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OMB Control No: 3084-0175	ICR Reference No: 202307-3084-004
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: FTC	Agency Tracking No:
Title: Information Collection under the Federal Cigarette Labeling and Advertising Act
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 07/31/2023
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/28/2023
	Date Received in OIRA: 07/27/2023
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2024	6 Months From Approved
Responses	41	0	0
Time Burden (Hours)	328	0	0
Cost Burden (Dollars)	0	0	0

Abstract: The Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1333 et. seq., sets forth certain warnings that are required to appear on cigarette packaging and advertising. The Act requires cigarette manufacturers and importers to rotate these warnings on a quarterly basis. See id. However, under certain circumstances, manufacturers and importers with sales below a specified threshold can apply for equalization with respect to the rotation of the warnings on their packaging—meaning that they only need to display the statutorily prescribed warnings an equal number of times over the course of a year—instead of rotation “with respect to a brand style of cigarettes.” See 15 U.S.C. § 1333(c)(1) and (c)(2). Regardless of whether a manufacturer or importer chooses to apply for equalization, it must submit a plan, which is subject to the FTC’s approval and must establish how the manufacturer or importer plans to comply with the statutory labeling and advertising (if it intends to engage in advertising) requirements. See 15 U.S.C. § 1333(a). The applicant must also keep records demonstrating its compliance with the plan approved by the FTC. Manufacturers and importers may apply for equalization if “(i) the number of cigarettes of such brand style sold in the fiscal year of the manufacturer or importer preceding the submission of the application is less than one-fourth of 1 percent of all the cigarettes sold in the United States in such year, and (ii) more than one-half of the cigarettes manufactured or imported by such manufacturer or importer for sale in the United States are packaged into brand styles which meet the requirements of clause (i).” See 15 U.S.C. § 1333(c)(2)(A). Additionally, as part of this application, the manufacturer or importer must include “a plan describing how the manufacturer plans to achieve equalization within the twelve-month period.” See 15 U.S.C. § 1333(c)(2)(B). If the FTC approves the application for equalization, that approval is valid for one year from the date of the approval. See 15 U.S.C. § 1333(c)(2)(C). A manufacturer or importer that has received approval for quarterly rotation of the warnings on its packages does not need further approval from the Commission unless it intends to add new brands or brand styles to its previously-approved plan. Similarly, approval for an advertising plan does not expire, although the manufacturer or importer will need additional approval for new brands, types of advertising, or sizes of advertising formats.

Emergency Justfication: The Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1333 et. seq., sets forth certain warnings that are required to appear on cigarette packaging and advertising. The FTC recently became aware that the FTC never obtained OMB clearance for this statutorily prescribed information collection. However, we believe that, in this instance, the FTC’s failure to obtain PRA clearance is of no consequence. First, since there is a statutory provision that requires the collection of the information, a failure to obtain PRA clearance does not preclude the assessment of a penalty under the statute. See 5 C.F.R. § 1320.6(e). Second, for the same reason, the failure to obtain a PRA clearance does not excuse noncompliance with the requirement. See e.g., U.S. v. Ionia Management S.A., 498 F. Supp. 2d 477, 489 (D. Conn. 2007). Special circumstances exist that require an emergency clearance pursuant to 5 C.F.R. § 1320.13(a). First, without the information, the FTC is unable to determine whether cigarette manufacturers and importers are complying with the statutory requirements for cigarette packaging. For this reason, any interruption in the FTC’s ability to carry out its statutory mandate will likely result in public harm. See 5 C.F.R. § 1320.13(a)(2)(i). Second, because the FTC is already collecting the information in accordance with its statutory mandate, “[t]he use of normal clearance procedures is reasonably likely to . . . disrupt the collection of information.” See 5 C.F.R. § 1320.13(a)(2)(iii). Finally, the collection of information is needed prior to the expiration of established time periods and is essential to the mission of the agency. See 5 C.F.R. § 1320.13(a)(1).

Authorizing Statute(s): US Code: 15 USC 1333 Name of Law: Federal Cigarette Labeling and Advertising Act

Citations for New Statutory Requirements: US Code: 15 USC 1333 Name of Law: Federal Cigarette Labeling and Advertising Act

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

Federal Register Notices & Comments
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Burden for Importers and Manufacturers of Cigarettes

ICR Summary of Burden

	Total Approved	Change Due to New Statute
Annual Number of Responses	41	41
Annual Time Burden (Hours)	328	328
Annual Cost Burden (Dollars)	0	0

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: The Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1333 et. seq., requires importers and manufacturers wishing to sell or advertise cigarettes within the United States to make certain submissions to the Federal Trade Commission (“FTC”). The FTC is seeking OMB clearance for this statutorily mandated information collection requirement.

Annual Cost to Federal Government: $26,039

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. 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? No

Agency Contact: Shira Modell 202 326-3116 smodell@ftc.gov

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