Agency Information Collection Activities; Proposed Collection; Comment Request, 38039-38041 [2013-15089]
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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
A. Federal Reserve Bank of Atlanta
(Chapelle Davis, Assistant Vice
President) 1000 Peachtree Street NE.,
Atlanta, Georgia 30309:
1. The Amanda Marie Rios 2012
Irrevocable Trust, Paul Roberts, Trustee;
The Amy Beth Windle Oakley 2012
Irrevocable Trust, Paul Roberts, Trustee;
The John David Copeland 2012
Irrevocable Trust, Paul Roberts, Trustee;
The Mark Edward Copeland 2012
Irrevocable Trust, Paul Roberts, Trustee;
and The Thomas Alfred Windle 2012
Irrevocable Trust, Paul Roberts, Trustee,
all of Livingston, Tennessee; to join the
currently approved control group of The
Jack Windle Irrevocable Life Insurance
Trust, Joyce D. Windle, John D.
Copeland, and Thomas A. Windle, as
Trustees; The Credit Shelter Trust under
the Last Will and Testament of Jack
Allen Windle, Joyce D. Windle, John D.
Copeland, and Thomas A. Windle, as
Trustees, and The Tennessee Qualified
Terminable Interest Trust, Joyce D.
Windle, John D. Copeland, and Thomas
A. Windle, as Trustees, all of Livingston,
Tennessee, for Overton Financial
Services, Inc., and its subsidiary, Union
Bank & Trust Company, both in
Livingston, Tennessee. Collectively, the
new control group controls 100 percent
of the voting shares of Overton
Financial Services, Inc., and Union
Bank & Trust Company.
Comments on this application must
be received by July 5, 2013.
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than July 19, 2013.
A. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
1. Town Center Bancorp, Inc., New
Lenox, Illinois; to become a bank
holding company by acquiring 100
percent of the voting shares of Town
Center Bank, Frankfort, Illinois.
Request for Comment part of the
section
below. Comments in electronic form
should be submitted by using the
following weblink: https://
public.commentworks.com/ftc/
prescreenoptoutpra (and following the
instructions on the web-based form).
Comments filed in paper form should be
mailed or delivered to the following
address: Federal Trade Commission,
Office of the Secretary, Room H–113
(Annex J), 600 Pennsylvania Avenue
NW, Washington, DC 20580, in the
manner detailed in the SUPPLEMENTARY
INFORMATION section below.
Board of Governors of the Federal Reserve
System, June 20, 2013.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
On July
21, 2010, President Obama signed into
law the Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘DoddFrank Act’’).1 The Dodd-Frank Act
substantially changed the federal legal
framework for financial services
providers. Among the changes, the
Dodd-Frank Act transferred to the CFPB
most of the FTC’s rulemaking authority
for the prescreen opt-out provisions of
the Fair Credit Reporting Act
(‘‘FCRA’’),2 on July 21, 2011.3 For
certain other portions of the FCRA, the
FTC retains its full rulemaking
authority.4
The FTC retains rulemaking authority
for its Prescreen Opt-Out Rule, 16 CFR
Part 642, 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
[FR Doc. 2013–15121 Filed 6–24–13; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL TRADE COMMISSION
Board of Governors of the Federal Reserve
System, June 20, 2013.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
Agency Information Collection
Activities; Proposed Collection;
Comment Request
[FR Doc. 2013–15120 Filed 6–24–13; 8:45 am]
AGENCY:
BILLING CODE 6210–01–P
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
FEDERAL RESERVE SYSTEM
SUMMARY:
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Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
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The FTC intends to ask the
Office of Management and Budget
(‘‘OMB’’) to extend through November
30, 2016, the current Paperwork
Reduction Act (‘‘PRA’’) clearance for the
FTC’s enforcement of the information
collection requirements in its Prescreen
Opt-Out Notice Rule (‘‘Prescreen OptOut Rule’’ or ‘‘FTC Rule’’), which
applies to certain motor vehicle dealers,
and its shared enforcement with the
Consumer Financial Protection Bureau
(‘‘CFPB’’) of the provisions (subpart F)
of the CFPB’s Regulation V regarding
other entities (‘‘CFPB Rule’’). That
clearance expires on November 30,
2013.
