Charges for Certain Disclosures, 71912-71913 [E7-24672]

Download as PDF 71912 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices mstockstill on PROD1PC66 with NOTICES whether a dealer has automated the process. For used cars sold ‘‘as is,’’ copying vehicle-specific data from dealer inventories to Buyers Guides and checking the ‘‘No Warranty’’ box may take two to three minutes per vehicle if done by hand, and only seconds for those dealers who have automated the process or use pre-printed forms. Staff estimates that this task will require an average of two minutes per Buyers Guide.7 Similarly, for used cars sold under warranty, the time required to check the ‘‘Warranty’’ box and to add warranty information, such as the additional information required in the Percentage of Labor/Parts and the Systems Covered/Duration sections of the Buyers Guide will depend on whether the dealer uses a manual or automated process or Buyers Guides that are pre-printed with the dealer’s standard warranty terms. Staff estimates that these tasks will take an average of one additional minute, i.e., cumulatively, an average total time of three minutes for each used car sold under warranty. Staff estimates that approximately fifty percent of used cars sold by dealers are sold ‘‘as is,’’ with the other one half sold under warranty.8 Therefore, staff estimates that the overall time required to enter data on Buyers Guides consists of 467,000 hours for used cars sold without a warranty (28,029,000 vehicles x 50% x 2 minutes per vehicle) and 701,000 hours for used cars sold under warranty (28,029,000 vehicles x 50% x 3 minutes per vehicle) for a cumulative estimated total of 1,168,000 hours. 3. Displaying Buyers Guides on Vehicles: Although the time required to display the Buyers Guides on each used car may vary substantially, FTC staff estimates that dealers will spend an average of 1.75 minutes per vehicle to match the correct Buyers Guide to the vehicle and to display it on the vehicle.9 7 The 2004 PRA notice estimated the average time spent for this task as one-and-one half minutes. 69 FR at 63536. Based upon comments received at that time and additional industry input in preparing this notice, staff has revised its estimate upward to 2 minutes. 8 The 2004 PRA notice estimated that sixty percent of sales were ‘‘as is.’’ 69 FR at 63536. Industry input suggests that more used cars are now sold with warranties because of an increase in the availability of manufacturers’ certified used car programs and a longer duration of manufacturers’ original new car warranties. See also Manheim Market Report, at 35 (citing Autodata Corporation (Table noting that 1.6 million certified pre-owned used cars were sold in 2006, which constitutes a two percent increase in certified used car sales from 2004 and approximately six percent of the used cars sold by dealers in 2006)). Staff therefore has decreased its estimate of the number of ‘‘as is’’ sales from the prior PRA notice. 9 The 2004 PRA notice also stated this estimate. See 69 FR at 63536. Absent specific industry VerDate Aug<31>2005 21:40 Dec 18, 2007 Jkt 214001 The estimated burden associated with this task is approximately 818,000 hours for the 28,029,000 vehicles sold in 2006 (28,029,000 vehicles x 1.75 minutes per vehicle). 4. Revising Buyers Guides as Necessary: If negotiations between the buyer and seller over warranty coverage produce a sale on terms other than those originally entered on the Buyers Guide, the dealer must revise the Buyers Guide to reflect the actual terms of sale. According to the original rulemaking record, bargaining over warranty coverage rarely occurs. Staff notes that consumers often do not need to negotiate over warranty coverage because they can find vehicles that are offered with the desired warranty coverage online or in other ways before ever contacting a dealer. Accordingly, staff assumes that the Buyers Guide will be revised in no more than two percent of sales, with an average time of two minutes per revision. Therefore, staff estimates that dealers annually will spend approximately 19,000 hours revising Buyers Guides (28,029,000 vehicles x 2% x 2 minutes per vehicle). 