[Federal Register Volume 81, Number 35 (Tuesday, February 23, 2016)]
[Notices]
[Pages 8959-8962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03718]


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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 regulation ``Duties of 
Furnishers of Information to Consumer Reporting Agencies'' 
(``Information Furnishers Rule''), which applies to certain motor 
vehicle dealers, and its shared enforcement with the Consumer Financial 
Protection Bureau (``CFPB'') of the furnisher provisions (subpart E) of 
the CFPB's Regulation V regarding other entities. That clearance 
expires on August 31, 2016.

DATES: Comments must be filed by April 25, 2016.

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 ``Information Furnishers 
Rule, PRA Comment, P135407,'' on your comment and file your comment 
online at https://ftcpublic.commentworks.com/ftc/infofurnishersrulepra, 
by following the instructions on the web-based form.

[[Page 8960]]

If you prefer to file your comment on paper, mail 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.

FOR FURTHER INFORMATION CONTACT: Monique Einhorn, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, (202) 
326-2575, 600 Pennsylvania Ave. NW., CC-8232, 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 furnisher 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 rulemaking authority.\4\
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    \1\ Pub. L. 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.
    \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 Information Furnishers 
Rule 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 and servicing of motor 
vehicles, or both.\5\
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    \5\ See Dodd-Frank Act, Sec.  1029(a), (c).
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    In addition, the FTC retains its authority to enforce the furnisher 
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 furnisher provisions (subpart E) 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 below continues that 
analytical framework, as appropriately updated or otherwise refined for 
instant purposes.
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    \6\ 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 section 660.3 of the FTC's Information Furnishers Rule \7\ 
and section 1022.42 of the CFPB Rule,\8\ furnishers must establish and 
implement reasonable written policies and procedures regarding the 
accuracy and integrity of the information relating to consumers that 
they furnish to a consumer reporting agency (``CRA'').\9\ Section 660.4 
of the FTC Rule and section 1022.43 of the CFPB Rule require that 
entities which furnish information about consumers to a CRA respond to 
direct disputes from consumers. These provisions also require that a 
furnisher notify consumers by mail or other means (if authorized by the 
consumer) within five business days after making a determination that a 
dispute is frivolous or irrelevant (``F/I dispute'').
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    \7\ 16 CFR part 660.
    \8\ 12 CFR part 1022.
    \9\ The rule defines a ``furnisher'' as an entity that furnishes 
information relating to consumers to one or more CRAs for inclusion 
in a consumer report, but provides that an entity is not a furnisher 
when it: Provides information to a CRA solely to obtain a consumer 
report for a permissible purpose under the FCRA; is acting as a CRA 
as defined in section 603(f) of the FCRA; is an individual consumer 
to whom the furnished information pertains; or is a neighbor, 
friend, or associate of the consumer, or another individual with 
whom the consumer is acquainted or who may have knowledge about the 
consumer's character, general reputation, personal characteristics, 
or mode of living in response to a specific request from a CRA.
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    The FTC's currently cleared burden totals, post-adjustment for the 
effects of the Dodd-Frank Act, are 10,607 hours with $453,297 in 
associated labor costs.\10\ Estimated capital/non-labor costs remain 
listed as $0 because Commission staff maintains its belief that the 
Rule imposes negligible capital or other non-labor costs, as the 
affected entities are already likely to have the necessary supplies 
and/or equipment (e.g., offices and computers) for the information 
collections within the Rule. The only estimates that FTC staff believes 
warrant revision are labor costs, for which newer outside data are 
available to inform them. The details that follow underlie the FTC's 
existing burden estimates and updated labor cost estimates.
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    \10\ OMB Control No. 3084-0144.
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    Estimated number of respondents: 3,986 \11\
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    \11\ Given the broad scope of furnishers, it is difficult to 
determine precisely the number of them that are subject to the FTC's 
jurisdiction. Nonetheless, Commission staff estimated that the 
regulations affect approximately 6,133 such furnishers. See 74 FR 
31484, 31505 n. 56 (July 1, 2009 FTC and Federal financial agencies 
final rules). It is equally difficult to determine precisely the 
number of motor vehicle dealers that furnish information related to 
consumers to a CRA for inclusion in a consumer report. For purposes 
of estimating its motor vehicle dealer furnisher carve-out, the FTC 
has assumed that 30% of the 6,133 furnishers, or 1,840 furnishers, 
constitute the number of motor vehicle dealers over which the FTC 
retains exclusive jurisdiction under the Dodd-Frank Act. To derive 
this 30% estimate, Commission 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. The resulting apportionment 
for motor vehicle dealers was subtracted from the base figure 
(6,133) to determine the net amount (4,293) subject to 50:50 
apportionment (approximately 2,146 each) between the FTC and CFPB. 
Thus, 1,840 motor vehicle dealers + 2,146 other entities = 3,986 
respondents for the FTC's burden calculations.
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Section 660.3 of FTC Rule/Section 1022.42 of CFPB Rule

A. Burden Hours
    Yearly recurring burden of 2 hours for training \12\ to help ensure 
continued compliance regarding written policies and procedures for the 
accuracy and integrity of the information furnished to a CRA about 
consumers.
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    \12\ 74 FR at 31505.