Comments must be filed by
August 26, 2013.
ADDRESSES: Interested parties are
invited to submit written comments
electronically or in paper form by
following the instructions in the
DATES:
PO 00000
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SUPPLEMENTARY INFORMATION
FOR FURTHER INFORMATION CONTACT:
Requests for additional information
should be addressed to Karen Jagielski,
Attorney, Division of Privacy and
Identity Protection, Bureau of Consumer
Protection, Federal Trade Commission,
600 Pennsylvania Avenue NW., NJ–
8100, Washington, DC 20580, (202) 326–
2509.
SUPPLEMENTARY INFORMATION:
1 Public
Law 111–203, 124 Stat. 1376 (2010).
U.S.C. 1681 et seq.
3 Dodd-Frank Act, at section 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 DoddFrank Act, at section 1062.
4 The Dodd-Frank Act does not transfer to the
CFPB rulemaking authority for FCRA sections
615(e) (‘‘Red Flag Guidelines and Regulations
Required’’) and 628 (‘‘Disposal of Records’’). See 15
U.S.C. 1681s(e); Public Law 111–203, section
1088(a)(10)(E). Accordingly, the Commission
retains full rulemaking authority for its ‘‘Identity
Theft Rules,’’ 16 CFR Part 681, and its rules
governing ‘‘Disposal of Consumer Report
Information and Records,’’ 16 CFR Part 682. See 15
U.S.C. 1681m, 1681w.
2 15
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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
and servicing of motor vehicles, or
both.5
On December 21, 2011, the CFPB
issued its interim final FCRA rule,
including the prescreen opt-out
provisions (subpart F) of CFPB’s
Regulation V.6 Contemporaneous with
that issuance, the CFPB and FTC had
each submitted to OMB, and received its
approval for, the agencies’ respective
burden estimates reflecting their
overlapping enforcement jurisdiction,
with the FTC supplementing its
estimates for the enforcement authority
exclusive to it regarding the class of
motor vehicle dealers noted above. The
discussion in the Burden Statement
below, following preliminary
background information, continues that
analytical framework, as appropriately
updated or otherwise refined for instant
purposes.
Background
Section 615(d) of the Fair Credit
Reporting Act (‘‘FCRA’’), 15 U.S.C.
1681m(d)(1), requires that any person
who uses a consumer report in order to
make an unsolicited firm offer of credit
or insurance to the consumer, shall
provide with each written solicitation a
clear and conspicuous statement that:
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(A) information contained in the consumer’s
consumer report was used in connection
with the transaction; (B) the consumer
received the offer of credit or insurance
because the consumer satisfied the criteria
for credit worthiness or insurability under
which the consumer was selected for the
offer; (C) if applicable, the credit or insurance
may not be extended if, after the consumer
responds to the offer, the consumer does not
meet the criteria used to select the consumer
for the offer or any applicable criteria bearing
on credit worthiness or insurability or does
not furnish any required collateral; (D) the
consumer has a right to prohibit information
contained in the consumer’s file with any
consumer reporting agency from being used
in connection with any credit or insurance
transaction that is not initiated by the
consumer; and (E) the consumer may
exercise the right referred to in subparagraph
(D) by notifying a notification system
established under section 604(e) [of the
FCRA].
Section 615(d)(1) of the FCRA [15
U.S.C. 1681m(d)(1)].
Section 615(d) of the FCRA requires
further that the disclosure statement ‘‘be
presented in such format and in such
type size and manner as to be simple
and easy to understand, as established
by the [CFPB], by rule, in consultation
with the [FTC], Federal banking
Dodd-Frank Act, at section 1029 (a), (c).
FR 79308 (Dec. 21, 2011). Subpart F of the
interim final rule became effective on December 30,
2011, and is codified at 12 CFR 1022.54.
agencies and the National Credit Union
Administration.’’
