Proposed Rule: Tire Registration and Recordkeeping

Federal Register / Vol. 73, No.
16 / Thursday, January 24, 2008 / Proposed Rules 4157
accordance with the November 18, 2005 requires manufacturer owned tire 202–366–6206) (Fax: 202–366–7002).
Order of Vacatur, until such time as distributors and dealers to register the Mr. Woods’ mailing address is National
updated flood hazard information is names and addresses of the people to Highway Traffic Safety Administration,
proposed by FEMA. whom they sell or lease new tires, and NVS–122, 1200 New Jersey Avenue, SE.,
Regulatory Classification. Since this specifies the use of standardized paper Washington, DC 20590.
notice withdraws a notice of proposed forms for this purpose. It also requires For legal issues, Ms. Dorothy Nakama,
rulemaking, it is neither a proposed nor independent distributors and dealers to Office of the Chief Counsel (Telephone:
a final rulemaking and therefore is not provide purchasers with standardized 202–366–2992) (Fax: 202–366–3820).
within the scope of Executive Order registration forms they can complete Ms. Nakama’s mailing address is
12866 of September 30, 1993, and mail to the manufacturer or its National Highway Traffic Safety
Regulatory Planning and Review, 58 FR designee. Administration, NCC–112, 1200 New
51735 or the Regulatory Flexibility Act, We propose to amend the regulation Jersey Avenue, SE., Washington, DC
5 U.S.C. 601–612. by codifying existing interpretations 20590.
regarding opportunities under the SUPPLEMENTARY INFORMATION:
List of Subjects in 44 CFR Part 67
regulation for electronic registration of
Administrative practice and tire sales and leases and by creating new Table of Contents
procedure, Flood insurance, Reporting opportunities. The names and addresses I. Background
and recordkeeping requirements. of purchasers and lessees are used by a A. Tire Registration Requirements
Accordingly, 44 CFR part 67 is tire manufacturer to contact those B. Rate of Tire Registration
proposed to be amended as follows: people in the event that the C. Increasing the Effectiveness and
manufacturer must conduct a campaign Reducing the Cost of Tire Registration
PART 67—[AMENDED] to recall and remedy tires that either fail Through Electronic Registration
to comply with an applicable Federal 1. 1984 Interpretation to Representative
1. The authority citation for part 67 Wirth
motor vehicle safety standard or have a
continues to read as follows: 2. 2003 Interpretation to RMA
safety-related defect. 3. 2005–2007 Issues Regarding Clearance of
Authority: 42 U.S.C. 4001 et seq.; DATES: Comments must be received on the Tire Registration Requirements
Reorganization Plan No. 3 of 1978, 3 CFR,
or before March 24, 2008. Under the Paperwork Reduction Act
1978 Comp., p. 329; E.O. 12127, 44 FR 19367,
ADDRESSES: You may submit comments II. Need for Rulemaking
3 CFR, 1979 Comp., p. 376.
to the docket number identified in the III. Today’s Notice of Proposed Rulemaking
§ 67.4 [Amended] heading of this document by any of the A. Tires Sold by Independent Tire
Dealers—Alternative Means of Tire
2. The tables published under the following methods: Registration
authority of § 67.4 are amended to • Federal eRulemaking Portal: go to B. Tires Sold by Dealers Controlled by Tire
withdraw the following: http://www.regulations.gov. Follow the Manufacturers—Electronic Tire
The proposed flood elevation online instructions for submitting Registration
determination published in 72 FR comments. IV. Rulemaking Analyses and Notices
58598, October 16, 2007 for the • Mail: DOT Docket Management A. Executive Order 12866 and DOT
Unincorporated Areas of Richland Facility, M–30, U.S. Department of Regulatory Policies and Procedures
County, South Carolina. Transportation, West Building, Ground B. Regulatory Flexibility Act
Floor, Rm. W12–140, 1200 New Jersey C. National Environmental Policy Act
Dated: January 15, 2008. D. Executive Order 13132 (Federalism)
Avenue, SE., Washington, DC 20590.
David I. Maurstad, E. Civil Justice Reform
• Hand Delivery or Courier: West F. Paperwork Reduction Act
Federal Insurance Administrator of the Building Ground Floor, Room W12–140,
National Flood Insurance Program, Federal G. National Technology Transfer and
Emergency Management Agency, Department
1200 New Jersey Avenue, SE., between Advancement Act
of Homeland Security. 9 a.m. and 5 p.m. Eastern time, Monday H. Unfunded Mandates Reform Act
[FR Doc. E8–1209 Filed 1–23–08; 8:45 am]
through Friday, except Federal holidays. I. Plain Language
• Fax: (202) 493–2551. J. Regulation Identifier Number (RIN)
BILLING CODE 9110–12–P K. Privacy Act
Regardless of how you submit your
comments, you should mention the V. Public Participation
docket number of this document. I. Background
DEPARTMENT OF TRANSPORTATION You may call the Docket Management
Facility at 202–366–9826. A. Tire Registration Requirements
National Highway Traffic Safety Privacy Act: Please see the Privacy
Administration As originally enacted, the National
Act heading under Rulemaking Traffic and Motor Vehicle Safety Act of
Analyses and Notices. 1966 (now codified at Title 49 U.S.C.
49 CFR Part 574 Instructions: For detailed instructions Chapter 301 Motor Vehicle Safety) did
[Docket No. NHTSA–2008–0014] on submitting comments and additional not include a requirement for tire
information on the rulemaking process, registration. However, in May 1970,
RIN 2127–AK11 see the Public Participation heading of Congress amended the law to mandate
the Supplementary Information section that every tire manufacturer shall
Tire Registration and Recordkeeping of this document. Note that all maintain records of the names and
AGENCY: National Highway Traffic comments received will be posted addresses of the first purchaser of tires
mstockstill on PROD1PC66 with PROPOSALS
Safety Administration (NHTSA), without change to: http:// produced by that manufacturer.1
Department of Transportation (DOT). www.regulations.gov, including any NHTSA was given the authority to
ACTION: Notice of proposed rulemaking
personal information provided. establish procedures to be followed by
(NPRM). FOR FURTHER INFORMATION CONTACT: For manufacturers in establishing and
non-legal issues, Mr. Jeff Woods, maintaining such records, including
SUMMARY: Our regulation for tire Vehicle Dynamics Division, Office of
identification and recordkeeping Vehicle Safety Standards (Telephone: 1 Pub. L. 91–265.
VerDate Aug<31>2005 18:55 Jan 23, 2008 Jkt 214001 PO 00000 Frm 00037 Fmt 4702 Sfmt 4702 E:\FR\FM\24JAP1.SGM 24JAP1
4158 Federal Register / Vol. 73, No. 16 / Thursday, January 24, 2008 / Proposed Rules
procedures to be followed by The consumer may then fill in his or her registration forms to tire purchasers.
distributors and dealers to assist name and address, add a stamp and NHTSA stated that we did not think it
manufacturers in securing the names mail the form to the manufacturer or its would be the best use of our
and addresses of first purchasers. designee. In a follow-up final rule enforcement resources to bring
Pursuant to this authority, in a final published on February 8, 1984 (49 FR compliance actions against independent
rule published in the Federal Register 4755), the agency made slight revisions tire dealers. Instead, NHTSA proposed
(35 FR 17257) on November 10, 1970, to the tire registration form to improve in 1986 6 four potential steps to improve
NHTSA established the initial tire its clarity and also reduced the size of tire registration by independent dealers:
identification and recordkeeping the form so that it could be mailed using 1. Require prepaid postage on the
requirements of 49 CFR part 574. The post card postage. registration form; and/or
rule required all tire dealers to record As part of the agency’s 2. Undertake a public education
the name and address of the purchaser implementation of the Transportation campaign and a brief explanation of the
to whom they sold the tire, along with Recall Enhancement, Accountability, tire registration process in tire
the dealer’s name and address, and and Documentation (TREAD) Act (Pub. information pamphlets; and/or
forward that information to the tire L. 106–414) that was enacted on 3. A central clearinghouse for all
manufacturer. November 1, 2000, the agency increased registration forms distributed to
However, under the Motor Vehicle the tire registration record retention consumers by independent dealers; or
Safety and Cost Savings Authorization requirements for tire manufacturers 4. Rescind the tire registration
Act of 1982 (Pub. L. 97–331), Congress from three years to five years. The requirements and allow tire
amended the Safety Act to mandate that record retention period was extended in manufacturers to devise their own
the obligations of independent a final rule published in theFederal contractual ways of ensuring they meet
distributors and dealers be limited to Register (67 FR 45822) on July 10, 2002. the statutory obligation for tire
giving ‘‘a registration form (containing manufacturers to ‘‘establish and
B. Rate of Tire Registration
the tire identification number) to the maintain records of the names and
In the Motor Vehicle Safety and Cost addresses of first purchasers.’’
first purchaser.’’ The tire purchaser
Savings Authorization Act of 1982, After reviewing the pubic comments,
could then mail the form to the tire
Congress directed NHTSA to conduct an NHTSA published a termination of
manufacturer. Congress also mandated
evaluation after two years of voluntary rulemaking notice in November 1988 7
that NHTSA should prescribe a
registration to determine the extent to announcing that none of the four
standardized registration form and that
which the voluntary registration suggestions had been demonstrated to
tire manufacturers had to ensure that
procedures for independent dealers likely significantly increase the level of
they gave sufficient copies of these
were successful in increasing the tire registration by independent dealers
forms to their dealers. registration of tires.4 NHTSA was also
Congress adopted these amendments under voluntary registration. NHTSA
charged with determining the extent to also noted that the agency would
after the House Committee on Energy which independent dealers have
and Commerce found in its report on continue to rely on media and public
encouraged purchasers to register their announcements to alert the public of
the 1982 amendments that tire dealers tires and the extent to which
whose business was owned or tire recalls, so public safety would not
independent dealers have complied be jeopardized by the low registration
controlled by a tire manufacturer (these with the new procedures. Finally,
dealers accounted for just under 1/3 of rate for tires sold by independent
NHTSA was charged with deciding dealers.
tire sales) registered between 80 and 90 whether to impose any additional Although the agency has not
percent of the tires they sold.2 However, requirements to ‘‘significantly increase’’ conducted a subsequent evaluation, it
independent tire dealers, which registration of tires sold by independent believes that the registration rate for
accounted for more than 2/3 of tire dealers. tires sold or leased by independent
sales, registered only 20 percent of the Per that Congressional directive, distributors and dealers remains largely
tires they sold. NHTSA reported on its evaluation of unchanged. In a submission sent to the
The changes mandated by the 1982 voluntary tire registration by agency earlier this year, the Rubber
amendments were established in an independent dealers in 1985 and 1987.5 Manufacturers Association (RMA)
interim final rule published on May 19, We found that: indicated that the return rate for the
1983 (48 CFR 22572). The regulation 1. Registration rates for independent mail-in registration cards is no more
required tire manufacturers to provide dealers declined by half, from 18.1 than 10 percent.8
both independent and non-independent percent under previous law to 9.3
distributors and dealers with percent under voluntary registration. C. Increasing the Effectiveness and
standardized tire registration forms. The 2. Registration rates for company Reducing the Cost of Tire Registration
regulation specified the exact content of stores had remained steady at 86 Through Electronic Registration
the forms given to independent percent during this same period. 1. 1984 Interpretation to Representative
distributors and dealers. No other 3. Tire manufacturers had provided Wirth
information may appear on the forms.3 plenty of registration forms.
When an independent distributor or 4. There were no records of any tire In 1984, Representatives Wirth and
dealer sells or leases a tire to a registrations for more than 70 percent of Rinaldo wrote a letter to the agency
consumer, the distributor or dealer must the independent dealers. expressing several concerns. First, they
fill in the tire identification number and From this, NHTSA reached the noted that the agency had stated in a
its name and address on a registration conclusion that many independent recent rulemaking that the Vehicle
form and give the form to the consumer. dealers did not routinely give Safety Act did not permit independent
2 H.R. Rep. No. 576, 97th Cong. 2d Sess. 8–9 4 See Motor Vehicle Safety and Cost 6 Advance note of proposed rulemaking; 51 FR
(1982). Authorization Act of 1982, Pub. L. 97–331. 45916; December 23, 1986.
3 July 18, 2003 letter from Jacqueline Glassman to 5 For a discussion of NHTSA’s Evaluation Reports 7 Termination of rulemaking; 53 FR 44621,
Ann Wilson of RMA. Letter is available at: http:// on Voluntary Tire Registration, see 53 FR 44632– November 4, 1988.
isearch.nhtsa.gov/files/onlinetireregistration.html. 33, November 4, 1988. 8 Docket NHTSA–2006–26554–3.
Federal Register / Vol. 73, No. 16 / Thursday, January 24, 2008 / Proposed Rules 4159
dealers to return the mail-in registration the manufacturers and that the Before a Federal agency can collect