[[Page 8961]]


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3,986 respondents x 2 hours for training = 7,972 hours
B. Labor Costs
    Labor costs are derived by applying appropriate estimated hourly 
cost figures to the burden hours described above. The FTC assumes that 
respondents will use managerial and/or professional technical personnel 
to train company employees in order to foster continued compliance with 
the information collection requirements in the Information Furnishers 
Rule and the furnisher provisions of Regulation V.

7,972 hours x $53.38 \13\ = $425,545
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    \13\ http://www.bls.gov/news.release/ocwage.nr0.htm: 
``Occupational Employment and Wages--May 2014,'' Bureau of Labor 
Statistics, U.S. Department of Labor, released March 25, 2015, Table 
1 (``National employment and wage data from the Occupational 
Employment Statistics survey by occupation, May 2014) (hereinafter, 
``BLS Table 1''). See mean hourly wage for ``Training and 
Development Managers.''
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Section 660.4 of FTC Rule/Section 1022.43 of CFPB Rule

A. Burden Hours
    No recurring burden other than that necessary to prepare and 
distribute F/I notices (estimate: 14 minutes per notice \14\).
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    \14\ 74 FR at 31505.

1. 21,720 F/I disputes (estimated number received by furnishers under 
the FTC's jurisdiction \15\)
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    \15\ Id. at 31506 n. 58.
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2. Motor vehicle dealer furnisher ``carve-out'' to FTC: Assumed 4% \16\ 
= 869 F/I disputes
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    \16\ FTC staff believes that 4% is a reasonable estimate based 
on recent data. See ``Key Dimensions and Processes in the U.S. 
Credit Reporting System: A review of how the nation's largest credit 
bureaus handle consumer data,'' December 2012, pp. 14, 29, 31, 34. 
The CFPB report noted that almost 40% of all consumer disputes at 
the nationwide CRAs, on average, can be linked to collections. It 
stated that collection trade lines generate significantly higher 
numbers of consumer disputes than other types of trade lines--
specifically, four times higher than auto. These figures seem to 
suggest that almost 10% of all consumer disputes at the nationwide 
CRAs, on average, can be linked to auto. When the FTC issued its 
final Rule, FTC staff estimated that 40% of direct disputes would 
result in the sending of F/I dispute notices. See 74 FR 31506 n.58. 
The FTC's estimate of 4% is based on taking forty percent of the 10% 
of all consumer disputes at the nationwide CRAs, on average, linked 
to auto loans.
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3. 21,720 F&I disputes--869 ``carve-out'' = 20,851 respondents for 
CFPB-FTC split
    a. Divided by 2 = 10,425 F/I disputes, co-jurisdiction estimate
    b. CFPB: 10,425 F/I disputes
    c. FTC: 869 ``carve-out'' + 10,425 additional F/I disputes = 11,294 
F/I disputes
    d. FTC: 11,294 F/I disputes x 14 minutes each = 2,635 hours
B. Labor Costs
    Labor costs are derived by applying appropriate estimated hourly 
cost figures to the burden hours described above. The FTC assumes that 
respondents will use skilled administrative support personnel to 
provide the required F/I dispute notices to consumers.

2,635 hours x $22.24 \17\ = $58,602
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    \17\ The revised figure is an averaging of Bureau of Labor 
Statistics mean hourly wages for potentially analogous employee 
types: First-line supervisors of office and administrative support 
workers ($26.15); accounting and auditing clerks ($18.30); brokerage 
clerks ($24.10); eligibility interviewers, government programs 
($20.41). See BLS Table 1. This averages out to $22.24 per hour, 
rounded.

    Thus, total estimated burden under the above-noted regulatory 
sections is 10,607 hours and $484,147.
    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) 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.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 25, 2016. 
Write ``Information Furnishers Rule, PRA Comment, P135407'' 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 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).\18\ 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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    \18\ 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/infofurnishersrulepra, by following the instructions on the web-
based form. When 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 ``Paperwork Comment: FTC 
File No. P135407'' on your comment and on the envelope, and mail it 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. 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 25, 
2016. For information on the Commission's privacy policy, including 
routine uses permitted by the

[[Page 8962]]

Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.

David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2016-03718 Filed 2-22-16; 8:45 am]
 BILLING CODE 6750-01-P