Admin SS_2008-A-Final

Supporting Statement for FTC Administrative Activities
OMB Control No. 3084-0047

The Federal Trade Commission (“FTC” or “Commission”) is seeking renewal of its
existing Administrative Activities clearance. This clearance consists of the burden attributable to
(a) applications to the Commission, including applications and notices contained in the
Commission's Rules of Practice (primarily Parts I, II, and IV); (b) the FTC’s consumer complaint
systems; (c) the FTC’s program evaluation activities and; (d) the FTC’s Applicant Background
Form. Each answer below is broken into subsections relating separately or collectively to (a)-(d)
as noted and as necessary. The vast proportion of the Paperwork Reduction Act (“PRA”), 44
U.S.C. 3501-3520, burden for the existing clearance is attributable to the FTC’s consumer
complaint systems.
A.

JUSTIFICATION

(1)

Necessity for Collecting the Information

(a) Applications to the Commission:
The Federal Trade Commission Act (“FTC Act”), Title 15 U.S.C. 41 et seq., authorizes
the collection of information via various applications and notices to the Commission (the
procedures for such applications and notices are generally found in Parts I, II, and IV of the
Commission's Rule of Practice). For example, the Commission requires former FTC employees
to seek clearance to participate in certain matters and also requires certain persons who have
business dealings with former FTC employees to submit screening affidavits in order to
participate in FTC matters. See Commission Rule 4.1, 16 C.F.R. 4.1. These regulatory
requirements prevent the improper use of confidential nonpublic information acquired while
working at the FTC.
The FTC Act also authorizes the procedures set out in Rule 4.11(e), 16 C.F.R. 4.11(e), for
review of outside requests for Commission employee testimony, through compulsory process or
otherwise, in cases or matters to which the FTC is not a party. Rule 4.11(e) requires that a
person who seeks such testimony submit a statement in support of the request. The submitted
information assists staff with determining how to best utilize FTC resources (e.g., the submitted
information enables staff to assess whether the public interest is at stake).
(b) Complaint Systems:
The FTC’s Bureau of Consumer Protection (“BCP”) uses various telephone complaint
hotlines and, alternatively, three different online consumer complaint forms to handle consumer
grievances: (1) the general on-line complaint form; (2) the “Do Not Call On-Line Complaint

Dated: October 2008

Form;” and (3) the “Identity Theft On-Line Complaint Form.”1 The provision of this information
is voluntary. Without the collection of this information, however, BCP staff would be hampered
in their ability to receive and respond to consumer grievances. Moreover, the FTC’s Identity
Theft Clearinghouse program was created to fulfill the FTC’s statutory obligations under the
Identity Theft and Assumption Deterrence Act of 1998, 18 U.S.C. 1028 note (Centralized
Complaint and Consumer Education Service for Victims of Identity Theft).
(c) Program Evaluations:
Competition Advocacy--The FTC’s competition advocacy program draws on the
Commission’s expertise in competition and consumer protection matters to encourage federal
and state legislators, courts and other state and federal agencies to consider the competitive
effects of their proposed actions. The FTC’s Office of Policy Planning (“OPP”) sends
approximately 20 letters or written comments to different state and federal government officials
annually, which provide guidance on the likely competitive effects of various laws or regulations.
In the past, OPP has evaluated the effectiveness of these advocacy comments by
surveying comment recipients and other relevant decision makers. OPP intends to continue this
evaluation by sending a written questionnaire to relevant parties between six and nine months
after an advocacy comment is sent. Most of the questions ask the respondent to agree or disagree
with a statement concerning the advocacy comment that they received. Specifically, these
questions inquire as to the applicability, value, persuasive influence, public effect, and
informative value of the FTC’s comments. The questionnaire also provides respondents with an
opportunity to provide additional remarks related either to the written comments received or the
FTC’s advocacy program in general. Participation is voluntary. By allowing the FTC to gauge
the efficacy of its advocacy efforts, the survey provides vital information for taking steps to
enhance the effectiveness of the competition advocacy program. Absent the survey, there would
be little feedback with which to assess the advocacy program.
Statutory authority for the competition advocacy program is found in sections 6(a) and (f)
of the FTC Act, under which Congress authorized the FTC “to gather and compile information
concerning, and to investigate from time to time the organization, business, conduct, practices,
and management of any person, partnership, or corporation engaged in or whose business affects
commerce,” and “to make public from time to time such portions of the information obtained by

1

These online forms also include related variations that constitute the same basic “collection of
information”: (1) Spanish language versions also available at www.ftc.gov, (2) the
www.econsumer.gov complaint form, but only with regard to complaints from U.S. or foreign
consumers regarding U.S. companies, and (3) the FTC’s consumer.gov/military link for
consumer complaints from U.S. military personnel as part of Military Sentinel, a joint initiative
with the Department of Defense.
Dated: October 2008