cards directly to the manufacturer information was often incomplete or the certain information from the public
without first providing the form to the writing illegible. RMA expressed the (which includes the Federal
purchaser with the required information belief that offering tire registration via government’s directing that the
filled in by the dealer. Second, they the internet, by telephone or other information be collected from new tire
expressed support for computerized tire electronic means would improve the purchasers by tire dealers to give to tire
registration and argued that the 1982 registration rate and aid manufacturers manufacturers, also called third-party
amendments to the Vehicle Safety Act in fulfilling their notification information), it must receive approval
should be interpreted as permitting obligations. from OMB. If OMB approves a
independent dealers to give the In its response, the agency said it collection of information, it assigns an
purchaser a mail-in registration form on agreed that the rationales in its letters OMB control number and an expiration
which they had not filled in any of the relating to child restraint registration date. OMB will not ‘‘approve any
required information if they attached to were also applicable to tire registration. collection of information for a period
the form a copy of the computerized The agency concluded that Part 574 longer than three years.’’ (See 5 CFR
invoice bearing that information. permits the provision of information section 1320.12(e)(1).) The OMB control
In its response, the agency stated about electronic registration as a number assigned to the Part 574
while a literal interpretation of the 1982 supplement to the required mail-in form collection of information is 2127–0050.
amendments would not permit for independent distributors and The current status of OMB’s approval is
independent dealers to do that, under dealers. available online at http://
an equitable interpretation, they would Likewise, as to non-independent www.reginfo.gov/public/do/PRASearch.
be.9 Under the principles of equitable distributors and dealers, the agency said Because the Part 574 collection of
interpretation, a statutory requirement that electronic registration could be information requirements are
need not be literally applied in offered to them. The agency cautioned, longstanding, we have, for many years,
instances in which the underlying however: asked for and been granted, OMB
Congressional intent is otherwise approval to collect the information. As
This interpretation does not relieve non- part of the periodic process to request
satisfied. The agency stated: independent distributors and dealers from
Based on the principles of equitable OMB to renew approval of an existing
the requirements of section 574.8(b) that they
interpretation, we believe that an collection of information, on December
themselves record the purchaser’s name and
independent tire dealer or distributor address, the tire identification number(s) of 28, 2005, we published in the Federal
who the tire(s) sold, and a suitable identification Register (70 FR 76909) an
(1) Registers tires by computer; of themselves as the selling dealer on a tire announcement that NHTSA planned to
(2) Attaches a computer-printed registration form and return the completed ask OMB for a renewal of approval to
invoice containing all of the information forms to the tire manufacturers or their collect the Part 574 information, and
necessary for registration to a blank
designees. While we would interpret Part 574 sought public comment on the proposed
to permit non-independent distributors and renewal.
standardized registration form; and dealers to accomplish these tasks by We received two comments in
(3) Furnishes the two documents to electronic means, they may not transfer this response. The first was from the
the customer when the tires are responsibility to consumers. National Automobile Dealers
purchased;
3. 2005–2007 Issues Regarding Association (NADA). NADA represents
fully satisfies the tire registration Clearance of the Tire Registration 20,000 franchised automobile and truck
amendments. Requirements Under the Paperwork dealers that act as independent tire
2. 2003 Interpretation to RMA Reduction Act dealers when they sell tires to
consumers under differing situations.
On July 18, 2003,10 the agency The information collected by tire The second comment was from Tire
responded to a letter from RMA asking dealers from tire purchasers and Recall Registry, Inc. (TRR). It raised
whether Part 574 permits tire retained by tire manufacturers is several issues, most of which were
manufacturers to offer electronic considered to be a ‘‘collection of related to its advocating electronic
registration in addition to the required information’’ 12 as defined by the Office registration of tires. TRR cited the July
mail-in form. RMA stated that it wanted of Management and Budget (OMB). The 18, 2003 NHTSA interpretation letter to
to provide independent tire distributors significance of this definition is that RMA in which NHTSA stated that
and dealers with a supplemental form approval of the ‘‘collection of information about and opportunities for
that notifies consumers that they may information’’ is subject to OMB review. electronic registration could be used to
also register their tires by electronic OMB has promulgated 5 CFR Part 1320 supplement the paper form specified by
means, e.g., by directing the consumer ‘‘Controlling Paperwork Burdens on the Part 574. TRR stated its belief that
to a Web site or a toll-free telephone Public.’’ OMB states that the purpose of requiring paper forms resulted in an
registration line. In support of its Part 1320 is to implement the provisions unnecessary burden under the OMB
request, RMA noted that the agency had of the Paperwork Reduction Act of 1995 regulations at 1320.3(b)(1), given that
recently concluded that child restraint (44 U.S.C. chapter 35) (PRA) concerning electronic means could be used instead,
manufacturers could provide consumers collections of information. The thus reducing the collection of
with a supplemental form encouraging procedures established in Part 1320 are information burden.
electronic registration.11 RMA said that designed to ‘‘reduce, minimize and On August 31, 2006, OMB renewed
no more than 10 percent of tire control burdens and maximize the the collection of information for Part
registration cards were being returned to practical utility and public benefit of the 574 for a period of six months, instead
information created, collected, of three years due to its concerns about
9 February 1983 letter from Diane K. Steed to the
disclosed, maintained, used, shared and the burdens associated with tire
Honorable Timothy E. Wirth. Letter is available at: disseminated by or for the Federal
http://isearch.nhtsa.gov/gm/83/1983–1.12.html.
registration. OMB posed several
10 July 18, 2003 letter to Ann Wilson of RMA. government.’’ questions for the agency to answer
11 Letter to John K. Stipancich, January 3, 2003; regarding DOT’s compliance with PRA
letter to Mark A. Rosenbaum, Esq., April 12, 2001. 12 See 5 CFR 1320.3(a)(3). requirements, the effectiveness rates of
the tire registration requirements, should not create any new or additional 1997—37,000,000
possible means to reduce the paperwork obligations for tire dealers or 2000—41,000,000 (Prior to Ford/Firestone
burden and encourage tire dealers and distributors by requiring them to register recall)
2003—54,000,000 (Corresponds with NHTSA
purchasers to register tires by permitting the tires. estimates, Docket No. 06–26554)
electronic registration, and a discussion 3. The tire manufacturer’s obligations 2006—59,000,000
of alternatives that might be permitted should remain the same. They should
for electronic registration, including the only be required to continue to provide CIMS stated that there will be added
use of electronic registration in lieu of the paper forms to tire dealers and costs associated with electronic tire
the paper mail-in form. The questions distributors and, upon receipt of the registration including developmental
were to be answered as part of NHTSA’s forms, retain the purchaser information costs, software upgrades and employee
next request to renew the Part 574 for five years. training. CIMS did not provide any
collection of information. On December 4. Through a NHTSA interpretation specific cost estimates.
8, 2006, NHTSA published a Federal letter, a supplemental form regarding NTRR stated its belief that changes are
Register document (71 FR 71238) 13 electronic tire registration is permitted. needed and that electronic registration
seeking comments on the OMB However, the agency should amend its would enhance public safety, and
questions and proposing to renew the regulations to permit information about would be consistent with Paperwork
Part 574 collection of information. such registration to be placed directly Reduction Act priorities. NTRR stated
In response to the December 2006 on the existing paper registration form. that allowing electronic registration as
document, five organizations submitted NADA generally supported the RMA an alternative, not merely as a
comments. In addition to comments comments regarding permitting Web site supplement, would improve registration
from RMA and NADA, comments were registration of tires, and referred to the rates over the current methods. NTRR
submitted by Computerized Information agency’s provisions for electronic stated that the July 18, 2003
and Management Services, Inc. (CIMS), registration of child safety seats in 49 interpretation letter from NHTSA to
National Tire Registry Recall.com CFR 571.213 as being instructive in this RMA leaves unanswered the extent to
(NTRR), and the Tire Industry regard. In addition to allowing which electronic registration and other
Association (TIA). Except for CIMS, all registration by Web site or fax, NADA alternatives to paper forms can be used
commenters supported efforts to expand stated that tire dealers should also be in compliance with 49 CFR part 574.
the methods of registering new tire permitted to register the tires for the NTRR also stated that the tire
purchaser information to include Web purchaser, upon obtaining permission registration form specified in Part 574
site registration by the purchaser and or a release from the purchaser to do so. does not display the required OMB
electronic registration performed by NADA noted that it has stated in the control number, and suggested that
independent tire dealers. past that franchised automobile and NHTSA does not adequately address
RMA stated that the continued privacy and confidentiality concerns
truck dealers act as independent tire
registration of new tire purchasers is a under the PRA.
dealers as well. Commenting on past
critically important safety issue so that TIA stated that it has worked closely
NHTSA announcements of intent to
purchasers can be notified in the event with the RMA in reviewing the need to
renew the Part 574 collection of
of a product recall or other safety revise the current tire registration
information, NADA questioned in those
problem. It urged NHTSA to either regulations in 49 CFR part 574, and that
prior renewals, and also in the current
interpret or revise Part 574 to allow an it agrees with the four principles
one, NHTSA estimates of 12,000 new
electronic alternative to the current identified by RMA for revisions to the
tire dealers and distributors, when
paper card system. RMA said that it has regulations. TIA stated that any
NADA stated that there are 20,000
data showing that less than 10 percent revisions to the regulations should not
of tire registration cards [from franchised automobile and truck
create any new or additional obligations
independent tire dealers] are currently dealers.
for tire dealers and thus should not
being returned to the tire manufacturer CIMS stated that it provides tire
require the tire dealers to register the
and many of these cards are inaccurate, registration services to over 80 percent
tires. TIA stated that many TIA member
incomplete, or illegible. RMA asked of tire manufacturers/brand owners in
tire dealers endorse electronic
NHTSA to interpret or amend the the replacement tire market and to over
registration and are making electronic
current regulations in the following 12,000 tire dealers and distributors.
registration of new tires possible. TIA
areas: CIMS is opposed to making changes to
recommended that NHTSA adopt the
1. Modify Part 574 to permit tire the existing tire registration regulations.
changes recommended by RMA as
distributor or dealer either (a) to provide CIMS stated that the current tire
quickly as possible.
consumer with the paper registration registration regulations are working, and In an additional Federal Register
form bearing instructions about the that independent tire dealers using the document on March 21, 2007 (72 FR
opportunity to register the tires at the CIMS All Brand Form can comply with 1334) 14 in which we asked that if the
tire manufacturer’s Web site or (b), on the tire registration regulation for one public had additional comments, to
a voluntary basis, to register the tires penny or less per tire. It stated that provide the comments directly to OMB
electronically at point of sale (without allowing electronic registration of tires by April 20, 2007, we provided a
having to provide any type of will only cause more confusion, will summary of the comments in response
registration form to the consumer). remove the tire purchasers’ rights and to the December 2006 document. In this
2. The current regulation only ability to ensure that their tires are March 2007 document, NHTSA
requires [independent] distributors to registered, and will increase the liability specifically stated that we are:
of independent tire dealers if the tire
provide the form to first purchasers with * * * considering revisions to update 49

