Prescreen Opt-Out Notice Rule, 59226-59234 [2020-19176]
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Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules
airspace that extends beyond 12 miles of the
shoreline.
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AAL AK E5 Kodiak, AK [Amend]
Kodiak Airport, AK
(Lat. 57°44′59″ N, Long. 152°29′38″ W)
That airspace extending upward from 700
feet above the surface within an 6.9-mile
radius of Kodiak Airport, AK, and within 3.1
miles each side of the 072° bearing from
Kodiak Airport, AK, extending from the 6.9mile radius from the airport, to 12.2 miles
east of the airport, and within 1 mile each
side of the 091° bearing from Kodiak Airport,
AK, extending from the 6.9-mile radius from
the airport, to 8.2 miles east of the airport,
and that airspace extending upward from
1,200 feet above the surface within a 73-mile
radius of the Kodiak Airport, AK, excluding
that airspace extending beyond 12 miles of
the shoreline.
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AAL AK E5 Homer, AK [Amend]
Homer Airport, AK
(Lat. 59°38′44″ N, Long. 151°28′36″ W)
Kachemak NDB
(Lat. 59°38′29″ N, Long. 151°30′01″ W)
That airspace extending upward from 700
feet above the surface within a 6.7-mile
radius of the Homer Airport, AK, and within
4 miles each side of the 055° bearing from the
Homer Airport, AK, to 12-miles northeast of
the Homer Airport, AK, and within 8-miles
north and 4.2-miles south of the Kachemak
NDB 235° bearing extending from the
Kachemak NDB to 16 miles southwest of the
Kachemak NDB; and that airspace extending
upward from 1,200 feet above the surface
within a 73-mile radius of the Homer Airport,
AK.
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Issued in Washington, DC, on September
14, 2020.
Scott M. Rosenbloom,
Acting Manager, Rules and Regulations
Group.
[FR Doc. 2020–20567 Filed 9–18–20; 8:45 am]
BILLING CODE 4910–13–P
FEDERAL TRADE COMMISSION
16 CFR Parts 642 and 698
RIN 3084–AB63
Prescreen Opt-Out Notice Rule
Federal Trade Commission.
Notice of proposed rulemaking;
request for public comment.
AGENCY:
ACTION:
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
requests public comment on its
Prescreen Opt-Out Notice Rule as part of
the FTC’s systematic review of all
current Commission regulations and
guides. In addition, the FTC is
proposing to amend the Rule to
correspond to changes made to the Fair
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SUMMARY:
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Credit Reporting Act (‘‘FCRA’’) by the
Dodd-Frank Act and to reinstate a
model prescreen opt-out notice.
DATES: Written comments must be
received on or before December 7, 2020.
ADDRESSES: Interested parties may file a
comment online or on paper by
following the Request for Comment part
of the SUPPLEMENTARY INFORMATION
section below. Write ‘‘Prescreen OptOut Notice Rule, 16 CFR part 642,
Project No. P205408’’ 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 B), 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 B),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
David Lincicum (202–326–2773),
Division of Privacy and Identity
Protection, Bureau of Consumer
Protection, Federal Trade Commission,
600 Pennsylvania Avenue NW,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
A. The Prescreen Opt-Out Notice Rule
Section 615(d) of the FCRA 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 (‘‘prescreened offer’’ or
‘‘prescreened solicitation’’) 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
1 15
PO 00000
U.S.C. 1681m(d).
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connection with any credit or insurance
transaction that is not initiated by the
consumer; and (E) the consumer may
exercise the opt-out right by notifying a
notification system established under
section 604(e) of the FCRA.
