Admin Activities - SS - February 2015 - 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: (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; and (c) the FTC’s
program evaluation activities. 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 (“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, and requests for material pursuant to compulsory process in cases or matters to
which the agency is not a party in cases or matters to which the FTC is not a party. Rule 4.11(e)
requires that a person who seeks such testimony or material submit a statement in support of the
request. The submitted information assists staff with determining how to best utilize FTC
resources (e.g., (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 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
Form”; and (3) the “Identity Theft On-Line Complaint Form”.1 The provision of this
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 and (2) the
www.econsumer.gov complaint form, but only with regard to cross-border complaints.

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:
Advocacy Program--The FTC’s 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 effects of their proposed
actions on consumers and competition. Each year, the FTC sends approximately 20 letters or
written comments to different state and federal government officials to provide guidance on the
likely competitive effects of various laws or regulations. Occasionally, letters are sent to certain
private organizations, such as a trade or professional association, whose policymaking activities
may affect consumers or competition.
In the past, the FTC’s Office of Policy and Planning (“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.
Statutory authority for the advocacy program is found in sections 6(a) and (f) of the FTC
Act, which authorize 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 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
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
2

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:
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:

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 Section 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”).
3

Advocacy Program--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 (“GPEA”).
(c) Program Evaluations:
Advocacy Program--Staff typically sends the survey forms out by e-mail.
Occasionally, where necessary, staff sends the survey 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.
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/sites/default/files/attachments/us-submissions-oecd-and-other-internationalcompetition-fora/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

(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:
Advocacy Program--The 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:
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
5

the online forms enable complainants to provide the pertinent information at their leisure. 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:
Advocacy Program--The survey is targeted to state, federal, and local
policymakers (e.g., state legislators and federal regulators). Occasionally, the survey may be
sent to private entities whose policymaking activities may affect consumers or competition.
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.
(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 13 million complaints, including victims of consumer fraud and
identity theft. To date, Consumer Sentinel has over 2,100 members, including international law
enforcement agencies. 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:
Advocacy Program--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.

6

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, the Canadian Anti-Fraud Centre,6 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 79 Fed. Reg. 68,245 (November 14, 2014). No comments were received. The FTC
is also seeking public comment contemporaneously with this submission.

(9)

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

(10) & (11)

Assurances of Confidentiality/Matters of a Sensitive Nature

(a)-(c):

6

The Canadian Anti-fraud Centre is Canada’s national anti-fraud call centre and central fraud
data repository. It collects North American telemarketing complaints against Canadian
deceptive telemarketers and disseminates this information to the appropriate enforcement
agencies.
7

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(c),
16 C.F.R. § 2.2(c).
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) Estimated annual hours burden: 222,851 hours (150 + 222,622 + 64 + 15).
(a) Applications to the Commission, including applications and notices supported
pursuant to the Commission's Rules of Practice: 150 hours
Most applications to the Commission generally fall within the “law enforcement”
exception to the PRA 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
FTC annually receives approximately 15 requests for clearance submitted by former FTC
employees in order to participate in certain matters and screening affidavits submitted by
partners or legal or business associates of former employees pursuant to Rule 4.1, 16 CFR 4.1.
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, and requests for
material pursuant to compulsory process in cases or matters to which the agency is not a party.
7