the tire identification number and the registration information is not
CFR part 574 to provide, to the extent
dealer’s name and address. Any completely transmitted to the tire
consistent with the agency’s authority,
revisions to the regulations to permit manufacturer or if they jeopardize the allowances for electronic and other possible
electronic or point-of-sale registration privacy of tire purchaser information. means of registering new tires at the point of
CIMS indicated that tire registrations by
13 Docket No. NHTSA–06–26554. year are as follows: 14 Docket No. NHTSA–06–26554.
sale. First, the agency will consider the We have not performed additional manufacturer at which the consumer
inclusion of Web site registration information surveys on tire registration rates since could register the tires instead of
to be placed on the tire registration form in 1987. However, February 6, 2007 mailing in the form.
574.7. Second, the agency plans to update the comments from RMA stated that ‘‘no • We are proposing to remove the
registration form to include the OMB control
more than 10 percent of tire registration figures showing the standardized paper
number. Third, the agency will fully evaluate
what appropriate regulations are permissible cards are currently returned to registration form from the CFR. Some
to allow independent tire dealers to manufacturers and a significant number requirements that were expressed by
electronically register the tires on a voluntary of these cards are inaccurate, referring to the forms in the regulatory
basis for the consumer, within the incomplete or illegible.’’ Thus, text would be added to the regulatory
requirements specified in Title 49, U.S.C. regarding the response rate to paper text, but the regulation would no longer
Chapter 301, Section 30117—providing forms for new tires sold through specify as many details concerning the
information to, and maintaining records on, independent dealers, the agency format of the forms.
purchaser. believes that tire registration rates have • We are also proposing regulatory
Therefore, the agency will undertake not changed substantially for the past 20 text that would make it clear that
rulemaking in 2007 to address these issues
and provide the public with the opportunity
years. dealers owned or controlled by tire
to comment on the proposed changes. (See 72
For these reasons, the agency does not manufacturers may register tires by
FR at page 13345) agree with those that believe the current electronic means, consistent with a past
paper-form based tire registration interpretation. The figure showing the
As stated in the March 2007 notice, the program is effective. Even if electronic form used for these tires would also be
agency is now proceeding with registration does not result in removed.
rulemaking to consider allowing significantly more purchaser responses Our proposal would not impose new
registration via the internet or other (for new tire sales through independent obligations on tire dealers or tire
electronic means for new tire dealers), NHTSA believes the overall manufacturers. Instead, it would
purchasers. effectiveness rate of tire registration accommodate and facilitate internet and
would improve, because voluntary other electronic registration of tires,
II. Need for Rulemaking electronic registration would eliminate including voluntary registration of tires
NHTSA is proposing to amend the illegibility or other ambiguity caused by by independent dealers. We note that
Part 574 tire registration procedures to hand-written information. For are proposing a provision that would
facilitate internet and other electronic purchasers who do not like to fill in clarify that tire manufacturers must
registration of tires, including voluntary information by hand, electronic meet requirements concerning retention
registration of tires by independent tire registration could also reduce the of information for registration
dealers. We believe this rulemaking is overall burden of registration. information submitted to them by
needed to ensure that the regulation III. Today’s Notice of Proposed electronic or other means they
permits, to the extent consistent with Rulemaking authorize, in addition to that submitted
the agency’s authority, the use of new to them on the standardized paper
After carefully reviewing the public forms.
technologies in registering tires. In
comments to NHTSA’s December 2006 The details of our proposal are
addition to potentially reducing costs,
publication of the announcement of its discussed below.
the procedures could also result in
request to OMB to extend approval of
improved tire registration rates. A A. Tires Sold by Independent Tire
the Part 574 tire registration collection
higher new tire registration rate would Dealers—Alternative Means of Tire
of information, we have concluded that
help in the identification of first Registration
Part 574 should be amended to facilitate
purchasers of defective or
internet and other electronic registration As noted in our March 2007
nonconforming tires, so that the
of tires, including voluntary registration document, we are considering revisions
purchasers may take appropriate action
of tires by independent tire dealers. Our to update 49 CFR part 574 to allow, to
in the interest of motor vehicle safety.
proposal follows an approach similar to the extent consistent with the agency’s
As described below, NHTSA’s most
the ones suggested by RMA and NADA. authority, for use of electronic and other
recent data on tire registration rates Specifically, under our proposal:
were included in a termination of possible means of registering new tires
• Independent tire dealers could, in at the point of sale.
rulemaking notice published in the lieu of providing a paper registration
Federal Register on November 4, 1988 The statutory requirements relevant to
form to the consumer, voluntarily independent tire dealers are found at 49
(53 FR 44632). register a tire by internet or other U.S.C. 30117(b)(2)(B), which reads as
As discussed earlier, NHTSA found in electronic means, so long as such means follows:
a 1985 study that under the mandatory were authorized by the tire
tire registration program for manufacturer. These dealers would also The Secretary shall require each distributor
independent tire dealers, the and dealer whose business is not owned or
have the option of providing to the
controlled by a manufacturer of tires to give
registration rate was 18.1 percent. In consumer the mailable standardized a registration form (containing the tire
1987, NHTSA found that, under the paper registration form that includes the identification number) to the first purchaser
voluntary independent tire dealer tire identification number (TIN) and the of a tire. The Secretary shall prescribe the
registration program, the tire registration dealer’s name and address (this is the form, which shall be standardized for all tires
rate among independent tire dealers had current requirement set forth in Part and designed to allow the purchaser to
decreased to 9.5 percent. If the number 574), or using the same standardized complete and return it directly to the
of tires registered using computers is paper registration form, but voluntarily manufacturer of the tire. The manufacturer
subtracted from 9.5 percent, the return completing the form and registering the shall give sufficient copies of forms to
rate for paper tire registration forms was distributors and dealers.
tire by sending the form to the tire
only 8 percent. In 1987, the tire manufacturer or its designee. Not surprisingly, given the pre-internet
registration rate for tires sold by • The standardized paper registration date of enactment of the statute, the
company-controlled dealers was found form would be permitted to identify a statutory provision appears to
to be greater than 86 percent. Web site authorized by the tire contemplate a mail-in paper form (‘‘the
manufacturer shall give sufficient copies language and legislative history Voluntary registration by independent
of forms to distributors and dealers’’). mentioned above that suggests the forms dealers.
Also, the legislative history (House are to be paper ones. As indicated above, after reviewing
report) 15 refers to forms that are suitable As to the term ‘‘give,’’ it could readily our 1984 interpretation to Congressman
for mailing and addressed to the be interpreted in the context of the Wirth, we now believe that it went to
manufacturer or its designee. statute to mean physically provide some extent beyond what was necessary
One relevant issue is the effect of either ‘‘take away’’ means of registration to satisfy Congressional intent. In
voluntary tire registration by (i.e., mailable form) or means of ‘‘on- particular, the agency believes that
independent tire dealers on their the-spot’’ registration (i.e., an in-store electronic registration of the tires by
obligations under section computer terminal accessible to independent dealers would satisfy the
30117(b)(2)(B). While the statute purchaser). It is not apparent how the statutory requirements, without the
provides for a program in which term could be further interpreted to need to provide an additional blank
purchasers of tires from independent mean simply inform the purchaser form to the purchaser. The purpose of
tire dealers may register their tires by about the opportunity to use means not the statutory requirement is to enable
returning a form to the tire physically present in the dealer’s store the purchaser to register the tire
manufacturer, NHTSA’s letter to (e.g., use of a computer terminal located purchase with the manufacturer. As
Congressman Timothy Wirth 16 at the purchaser’s home or elsewhere.) such, if the dealer registers the tires
addressed the situation in which It is even less apparent how such further electronically for the purchaser and
independent tire dealers may wish to interpretation could be given the term provides a blank form to the purchaser,
register tires voluntarily for consumers. ‘‘give’’ given the additional requirement confusion could result, since the
Invoking the principles of equitable that the form given the purchaser purchaser might think there was a need
interpretation, the agency concluded ‘‘* * * contain the tire identification to submit the paper form to the
that voluntary registration would number * * *’’ manufacturer.
partially relieve independent dealers of Regarding the statement in the
A possible scenario that could be
their statutory obligations. Under those interpretation that the purchaser be
viewed as meeting all of the statutory
principles, a statutory requirement need given a computer-printed invoice with
requirements would be one in which the
not be literally applied in instances in the information on the tire registration
purchaser was provided access to a paper form, the agency now believes
which the underlying Congressional
computer at the dealership where the that statement also exceeds what is
intent is otherwise satisfied. More
screen showed the form with the tire necessary. The tire registration
specifically, the agency stated:
identification numbers already filled in, information is kept by the tire
Based on the principles of equitable and the purchaser could register the
interpretation, we believe that an manufacturer (or its designee). There is
tires with the manufacturer by entering no need for the dealer or purchaser to
independent tire dealer or distributor who (1)
registers tires by computer; (2) attaches a
his or her name and address and retain that information, and NHTSA has
computer-printed invoice containing all of clicking on a button to register the tires. no record retention requirement for
the information necessary for registration to We do not know whether manufacturers either tire dealers or tire purchasers.
a blank standardized registration form; and and dealerships would be interested in Instead of duplicating the required
(3) furnishes the two documents to the an option along these lines, but note information on the invoice given to the
customer when the tires are purchased; fully that we are requesting comments below
satisfies the tire registration amendments. purchaser, the agency believes that a
on this type of approach. We also note written statement on the invoice
* * *
that a number of approaches for regarding the registration of the tires by
While, as discussed below, we now electronic registration by purchasers the dealer would be sufficient to inform
believe that this interpretation goes to would appear not to meet these the consumer that the tires have been
some extent beyond what is necessary to statutory requirements, but could be registered.
satisfy Congressional intent, we believe viewed as supplemental means of We are therefore proposing that
the basic principle is correct. In transmitting tire registration to independent tire dealers have the option
particular, if an independent tire dealer manufacturers. of voluntarily electronically registering
voluntarily registers tires for the In light of the above discussion and in tires with the tire manufacturer. We
consumer, it serves no purpose to considering alternative means for note, however, that whether this option
require the full procedures necessary to registration of tires sold by independent can be used depends on the tire
enable consumers to also register those dealers, we believe: (1) The regulation manufacturer’s providing a means to
tires. must include a basic procedure receive this information electronically,
Several other issues are whether the consistent with the statutory or designating an agent to do so for it.
statute can be interpreted to permit the requirement that enables purchasers of The agency is not aware of what specific
use of electronic forms in lieu of paper tires from independent tire dealers to means might be used to provide
forms and, assuming that the answer to register their tires by returning a form electronic registration, such as specific
that issue is ‘‘yes,’’ the meaning of the with the TIN already filled in to the tire software that identifies tire sales and
statutory command to ‘‘* * * give a manufacturer; (2) the regulation may then automatically uses the internet to
registration form (containing the tire provide options under which an transmit the information to the tire
identification number) to the first independent tire dealer may voluntarily manufacurer or its designee. However,
purchaser * * *’’ in the context of register tires for consumers, in which the agency believes that many company-
electronic forms. As to the term ‘‘form,’’ case the dealer need not meet the full controlled tire dealers have autonomous
it could be interpreted broadly enough
procedures necessary to enable systems in place to register the tires as