2

it hereunder as are in the public interest.”2 The courts have interpreted these provisions to allow
the FTC to participate in proceedings conducted by other agencies, and to petition other agencies
to implement rulemakings.3
Divestiture Review--To resolve competitive concerns in what the Commission
determines may be unlawful mergers and acquisitions, the Commission may order divestiture of
assets to an acquirer approved by the Commission. In order to assess the effectiveness of the
divestiture, the FTC’s Bureau of Competition’s Compliance Division is conducting relatively
brief follow-up calls with these acquirers as part of its on-going enforcement efforts.
(d) Applicant Tracking Form:
The FTC’s Human Resources Management Office surveys job applicants on their
ethnicity, race, and disability status in order to determine if recruitment is effectively reaching all
aspects of the relevant labor pool, in compliance with management directives from the Equal
Employment Opportunity Commission.4 Response by applicants is optional. The information
obtained is used for evaluating recruitment only and plays no part in the selection of who is hired.
The information is not provided to selecting officials. Instead, the information is used in
summary form to determine trends over many selections within a given occupational or
organizational area.
(2)

Use of the Information
(a) Applications to the Commission:

2

15 U.S.C. § § 46(a), (f).

3

A & B Freight Lines v. FTC, 1980-1 Trade Cas. (CCH) ¶ 63,127 (D.D.C. 1980), aff’d per
curiam, No. 80-1264 (D.C. Cir. Jan 26, 1981), cert. denied, 452 U.S. 962 (1981) (rejecting
objections to the FTC’s participating as a party in ICC proceedings involving common carriers
and the FTC’s petitioning the ICC to institute a rulemaking proceeding). See also National
Petroleum Refiners Ass’n v. FTC, 482 F.2d. 672, 686, 691 (D.C. Cir. 1973) (despite the absence
of explicit Congressional authorization, upholding the FTC’s power under § 6(g) to promulgate
trade regulation rules because such action was “consistent with the framers’ broad purposes” in
creating the FTC and “linked to the goals . . . that loomed in the background of the 1914 passage
of the Federal Trade Commission Act”).
4

Equal Employment Opportunity Commission Management Directive 715 (MD 715) requires
agencies to maintain a system that: collects and maintains accurate information on the race,
national origin, gender and disability of agency employees in accordance with 29 C.F.R. Part
1614.601; tracks applicant flow data, which identifies applicants by race, national origin, gender,
and disability status and disposition of all applications; and tracks recruitment activities to permit
analyses of these efforts in any examination of potential barriers to equality of opportunity.
Dated: October 2008

3

The information submitted to the FTC pursuant to Rule 4.1 is used to determine whether
a person or entity should be permitted to participate in an FTC matter. The submitted
information sheds light on whether such requested participation is likely to give rise to the
improper disclosure of nonpublic information (e.g., staff may not grant clearance to participate
where it is likely that the former employee accessed nonpublic information that would convey a
present advantage to their current employer). Staff uses the information submitted in Rule
4.11(e) requests to determine how to best allocate Commission resources (e.g., staff may deny a
request for testimony from an FTC employee where it appears that such testimony would not be
in the public’s interest).
(b) Complaint Systems:
The forms and survey are used to improve public access to BCP’s Consumer Response
Center (“CRC”). Consumers may call a hotline phone number or may log on to the FTC’s web
site to register a complaint using the applicable complaint form.
(c) Program Evaluations:
Competition Advocacy--The information is used internally to assess the
effectiveness of the FTC’s advocacy program as a whole and to determine various conditions that
influence the efficacy of advocacy efforts. Given resource constraints, this information can be
used to target advocacy efforts to projects that are likely to be the most effective in achieving the
desired outcome. Data from past surveys have been tabulated for internal memoranda, and
published in an Organisation For Economic Co-operation and Development presentation5 and a
law review article.6
Divestiture Review--The information obtained by the FTC’s Bureau of
Competition as a result of its follow-up conversations with acquirers of divested assets under
Commission merger orders will be used to assess the effectiveness of the orders and refine future
remedies, where necessary and appropriate. Information obtained as a result of these follow-up
conversations will be accorded the protections available under the FTC Act.
(d) Applicant Tracking Form:
As stated above, the information collected is used to evaluate the FTC’s recruitment
efforts and plays no part in the selection process. The information is aggregated in order to
determine trends over many selections within a given occupational or organizational area.
(3)

Consideration of the Use of Information Technology to Reduce Burden

5

See United States Note for OECD Roundtable on Evaluation of the Actions and Resources of
Competition Authorities (May 25, 2007), available at
http://www.ftc.gov/bc/international/docs/evalauth.pdf.
6

Arnold C. Celnicker, The Federal Trade Commission’s Competition and Consumer Advocacy
Program, 33 ST . LOUIS UNIVERSITY LAW JOURNAL 379 (1989).
Dated: October 2008

