[Federal Register Volume 85, Number 34 (Thursday, February 20, 2020)]
[Notices]
[Pages 9775-9777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03371]


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FEDERAL TRADE COMMISSION


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

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is 
seeking public comment on its proposal to extend for an additional 
three years the Office of Management and Budget clearance for 
information collection requirements in its ``Fair Credit Reporting 
Risk-Based Pricing Regulations'' (``Risk-Based Pricing 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. The current clearance expires on July 31, 
2020.

DATES: Comments must be filed by April 20, 2020.

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 ``Risk-Based Pricing 
Rule, PRA Comment, P145403,'' on your comment and file your comment 
online at https://www.regulations.gov, by following the instructions on 
the web-

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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: Monique Einhorn, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, (202) 
326-2575, 600 Pennsylvania Ave., NW, Room CC-8232, Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: 
    Title of Collection: Fair Credit Reporting Risk-Based Pricing 
Regulations, 16 CFR 640.
    OMB Control Number: 3084-0145.
    Type of Review: Extension without change of currently approved 
collection.
    Affected Public: Private Sector: Businesses and other for-profit 
entities.
    Estimated Annual Burden Hours: 7,950,000.
    Estimated Annual Labor Costs: $149,062,500.
    Abstract: The Dodd-Frank Wall Street Reform and Consumer Protection 
Act (``Dodd-Frank Act'') was enacted on July 21, 2010.\1\ 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\ After the enactment 
of the Dodd-Frank Act, the FTC retains rulemaking authority for its 
Risk-Based Pricing Rule (16 CFR 640) 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\ The FTC shares 
enforcement authority with the CFPB for provisions of Regulation V 
subpart C (12 CFR 1022.21) that apply to entities other than motor 
vehicle dealers described above.
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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\ See Dodd-Frank Act Sec. Sec.  1029 (a), (c).
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    The Risk-Based Pricing Rule and the CFPB's Regulation V require 
that a creditor 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.\5\ 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; 12 CFR 1022.72-1022.73.
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    Under the PRA, 44 U.S.C. 3501-3521, the FTC is requesting that OMB 
renew the clearance (OMB Control Number 3084-0145) for the PRA burden 
associated with the Rule. The FTC is seeking clearance for its assumed 
share of the estimated PRA burden regarding the disclosure requirements 
under the FTC and CFPB Rules.

Burden Statement

    The Commission estimates that approximately 168,000 entities are 
covered by the FTC and CFPB Rules,\6\ including 97,000 motor vehicle 
dealers that are subject to exclusive FTC jurisdiction.\7\ The FTC 
assumes the full burden for the motor vehicle dealers subject to its 
exclusive jurisdiction and shares burden for the remaining entities 
subject to both CFPB and FTC enforcement authority. Accordingly, as an 
analytical framework, 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 
burden, and adds to the resulting subtotal the estimated burden for 
motor vehicle dealers over which the FTC retains exclusive rulemaking 
and enforcement authority.
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    \6\ See http://www.naics.com/search.htm (categories of covered 
entities include retail, motor 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.
    \7\ This total is based on estimates that there are 54,753 
franchise/new car and independent/used car dealers in the U.S., as 
well as 3,876 recreational vehicle dealers, 11,034 boat dealers, and 
27,336 ATV/Other Motor Vehicle Dealers. These figures are based on 
estimates by the National Automobile Dealers Association and the 
National Independent Automobile Dealers Association, see NADA Data 
2018: Annual Report; NIADA.com, as well as data from the NAICS 
Association, see https://www.naics.com/six-digit-naics/?code=4445.
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    This yields a total of 132,500 respondents for whom the FTC 
accounts for burden (97,000 motor vehicle dealers plus one-half (i.e., 
35,500) of the remaining 71,000 entities subject to shared FTC-CFPB 
jurisdiction). The FTC estimates that covered entities spend 
approximately 60 hours per year to comply with the Rule's requirements. 
As a result, the FTC estimates that the total burden hours attributable 
to FTC requirements is 7,950,000 hours (132,500 respondents x 60 
hours).
    Labor costs are derived by applying 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 $18.75,\8\ to 
modify and distribute notices to consumers, for a cumulative labor cost 
total of $149,062,500.
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    \8\ See Bureau of Labor Statistics, Occupational Employment and 
Wages News Release, May 2018, Table 1, ``National employment and 
wage data from the Occupational Employment Statistics survey by 
occupation, May 2018,'' at: https://www.bls.gov/news.release/ocwage.htm.
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    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 20, 2020.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 20, 2020. 
Write ``Risk-Based Pricing Rule, PRA Comment, P145403'' 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. 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.

[[Page 9777]]

    If you file your comment on paper, write ``Risk-Based Pricing Rule, 
PRA Comment, P145403'' on your comment and on the envelope, and 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, Washington, DC 20024. If 
possible, please submit your paper comment to the Commission by courier 
or overnight service.
    Because your comment will be placed on the public record, 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 on the public FTC website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC website, 
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 April 20, 
2020. 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. 2020-03371 Filed 2-19-20; 8:45 am]
 BILLING CODE 6750-01-P