Federal Register / Vol. 60, No. 244 / Wednesday, December 20, 1995 / Rules and Regulations 65533

1The Rule then gives an example of proper length

representation when the product consists of two ten

foot sections: ‘‘maximum working length 17’, total

length of sections 20′’’ or ‘‘17′ extension ladder’’.

2 In accordance with Section 18 of the FTC Act,

15 U.S.C. 57a, the Commission submitted the NPR

to the Chairman of the Committee on Commerce,

Science and Transportation, United States Senate,

and the Chairman of the Subcommittee on

Commerce, Trade and Hazardous Materials, United

States House of Representatives, 30 days prior to its

publication.

3These procedures included: publishing a Notice

of Proposed Rulemaking, soliciting written

comments on the Commission’s proposal to repeal

the Rule; holding an informal hearing, if requested

by interested parties; receiving a final

recommendation from Commission staff; and

announcing final Commission action in the Federal

Register.

Commission is not aware of any existing

federal laws or regulations that would

conflict with repeal of the Rule. For

these reasons, the Commission certifies,

pursuant to Section 605 of the RFA, 5

U.S.C. 605, that this action will not have

a significant economic impact on a

substantial number of small entities.

IV. Paperwork Reduction Act

The Fiberglass Curtain Rule does not

impose ‘‘information collection

requirements’’ under the Paperwork

Reduction Act, 44 U.S.C. 3501 et seq.

Although the Rule contains disclosure

requirements, these disclosures are not

covered by the Act because the

disclosure language is mandatory and

provided by the government. Repeal of

the Rule, however, would eliminate any

burdens on the public imposed by these

disclosure requirements.

List of Subjects in 16 CFR Part 413

Fiberglass curtains and curtain fabric,

Trade practices.

PART 413—[REMOVED]

The Commission, under authority of

Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends

chapter I of title 16 of the Code of

Federal Regulations by removing Part

413.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95–31013 Filed 12–19–95; 8:45 am]

BILLING CODE 6750–01–M

16 CFR Part 418

Trade Regulation Rule Concerning

Deceptive Advertising and Labeling as

to Length of Extension Ladders

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

SUMMARY: The Federal Trade

Commission announces the repeal of the

Trade Regulation Rule concerning

Deceptive Advertising and Labeling as

to Length of Extension Ladders. The

Commission has reviewed the

rulemaking record and determined that

due to changes in industry practice, and

the existence of standards mandating

the point-of-sale disclosures required by

the Rule, the Rule no longer serves the

public interest and should be repealed.

This notice contains a Statement of

Basis and Purpose for repeal of the Rule.

EFFECTIVE DATE: December 20, 1995.

ADDRESSES: Requests for copies of the

Statement of Basis and Purpose should

be sent to Public Reference Branch,

Room 130, Federal Trade Commission,

6th Street & Pennsylvania Avenue N.W.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Neil

Blickman, Attorney, Federal Trade

Commission, Bureau of Consumer

Protection, Division of Enforcement,

Washington, DC 20580, (202) 326–3038.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Trade Regulation Rule

concerning Deceptive Advertising and

labeling as to Length of Extension

Ladders (Extension Ladder Rule), 16

CFR Part 418, was promulgated in 1969

(34 FR 929). The Extension Ladder Rule

declares that it is an unfair or deceptive

act or practice and an unfair method of

competition to represent the size or

length of an extension ladder in terms

of the total length of the component

sections thereof unless:

(a) Such size or length representation

is accompanied by the words ‘‘total

length of sections’’ or words with

similar meaning that clearly indicate the

basis of the representation; and,

(b) Such size or length representation

is accompanied by a statement in close

proximity that clearly and

conspicuously shows the maximum

length of the product when fully

extended for use (i.e., excluding the

footage lost in overlapping) along with

an explanation of the basis for such

representation.1

On May 23, 1995, the Commission

published an Advance Notice of

Proposed Rulemaking (ANPR) seeking

comment on proposed repeal of the

Extension Ladder Rule (60 FR 27245). In

accordance with Section 18 of the

Federal Trade Commission (FTC) Act,

15 U.S.C. 57a, the ANPR was sent to the

Chairman of the Committee on

Commerce, Science and Transportation,

United States Senate, and the Chairman

of the Subcommittee on Commerce,

Trade and Hazardous Materials, United

States House of Representatives. The

comment period closed on June 22,

1995. The Commission received no

comments.

On September 18, 1995, the

Commission published a Notice of

Proposed Rulemaking (NPR) initiating a

proceeding to consider whether the

Extension Ladder Rule should be

repealed or remain in effect (60 FR

48075).2 This rulemaking proceeding

was undertaken as part of the

Commission’s ongoing program of

evaluating trade regulation rules and

industry guides to ascertain their

effectiveness, impact, cost and need.

This proceeding also responded to

President Clinton’s National Regulatory

Reinvention Initiative, which, among

other things, urges agencies to eliminate

obsolete or unnecessary regulations. In

the NPR, the Commission announced its

determination, pursuant to 16 CFR 1.20,

the use expedited procedures in this

proceeding.3

The comment period closed on

October 18, 1995. The Commission

received no comments and no requests

to hold an informal hearing.

II. Basis for Repeal of Rule

The Commission periodically reviews

its rules and guides, seeking information

about their costs and benefits and their

regulatory and economic impact. The

information obtained assists the

Commission in identifying rules and

guides that warrant modification or

rescission. Accordingly, on April 19,

1993, the Commission published in the

Federal Register a request for public

comments on its Extension Ladder Rule

(58 FR 21125). The Commission asked

commenters to address questions

relating to the costs and benefits of the

Rule, the burdens it imposes, and the

basis for assessing whether it should be

retained, or amended.