4

(a) Applications to the Commission:
Applications are generally in paper format, although electronic forms are also considered
on a case-by-case basis if authenticated.
(b) Complaint Systems:
Although consumers may submit complaints or requests by mail, the CRC largely
receives information from consumers via the Internet or the telephone. In this way, the FTC is
effectively employing available information technology to provide electronic options for
consumers and lessen the burden on them to the maximum extent practicable, consistent with the
aims of the Government Paperwork Elimination Act, 44 U.S.C. § 3504 note (“GPEA”).
(c) Program Evaluations:
Competition Advocacy-- Staff sends the survey forms out by U.S. mail and
includes a self-addressed stamped envelope for respondents to return their completed surveys.
We considered the use of an online form in the past, but it was deemed impracticable due to
privacy concerns.
Divestiture Review-- Direct telephone conversations with the acquirers of divested
assets is the most effective way for staff to obtain information. Engaging in such real time
discussion enables both staff and acquirers to easily ask follow-up questions and/or seek
additional clarification as appropriate.
(d) Applicant Tracking Form:
Although job applicants may submit paper applications for some positions, over 90% of
the FTC's job vacancy announcements require applicants to submit applications through an
electronic method. In this way, consistent with GPEA, the Commission is effectively employing
available information technology to provide electronic options and lessen the burden on
applicants to the maximum extent practicable.
(4)

Efforts to Identify Duplication/Availability of Similar Information

(a) Applications to the Commission:
Not applicable. Although staff could collect some of the submitted information
elsewhere and may engage in cross-checking in order to verify that the submitted information is
accurate and complete (e.g., with respect to Rule 4.1 requests, staff may consult with persons
working on a matter to determine the extent of a former employee’s involvement in the matter), it
is important that requesters certify that they are making a full disclosure of the relevant
information in order for staff to make informed determinations. Moreover, those who submit
applications are often the best source of the information contained therein and looking for it
elsewhere at the outset would be an inefficient use of FTC resources.
(b) Complaint Systems:

Dated: October 2008

5

Not applicable. Although other government and private organizations systematically
collect consumer complaint data, other sources cannot provide the information FTC staff and
contract personnel need to specifically address consumer concerns arising under the various
consumer protection laws and regulations that the FTC enforces.
(c) Program Evaluations:
Competition Advocacy--Not applicable. Other than this direct survey, there would
be no means for accessing policy-makers’ views on the efficacy of FTC advocacy efforts.
Divestiture Review--Not applicable. Although other government and private
organizations systematically collect this type of data, other sources cannot provide the
information FTC staff and contract personnel need to specifically address competition concerns
arising under the various competition laws and regulations that the FTC enforces.
(d) Applicant Tracking Form:
The information as it pertains to FTC job applicants is not available elsewhere.
(5)

Efforts to Minimize Burden on Small Businesses

(a) Applications to the Commission:
The regulatory requirements are designed to impose the minimum possible burden on the
persons who complete them. The FTC only seeks the information required to make an informed
response.
(b) Complaint Systems:
The consumer complaint forms were designed to impose the minimum possible burden
on persons who complete them. Contacting the CRC with a complaint is entirely voluntary, and
the online forms enable complainants to provide the pertinent information at their leisure.
Consumers are also able to print the forms and mail them to the FTC. In addition, the CRC has
expanded the hours of operation for its hotline to better serve consumers and small businesses on
the West Coast.
(c) Program Evaluations:
Competition Advocacy--Not applicable. The survey is targeted to state, federal,
and local policy makers (e.g., state legislators and federal regulators).
Divestiture Review–It is unlikely that any of the acquirers of divested assets are
small businesses; to the extent that small businesses are involved, participation is voluntary, and
the time involved in preparing and participating in the phone calls is limited.
(d) Applicant Tracking Form:
Not applicable. The form collects information from individuals.

Dated: October 2008

6

(6)

Consequences of Conducting Collection Less Frequently

(a) Applications to the Commission:
If the information required was collected less frequently, the FTC would be hampered in
its efforts to prevent the misuse of nonpublic information and the inefficient use of agency
resources.
(b) Complaint Systems:
If the FTC is not able to collect consumer complaint and customer satisfaction
information, the agency will lack critical input to effectively: (1) address consumer education
needs nationwide; (2) target companies and individuals actively defrauding the public; and
(3) review industry compliance with the numerous statutes and regulations enforced by the FTC.
The consumer complaint data collected through the complaint forms is also the
foundation of the FTC’s highly successful Consumer Sentinel Network. The Consumer Sentinel
Network allows federal, state and local law enforcement organizations common access to a
secure database containing over 11 million complaints, including victims of consumer fraud and
identity theft. To date, Consumer Sentinel has over 1,700 members, including law enforcement
agencies from Canada and Australia. The continuous collection of consumer complaint data is
critical to the Consumer Sentinel Network’s sustained success.
The FTC is also mandated by Congress under the Identity Theft and Assumption
Deterrence Act of 1998, 18 U.S.C. §1028 note, to be the central clearinghouse for identity theft
complaints. The FTC’s efforts in this regard serve to fulfill its statutory obligation.
(c) Program Evaluations:
Competition Advocacy--It becomes increasingly difficult to collect accurate
information on the effectiveness of an advocacy effort as time between receiving the survey and
the relevant legislative or regulatory proceeding increases. If the FTC were to collect this
information less frequently, staff would receive far fewer responses and the information received
would be less reliable.
Divestiture Review--The information is collected infrequently. Staff attempts to
conduct the first phone call approximately a year after the divestiture is completed, and conducts
follow-up phone calls thereafter only if required. If these calls were not made, staff would not
necessarily become aware of issues that arise with a particular divestiture.
(d) Applicant Tracking Form:
The FTC attempts to collect this information from all job applicants (their responses are
voluntary). If this information was collected less frequently, the FTC would be hampered in its
ability to comply with management directives from the Equal Employment Opportunity
Commission and it would be difficult to evaluate the success of the FTC’s recruitment efforts.

