Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
| Published date | 27 October 2020 |
| Citation | 85 FR 68068 |
| Record Number | 2020-23764 |
| Section | Notices |
| Court | Federal Trade Commission |
Federal Register, Volume 85 Issue 208 (Tuesday, October 27, 2020)
[Federal Register Volume 85, Number 208 (Tuesday, October 27, 2020)]
[Notices]
[Pages 68068-68070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23764]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (PRA),
the Federal Trade Commission (FTC or Commission) is seeking public
comment on its proposal to extend for an additional three years the
Office of Management and Budget (OMB) clearance for information
collection requirements in Trade Regulation Rule entitled Labeling and
Advertising of Home Insulation (R-value Rule or Rule). That clearance
expires on January 31, 2021.
DATES: Comments must be received on or before December 28, 2020.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``R-value Rule; PRA
Comment: FTC File No. P072108'' on your comment, and file your comment
online at https://www.regulations.gov by following the instructions on
the web-based form. If you prefer to file your comment on paper, mail
your comment to the following address: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of
Enforcement, Federal Trade Commission, Room CC-9528, 600 Pennsylvania
Avenue NW, Washington, DC 20580, (202) 326-2889.
SUPPLEMENTARY INFORMATION:
Title: R-value Rule, 16 CFR part 460.
OMB Control Number: 3084-0109.
Type of Review: Extension of a currently approved collection.
Likely Respondents: Insulation manufacturers, installers, home
builders, home sellers, insulation sellers.
Estimated Annual Hours Burden: 132,707 hours.
Estimated Annual Cost Burden: $2,732,510 (solely related to labor
costs).
Abstract: The R-value Rule establishes uniform standards for the
substantiation and disclosure of accurate, material product information
about the thermal performance characteristics of home insulation
products. The R-value of an insulation signifies the insulation's
degree of resistance to the flow of heat. This information tells
consumers how well a product is likely to perform as an insulator and
allows consumers to determine whether the cost of the insulation is
justified.
As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in the Commission's R-
value Rule.
R-value Rule Burden Statement
Estimated annual hours burden: 132,707 hours.
The Rule's requirements include product testing, recordkeeping, and
third-party disclosures on labels, fact sheets, advertisements, and
other promotional materials. Based on information provided by members
of the insulation industry, staff estimates that the Rule affects: (1)
150 Insulation manufacturers and their testing laboratories; (2) 1,615
installers who sell home insulation; (3) 125,000 new home builders/
sellers of site-built homes and approximately 5,500 dealers who sell
manufactured housing; and (4) 25,000 retail sellers who sell home
insulation for installation by consumers.
(1) Manufacturers
Under the Rule's testing requirements, manufacturers must test each
insulation product for its R-value. Based on past industry input, staff
estimates that the test takes approximately two hours. Approximately 15
of the 150 insulation manufacturers in existence introduce one new
product each year. Their total annual testing burden is therefore
approximately 30 hours.
Staff further estimates that most manufacturers require an average
of approximately 20 hours per year regarding third-party disclosure
requirements in advertising and other promotional materials. Only the
five or six largest manufacturers require additional time,
approximately 80 hours each. Thus, the annual third-party disclosure
burden for manufacturers is approximately 3,360 hours [(144
manufacturers x 20 hours) + (6 manufacturers x 80 hours)].
While the Rule imposes recordkeeping requirements, most
manufacturers and their testing laboratories keep their testing-related
records in the ordinary course of business. Staff estimates that no
more than one additional hour per year per manufacturer is necessary to
comply with this requirement, for an annual recordkeeping burden of
approximately 150 hours (150 manufacturers x 1 hour).
(2) Installers
Installers are required to show the manufacturers' insulation fact
sheet to retail consumers before purchase. They must also disclose
information in contracts or receipts concerning the R-value and the
amount of insulation to install. Staff estimates that two minutes per
sales transaction is sufficient to comply with these requirements.
Approximately 2,000,000 retrofit insulations (an industry source's
estimate) are installed by approximately 1,615 installers per year,
and, thus, the related annual burden total is approximately 66,667
hours (2,000,000 sales transactions x 2 minutes). Staff anticipates
that one hour per year per installer is sufficient to cover required
disclosures in advertisements and other promotional materials. Thus,
the burden for this requirement is approximately 1,615 hours per year.
In addition, installers must keep records that
[[Page 68069]]
indicate the substantiation relied upon for savings claims. The
additional time to comply with this requirement is minimal--
approximately 5 minutes per year per installer--for a total of
approximately 135 hours.
