per respondent 

(hours) 

Total setup/ 

monitoring 

burden (hours) 

Number of 

transactions 

Average burden per transaction (minutes) 

Total transaction burden 

(hours) 

Auto leases 1 ................ 50,000 .75 37,500 2,500,000 .50 20,833 58,333 

Other leases 2 .............. 100,000 .50 50,000 1,000,000 .25 4,167 54,167 

Advertising ................... 25,000 .50 12,500 1,000,000 .25 4,167 16,667 

Total ...................... ........................ ........................ ........................ ........................ ........................ ........................ 129,167 

1This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 

1667(1); 12 CFR 213.2(e)(1). 2This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small appliances, furniture, and other transactions. (Only consumers leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR 

213.2(e)(1). 

Estimated annual cost burden: 

$5,060,000, rounded to the nearest 

thousand ($2,205,5000 recordkeeping 

cost + $2,854,594 disclosure cost). 

Staff calculated labor costs by 

applying appropriate hourly cost figures 

to the burden hours described above. 

The hourly rates used below ($32 for 

managerial or professional time, $21 for 

skilled technical time, and $14 for 

clerical time) are averages, based on 

current Bureau of Labor Statistics cost 

figures. 

Recordkeeping: For the 150,000 

recordkeeping hours, staff estimates that 

10 percent of the burden hours require 

skilled technical time and 90 percent 

require clerical time. As shown below, 

the total recordkeeping cost is 

$2,205,000. 

Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 56701 

Disclosure: For each notice or 

information item listed, staff estimates 

that 10 percent of the burden hours 

require managerial time and 90 percent 

require skilled technical time. As shown 

below, the total disclosure cost is 

$2,854,594. 

Required task 

Managerial Skilled technical Clerical 

Total cost ($) 

Time (hours) Cost ($32/hr.) Time (hours) Cost ($21/hr.) Time (hours) Cost ($14/hr.) 

Recordkeeping ............. 0 $0 15,000 $315,000 135,000 $1,890,000 $2,205,000 

Disclosures: 

Auto leases ........... 5,833 186,656 52,500 1,102,500 0 0 1,289,156 

Other leases ................. 5,417 173,344 48,750 1,023,750 0 0 1,197,094 

Advertising ................... 1,667 53,344 15,000 315,000 0 0 368,344 

Total disclosures ... ........................ ........................ ........................ ........................ ........................ ........................ 2,854,594 

Total recordkeeping and disclosures ............. ........................ ........................ ........................ ........................ ........................ ........................ 5,059,594 

4. Regulation Z 

The TILA was enacted to foster 

comparison credit shopping and 

informed credit decision making by 

requiring accurate disclosure of the 

costs and terms of credit to consumers. 

Regulation Z, 12 CFR 226, promulgated 

by the FRB, establishes both 

recordkeeping and disclosure 

requirements to assist consumers and 

the enforcement of the TILA. The FTC 

enforces the TILA as to all creditors and 

advertisers except those that are subject 

to the regulatory authority of another 

federal agency (such as federally 

chartered or insured depository 

institutions). 

Estimated annual hours burden: 

17,439,000 hours, rounded to the 

nearest thousand (1,000,000 

recordkeeping hours + 16,439,165 

disclosure hours). 

Recordkeeping: FTC staff estimates 

that Regulation Z’s recordkeeping 

requirements affect approximately 

1,000,000 firms offering credit and 

subject to the Commission’s 

jurisdiction, at an average annual 

burden of one hour per firm, for a total 

of 1,000,000 hours. 

Disclosure: Regulation Z disclosure 

requirements pertain to open-end and 

closed-end credit. The Regulation 

applies to retailers (such as department 

stores, appliance stores, discount 

retailers, medical-dental service 

providers, home improvement sellers, 

and electronic commerce retail 

operators); mortgage companies; finance 

companies; credit advertisers; auto 

dealerships; student loan companies; 

home fuel or power services (for 

furnaces, stoves, microwaves, and other 

heating, cooling or residential power 

equipment); credit advertisers; and 

others. Below is staff’s best estimate of 

burden applicable to this highly broad 

spectrum of covered entities. 

