Admin Activities - SS - 2011- FINAL

Supporting Statement for FTC Administrative Activities
OMB Control No. 3084-0047
The Federal Trade Commission (AFTC@ or ACommission@) is seeking renewal of its
existing Administrative Activities clearance. This clearance consists of: (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. The Commission is not
seeking clearance renewal relating to item (d), the Applicant Background Form. Each answer
below is broken into subsections relating separately or collectively to (a)-(c) as noted and as
necessary. The vast proportion of the Paperwork Reduction Act (APRA@), 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 (AFTC 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 (ABCP@) 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 ADo Not Call On-Line Complaint
Form;@ and (3) the AIdentity Theft On-Line Complaint Form.@1 The provision of this information
These online forms also include related variations that constitute the same basic Acollection of
information@: (1) Spanish language versions also available at www.ftc.gov, (2) the

1

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 (AOPP@) sends
approximately 20 letters or written comments to different state and federal government officials
annually, to 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 submitted to a recipient. Participation is voluntary. 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. By
allowing the FTC to gauge the efficacy of its advocacy efforts, the survey provides vital
information to enhance the effectiveness of the competition advocacy program. Absent the
survey, staff would have difficulty consistently obtaining feedback from which to assess the
advocacy program.

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.
2

Statutory authority for the competition advocacy program is found in sections 6(a) and (f)
of the FTC Act, which authorize the FTC Ato 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 Ato
make public from time to time such portions of the information obtained by 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.
(2)

Use of the Information

(a) Applications to the Commission:
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:

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 Aconsistent with the framers= broad purposes@ in
creating the FTC and Alinked to the goals . . . that loomed in the background of the 1914 passage
of the Federal Trade Commission Act@).
3

The forms and survey are used to improve public access to BCP=s Consumer Response
Center (ACRC@). 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 understand the various factors
that influence the efficacy of advocacy efforts. This information can be used to target limited
advocacy resources most effectively and efficiently. Data from past surveys have been tabulated
for internal memoranda, and published in an Organisation for Economic Co-operation and
Development presentation4 and a law review article.5
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.
(3)

Consideration of the Use of Information Technology to Reduce Burden

(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 (AGPEA@).
(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.
4

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.
5

Arnold C. Celnicker, The Federal Trade Commission=s Competition and Consumer
Advocacy Program, 33 ST. LOUIS UNIVERSITY LAW JOURNAL 379 (1989).
4

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.
(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:
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 AdvocacyBThe types of information captured in the survey cannot be
consistently collected by other means. In some instances, the recipient of an advocacy comment
may contact staff to provide certain information relating to the outcome of the matter on which
staff commented. In some instances, staff may become aware that a recipient has referenced an
advocacy comment publicly, e.g., during deliberations on the matter, in agency rulemaking
materials, or in other public documents. In most cases, however, there is no means to
predictably access policy makers= views on the efficacy of FTC advocacy efforts, other than a
survey.
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.
(5)

Efforts to Minimize Burden on Small Businesses
(a) Applications to the Commission:

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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 ReviewBIt 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.
(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.

6

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--Survey responses are more accurate and useful when
surveys are completed soon after an advocacy letter is sent to a recipient. If the FTC were to
collect this information less frequently, staff likely would receive 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.
(7)

Circumstances Requiring Collection Inconsistent With Guidelines

(a)-(c):
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, PhoneBusters6, 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)-(c):
In addition, the FTC sought public comment in connection with its instant PRA clearance
request. See 76 Fed. Reg. 56,196 (Sept. 12, 2011). No comments were received. The FTC is
also seeking public comment contemporaneously with this submission.

(9)

Payments or Gifts to Respondents

6

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.
7

(a)-(c):
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).
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.7 Finally, the Commission may post trend
reports based on aggregate data from consumer fraud and identity theft complaints on the
Consumer Sentinel public website, http://www.ftc.gov/sentinel/ (see Section A.16 below).
However, the Commission does not release personally identifying information in these reports.
(12)

Burden Estimate
(a)-(c) B Estimated annual hours burden: 187,114 hours (150 + 186,884 + 65 +15).
(a) Applications to the Commission, including applications and notices contained in
the Commission's Rules of Practice: 150 hours

7

In part, the Act requires that the FTC establish procedures to refer complaints to appropriate
entities, which may include A(A) the three major national consumer reporting agencies; and (B)
appropriate law enforcement agencies for potential law enforcement action.@
8

Most applications to the Commission generally fall within the Alaw enforcement@
exception to the PRA8 and are mostly found in Part III (Rules of Practice for Adjudicative
Proceedings) of the Commission=s Rules of Practice. See 16 CFR 3.1B3.83. 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
FTC annually receives approximately 10 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 4.1.9
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
Acollection of information@ for which separate clearance has not been sought, staff conservatively
projects the FTC will receive 75 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 150 burden hours (75 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 $460/hour for executives= and attorneys= wages,
would be approximately $69,000 (150 hours H $460). There are no capital, start-up, operation,
maintenance, or other similar costs to respondents.
(b) Complaint Systems: 186,884 annual 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 Web site. Telephone complaints and
8

The Alaw 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 C.F.R. 1320.4(a)(1)-(3).
9

Staff=s estimates do not include Rule 4.1 submissions that pertain to ongoing law enforcement
matters. See supra note 9.