5. Spanish Language Sales: The Rule requires that contract disclosures be made in Spanish if a sale is conducted in Spanish.10 The Rule permits displaying both an English and a Spanish language Buyers Guide to comply with this requirement.11 Many dealers with large numbers of Spanishspeaking customers likely will post both English and Spanish Buyers Guides to avoid potential compliance violations. Calculations from United States Census Bureau surveys indicate that approximately six percent of the United States population speaks Spanish at home, without also speaking fluent English.12 Staff therefore projects that approximately six percent of used car sales will be conducted in Spanish. Dealers will incur the additional burden of completing and displaying a second Buyers Guide in six percent of sales assuming that dealers choose to comply with the Rule by posting both English and Spanish Buyers Guides. The annual hours burden associated with completing and posting Buyers Guides is 1,986,000 hours (1,168,000 hours for entering data on Buyers Guides + 818,000 hours for displaying Buyers Guides). Therefore, staff estimates that the additional burden caused by the Rule’s requirement that dealers display Spanish language Buyers Guides when conducting sales in Spanish is 119,000 hours (6% x 1,986,000 hours). The other components of the annual hours burden, i.e., purchasing Buyers Guides and revising them for changes in warranty coverage, remain unchanged. Estimated annual cost burden: $32,876,000, consisting of $27,270,000 in labor costs and $5,606,000 in nonlabor costs. 1. Labor costs: Labor costs are derived by applying appropriate hourly cost figures to the burden hours described above. Staff has determined that all of the tasks associated with ordering forms, entering data on Buyers Guides, posting Buyers Guides on vehicles, and revising them as needed, including the corresponding tasks associated with Spanish Buyers Guides, are typically done by clerical or low-level administrative personnel. Using a clerical cost rate of $12.12 per hour 13 and an estimated burden of 2,250,000 hours for disclosure requirements, the total labor cost burden would be approximately $27,270,000. 2. Capital or other non-labor costs: Although the cost of Buyers Guides can vary considerably, based on industry input staff estimates that the average cost of each Buyers Guide is 20 cents. The estimated cost of Buyers Guides for the 28,029,000 used cars sold by dealers in 2006 is approximately $5,606,000. In making this estimate, staff conservatively assumes that all dealers will purchase preprinted forms instead of producing them internally, although dealers may produce them at minimal expense using current office automation technology. Capital and start-up costs associated with the Rule are minimal. William Blumenthal General Counsel [FR Doc. E7–24671 Filed 12–18–07: 8:45 am] [BILLING CODE 6750–01–S] estimates to the contrary, staff continues to believe this estimate is reasonable. 10 16 CFR 455.5. 11 Id. 12 U.S. Census Bureau, Table S1601. Language Spoken at Home. 2005 American Community Survey, available at: http://factfinder.census.gov/ servlet/STTable?_bm=y&-geo_id=01000US&-qr_ name=ACS_2005_EST_G00_S1601&-ds_ name=ACS_2005_EST_G00_&-_lang=en&redoLog=false&-CONTEXT=st. The table indicates that 19.4% of the U.S. population do not speak English at home, 62% of this group speaks Spanish at home, and 47.8% of those home Spanish speakers speak English less than ‘‘very well.’’ PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 FEDERAL TRADE COMMISSION Charges for Certain Disclosures AGENCY: Federal Trade Commission. 13 The hourly rate is based on Bureau of Labor Statistics estimate of the mean hourly wage for office clerks, general, No. 43-9061. National Occupational Employment and Wage Estimates, May 2006 available at: http://www.bls.gov/oes/ current/oes439061.htm. E:\FR\FM\19DEN1.SGM 19DEN1 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices Notice Regarding Charges for Certain Disclosures. ACTION: mstockstill on PROD1PC66 with NOTICES SUMMARY: The Federal Trade Commission announces that the ceiling on allowable charges under Section 612(f) of the Fair Credit Reporting Act (‘‘FCRA’’) will increase from $10.00 to $10.50 effective January 1, 2008. Under 1996 amendments to the FCRA, the Federal Trade Commission is required to increase the $8.00 amount referred to in paragraph (1)(A)(i) of Section 612(f) on January 1 of each year, based proportionally on changes in the Consumer Price Index (‘‘CPI’’), with fractional changes rounded to the nearest fifty cents. The CPI increased 29.34 percent between September 1997, the date the FCRA amendments took effect, and September 2007. This increase in the CPI and the requirement that any increase be rounded to the nearest fifty cents results in an increase in the maximum allowable charge to $10.50 effective January 1, 2008. EFFECTIVE DATE: January 1, 2008. ADDRESSES: Federal Trade Commission, Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: Keith B. Anderson, Bureau of Economics, Federal Trade Commission, Washington, DC 20580, 202–326–3428. SUPPLEMENTARY INFORMATION: Section 612(f)(1)(A) of the Fair Credit Reporting Act, which became effective in 1997, provides that a consumer reporting agency may charge a consumer a reasonable amount for making a disclosure to the consumer pursuant to Section 609 of the Act.1 The law states that, where a consumer reporting agency is permitted to impose a reasonable charge on a consumer for making a disclosure to the consumer pursuant to Section 609, the charge shall not