The Fair and Accurate Credit
Transactions Act of 2003 (‘‘FACT Act’’)
was signed into law on December 4,
2003. Public Law 108–159, 117 Stat.
1952. Section 213(a) of the FACT Act
amended FCRA section 615(d) to
require that the statement mandated by
section 615(d) ‘‘be presented in such
format and in such type size and
manner as to be simple and easy to
understand, as established by the
Commission, by rule, in consultation
with the Federal banking agencies and
the National Credit Union
Administration.’’ On August 1, 2005,
the FTC issued its Prescreen Opt-Out
Notice Rule.2
B. Dodd-Frank Act
The Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘DoddFrank Act’’) was signed into law in
2010.3 The Dodd-Frank Act
substantially changed the federal legal
framework for financial services
providers. Among the changes, the
Dodd-Frank Act transferred to the
Consumer Financial Protection Bureau
(‘‘CFPB’’) the Commission’s rulemaking
authority under portions of the FCRA.4
Accordingly, in 2012, the Commission
rescinded several of its FCRA rules,
which had been replaced by rules
issued by the CFPB.5 The FTC retained
rulemaking authority for other rules to
the extent the rules apply to motor
vehicle dealers described in section
1029(a) of the Dodd-Frank Act 6 that are
predominantly engaged in the sale and
servicing of motor vehicles, the leasing
and servicing of motor vehicles, or both
(‘‘motor vehicle dealers’’).7 The retained
rules include the Prescreen Opt-Out
Notice Rule, which now applies only to
motor vehicle dealers.8 Consumer report
users originally covered by the
Prescreen Opt-Out Notice Rule that are
not motor vehicle dealers are now
covered by the CFPB’s rule.9
On May 22, 2019, the FTC rescinded
several FCRA model notices and forms
2 70
FR 5021 (Aug. 1, 2005).
Law 111–203 (2010).
4 15 U.S.C. 1681 et seq. The Dodd-Frank Act does
not transfer to the CFPB rulemaking authority for
section 615(e) of the FCRA (‘‘Red Flag Guidelines
and Regulations Required’’) and section 628 of the
FCRA (‘‘Disposal of Records’’). See 15 U.S.C.
1681s(e).
5 77 FR 22200 (April 13, 2012); 12 U.S.C. 5519.
6 15 U.S.C. 5519.
7 77 FR 22200 (April 13, 2012).
8 Id.
9 12 CFR 1022.54.
3 Public
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that were no longer necessary because of
the Dodd-Frank Act’s change to its
rulemaking authority.10 The prescreen
opt-out model notice was included in
this rescission.
II. Technical Changes To Correspond to
Statutory Changes Resulting From the
Dodd-Frank Act
The Commission promulgated the
Prescreen Opt-Out Notice Rule at a time
when it had rulemaking authority for a
broader group of consumer report users.
While the Dodd-Frank Act did not
change the Commission’s enforcement
authority for the Prescreen Opt-Out
Notice Rule, it did narrow the
Commission’s rulemaking authority
with respect to the Rule. It now covers
only motor vehicle dealers.11 The
amendments in the Dodd-Frank Act
necessitate technical revisions to the
Prescreen Opt-Out Notice Rule to ensure
that the regulation is consistent with the
text of the amended FCRA. Accordingly,
the Commission proposes to modify the
Prescreen Opt-Out Notice Rule to reflect
the Rule’s actual scope.
The proposed amendment to § 642.1
narrows the scope of the Prescreen OptOut Notice Rule to those entities set
forth in the Dodd-Frank Act that are
predominantly engaged in the sale and
servicing of motor vehicles, excluding
those dealers that directly extend credit
to consumers and do not routinely
assign the extensions of credit to an
unaffiliated third party.12 It does so by
replacing the general term ‘‘person’’
with the term ‘‘motor vehicle dealers,’’
as defined in amended § 642.2.
The proposed amendment to § 642.2
adds a definition of ‘‘motor vehicle
dealer’’ that defines motor vehicle
dealers as entities excluded from CFPB
jurisdiction as described in the DoddFrank Act.13
The proposed amendment also
reinstates the model prescreen opt-out
notice as Appendix C to Part 698. The
model form is unchanged from the
previous model notice and is identical
to the CFPB’s model notice.14 The
proposed amendment also revises
10 84
FR 23471 (May 22, 2019).