Disclosure 1

Setup/monitoring Transaction-related 

Total burden 

hours Respondents 

Average burden 

per respondent 

(hours) 

Total setup/ 

monitoring 

burden (hours) 

Number of 

transactions 

Average burden 

per transaction 

(minutes) 

Total transaction burden 

(hours) 

Open-end credit: 

Initial terms ....... 100,000 .5 50,000 50,000,000 .25 208,333 258,333 

Rescission notices ............... 10,000 .5 5,000 500,000 .25 2,083 7,083 

Change in terms 25,000 .5 12,500 136,000,000 .125 283,333 295,833 

Periodic statements ............. 100,000 .5 50,000 4,800,000,000 .0625 5,000,000 5,050,000 

Error resolution 100,000 .5 50,000 10,000,000 5 833,333 883,333 

Credit and 

charge card 

accounts ........ 100,000 .5 50,000 50,000,000 .25 208,333 258,333 

Home equity 

lines of credit 10,000 .5 5,000 5,000,000 .25 20,833 25,833 

Advertising ........ 250,000 .25 62,500 700,000 .5 5,833 68,333 

Closed-end credit: 

Credit disclosures .............. 800,000 .5 400,000 330,000,000 1 .5 8,250,000 8,650,000 

Rescission notices ............... 100,000 .5 50,000 34,000,000 1 566,667 616,667 

Variable rate 

mortgages ..... 75,000 .5 37,500 3,000,000 1 .5 75,000 112,500 

High rate/highfee mortgages 50,000 .5 25,000 750,000 1 .5 18,750 43,750 

Reverse mortgages ............. 50,000 .5 25,000 150,000 1 2,500 27,500 

Advertising ............... 500,000 .25 125,000 1,000,000 1 16,667 141,667 

Total openend credit ........................ .......................... ........................ ........................ .......................... ........................ 6,847,081 

56702 Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 

Disclosure 1

Setup/monitoring Transaction-related 

Total burden 

hours Respondents 

Average burden 

per respondent 

(hours) 

Total setup/ 

monitoring 

burden (hours) 

Number of 

transactions 

Average burden 

per transaction 

(minutes) 

Total transaction burden 

(hours) 

Total 

closedend credit ........................ .......................... ........................ ........................ .......................... ........................ 9,592,084 

Total credit ........................ .......................... ........................ ........................ .......................... ........................ 16,439,165 

1Open-end transactions with rescission notices (where the notices may not be otherwise provided) have increased. Closed-end variable rate 

mortgages have increased. Computer technology use has expanded in some closed-end areas with lengthy disclosures that previously involved 

more manual efforts, i.e., credit, variable rate, and high rate/high fee disclosures. 

Estimated annual cost burden: 

$378,006,000, rounded to the nearest 

thousand ($14,700,000 recordkeeping 

cost + $363,305,530 disclosure cost). 

Staff calculated labor costs by 

applying appropriate hourly cost figures 

to the burden hours described above. 

The hourly rates used below ($32 for 

managerial or professional time, $21 for 

skilled technical time, and $14 for 

clerical time) are averages, based on 

current Bureau of Labor Statistics cost 

figures. 

Recordkeeping: For the 1,000,000 

recordkeeping hours, staff estimates that 

10 percent of the burden hours require 

skilled technical time and 90 percent 

require clerical time. As shown below, 

the total recordkeeping cost is 

$14,700,000. 

Disclosure: For each notice or 

information item listed, staff estimates 

that 10 percent of the burden hours 

require managerial time and 90 percent 

require skilled technical time. As shown 

below, the total disclosure cost is 

$363,305,530. 