exceed $8 and shall be indicated to the consumer before making the disclosure. Section 612(f)(2) states that the Federal Trade Commission (‘‘the Commission’’) shall increase the $8.00 maximum amount on January 1 of each year, based proportionally on changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty cents. Section 211(a)(2) of the Fair and Accurate Credit Transactions Act of 2003 (‘‘FACT Act’’) added a new Section 612(a) to the FCRA that gives consumers the right to request free 1 This provision, originally Section 612(a), was added to the FCRA in September 1996 and became effective in September 1997. It was relabelled Section 612(f) by Section 211(a)(1) of the Fair and Accurate Credit Transactions Act of 2003 (‘‘FACT Act’’), Public Law 108-159, which was signed into law on December 4, 2003. VerDate Aug<31>2005 21:40 Dec 18, 2007 Jkt 214001 annual disclosures once every 12 months. The maximum allowable charge established by this Notice does not apply to requests made under that provision. The charge does apply when a consumer who orders a file disclosure has already received a free annual disclosure and does not otherwise qualify for an additional free disclosure. The Commission considers the $8 amount referred to in paragraph (1)(A)(i) of Section 612(f) to be the baseline for the effective ceiling on reasonable charges dating from the effective date of the amended FCRA, i.e., September 30, 1997. Each year the Commission calculates the proportional increase in the Consumer Price Index (using the most general CPI, which is for all urban consumers, all items) from September 1997 to September of the current year. The Commission then determines what modification, if any, from the original base of $8 should be made effective on January 1 of the subsequent year, given the requirement that fractional changes be rounded to the nearest fifty cents. Between September 1997 and September 2007, the Consumer Price Index for all urban consumers and all items increased by 29.34 percent—from an index value of 161.2 in September 1997 to a value of 208.490 in September 2007. An increase of 29.34 percent in the $8.00 base figure would lead to a new figure of $10.35. However, because the statute directs that the resulting figure be rounded to the nearest $0.50, the maximum allowable charge should be $10.50. The Commission therefore determines that the maximum allowable charge for the year 2008 will be $10.50. By direction of the Commission. Donald S. Clark Secretary [FR Doc. E7–24672 Filed 12–18–07: 8:45 am] BILLLING CODE 6750–01–S DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP): Centers for Disease Control and Prevention (CDC) Grants for Public Health Research Dissertation, Program Announcement (PA) PAR07–231, Panel D In accordance with Section 10(a)(2) of the Federal Advisory Committee Act (Pub. L. 92–463), the Centers for Disease Control and Prevention (CDC) announces the aforementioned meeting. PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 71913 Time and Date: 1 p.m.–3 p.m., January 29, 2008 (Closed). Place: Teleconference. Status: The meeting will be closed to the public in accordance with provisions set forth in Section 552b(c) (4) and (6), Title 5 U.S.C., and the Determination of the Director, Management Analysis and Services Office, CDC, pursuant to Public Law 92– 463. Matters To Be Discussed: The meeting will include the review, discussion, and evaluation of ‘‘CDC Grants for Public Health Research Dissertation,’’ PAR07– 231, Panel D. Contact Person for More Information: Maurine Goodman, M.A., M.P.H., Scientific Review Administrator, Office of the Chief Science Officer, CDC, 1600 Clifton Road NE., Mailstop D 72, Atlanta, GA 30333, Telephone 404–639– 4737. The Director, Management Analysis and Services Office, has been delegated the authority to sign Federal Register notices pertaining to announcements of meetings and other committee management activities, for both CDC and the Agency for Toxic Substances and Disease Registry. Dated: December 12, 2007. Elaine L. Baker, Director, Management Analysis and Services Office, Centers for Disease Control and Prevention. [FR Doc. E7–24641 Filed 12–18–07; 8:45 am] BILLING CODE 4163–18–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP): Field Trails To Evaluate Efficacy of Natural Products for the Control of the Tick Vectors of Lyme Disease Spirochetes, Funding Opportunity Announcement (FOA) CK08–001; Evaluation of ReservoirTargeted Vaccine Formulations To Prevent Enzootic Transmission of Borrelia Burgdorferi (Lyme Borreliosis), FOA CK08–002 In accordance with Section 10(a)(2) of the Federal Advisory Committee Act (Pub. L. 92–463), the Centers for Disease Control and Prevention (CDC) announces the aforementioned meeting: Time and Date: 8 a.m.–5 p.m., February 8, 2008 (Closed). Place: Sheraton Gateway Atlanta Airport Hotel, 1900 Sullivan Road, E:\FR\FM\19DEN1.SGM 19DEN1

