[Federal Register Volume 78, Number 122 (Tuesday, June 25, 2013)]
[Notices]
[Pages 38039-38041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15089]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice.

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SUMMARY: The FTC intends to ask the Office of Management and Budget 
(``OMB'') to extend through November 30, 2016, the current Paperwork 
Reduction Act (``PRA'') clearance for the FTC's enforcement of the 
information collection requirements in its Prescreen Opt-Out Notice 
Rule (``Prescreen Opt-Out Rule'' or ``FTC Rule''), which applies to 
certain motor vehicle dealers, and its shared enforcement with the 
Consumer Financial Protection Bureau (``CFPB'') of the provisions 
(subpart F) of the CFPB's Regulation V regarding other entities (``CFPB 
Rule''). That clearance expires on November 30, 2013.

DATES: Comments must be filed by August 26, 2013.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form by following the instructions in the 
Request for Comment part of the SUPPLEMENTARY INFORMATION section 
below. Comments in electronic form should be submitted by using the 
following weblink: https://public.commentworks.com/ftc/prescreenoptoutpra (and following the instructions on the web-based 
form). Comments filed in paper form should be mailed or delivered to 
the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW, 
Washington, DC 20580, in the manner detailed in the SUPPLEMENTARY 
INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Karen Jagielski, Attorney, Division of Privacy 
and Identity Protection, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW., NJ-8100, Washington, DC 20580, 
(202) 326-2509.

SUPPLEMENTARY INFORMATION: On July 21, 2010, President Obama signed 
into law the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act'').\1\ The Dodd-Frank Act substantially changed the 
federal legal framework for financial services providers. Among the 
changes, the Dodd-Frank Act transferred to the CFPB most of the FTC's 
rulemaking authority for the prescreen opt-out provisions of the Fair 
Credit Reporting Act (``FCRA''),\2\ on July 21, 2011.\3\ For certain 
other portions of the FCRA, the FTC retains its full rulemaking 
authority.\4\
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    \1\ Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ 15 U.S.C. 1681 et seq.
    \3\ Dodd-Frank Act, at section 1061. This date was the 
``designated transfer date'' established by the Treasury Department 
under the Dodd-Frank Act. See Dep't of the Treasury, Bureau of 
Consumer Financial Protection; Designated Transfer Date, 75 FR 
57252, 57253 (Sept. 20, 2010); see also Dodd-Frank Act, at section 
1062.
    \4\ The Dodd-Frank Act does not transfer to the CFPB rulemaking 
authority for FCRA sections 615(e) (``Red Flag Guidelines and 
Regulations Required'') and 628 (``Disposal of Records''). See 15 
U.S.C. 1681s(e); Public Law 111-203, section 1088(a)(10)(E). 
Accordingly, the Commission retains full rulemaking authority for 
its ``Identity Theft Rules,'' 16 CFR Part 681, and its rules 
governing ``Disposal of Consumer Report Information and Records,'' 
16 CFR Part 682. See 15 U.S.C. 1681m, 1681w.
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    The FTC retains rulemaking authority for its Prescreen Opt-Out 
Rule, 16 CFR Part 642, solely for motor vehicle dealers described in 
section 1029(a) of the Dodd-Frank Act that are predominantly engaged in 
the sale and servicing of motor vehicles, the leasing

[[Page 38040]]

and servicing of motor vehicles, or both.\5\
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    \5\ See Dodd-Frank Act, at section 1029 (a), (c).
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    On December 21, 2011, the CFPB issued its interim final FCRA rule, 
including the prescreen opt-out provisions (subpart F) of CFPB's 
Regulation V.\6\ Contemporaneous with that issuance, the CFPB and FTC 
had each submitted to OMB, and received its approval for, the agencies' 
respective burden estimates reflecting their overlapping enforcement 
jurisdiction, with the FTC supplementing its estimates for the 
enforcement authority exclusive to it regarding the class of motor 
vehicle dealers noted above. The discussion in the Burden Statement 
below, following preliminary background information, continues that 
analytical framework, as appropriately updated or otherwise refined for 
instant purposes.
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    \6\ 76 FR 79308 (Dec. 21, 2011). Subpart F of the interim final 
rule became effective on December 30, 2011, and is codified at 12 
CFR 1022.54.
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Background