Section 642.3 of the FTC Rule 7 and
section 1022.54 8 of the CFPB Rule
implement this requirement by
establishing a ‘‘layered’’ notice
approach that requires a short, simple,
and easy-to-understand statement of
consumers’ opt-out rights on the first
page of the prescreened solicitation,
along with a longer statement
containing additional details elsewhere
in the solicitation. Specifically, the Rule
required that a short notice be placed on
the front side of the first page of the
principal promotional document in the
solicitation, or, if provided
electronically, on the same page and in
close proximity to the principal
marketing message. The Rule specifies
that the type size be larger than the type
size of the principal text on the same
page, but in no event smaller than 12point type, or if provided by electronic
means, then reasonable steps shall be
taken to ensure that the type size is
larger than the type size of the principal
text on the same page. The Rule further
provides that the long notice, that
appears elsewhere in the solicitation, be
in a type size that is no smaller than the
type size of the principal text on the
same page, but in no event smaller than
8-point type. The long notice shall begin
with a heading in capital letters and
underlined, and identifying the long
notice as the ‘‘PRESCREEN & OPT–OUT
NOTICE’’ in a type style that is distinct
from the principal type style used on
the same page and be set apart from
other text on the page. The Rule also
includes model notices in English and
Spanish.
Burden Statement
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.
3502(3); 5 CFR 1320.3(c). The FTC is
seeking clearance for its assumed share
of the estimated PRA burden regarding
the disclosure requirements under the
FTC and CFPB Rules.
The currently cleared FTC
apportionment of its share of PRA
burden 9 is the following:
Total Number of Respondents: 487
Total Burden Hours: 974
Total Labor Costs: $243,750
Total Capital/Non-Labor Costs: $0
5 See
6 76
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7 16
CFR 642.3.
CFR 1022.54.
9 OMB Control No. 3084–0132.
8 12
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These figures were determined as
follows:
A. Number of Respondents
FTC staff estimates that between 500
and 750 entities make prescreened
solicitations. Staff conservatively
assumed the high-end of this range for
further apportioning. From the total of
750 respondents, FTC staff assumed a
30% ‘‘carve-out’’ 10 to the FTC for the
above-noted motor vehicle dealers. This
resulted in an estimate of 225 motor
vehicle dealers subject to the FTC’s
jurisdiction. After deducting the latter
figure from the total of 750 respondents,
that left 525 respondents to divide 50:50
between the agencies. With rounding,
the FTC apportioned 262 of those
respondents to its burden estimates;
adding to that the estimated total of 225
motor vehicle dealers resulted in 487
respondents for the FTC.
B. FTC Share of Burden Hours: 974
hours
Staff assumed that respondents will
each spend approximately 2 hours to
monitor compliance with the Rule.
Thus, 487 respondents for the FTC
multiplied by the two hour estimate per
respondent resulted in 974 burden
hours apportioned to the FTC.
C. FTC Share of Labor Costs: $243,750
Staff assumed that in-house legal
counsel for respondents would handle
most of the compliance review, and at
an estimated average hourly wage of
$250 per hour.
D. Capital/Non-Labor Costs: $0
Assumption: Capital and other nonlabor costs should be minimal, at most,
since the Rule has been in effect several
years, with covered entities now
equipped to provide the required notice.
Based on staff’s review of industry
data and its experience in this area, we
have no information to suggest that
these figures are not still valid.
10 For purposes of estimating its motor vehicle
dealer furnisher carve-out, the FTC has assumed
that 30% of the respondents constitute the number
of motor vehicle dealers over which the FTC retains
exclusive jurisdiction under the Dodd-Frank Act.
To derive this 30% estimate, FTC staff divided an
estimated number of car dealers—55,417 (based on
industry data for the number of franchise/new car
and independent/used car dealers) by 199,500
(Commission staff’s PRA estimate of the number of
entities that extend credit to consumers subject to
FTC jurisdiction under the FCRA, pre-Dodd-Frank,
for the Risk-Based Pricing regulations, as detailed
at 75 FR 2724, 2748 n.18 (Jan. 15, 2010)). This came
out to 28%. Staff increased this amount to 30% to
account for other motor vehicle dealer types
(motorbikes, boats, other recreational) also covered
within the definition of ‘‘motor vehicle dealer’’
under section 1029(a) of the Dodd-Frank Act.