to include electronic as well as paper consumers to register those tires; and (3) part of the sale transaction. Such
forms, notwithstanding the statutory the regulation may accommodate means systems do not require additional or
15 H.R.
that tire manufacturers may provide for separate actions by sales personnel to
Rep. No. 97–576, p. 8.
16 February 1983 letter from Diane K. Steed to the
tire registration (e.g., internet register the tires. The agency welcomes
Honorable Timothy E. Wirth. Letter is available at: registration) that consumers may use additional details on the methods that
http://isearch.nhtsa.gov/gm/83/1983–1.12.html. instead of mailing in the form. are currently in place and also other
methods that might be used, including designate a third party to collect or store slightly from the FMVSS No. 213 text
how independent tire dealers may be the tire registration information. Such that includes references to registering
able to register tires electronically. third party designation is currently online on both sides of the form,
Our proposal also includes an option allowed for the paper registration forms although the text on the mailing label
in which independent tire dealers could under 574.7, and NHTSA is not aware side of that form is on a part of the form
use the standardized paper registration of any reason not to extend third party that is removed prior to mailing.
form, but voluntarily complete the form designation to electronic tire However, the tire registration form is
and register the tires by sending the registrations methods. Since we do not not of that design, and much of the form
form to the tire manufacturer or its have any detailed information on how space is needed for recording the tire
designee. designees would collect and retain tire identification numbers. We welcome
One issue that arises with registration information, the agency comments on the proposed text and
independent dealers being permitted to welcomes additional details that would location of the optional Web site
register tires voluntarily for consumers assist the agency in establishing registration information.
is whether they could charge a separate requirements. We request comments on whether
registration fee. We have tentatively Alternative means of registration by information about other possible means
concluded that this should not be tire purchasers. of supplemental registration should be
permitted, as it could discourage Consistent with our interpretation permitted to be placed on the tire
registration and cause confusion. We letter to RMA, we are including in the registration paper form. We note, as
request comments on this issue. proposed regulatory text a provision indicated above, that the available space
Another issue that arises with stating that tire manufacturers may on the form is limited.
electronic registration of tires is the voluntarily provide means for tire Other possible options for tire
security of the information being registration via the internet, by registration.
transmitted. The proposed regulatory telephone or other electronic means. We request comments on whether the
text would require that electronic RMA and NADA commented that the regulation should specify additional
registration be by secure means, e.g., use tire registration paper form should be options for registering tires sold by
of https on the web. We request allowed to include instructions for independent tire dealers that would be
comments on the need for such a purchasers about registering tires consistent with our statutory authority.
provision, and whether it should be directly on the tire manufacturer’s Web We intend for the scope of this proposal
more specific. We note that in site. NADA stated that the electronic to be broad and, depending on the
September 2005 we decided not to registration provisions for child safety comments, may adopt additional
include an ‘‘encryption’’ requirement seats in FMVSS No. 213 are instructive options in the final rule.
for electronic registration of child safety about the value of permitting this. TIA We note that, as indicated above, it is
seats.17 We may or may not adopt a stated that it agreed with the four our goal to accommodate and facilitate
requirement concerning secure means principles for new tire registration internet and other electronic registration
for electronic registration of tires, but requirements described by RMA (one of of tires, including voluntary registration
would like to have the benefit of public which is to allow Web site registration). of tires by independent dealers. We also
comments before reaching a decision. NTRR’s comments did not specifically note that since additional options would
Regarding CIMS’ comment that address putting Web site information on also be voluntary, there is no reason to
additional burden would shift to the tire the paper form. specify ones that would be unlikely to
dealer if it decided to use electronic The agency tentatively agrees that be used by independent tire dealers, tire
registration, NHTSA notes that including, at the tire manufacturer’s manufacturers, and/or consumers.
registration by independent tire dealers option, a Web site address for We seek comment on whether there
would be voluntary. Nothing in this purchasers to register tires could should be some type of option in which
rulemaking would require independent facilitate registration for tire purchasers, independent tire dealers might be able
tire dealers to register tires for the and also improve the quality of to use electronic forms in lieu of paper
purchaser. information received by the tire forms to enable consumers to register
NADA’s comments regarding an manufacturer. As RMA stated, many of their tires. Such an approach might, for
optional electronic registration program the paper registration forms that are example, involve independent tire
stated that the tire dealer should obtain received by tire manufacturers are dealers setting up computer terminals at
permission or a release from the inaccurately filled out, incomplete, or their dealerships in which tire
purchaser before being permitted to illegible. By allowing purchasers to type purchasers would see a form on the
register the tires on behalf of the in the information directly on the tire computer screen with the TIN and
purchaser. The agency believes that this manufacturer’s Web site, the issue of possibly other information already filled
would create an additional collection of illegibility should be eliminated. in, which tire purchasers could use to
information or other burden that would NHTSA checked several tire register their tires. We note that if such
not be necessary if, instead, a manufacturers’ Web sites, for both an approach involved the consumer’s
registration statement is provided to the widely-known tire brands and lesser- being given the electronic form with the
purchaser indicating that the tire dealer known tire brands, and found in all but TIN filled in, the approach could,
is performing tire registration for the one case that the tire manufacturers consistent with the requirements of 49
purchaser. We also observe that such already have Web site-based tire U.S.C. 30117(b)(2)(B), be an option that
releases are not required for tire dealers registration capability. Inclusion of Web independent tire dealers could use in
controlled by tire manufacturers, which site registration information would be lieu of paper forms. We also note that
are required to register tires for performed at the option of the tire if such an option were permitted in lieu
consumers. manufacturer. We are proposing simple of paper forms instead of as a
For the new electronic registration text to keep information on the form to supplement, the electronic form would
requirements, NHTSA also proposes to a minimum: ‘‘Instead of mailing this need to be standardized.
permit the tire manufacturer to form, you can register online at [insert We specifically request that any
tire manufacturer’s Web site address]’’. commenters recommending additional
17 70 FR 53569, 53572–73, September 9, 2005. This proposed language deviates options for tire registration, beyond
those in the proposed regulatory text, recall list. However, the regulation adopt related to electronic registration
provide specific recommended would no longer specify that the of tires be similar/different from the
regulatory text for those additional statement indicate that a person ‘‘must’’ ones we adopted for child safety seats,
options. send in the card to be on the recall list, and why?
since manufacturers may provide
Registration forms. B. Tires Sold by Dealers Controlled by
alternative means of registering tires.
As discussed above, for tires sold by Under our proposal, if a tire Tire Manufacturers—Electronic Tire
independent tire dealers, NHTSA is manufacturer provides a Web site where Registration
required by statute to prescribe a its tires can be registered, it may (but is The tire registration form in Figure 4
standardized tire registration form for not required to) include the following of Part 574 is the form that is to be filled
all tires. Specifically, 49 U.S.C. sentences: ‘‘Instead of mailing this form, out by company-controlled tire dealers
30117(b)(2)(B) provides ‘‘(t)he Secretary you can register online at [insert tire and returned to the manufacturer upon
shall prescribe the form, which shall be manufacturer’s registration web site the sale of new tires. We note that we
standardized for all tires * * *’’ address]’’. have no data on the continued use of
The statute provides that tire The form would also include the this form, or what percentage of
manufacturers must give sufficient admonition: ‘‘Do it today.’’ company-controlled dealers continue to
copies of the registration forms to The form would also continue to use this form versus submit the
distributors and dealers. Also, Part include space for recording the tire registration information to the tire
574.8 permits distributors and dealers to identification numbers for six tires. manufacturer using electronic means.
