[Federal Register Volume 88, Number 37 (Friday, February 24, 2023)]
[Notices]
[Pages 11917-11919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03888]


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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'' or ``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 September 30, 
2023.

DATES: Comments must be filed by April 25, 2023.

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

[[Page 11918]]

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-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: Genevieve Bonan, Attorney, Division of 
Privacy and Identity Protection, Bureau of Consumer Protection, 400 7th 
Street SW, Drop 5422, Washington, DC 20024, [email protected], (202) 326-
3139.

SUPPLEMENTARY INFORMATION: 
    Title of Collection: Fair Credit Reporting Risk-Based Pricing 
Regulations, 16 CFR part 640.
    OMB Control Number: 3084-0145.
    Type of Review: Extension without change of currently approved 
collection.
    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 part 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 H (12 CFR 1022.70-1022.75) that apply to entities other than 
motor vehicle dealers described above.
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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.
    \4\ See Dodd-Frank Act, secs. 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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    Affected Public: Private Sector: Businesses and other for-profit 
entities.
    Estimated Annual Burden Hours: 8,951,460.
    Estimated Annual Labor Costs: $179,566,288.
    As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C. 
3506(c)(2)(A), the FTC is providing this opportunity for public comment 
before requesting that OMB extend the existing clearance for the 
information collection requirements contained in the Risk-Based Pricing 
Rule.

Burden Statement

    The Commission estimates that approximately 238,346 entities are 
covered by the FTC and CFPB Rules,\6\ including 60,036 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 NAICS Association, LLC, NAICS Code Drill-Down Table, 
available at https://www.naics.com/search/ (the categories of 
covered entities include ``Furniture and Home Furnishings 
Retailers,'' ``Electronics and Appliance Retailers'', ``Automobile 
Dealers,'' ``Other Motor Vehicle Dealers,'' ``Consumer Lending,'' 
and ``Utilities'') (last visited Feb. 8, 2023). See also U.S. Census 
Bureau, All Sectors: County Business Patterns, including ZIP Code 
Business Patterns, by Legal Form of Organization and Employment Size 
Class for the U.S., States, and Selected Geographies: 2020, https://data.census.gov/table?q=Business+and+Economy&n=221 (for 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 National Credit Union Administration, 2022q3 Call 
Report Data: Federally Insured Credit Unions, https://ncua.gov/files/publications/analysis/federally-insured-credit-union-list-september-2022.zip (Sep. 2022).
    \7\ See U.S. Census Bureau, All Sectors: County Business 
Patterns, including ZIP Code Business Patterns, by Legal Form of 
Organization and Employment Size Class for the U.S., States, and 
Selected Geographies: 2020, https://data.census.gov/
table?q=car+dealers+in+2020&n=44111:44112:44121:441222:441228&tid=CBP
2020.CB2000CBP&nkd=EMPSZES~001,LFO~001. This total is based on 
estimates that there are 46,569 franchise/new car and independent/
used car dealers in the U.S., as well as 2,806 recreational vehicle 
dealers, 4,141 boat dealers, and 6,520 ATV/other motor vehicle 
dealers.
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    This yields a total of 149,191 respondents for whom the FTC 
accounts for burden (60,036 motor vehicle dealers plus one-half (i.e., 
89,155) of the remaining 178,310 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 are 8,951,460 hours (149,161 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 $20.06,\8\ to 
modify and distribute notices to consumers, for a cumulative labor cost 
total of $179,566,288 (8,951,460 hours x $20.06 per hour).
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    \8\ See Bureau of Labor Statistics, Occupational Employment and 
Wages News Release, May 2021, Table 1, ``National employment and 
wage data from the Occupational Employment Statistics survey by 
occupation, May 2021,'' available 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 and recordkeeping 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 the collection of information.
    For the FTC to consider a comment, we must receive it on or before 
April 25, 2023. Your comment, including your name and your state, will 
be placed on the public record of this proceeding,

[[Page 11919]]

including the https://www.regulations.gov website.
    You can file a comment online or on paper. Due to the public health 
emergency in response to the COVID-19 outbreak and the agency's 
heightened security screening, postal mail addressed to the Commission 
will be subject to delay. We encourage you to submit your comments 
online through the https://www.regulations.gov website.
    If you file your comment on paper, write ``Risk-Based Pricing Rule, 
PRA Comment, P145403,'' 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 become publicly available at https://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 (1) be filed in paper form, (2) be clearly labeled 
``Confidential,'' and (3) 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 April 25, 
2023. 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.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-03888 Filed 2-23-23; 8:45 am]
BILLING CODE 6750-01-P