This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

8312

Vol. 60, No. 30

Tuesday, February 14, 1995

FEDERAL TRADE COMMISSION

16 CFR Part 307

Regulations Under the Comprehensive

Smokeless Tobacco Health Education

Act of 1986

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: On March 20, 1991, the

Federal Trade Commission (‘‘the

Commission’’) issued final regulations

(56 FR 11653) amending 16 CFR part

307, the Commission’s existing

regulations pursuant to the

Comprehensive Smokeless Tobacco

Health Education Act of 1986 (‘‘the

Smokeless Tobacco Act’’). The

amendments deleted the exemption of

utilitarian objects from the regulations,

and provided a method for displaying

and rotating the health warnings on

utilitarian objects. The amendments also

changed the requirements for the

rotation of the health warnings on pointof-sale and non-point-of-sale

promotional materials (‘‘promotional

materials’’). On January 15, 1993, the

Commission deleted the promotional

materials portion of the 1991

amendment, indicating that it had failed

to receive sufficient comment on this

portion of the Regulation. At the same

time, the Commission re-proposed its

1991 rule for promotional materials

warning label rotations and sought

comment. Some of the comments

received suggested that the Commission

should not only amend the rotational

schedule for promotional materials, but

also amend the regulations governing

the rotation of utilitarian objects. Thus,

the Commission is seeking public

comment on whether the regulations

governing the rotation schedule for

utilitarian objects should be amended.

All persons are hereby notified of the

opportunity to submit written data,

views, and arguments concerning the

requirements for the rotation of health

warnings on utilitarian objects.

DATES: Written comments will be

accepted on or before April 17, 1995.

ADDRESSES: Send comments to

Secretary, Federal Trade Commission,

6th and Pennsylvania Avenue NW.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Phillip S. Priesman, Attorney, (202)

326–2484, Division of Advertising

Practices, Federal Trade Commission,

6th & Pennsylvania Avenue NW.,

Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Section A—Background

On January 15, 1993, the Commission

proposed amending 16 CFR part 307 (58

FR 4874) to modify the rotational

schedule for health warnings on

promotional materials. Some of the

comments received suggested that the

Commission should not only amend the

rotational provisions for promotional

materials, but also amend the

regulations governing the rotation of

utilitarian objects.

The proposed rule would provide that

a satisfactory plan for utilitarian objects

could provide for rotation according to

either the date the object is

disseminated or the date the object is

ordered. It would also delete the

exception permitting random rotation

under certain circumstances. This

exception was intended to alleviate the

hardship caused when date of

dissemination was specified as the only

acceptable basis for a rotation schedule.

The Commission currently permits

rotation methods based on

dissemination date or order date for

promotional materials. See 58 FR 4874

(Jan. 15, 1993). The proposed rule for

utilitarian items follows the rotation

method currently in effect for

promotional materials. However, the

proposed rule would permit rotation

based on dissemination date or order

date only if the production of materials

is carried out in a manner consistent

with customary business practices.

Thus, under the proposed rule, there

would no longer be any need for

random rotation. For these reasons, the

Commission is proposing the deletion of

the random rotation exception from the

regulations.

Section B—Questions

In particular, the Commission is

soliciting information on the following

questions:

Question 1. What is the likely effect

of the proposed requirements for the

rotation of health warnings or utilitarian

objects on the costs, profitability,

competitiveness, and employment of

small business entities?

Question 2. The Smokeless Tobacco

Act requires smokeless tobacco

companies to submit plans to the

Commission that specify the method the

companies will use to rotate, display,

and distribute the required health

warning statements on their packaging

and advertising. The original

requirement for the submission of plans

by marketers of smokeless tobacco

products was submitted to, and

approved by, the Office of Management

and Budget. OMB Control No. 3084–

0082.

By changing the requirements for the

rotation of the health warnings on

utilitarian objects, the proposed

amendments will require some of the

smokeless tobacco companies to revise

their rotational plans for utilitarian

objects. What are the possible

paperwork burdens that the proposed

utilitarian objects amendment to 16 CFR

Part 307 may impose?

Question 3. What are the possible

regulatory alternatives that would

reduce the economic impact of the

proposed rotational requirements for

warning labels on utilitarian objects, yet

fully implement the regulatory mandate

of the Smokeless Tobacco Act?

Section C—Regulatory Flexibility Act

When the Smokeless Tobacco

Regulations were first proposed, the

FTC certified that the Regulatory

Flexibility Act requirement for

regulatory analysis was not applicable

because the regulations did not appear

to have a significant economic impact

on a substantial number of small

entities. 51 FR 24378 (1986). The

Commission has re-examined that issue

with respect to the proposed

amendment for utilitarian objects and

has preliminarily determined that the

proposed amendment will not change

that determination because the

amendment merely enables

manufacturers of smokeless tobacco to

modify slightly an already existing

schedule by which they rotate the three

required warnings on utilitarian objects.

In order to ensure, however, that no

substantial economic impact is being

overlooked, public comment is

requested on the effect of the proposed

regulations on costs, profitability,
Federal Register / Vol. 60, No. 30 / Tuesday, February 14, 1995 / Proposed Rules 8313

1 15 U.S.C. 6101.

competitiveness, and employment of

small entities.

Subsequent to the receipt of public

comments, it will be decided whether

the preparation of a final regulatory

flexibility analysis is warranted.

In light of the above, it is certified that

the proposed amendments will not have

a significant economic impact on a

substantial number of small entities. 5

U.S.C. 605(b) (1982). This notice serves

as certification to that effect for the

purposes of the Small Business

Administration.