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Federal Register / Vol. 78, No. 122 / Tuesday, June 25, 2013 / Notices
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Request for Comment
Interested parties are invited to
submit written comments. Comments
should refer to ‘‘Prescreen Opt-Out
Disclosure Rule: FTC File No. P075417’’
to facilitate the organization of
comments. Please note that your
comment—including your name and
your state—will be placed on the public
record of this proceeding, including on
the publicly accessible FTC Web site, at
https://www.ftc.gov/os/public
comments.shtm.
Because comments will be made
public, they should not include any
sensitive personal information, such as
any individual’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.
Comments also should not include any
sensitive health information, such as
medical records or other individually
identifiable health information. In
addition, comments should not include
‘‘[t]rade secret or any commercial or
financial information which is obtained
from any person and which is privileged
or confidential’’ as provided in Section
6(f) of the Federal Trade Commission
Act (‘‘FTC Act’’), 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2).
Comments containing matter 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).11
Because paper mail addressed to the
FTC is subject to delay due to
heightened security screening, please
consider submitting your comments in
electronic form. Comments filed in
electronic form should be submitted
using the following weblink https://
public.commentworks.com/ftc/
prescreenoptoutpra (and following the
instructions on the web-based form). To
ensure that the Commission considers
an electronic comment, you must file it
on the web-based form at the weblink
https://public.commentworks.com/ftc/
prescreenoptoutpra. If this Notice
appears at www.regulations.gov/search/
index.jsp, you may also file an
electronic comment through that Web
site. The Commission will consider all
comments that regulations.gov forwards
to it.
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,
whether filed in paper or electronic
form. Comments received will be
available to the public on the FTC Web
site, to the extent practicable, at https://
www.ftc.gov/os/publiccomments.shtm.
As a matter of discretion, the FTC makes
every effort to remove home contact
information for individuals from the
public comments it receives before
placing those comments on the FTC
Web site. More information, including
routine uses permitted by the Privacy
Act, may be found in the FTC’s privacy
policy, at https://www.ftc.gov/ftc/
privacy.shtm.
Under the PRA, 44 U.S.C. 3501–3521,
federal agencies must obtain approval
from OMB for each collection of
information they conduct or sponsor.
‘‘Collection of information’’ means
agency requests or requirements that
members of the public submit reports,
keep records, or provide information to
a third party. 44 U.S.C. 3502(3); 5 CFR
1320.3(c). As required by section
3506(c)(2)(A) of the PRA, the FTC is
providing this opportunity for public
comment before requesting that OMB
extend the existing paperwork clearance
for the regulations noted herein.
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. All comments should be
filed as prescribed in the ADDRESSES
section above, and must be received on
or before August 26, 2013.
11 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See FTC
Rule 4.9(c), 16 CFR 4.9(c).
Agency Information Collection
Activities; Submission for OMB review;
Comment Request
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John F. Daly,
Acting General Counsel.
[FR Doc. 2013–15089 Filed 6–24–13; 8:45 am]
BILLING CODE 6750–01–P
FEDERAL TRADE COMMISSION
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
AGENCY:
PO 00000
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38041
The FTC seeks public
comments on its proposal to the Office
of Management and Budget (‘‘OMB’’) to
extend through August 31, 2016, the
current Paperwork Reduction Act
(‘‘PRA’’) clearance for the FTC’s
enforcement of the information
collection requirements in its in its
Telemarketing Sales Rule (‘‘TSR’’). That
clearance expires on August 31, 2013.
DATES: Comments must be filed by July
25, 2013.
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 ‘‘TSR PRA Comment, FTC
File No. P094400’’ on your comment
and file your comment online at
https://ftcpublic.commentworks.com/
ftc/tsrrulepra2 by following the
instructions on the web-based form. If
you prefer to file your comment on
paper, mail or deliver your comment to
the following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex J), 600
Pennsylvania Avenue NW., Washington,
DC 20580.
FOR FURTHER INFORMATION CONTACT:
Craig Tregillus, Attorney, Division of
Marketing Practices, Bureau of
Consumer Protection, Federal Trade
Commission, Room H–238, 600
Pennsylvania Ave. NW., Washington,
DC 20580, (202) 326–2970.
