Federal Register: August 11, 2009 (Volume 74, Number 153)
DOCID: fr11au09-31 FR Doc E9-19123
FEDERAL TRADE COMMISSION
Federal Trade Commission
CFR Citation: 16 CFR Part 425
NOTICE: PROPOSED RULES
DOCID: fr11au09-31
DOCUMENT ACTION: Re-opening the record for submission of public comments.
SUBJECT CATEGORY:
Rule Concerning the Use of Prenotification Negative Option Plans
DATES: Written comments must be received on or before October 13, 2009.
DOCUMENT SUMMARY:
The FTC re-opens the time period for filing public comments in response to its Advance Notice of Proposed Rulemaking and Request for Public Comments for sixty (60) days.
SUMMARY:
Rule Concerning the Use of Prenotification Negative Option Plans
SUPPLEMENTAL INFORMATION
On May 14, 2009, the Commission published an Advance Notice of Proposed Rulemaking (``Notice'') seeking comment on the overall costs, benefits, necessity, and regulatory and economic impact of the FTC's Trade Regulation Rule concerning ``Use of Prenotification Negative Option Plans''\2\ (``Negative Option Rule'' or ``Rule''). Currently, the Rule addresses only prenotification negative option plans for the delivery of merchandise. The Notice solicits comments on whether the Commission should expand the Rule to address additional negative option marketing categories and on the Rule's costs and benefits. The notice designated July 27, 2009, as the deadline for filing public comments.
\2\74 FR 22720 (May 14, 2009).
Three parties filed requests for an extension of the comment period
in this matter in midJuly. The Commonwealth of Pennsylvania, Office of
Attorney General, Bureau of Consumer Protection, ``along with several
other states including without limitation, Vermont, Florida, Iowa and
Colorado'' (collectively ``states'') requested a 30day extension. The Broward County
[[Page 40122]]
Licensing and Consumer Protection Division requested a 60day
extension. Finally, the American Association of Law Libraries (``AALL'') requested a 30day extension.
These entities explain that extension of the comment period will allow them to provide more comprehensive comments. Specifically, the states explain that they are compiling data responsive to some of the Notice's specific questions and that the data they collect may be relevant to the Commission's decision on whether to expand the Negative Option Rule to cover additional types of negative option offers. Similarly, Broward County explains that it has received numerous complaints concerning trial conversion negative option offers that it believes demonstrate that an expansion of the Rule's coverage is warranted. Finally, the AALL explains that it represents ``more than 5000 law librarians who are institutional consumers of enormous amounts of legal and other published material,'' and as such, are parties to many types of negative option plans. AALL states that it is requesting information from its membership regarding the Rule and an extension of the comment period would provide it with additional time to collect this data.
All of this data would assist the Commission in evaluating the
Rule's effectiveness and determining whether there is reason to believe
that unfair or deceptive acts or practices in nonRule covered negative
option marketing are ``prevalent.'' Moreover, the requested short
extension of the comment period will not substantially delay the
rulemaking process. The Commission is mindful of the need to deal with
this matter expeditiously; however, it also recognizes that its Notice
requests comments on complex issues and believes that extending the
comment period to facilitate the creation of a more complete record
outweighs any harm that might result from any delay. The requests for
an extension of the comment period were filed close to the comment
deadline; therefore, there was insufficient time to extend the comment
period. Accordingly, the Commission has decided to reopen the comment
period for sixty (60) days, until October 13, 2009, to allow for additional comment.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E919123 Filed 81009: 2:30 pm]
BILLING CODE 675001S
FOR FURTHER INFORMATION CONTACT
Robin Rosen Spector, (202) 326-3740 or Matthew Wilshire, (202) 3262976, Attorneys, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC. 20580.