Dated: October 2008

7

(7)

Circumstances Requiring Collection Inconsistent With Guidelines

(a)-(d):
The collections of information in the Rule are consistent with all applicable guidelines
contained in 5 C.F.R. § 1320.5(d)(2).

(8)

Consultation Outside the Agency

(b) Complaint Systems:
BCP staff has met periodically with the National Association of Attorneys General, the
United States Postal Inspection Service, PhoneBusters7, the Social Security Administration and
other federal, state, and local law enforcement entities to determine what information is needed
to open and successfully prosecute a civil or criminal consumer fraud case. Information that
could be collected through subsequent interviews has been omitted from the complaint forms to
lessen consumer burden and to streamline staff’s processing of consumer complaints.
(a)-(d):
In addition, the FTC sought public comment in connection with its instant PRA clearance
request. See 73 Fed. Reg. 42346 (July 21, 2008). No comments were received. The FTC is
also seeking public comment contemporaneously with this submission.

(9)

Payments or Gifts to Respondents
(a)-(d):
Not applicable.

(10) & (11)

Assurances of Confidentiality/Matters of a Sensitive Nature

(a)-(c):
To the extent that information collected by the FTC is for law enforcement purposes, it is
subject to the confidentiality provisions of Sections 6(f) and 21 of the Federal Trade Commission
Act, 15 U.S.C. §§ 46(f), 57b-2, as applicable. Moreover, it is the FTC’s general policy not to
publish or divulge the name of an applicant or complaining party except as required by law or by
the FTC’s rules. For example, the FTC may disclose the identity of a consumer complainant in
the course of referring the complaint to other legal authorities. See FTC Rule of Practice 2.2(d),
16 C.F.R. § 2.2(d).
7

PhoneBusters is Canada's central agency that collects information on telemarketing complaints
received from throughout Canada and the U.S. against Canadian deceptive telemarketers and
disseminates this information to the appropriate enforcement agency.
Dated: October 2008

8

Additionally, the FTC may share certain consumer complaints with the company that is
the subject of the complaint, if the FTC determines that the sharing of the complaint with the
company would help resolve the consumer’s problem. For instance, the FTC may share certain
consumer complaints about identity theft or the accuracy of a consumer’s credit report with credit
bureaus to help address the consumer’s complaint or identity theft-related concern. Identity theft
information also may be disclosed to financial institutions, including credit reporting agencies,
that have signed a confidentiality agreement with the FTC. The FTC shares this information to
fulfill its statutory obligation under the Identity Theft and Assumption Deterrence Act of 1998,
18 U.S.C. § 1028 note.8 Finally, the Commission may post trend reports based on aggregate data
from consumer fraud and identity theft complaints on the Consumer Sentinel public website,
www.consumer.gov/sentinel (see Section A.16 below). However, the Commission does not
release personally identifying information in these reports.
(d) Applicant Tracking Form:
The information obtained is used for evaluating recruitment only and plays no part in the
selection of who is hired. The information is not provided to selecting officials. Instead, the
information is used in summary form to determine trends over many selections within a given
occupational or organizational area. The information is treated in a confidential manner. No
information from the form is entered into the official personnel file of the individual selected and
all forms are destroyed after the conclusion of the selection process.
(12)

Burden Estimate
(a)-(d) – Total estimated annual hours burden: 380,295 hours.
(a) Applications to the Commission, including applications and notices contained in
the Commission's Rules of Practice: 100 hours

Most applications to the Commission generally fall within the “law enforcement”
exception to the PRA9 and are mostly found in Part III (Rules of Practice for Adjudicative
Proceedings) of the Commission’s Rules of Practice. See 16 CFR 3.1-3.83. Nonetheless, there
are various applications and notices to the Commission contained in other rules (generally in
Parts I, II, and IV of the Commission's Rule of Practice). For example, staff estimates that the

8

In part, the Act requires that the FTC establish procedures to refer complaints to appropriate
entities, which may include “(A) the three major national consumer reporting agencies; and (B)
appropriate law enforcement agencies for potential law enforcement action.”