Agencies

[Federal Register Volume 72, Number 243 (Wednesday, December 19, 2007)]
[Notices]
[Pages 71912-71913]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24672]


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FEDERAL TRADE COMMISSION


Charges for Certain Disclosures

AGENCY: Federal Trade Commission.

[[Page 71913]]


ACTION: Notice Regarding Charges for Certain Disclosures.

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SUMMARY: The Federal Trade Commission announces that the ceiling on 
allowable charges under Section 612(f) of the Fair Credit Reporting Act 
(``FCRA'') will increase from $10.00 to $10.50 effective January 1, 
2008. Under 1996 amendments to the FCRA, the Federal Trade Commission 
is required to increase the $8.00 amount referred to in paragraph 
(1)(A)(i) of Section 612(f) on January 1 of each year, based 
proportionally on changes in the Consumer Price Index (``CPI''), with 
fractional changes rounded to the nearest fifty cents. The CPI 
increased 29.34 percent between September 1997, the date the FCRA 
amendments took effect, and September 2007. This increase in the CPI 
and the requirement that any increase be rounded to the nearest fifty 
cents results in an increase in the maximum allowable charge to $10.50 
effective January 1, 2008.

EFFECTIVE DATE: January 1, 2008.

ADDRESSES: Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Keith B. Anderson, Bureau of 
Economics, Federal Trade Commission, Washington, DC 20580, 202-326-
3428.

SUPPLEMENTARY INFORMATION: Section 612(f)(1)(A) of the Fair Credit 
Reporting Act, which became effective in 1997, provides that a consumer 
reporting agency may charge a consumer a reasonable amount for making a 
disclosure to the consumer pursuant to Section 609 of the Act.\1\ The 
law states that, where a consumer reporting agency is permitted to 
impose a reasonable charge on a consumer for making a disclosure to the 
consumer pursuant to Section 609, the charge shall not exceed $8 and 
shall be indicated to the consumer before making the disclosure. 
Section 612(f)(2) states that the Federal Trade Commission (``the 
Commission'') shall increase the $8.00 maximum amount on January 1 of 
each year, based proportionally on changes in the Consumer Price Index, 
with fractional changes rounded to the nearest fifty cents.
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    \1\ This provision, originally Section 612(a), was added to the 
FCRA in September 1996 and became effective in September 1997. It 
was relabelled Section 612(f) by Section 211(a)(1) of the Fair and 
Accurate Credit Transactions Act of 2003 (``FACT Act''), Public Law 
108-159, which was signed into law on December 4, 2003.
---------------------------------------------------------------------------

    Section 211(a)(2) of the Fair and Accurate Credit Transactions Act 
of 2003 (``FACT Act'') added a new Section 612(a) to the FCRA that 
gives consumers the right to request free annual disclosures once every 
12 months. The maximum allowable charge established by this Notice does 
not apply to requests made under that provision. The charge does apply 
when a consumer who orders a file disclosure has already received a 
free annual disclosure and does not otherwise qualify for an additional 
free disclosure.
    The Commission considers the $8 amount referred to in paragraph 
(1)(A)(i) of Section 612(f) to be the baseline for the effective 
ceiling on reasonable charges dating from the effective date of the 
amended FCRA, i.e., September 30, 1997. Each year the Commission 
calculates the proportional increase in the Consumer Price Index (using 
the most general CPI, which is for all urban consumers, all items) from 
September 1997 to September of the current year. The Commission then 
determines what modification, if any, from the original base of $8 
should be made effective on January 1 of the subsequent year, given the 
requirement that fractional changes be rounded to the nearest fifty 
cents.
    Between September 1997 and September 2007, the Consumer Price Index 
for all urban consumers and all items increased by 29.34 percent--from 
an index value of 161.2 in September 1997 to a value of 208.490 in 
September 2007. An increase of 29.34 percent in the $8.00 base figure 
would lead to a new figure of $10.35. However, because the statute 
directs that the resulting figure be rounded to the nearest $0.50, the 
maximum allowable charge should be $10.50.
    The Commission therefore determines that the maximum allowable 
charge for the year 2008 will be $10.50.
    By direction of the Commission.

Donald S. Clark
Secretary
[FR Doc. E7-24672 Filed 12-18-07: 8:45 am]
BILLLING CODE 6750-01-S