Pre-Sale Availability Rule Extension Request for Comment

Content

ACTION:

Notice.

SUMMARY:

In accordance with the Paperwork Reduction Act of 1995 (PRA), the Federal Trade Commission (FTC or Commission) is seeking
public comment on its proposal to extend for an additional three years the information collection requirements contained in
the agency's Rule Governing Pre-Sale Availability of Written Warranty Terms. The current clearance expires on July 31, 2026.

DATES:

Comments must be filed by May 29, 2026.

ADDRESSES:

Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of
the
SUPPLEMENTARY INFORMATION
section below. Write “Paperwork Reduction Act Comment: FTC File No. P044403,” on your comment, and file your comment online
at https://www.regulations.gov by following the instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the
following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex E),
Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Sung W. Kim, Attorney, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania
Avenue NW, Washington, DC 20580, (202) 326-2211; skim6@ftc.gov.

SUPPLEMENTARY INFORMATION:

Title: Pre-Sale Availability of Written Warranty Terms (Pre-Sale Availability Rule or Rule), 16 CFR part 702.

OMB Control Number: 3084-0112.

Type of Review: Extension of a currently approved collection.

Background: The Pre-Sale Availability Rule, 16 CFR part 702, is one of three rules (1) that the FTC issued as required by the Magnuson Moss Warranty Act, 15 U.S.C. 2301 et seq. (Warranty Act or Act). (2) The Pre-Sale Availability Rule requires sellers and warrantors to make the text of any written warranty on a consumer product
costing more than $15 available to the consumer before sale. Among other things, the Rule requires sellers to make the text
of the warranty readily available either by (1) displaying it in close proximity to the product or (2) furnishing it on request
and posting signs in prominent locations advising consumers that the warranty is available. The Rule requires warrantors to
provide materials to enable sellers to comply with the Rule's requirements and also sets out the methods by which warranty
information can be made available before the sale if the product is sold through catalogs, mail order, or door to door sales.
In addition, in 2016, the FTC revised the Rule to allow warrantors to post warranty terms on internet websites if they also
provide a non-internet based method for consumers to obtain the warranty terms and satisfy certain other conditions. (3) The revised Rule also allows certain sellers to display warranty terms pre-sale in an electronic format if the warrantor has
used the online method of disseminating warranty terms.

As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3506(c)(2)(A), the FTC is providing this opportunity for public
comment before requesting that OMB extend the existing clearance for the information collection requirements contained in
the Pre-Sale Availability Rule.

Burden Statement

Total annual hours burden: 2,611,826.

In its 2023 submission to OMB, FTC staff estimated that the information collection burden of making the disclosures required
by the Pre-Sale Availability Rule was approximately 2,764,837 hours per year. Although there has been no change in the Rule's
information collection requirements since 2023, staff has adjusted downward its previous estimate of the number of manufacturers
subject to the Rule based on recent Census data. (4) Based on that data, staff now estimates that there are approximately 26,131 manufacturers subject to the Rule. (5) In addition, staff has adjusted downward its previous estimate of the number of retailers subject to the Rule based on recent
Census data. (6) There are now an estimated 493,621 retailers impacted by the Rule. (7) These estimates likely overstate the number of manufacturers and retailers because some of the included manufacturers and
retailers may make and sell products that are not covered by the Rule.

In submissions prior to 2023, FTC staff categorized retailers and manufacturers based on their size, and applied different
time estimates for complying with the Rule based on whether the entity was large or small. In its 2023 submission to OMB and
again this year, staff applied a single time estimate to all retailers and another to all manufacturers, regardless of size.
These estimates are intended to be an average time burden, reflecting the typical burden across the full spectrum of retailers
and manufacturers, and taking into account the number of large and small entities from prior years. This approach is consistent
with how staff have estimated the time burden for the Warranty Rule, 16 CFR part 701, another rule the FTC issued under the
Act.

Staff estimates that retailers spend, on average, 5 hours per year to comply with the Rule. Accordingly, the total annual
burden for retailers is approximately 2,468,105 hours (493,621 retailers × 5 burden hours). Staff estimates that manufacturers
spend an average of 5.5 hours per year to comply with the Rule. Accordingly, the total annual burden incurred by manufacturers
is approximately 143,721 hours (26,131 manufacturers × 5.5 hours).

Thus, the total annual burden for all covered entities is approximately 2,611,826 hours (2,468,105 hours for retailers + 143,721
hours for manufacturers).

Total annual labor cost: $73,131,128.