9

The “law enforcement” exception to the PRA excludes most items in this subcategory because
they involve collecting information during the conduct of a Federal investigation, civil action,
administrative action, investigation, or audit with respect to a specific party, or subsequent
adjudicative or judicial proceedings designed to determine fines or other penalties. See 44
U.S.C. 3518(c)(1); 5 CFR 1320.4(a)(1)-(3).
Dated: October 2008

9

FTC annually receives approximately 15 requests for clearance submitted by former FTC
employees in order to participate in certain matters and 5 screening affidavits submitted by
partners or legal or business associates of former employees pursuant to Rule 4.1, 16 CFR 4.1.10
There are also procedures set out in Rule 4.11(e) for agency review of outside requests for
Commission employee testimony, through compulsory process or otherwise, in cases or matters
to which the agency is not a party. Rule 4.11(e) requires that a person who seeks such testimony
submit a statement in support of the request. Staff estimates that agency personnel receive
approximately 1 request per month or 12 per year. Other types of applications and notices are
either infrequent or difficult to quantify. Nonetheless, in order to cover any potential “collection
of information” for which separate clearance has not been sought, staff conservatively projects
the FTC will receive 50 applications or notices per year. Staff estimates each respondent will
incur, on average, approximately 2 hours of burden to submit an application or notice, resulting
in a cumulative annual total of 100 burden hours (50 applications or notices x 2 burden hours).
Annual cost burden:
Using the burden hours estimated above, staff estimates that the total annual labor cost,
based on a conservative estimated average of $425/hour for executives’ and attorneys’ wages,
would be approximately $42,500 (100 hours x $425).
(b) Complaint Systems: 379,728 hours
Consumer Response Center
Consumers can submit complaints about fraud and other practices to the FTC’s
Consumer Response Center by telephone or through the FTC’s website. Telephone complaints
and inquiries to the FTC are answered both by FTC staff and contractors. These telephone
counselors ask for the same information that consumers would enter on the applicable forms
available on the FTC’s website. For telephone inquiries and complaints, the FTC staff retains its
previous estimates that it takes 4.5 minutes per call to gather information, somewhat less time
than the 5 minutes estimated for consumers to enter a complaint online. The burden estimate
conservatively assumes that all of the phone call is devoted to collecting information from
consumers, although frequently telephone counselors devote a small portion of the call to
providing requested information to consumers.
Complaints Concerning the National Do Not Call Registry
To receive complaints from consumers of possible violations of the rules governing the
National Do Not Call Registry, 16 CFR 310.4(b), the FTC maintains both an online form and a

10

Staff’s estimates do not include Rule 4.1 submissions that pertain to ongoing law enforcement
matters. See supra note 9.
Dated: October 2008

10

toll free hotline with automated voice response system. Consumer complainants must provide
either the name or telephone number of the company about which they are complaining, the
phone number that was called, and the date of the call. They may also provide their name and
address so they can be contacted for additional information, as well as for a brief comment
regarding their complaint. In addition, online complainants have the option of answering three
yes-or-no questions to help law enforcement investigating complaints; this option will also soon
be made available to phone complainants. The FTC staff estimates that the time required of
consumer complainants is 3.5 minutes for phone complaints and 2.5 minutes for online
complaints.11
Identity Theft
To handle complaints about identity theft, the FTC must obtain more detailed information
than is required of other complainants. Identity theft complaints generally require more
information (such as a description of actions complainants have taken with credit bureaus,
companies, and law enforcement, and the identification of multiple suspects) than general
consumer complaints and fraud complaints. In addition, the FTC has expanded the information
required on its online complaint form (such as collecting additional information about the
fraudulent activity at affected companies and creating an attachment summarizing all of the
fraudulent account activity as well as all fraudulent information on the consumer’s credit report).
Consumers can print out a copy of the revised form and use it to assist them in completing a
police report, if appropriate, and, as also may be necessary, an identity theft report. See 16 CFR
603.3 (defining the term “identity theft report”). FTC staff continues to estimate that the revised
online form takes consumers up to 13 minutes to complete.
The FTC also made some revisions in the information it collects from consumers who
call the Consumer Response Center (“CRC”) with identity theft complaints. Moreover, in order
to better serve consumers who are unable to file complaints online, staff will send those who call
the CRC with identify theft complaints a blank complaint form (identical to the online printed
form) to assist them with completing a police or identify theft report as appropriate. Staff
estimates that it will take 14 minutes per call to obtain identity theft-related information.12 A
substantial portion of identity theft-related calls typically consists of counseling consumers on
other steps they should consider taking to obtain relief (which may include directing consumers
to a revised online complaint form). The time needed for counseling is excluded from the
estimate.
Surveys

11

This is a slight increase from staff’s 2005 estimates because of additional information
collected, such as comments and three optional yes-or-no questions.
12

This is a 5 minute increase from staff’s 2005 estimate in order to account for the time it will
take consumers to fill out the blank complaint form.
11
Dated: October 2008