U.S.C. 1681s(e)(1); 12 U.S.C. 5519.
12 12 U.S.C. 5519.
13 Id.
14 12 CFR part 1022, App. D. In rescinding this
and other model notices in light of changes to
regulatory authority under the Dodd-Frank Act, see
84 FR 23471, the Commission noted that covered
entities should look to the corresponding forms
issued by the CFPB to obtain the appropriate model
forms and disclosures. Although motor vehicle
dealers can use the CFPB’s existing form, in
conjunction with revising the scope of the
Prescreen Opt-Out Notice Rule the Commission is
reinstating a model form for the Rule in case the
CFPB were to revise its corresponding rule, and the
corresponding model, in the future.
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§ 698.2 to include Appendix C in the list
of model notices.
The amendments make no substantive
changes to the Rule.
III. Regulatory Review of the Prescreen
Opt-Out Notice Rule
In addition to proposing the changes
described above, the Commission seeks
information about the costs and benefits
of the Rule, and its regulatory and
economic impact. It has been fifteen
years since the Rule was enacted.
Consistent with its practice of reviewing
all of its rules and guides periodically,
the Commission seeks to ascertain
whether changes in technology,
business models, or the law warrant
modification or rescission of the Rule.
As part of this review the Commission
solicits comments on, among other
things, the economic impact and
benefits of the Prescreen Opt-Out Notice
Rule; possible conflict between the
Prescreen Opt-Out Notice Rule and
state, local, or other federal laws or
regulations; and the effect on the
Prescreen Opt-Out Notice Rule of any
technological, economic, or other
industry changes.
Issues for Comment
The Commission requests written
comment on any or all of the following
questions. These questions are designed
to assist the public and should not be
construed as a limitation on the issues
about which public comments may be
submitted. The Commission requests
that responses to its questions be as
specific as possible, including a
reference to the question being
answered, and refer to empirical data or
other evidence upon which the
comment is based whenever available
and appropriate.
1. Is there a continuing need for
specific provisions of the Prescreen OptOut Notice Rule? Why or why not?
2. What benefits has the Prescreen
Opt-Out Notice Rule provided to
consumers? What evidence supports the
asserted benefits?
3. What modifications, if any, should
be made to the Prescreen Opt-Out
Notice Rule to increase the benefits to
consumers?
a. What evidence supports the
proposed modifications?
b. How would these modifications
affect the costs imposed by the
Prescreen Opt-Out Notice Rule?
4. What significant costs, if any, has
the Prescreen Opt-Out Notice Rule
imposed on consumers? What evidence
supports the asserted costs?
5. What modifications, if any, should
be made to the Prescreen Opt-Out
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Notice Rule to reduce any costs imposed
on consumers?
a. What evidence supports the
proposed modifications?
b. How would these modifications
affect the benefits provided by the
Prescreen Opt-Out Notice Rule?
6. What benefits, if any, has the
Prescreen Opt-Out Notice Rule provided
to businesses, including small
businesses? What evidence supports the
asserted benefits?
7. What modifications, if any, should
be made to the Prescreen Opt-Out
Notice Rule to increase its benefits to
businesses, including small businesses?
a. What evidence supports the
proposed modifications?
b. How would these modifications
affect the costs the Prescreen Opt-Out
Notice Rule imposes on businesses,
including small businesses?
c. How would these modifications
affect the benefits to consumers?
8. What significant costs, if any,
including costs of compliance, has the
Prescreen Opt-Out Notice Rule imposed
on businesses, including small
businesses? What evidence supports the
asserted costs?
9. What modifications, if any, should
be made to the Prescreen Opt-Out
Notice Rule to reduce the costs imposed
on businesses, including small
businesses?
a. What evidence supports the
proposed modifications?
b. How would these modifications
affect the benefits provided by the
Prescreen Opt-Out Notice Rule?
10. What evidence is available
concerning the degree of industry
compliance with the Prescreen Opt-Out
Notice Rule?