The work required to comply with the Pre-Sale Availability Rule entails a mix of clerical work and work performed by sales
associates. Staff estimates that half of the total burden hours would likely be performed by sales associates. At the manufacturing
level, this work would entail ensuring that the written warranty is available for every warranted consumer product. At the
retail level, this work would entail ensuring that the written warranty is made available to the consumer prior to sale. The
remaining half of the work required to comply with the Pre-Sale Availability Rule is clerical in nature, e.g., shipping or otherwise providing copies of

  manufacturer warranties to retailers, along with retailer maintenance of the warranties. Applying a sales associate wage rate
  of $29/hour to half of the burden hours and a clerical wage rate of $27/hour to half of the burden hours, the total annual
  labor cost burden is approximately $73,131,128 (1,305,913 hours × $29 per hour) + (1,305,913 hours × $27 per hour).

Total annual capital or other non-labor costs: De minimis.

The vast majority of retailers and warrantors already have developed systems to provide the information the Rule requires.
Compliance by retailers typically entails keeping warranties on file electronically, in binders or otherwise, and posting
an inexpensive sign indicating warranty availability. Warrantor compliance under the 2016 amendments entails providing retailers,
together with the warranted good, a copy of the warranty or the address of the warrantor's internet website where the consumer
can review and obtain the warranty terms, along with the contact information where the consumer may use a non-internet based
method to obtain a free copy of the warranty terms. Commission staff believes that, in light of the amendments, annual capital
or other non-labor costs will remain de minimis.

Request for Comment

Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites comments on: (1) whether the proposed collection of information
is necessary for the proper performance of the functions of the agency, including whether the information will be practically
useful; (2) the accuracy of the agency's estimate of the burden of the proposed collection of information, including whether
the methodology and assumptions used are valid; (3) ways to enhance the quality, utility, and clarity of the information to
be collected; and (4) ways to minimize the burden of the collection of information.

For the FTC to consider a comment, we must receive it on or before May 29, 2026. Your comment, including your name and your
state, will be placed on the public record of this proceeding, including the https://www.regulations.gov website.

You can file a comment online or on paper. Due to heightened security screening, postal mail addressed to the Commission will
be subject to delay. We encourage you to submit your comments online through the https://www.regulations.gov website.

If you file your comment on paper, write “Paperwork Reduction Act Comment: FTC File No. P044403,” on your comment and on the
envelope, and mail it to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue
NW, Mail Stop H-144 (Annex E), Washington, DC 20580.

Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In
particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security
number; date of birth; driver's license number or other state identification number, or foreign country equivalent; passport
number; financial account number; or credit or debit card number. You are also solely responsible for making sure that your
comment does not include any sensitive health information, such as medical records or other individually identifiable health
information. In addition, your comment should not include any “trade secret or any commercial or financial information which
. . . is privileged or confidential”—as provided by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)—including, in particular, competitively sensitive information, such as costs, sales statistics, inventories,
formulas, patterns, devices, manufacturing processes, or customer names.

Comments containing material for which confidential treatment is requested must (1) be filed in paper form, (2) be clearly
labeled “Confidential,” and (3) comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment
that accompanies the comment must include the factual and legal basis for the request and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with
the law and the public interest. Once your comment has been posted publicly at www.regulations.gov, we cannot redact or remove your comment unless you submit a confidentiality request that meets the requirements for such treatment
under FTC Rule 4.9(c), and the General Counsel grants that request.

The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in
this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on
or before May 29, 2026. For information on the Commission's privacy policy, including routine uses permitted by the Privacy
Act, see https://www.ftc.gov/site-information/privacy-policy.

Josephine Liu, Assistant General Counsel for Legal Counsel. [FR Doc. 2026-06056 Filed 3-27-26; 8:45 am] BILLING CODE 6750-01-P

Footnotes

(1) The other two rules relate to the information that must appear in a written warranty on a consumer product costing more than
$15 if a warranty is offered, and minimum standards for informal dispute settlement mechanisms that are incorporated into
a written warranty.

(2) 40 FR 60168 (Dec. 31, 1975).

(3) 81 FR 63664-70 (Sept. 15, 2016).

(4) The Number of Firms and Establishments, Employment, and Annual Payroll by State, Industry, and Enterprise Employment Size:
2022, release date: 4/10/2025, available at https://www.census.gov/data/tables/2022/econ/susb-annual.html.

(5) The 2023 estimate was that 27,094 manufacturers were subject to the Rule.

(6) Retail Trade: Summary Statistics for the U.S., States, and Selected Geographies: 2022 (EC2244BASIC), available at https://data.census.gov/table/ECNBASIC2022.EC2244BASIC?q=EC2244BASIC.

(7) The 2023 estimate was that 523,164 retailers were subject to the Rule.

Download File

Download