[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Notices]
[Pages 55489-55492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22054]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Federal Trade Commission.

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: In compliance with the Paperwork Reduction Act (PRA) of 1995, 
the Federal Trade Commission (``FTC'' or ``Commission'') is seeking 
public comments on its request to the Office of Management and Budget 
(``OMB'') for a three-year extension of the current PRA clearance for 
the information collection requirements contained in the Gramm-Leach-
Bliley Financial Privacy Rule (GLB Privacy Rule), 16 CFR part 313. That 
clearance expires on September 30, 2014.

DATES: Comments must be received by October 16, 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. You may file your comment 
online at https://ftcpublic.commentworks.com/ftc/glbfinancialrulepra2 
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, 
600 Pennsylvania Avenue NW., Suite CC-5610 (Annex J), Washington, DC 
20580, or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex J), Washington, DC 20024.
    Comments on the information collection requirements subject to 
review under the PRA should also be submitted to OMB. If sent by U.S. 
mail, address comments to: Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Federal Trade Commission, New Executive Office Building, Docket 
Library, Room 10102, 725 17th Street NW., Washington, DC 20503. 
Comments sent to OMB by U.S. postal mail, however, are subject to 
delays due to heightened security precautions. Thus, comments instead 
should be sent by facsimile to (202) 395-5167.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Jessica Lyon, Attorney, Division of Privacy and Identity Protection, 
Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue NW., Drop Box 8232, Washington, DC 20580, (202) 
326-2344.

SUPPLEMENTARY INFORMATION: 
    Title: GLB Privacy Rule (officially titled Privacy of Consumer 
Financial Information Rule), 16 CFR part 313.
    OMB Control Number: 3084-0121.
    Type of Review: Extension of a currently approved collection.
    Abstract: The GLB Privacy Rule is designed to ensure that customers 
and consumers, subject to certain exceptions, will have access to the 
privacy policies of the financial institutions with which they conduct 
business. As mandated by the Gramm-Leach-Bliley Act, 15 U.S.C. 6801-
6809, the Rule implements consumer disclosure requirements that are 
subject to the provisions of the PRA. The Rule requires financial 
institutions to disclose to consumers: (1) Initial notice of the 
financial institution's privacy policy when establishing a customer 
relationship with a consumer and/or before sharing a consumer's non-
public personal information with certain nonaffiliated third parties; 
(2) notice of the consumer's right to opt out of information sharing 
with such parties; (3) annual notice of the institution's privacy 
policy to any continuing customer; \1\ and (4) notice of changes in the 
institution's practices on information sharing. The Rule does not 
require recordkeeping. For PRA burden calculations the FTC has 
attributed to itself the burden for all motor vehicle dealers and then 
shares equally the remaining PRA burden with the Consumer Financial 
Protection Bureau (CFPB) for other types of financial institutions for 
which both agencies have enforcement authority regarding the GLB 
Privacy Rule.
---------------------------------------------------------------------------

    \1\ The Consumer Financial Protection Bureau has proposed 
amending Regulation P, to create an alternative delivery method for 
this annual disclosure, which financial institutions would be able 
to use under certain conditions. See 79 FR 27214 (May 13, 2014). 
Specifically, the CFPB proposes allowing financial institutions that 
do not engage in certain types of information-sharing activities to 
stop mailing an annual disclosure if they post the annual notices on 
their Web sites and meet certain other criteria. A financial 
institution would still be required to mail a disclosure if the 
institution, among other things, has changed its privacy practices 
or engages in information-sharing activities for which customers 
have a right to opt out.
---------------------------------------------------------------------------

    On June 19, 2014, the Commission sought comment on the Rule's 
information collection requirements.\2\ The Commission did not receive 
any comments. As required by OMB regulations, 5 CFR 1320, the FTC is 
providing this second opportunity for public comment.
---------------------------------------------------------------------------

    \2\ See 79 FR 35158 (60-Day Federal Register Notice).
---------------------------------------------------------------------------

    Estimated annual hours burden: 1,515,050 annual hours (FTC 
portion).
    As noted in previous burden estimates for the GLB Privacy Rule, 
determining the PRA burden of the Rule's disclosure requirements is 
very