11. What modification, if any, should
be made to the Prescreen Opt-Out
Notice Rule to account for changes in
relevant technology or economic
conditions? What evidence supports the
proposed modifications?
12. Does the Prescreen Opt-Out Notice
Rule overlap or conflict with other
federal, state, or local laws or
regulations? If so, how?
a. What evidence supports the
asserted conflicts?
b. With reference to the asserted
conflicts, should the Prescreen Opt-Out
Notice Rule be modified? If so, why, and
how? If not, why not?
13. The Commission proposes to
amend the Rule to reflect that the
Commission’s rulemaking authority has
been revised by statute to apply
exclusively to motor vehicle dealers.
Are the proposed modifications
appropriate? Should additional
amendments be made? Would these
amendments create conflicts with any
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other federal, state, or local regulations
or laws?
14. The Commission proposes to
provide a model prescreen opt-out
notice that motor vehicle dealers may
use. Should the model be modified?
a. What evidence supports the
proposed modifications?
b. How would these modifications
affect the benefits provided by the
Prescreen Opt-Out Notice Rule?
IV. Request for Comment
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before December 7, 2020. Write
‘‘Prescreen Opt-Out Notice Rule, 16 CFR
part 642, Project No. P205408’’ on the
comment. 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.
Because of 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 strongly encourage
you to submit your comment online
through the https://www.regulations.gov
website. To ensure the Commission
considers your online comment, please
follow the instructions on the webbased form.
If you file your comment on paper,
write ‘‘Prescreen Opt-Out Notice Rule,
16 CFR part 642, Project No. P205408’’
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 B), 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 B),
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 publicly accessible website,
https://www.regulations.gov, you are
solely responsible for making sure your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include 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
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for making sure your comment does not
include 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. Your comment will be kept
confidential only if the FTC General
Counsel grants your request in
accordance with the law and the public
interest. Once your comment has been
posted on https://www.regulations.gov,
we cannot redact or remove your
comment from that 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.
Visit the Commission website at
https://www.ftc.gov to read this
document and the news release
describing 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 on or before December 7, 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.
V. Communications by Outside Parties
to the Commissioners or Their Advisors
Written communications and
summaries or transcripts of oral
communications respecting the merits
of this proceeding, from any outside
party to any Commissioner or
Commissioner’s advisor, will be placed
on the public record.15
VI. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA),16 federal agencies are
generally required to seek Office of
Management and Budget (‘‘OMB’’)
approval for information collection
requirements prior to implementation.
Under the PRA, the FTC may not
conduct or sponsor an information
collection—and, notwithstanding any
other provision of law, a person is not
required to respond to one—unless the
information collection displays a valid
control number assigned by OMB.
This proposal would amend 16 CFR
part 642. The Rule does not contain
information collection requirements as
defined by the PRA. The rule requires
certain motor vehicle dealers using
consumer reports to provide consumers
with opt-out notices, and the proposed
amendments include a model notice
motor vehicle dealers may use. Public
disclosure of information originally
supplied by the federal government for
the purpose of disclosure to the public
is not included within the definition of
the collection of information.17
Therefore, the Commission does not
believe the proposed amendments
would add any ‘‘collections of
information’’ as defined by the PRA.
VII. Regulatory Flexibility Act
The Regulatory Flexibility Act
(‘‘RFA’’), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996, requires an agency
to either provide an Initial Regulatory
Flexibility Analysis (‘‘IRFA’’) with a
proposed rule, or certify that the
proposed rule will not have a significant
impact on a substantial number of small
entities.18 The Commission does not
expect that the proposed changes to this
Rule, if adopted, would have the
threshold impact on small entities. The
Commission does not expect the
proposal to impose costs on small motor
vehicle dealers because the amendments
are primarily for clarification purposes
and should not result in any increased
burden on any motor vehicle dealer.
Thus, a small entity that complies with
current law need not take any different
or additional action if the proposal is
adopted.
Therefore, based on available
information, the Commission certifies
that amending the Address Discrepancy
Rule as proposed will not have a
significant economic impact on a
substantial number of small businesses.