Consumer customer satisfaction surveys give the agency information about the overall
effectiveness and timeliness of the CRC. The CRC surveys roughly 1 percent of complainants
who file identity theft or general consumer complaints. Subsets of consumers contacted
throughout the year are questioned about specific aspects of CRC customer service. Each
consumer surveyed is asked several questions chosen from a list prepared by staff. The questions
are designed to elicit information from consumers about the overall effectiveness of the call
center. Half of the questions ask consumers to rate CRC performance on a scale or require a yesor-no response. The second half of the survey asks more open-ended questions seeking a short
written or verbal answer. In addition, the CRC may survey a sample of consumers immediately
after they file their complaints regarding the services they received. Staff retains its previous
estimate that each respondent will require 4 minutes to answer the questions (approximately 2030 seconds per question).
Finally, Consumer Sentinel user surveys give the agency information about the overall
effectiveness of its Consumer Sentinel Network. The Consumer Sentinel Network allows
federal, state and local law enforcement organizations common access to a secure database
containing over six million complaints from victims of consumer fraud and identity theft, as well
as other complaints the FTC collects. To date, Consumer Sentinel has over 1,700 members,
including law enforcement agencies from Canada and Australia. FTC staff plan to survey a
sizeable number of Consumer Sentinel users each year about such things as overall satisfaction,
performance, and possible improvements. Staff retains its previous estimate that the surveys
should generally take approximately 10 minutes per respondent.
What follows are staff’s estimates of burden for these various collections of information,
including the surveys. The figures for the online forms and consumer hotlines are an average of
annualized volume for the respective programs including both current and projected volumes
over the 3-year clearance period sought and the number of respondents for each activity has been
rounded to the nearest thousand.

Dated: October 2008

12

Activity
Misc. and fraud-related
consumer complaints
(phone)*
Misc. and fraud-related
consumer complaints
(online)**
Identity theft complaints
(phone)*
Identity theft complaints
(online)**
Do-Not-Call related
consumer complaints
(phone)
Do-Not-Call related
consumer complaints
(online)
Customer Satisfaction
Questionnaire
Consumer Sentinel User
Surveys
Totals

# respondents
396,000

# minutes/activity
4.5

Total Hours
29,700

520,000

5

43,333

385,700

14

89,997

170,000

13

36,833

531,000

3.5

30,975

3,548,000

2.5

147,833

9,600

4

640

2,500

10

417

5,562,800

379,728

* Number of consumer calls calculated by projecting over the 3-year clearance period sought 5% annual growth and a
telephone contractor response rate of 95% (contracted level of service) with regard to consumers who call the toll free lines
and opt to talk to a counselor.
** Number of online collections projected from number of consumers who use the FTC’s online complaint forms noted in the
text above. These figures also assume 5% annual growth for miscellaneous and fraud-related complaints, and 8% annual
growth for identity theft online complaints, over the 3-year clearance period requested.

Annual cost burden:
The cost per respondent should be negligible. Participation is voluntary and will not
require any labor expenditures by respondents.
(c) Program Evaluations: 175 hours
Review of Divestiture Orders
The Commission issues, on average, approximately 10-15 orders in merger cases per year
that require divestitures. As a result of a 1999 study authorized by the OMB and conducted by
Dated: October 2008

13

the staffs of the Bureau of Competition (“BC”) and the Bureau of Economics,13 BC monitors
these required divestitures by interviewing representatives of the Commission-approved buyers
of the divested assets within the first year after the divestiture is completed.
BC staff interviews representatives of the buyers to ask whether all assets required to be
divested were, in fact, divested;14 whether the buyer has used the divested assets to enter the
market of concern to the Commission and, if so, the extent to which the buyer is participating in
the market; whether the divestiture met the buyer’s expectations; and whether the buyer believes
the divestiture has been successful. In some cases, BC staff may also interview other
participants, including customers or trustee monitors, as appropriate. In all of these interviews,
staff seeks to learn about pricing and other basic facts regarding competition in the markets of
concern to the FTC.
Participation by the buyers is voluntary. Each responding company designates the
company representative most likely to have the necessary information; typically, a company
executive and a lawyer represents the company. Each interview takes approximately one hour to
complete. BC staff further estimates that it takes each participant no more than one hour to
prepare for the interview. In some instances, staff may do additional interviews with customers
of the responding company or the monitor. Staff conservatively estimates that for each
interview, two individuals (a company executive and a lawyer) will devote two hours (one hour
preparing and one hour participating) each to responding to questions for a total of four hours. In
addition, for approximately half of the divestitures, staff will seek to question two additional
respondents, adding four participants (a company executive and a lawyer for each of the two
additional respondents) devoting two hours each, for a total of eight additional hours. Assuming
that staff evaluates up to 20 divestitures per year during the three-year clearance period, the total
hours burden for the responding companies will be approximately 160 hours per year ((20
divestiture reviews x 4 hours for preparing and participating) + (10 divestiture reviews x 8 hours
for preparing and participating)).
Annual cost burden:
Using the burden hours estimated above, staff estimates that the total annual labor cost,
based on a conservative estimated average of $425/hour for executives’ and attorneys’ wages,
would be approximately $68,000 (160 hours x $425).
Review of Competition Advocacy Program