[[Page 55490]]

difficult because of the highly diverse group of affected entities, 
consisting of financial institutions not regulated by a Federal 
financial regulatory agency. See 15 U.S.C. 6805 (committing to the 
Commission's jurisdiction entities that are not specifically subject to 
another agency's jurisdiction).
    The burden estimates represent the FTC staff's best assessment, 
based on its knowledge and expertise relating to the financial 
institutions subject to the Commission's jurisdiction under this law. 
To derive these estimates, staff considered the wide variations in 
covered entities. In some instances, covered entities may make the 
required disclosures in the ordinary course of business, apart from the 
GLB Privacy Rule. In addition, some entities may use highly automated 
means to provide the required disclosures, while others may rely on 
methods requiring more manual effort. The burden estimates shown below 
include the time that may be necessary to train staff to comply with 
the regulations. These figures are averages based on staff's best 
estimate of the burden incurred over the broad spectrum of covered 
entities.
    Staff estimates that the number of entities each year that will 
address the GLB Privacy Rule for the first time will be 5,000 and the 
number of established entities already familiar with the Rule will be 
100,000. While the number of established entities familiar with the 
Rule would theoretically increase each year with the addition of new 
entrants, staff retains its estimate of established entities for each 
successive year given that a number of the established entities will 
close in any given year, and also given the difficulty of establishing 
a more precise estimate.
    Staff believes that the usage of the model privacy form and the 
availability of the form builder simplify and automate much of the work 
associated with creating the disclosure documents for new entrants. 
Staff thus estimates 1 hour of clerical time and 2 hours of 
professional/technical time per new entrant.
    For established entities, staff similarly believes that the usage 
of the model privacy form and the availability of the Online Form 
Builder reduces the time associated with the modification of the 
notices. Staff thus estimates 7 hours of clerical time and 3 hours of 
professional/technical time per respondent. Staff estimates that no 
more than 1% of the estimated 100,000 established-entity respondents 
would make additional changes to privacy policies at any time other 
than the occasion of the annual notice.
    The complete burden estimates for new entrants and established 
entities are detailed in the charts below.

                           Annual Start-Up Hours and Labor Costs for all New Entrants
                                                   [Table IA]
----------------------------------------------------------------------------------------------------------------
                                 Hourly wage and     Hours per    Approx. number   Approx. total   Approx. total
             Event              labor category *    respondent    of respondents    annual hrs.     labor costs
----------------------------------------------------------------------------------------------------------------
Reviewing internal policies     $41.82                        20           5,000         100,000      $4,182,000
 and developing GLBA-            Professional/
 implementing instructions **.   Technical.
Creating disclosure document    $16.78 Clerical.               1           5,000           5,000          83,900
 or electronic disclosure       $41.82                         2           5,000          10,000         418,200
 (including initial, annual,     Professional/
 and opt-out disclosures).       Technical.
Disseminating initial           $16.78 Clerical.              15           5,000          75,000       1,258,500
 disclosure (including opt-out  $41.82                        10           5,000          50,000       2,091,000
 notices).                       Professional/
                                 Technical.
                                                 ---------------------------------------------------------------
    Total.....................  ................  ..............  ..............         240,000      $8,033,600
----------------------------------------------------------------------------------------------------------------
*Staff calculated labor costs by applying appropriate hourly cost figures to burden hours. The hourly rates used
  were based on mean wages for Financial Examiners and for Office and Administrative Support, corresponding to
  professional/technical time (e.g., compliance evaluation and/or planning, designing and producing notices,
  reviewing and updating information systems), and clerical time (e.g., reproduction tasks, filing, and, where
  applicable to the given event, typing or mailing) respectively. See BLS Occupational Employment and Wages, May
  2013, Table 1 at http://www.bls.gov/news.release/pdf/ocwage.pdf. Labor cost totals reflect solely that of the
  commercial entities affected. Staff estimates that the time required of consumers to respond affirmatively to
  respondents' opt-out programs (be it manually or electronically) would be minimal.
**Reviewing instructions includes all efforts performed by or for the respondent to: Determine whether and to
  what extent the respondent is covered by an agency collection of information, understand the nature of the
  request, and determine the appropriate response (including the creation and dissemination of documents and/or
  electronic disclosures).