Six specific comments were received.

One commenter, a consumer, opined

that the only label that should be on

ladders is the ‘‘maximum working

length’’ because consumers should not

have to do any figuring to determine the

length of the ladder that would meet

their needs.

Of the other five commenters, four

were manufacturers or suppliers of

ladders and one was a trade association.

A number of these comments referred to

the American National Standards

Institute (ANSI) standard A14, which

governs the labeling of ladders. ANSI

standard A14 details the requirements

for labeling portable wood ladders,

portable metals ladders, fixed ladders,

job made ladders, and portable
65534 Federal Register / Vol. 60, No. 244 / Wednesday, December 20, 1995 / Rules and Regulations

reinforced plastic ladders. The ANSI

standard requires specification of the

maximum working length of an

extension ladder, as well as several

other pieces of information not required

by the Extension Ladder Rule, including

the total length of the ladder’s sections

and the highest standing level of the

ladder. Compliance with the ANSI

standard, therefore, ensures compliance

with the labeling requirements of the

Extension Ladder Rule. Several

commenters noted this overlap in

coverage of the Extension Ladder Rule

and ANSI standard A14, and

recommended that the Rule be retained

unchanged.

Another commenter stated that the

Rule has imposed minor, incremental

costs, but opined that the benefits have

been significant in that consumers have

a better understanding of extension

ladder length. The commenter

questioned whether there was a

continuing need for this Rule given the

existence of ANSI standard A14 and UL

standard 184, which the commenter

stated also requires extension ladders to

be marked to indicate both the total

length of sections and the maximum

extended length or maximum working

length.

In addition to these specific

comments, one general comment,

applicable to several Commission Rules

being reviewed, was received from an

advertising agency association. This

organization recommended rescission of

the Extension Ladder Rule because the

general prohibitions of Section 5 of the

Federal Trade Commission Act covering

false and deceptive advertising apply to

the ladder industry. Thus, the

commenter concluded that the Rule

creates unnecessary administrative costs

for the government, industry members

and consumers.

Commission staff also engaged in an

informal review of industry practices by

examining the marking of length on

extension ladders available for retail

sale at several chain stores. That review

indicated general compliance with the

requirements of the Rule. Additionally,

a check of Commission records failed to

find any complaints regarding noncompliance with the Rule, or any

initiation of law enforcement actions

alleging violations of the Rule’s

requirements.

Accordingly, the Commission has

reviewed the rulemaking record and

determined to repeal the Extension

Ladder Rule due to changes in industry

practice, and the existence of industry

standards mandating the point-of-sale

disclosures required by the Rule.

III. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA),

5 U.S.C. 601–11, requires an analysis of

the anticipated impact of the repeal of

the Rule on small businesses. The

reasons for repeal of the Rule have been

explained in this Notice. Repeal of the

Rule would appear to have little or no

effect on small businesses. Moreover,

the Commission is not aware of any

existing federal laws or regulations that

would conflict with repeal of the Rule.

For these reasons, the Commission

certifies, pursuant to Section 605 of the

RFA, 5 U.S.C. 605, that this action will

not have a significant economic impact

on a substantial number of small

entities.

IV. Paperwork Reduction Act

The Extension Ladder Rule imposes

third-party disclosure requirements that

constitute ‘‘information collection

requirements’’ under the Paperwork

Reduction Act, 44 U.S.C. 3501 et seq.

Accordingly, repeal of the Rule would

eliminate any burdens on the public

imposed by these disclosure

requirements.

List of Subjects in 16 CFR Part 418

Advertisting, Extension ladders,

Trade practices.

PART 418—[REMOVED]

The Commission, under authority of

Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends

chapter I of title 16 of the Code of

Federal Regulations by removing Part

418.

By direction of the Commission.

Donald S. Clark,

Secretary.

FR Doc. 95–31011 Filed 12–19–95; 8:45 am]

BILLING CODE 6750–01–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8650]

RIN 1545–AS23

Disallowance of Deductions for

Employee Remuneration in Excess of

$1,000,000

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to the disallowance

of deductions for employee

remuneration in excess of $1,000,000.

The regulations provide guidance to

taxpayers that are subject to section

162(m), which was added to the Code

by the Omnibus Budget Reconciliation

Act of 1993.

DATES: These regulations are effective

January 1, 1994.

For dates of applicability, see § 1.162–

27(j).

FOR FURTHER INFORMATION CONTACT:

Robert Misner or Charles T. Deliee at

(202)622–6060 (not a toll free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collections of information

contained in these final regulations have

been reviewed and approved by the

Office of Management and Budget in

accordance with the Paperwork

Reduction Act (44 U.S.C. 3507) under

control number 1545–1466. Responses

to these collections of information are

required to obtain a tax deduction for

performance-based compensation in

excess of $1 million.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The estimated average annual burden

per respondent is 50 hours.

Comments concerning the accuracy of

this burden estimate and suggestions for

reducing this burden should be sent to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, T:FP,

Washington, DC 20224, and to the

Office of Management and Budget, Attn:

Desk Officer for the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503.

Books or records relating to this

collection of information must be

retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Background

Under section 162(m) of the Internal

Revenue Code, a publicly held

corporation is denied a deduction for

compensation paid to its ‘‘covered

employees’’ to the extent the

compensation exceeds $1,000,000 if the

compensation would otherwise be

deductible in a taxable year beginning

on or after January 1, 1994.

On December 20, 1993, proposed

regulations under section 162(m) (the

1993 proposed regulations) were

published in the Federal Register (58