13

The Staff of the Bureau of Competition of the Federal Trade Commission compiled its
findings from the study in its report: A Study of the Commission’s Divestiture Process, 1999,
available at http://www.ftc.gov/os/1999/08/divestiture.pdf.
14

To the extent that the staff interviews focus on a law enforcement activity (whether the party to
the order complied with all its obligations), the interviews are not subject to the requirements of
the PRA. See supra note 9.
14
Dated: October 2008

The FTC’s competition advocacy program draws on the Commission’s expertise in
competition and consumer protection matters to encourage federal and state legislators, courts
and other state and federal agencies to consider the competitive effects of their proposed actions.
The FTC Office of Policy Planning (“OPP”) sends approximately 20 letters or written comments
to different state and federal government officials annually, which provide guidance on the likely
competitive effects of various laws or regulations.
In the past, OPP has evaluated the effectiveness of these advocacy comments by
surveying comment recipients and other relevant decision makers. OPP intends to continue this
evaluation by sending a written questionnaire to relevant parties between six and nine months
after an advocacy comment is sent. Most of the questions ask the respondent to agree or disagree
with a statement concerning the advocacy comment that they received. Specifically, these
questions inquire as to the applicability, value, persuasive influence, public effect, and
informative value of the FTC’s comments. The questionnaire also provides respondents with an
opportunity to provide additional remarks related either to the written comments received or the
FTC’s advocacy program in general. Participation is voluntary.
OPP staff estimates that on average, respondents will take 30 minutes or less to complete
the questionnaire and 15 minutes of administrative time to prepare the response for mailing.
Accordingly, staff estimates that each respondent will incur 45 minutes of burden resulting in a
cumulative total of 15 burden hours per year (45 minutes of burden per respondent x 20
respondents per year). OPP staff does not intend to conduct any follow-up activities that would
involve the respondents’ participation.
Annual cost burden:
OPP staff estimates a conservative hourly labor cost of $100 for the time of the survey
participants (primarily state representatives and senators) and an hourly labor cost of $16 for
administrative support time. Thus, staff estimates a total labor cost of $54 for each response (30
minutes of burden at $100 per hour plus 15 minutes of burden at $16 per hour). Assuming 20
respondents will complete the questionnaire on an annual basis, staff estimates the total annual
labor costs will be approximately $1,080 ($54 per response x 20 respondents).
(d) Applicant Tracking Form: 292 hours
The FTC’s Human Resources Management Office surveys job applicants on their
ethnicity, race, and disability status in order to determine if recruitment is effectively reaching all
aspects of the relevant labor pool, in compliance with management directives from the Equal
Employment Opportunity Commission. Response by applicants is optional. The information
obtained is used for evaluating recruitment only and plays no part in the selection of who is hired.
The information is not provided to selecting officials. Instead, the information is used in
summary form to determine trends over many selections within a given occupational or
organizational area. The information is treated in a confidential manner. No information from
the form is entered into the official personnel file of the individual selected and all forms are
Dated: October 2008

15

destroyed after the conclusion of the selection process. The format of the questions on ethnicity
and race are compliant with OMB requirements and comparable to those used by other agencies.
Based upon past activity, the FTC staff estimates that up to 7,000 applicants will submit
the form as part of the new online application process and that the form will require
approximately 2.5 minutes to complete, for an annual burden total of approximately 292 hours
(7000 applicants x 2.5 minutes to complete the form).
Annual cost burden:
The cost per respondent should be negligible. Participation is voluntary and will not
require any labor expenditures by respondents.

(13)

Estimated Capitol and other Non-Labor Costs

(a)-(d):
There are no capital, start-up, operation, maintenance, or other similar costs to the
respondents.

(14)

Estimated Cost to Federal Government
(a) Applications to the Commission:

The FTC annually receives approximately 15 requests for clearance submitted by former
FTC employees in order to participate in certain matters and 5 screening affidavits submitted by
partners or legal or business associates of former employees pursuant to Rule 4.1. Staff spends
roughly 2 hours of attorney time (GS-14/15) and 15 minutes of paralegal or secretarial support
for each application, resulting in an annual cost of approximately $3300.
There are also procedures set out in Rule 4.11(e) for agency review of outside requests for
Commission employee testimony, through compulsory process or otherwise, in cases or matters
to which the agency is not a party. Rule 4.11(e) requires that a person who seeks such testimony
submit a statement in support of the request. Staff estimates that agency personnel receive
approximately 1 request per month or 12 per year. Staff at the GS-14/15 level spends roughly two
hours and 15 minutes of paralegal or secretarial support on each request, resulting in an annual
cost of approximately $2000.
Other types of applications and notices are either infrequent or difficult to quantify.
Nonetheless, in order to cover any potential “collection of information” for which separate
clearance has not been sought, staff conservatively projects the FTC will receive roughly 18-20
other applications or notices per year. Staff estimates that attorneys at the GS-14/15 level spend
roughly four hours and 15 minutes of paralegal or secretarial support on each such request,
Dated: October 2008

