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OMB Control No: 3084-0113	ICR Reference No: 201102-3084-001
Status: Historical Active	Previous ICR Reference No: 200712-3084-003
Agency/Subagency: FTC	Agency Tracking No:
Title: The Informal Dispute Settlement Procedures Rule
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR: No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/16/2011
	Date Received in OIRA: 02/11/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2014	36 Months From Approved	03/31/2011
Responses	40,126	0	53,860
Time Burden (Hours)	13,266	0	16,729
Cost Burden (Dollars)	264,587	0	329,131

Abstract: Section 110(a)(2) of the Magnuson-Moss Warranty Act (15 U.S.C. Section 2301, et seq.) directed the Commission to prescribe rules setting forth the minimum requirements for any informal dispute settlement procedure that the warrantor requires the consumer to use before pursuing any legal action in court. On December 31, 1975, the Commission issued its Rule on Informal Dispute Settlement Procedures, 16 C.F.R. 703 (the Rule or Rule 703), which sets minimum standards for informal dispute settlement mechanisms (IDSM) established to resolve consumer warranty disputes. The purpose of the Rule is to carry out Congresss intent to encourage the fair and expeditious handling of consumer disputes through the use of alternative dispute resolution methods. Rule 703 applies only to those warrantors who (1) provide a written warranty, (2) on a consumer product, and (3) place a prior resort requirement in their warranty (i.e., require consumers to use a dispute resolution mechanism before exercising their legal remedies in court). Neither the Act nor Rule 703 requires warrantors to set up IDSMs. Furthermore, a warrantor is free to set up an IDSM that does not comply with Rule 703 as long as the warranty does not contain a prior resort requirement. Rule 703 contains procedural standards that must be followed by every IDSM that is incorporated, through a prior resort clause, into the terms of a written consumer product warranty. These standards include requirements concerning the mechanisms structure, the qualifications of staff or decision makers, the mechanisms procedures for resolving disputes, recordkeeping, and annual audits.

Authorizing Statute(s): US Code: 15 USC 2301 et seq. Name of Law: Magnuson-Moss Warranty Act

Citations for New Statutory Requirements: None

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 71704	11/24/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 7850	02/11/2011
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Audit reporting
Disclosure to consumers - IDSMs
Disclosure to consumers - Warrantors
Recordkeeping for disputes

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Adjustment in Estimate
Annual Number of Responses	40,126	53,860	-13,734
Annual Time Burden (Hours)	13,266	16,729	-3,463
Annual Cost Burden (Dollars)	264,587	329,131	-64,544

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: There are no program changes. The estimated total annual hours burden has decreased to 13,000 hours from the 17,000 hours estimated in 2007. Although the Rules information collection requirements have not changed since 2007, staff adjusted its previous estimates based on the following two factors. First, the annual audits filed by the two IDSMs currently operating under the Rule indicate that, on average, fewer disputes were handled since the previous submission to OMB in 2007. This factor results in a decreased annual hours burden estimate for the IDSMs. Second, staff has reevaluated the methodology used and the assumptions made in its previous submission with respect to the burden imposed on warrantors under the Rule, and now includes that analysis in its new estimates. This factor results in an increased annual burden estimate for warrantors (from negligible in 2007 to 804 annual hours in 2011). The result of both factors was an overall decrease of 4,000 hours. Because the annual burden hours has decreased, the associated labor costs have also decreased, from $266,000 in 2007 to $264,600. The estimate of the total capital and non-labor costs has decreased slightly from $329,000 in 2007 to $322,000. This new estimate retains the previous estimate of $300,000 in capital and start-up costs, but decreases the copying costs from $29,000 in 2007 to $22,000 in 2011. The decrease is due primarily to a decrease in the number of estimated disputes filed each year (from 4,896 in 2007 to 3,645 in 2011).

Annual Cost to Federal Government: $10,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

Agency Contact: Svetlana Gans 202 326-3708 sgans@ftc.gov

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