SUPPLEMENTARY INFORMATION: On April
1, 2013, the Commission sought
comment on the information collection
requirements associated with the
Telemarketing Sales Rule. 78 FR 19483
(Apr. 1, 2013). No comments were
received. Pursuant to the OMB
regulations, 5 CFR Part 1320, that
implement the PRA, 44 U.S.C. 3501 et
seq., the FTC is providing this second
opportunity for public comment while
seeking OMB approval to renew the preexisting clearance for those information
collection requirements. For more
details about the Rule requirements, the
background behind these information
collection provisions, and the basis for
the calculations summarized below, see
78 FR 19483.
Title: Telemarketing Sales Rule, 16
CFR Part 310.
OMB Control Number: 3084–0097.
Type of Review: Extension of
currently approved collection.
Estimated Annual Burden:
Hours: 1,320,119 hours.1
SUMMARY:
1 This is a 135 hour increase from the 1,319,984
hours burden estimate in the April 1, 2013 Federal
Register Notice, attributable to an inadvertent error
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[Federal Register Volume 78, Number 122 (Tuesday, June 25, 2013)]
[Notices]
[Pages 38039-38041]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15089]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The FTC intends to ask the Office of Management and Budget
(``OMB'') to extend through November 30, 2016, the current Paperwork
Reduction Act (``PRA'') clearance for the FTC's enforcement of the
information collection requirements in its Prescreen Opt-Out Notice
Rule (``Prescreen Opt-Out Rule'' or ``FTC Rule''), which applies to
certain motor vehicle dealers, and its shared enforcement with the
Consumer Financial Protection Bureau (``CFPB'') of the provisions
(subpart F) of the CFPB's Regulation V regarding other entities (``CFPB
Rule''). That clearance expires on November 30, 2013.
DATES: Comments must be filed by August 26, 2013.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form by following the instructions in the
Request for Comment part of the SUPPLEMENTARY INFORMATION section
below. Comments in electronic form should be submitted by using the
following weblink: https://public.commentworks.com/ftc/prescreenoptoutpra (and following the instructions on the web-based
form). Comments filed in paper form should be mailed or delivered to
the following address: Federal Trade Commission, Office of the
Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW,
Washington, DC 20580, in the manner detailed in the SUPPLEMENTARY
INFORMATION section below.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be addressed to Karen Jagielski, Attorney, Division of Privacy
and Identity Protection, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue NW., NJ-8100, Washington, DC 20580,
(202) 326-2509.
SUPPLEMENTARY INFORMATION: On July 21, 2010, President Obama signed
into law the Dodd-Frank Wall Street Reform and Consumer Protection Act
(``Dodd-Frank Act'').\1\ The Dodd-Frank Act substantially changed the
federal legal framework for financial services providers. Among the
changes, the Dodd-Frank Act transferred to the CFPB most of the FTC's
rulemaking authority for the prescreen opt-out provisions of the Fair
Credit Reporting Act (``FCRA''),\2\ on July 21, 2011.\3\ For certain
other portions of the FCRA, the FTC retains its full rulemaking
authority.\4\
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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, at section 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, at section
1062.
\4\ The Dodd-Frank Act does not transfer to the CFPB rulemaking
authority for FCRA sections 615(e) (``Red Flag Guidelines and
Regulations Required'') and 628 (``Disposal of Records''). See 15
U.S.C. 1681s(e); Public Law 111-203, section 1088(a)(10)(E).
Accordingly, the Commission retains full rulemaking authority for
its ``Identity Theft Rules,'' 16 CFR Part 681, and its rules
governing ``Disposal of Consumer Report Information and Records,''
16 CFR Part 682. See 15 U.S.C. 1681m, 1681w.
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The FTC retains rulemaking authority for its Prescreen Opt-Out
Rule, 16 CFR Part 642, 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
[[Page 38040]]
and servicing of motor vehicles, or both.\5\
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\5\ See Dodd-Frank Act, at section 1029 (a), (c).
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On December 21, 2011, the CFPB issued its interim final FCRA rule,
including the prescreen opt-out provisions (subpart F) of CFPB's
Regulation V.\6\ Contemporaneous with that issuance, the CFPB and FTC
had each submitted to OMB, and received its approval for, the agencies'
respective burden estimates reflecting their overlapping enforcement
jurisdiction, with the FTC supplementing its estimates for the
enforcement authority exclusive to it regarding the class of motor
vehicle dealers noted above. The discussion in the Burden Statement
below, following preliminary background information, continues that
analytical framework, as appropriately updated or otherwise refined for
instant purposes.
