[Federal Register Volume 82, Number 41 (Friday, March 3, 2017)]
[Notices]
[Pages 12452-12454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04117]


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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 July 1, 2017.

DATES: Comments must be filed by May 2, 2017.

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 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: Katherine White, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, (202) 
326-2878, 600 Pennsylvania Ave. NW., Room 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 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 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

[[Page 12453]]

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.
    As an analytical framework to estimate PRA burden in the ``Burden 
Statement'' below, the FTC estimates burden pertaining to respondents 
over which both agencies have shared enforcement authority, divides the 
resulting total by one-half to reflect the FTC's shared jurisdiction, 
and adds to the resulting subtotal the incremental estimated burden 
regarding the motor vehicle dealers described above over which the FTC 
retains exclusive enforcement (and rulemaking) authority.

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.
    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 May 2, 2017.
    Under Sec. Sec.  640.3-640.4 of the FTC's RBP Rule \5\ and 
Sec. Sec.  1022.72-1022.73 of the CFPB Rule,\6\ 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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    \5\ 16 CFR 640.3, -640.4.
    \6\ 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 9,652,500 hours based on an 
estimated population of 160,875 entities apportioned to FTC enforcement 
and/or rulemaking authority.\7\
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    \7\ 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 updated estimates:
    A. Estimated Number of Respondents: 160,250.\8\
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    \8\ 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 https://www.ncua.gov/Legal/Documents/Reports/annual-report-2015.pdf. For 
purposes 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 estimates there are approximately 
121,000 motor vehicle dealers, determined as follows: 86,442 car 
dealers per NAICS data (49,905 new car dealers, 36,537 used car 
dealers) + [3,191 Recreational Vehicle Dealers; 7,185 boat dealers; 
24,157 motorcycle, ATV/All Other Motor Vehicle Dealers] = 120,975. 
See https://www.naics.com/six-digit-naics/?code=4445. Excluding the 
estimated number of motor vehicle dealers, 121,000, from the 
estimated overall number of affected entities, 199,500, leaves 
78,500 as the number of respondents for the agencies' 50:50 
apportionment: 78,500, i.e., 39,250 each. Thus, for the FTC, the 
estimated number of respondents for its calculations is 160,250 
(121,000 + 39,250).
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    B. Burden Hours: 9,615,000.
    Yearly recurring burden of 60 hours per respondent \9\ to modify 
and distribute notices x 160,250 respondents = 9,615,000 hours, 
cumulatively.
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    \9\ Assumption: 5 hours per month per respondent.
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    C. Labor Costs: $167,974,050.
    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 
$17.47,\10\ to modify and distribute notices to consumers, for a 
cumulative labor cost total of $167,974,050.
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    \10\ https://www.bls.gov/news.release/ocwage.htm: Bureau of 
Labor Statistics, Economic News Release, March 30, 2016, Table 1, 
``National employment and wage data from the Occupational Employment 
Statistics survey by occupation, May 2015.''
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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

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before May 2, 2017. 
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 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), 16CFR 
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

[[Page 12454]]

explained in FTC Rule 4.9(c).\11\ Your comment will be kept 
confidential only if the FTC General Counsel grants your request in 
accordance with the law and the public interest. Once your comment is 
posted, as legally required by FTC Rule 4.9(b), we cannot redact or 
remove your comment from the FTC's public record, including the FTC's 
Web site, unless you submit a confidentiality request that meets the 
requirements for such treatment under FTC Rule 4.9(c), and the General 
Counsel grants that request in accordance with the law and the public 
interest, as explained above.
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    \11\ 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. 
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 ``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, 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 May 2, 2017. 
For information on the Commission's privacy policy, including routine 
uses permitted by the Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.

David C. Shonka,
Acting General Counsel.
[FR Doc. 2017-04117 Filed 3-2-17; 8:45 am]
 BILLING CODE 6750-01-P