[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10074-10076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05082]


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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 Bureau of Consumer 
Financial Protection (``BCFP'') of the furnisher provisions (subpart E) 
of the BCFP's Regulation V regarding other entities. That clearance 
expires on June 30, 2019.

DATES: Comments must be filed by May 20, 2019.

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://www.regulations.gov/, 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: Tiffany George (202-326-3040), 
Attorney, Division of Privacy and Identity Protection, Bureau of 
Consumer Protection, 600 Pennsylvania Ave. NW, CC-8232, Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: Under the Dodd-Frank Act,\1\ most of the 
FTC's rulemaking authority for the furnisher provisions of the Fair 
Credit Reporting Act (``FCRA'') \2\ transferred to the BCFP. The FTC, 
however, retained its furnishers rulemaking authority for motor vehicle 
dealers that are predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or 
both.\3\ In addition, the FTC retained its authority to enforce the 
furnisher provisions of the FCRA and rules issued under those 
provisions. Thus, the FTC and BCFP have overlapping enforcement 
authority for many entities subject to BCFP's Regulation V (subpart E) 
and the FTC has sole enforcement authority for the motor vehicle 
dealers subject to the FTC rule.
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    \1\ Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ 15 U.S.C. 1681 et seq.
    \3\ See Dodd-Frank Act, Sec.  1029(a), (c).
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    Under section 660.3 of the FTC's Information Furnishers Rule \4\ 
and section 1022.42 of the BCFP Rule,\5\ 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'') for inclusion in 
a consumer report.\6\ Section 660.4 of the FTC Rule and section 1022.43 
of the BCFP 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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    \4\ 16 CFR part 660.
    \5\ 12 CFR part 1022.
    \6\ The rule also 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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    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.

[[Page 10075]]

3502(3); 5 CFR 1320.3(c). The FTC is seeking renewed clearance for its 
assumed share of the estimated PRA burden regarding the information 
furnisher requirements under the FTC and BCFP Rules.

Burden Statement

    The FTC last submitted to OMB and received approval for its burden 
estimates for these furnisher rules on May 10, 2016. The discussion 
below updates and refines that analytical framework for purposes of 
renewing this PRA clearance.
    The FTC's currently cleared burden totals are 10,607 hours with 
$488,148 in associated labor costs.\7\ The newly revised estimates are 
17,055 hours with $878,307 in associated labor costs. The estimated 
number of furnishers affected by the rules has increased from 3,986 to 
7,210.\8\ The estimated number of hours needed to comply remains 
unchanged. The labor cost estimates have been revised based on updated 
data. Estimated capital/non-labor costs remain $0 because 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 details that follow calculate the FTC's revised 
burden hours estimates and updated labor cost estimates.
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    \7\ OMB Control No. 3084-0144.
    \8\ The BCFP estimates that there are 16,000 furnishers, 
excluding motor vehicle dealers that are subject to the FTC's 
jurisdiction, with an allocation to that agency of 63% of the burden 
or 10,080 respondents. See BCFP Supporting Statement Part A, Fair 
Credit Reporting Act (Regulation V) 12 CFR 1022 (OMB Control Number: 
3170-0002) (https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201707-3170-002). Allocating the remaining 
37% of the burden to the FTC yields 5,920 respondents, excluding 
motor vehicle dealers that are subject to the FTC's jurisdiction. 
Based on figures obtained from the North American Industry 
Classification System (NAICS) Association's database of U.S. 
businesses, the FTC estimates that there are approximately 129,000 
motor vehicle dealers determined as follows: 88,695 car dealers per 
NAICS data (53,549 new car dealers, 35,146 used car dealers) in 
addition to 4,023 Recreational Vehicle Dealers; 9,248 boat dealers; 
and 26,706 motorcycle, ATV/All Other Motor Vehicle Dealers. See 
https://www.naics.com/six-digit-naics/?code=44-45. It is difficult 
to determine precisely the number of motor vehicle dealers that are 
subject to the FTC's jurisdiction and that are furnishers. Given the 
restrictions in section 1029(a) of the Dodd-Frank Act that motor 
vehicle dealers subject to the FTC's jurisdiction are those that 
routinely assign consumer contracts governing retail credit to an 
unaffiliated third party finance source, Commission staff believes 
the number is de minimis. Accordingly, the FTC estimates that 1% of 
motor vehicle dealers subject to the FTC's jurisdiction are 
furnishers of information to CRAs or 1,290 respondents. Thus, 1,290 
motor vehicle dealers + 5,920 other entities = 7,210 respondents for 
the FTC's burden calculations.
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Section 660.3 of FTC Rule/Section 1022.42 of BCFP Rule