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\6\ 76 FR 79308 (Dec. 21, 2011). Subpart F of the interim final
rule became effective on December 30, 2011, and is codified at 12
CFR 1022.54.
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Background
Section 615(d) of the Fair Credit Reporting Act (``FCRA''), 15
U.S.C. 1681m(d)(1), requires that any person who uses a consumer report
in order to make an unsolicited firm offer of credit or insurance to
the consumer, shall provide with each written solicitation a clear and
conspicuous statement that:
(A) information contained in the consumer's consumer report was used
in connection with the transaction; (B) the consumer received the
offer of credit or insurance because the consumer satisfied the
criteria for credit worthiness or insurability under which the
consumer was selected for the offer; (C) if applicable, the credit
or insurance may not be extended if, after the consumer responds to
the offer, the consumer does not meet the criteria used to select
the consumer for the offer or any applicable criteria bearing on
credit worthiness or insurability or does not furnish any required
collateral; (D) the consumer has a right to prohibit information
contained in the consumer's file with any consumer reporting agency
from being used in connection with any credit or insurance
transaction that is not initiated by the consumer; and (E) the
consumer may exercise the right referred to in subparagraph (D) by
notifying a notification system established under section 604(e) [of
the FCRA].
Section 615(d)(1) of the FCRA [15 U.S.C. 1681m(d)(1)].
Section 615(d) of the FCRA requires further that the disclosure
statement ``be presented in such format and in such type size and
manner as to be simple and easy to understand, as established by the
[CFPB], by rule, in consultation with the [FTC], Federal banking
agencies and the National Credit Union Administration.''
Section 642.3 of the FTC Rule \7\ and section 1022.54 \8\ of the
CFPB Rule implement this requirement by establishing a ``layered''
notice approach that requires a short, simple, and easy-to-understand
statement of consumers' opt-out rights on the first page of the
prescreened solicitation, along with a longer statement containing
additional details elsewhere in the solicitation. Specifically, the
Rule required that a short notice be placed on the front side of the
first page of the principal promotional document in the solicitation,
or, if provided electronically, on the same page and in close proximity
to the principal marketing message. The Rule specifies that the type
size be larger than the type size of the principal text on the same
page, but in no event smaller than 12-point type, or if provided by
electronic means, then reasonable steps shall be taken to ensure that
the type size is larger than the type size of the principal text on the
same page. The Rule further provides that the long notice, that appears
elsewhere in the solicitation, be in a type size that is no smaller
than the type size of the principal text on the same page, but in no
event smaller than 8-point type. The long notice shall begin with a
heading in capital letters and underlined, and identifying the long
notice as the ``PRESCREEN & OPT-OUT NOTICE'' in a type style that is
distinct from the principal type style used on the same page and be set
apart from other text on the page. The Rule also includes model notices
in English and Spanish.
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\7\ 16 CFR 642.3.
\8\ 12 CFR 1022.54.
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Burden Statement
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. 3502(3); 5 CFR 1320.3(c). The FTC is seeking clearance
for its assumed share of the estimated PRA burden regarding the
disclosure requirements under the FTC and CFPB Rules.
The currently cleared FTC apportionment of its share of PRA burden
\9\ is the following:
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\9\ OMB Control No. 3084-0132.
Total Number of Respondents: 487
Total Burden Hours: 974
Total Labor Costs: $243,750
Total Capital/Non-Labor Costs: $0
These figures were determined as follows:
A. Number of Respondents
FTC staff estimates that between 500 and 750 entities make
prescreened solicitations. Staff conservatively assumed the high-end of
this range for further apportioning. From the total of 750 respondents,
FTC staff assumed a 30% ``carve-out'' \10\ to the FTC for the above-
noted motor vehicle dealers. This resulted in an estimate of 225 motor
vehicle dealers subject to the FTC's jurisdiction. After deducting the
latter figure from the total of 750 respondents, that left 525
respondents to divide 50:50 between the agencies. With rounding, the
FTC apportioned 262 of those respondents to its burden estimates;
adding to that the estimated total of 225 motor vehicle dealers
resulted in 487 respondents for the FTC.