use registration forms obtained from There would also continue to be As noted above, the agency has
other sources. shading to distinguish between areas of previously provided an interpretation
Pursuant to the requirement to the form to be filled in by sellers and letter to the RMA (July 18, 2003 agency
prescribe a standardized tire registration customers. letter) stating that while company-
form, NHTSA has adopted requirements As indicated above, under our controlled dealers are permitted to
through rulemaking and placed them in proposal, the regulation would no register tires electronically:
Part 574. The details of some of the longer specify as many details
requirements, including size and data This interpretation does not relieve
concerning the format of the form. non-independent distributors and
elements, are set in the regulatory text. We request comments on the removal
The details of certain other dealers from the requirements of section
of these figures and on what 574.8(b) that they themselves record the
requirements are not set out in the requirements expressed by reference to
regulatory text. Instead, the regulatory purchaser’s name and address, the tire
the figures should be added to the identification number(s) of the tire(s)
text requires that forms conform in regulatory text.
content and format to the forms sold, and a suitable identification of
Registration rates.
depicted in the figures included in Part We request comments on the current themselves as the selling dealer on a tire
574. See 574.7(a)(2). registration rates of tires sold by registration form and return the
To promote flexibility, we are independent tire dealers. Commenters completed forms to the tire
proposing to remove the figures are asked to provide information manufacturers or their designees. While
showing the forms in Part 574. To concerning the total number of such we would interpret Part 574 to permit
ensure that the forms remain tires that are sold and the number of non-independent distributors and
standardized, we are proposing to add those tires that are currently being dealers to accomplish these tasks by
some requirements to the regulatory text registered by each alternative means, electronic means, they may not transfer
that are currently expressed by referring e.g., the number of tires registered by this responsibility to consumers.
to the figures, but with fewer details returning the paper form, the number In this NPRM, NHTSA is proposing to
concerning format. We are also registered using the tire manufacturer’s include a provision expressly reflecting
proposing to update the size standards Web site, etc. The agency requests that this existing option in the Part 574
to reflect the current U.S. Postal commenters provide the specific basis requirements. Specifically, NHTSA
Service’s ‘‘Domestic Mail Manual’’ for any numbers or rates that are proposes that electronic means be
(Updated 12–6–07) at Section 6.3 provided. We also request comments on permitted as an alternative to the paper
‘‘Cards Claimed at Card Rates’’ that how and why these registration rates registration forms specified in S574.7(b).
specifies physical standards that may change if the agency adopts this As earlier stated, we have little
postcards must meet in order to be proposed rule. information on how these systems are
eligible for mailing at card rates. Other issues. configured, so we are proposing simple
Under our proposal, on the address We request comments on other issues language and we welcome comments on
side of the form, the following would related to our proposal. As indicated alternative language.
continue to be required to be provided: above, we intend the scope of this As to Part 574’s requirements for
The name and address of the proposal to be broad. these forms, requirements concerning
manufacturer or its designee, and, in the We specifically invite comments data elements are set forth in the
upper right hand corner, the statement: related to NHTSA’s provisions for regulatory text, and the regulatory text
‘‘Affix a postcard stamp.’’ electronic registration of child safety also specifies that the forms must be
The other side of the form would seats in S5.8.2 of FMVSS No. 213. See similar in format and size to that in
continue to include the tire final rule published in the Federal Figure 4. We note that the statutory
manufacturer’s name (unless it already Register (70 FR 53569) on September 9, requirement that NHTSA prescribe a
appears on the address side), and the 2005.18 The agency considered a standardized tire registration form does
statement: ‘‘IMPORTANT, In case of a number of issues related to electronic not apply to ones for tires sold by
recall, we can reach you only if we have registration and electronic registration dealers controlled by tire manufacturers.
your name and address.’’ There would forms in that rulemaking. To what To promote flexibility, we are
also continue to be a statement extent should the requirements we proposing to remove Figure 4 showing
indicating that sending in the card will the registration forms to be used. We are
add a person to the manufacturer’s 18 Docket NHTSA–2005–22324. proposing to add several requirements
currently expressed by reference to the by internet and other computerized registration on their Web sites would
figure, and otherwise leave all other means. Nothing in the proposed rule, if incur some cost to include a registration
details to the tire manufacturer. Under made final, would require any tire site. The agency has found that most tire
our proposal, the form would continue dealer to use these new procedures. All manufacturers already have tire
to be required to include: collection of the names and addresses of registration sites included on their Web
• A statement indicating where the first purchasers of new tires may sites. This method of registration would
form should be returned, including the continue to be collected as at present. save consumers the cost of a postcard
name and mailing address of the However, we believe that permitting postage stamp, and it would save costs
manufacturer or its designee. electronic means of tire registration will for tire manufacturers because they (or
• The tire manufacturers’ logo or increase the rate of registrations, which their designee) would not have to
other identification, if the manufacturer will in turn increase the effectiveness of transcribe the information on the paper
is not identified as part of the statement future tire recalls and thus improve forms into a tire registration data base.
indicating where the form should be motor vehicle safety. In the table which follows, we are
returned. There would be some cost impacts, in providing estimates of the monetized
• The statement: ‘‘IMPORTANT; terms of time and/or money, associated costs associated with various rates of
FEDERAL LAW REQUIRES TIRE with increased registrations of tires by increased tire registration using the
IDENTIFICATION NUMBERS MUST BE electronic means. Since the options we internet. Under this scenario, paper
REGISTERED.’’ are proposing are voluntary, we do not forms would continue to be provided to
We request comments on the removal know to what extent they will be purchasers, but the additional
of this figure and on what requirements utilized by independent tire dealers and registrations would occur via the
expressed by reference to the figure tire manufacturers. However, we are internet rather than by the forms being
should be added to the regulatory text. providing analysis to show the potential mailed in. Therefore, although tire
VI. Rulemaking Analyses and Notices cost impacts. registrations would increase, mailing
Increased registrations by consumers and other paperwork costs would
A. Executive Order 12866 and DOT using the internet. remain the same. We are assuming, for
Regulatory Policies and Procedures Under the proposed rule, tire purposes of these estimates, that the
NHTSA has considered the impact of manufacturers can provide, on a costs associated with the current level of
this rulemaking action under Executive voluntary basis, internet registration tire registration would not change. The
Order 12866 and the Department of information on the tire registration form additional costs associated with this
Transportation’s regulatory policies and that is given to purchasers by scenario would be the time consumers
procedures. The Office of Management independent tire dealers. Consumers spent registering tires via the internet
and Budget reviewed this rulemaking could then register their tires online that they otherwise would not register.
document under E.O. 12866, instead of filling out the paper form and We also assume that because the tire
‘‘Regulatory Planning and Review.’’ mailing it to the tire manufacturer or its registration information is collected
This rulemaking action has been designee. The cost of printing this using purely electronic means, there
determined to be significant under the information on the form is negligible, would be no additional labor burden for
DOT Policies and Procedures because of and therefore there would be no cost the tire manufacturer for recordkeeping
public interest. increase to tire manufacturers that are associated with these additional
In this document, NHTSA is responsible for printing the forms and registrations. To monetize the costs of
proposing to amend Part 574 by providing them to independent tire consumers filling out paper forms or
permitting collection of the names and dealers. However, the tire manufacturers using the internet, a labor rate of $14.61
addresses of first purchasers of new tires offering the option of internet-based tire per hour is used.19
CONSUMER COST PROJECTIONS ASSOCIATED WITH INCREASED TIRE REGISTRATIONS WITH CONSUMERS REGISTERING
TIRES USING THE INTERNET
Future tire registrations using internet-based
registration by consumers
Current tire
registrations 10 percent in- 15 percent in- 20 percent in-
crease crease crease
Consumer Hour Burden Estimates:

Number of Consumers ............................................................................. 10,000,000 11,000,000 11,500,000 12,000,000
Total Tire Registrations ............................................................................ 54,000,000 59,400,000 62,100,000 64,800,000
Tire Registration Hours ............................................................................ 225,000 247,500 258,750 270,000
Monetized Costs (Consumer time valued @ $14.61/Hour ...................... $3,287,250 $3,615,975 $3,780,338 $3,944,700
Voluntary registration by independent additional costs to upgrade their part of the sales process. For these
tire dealers. computer systems, with both initial manufacturers, we believe it may be
Under the proposed rule, independent startup costs and then costs for periodic possible to upgrade the sales system to
maintenance of the systems. We assume include automatic electronic registration
tire dealers could voluntarily register

tires for consumers, if this was that many independent tire dealers, on behalf of the purchaser. We do not
authorized by the tire manufacturer. especially the larger ones, already know the details of how this process
Dealers that did this would incur collect tire purchaser information as may work, which would be up to the
19 The median hourly rate among all occupations, Statistics; see http://www.bls.gov/oes/current/
May 2006, according to the Bureau of Labor oes_nat.htm#b00–0000.
tire manufacturer and the independent U.S., including 13,000 that are whether each tire manufacturer would
tire dealers. The process might also company-controlled dealers. The work directly with each independent
include companies designated by the remaining 46,000 tire dealers include tire dealer, or whether third party
tire manufacturers to provide services in 20,000 car and truck dealers and 26,000 designees would provide an interface
this area. We also do not know what independent tire dealers. service for all tire manufacturers and
actual startup and annual costs might be There are two unknowns for independent tire dealers. We note that
to independent tire dealers. However, third party designees could provide
estimating the cost impacts on
once these systems are installed, tire efficiencies of having a single contact
independent tire dealers—how many
registration rates would be 100 percent company that could be the interface for
independent dealers would voluntarily
for tires sold through these dealers. This an independent tire dealer and multiple
compares with overall current upgrade computer systems to register
tires, and what the cost of these tire manufacturers.
registration rates of 10 percent for tires
sold through independent dealers. computer systems would be in terms of We are providing cost estimates
The costs associated with voluntary initial cost and annual maintenance. assuming that 30 percent of
tire registration by independent tire Each year, a number of independent independent tire dealers would
dealers would be offset, or partially dealers will install or upgrade computer participate in such a voluntary program,
offset, by the fact that these dealers systems, and they continue to maintain with 10 percent beginning the first year
would no longer need to provide paper their systems in subsequent years. We (4,600 dealers), an additional 10 percent
forms to consumers, or fill out these will assume that an initial installation beginning the second year, and the third
forms with tire identification numbers. cost of providing an upgraded system is 10 percent beginning the third year.
The agency has estimated that there $750 and that annual maintenance These costs can be summarized as
are a total of 59,000 tire dealers in the thereafter is $200. We do not know follows:
Startup costs Annual

Year for computer maintenance Total cost
systems costs
2009 .................................................................................................................................................... $3.45 M ....... 0 .................. $3.45 M

2010 .................................................................................................................................................... 3.45 M ......... $0.92 M ....... 4.37 M
2011 .................................................................................................................................................... 3.45 M ......... 1.84 M ......... 5.29 M
2012 and Beyond ................................................................................................................................ 0 .................. 2.76 M ......... 2.76 M
Since the proposed rule, if made final, have a significant economic impact on car dealers’’ are classified under NAICS
would establish collection of a substantial number of small entities. Code 441110 with a size standard of
information procedures that would be The SBREFA amended the Regulatory average yearly sales of $24.5 million.
used entirely at the discretion of the tire Flexibility Act to require Federal ‘‘Used car dealers’’ are classified under
dealer, and the estimated paperwork agencies to provide a statement of the NAICS Code 441120 with a size
burdens of tire dealers electing to use factual basis for certifying that a rule standard of average yearly sales of $19.5
these procedures are not expected to will not have a significant economic million.
exceed $100 million annually, the impact on a substantial number of small In its February 27, 2006 comments to
agency does not consider this entities. NHTSA, NADA stated that of its
rulemaking to be ‘‘economically NHTSA has considered the effects of ‘‘20,000 franchised automobile and
significant,’’ as defined by E.O. 12866. this rulemaking action under the truck dealers who sell new and used
Thus, it has not prepared a full Regulatory Flexibility Act. As explained motor vehicles,’’ a ‘‘significant number
regulatory evaluation. above, NHTSA is proposing to amend are small businesses as defined by the
B. Regulatory Flexibility Act Part 574 by permitting collection of the SBA.’’ NADA did not specify the
names and addresses of first purchasers number that would be considered
Pursuant to the Regulatory Flexibility of new tires by internet and other ‘‘small businesses.’’ In the Federal
Act (5 U.S.C. 601, et seq., as amended computerized means. Electronic Register of March 21, 2007 (54 FR
by the Small Business Regulatory collection would be permitted in place 133440), we estimated the number of
Enforcement Fairness Act (SBREFA) of of paper forms. This regulatory independent tire dealers to be 26,000.
1996), whenever an agency is required flexibility analysis does not apply to Assuming all NADA members are small
to publish a notice of rulemaking for manufacturer-owned tire dealers, businesses, the total number of
any proposed or final rule, it must because they are not considered small independent tire dealers that are small
prepare and make available for public businesses under SBA’s affiliation rule businesses would be 46,000.
comment a regulatory flexibility at 5 CFR section 121.103(a)(1) which I hereby certify that if made final, this
analysis that describes the effect of the states in part: ‘‘Concerns and entities are proposed rule would not have a
rule on small entities (i.e., small affiliates of each other when one significant economic impact on a
businesses, small organizations, and controls or has the power to control the substantial number of small entities.
small governmental jurisdictions). The other * * *’’ The tire manufacturer The factual basis for the certification is
Small Business Administration’s either ‘‘controls or has the power to that if made final, this proposed rule
regulations at 13 CFR part 121 define a control’’ dealerships that it owns. would not substantively change existing
small business, in part, as a business Under SBA’s size standard regulations 49 CFR Part 574 requirements for small
entity ‘‘which operates primarily within (at 5 CFR Part 121), ‘‘tire dealers’’ are businesses that are independent tire
the United States.’’ (13 CFR classified under North American dealers. The electronic collection of
§ 121.105(a)). No regulatory flexibility Industry Classification System (NAICS) information procedures would be
analysis is required if the head of an Code 441320 with a size standard of voluntary for independent tire dealers.
agency certifies that the rule will not average yearly sales of $6 million. ‘‘New The statement on the paper form giving
Web site information about online other administrative proceeding before and distributors owned or controlled by
registration of new tires (and the paper they may file suit in court. a tire manufacturer to record the names
form itself) would be provided by the and addresses of retail purchasers of
F. Paperwork Reduction Act
tire manufacturer. If it chooses not to new tires and the identification
adopt electronic tire registration Under the Paperwork Reduction Act number(s) of the tires sold. A specific
procedures, the responsibilities of the of 1995, a person is not required to form is provided to tire dealers and
independent dealer would remain the respond to a collection of information distributors by tire manufacturers for
same, to pass out the paper forms to first by a Federal agency unless the recording this information. The
purchasers of new tires. collection displays a valid Office of completed forms are returned to the tire
Management and Budget (OMB) control manufacturers where they are retained
C. National Environmental Policy Act number. The proposed changes to the for not less than five years. Part 574
NHTSA has analyzed this rulemaking tire registration and recordkeeping rule, requires independent tire dealers and
action for the purposes of the National if made final, would be ‘‘collections of distributors to provide a registration
Environmental Policy Act. The agency information,’’ as that term is defined by form to consumers with the tire
has determined that implementation of OMB at 5 CFR 1320. Before an agency identification number already recorded
this action would not have any submits a proposed collection of and information identifying the dealer/
significant impact on the quality of the information to OMB for approval, it distributor. The consumer can then
human environment. must publish a document in the Federal record his/her name and address and
Register providing a 60-day comment return the form to the tire manufacturer.
D. Executive Order 13132 (Federalism) period and otherwise consult with These forms are also provided to tire
NHTSA has examined today’s members of the public and affected dealers and distributors by tire
proposal pursuant to Executive Order agencies concerning each proposed manufacturers. Additionally, motor
13132 (64 FR 43255, August 10, 1999) collection of information. The OMB has vehicle manufacturers are required to
and concluded that no additional promulgated regulations describing record the names and addresses of the
consultation with States, local what must be included in such a first purchasers (for purposes other than
governments or their representatives is document. Under OMB’s regulations (at resale), together with the identification
mandated beyond the rulemaking 5 CFR 1320.8(d)), an agency must ask numbers of the tires on the new
process. The agency has concluded that for public comment on the following: vehicles, and retain this information for
the proposal does not have federalism (i) Whether the proposed collection of not less than five years.
implications because, if made final, the information is necessary for the proper Description of the Need for the
rule would not have ‘‘substantial direct performance of the functions of the Information and the Proposed Use of
effects on the States, on the relationship agency, including whether the the Information: The information is
between the national government and information will have practical utility; used by a tire manufacturer after it or
the States, or on the distribution of (ii) The accuracy of the agency’s the agency determines that some of its
power and responsibilities among the estimate of the burden of the proposed tires either fail to comply with an
various levels of government.’’ collection of information, including the applicable safety standard or contain a
validity of the methodology and safety related defect. With the
If the proposed rule is made final, a
assumptions used; information, the tire manufacturer can
State requirement would be preempted notify the first purchaser of the tires and
(iii) How to enhance the quality,
if it conflicted with the rule. provide them with any necessary
utility, and clarity of the information to
E. Civil Justice Reform be collected; and information or instructions or remedy.
(iv) How to minimize the burden of Without this information, efforts to
With respect to the review of the the collection of information on those identify the first purchaser of tires that
promulgation of a new regulation, who are to respond, including the use have been determined to be defective or
section 3(b) of Executive Order 12988, of appropriate automated, electronic, nonconforming pursuant to Sections
‘‘Civil Justice Reform’’ (61 FR 4729, mechanical, or other technological 30118 and 30119 of Title 49 U.S.C.
February 7, 1996) requires that collection techniques or other forms of would be impeded. Further, the ability
Executive agencies make every information technology, e.g., permitting of the purchasers to take appropriate
reasonable effort to ensure that the electronic submission of responses. action in the interest of motor vehicle
regulation: (1) Clearly specifies the safety may be compromised.
In compliance with the requirements of
preemptive effect; (2) clearly specifies Description of the Likely Respondents
5 CFR part 1320, NHTSA requests
the effect on existing Federal law or (Including Estimated Number and
comment on the collection of
regulation; (3) provides a clear legal Proposed Frequency of Response to the
information that would be revised if this
standard for affected conduct, while Collection of Information):
NPRM were made final.
promoting simplification and burden Title: 49 CFR part 574, Tire March 21, 2007 Federal Register
reduction; (4) clearly specifies the Identification and Recordkeeping. Notice—In the 30-day notice
retroactive effect, if any; (5) adequately OMB Control Number: 2127–0050. announcing NHTSA’s request for an
defines key terms; and (7) addresses Requested Expiration Date of extension to collect the tire registration
other important issues affecting clarity Approval: Three years from date of last and recordkeeping information had
and general draftsmanship under any approval. been forwarded to OMB, we estimated
guidelines issued by the Attorney Type of Request: Extension of a that the collection of information affects
General. This document is consistent currently approved collection, with 10 million respondents annually. This
with that requirement. changes. group consists of approximately 20 tire