List of Subjects in 16 CFR Part 307

Health warnings, Smokeless tobacco,

Trade practices.

Accordingly, it is proposed that part

307 of 16 CFR be amended as follows:

PART 307—REGULATIONS UNDER

THE COMPREHENSIVE SMOKELESS

TOBACCO HEALTH EDUCATION ACT

OF 1986

1. The authority for part 307

continues to read as follows:

Authority: 15 U.S.C. 4401 et seq.

2. Section 307.12 is amended by

revising paragraph (b) to read as follows:

§ 307.12 Rotation, display, and

dissemination of warning statements in

smokeless tobacco advertising.

* * * *

[b] Each manufacturer, packager, or

importer of a smokeless tobacco product

must submit a plan to the Commission

or its designated representative that

ensures that the three warning

statements are rotated every 4 months in

alternating sequence. There may be

more than one system, however, that

complies with the Act and these

regulations. For example, a plan may

require all brands to display the same

warning during each 4-month period or

require each brand to display a different

warning during a given 4-month period.

A plan shall describe the method of

rotation and shall include a list of the

designated warnings for each 4-month

period during the first year for each

brand. A plan shall describe the method

that will be used to ensure the proper

rotation in different advertising media

in sufficient detail to ensure compliance

with the Act and these regulations,

although a number of different methods

may satisfy these requirements. For

example, a satisfactory plan for

advertising in newspapers, magazines,

or other periodicals could provide for

rotation according to either the cover or

closing date of the publication. A

satisfactory plan for posters and

placards, other than billboard

advertising, could provide for rotation

according to either the scheduled or the

actual appearance of the advertising. A

satisfactory plan for point-of-sale and

non-point-of-sale promotional materials

each as leaflets, pamphlets, coupons,

direct mail circulars, paperback book

inserts, or non-print items, or for

utilitarian objects, could provide for

rotation according to the date the

materials or objects are ordered by the

smokeless tobacco manufacturer, or the

date the objects or materials are

scheduled to be disseminated, provided

that the production of such materials or

objects is carried out in a manner

consistent with customary business

practices.

* * * * *

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95–3536 Filed 2–13–95; 8:45 am]

BILLING CODE 6750–01–M

16 CFR Part 310

Telemarketing Sales Rule

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: In this document, the Federal

Trade Commission (‘‘FTC’’ or

‘‘Commission’’) proposes to implement

the Telemarketing and Consumer Fraud

and Abuse Prevention Act

(‘‘Telemarketing Act’’ or ‘‘the Act’’).

Section 3 of the Act directs the FTC to

prescribe rules, within 365 days of

enactment of the Act, prohibiting

deceptive telemarketing acts or practices

and other abusive telemarketing acts or

practices.

DATES: Written comments must be

submitted on or before March 31, 1995.

Due to the time constraints of this

rulemaking proceeding, the Commission

does not contemplate any extensions of

this comment period or any additional

periods for written comment or rebuttal

comment.

Following the period for written

comments, Commission staff plan to

conduct a Public Workshop Conference

to afford Commission staff and

interested parties an opportunity to

explore and discuss issues raised during

the comment period. Notification of

interest in representing an affected,

interested party at the Public WorkshopConference must be submitted on or

before March 6, 1995. A list of affected

interests appears in Section D of the

Supplementary Information section.

The Public Workshop-Conference will

be held in Chicago, Illinois on April 18

through 20, 1995, from 9 a.m. until 5

p.m. each day.

ADDRESSES: Five paper copies of each

written comment should be submitted

to the Office of the Secretary, Room 159,

Federal Trade Commission,

Washington, DC 20580. To encourage

prompt and efficient review and

dissemination of the comments to the

public, all comments also should be

submitted, if possible, in electronic

form, on either a 51⁄4 or a 31⁄2 inch

computer disk, with a label on the disk

stating the name of the commenter and

the name and version of the word

processing program used to create the

document. (Programs based on DOS are

preferred. Files from other operating

systems should be submitted in ASCII

text format to be accepted.) Individuals

filing comments need not submit

multiple copies or comments in

electronic form. Submissions should be

captioned: ‘‘Proposed Telemarketing

Sales Rule,’’ FTC File No. R411001.

Notification of interest in the Public

Workshop-Conference should be

submitted in writing to Carole

Danielson, Division of Marketing

Practices, Federal Trade Commission,

Washington, D.C. 20580.

The Public Workshop-Conference will

be held in Chicago, Illinois, at the

Chicago Hilton Hotel, 720 South

Michigan Avenue, Chicago, Illinois

60605.

FOR FURTHER INFORMATION CONTACT:

David M. Torok, (202) 326–3140, or

Judith M. Nixon, (202) 326–3173,

Division of Marketing Practices, Bureau

of Consumer Protection, Federal Trade

Commission, Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Section A. Background

On August 16, 1994, the President

signed into law the Telemarketing Act,

Public Law No. 103–297. In enacting the

Telemarketing Act, Congress made the

following findings, set forth in section 2

of the Act: 1

(1) Telemarketing differs from other

sales activities in that it can be carried

out by sellers across State lines without

direct contact with the consumer.

Telemarketers also can be very mobile,

easily moving from State to State.

(2) Interstate telemarketing fraud has

become a problem of such magnitude

that the resources of the Federal Trade

Commission are not sufficient to ensure

adequate consumer protection from

such fraud.

(3) Consumers and others are

estimated to lose $40 billion a year in

telemarketing fraud.

(4) Consumers are victimized by other

forms of telemarketing deception and

abuse.