Required task 

Managerial Skilled technical Clerical 

Total cost ($) 

Time (hours) Cost ($32/hr.) Time (hours) Cost ($21/hr.) Time (hours) Cost ($14/hr.) 

Recordkeeping ............. 0 $0 100,000 $2,100,000 900,000 $12,600,000 $14,700,000 

Open-end credit disclosures: 

Initial terms ........... 25,833 826,656 232,500 4,882,500 0 0 5,709,156 

Rescission notices 708 22,656 6,375 133,875 0 0 156,531 

Change in terms ... 29,583 946,656 266,250 5,591,250 0 0 6,537,906 

Periodic statements ................. 505,000 16,160,000 4,545,000 95,445,000 0 0 111,605,000 

Error resolution ..... 88,333 2,826,656 795,000 16,695,000 0 0 19,521,656 

Credit and charge 

card accounts .... 25,833 826,656 232,500 4,882,500 0 0 5,709,156 

Home equity lines 

of credit ............. 2,583 82,656 23,250 488,250 0 0 570,906 

Advertising ................... 6,833 218,656 61,500 1,291,500 0 0 1,510,156 

Total open-end 

credit .......... ........................ ........................ ........................ ........................ ........................ ........................ 151,320,467 

Closed-end credit disclosures: 

Credit disclosures 865,000 27,680,000 7,785,000 163,485,000 0 0 191,165,000 

Rescission notices 61,667 1,973,344 555,000 11,655,000 0 0 13,628,344 

Variable rate mortgages ................. 11,250 360,000 101,250 2,126,250 0 0 2,486,250 

High-rate/high-fee 

mortgages ......... 4,375 140,000 39,375 826,875 0 0 966,875 

Reverse mortgages 2,750 88,000 24,750 519,750 0 0 607,750 

Advertising ............ 14,167 453,344 127,500 2,677,500 0 0 3,130,844 

Total closedend credit ... ........................ ........................ ........................ ........................ ........................ ........................ 211,985,063 

Total disclosures .......... ........................ ........................ ........................ ........................ ........................ ........................ 363,305,530 

Total recordkeeping 

and disclosures ........................ ........................ ........................ ........................ ........................ ........................ 378,005,530 

Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices 56703 

1Commission 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). 

2Available at http://www.ftc.gov/reports/ 

violence/vioreport.pdf. 

3As indicated on its website, the ESRB ‘‘is a selfregulatory body for the interactive entertainment 

software industry established in 1994 by the 

Entertainment Software Association, formerly the 

Interactive Digital Software Association. ESRB 

independently applies and enforces ratings, 

advertising guidelines, and online privacy 

principles adopted by the computer and video game 

industry. The ESRB rating system helps parents and 

other consumers choose the games that are right for 

their families. ESRB ratings have two parts: rating 

symbols that suggest what age group the game is 

best for, and content descriptors that indicate 

elements in a game that may have triggered a 

particular rating and/or may be of interest or 

concern.’’

4See 2000 Report, Appendix F at http:// 

www.ftc.gov/reports/violence/appendicesviorpt.pdf. 

Appendix F also contains a detailed discussion of 

the underlying methodology and findings. 

5Available at http://www.ftc.gov/reports/ 

violence/violence010423.pdf. 

6Available at http://www.ftc.gov/os/2001/12/ 

violencereport1.pdf. 

7Available at http://www.ftc.gov/reports/ 

violence/mvecrpt0206.pdf. 

8Available at http://www.ftc.gov/os/2004/07/ 

040708kidsviolencerpt.pdf. 

9Mature-rated games contain content that may be 

suitable for persons 17 years of age and older. 

10See July 2004 Report, Appendix B at http:// 

www.ftc.gov/reports/violence/appendicesviorpt.pdf. 

William Blumenthal, 

General Counsel. 

[FR Doc. 05–19319 Filed 9–27–05; 8:45 am] 

BILLING CODE 6750–01–P 

FEDERAL TRADE COMMISSION 

Agency Information Collection 

Activities: Reinstatement of Existing 

Collection; Comment Request 

AGENCY: Federal Trade Commission. 