A. Burden Hours
    Yearly recurring burden of 2 hours for training \9\ to help ensure 
continued compliance regarding written policies and procedures for the 
accuracy and integrity of the information furnished to a CRA about 
consumers.

7,210 respondents x 2 hours for training = 14,420 hours
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    \9\ 74 FR 31484, 31505 (July 1, 2009 FTC and Federal financial 
agencies final rules).
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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 furnisher requirements under the FTC and BCFP Rules.

14,420 hours x $56.58 \10\ = $815,884
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    \10\ http://www.bls.gov/news.release/ocwage.nr0.htm: 
``Occupational Employment and Wages--May 2017,'' Bureau of Labor 
Statistics, U.S. Department of Labor, released March 30, 2018, Table 
1 (``National employment and wage data from the Occupational 
Employment Statistics survey by occupation, May 2017) (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 BCFP Rule

A. Burden Hours
    No recurring burden hours other than that necessary to prepare and 
distribute F/I notices (estimate: 14 minutes per notice \11\).

1. 21,720 total F/I disputes \12\
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    \11\ 74 FR at 31505.
    \12\ Id. at 31506 n.58.
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2. Motor vehicle dealer only furnisher disputes is assumed to be 4% of 
the total: 21,720 x .04 = 869 F/I disputes \13\
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    \13\ 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 BCFP 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-related dispute rates. 
These figures seem to suggest that almost 10% of all consumer 
disputes at the nationwide CRAs, on average, can be linked to auto-
related disputes. 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. 20,851 respondents (21,720-869 FTC only) / by 2 = 10,425 F/I 
disputes for the FTC co-jurisdiction
4. 869 FTC only F/I disputes + 10,425 additional F/I disputes = 11,294 
F/I dispute notices for the FTC's jurisdiction
5. 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 $23.69 \14\ = $62,423
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    \14\ The revised figure is an average of Bureau of Labor 
Statistics mean hourly wages for potentially analogous employee 
types: First-line supervisors of office and administrative support 
workers ($28.14); bookkeeping, accounting, and auditing clerks 
($19.76); brokerage clerks ($25.41); eligibility interviewers, 
government programs ($21.45). See BLS Table 1. This averages to 
$23.69 per hour, rounded.

    Thus, total estimated burden under the above-noted regulatory 
sections is 17,055 hours and $878,307 labor costs.
    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 FTC to consider 
your comment, we must receive it on or before May 20, 2019. Write 
``Information Furnishers Rule, PRA Comment, P135407'' on your comment. 
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, or to send them to the Commission by courier or 
overnight service. To make sure that the Commission considers your 
online comment, you must file it through the https://www.regulations.gov website by following the instructions on the web-
based form provided. Your comment--including your name and your state--
will be placed on the public record of this proceeding, including the 
https://www.regulations.gov website. As a matter of discretion, the 
Commission tries to remove individuals' home

[[Page 10076]]

contact information from comments before placing them on the 
regulations.gov 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.
    Because your comment will be placed on the publicly accessible 
website at www.regulations.gov, you are solely responsible for making 
sure that your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else'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, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
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)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material 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). 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). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted publicly at www.regulations.gov, we cannot redact or remove 
your comment 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.
    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 20, 2019. 
For information on the Commission's privacy policy, including routine 
uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Heather Hippsley,
Deputy General Counsel.
[FR Doc. 2019-05082 Filed 3-18-19; 8:45 am]
BILLING CODE 6750-01-P