[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Pages 11108-11110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04235]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

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 for an additional three years the current Paperwork 
Reduction Act (``PRA'') clearance for the FTC's enforcement of the 
information collection requirements in its ``Fair Credit Reporting 
Risk-Based Pricing Regulations'' (``RBP Rule''), which applies to 
certain motor vehicle dealers, and its shared enforcement with the 
Consumer Financial Protection Bureau (``CFPB'') of the risk-based 
pricing provisions (subpart H) of the CFPB's Regulation V regarding 
other entities. That clearance expires on August 31, 2014.

DATES: Comments must be filed by April 28, 2014.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``RBP Rule, PRA Comment, 
P145403,'' on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/rbprulepra by following the instructions 
on the web-based form. If you prefer to file your comment on paper, 
mail or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Room H-113 (Annex J), 600 
Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Katherine White, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, (202) 
326-2878, 600 Pennsylvania Ave. NW., Room NJ-3158, Washington, DC 
20580.

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 risk-based pricing provisions of the Fair 
Credit Reporting Act (``FCRA''),\2\ on July 21, 2011.\3\
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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, Sec.  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, Sec.  1062.
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    The FTC retains rulemaking authority for the RBP Rule solely for 
motor vehicle dealers described in section 1029(a) of the Dodd-Frank 
Act that are

[[Page 11109]]