(3) New Home Sellers
New home sellers must make contract disclosures concerning the
type, thickness, and R-value of the insulation they install in each
part of a new home. Staff estimates that no more than 30 seconds per
sales transaction is required to comply with this requirement, for a
total annual burden of approximately 10,750 hours (an estimated
1,290,000 new home sales per year \1\ x 30 seconds). New home sellers
who make energy savings claims must also keep records regarding the
substantiation relied upon for those claims. Staff believes that the 30
seconds covering disclosures would also encompass this recordkeeping
element.
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\1\ See Table 3b on housing starts for privately owned units for
2019 at https://www.census.gov/construction/nrc/pdf/newresconst_202006.pdf.
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(4) Retail Sellers
The Rule requires that the approximately 25,000 retailers who sell
home insulation make fact sheets available to consumers before
purchase. This can be accomplished by, for example, placing copies in a
display rack or keeping copies in a binder on a service desk with an
appropriate notice. Replenishing or replacing fact sheets should
require no more than approximately one hour per year per retailer, for
a total of 25,000 annual hours, industry-wide.
The Rule also requires specific disclosures in advertisements or
other promotional materials to ensure that the claims are fair and not
deceptive. This burden is very minimal because retailers typically use
advertising copy provided by the insulation manufacturer, and even when
retailers prepare their own advertising copy, the Rule provides some of
the language to be used. Accordingly, approximately one hour per year
per retailer should suffice to meet this requirement, for a total
annual burden of approximately 25,000 hours.
Retailers who make energy savings claims in advertisements or other
promotional materials must keep records that indicate the
substantiation they are relying upon. Because few retailers make these
types of promotional claims and because the Rule permits retailers to
rely on the insulation manufacturer's substantiation data for any
claims that are made, the additional recordkeeping burden is de
minimis. The time calculated for disclosures, above, would be more than
adequate to cover any burden imposed by this recordkeeping requirement.
To summarize, staff estimates that the Rule imposes a total of
132,707 burden hours, as follows: 150 recordkeeping and 3,390 testing
and disclosure hours for manufacturers; 135 recordkeeping and 68,282
disclosure hours for installers; 10,750 disclosure hours for new home
sellers; and 50,000 disclosure hours for retailers. The estimated total
burden is approximately 132,707 burden hours.
Estimated annual cost burden: $2,732,510 (solely related to labor
costs).
The total annual labor cost for the Rule's information collection
requirements is approximately $2,732,510, derived as follows:
approximately $896 for testing, based on 30 hours for manufacturers (30
hours x $29.87 per hour for skilled technical personnel); $4,742 for
manufacturers' and installers' compliance with the Rule's recordkeeping
requirements, based on 285 hours (285 hours x $16.64 per hour for
clerical personnel); $55,910 for manufacturers' compliance with third-
party disclosure requirements, based on 3,360 hours (3,360 hours x
$16.64 per hour for clerical personnel); and $2,670,962 for disclosure
compliance by installers, new home sellers, and retailers (129,032
hours x $20.70 per hour for sales persons).\2\
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\2\ The wage rates for engineering technologists and
technicians, except drafters (skilled technical personnel), file
clerks (clerical personnel), and sales and related occupations
(sales persons) are based on recent data from the Bureau of Labor
Statistics Occupational Employment Statistics Survey.
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There are no significant current capital or other non-labor costs
associated with this Rule. Because the Rule has been in effect since
1980, members of the industry are familiar with its requirements and
already have in place the equipment for conducting tests and storing
records. New products are introduced infrequently. Because the required
disclosures are placed on packaging or on the product itself, the
Rule's additional disclosure requirements do not cause industry members
to incur any significant additional non-labor associated costs.
Request for Comments
Pursuant to Section 3506(c)(2)(A) of the PRA, 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 maintaining records and providing disclosures to
consumers. All comments must be received on or before December 28,
2020.
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before December 28, 2020. Write
``R-value Rule; PRA Comment: FTC File No. P072108'' on your comment.
Your comment--including your name and your state--will be placed on the
public record of this proceeding, including the https://www.regulations.gov website.
Due to the public health emergency in response to the COVID-19
outbreak and the agency's heightened security screening, postal mail
addressed to the Commission will be subject to delay. We encourage you
to submit your comments online through the https://www.regulations.gov
website.
If you prefer to file your comment on paper, write ``R-value Rule;
PRA Comment: FTC File No. P072108'' on your comment and on the
envelope, and mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580; or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024. If possible, submit your paper comment to the
Commission by courier or overnight service.
Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information
[[Page 68070]]
which . . . . is privileged or confidential''--as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR
4.10(a)(2)--including in particular competitively sensitive information
such as costs, sales statistics, inventories, formulas, patterns,
devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding, as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before December 28,
2020. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2020-23764 Filed 10-26-20; 8:45 am]
BILLING CODE 6750-01-P
