Statutory Delays of Notifications and Prohibitions of Disclosure, 54690-54691 [2011-22593]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 76, Number 171 (Friday, September 2, 2011)]
[Rules and Regulations]
[Pages 54690-54691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22593]


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FEDERAL TRADE COMMISSION

16 CFR Part 2


Statutory Delays of Notifications and Prohibitions of Disclosure

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is 
establishing an internal procedure for delegating its authority to seek 
court orders to delay notification and prohibit disclosure of 
Commission compulsory process under the Right to Financial Privacy Act 
(RFPA), the Electronic

[[Page 54691]]

Communications Privacy Act (ECPA), and the U.S. SAFE WEB Act (``SAFE 
WEB''). This procedure is intended to make the process for seeking such 
orders more administratively efficient.

DATES: This final rule is effective September 2, 2011.

FOR FURTHER INFORMATION CONTACT: Alex Tang, atang@ftc.gov, 202-326-
2447; or W. Ashley Gum, wgum@ftc.gov, 202-326-3006; Federal Trade 
Commission, Office of the General Counsel, 600 Pennsylvania Avenue NW., 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION: The RFPA and the ECPA require the FTC, in 
certain cases, to notify customers when seeking their records from 
financial institutions or service providers subject to those statutes 
in the Commission's law enforcement investigations and proceedings. See 
12 U.S.C. 3405 (RFPA); 18 U.S.C. 2703(b)(1)(B) (ECPA). These statutes, 
and SAFE WEB, also authorize the filing of an application seeking an 
order to delay such notification and to prohibit the recipient of the 
agency's compulsory process from disclosing that the FTC has requested 
or received the records, where such notice or disclosure would 
jeopardize the FTC's investigation. See 12 U.S.C. 3409 (RFPA); 18 
U.S.C. 2705 (ECPA); see also 15 U.S.C. 57b-2a(b) (SAFE WEB). In cases 
where these statutes do not require customer notification, SAFE WEB 
separately authorizes the FTC to seek an order prohibiting the 
recipient of FTC compulsory process from disclosing the existence of 
such process to any person. See 15 U.S.C. 57b-2a(c).
    Under this final rule, delegating the Commission's authority 
pursuant to Reorganization Plan No. 4 of 1961, 26 FR 6191, either an 
individual Commissioner or the General Counsel may authorize the staff 
to file actions seeking delay of notification and prohibition of 
disclosure under the statutes cited above. This delegation will 
facilitate the Commission's exercise of this authority and, as solely a 
matter of internal agency administration, is not intended to confer any 
enforceable right, privilege, or benefit on behalf of any person.

Procedural Requirements

A. Administrative Procedure Act

    The FTC has determined that publication of this rule without prior 
notice and the opportunity for public comment is warranted because this 
is a rule of agency procedure and practice and therefore is exempt from 
notice and comment rulemaking requirements of the Administrative 
Procedure Act, 5 U.S.C. 553(b)(A). Because it is a non-substantive 
rule, the Commission shall make the rule effective immediately upon 
publication. See 5 U.S.C. 553(d)(2).

B. Regulatory Flexibility Act

    Because the Commission has determined that it may issue this rule 
without public comment, the Commission is also not required to publish 
any initial or final regulatory flexibility analysis under the 
Regulatory Flexibility Act as part of such action. See 5 U.S.C. 601(2), 
604(a).

C. Paperwork Reduction Act of 1995

    The final rule is not subject to the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.) because it does not contain any new information 
collection requirements.

List of Subjects in 16 CFR Part 2

    Administrative practice and procedure.

    For the reasons set forth above, the Federal Trade Commission is 
amending Subpart A of part 2 of title 16, Code of Federal Regulations, 
as follows:

PART 2--NONADJUDICATIVE PROCEDURES

0
1. The authority citation for part 2 continues to read as follows:

    Authority:  15 U.S.C. 46, unless otherwise noted.

Subpart A--Inquiries; Investigations; Compulsory Processes

0
2. Add Sec.  2.17 to read as follows:


Sec.  2.17  Statutory delays of notifications and prohibitions of 
disclosure.

    Upon authorization by the Commissioner who issues compulsory 
process pursuant to Sec.  2.7(a) or, alternatively, upon authorization 
by the General Counsel, Commission attorneys may seek to delay 
notifications or prohibit disclosures pursuant to the Right to 
Financial Privacy Act (12 U.S.C. 3409), the Electronic Communications 
Privacy Act (18 U.S.C. 2705), or section 7 of the U.S. SAFE WEB Act (15 
U.S.C. 57b-2a).

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-22593 Filed 9-1-11; 8:45 am]
BILLING CODE 6750-01-P