[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Rules and Regulations]
[Page 69397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32036]
[[Page 69397]]
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FEDERAL TRADE COMMISSION
16 CFR Part 4
Privacy Act of 1974; Implementation
AGENCY: Federal Trade Commission (FTC).
ACTION: Final rule amendment.
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SUMMARY: The FTC amends its Privacy Act rules to include a new exempt
system of records that will be used to compile and maintain identity
theft complaint data. This system implements the requirements of the
Identity Theft and Assumption Deterrence Act of 1998. The exemption
will help prevent individuals suspected of engaging in identity theft
from obtaining access to complaint data.
DATES: This amendment is final and effective on December 13, 1999.
FOR FURTHER INFORMATION CONTACT: Alex Tang, Attorney, Office of the
General Counsel, FTC, 600 Pennsylvania Avenue, NW, Washington, DC
20580, (202) 326-2447. For more information about the Commission's
identity theft program, contact Beth Grossman, (202) 326-3019, or
Joanna Crane, (202) 326-3258, Attorneys, Division of Planning &
Information, Bureau of Consumer Protection, FTC, 600 Pennsylvania
Avenue, NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: On October 27, 1999, in accordance with the
Privacy Act of 1974, as amended, 5 U.S.C. 552a, the Commission
published notice of its intent to establish a new agency system of
records, entitled FTC-IV-2, ``Identity Theft Complaint Management
System'FTC,'' and sought public comment on a proposed amendment of the
Commission's rules to exempt the system from certain provisions of the
Act. See 64 FR 57887 (system notice), 57825 (notice of proposed
rulemaking to amend Commission Rule 4.13(m), 16 CFR 4.13(m)). The
system of records will enable the FTC to fulfill its statutory
responsibilities under section 5 of the Identity Theft and Assumption
Deterrence Act of 1998, Public Law 105-318, 112 Stat. 3007, 3010, 18
U.S.C. 1028 note (``ITADA''). The ITADA designates the FTC to serve as
a clearinghouse for the receipt and referral of identity theft
complaints and requires that the FTC establish procedures: (1) To log
and acknowledge receipt of complaints from individuals who certify that
they have a reasonable belief that one or more of their means of
identification have been assumed, stolen, or otherwise unlawfully
acquired in violation of the statute; (2) to provide informational
materials to such individuals; and (3) to refer such complaints to
``appropriate entities.'' Under the statute, these entities include,
but are not limited to, the three major national consumer reporting
agencies (i.e., currently Equifax, Experian and Trans Union) and
appropriate law enforcement agencies for potential law enforcement
action.
As explained in the Commission's notice of the proposed rulemaking,
the Commission believes that the identity theft complaint data
contained in the system must be exempted under the Privacy Act to
prevent certain categories of individuals (e.g., targets of identity
theft complaints or investigations), to the extent they are covered by
the system, from invoking the Act to obtain access to complaint files
that may pertain to their activities. A principal purpose for compiling
these complaint files is for law enforcement, since these complaints
focus on specific instances of suspected illegal identity theft. In
many cases, these complaints will be referred to other law enforcement
authorities, as contemplated by the ITADA, and in certain cases, may
also be relevant to Commission investigations. Under these
circumstances, disclosure of the complaint file to a target would harm
or otherwise interfere with law enforcement efforts. For example, if
the complaint data were not exempted from access, a target could
anticipate and evade prosecution by learning about actual or potential
law enforcement referrals, investigations, or other actions from
information maintained in the complaint file. Such access to the file
could also inadvertently facilitate further identity theft or
retaliation by enabling the target to ascertain or confirm sensitive
personal information submitted by and being maintained about the
identity theft victim or about other informants.
The Commission received no comments in response to its proposed
exemption of the system. Accordingly, for the reasons set forth above,
the Commission is amending Commission Rule 4.13(m), 16 CFR 4.13(m), to
add the system to its inventory of systems that are exempt under
subsection (k)(2) of the Privacy Act, 5 U.S.C. 552a(k)(2). The
Commission, however, reserves the sole discretion to permit certain
categories of individuals (e.g., complainants or other individual
informants) whose records are covered by the system to obtain access to
information that was provided by such individuals in order to correct,
update or verify the accuracy of that information or for other related
purposes.
The Commission certifies that this rule amendment does not have a
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et
seq.
List of Subjects in 16 CFR Part 4
Administrative practice and procedure, Freedom of Information,
Privacy, Records, Sunshine Act.
For the reasons stated in the preamble, the Federal Trade
Commission amends 16 CFR chapter I as follows:
PART 4--MISCELLANEOUS RULES
1. The authority for part 4 continues to read:
Authority: 15 U.S.C. 46, unless otherwise noted.
2. Amend Sec. 4.13 by revising paragraph (m)(2) to read as follows:
Sec. 4.13 Privacy Act rules.
* * * * *
(m) * * *
(2) Pursuant to 5 U.S.C. 552a(k)(2), investigatory materials
compiled for law enforcement purposes in the following systems of
records are exempt from subsections (c)(3), (d), (e)(1), (e)(4)(G),
(H), and (I), and (f) of 5 U.S.C. 552a, and from the provisions of this
section, except as otherwise provided in 5 U.S.C. 552a(k)(2):
Investigational, Legal, and Public Records--FTC
Disciplinary Action Investigatory Files--FTC
Clearance to Participate Applications and the Commission's Responses
Thereto, and Related Documents--FTC
Management Information System--FTC
Office of the Secretary Control and Reporting System--FTC
Office of Inspector General Investigative Files--FTC
Stenographic Reporting Service Requests--FTC
Identity Theft Complaint Management System--FTC
Freedom of Information Act Requests and Appeals--FTC
Privacy Act Requests and Appeals--FTC
Information Retrieval and Indexing System--FTC
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-32036 Filed 12-10-99; 8:45 am]
BILLING CODE 6750-01-P