Pursuant to this Order, NHTSA notes Summary of the Collection of manufacturers, 59,000 new tire dealers
as follows. The preemptive effect of this Information: 49 U.S.C. 30117(b) requires and distributors, and 10 million
proposed rule is discussed above. each tire manufacturer to collect and consumers who choose to register their
NHTSA notes further that there is no maintain records of the first purchasers tire purchases with tire manufacturers.
requirement that individuals submit a of new tires. To carry out this mandate, A response is required by motor vehicle
petition for reconsideration or pursue 49 CFR part 574 requires tire dealers manufacturers upon each sale of a new
vehicle and by non-independent tire collection of information as follows: The Estimate of the Total Annual
dealers with each sale of a new tire. A publication ‘‘Modern Tire Dealer’’ Reporting and Recordkeeping Burden
consumer may elect to respond when reports that the tire industry’s annual Resulting from the Collection of
purchasing a new tire from an unit sales of new tires in the United Information:
independent dealer. States for the past three years were as March 21, 2007 Federal Register
Today’s Estimate Resulting From the follows: 2004—319 million; 2005—326
Notice—In the March 21, 2007 notice,
Proposed Collection of Information million; 2006—313 million. Thus, over
we provided the following estimated
Including Electronic Reporting—If made the past three years, the average sales of
final, today’s NPRM would affect the tires per year in the U.S. were roughly burden:
tire registration and recordkeeping 320 million.
New tire dealers and distributors ................................................................................................................................................... 59,000.

Consumers ........................................................................................................................................................................................ 10,000,000.
Total tire registrations (manually) .................................................................................................................................................. 54,000,000.
Total tire registration hours (manually) ......................................................................................................................................... 225,000 hours.
Recordkeeping hours (manually) .................................................................................................................................................... 25,000 hours.
Total annual tire registration and recordkeeping hours ............................................................................................................... 250,000 hours.
We note that with today’s proposed would be no change in format (i.e., that there are no voluntary consensus
rule, tire registration by purchasers going from electronic reporting to standards relevant to this rulemaking, as
would be facilitated by accommodating electronic storage), NHTSA believes the information to be collected and sent
electronic means. We believe that if there would be virtually no burden to tire manufacturers is needed only in
electronic registration were hours imposed in transferring the event of a tire recall. Accordingly,
accommodated, the response rate for information provided on a tire this proposed rule is in compliance with
purchasers may increase. Moreover, manufacturer’s Web site to a Section 12(d) of NTTAA.
some independent tire dealers may recordkeeping site. For these reasons,
H. Unfunded Mandates Reform Act
voluntarily register tires for consumers, NHTSA believes the recordkeeping
thereby resulting in a higher registration burden hours would remain at 25,000 Section 202 of the Unfunded
rate. hours. Mandates Reform Act of 1995 (UMRA)
Given that the various options we are NHTSA solicits comments on the requires Federal agencies to prepare a
proposing would be voluntary, we do proposed changes in the collection of written assessment of the costs, benefits,
not know to what extent they would be information associated with part 574 and other effects of proposed or final
utilized by independent tire dealers, tire and on NHTSA’s analysis of how the rules that include a Federal mandate
manufacturers and consumers. changes will affect the number of likely to result in the expenditure by
Therefore, based on the information that burden hours affecting the public. State, local or tribal governments, in the
is available, these are our estimates of Comments must refer to the docket and aggregate, or by the private sector, of
burden. notice numbers cited at the beginning of more than $100 million in any one year
The same information (name and this NPRM and be submitted to: Docket (adjusted for inflation with base year of
address of the purchaser) would be Operations, M–30, U.S. Department of 1995). Before promulgating a rule for
collected regardless of the format, paper Transportation, West Building, Ground which a written statement is needed,
form, or typing in information on a Floor, Rm. W12–140, 1200 New Jersey section 205 of the UMRA generally
company Web site. Because some Avenue, SE., Washington, DC 20590. requires NHTSA to identify and
people type faster and some people consider a reasonable number of
G. National Technology Transfer and regulatory alternatives and adopt the
write faster, NHTSA believes that the
Advancement Act least costly, most cost-effective, or least
amount of time it will take to provide
information about the name and address Section 12(d) of the National burdensome alternative that achieves
of the purchaser would be very roughly Technology Transfer and Advancement the objectives of the rule. The
the same, regardless of the format. To Act of 1995 (NTTAA), Public Law 104– provisions of section 205 do not apply
the extent more consumers registered 113, section 12(d) (15 U.S.C. 272) when they are inconsistent with
their tires, actual burdens realized could directs NHTSA to use voluntary applicable law. Moreover, section 205
thus increase concomitantly with the consensus standards in its regulatory allows NHTSA to adopt an alternative
higher registration rates. On the other activities unless doing so would be other than the least costly, most cost-
hand, it may be possible for tire inconsistent with applicable law or effective or least burdensome alternative
manufacturers and independent tire otherwise impractical. Voluntary if the agency publishes with the final
dealers to develop electronic systems, consensus standards are technical rule an explanation why that alternative
tied in with the systems used for standards (e.g., materials specifications, was not adopted.
monitoring inventory and recording test methods, sampling procedures, and This proposed rule would not result
sales information, that could business practices) that are developed or in the expenditure by State, local, or
automatically register the tires with the adopted by voluntary consensus tribal governments, in the aggregate, or
tire manufacturer at little additional standards bodies, such as the Society of by the private sector of more than $100
cost. Automotive Engineers (SAE). The million annually. Accordingly, the
NHTSA believes that virtually all NTTAA directs the agency to provide agency has not prepared an Unfunded
recordkeeping by tire manufacturers is Congress, through the OMB, Mandates assessment.
already done electronically. NHTSA explanations when we decide not to use
available and applicable voluntary I. Plain Language
estimates that it takes roughly 25,000
hours to transfer handwritten data to an consensus standards. Executive Order 12866 requires each
electronic format for storage. Because, After carefully reviewing the available agency to write all rules in plain
with Web site-based information, there information, NHTSA has determined language. Application of the principles
of plain language includes consideration • Federal eRulemaking Portal: Go to confidential business information
of the following questions: http://www.regulations.gov. Follow the regulation.22
—Have we organized the material to suit online instructions for submitting In addition, you should submit a
the public’s needs? comments. copy, from which you have deleted the
—Are the requirements in the rule • Mail: Docket Management Facility, claimed confidential business
clearly stated? M–30, U.S. Department of information, to the Docket by one of the
—Does the rule contain technical Transportation, West Building, Ground methods set forth above.
language or jargon that is not clear? Floor, Rm. W12–140, 1200 New Jersey
—Would a different format (grouping Will the Agency Consider Late
Avenue, SE., Washington, DC 20590. Comments?
and order of sections, use of headings, • Hand Delivery or Courier: West
paragraphing) make the rule easier to Building Ground Floor, Room W12–140, We will consider all comments
understand? 1200 New Jersey Avenue, SE., between received before the close of business on
—Would more (but shorter) sections be the comment closing date indicated
9 a.m. and 5 p.m. Eastern Time, Monday
better? above under DATES. To the extent
—Could we improve clarity by adding through Friday, except Federal holidays.
• Fax: (202) 493–2251. possible, we will also consider
tables, lists, or diagrams? comments received after that date.
—What else could we do to make this If you are submitting comments
Therefore, if interested persons believe
rulemaking easier to understand? electronically as a PDF (Adobe) file, we
that any new information the agency
If you have any responses to these ask that the documents submitted be
places in the docket affects their
questions, please include them in your scanned using Optical Character
comments, they may submit comments
comments on this NPRM. Recognition (OCR) process, thus
after the closing date concerning how
allowing the agency to search and copy
J. Regulation Identifier Number (RIN) the agency should consider that
certain portions of your submissions.21
The Department of Transportation information for the final rule.
Please note that pursuant to the Data If a comment is received too late for
assigns a regulation identifier number Quality Act, in order for substantive
(RIN) to each regulatory action listed in us to consider in developing a final rule
data to be relied upon and used by the (assuming that one is issued), we will
the Unified Agenda of Federal agency, it must meet the information
Regulations. The Regulatory Information consider that comment as an informal
quality standards set forth in the OMB suggestion for future rulemaking action.
Service Center publishes the Unified and DOT Data Quality Act guidelines.
Agenda in April and October of each Accordingly, we encourage you to How Can I Read the Comments
year. You may use the RIN contained in consult the guidelines in preparing your Submitted By Other People?
the heading at the beginning of this comments. OMB’s guidelines may be
document to find this action in the You may read the materials placed in
accessed at http://www.whitehouse.gov/ the docket for this document (e.g., the
Unified Agenda. omb/fedreg/reproducible.html. DOT’s comments submitted in response to this
K. Privacy Act guidelines may be accessed at http:// document by other interested persons)
dmses.dot.gov/submit/ at any time by going to http://
Anyone is able to search the
DataQualityGuidelines.pdf. www.regulations.gov. Follow the online
electronic form of all comments
received into any of our dockets by the How Can I Be Sure That My Comments instructions for accessing the dockets.
name of the individual submitting the Were Received? You may also read the materials at the
comment (or signing the comment, if Docket Management Facility by going to
submitted on behalf of an association, If you submit your comments by mail the street address given above under
business, labor union, etc.). You may and wish Docket Management to notify ADDRESSES. The Docket Management
review DOT’s complete Privacy Act you upon its receipt of your comments, Facility is open between 9 a.m. and 5
Statement in the Federal Register enclose a self-addressed, stamped p.m. Eastern Time, Monday through
published on April 11, 2000 (65 FR postcard in the envelope containing Friday, except Federal holidays.
19477 at 19478) or you may visit your comments. Upon receiving your
comments, Docket Management will List of Subjects in 49 CFR Part 574
http://docketsinfo.dot.gov/.
return the postcard by mail. Labeling, Motor vehicle safety,
V. Public Participation
How Do I Submit Confidential Business Reporting and recordkeeping
How Do I Prepare and Submit Information? requirements, and Tires.
Comments? In consideration of the foregoing,
If you wish to submit any information NHTSA proposes to amend 49 CFR part
Your comments must be written and under a claim of confidentiality, you
in English. To ensure that your 574 as follows:
should submit three copies of your
comments are correctly filed in the complete submission, including the
Docket, please include the docket PART 574—TIRE IDENTIFICATION AND
information you claim to be confidential RECORDKEEPING
number of this document in your business information, to the Chief
comments. Your comments must not be Counsel, NHTSA, at the address given 1. The authority for part 574
more than 15 pages long.20 We above under FOR FURTHER INFORMATION continues to read as follows:
established this limit to encourage you CONTACT. When you send a comment Authority: 49 U.S.C. 322, 30111, 30115,
to write your primary comments in a containing information claimed to be 30117 and 30166; delegation of authority at
concise fashion. However, you may confidential business information, you 49 CFR 1.50.
attach necessary additional documents should include a cover letter setting