ACTION: Notice. 

SUMMARY: The Federal Trade 

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

intends to conduct a survey of parents 

who have one or more children, age 11–

16 years, who play video or personal 

computer games. The FTC will also 

survey children, between the ages of 11 

and 16, who play video or personal 

computer games. The surveys are a 

follow up to the Commission’s surveys 

conducted in 2000 on consumers’ use of 

and familiarity with the Entertainment 

Software Rating Board (‘‘ESRB’’) rating 

system. Before gathering this 

information, the FTC is seeking public 

comments on its proposed consumer 

research. Comments will be considered 

before the FTC submits a request for 

Office of Management and Budget 

(‘‘OMB’’) review under the Paperwork 

Reduction Act (‘‘PRA’’), 44 U.S.C. 3501–

3520. 

DATES: Comments must be received on 

or before November 28, 2005. 

ADDRESSES: Interested parties are 

invited to submit written comments. 

Comments should refer to 

‘‘Entertainment Industry Study: FTC 

File No. P994511’’ 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 G), 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, (in ASCII format, 

WordPerfect, or Microsoft Word) as part 

of or as an attachment to e-mail 

messages directed to the following email box: entstudy@ftc.gov. 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 clearly labeled ‘‘Confidential.’’ 1

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 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 Keith R. 

Fentonmiller, (202) 326–2775, or 

Richard F. Kelly, (202) 326–3304, 

Attorneys, Federal Trade Commission, 

Bureau of Consumer Protection, 

Division of Advertising Practices, 600 

Pennsylvania Ave., NW., Washington, 

DC 20580. 

SUPPLEMENTARY INFORMATION: In 

September 2000, the Commission issued 

a report requested by the President and 

Congress entitled, Marketing Violent 

Entertainment to Children: A Review of 

Self-Regulation and Industry Practices 

in the Motion Picture, Music Recording 

& Electronic Game Industries (hereafter 

‘‘2000 Report’’).2 The Commission 

found that the electronic game industry 

had engaged in widespread marketing of 

violent electronic games to children 

that: (1) Was inconsistent with the 

Electronic Software Rating Board 

(‘‘ESRB’’) rating system; and (2) 

undermined parents’ attempts to make 

informed decisions about their 

children’s exposure to violent content.3

Similar results were found for the 

motion picture and music recording 

industries. The Commission also found 

that advertisements for electronic games 

frequently failed to contain rating 

information. Further, the Commission’s 

national surveys of parents and children 

found that only 61% of parents were 

aware of the ESRB system, and nearly 

half of those parents reported that they 

rarely or never use the ESRB system.4

In April 2001,5 December 2001,6 June 

2002,7 and July 2004,8 the Commission 

issued follow-up reports to assess 

changes in industry practices. The first 

two follow-up reports documented 

progress by the electronic game industry 

to limit advertising in popular teen 

media. The third follow-up report found 

that the game industry was in 

substantial compliance with ESRB 

standards governing ad placements and 

disclosure of rating information in 

advertising. There were, however, some 

advertisements for Mature-rated games 

placed on television programs with 

large numbers of teen viewers and 

continued placement of such ads in 

game enthusiast magazines with large 

youth readership.9 The Commission’s 

July 2004 report found substantial 

compliance with ESRB standards 

governing ad placements and that 

industry members generally were 

prominently disclosing rating 

information in advertising and on 

product packaging. A ‘‘mystery 

shopper’’ survey of retailers conducted 

on behalf of the Commission in 2003, 

however, found that 69% of young teen 

shoppers (age 13–16) were able to buy 

Mature-rated games, although there was 

some improvement from earlier 

undercover shopping surveys conducted 

in 2000 and 2001.10

Members of Congress and parental 

advocacy groups continue to voice 

concern about parents’ knowledge and 

use of the ESRB system, the accuracy of