16

resulting in an approximate annual cost of $6100 per year. Thus, the total annual cost is
approximately $11,400 ($3300 + $2000 + $6100).
(b) Complaint Systems:
The total annual cost to the agency for the information collection will be approximately
$6,100,000. This includes a call center contractor, located in Indianapolis, to efficiently handle
the ever-increasing volume of consumer complaints. The contractor collects, reviews, processes,
and responds to the bulk of consumer complaints forwarded to the FTC either by phone, online
complaint form or mail at an annual cost of $5,400,000.
(c) Program Evaluations:
Competition Advocacy–The total annual cost to the agency for the information
collection is approximately $1,340. Postage associated with an estimated 20 mailings a year will
be approximately $20. The surveys will require approximately 3 administrative support hours at
an annual cost of approximately $120. Analysis of the survey data and incorporation into
memoranda or other written work product will require approximately 20 attorney hours at an
annual cost of approximately $1,200.
Divestiture Review--Advocacy–The total annual cost to the agency for the
information collection is approximately $5000. Each of the twenty annual reviews require
approximately 2.5 hours by a Competition Law Attorney (GS-15). This includes about an hour
to prepare before the call, the time for the call, and maybe an hour to write up the results.
(d) Applicant Tracking Form:
The total annual cost to the agency for the information collection is approximately $1800.
A Human Resources Specialist (GS-13/14) spends approximately 32 hours per year on these
forms.
(15)

Changes in Burden

The FTC is requesting an overall increase of 241,295 in burden hours for the reasons discussed
below.
(a) Applications to the Commission:
Staff is requesting an adjustment of 25 hours less based on the number of applications
that are expected to come to the Commission.
(b) Complaint Systems:
Staff’s 241,313 burden hours increase is partially an adjustment due to the increased
number of persons who submit consumer complaints (approximately 82,255 hours). The
remaining increase of approximately 159,058 hours results from a program change due to
additional information being collected for Do–Not-Call-related consumer complaints and
sending blank complaint forms to persons who call the CRC with identity theft complaints.
Dated: October 2008

17

(c) Program Evaluations:
Competition Advocacy--Staff is requesting a decrease of 20 burden hours based on
a program change (staff plans to send questionnaires to a reduced number of persons).
Divestiture Review--Staff is requesting a program change of 180 hours less due to
a decreased number of anticipated divestiture reviews per year.
(d) Applicant Tracking Form:
Staff’s estimate of a 108 burden hour decrease is an adjustment based on staff’s
reassessment of the length of time it takes each applicant to complete the form (the form’s
content was not changed).
(16)

Plans for Tabulation and Publication
(a) Applications to the Commission:
Staff has no plans to publish any tabulations of the submitted information.

(b) Complaint Systems:
At least twice a year, the Commission may post trend reports based on aggregate data
from consumer fraud and identity theft complaints on the Consumer Sentinel public website,
www.consumer.gov/sentinel. The information in these reports include: the total numbers of
complaints by the complainants’ state, the amount of money spent/lost by complainants, and the
top categories of transactions identified in the complaints. Additionally, ad hoc reports
containing the same data may be created covering specific industry and regional sectors upon
request of Congress or agency staff. None of these reports require the use of complex analytical
techniques for tabulation of the quantitative information, e.g., there is no extrapolation or
projection made over a larger population sample than the actual one(s) these reports bear on.
(c) Program Evaluations:
Competition Advocacy--Data from past surveys have been tabulated for internal
memoranda, and published in an Organisation For Economic Co-operation and Development
presentation15 and a law review article.16 We anticipate periodic tabulation of newly received
survey responses to prepare internal memoranda. Although we have no specific plans for
publication, external publication of the data in some format in the future is possible.
Divestiture Review–Staff does not currently anticipate tabulating results of the
divestiture follow-ups for publication.

15

See United States Note for OECD Roundtable on Evaluation of the Actions and Resources of
Competition Authorities (May 25, 2007), available at
http://www.ftc.gov/bc/international/docs/evalauth.pdf.
16

Arnold C. Celnicker, The Federal Trade Commission’s Competition and Consumer Advocacy
Program, 33 ST . LOUIS UNIVERSITY LAW JOURNAL 379 (1989).
18
Dated: October 2008

(d) Applicant Tracking Form:
At least once a year, the Commission will include information based on aggregate data
from job applicants in our report to Equal Employment Opportunity Commission in response to
Management Directive 715. The information in this report includes the summary data based on
job applicants' ethnicity, race, and disability status.

(17)

Display of the Expiration Date for OMB Approval

(a)-(d):
Not applicable. The expiration date will be appropriately displayed on the relevant
survey and forms.
(18)

Exceptions to the “Certification for Paperwork Reduction Act Submissions”
(a)-(d):
None.

Dated: October 2008

19