    Burden for established entities already familiar with the Rule 
predictably would be less than for new entrants because start-up costs, 
such as crafting a privacy policy, are generally one-time costs and 
have already been incurred. Staff's best estimate of the average burden 
for these entities is as follows:

                               Burden Hours and Costs for All Established Entities
                                                   [Table IB]
----------------------------------------------------------------------------------------------------------------
                                                                  Approx. number
             Event               Hourly wage and     Hours per          of         Approx. total   Approx. total
                                 labor category*    respondent     respondents**    annual hrs.     labor costs
----------------------------------------------------------------------------------------------------------------
Reviewing GLBA-implementing     $41.82                         4          70,000         280,000     $11,709,600
 policies and practices.         Professional/
                                 Technical.
Disseminating annual            $16.78 Clerical.              15          70,000       1,050,000      17,619,000
 disclosure.                    $41.82                         5          70,000         350,000      14,637,000
                                 Professional/
                                 Technical.
Changes to privacy policies     $16.78 Clerical.               7           1,000           7,000         117,460
 and related disclosures.       $41.82                         3           1,000           3,000         125,460
                                 Professional/
                                 Technical.
                                                 ---------------------------------------------------------------

[[Page 55491]]

 
    Total.....................  ................  ..............  ..............       1,690,000     $44,208,520
----------------------------------------------------------------------------------------------------------------
*Staff calculated labor costs by applying appropriate hourly cost figures to burden hours. The hourly rates used
  were based on mean wages for Financial Examiners and for Office and Administrative Support, corresponding to
  professional/technical time (e.g., compliance evaluation and/or planning, designing and producing notices,
  reviewing and updating information systems), and clerical time (e.g., reproduction tasks, filing, and, where
  applicable to the given event, typing or mailing) respectively. See BLS Occupational Employment and Wages, May
  2013, Table 1 at http://www.bls.gov/news.release/pdf/ocwage.pdf. Labor cost totals reflect solely that of the
  affected commercial entities. Consumers have a continuing right to opt out, as well as a right to revoke their
  opt-out at any time. When a respondent changes its information sharing practices, consumers are again given
  the opportunity to opt out. Again, staff assumes that the time required of consumers to respond affirmatively
  to respondents' opt-out programs (be it manually or electronically) would be minimal.
**The estimate of respondents is based on the following assumptions: (1) 100,000 established respondents,
  approximately 70% of whom maintain customer relationships exceeding one year, (2) no more than 1% (1,000) of
  whom make additional changes to privacy policies at any time other than the occasion of the annual notice; and
  (3) such changes will occur no more often than once per year.

    As calculated above, the total annual PRA burden hours and labor 
costs for all affected entities in a given year would be 1,930,000 
hours and $52,242,120, respectively.
    The FTC now carves out from these overall figures the burden hours 
and labor costs associated with motor vehicle dealers. This is because 
the CFPB does not enforce the GLB Privacy Rule for those types of 
entities. We estimate the following:

               Annual Start-Up Hours and Labor Costs for New Entrants--Motor Vehicle Dealers Only
                                                   [Table IIA]
----------------------------------------------------------------------------------------------------------------
                                                                  Approx. number
                                 Hourly wage and     Hours per    of respondents   Approx. total   Approx. total
             Event               labor category     respondent       (Table IA      annual hrs.     labor costs
                                                                  inputs x 0.57)
----------------------------------------------------------------------------------------------------------------
Reviewing internal policies     $41.82                        20           2,850          57,000      $2,383,740
 and developing GLBA-            Professional/
 implementing instructions **.   Technical.
Creating disclosure document    $16.78 Clerical.               1           2,850           2,850          47,823
 or electronic disclosure       $41.82                         2           2,850           5,700         238,374
 (including initial, annual,     Professional/
 and opt out disclosures).       Technical.
Disseminating initial           $16.78 Clerical.              15           2,850          42,750         717,345
 disclosure (including opt out  $41.82                        10           2,850          28,500       1,191,870
 notices).                       Professional/
                                 Technical.
                                                 ---------------------------------------------------------------
    Total.....................                                                           136,800      $4,579,152
----------------------------------------------------------------------------------------------------------------
**Multiply the number of respondents from the comparable table above on all new entrants by the following
  allocation (60,000/105,000) = 0.57. The number in the denominator represents the total of the FTC's existing
  GLB Rule estimates for new entrants (5,000) and established entities (100,000). The numerator represents an
  estimate of motor vehicle respondents. For this category, Commission staff relied on the following industry
  estimates: 17,635 new car dealers per National Automobile Dealers Association data (2013) and 35,000
  independent/used car dealers per National Independent Automobile Dealers Association data (2012),
  respectively, multiplied by an added factor of 1.10 to cover for an unknown quantity of additional motor
  vehicle dealer types (motorcycles, boats, other recreational vehicles) also covered within the definition of
  ``motor vehicle dealer'' under section 1029(a) of the Dodd-Frank Act.


          Annual Burden Hours and Labor Costs for all Established Entities--Motor Vehicle Dealers Only
                                                   [Table IIB]
----------------------------------------------------------------------------------------------------------------
                                                                  Approx. number
                                   Hourly wage                          of
             Event                  andlabor         Hours per     respondents**   Approx. total   Approx. total
                                    category*       respondent       (Table IB      annual hrs.     labor costs
                                                                  inputs x 0.57)
----------------------------------------------------------------------------------------------------------------
Reviewing GLBA-implementing     $41.82                         4          39,900         159,600      $6,674,472
 policies and practices.         Professional/
                                 Technical.
Disseminating annual            $16.78 Clerical.              15          39,900         598,500      10,042,830
 disclosure.                    $41.82                         5          39,900         199,500       8,343,090
                                 Professional/
                                 Technical.
Changes to privacy policies     $16.78 Clerical.               7             570           3,990          66,952
 and related disclosures.       $41.82                         3             570           1,710          71,512
                                 Professional/
                                 Technical.
                                                 ---------------------------------------------------------------
    Total.....................                                                           963,300     $25,198,856
----------------------------------------------------------------------------------------------------------------


[[Page 55492]]

    The FTC's portion of the annual hourly burden would be 1,100,100 
hours + ((1,930,000 - 1,100,100)/2) = 1,515,050 annual hours. The FTC's 
portion of the annual cost burden would be $29,778,008 + $((52,242,120 
- 29,778,008)/2) = $41,010,064.

Estimated Capital/Other Non-Labor Costs Burden

    Staff believes that capital or other non-labor costs associated 
with the document requests are minimal. Please see the 60-Day Federal 
Register notice for more details.

Request for Comments

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before October 16, 
2014. Write ``Paperwork Comment: FTC File No. P085405'' 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, such as 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 information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which is . . . privileged or confidential,'' as discussed 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 are required to follow the procedure 
explained in FTC Rule 4.9(c), 16 CFR 4.9(c). Your comment will be kept 
confidential only if the FTC General Counsel grants your request in 
accordance with the law and the public interest.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comment online, or to send it to the Commission by courier or 
overnight service. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/glbfinancialrulepra2, by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov, you 
also may file a comment through that Web site.
    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, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex J), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW., 5th Floor, Suite 5610 (Annex J), Washington, DC 
20024.
    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 October 16, 
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.shtm.
    Comments on the information collection requirements subject to 
review under the PRA should also be submitted to OMB. If sent by U.S. 
mail, address comments to: Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Federal Trade Commission, New Executive Office Building, Docket 
Library, Room 10102, 725 17th Street NW., Washington, DC 20503. 
Comments sent to OMB by U.S. postal mail, however, are subject to 
delays due to heightened security precautions. Thus, comments instead 
should be sent by facsimile to (202) 395-5167.

Christian S. White,
Deputy General Counsel.
[FR Doc. 2014-22054 Filed 9-15-14; 8:45 am]
BILLING CODE 6750-01-P