predominantly engaged in the sale and servicing of motor vehicles, the 
leasing and servicing of motor vehicles, or both.\4\
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    \4\ See Dodd-Frank Act, Sec.  1029(a), (c).
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    In addition, the FTC retains its authority to enforce the risk-
based pricing provisions of the FCRA and the FTC and CFPB rules issued 
under those provisions. Thus, the FTC and CFPB have overlapping 
enforcement authority for many entities subject to the CFPB rule and 
the FTC has sole enforcement authority for the motor vehicle dealers 
subject to the FTC rule.
    On December 21, 2011, the CFPB issued its interim final FCRA rule, 
including the risk-based pricing provisions (subpart H) of CFPB's 
Regulation V.\5\ 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 below continues that 
analytical framework, as appropriately updated or otherwise refined for 
instant purposes.
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    \5\ 76 FR 79308 (Dec. 21, 2011).
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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.
    Under Sec. Sec.  640.3-640.4 of the FTC's RBP Rule \6\ and 
Sec. Sec.  1022.72-1022.73 of the CFPB Rule,\7\ a creditor must provide 
a risk-based pricing notice to a consumer when the creditor uses a 
consumer report to grant or extend credit to the consumer on material 
terms that are materially less favorable than the most favorable terms 
available to a substantial proportion of consumers from or through that 
creditor. Additionally, these provisions require disclosure of credit 
scores and information relating to credit scores in risk-based pricing 
notices if a credit score of the consumer is used in setting the 
material terms of credit.
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    \6\ 16 CFR 640.3, -640.4.
    \7\ 12 CFR 1022.72, -1022.73.
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    The FTC's currently cleared burden totals, post-adjustment for the 
effects of the Dodd-Frank Act, are 13,319,471 hours.\8\ The past burden 
analysis, however, was tied to the inception of the Rule and its later 
amendments, and included one-time burdens attributable to 
implementation. The FTC's updated estimate of burden hours reflects 
solely the recurring burden of complying with the Rule.
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    \8\ OMB Control No. 3084-0145.
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    Using the currently cleared estimates (post-adjustment for the 
effects of the Dodd-Frank Act) for the number of applicable motor 
vehicle dealers and their assumed recurring disclosure burdens, in 
addition to the estimated number of and burden for other entities over 
which the FTC shares enforcement burden with the CFPB, the FTC proposes 
the following:
    A. Estimated number of respondents: 160,875.\9\
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    \9\ This estimate derives in part from an analysis of the 
figures obtained from the North American Industry Classification 
System (NAICS) Association's database of U.S. businesses. See http://www.naics.com/search.htm. Commission staff identified categories of 
entities under its jurisdiction that also directly provide credit to 
consumers. Those categories include retail, vehicle dealers, 
consumer lenders, and utilities. The estimate also includes state-
chartered credit unions, which are subject to the Commission's 
jurisdiction. See 15 U.S.C. 1681s. For the latter category, 
Commission staff relied on estimates from the Credit Union National 
Association for the number of non-federal credit unions. See http://www.ncua.gov/Legal/Documents/Reports/AR2012.pdf. For purposed of 
estimating the burden, Commission staff made the conservative 
assumption that all of the included entities engage in risk-based 
pricing. The resulting tally of entities numbered 199,500. From this 
amount, the FTC deducted an estimated portion attributable to motor 
vehicle dealers in order to calculate a net amount in which to split 
evenly with the CFPB for the remaining number of respondents for 
purposes of estimating the FTC's overall share of PRA burden. The 
FTC estimated there were 122,250 motor vehicle dealers, determined 
as follows: 111,136 car dealers per NAICS data (57,535 new car 
dealers, 53,601 used car dealers) + 10% add-on approximation for 
other motor vehicle types (motorbikes, boats, other recreational). 
Excluding the estimated number of motor vehicle dealers, 122,250, 
from the estimated overall number of affected entities, 199,500, 
leaves 77,250 as the number of respondents for the agencies' 50:50 
apportionment: 77,250, i.e., about 38,625 each. Thus, for the FTC, 
the estimated number of respondents for its calculations is 160,875 
(122,250 + 38,625).
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    B. Burden Hours: 9,652,500.
    Yearly recurring burden of 60 hours per respondent \10\ to modify 
and distribute notices x 160,875 respondents = 9,652,500 hours, 
cumulatively.
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    \10\ Assumption: 5 hours per month per respondent.
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    C. Labor Costs: $171,331,875.
    Labor costs are derived by applying appropriate estimated hourly 
cost figures to the burden hours described above. The FTC assumes that 
respondents will use correspondence clerks, at a mean hourly wage of 
$17.75,\11\ to modify and distribute notices to consumers, for a 
cumulative labor cost total of $171,331,875.
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    \11\ http://www.bls.gov/news.release/pdf/ocwage.pdf: Bureau of 
Labor Statistics, Economic News Release, March 29, 2013, Table 1, 
``National employment and wage data from the Occupational Employment 
Statistics survey by occupation, May 2012.''
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    D. Capital/Non-Labor Costs: $0.
    The FTC believes that the FTC and CFPB rules impose negligible 
capital or other non-labor costs, as the affected entities are likely 
to have the necessary supplies and/or equipment already (e.g., offices 
and computers) for the information collections discussed above.
    Request for Comment: 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) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(4) ways 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 April 28, 
2014.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 28, 2014. 
Write ``RBP Rule, PRA Comment, P145403,'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including to the extent practicable, 
on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to 
remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health

[[Page 11110]]

information. In addition, do not include any ``[t]rade secret or any 
commercial or financial information which is . . . privileged or 
confidential'' as provided in Section 6(f) of the FTC Act 15 U.S.C. 
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do 
not include competitively sensitive information such as costs, sales 
statistics, inventories, formulas, patterns devices, manufacturing 
processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c).\12\ Your comment will be kept confidential only if 
the FTC General Counsel grants your request in accordance with the law 
and the public interest.
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    \12\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/rbprulepra, by following the instructions on the web-based form. If 
this Notice appears at http://www.regulations.gov/#!home, you also may 
file a comment through that Web site.
    If you file your comment on paper, write ``RBP Rule, PRA Comment, 
P145403,'' on your comment and on the envelope, and mail or deliver it 
to the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives on or before April 28, 
2014. You can find more information, including routine uses permitted 
by the Privacy Act, in the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2014-04235 Filed 2-26-14; 8:45 am]
BILLING CODE 6750-01-P