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.”
8

Rule 4.11(e) requires that a person who seeks such testimony or material submit a statement in
support of the request. Staff estimates that agency personnel receive approximately 10 requests
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 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 an estimated average of $115/hour for executives’ and attorneys’ wages, would be
approximately $17,250 (150 hours x $115).8 There are no capital, start-up, operation,
maintenance, or other similar costs to respondents.
(b) Complaint Systems: 222,622 annual hours.
Consumer Response Center (CRC)
Consumers can submit complaints about fraud and other practices to the FTC’s
Consumer Response Center by telephone or through an online complaint form at 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. The FTC also hosts a second
online complaint form called econsumer.gov. This form accepts cross-border complaints from
consumers through the econsumer.gov website and transmits them into the Consumer Sentinel
Network. For telephone inquiries and complaints, the FTC staff estimates that it takes 5.9
minutes per call to gather information, and an estimated 5.3 minutes for consumers to enter a
complaint online. The burden estimate conservatively assumes that the entire phone call is
devoted to collecting information from consumers, although frequently telephone counselors
devote a portion of the call to providing requested information to consumers.
As of 2014, the FTC now supports web chat for its online complaint process. Web chat
allows consumers to communicate in real time using an easily accessible web interface to obtain
technical support for the online complaint process. This feature will enable the FTC to retain
consumer complaints from consumers who might otherwise abandon the process. Staff estimates
that it will take an average of 5 minutes per chat session to obtain the necessary technical
support.
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
8 Figures based on national median salaries, including bonuses and benefits, divided by a 2,080 hour work year (52
weeks x 40 hours/week), for a “Managing Attorney,” “Attorney II,” “Attorney III,” “Attorney IV,” and “Attorney
V” at www.salary.com.

9

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 to the
National Do Not Call Registry is 3 minutes for phone complaints and 2 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. FTC staff estimates that the online identity theft
complaint form takes consumers up to 8.5 minutes to complete.
For consumers who call the CRC with an identity theft complaint, staff estimates that it
will take 6.4 minutes per call to obtain complaint information. A substantial portion of identity
theft-related calls typically consists of counseling consumers on other steps they should consider
taking to obtain relief. The time needed for counseling is excluded from the estimate.
Surveys
Consumer customer satisfaction surveys give the agency information about the overall
effectiveness and timeliness of the FTC call center and online complaint process. An entity
called Customer Feedback Insights contacts subsets of consumers throughout the year with
several preapproved questions to elicit information from consumers about the overall
effectiveness of the phone complaint process. Current estimates are that each respondent will
require 4.4 minutes to answer the questions during the phone survey and about 2.7 minutes for
the online survey (approximately 20-30 seconds per question).
In addition, the FTC currently uses ForeSee, Inc. for online customer satisfaction surveys
on www.ftccomplaintassistant.gov. It randomly selects consumers to take part in a brief survey
to provide feedback about the website. Estimates relating to ForeSee surveys are included under
“Misc. and fraud-related consumer complaints (Web chat)” in the table below.
The FTC also plans to send an electronic survey to all United States-located Consumer
Sentinel Network users to identify areas where the system is satisfactory and where it can
improve. Staff estimates the survey to not take more than 5 minutes to complete.
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
10

over the three-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)
Misc. and fraud-related
consumer complaints (online)
Misc. and fraud-related
consumer complaints (Web
chat)9
Do-Not-Call related
consumer complaints (phone)
Do-Not-Call related
consumer complaints (online)
Identity theft complaints
(phone)
Identity theft complaints
(online)
Customer Satisfaction
Questionnaire (phone)
Customer Satisfaction
Questionnaire (online)
Consumer Sentinel Network
Survey
Totals

#Respondents #Minutes/Activit
y
367,000
5.9

Total Hours

221,000

5.3

19,522

31,200

5.0

2,600

627,000

3.0

31,350

2,860,000

2.0

95,333

224,000

6.4

23,893

88,000

8.5

12,467

8,000

4.4

587

17,000

2.7

765

200

5.0

17

4,443,400

36,088

222,622

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: 79 hours.
Review of Divestiture Orders – 64 hours
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 Office of Management
and Budget (OMB) and conducted by the staffs of the Bureau of Competition (BC) and the
Bureau of Economics, as well as more recent experience, BC monitors these required

9 This category includes online customer satisfaction surveys by ForeSee, Inc., for
www.ftccomplaintassistant.gov.

11

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 an attorney 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
responding company, two individuals (a company executive and an attorney) 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 x 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 x 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 $135/hour for executives’ and attorneys’ wages,
would be approximately $8,640 (64 hours x $135).10 There are no capital, start-up, operation,
maintenance, or other similar costs to respondents.
Review of Advocacy Program – 15 hours
The FTC’s advocacy program draws on the Commission’s expertise in competition and
consumer protection matters to encourage state and federal legislators, agencies and regulatory
officials, courts and private entities 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, regulations, and other policies.
In the past, the Office of Policy Planning (“OPP”) has evaluated the effectiveness of
these advocacy comments by surveying comment recipients and other relevant decision makers.

