[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Proposed Rules]
[Pages 34548-34549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10988]
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FEDERAL TRADE COMMISSION
16 CFR Part 317
Prohibition of Energy Market Manipulation Rule
AGENCY: Federal Trade Commission.
ACTION: Regulatory review; request for public comment.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') seeks
public comment on the overall costs, benefits, and regulatory and
economic impact of its rule prohibiting fraud or deceit in wholesale
petroleum markets, and omissions of material information that are
likely to distort petroleum markets, as part of the Commission's
systematic review of all current FTC rules and guides.
DATES: Comments must be received on or before September 3, 2020.
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. Write ``Energy Market Manipulation
Rule, 16 CFR part 317, Project No. P082900'' on your comment, and file
your comment online through 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,
Suite CC-5610 (Annex J), Washington, DC 20580, or deliver your comment
to the following address: Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite
5610 (Annex J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Peter Richman (202-326-2563),
Assistant Director, Mergers III, Bureau of Competition, Federal Trade
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Prohibition of Energy Market Manipulation Rule (``Energy Market
Manipulation Rule'' or ``Rule''), authorized by the Energy Independence
and Security Act of 2007 (``EISA'') (42 U.S.C. 17301-17305), prohibits
market manipulation in connection with the purchase or sale of crude
oil or petroleum products. The Rule, initially promulgated by the
Commission on November 4, 2009, prohibits fraudulent or deceptive
conduct (including making false or misleading statements of material
fact) in connection with wholesale purchases or sales of crude oil,
gasoline, or petroleum distillates. The Rule separately bans the
intentional failure to state a material fact when the omission (1)
makes the statement misleading and (2) distorts or is likely to distort
market conditions for any product covered by the Rule. The Commission
formally adopted the Rule on November 4, 2009.
II. Regulatory Review Program
The Commission reviews its rules and guides periodically to seek
information about their costs and benefits, regulatory and economic
impact, and general effectiveness in protecting consumers and helping
industry avoid deceptive claims. These reviews assist the Commission in
identifying rules and guides that warrant modification or rescission.
With this document, the Commission initiates its review of the
Energy Market Manipulation Rule. The Commission solicits comments on,
among other things, the economic impact of, and the continuing need
for, the Rule, the Rule's benefits to consumers, and the burdens it
places on industry members subject to the Rule's requirements,
including small businesses.
III. Issues for Comments
To aid commenters in submitting information, the Commission has
prepared the following specific questions related to the Energy Market
Manipulation Rule. The Commission seeks comments on these and any other
issues related to the Rule's current requirements. In their replies,
commenters should provide any available evidence and data that supports
their positions, such as empirical data, consumer perception studies,
and consumer complaints.
(1) Need: Is there a continuing need for the Rule? Why or why not?
(2) Benefits and Costs to Consumers: What benefits has the Rule
provided to consumers, and does the Rule impose any significant costs
on consumers?
(3) Benefits and Costs to Industry Members: What benefits, if any,
has the Rule provided to businesses, and does the Rule impose any
significant costs, including costs of compliance, on businesses,
including small businesses?
(4) Changes:
a. What modifications, if any, should the Commission make to the
Rule to increase its benefits or reduce its costs? How would these
modifications affect the costs and benefits of the Rule for consumers?
How would these modifications affect the costs and benefits of the Rule
for businesses, particularly small businesses?
b. Is there evidence of acts or practices in connection with the
purchase or sale of wholesale petroleum that violate the antitrust or
consumer protection laws and that fall within the statutory prohibition
of ``any manipulative or deceptive device or contrivance,'' but which
Sec. 317.3 does not reach?
c. The Rule defines ``knowingly'' to mean ``that the person knew or
must have known that his or her conduct was fraudulent or deceptive.''
16 CFR 317.2(c).
i. Has this definition prevented the Commission's Rule from
addressing behavior that is within the meaning of 42 U.S.C. 17301?
ii. Specifically, would changing the definition of knowingly to
capture acts, practices, or courses of business that a person ``knew or
should have known'' was fraudulent or deceptive, or changing the
definition in some other manner that tracks the statutory language,
enhance the Commission's ability to address behavior in wholesale
petroleum markets that is within the meaning of 42 U.S.C. 17301?
Commenters should address any costs and benefits to wholesale petroleum
markets and industry participants from modifying the definition.
(5) Impact on Information: What impact has the Rule had on the flow
of truthful information to consumers and on the flow of deceptive
information to consumers?
(6) Compliance: Provide any evidence concerning the degree of
industry compliance with the Rule. Does this evidence indicate that the
Rule should be modified? If so, why, and how? If not, why not?
(7) Unnecessary Provisions: Provide any evidence concerning whether
any of the Rule's provisions are no longer necessary. Explain why these
provisions are unnecessary.
(8) Technological or Economic Changes: What modifications, if any,
should be made to the Rule to account for current or impending changes
in technology or economic conditions? How would these modifications
affect the costs and benefits of the Rule for consumers and businesses,
particularly small businesses?
(9) Conflicts with Other Requirements: Does the Rule overlap or
conflict with
[[Page 34549]]
other federal, state, or local laws or regulations? If so, how? Provide
any evidence that supports your position. With reference to the
asserted conflicts, should the Rule be modified? If so, why, and how?
If not, why not?
IX. Comment Submissions
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before September 3, 2020. Write
``Energy Market Manipulation Rule, 16 CFR part 317, Project No.
P082900)'' on your comment. Because of the public health emergency in
response to the COVID-19 outbreak and the agency's heightened security
screening, postal mail addressed to the Commission will be subject to
delay. We strongly encourage you to submit your comment online through
the https://www.regulations.gov website. To ensure the Commission
considers your online comment, please follow the instructions on the
web-based form provided by regulations.gov. 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.
If you file your comment on paper, write ``Energy Market
Manipulation Rule, 16 CFR part 317, Project No. P082900'' 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, Suite CC-5610 (Annex J), Washington, DC 20580, or deliver
your comment to the following address: Federal Trade Commission, Office
of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor,
Suite 5610 (Annex J), Washington, DC 20024. If possible, please submit
your paper comment to the Commission by courier or overnight service.
Because your comment will be placed on the publicly accessible
website at 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 be filed in paper form, must be clearly labeled
``Confidential,'' and must 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 https://www.regulations.gov--as legally
required by FTC Rule 4.9(b)--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.
Visit the FTC website to read this request for comment and the news
release describing it. 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
September 3, 2020. 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.
By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020-10988 Filed 6-4-20; 8:45 am]
BILLING CODE 6750-01-P