The Informal Dispute Settlement Procedures Rule

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
IDSP Rule - SS - 2014 -FINAL.pdf	Supporting Statement A	Uploaded 2014-03-18	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
32330	Recordkeeping for disputes		Modified
196181	Disclosure to consumers - Warrantors		Modified
183058	Disclosure to consumers - IDSMs		Modified
183057	Audit reporting		Modified

ICR Details

OMB Control No: 3084-0113	ICR Reference No: 201403-3084-001
Status: Historical Active	Previous ICR Reference No: 201102-3084-001
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: 04/21/2014
	Date Received in OIRA: 03/18/2014
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2017	36 Months From Approved	04/30/2014
Responses	25,346	0	40,126
Time Burden (Hours)	8,318	0	13,266
Cost Burden (Dollars)	161,219	0	264,587

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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 Congress’s 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 mechanism’s structure, the qualifications of staff or decision makers, the mechanism’s procedures for resolving disputes, recordkeeping, and annual audits.

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

Citations for New Statutory Requirements: None

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

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	78 FR 74142	12/10/2013
30-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 15125	03/18/2014
Did the Agency receive public comments on this ICR? No

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

table that charts list of burden

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

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	25,346	40,126	0	0	-14,780	0
Annual Time Burden (Hours)	8,318	13,266	0	0	-4,948	0
Annual Cost Burden (Dollars)	161,219	264,587	0	0	-103,368	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: There are no program changes. The estimated total annual hours burden has decreased to 8,318 hours in 2014 from the 13,000 hours estimated in 2011. Although the Rule's information collection requirements have not changed since 2011, staff adjusted its previous estimates because 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 (18,227 disputes/year in 2011; 11,514 disputes/year in 2014). This factor results in a decreased annual hours burden estimate for the IDSMs. Because the annual burden hours has decreased, the associated labor costs have also decreased, from the estimated $264,600 in 2011 to $161,220 in 2014. The estimate of the total capital and non-labor costs has decreased slightly from $321,684 in 2007 to $313,707. This new estimate retains the previous estimate of $300,000 in capital and start-up costs, but decreases the copying costs from $21,684 in 2011 to $13,707 in 2014. The decrease is due primarily to a decrease in the number of estimated disputes filed each year (from 3,645 in 2011 to 2,303 in 2014).

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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

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/18/2014

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