Although the Commission certifies
under the RFA that the proposed
16 44
U.S.C. 3501 et seq.
5 CFR 1320.3(c)(2).
18 5 U.S.C. 603–605.
17 See
15 16
PO 00000
CFR 1.26(b)(5).
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amendment would not, if promulgated,
have a significant impact on a
substantial number of small entities, the
Commission has determined,
nonetheless, that it is appropriate to
publish an IRFA to inquire into the
impact of the proposed amendment on
small entities. Therefore, the
Commission has prepared the following
analysis:
A. Description of Reasons for the
Proposed Rule
To address the Dodd-Frank Act’s
changes to the Commission’s
rulemaking authority, the Commission
proposes to clarify that the Rule applies
only to motor vehicle dealers and to
reinstate a model form.
B. Succinct Statement of the Objectives,
and Legal Basis For, the Proposed Rule
The objectives of the proposed Rule
are discussed above. The legal basis for
the proposed Rule is 15 U.S.C.
1681m(d).
C. Description of Small Entities to
Which the Proposed Rule Will Apply
Determining a precise estimate of the
number of small entities 19 is not readily
feasible. Financial institutions covered
by the Rule include certain motor
vehicle dealers. A substantial number of
these entities likely qualify as small
businesses. The Commission estimates
that the proposed amendment will not
have a significant impact on small
businesses because it imposes no new
obligations.
D. Projected Reporting, Recordkeeping,
and Other Compliance Requirements,
Including Classes of Covered Small
Entities and Professional Skills Needed
To Comply
The proposed amendments would
impose no new reporting,
recordkeeping, or other compliance
requirements. The small entities
potentially covered by the proposed
amendment will include all such
entities subject to the Rule.
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E. Identification of Duplicative,
Overlapping, or Conflicting Federal
Rules
The Commission has not identified
any other federal statutes, rules, or
policies that would duplicate, overlap,
or conflict with the proposed
19 The U.S. Small Business Administration Table
of Small Business Size Standards Matched to North
American Industry Classification System Codes
(NAICS) are generally expressed in either millions
of dollars or number of employees. A size standard
is the largest that a business can be and still qualify
as a small business for Federal Government
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amendment. Nonetheless, the
Commission requests comment on the
extent to which other federal standards
involving consumer reports may
duplicate, satisfy, or potentially conflict
with the Rule’s requirements for any
covered financial institutions.
Financial Protection Bureau jurisdiction
as described in 12 U.S.C. 5519.
*
*
*
*
*
■ 4. In § 642.3, revise the introductory
text of § 642.3 to read as follows:
F. Description of Any Significant
Alternatives to the Proposed Rule
Any motor vehicle dealer that uses a
consumer report on any consumer in
connection with any credit or insurance
transaction that is not initiated by the
consumer, and that is provided to that
person under section 604(c)(1)(B) of the
FCRA (15 U.S.C. 1681b (c)(1)(B)), shall,
with each written solicitation made to
the consumer about the transaction,
provide the consumer with the
following statement, consisting of a
short portion and a long portion, which
shall be in the same language as the
offer of credit or insurance:
*
*
*
*
*
The Commission has not proposed
any specific small entity exemption or
other significant alternatives because
the proposed amendment would not
impose any new requirements or
compliance costs. Nonetheless, the
Commission welcomes comment on any
significant alternative consistent with
the FCRA that would minimize the
impact of the proposed Rule on small
entities.
List of Subjects in 16 CFR Parts 642 and
698
Consumer protection, Credit, Trade
practices.
For the reasons stated above, the
Federal Trade Commission proposes to
amend title 16 of the Code of Federal
Regulations as follows:
PART 642—PRESCREEN OPT–OUT
NOTICE
1. Revise the authority section for part
642 to read as follows:
■
Authority: 15 U.S.C. 1681m(d); 12 U.S.C.
5519(d); Sec. 311, Pub. L. 108–159.