to your comments. There is no limit on 2. Section 574.7 is amended by
forth the information specified in our revising paragraphs (a)(2) and (a)(3) and
the length of the attachments.
Please submit your comments by any adding new paragraphs (e) and (f) to
21 Optical character recognition (OCR) is the
of the following methods: read as follows:
process of converting an image of text, such as a
scanned paper document or electronic fax file, into
20 See 49 CFR § 553.21. computer-editable text. 22 See 49 CFR 512.
§ 574.7 Information requirements—tire dealers pursuant to paragraph (a)(1) of (A) The purchaser’s name and
manufacturers, new tire brand name this section must contain space for address,
owners. recording the information specified in (B) The entire tire identification
(a)(1) * * * paragraphs (a)(4)(i) through (a)(4)(iii) of number of the tire(s) sold or leased to
(2) Each tire registration form this section. Each form must include: the tire purchaser, and
provided to independent distributors (A) A statement indicating where the (C) The distributor’s or dealer’s name
and dealers pursuant to paragraph (a)(1) form should be returned, including the and street address. In lieu of the street
of this section shall contain space for name and mailing address of the address, and if one is available, the
recording the information specified in manufacturer or its designee. distributor or dealer’s e-mail address or
paragraphs (a)(4)(i) through (a)(4)(iii) of (B) The tire manufacturers’ logo or Web site may be recorded. Other means
this section. Each form shall: other identification, if the manufacturer of identifying the distributor or dealer
(i) Have the following physical is not identified as part of the statement known to the manufacturer may also be
characteristics: indicating where the form should be used.
(A) Be rectangular; returned. (iii) If authorized by the tire
(B) Be not less than 31⁄2 inches high, (C) The statement: ‘‘IMPORTANT: manufacturer, electronically transmit
5 inches long, and 0.007 inches thick; FEDERAL LAW REQUIRES TIRE the following information on the tire
(C) Be not more than 41⁄4 inches high, IDENTIFICATION NUMBERS MUST BE registration form to the tire
or more than 6 inches long, or greater REGISTERED’’. manufacturer, or its designee, using
than 0.016 inch thick. (D) In the top right corner, the phrase secure means (e.g., https on the web), at
(ii) On the address side of the form, ‘‘OMB Control No. 2127–0050’’. no charge to the tire purchaser and
be addressed with the name and address * * * * * within 30 days of the date of sale or
of the manufacturer or its designee, and (e) Tire manufacturers may lease:
include, in the upper right hand corner, voluntarily provide means for tire (A) The purchaser’s name and
the statement ‘‘Affix a postcard stamp.’’ registration via the internet, by address,
(iii) On the other side of the form: telephone or other electronic means. (B) The entire tire identification
(A) Include the tire manufacturer’s (f) Each tire manufacturer shall meet number of the tire(s) sold or leased to
name, unless it appears on the address the requirements of paragraphs (b), (c) the tire purchaser, and
side of the form; and (d) of this section with respect to
(B) Include a statement explaining the (C) The distributor’s or dealer’s name
tire registration information submitted and street address. In lieu of the street
purpose of the form and how a to it or its designee by any means
consumer may register tires. The address, and if one is available, the
authorized by the manufacturer in distributor or dealer’s e-mail address or
statement shall: addition to the use of registration forms.
(1) Include the heading Web site may be recorded. Other means
3. Section 574.8 is revised to read as of identifying the distributor or dealer
‘‘IMPORTANT’’. follows:
(2) Include the sentence: ‘‘In case of known to the manufacturer may also be
a recall, we can reach you only if we § 574.8 Information requirements—tire used.
have your name and address.’’ distributors and dealers. (2) Each independent distributor or
(3) Indicate that sending in the card (a) Independent distributors and dealer that complies with paragraph
will add a person to the manufacturer’s dealers. (a)(1)(i) or (ii) of this section shall use
recall list. (1) Each independent distributor and either the tire registration forms
(4) If a tire manufacturer provides a each independent dealer selling or provided by the tire manufacturers
Web site where its tires can be leasing new tires to tire purchasers or pursuant to § 574.7(a) or registration
registered, it may (but is not required to) lessors (hereinafter referred to in this forms obtained from another source.
include the following sentence: ‘‘Instead section as ‘‘tire purchasers’’) shall Paper forms obtained from other sources
of mailing this form, you can register comply with paragraph (a)(1)(i), (a)(1)(ii) must comply with the requirements
online at [insert tire manufacturer’s or (a)(1)(iii) of this section: specified in § 574.7(a) for forms
registration Web site address].’’ (i) At the time of sale or lease of the provided by tire manufacturers to
(5) Include the sentence: ‘‘Do it tire, provide each tire purchaser with a independent distributors and dealers.
today.’’ paper tire registration form on which (3) Multiple tire sales or leases by the
(C) Include space for recording tire the distributor or dealer has recorded same tire purchaser may be recorded on
identification numbers for six tires. the following information: a single paper registration form or in a
(D) Use shading to distinguish (A) The entire tire identification single Web site transaction.
between areas of the form to be filled in number of the tire(s) sold or leased to (4) Each independent distributor or
by sellers and customers. the tire purchaser, and dealer that is complying with paragraph
(1) Include the statement: ‘‘Shaded (B) The distributor’s or dealer’s name (a)(1)(iii) with respect to a sale or lease
areas must be filled in by seller.’’ and street address. In lieu of the street shall include a statement to that effect
(2) The areas of the form for recording address, and if one is available, the on the invoice for that sale or lease and
tire identification numbers and distributor or dealer’s e-mail address or provide the invoice to the tire
information about the seller of the tires Web site may be recorded. Other means purchaser.
must be shaded. of identifying the distributor or dealer (b) Other distributors and dealers.
(3) The area of the form for recording known to the manufacturer may also be (1) Each distributor and each dealer,
the customer name and address must used. other than an independent distributor or
not be shaded. (ii) Record the following information dealer, selling new tires to tire
(D) Include, in the top right corner, on a paper tire registration form and purchasers:
the phrase ‘‘OMB Control No. 2127– return it to the tire manufacturer, or its (i) shall submit, using paper
0050’’. designee, on behalf of the tire purchaser, registration forms or, if authorized by
(3) Each tire registration form at no charge to the tire purchaser and the tire manufacturer, secure electronic
provided to distributors and dealers that within 30 days of the date of sale or means, the information specified in
are not independent distributors or lease: § 574.7(a)(4) to the manufacturer of the
tires sold, or to the manufacturer’s respective tire manufacturers or their group of tires when so directed by a
designee. designees. notification issued pursuant to 49 U.S.C.
(ii) shall submit the information (c) Each distributor and each dealer Section 30118,
specified in § 574.7(a)(4) to the tire selling new tires to other tire Notification of defects and
manufacturer or the manufacturer’s distributors or dealers shall supply to noncompliance.
designee, not less often than every 30 the distributor or dealer a means to 4. In Part 574, Figures 3a, 3b and 4 are
days. A distributor or dealer selling record the information specified in removed.
fewer than 40 tires of all makes, types § 574.7(a)(4), unless such means has
and sizes during a 30 day period may Issued on: January 16, 2008.
been provided to that distributor or
wait until a total of 40 new tires is sold. dealer by another person or by a Stephen R. Kratzke,
In no event may more than six months manufacturer. Associate Administrator for Rulemaking.
elapse before the § 574.7(a)(4) (d) Each distributor and each dealer [FR Doc. E8–1099 Filed 1–23–08; 8:45 am]
information is forwarded to the shall immediately stop selling any BILLING CODE 4910–59–P

Proposed Rule: Tire Registration and Recordkeeping

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Proposed Rule: Tire Registration and Recordkeeping

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Federal Register / Vol. 73, No.

16 / Thursday, January 24, 2008 / Proposed Rules 4157

provide the form to first purchasers with * * * considering revisions to update 49

procedures necessary to enable systems in place to register the tires as

Consumer Hour Burden Estimates:

tire dealers could voluntarily register

Startup costs Annual

2009 .................................................................................................................................................... $3.45 M ....... 0 .................. $3.45 M

with that requirement. changes. group consists of approximately 20 tire

New tire dealers and distributors ................................................................................................................................................... 59,000.

attach necessary additional documents should include a cover letter setting

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