9

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 Web site. For telephone inquiries and complaints, the FTC staff
estimates that it takes 6.1 minutes per call to gather information, and an estimated 5.0 minutes
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
toll free hotline with automated voice response system. Consumer complainants must provide
the phone number that was called, whether the call was prerecorded, and the date and time of the
call. They may also provide either the name or telephone number of the company about which
they are complaining, their name and address so they can be contacted for additional
information, as well as for a brief comment regarding their complaint. In addition, complainants
have the option of answering three yes-or-no questions to help law enforcement investigating
complaints. The FTC staff estimates that the time required of consumer complainants is 3.0
minutes for phone complaints and 2.5 minutes for online complaints.
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 Aidentity theft report@). FTC staff estimates that the revised
online form takes consumers up to 15 minutes to complete.
The FTC also made some revisions in the information it collects from consumers who
call the Consumer Response Center (ACRC@) with identity theft complaints. Staff estimates that
it will take 6.2 minutes per call to obtain identity theft-related information. 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.
10

Surveys
Consumer customer satisfaction surveys give the agency information about the overall
effectiveness and timeliness of the CRC. 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 and online
complaint intake. Half of the questions ask consumers to rate CRC performance on a scale or
require a yes-or-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 estimates that each respondent will require 4.3 minutes to answer the questions during the
phone survey and about 2.7 minutes for the online survey (approximately 20B30 seconds per
question).
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.
Activity
Misc. and fraud-related
consumer complaints (phone)

#Respondents

#Minutes/Activity

Total Hours

262,000

6.1

26,724

Misc. and fraud-related
consumer complaints (online)

281,000

5

23,323

Do-Not-Call related
consumer complaints (phone)

355,000

3.0

17,750

Do-Not-Call related
consumer complaints (online)

1,937,000

2.5

81,354

Identity theft complaints (phone)

212,000

6.2

21,836

Identity theft complaints (online)

57,000

15

14,250

Customer Satisfaction
Questionnaire (phone)

6,000

4.3

432

Customer Satisfaction
11

Questionnaire (online)

27,000

2.7

Totals

3,137,000

1,215
186,884

*Annual estimate for each of the three years
**Number of consumer calls and online submissions are calculated by projecting over the 3-year
clearance period sought 5% annual growth.
Annual cost burden:
The cost per respondent should be negligible. Participation is voluntary and will not
require any labor expenditures by respondents. There are no capital, start-up, operation,
maintenance, or other similar costs to the respondents.
(c) Program Evaluations: 80 hours
Review of Divestiture Orders C65 hours.
The Commission issues, on average, approximately 10B15 orders in merger cases per
year that require divestitures. As a result of a 1999 study authorized by the OMB and conducted
by the staffs of the Bureau of Competition (ABC@) and the Bureau of Economics,10 as well as
more recent experience, 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; 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 a few cases, BC staff may also interview monitor trustees,
if appropriate. In all 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 represent the company. Each interview takes less than one hour to
complete. BC staff further estimates that it takes each participant no more than one hour to
prepare for the interview. Staff conservatively estimates that, for each interview of the
10

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.
12

responding company, 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. Interviews of monitor trustees typically involve only the monitor trustee and take
approximately one hour to complete with no more than one hour to prepare for the interview.
Assuming that staff evaluates approximately 15 divestitures per year during the three-year
clearance period, the total hours burden for the responding companies will be approximately 60
hours per year (15 divestiture reviews H 4 hours for preparing and participating). Staff may
include approximately 2 monitor trustee interviews a year, which would add at most 4 hours (2
interviews H 2 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 $460/hour for executives= and attorneys= wages,
would be approximately $30,000 (64 hours H $460). There are no capital, start-up, operation,
maintenance, or other similar costs to respondents.
Review of Competition Advocacy ProgramC15 hours.
The FTC=s competition advocacy program draws on the Commission=s expertise in
competition and consumer protection matters to encourage state and federal legislators, agencies
and regulatory officials, and courts to consider the effects of their decisions on competition and
consumer welfare. The Commission and staff send approximately 20 letters to such decision
makers annually regarding the likely effects of various bills and regulations.
In the past, the Office of Policy Planning (AOPP@) 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 paper or electronic questionnaire to relevant
parties within a year after sending an advocacy. Most survey questions ask the respondent to
agree or disagree with a statement concerning the advocacy comment that they received.
Specifically, these questions ask about the consideration, content, influence, and public effect of
our comments. The questionnaire also provides respondents with an opportunity to provide
additional remarks regarding the comments they received, advocacy comments in general, and
the outcome of the matter.
OPP staff estimates that, on average, respondents will take 30 minutes or less to complete
the questionnaire. OPP staff estimates that 15 minutes of administrative time will be necessary
to prepare a survey for return via mail or e-mail. 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 H 20 respondents per year). OPP staff does not
intend to conduct any follow-up activities that would involve the respondents= participation.
Annual cost burden:
13