    Section 615(d) of the Fair Credit Reporting Act (``FCRA''), 15 
U.S.C. 1681m(d)(1), requires that any person who uses a consumer report 
in order to make an unsolicited firm offer of credit or insurance to 
the consumer, shall provide with each written solicitation a clear and 
conspicuous statement that:

(A) information contained in the consumer's consumer report was used 
in connection with the transaction; (B) the consumer received the 
offer of credit or insurance because the consumer satisfied the 
criteria for credit worthiness or insurability under which the 
consumer was selected for the offer; (C) if applicable, the credit 
or insurance may not be extended if, after the consumer responds to 
the offer, the consumer does not meet the criteria used to select 
the consumer for the offer or any applicable criteria bearing on 
credit worthiness or insurability or does not furnish any required 
collateral; (D) the consumer has a right to prohibit information 
contained in the consumer's file with any consumer reporting agency 
from being used in connection with any credit or insurance 
transaction that is not initiated by the consumer; and (E) the 
consumer may exercise the right referred to in subparagraph (D) by 
notifying a notification system established under section 604(e) [of 
the FCRA].

    Section 615(d)(1) of the FCRA [15 U.S.C. 1681m(d)(1)].
    Section 615(d) of the FCRA requires further that the disclosure 
statement ``be presented in such format and in such type size and 
manner as to be simple and easy to understand, as established by the 
[CFPB], by rule, in consultation with the [FTC], Federal banking 
agencies and the National Credit Union Administration.''
    Section 642.3 of the FTC Rule \7\ and section 1022.54 \8\ of the 
CFPB Rule implement this requirement by establishing a ``layered'' 
notice approach that requires a short, simple, and easy-to-understand 
statement of consumers' opt-out rights on the first page of the 
prescreened solicitation, along with a longer statement containing 
additional details elsewhere in the solicitation. Specifically, the 
Rule required that a short notice be placed on the front side of the 
first page of the principal promotional document in the solicitation, 
or, if provided electronically, on the same page and in close proximity 
to the principal marketing message. The Rule specifies that the type 
size be larger than the type size of the principal text on the same 
page, but in no event smaller than 12-point type, or if provided by 
electronic means, then reasonable steps shall be taken to ensure that 
the type size is larger than the type size of the principal text on the 
same page. The Rule further provides that the long notice, that appears 
elsewhere in the solicitation, be in a type size that is no smaller 
than the type size of the principal text on the same page, but in no 
event smaller than 8-point type. The long notice shall begin with a 
heading in capital letters and underlined, and identifying the long 
notice as the ``PRESCREEN & OPT-OUT NOTICE'' in a type style that is 
distinct from the principal type style used on the same page and be set 
apart from other text on the page. The Rule also includes model notices 
in English and Spanish.
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    \7\ 16 CFR 642.3.
    \8\ 12 CFR 1022.54.
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Burden Statement

    Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must get OMB 
approval for each collection of information they conduct or sponsor. 
``Collection of information'' includes agency requests or requirements 
to submit reports, keep records, or provide information to a third 
party. 44 U.S.C. 3502(3); 5 CFR 1320.3(c). The FTC is seeking clearance 
for its assumed share of the estimated PRA burden regarding the 
disclosure requirements under the FTC and CFPB Rules.
    The currently cleared FTC apportionment of its share of PRA burden 
\9\ is the following:
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    \9\ OMB Control No. 3084-0132.

    Total Number of Respondents: 487
    Total Burden Hours: 974
    Total Labor Costs: $243,750
    Total Capital/Non-Labor Costs: $0

    These figures were determined as follows:

A. Number of Respondents

    FTC staff estimates that between 500 and 750 entities make 
prescreened solicitations. Staff conservatively assumed the high-end of 
this range for further apportioning. From the total of 750 respondents, 
FTC staff assumed a 30% ``carve-out'' \10\ to the FTC for the above-
noted motor vehicle dealers. This resulted in an estimate of 225 motor 
vehicle dealers subject to the FTC's jurisdiction. After deducting the 
latter figure from the total of 750 respondents, that left 525 
respondents to divide 50:50 between the agencies. With rounding, the 
FTC apportioned 262 of those respondents to its burden estimates; 
adding to that the estimated total of 225 motor vehicle dealers 
resulted in 487 respondents for the FTC.
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    \10\ For purposes of estimating its motor vehicle dealer 
furnisher carve-out, the FTC has assumed that 30% of the respondents 
constitute the number of motor vehicle dealers over which the FTC 
retains exclusive jurisdiction under the Dodd-Frank Act. To derive 
this 30% estimate, FTC staff divided an estimated number of car 
dealers--55,417 (based on industry data for the number of franchise/
new car and independent/used car dealers) by 199,500 (Commission 
staff's PRA estimate of the number of entities that extend credit to 
consumers subject to FTC jurisdiction under the FCRA, pre-Dodd-
Frank, for the Risk-Based Pricing regulations, as detailed at 75 FR 
2724, 2748 n.18 (Jan. 15, 2010)). This came out to 28%. Staff 
increased this amount to 30% to account for other motor vehicle 
dealer types (motorbikes, boats, other recreational) also covered 
within the definition of ``motor vehicle dealer'' under section 
1029(a) of the Dodd-Frank Act.
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B. FTC Share of Burden Hours: 974 hours

    Staff assumed that respondents will each spend approximately 2 
hours to monitor compliance with the Rule. Thus, 487 respondents for 
the FTC multiplied by the two hour estimate per respondent resulted in 
974 burden hours apportioned to the FTC.

C. FTC Share of Labor Costs: $243,750

    Staff assumed that in-house legal counsel for respondents would 
handle most of the compliance review, and at an estimated average 
hourly wage of $250 per hour.

D. Capital/Non-Labor Costs: $0

    Assumption: Capital and other non-labor costs should be minimal, at 
most, since the Rule has been in effect several years, with covered 
entities now equipped to provide the required notice.
    Based on staff's review of industry data and its experience in this 
area, we have no information to suggest that these figures are not 
still valid.

[[Page 38041]]

Request for Comment

    Interested parties are invited to submit written comments. Comments 
should refer to ``Prescreen Opt-Out Disclosure Rule: FTC File No. 
P075417'' to facilitate the organization of comments. Please note that 
your comment--including your name and your state--will be placed on the 
public record of this proceeding, including on the publicly accessible 
FTC Web site, at http://www.ftc.gov/os/publiccomments.shtm.
    Because comments will be made public, they should not include any 
sensitive personal information, such as any individual's Social 
Security Number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include ``[t]rade secret or any 
commercial or financial information which is obtained from any person 
and which is privileged or confidential'' as provided in Section 6(f) 
of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and 
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for 
which confidential treatment is requested must be filed in paper form, 
must be clearly labeled ``Confidential,'' and must comply with FTC Rule 
4.9(c).\11\
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    \11\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted using the following weblink https://public.commentworks.com/ftc/prescreenoptoutpra (and following the instructions on the web-based 
form). To ensure that the Commission considers an electronic comment, 
you must file it on the web-based form at the weblink https://public.commentworks.com/ftc/prescreenoptoutpra. If this Notice appears 
at www.regulations.gov/search/index.jsp, you may also file an 
electronic comment through that Web site. The Commission will consider 
all comments that regulations.gov forwards to it.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives, whether filed in paper or 
electronic form. Comments received will be available to the public on 
the FTC Web site, to the extent practicable, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the FTC makes every 
effort to remove home contact information for individuals from the 
public comments it receives before placing those comments on the FTC 
Web site. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.shtm.
    Under the PRA, 44 U.S.C. 3501-3521, federal agencies must obtain 
approval from OMB for each collection of information they conduct or 
sponsor. ``Collection of information'' means agency requests or 
requirements that members of the public submit reports, keep records, 
or provide information to a third party. 44 U.S.C. 3502(3); 5 CFR 
1320.3(c). As required by section 3506(c)(2)(A) of the PRA, the FTC is 
providing this opportunity for public comment before requesting that 
OMB extend the existing paperwork clearance for the regulations noted 
herein.
    Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) Whether the disclosure requirements are necessary, 
including whether the information will be practically useful; (2) the 
accuracy of our burden estimates, including whether the methodology and 
assumptions used are valid; (3) how to improve the quality, utility, 
and clarity of the disclosure requirements; and (4) how to minimize the 
burden of providing the required information to consumers. All comments 
should be filed as prescribed in the ADDRESSES section above, and must 
be received on or before August 26, 2013.

John F. Daly,
Acting General Counsel.
[FR Doc. 2013-15089 Filed 6-24-13; 8:45 am]
BILLING CODE 6750-01-P