2. In § 642.1, revise paragraph (b) to
read as follows:
■
§ 642.1
Purpose and scope.
*
*
*
*
*
(b) Scope. This part applies to any
motor vehicle dealer as defined in
§ 642.2 of this part that uses a consumer
report on any consumer in connection
with any credit or insurance transaction
that is not initiated by the consumer,
and that is provided to that motor
vehicle dealer under section 604(c)(1)(B)
of the FCRA (15 U.S.C. 1681b(c)(1)(B)).
■ 3. In § 642.2, redesignate paragraph (b)
as paragraph (c) and add a new
paragraph (b) to read as follows:
§ 642.2
Definitions.
*
*
*
*
*
(b) Motor vehicle dealer means any
person excluded from Consumer
programs. For the most part, size standards are the
annual receipts or the average employment of a
firm. New car dealers (NAICS code 441100) are
classified as small if they have fewer than 200
employees. Used car dealers (NAICS code 441120)
are classified as small if their annual receipts are
$27 million or less. Recreational vehicle dealers,
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§ 642.3
Prescreen opt-out notice.
PART 698—MODEL FORMS AND
DISCLOSURES
5. The authority citation continues to
read as follows:
■
Authority 12 U.S.C. 5519; 15 U.S.C.
1681m(h); 15 U.S.C. 1681s–3; Sec. 214(b),
Pub. L. 108–159.
■
6. Revise § 698.2 to read as follows:
§ 698.2
Legal effect.
The model forms and disclosures
prescribed by the FTC in this part do
not constitute a trade regulation rule.
The issuance of the model forms and
disclosures set forth in appendices A, B,
and C of this part carry out the directive
in the statute that the FTC prescribe
these forms and disclosures. Use or
distribution of the model forms and
disclosures in this part will constitute
compliance with any section or
subsection of the FCRA requiring that
such forms and disclosures be used by
any motor vehicle dealer subject to the
FTC’s rulemaking authority.
■ 7. Add appendix C to part 698 to read
as follows:
Appendix C to Part 698—Model
Prescreen Opt-Out Notices
In order to comply with CFR 16 part 642,
the following model notices may be used:
(a) English language model notice—(1)
Short notice.
BILLING CODE 6750–01–P
boat dealers, motorcycle, ATV and all other motor
vehicle dealers (NAICS codes 441210, 441222 and
441228) are classified as small if their annual
receipts are $35 million or less. The 2019 Table of
Small Business Size Standards is available at
https://www.sba.gov/document/support-table-sizestandards.
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59234
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By direction of the Commission,
Commissioner Slaughter and Commissioner
Wilson not participating.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020–19176 Filed 9–18–20; 8:45 am]
BILLING CODE 6750–01–C
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 887 and 984
[Docket No. FR–6114–P–01]
RIN 2577–AD09
Streamlining and Implementation of
Economic Growth, Regulatory Relief,
and Consumer Protection Act Changes
to Family Self-Sufficiency (FSS)
Program
Office of the Assistant
Secretary for Public and Indian
Housing, HUD, and Office of the
Assistant Secretary for Housing—
Federal Housing Commissioner, HUD.
ACTION: Proposed rule.
AGENCY:
The Economic Growth,
Regulatory Relief, and Consumer
Protection Act (‘‘the Economic Growth
Act’’) was signed into law on May 24,
2018, amending HUD’s Family SelfSufficiency (FSS) program. Section 306
of the Act made multiple amendments
to the FSS program, including changes
to the size calculation for the FSS
program, expanding the definition of
eligible family to include tenants of
certain privately owned multifamily
projects subsidized with Project-Based
Rental Assistance (PBRA), updating the
FSS Contract of Participation (CoP),
reducing burdens on Public Housing
Agencies (PHAs) and multifamily
assisted housing owners, clarifying
escrow account requirements, and
updating the program coordinator and
action plan requirements. This proposed
rule also includes additional changes to
reduce burden and streamline the
program for PHAs, owners, and eligible
families.