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 $17 for
administrative support time. Thus, staff estimates a total labor cost of $54.25 for each response
(30 minutes of burden at $100 per hour plus 15 minutes of burden at $17 per hour). Assuming 20
respondents will complete the questionnaire on an annual basis, staff estimates the total annual
labor costs will be approximately $1,085 ($54.25 per response H 20 respondents). There are no
capital, start-up, operation, maintenance, or other similar costs to respondents.

(13)

Estimated Capitol and other Non-Labor Costs

(a)-(c):
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 10 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 and 15 minutes of paralegal or secretarial support for each
application, resulting in an annual cost of approximately $2700.
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. An attorney spends roughly two
hours and 15 minutes of paralegal or secretarial support on each request, resulting in an annual
cost of approximately $2100.
Other types of applications and notices are either infrequent or difficult to quantify.
Nonetheless, in order to cover any potential Acollection of information@ for which separate
clearance has not been sought, staff conservatively projects the FTC will receive roughly 48
other applications or notices per year. Staff estimates that an attorney spends roughly four hours
and 15 minutes of paralegal or secretarial support on each such request, resulting in an
approximate annual cost of $16,400 per year. Thus, the total annual cost is approximately
$21,200 ($2700 + $2100 + $16,400).
(b) Complaint Systems:

14

The total annual contract cost to the agency for its consumer complaint intake system as
described in this notice comes to approximately $7,800,000.
(c) Program Evaluations:
Competition AdvocacyBAssembling and sending out the estimated 20 surveys
will require approximately 7 attorney hours, at a cost of approximately $83.42 per hour (7 H
$83.42 = $584), and 3 paralegal hours, at a cost of approximately $51 per hour (3 x $51 = $153).
Most surveys will likely be sent via email; but some will likely need to be sent out as hard
copies via traditional mail. Postage associated with an estimated 5 hard copy mailings, at an
estimated cost of $0.84 each (5 H $.84 = $4.20), and 5 return mailings, at an estimated cost of
$0.44 each (5 H $0.44 = $2.20), will total approximately $6.40 per year ($4.20 + $2.20 = $6.40).
Analysis of the survey data and incorporation into written work product (including the annual
Performance and Accountability Report, internal memoranda, and other documents) will require
approximately 20 attorney hours at approximately $83.42 per hour (20 H $83.42 = $1,670).
Thus, the total annual cost to the agency for the information collection is approximately
$2413.40 ($584 + $153 + $6.40 + $1,670 = $2413.40).
Divestiture ReviewBThe total annual cost to the agency for the information
collection is approximately $3200. Each of the 15 annual reviews require approximately 2.5
hours by a Competition Law Attorney. This includes about an hour to prepare before the call,
the time for the call, and maybe an hour to write up the results.
(15)

Changes in Burden

The FTC is requesting an overall increase of approximately 60,000 annual burden hours for the
reasons discussed below.
(a) Applications to the Commission:
Staff is requesting an adjustment of 50 hours more based on a slight increase in the
number of applications that are expected to come to the Commission.
(b) Complaint Systems:
The estimated annual hour burden is adjusted up a little [from 127,143 in 2008 to
187,064 in 2011], largely because there are more estimated complaints.
(c) Program Evaluations:
Competition Advocacy—There is no change.
Divestiture Review—Because of a program change--staff now conducts now
fewer annual reviews--the estimated burden goes down by approximately 100 hours.
(16)

Plans for Tabulation and Publication

15

(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,
http://www.ftc.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
presentation11 and a law review article.12 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 ReviewBStaff does not currently anticipate tabulating results of the
divestiture follow-ups for publication.
(17)

Display of the Expiration Date for OMB Approval

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

Exceptions to the ACertification for Paperwork Reduction Act Submissions@
(a)-(c):
None.

11

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.

12

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