10 See supra note 1 (attorney salary source data for “Managing Attorney”).

12

OPP intends to continue this evaluation by sending an electronic, or where necessary, a paper
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. These survey
results are also included in the FTC’s internal performance management indicators, and are used
to guide the FTC’s selection and prioritization of future advocacy opportunities.
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 email. 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 $20 for
administrative support time. Thus, staff estimates a total labor cost of $55 for each response (30
minutes of burden at $100 per hour plus 15 minutes of burden at $20 per hour). Assuming 20
respondents will complete the questionnaire on an annual basis, staff estimates the total annual
labor costs will be approximately $1,100 ($55 per response x 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 ($84/hour), in addition to 15 minutes of paralegal ($54/hour) or
secretarial ($34/hour) support for each application, resulting in an annual cost of approximately
$2700.
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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, and requests for
material pursuant to compulsory process in cases or matters to which the agency is not a party.
Rule 4.11(e) requires that a person who seeks such testimony or material submit a statement in
support of the request. Staff estimates that agency personnel receive approximately 10 requests
per year split between responding to requests for employee testimony and materials. Responding
to requests for employee testimony, an attorney spends roughly two hours, in addition to 15
minutes of paralegal or secretarial support on each request, resulting in an annual cost of
approximately $1,000 for five such requests. Responding to requests for materials can cost
substantially more since they generally require several hours perhaps even days of paralegal and
staff attorney time to search for and properly categorize documents.
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 50
other applications or notices per year. Staff estimates that an attorney ($84/hour) spends roughly
four hours and 15 minutes of paralegal ($54/hour) or secretarial ($34/hour) support on each such
request, resulting in an approximate annual cost of $17,500 per year for the additional 50 other
applications or notices per year.
(b) Complaint Systems:
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:
Advocacy Program--Assembling and sending out the estimated 20 surveys will
require approximately 3 attorney hours, at a cost of approximately $84 per hour (3 x $84 =
$252), and 7 paralegal hours, at a cost of approximately $54 per hour (7 x $54 = $378). 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 possible 2 hard copy mailings, at an
estimated cost of $0.84 each (2 x $.84 = $1.68), and 2 return mailings, at an estimated cost of
$0.44 each (2 x $0.44 = $0.88), will total approximately $2.56 per year ($1.68 + $0.88 = $2.56).
Analysis of the survey data and incorporation into written work product (including the annual
Performance Plan/Annual Performance Report, internal memoranda, and other documents) will
require approximately 20 attorney hours at approximately $84 per hour (20 x $84 = $1,680).
Thus, the total annual cost to the agency for the information collection is approximately $2300
($252 + $378 + $2.56 + $1,680 = $2312.56).
Divestiture Review--The 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 ($84/hour). This includes about an hour to prepare before
the call, the time for the call, and maybe an hour to write up the results.

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(15)

Changes in Burden

The estimated annual hour burden is adjusted upward by approximately 36,000 hours,
mostly because there are more estimated consumer complaints. See subsection (b) below for
further details.
(a) Applications to the Commission:
There is no change.
(b) Complaint Systems:
The estimated annual hour burden is adjusted upward [from 186,884 in 2011 to 222,622
in 2014-2015], mostly because there are now more estimated consumer complaints. Staff
estimated 3,137,000 consumer respondents in 2011 and 4,443,400 consumer respondents in
2014-2015.
(c) Program Evaluations:
Advocacy Program—There is no change.
Divestiture Review—There is no change.
(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,
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:
Advocacy Program--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
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/sites/default/files/attachments/us-submissions-oecd-and-other-internationalcompetition-fora/evalauth.pdf.
15

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.
(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 “Certification for Paperwork Reduction Act Submissions”
(a)-(c):
None.

12

Arnold C. Celnicker, The Federal Trade Commission’s Competition and Consumer Advocacy
Program, 33 ST. LOUIS UNIVERSITY LAW JOURNAL 379 (1989).
16