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\10\ For purposes of estimating its motor vehicle dealer
furnisher carve-out, the FTC has assumed that 30% of the respondents
constitute the number of motor vehicle dealers over which the FTC
retains exclusive jurisdiction under the Dodd-Frank Act. To derive
this 30% estimate, FTC staff divided an estimated number of car
dealers--55,417 (based on industry data for the number of franchise/
new car and independent/used car dealers) by 199,500 (Commission
staff's PRA estimate of the number of entities that extend credit to
consumers subject to FTC jurisdiction under the FCRA, pre-Dodd-
Frank, for the Risk-Based Pricing regulations, as detailed at 75 FR
2724, 2748 n.18 (Jan. 15, 2010)). This came out to 28%. Staff
increased this amount to 30% to account for other motor vehicle
dealer types (motorbikes, boats, other recreational) also covered
within the definition of ``motor vehicle dealer'' under section
1029(a) of the Dodd-Frank Act.
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B. FTC Share of Burden Hours: 974 hours
Staff assumed that respondents will each spend approximately 2
hours to monitor compliance with the Rule. Thus, 487 respondents for
the FTC multiplied by the two hour estimate per respondent resulted in
974 burden hours apportioned to the FTC.
C. FTC Share of Labor Costs: $243,750
Staff assumed that in-house legal counsel for respondents would
handle most of the compliance review, and at an estimated average
hourly wage of $250 per hour.
D. Capital/Non-Labor Costs: $0
Assumption: Capital and other non-labor costs should be minimal, at
most, since the Rule has been in effect several years, with covered
entities now equipped to provide the required notice.
Based on staff's review of industry data and its experience in this
area, we have no information to suggest that these figures are not
still valid.
[[Page 38041]]
Request for Comment
Interested parties are invited to submit written comments. Comments
should refer to ``Prescreen Opt-Out Disclosure Rule: FTC File No.
P075417'' to facilitate the organization of comments. Please note that
your comment--including your name and your state--will be placed on the
public record of this proceeding, including on the publicly accessible
FTC Web site, at https://www.ftc.gov/os/publiccomments.shtm.
Because comments will be made public, they should not include any
sensitive personal information, such as any individual'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. Comments also
should not include any sensitive health information, such as medical
records or other individually identifiable health information. In
addition, comments should not include ``[t]rade secret or any
commercial or financial information which is obtained from any person
and which is privileged or confidential'' as provided in Section 6(f)
of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter 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).\11\
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\11\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR
4.9(c).
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Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted using the following weblink https://public.commentworks.com/ftc/prescreenoptoutpra (and following the instructions on the web-based
form). To ensure that the Commission considers an electronic comment,
you must file it on the web-based form at the weblink https://public.commentworks.com/ftc/prescreenoptoutpra. If this Notice appears
at www.regulations.gov/search/index.jsp, you may also file an
electronic comment through that Web site. The Commission will consider
all comments that regulations.gov forwards to it.
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, whether filed in paper or
electronic form. Comments received will be available to the public on
the FTC Web site, to the extent practicable, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the FTC makes every
effort to remove home contact information for individuals from the
public comments it receives before placing those comments on the FTC
Web site. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at https://www.ftc.gov/ftc/privacy.shtm.
Under the PRA, 44 U.S.C. 3501-3521, federal agencies must obtain
approval from OMB for each collection of information they conduct or
sponsor. ``Collection of information'' means agency requests or
requirements that members of the public submit reports, keep records,
or provide information to a third party. 44 U.S.C. 3502(3); 5 CFR
1320.3(c). As required by section 3506(c)(2)(A) of the PRA, the FTC is
providing this opportunity for public comment before requesting that
OMB extend the existing paperwork clearance for the regulations noted
herein.
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. All comments
should be filed as prescribed in the ADDRESSES section above, and must
be received on or before August 26, 2013.
John F. Daly,
Acting General Counsel.
[FR Doc. 2013-15089 Filed 6-24-13; 8:45 am]
BILLING CODE 6750-01-P