The Informal Dispute Settlement Procedures Rule

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
IDSP 2023_Supporting Statement_Final.pdf	Supporting Statement A	Uploaded 2023-04-27	Repair queued

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: 202212-3084-005
Status: Active	Previous ICR Reference No: 202005-3084-001
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: 07/19/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 05/02/2023
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	07/31/2026	36 Months From Approved	07/31/2023
Responses	27,350	0	26,953
Time Burden (Hours)	9,267	0	9,055
Cost Burden (Dollars)	344,560	0	209,595

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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:
	88 FR 1231	01/09/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 27514	05/02/2023
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
Audit reporting
Disclosure to consumers - IDSMs
Disclosure to consumers - Warrantors
Recordkeeping for disputes

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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	27,350	26,953	0	0	397	0
Annual Time Burden (Hours)	9,267	9,055	0	0	212	0
Annual Cost Burden (Dollars)	344,560	209,595	0	0	134,965	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 FTC seeks to extend for an additional three years the current Paperwork Reduction Act clearance for information collection requirements contained in its Rule on Informal Dispute Settlement Procedures (“Rule”). The Rule specifies the minimum standards which must be met by any informal dispute settlement mechanism (“IDSM”) that is incorporated into a written consumer product warranty and which the consumer is required to use before pursuing legal remedies under the Act in court. The Dispute Settlement Rule standards for IDSMs impose, among others, certain recordkeeping, disclosure, and reporting requirements. There is no change in the information collection.

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Annual Cost to Federal Government: $18,000

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

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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: 05/02/2023

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