DATES: Comment due date: November
20, 2020.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposed rule. All communications
must refer to the above docket number
and title. There are two methods for
submitting public comments.
1. Submission of Comments by Mail.
Comments may be submitted by mail to
the Regulations Division, Office of
General Counsel, U.S. Department of
Housing and Urban Development, 451
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SUMMARY:
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7th Street SW, Room 10276,
Washington, DC 20410–0500.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make comments immediately available
to the public. Comments submitted
electronically through the
www.regulations.gov website can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
Note: To receive consideration as
public comments, comments must be
submitted through one of the two
methods specified above. All
submissions must refer to the docket
number and title of the rule.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD will be available for
public inspection and copying between
8 a.m. and 5 p.m., weekdays, at the
above address. Due to security measures
at the HUD Headquarters building, an
advance appointment to review the
public comments must be scheduled by
calling the Regulations Division at 202–
708–3055 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number via TTY by calling the toll-free
Federal Relay Service at 800–877–8339.
Copies of all comments submitted are
available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For
Public Housing FSS contact Anice S.
Chenault, Office of Public and Indian
Housing, U.S. Department of Housing
and Urban Development, 451 7th Street
SW, Room 4120, Washington, DC 20410;
telephone number 502–618–6163 (this
is not a toll-free number); and for
Multifamily FSS contact Carissa L.
Janis, Office of Multifamily Housing
Programs, U.S. Department of Housing
and Urban Development, 451 7th Street
SW, Room 6152, Washington, DC 20410;
telephone number 202–402–2487 (this
is not a toll-free number). The public is
encouraged to email questions to FSS@
hud.gov. Persons with hearing or speech
impairments may access this number
through TTY by calling the toll-free
Federal Relay Service at 800–877–8339.
PO 00000
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SUPPLEMENTARY INFORMATION:
I. Background
In 1990, section 554 of the Cranston
Gonzalez National Affordable Housing
Act (Pub. L. 101–625, approved
November 28, 1990) amended the
United States Housing Act of 1937 by
adding a new Section 23 (42 U.S.C.
1437u) to create the FSS program. The
FSS program requires that PHAs) and
Indian Housing Authorities (IHAs) 1 use
Public and Indian Housing assistance
and Section 8 Housing assistance rental
voucher programs, together with public
and private resources, to provide
supportive services, case management,
and an escrow account to participating
families, with the intent to help families
achieve economic independence and
self-sufficiency. The goal of the program
is to enable participating low-income
families to increase their earned income
and reduce their dependency on welfare
assistance and rental subsidies. FSS
program coordinators create plans with
participating families to achieve goals
and connect them with services that
will assist the family in making progress
toward economic security. As the
family’s earnings increase, the
difference between the original rent and
the rent that increases due to increased
earned income is credited to an interestbearing escrow account on behalf of the
family. Families that meet program
requirements and successfully complete
the FSS program receive their accrued
FSS escrow funds, plus interest. No
formal restrictions exist on the use of
the escrowed funds, but many families
use the funds to help with the purchase
of a home, debt reduction, postsecondary education, or to start a new
business.
In September 1991, HUD initially
implemented the FSS program by
notice 2 and the following year made
several additional changes to the FSS
program to implement amendments
made by the Housing and Community
Development Act of 1992 (Pub. L. 102–
550), approved October 28, 1992 (the
1992 Act). (See section 106 of the 1992
Act.) On May 27, 1993, HUD issued an
interim final rule implementing the FSS
program in its Indian Housing program
at 24 CFR part 905, Public Housing
program regulations at 24 CFR part 962,
and Section 8 program regulations at 24
CFR part 984. 56 FR 49588. On March
5, 1996, HUD streamlined the FSS
program by consolidating the Public
1 The Native American Housing Assistance and
Self Determination Act of 1996 (25 U.S.C. 4101 et
seq.) (NAHASDA) removed the application of the
FSS program to IHAs.
2 ‘‘Notice of FSS Program Guidelines’’ September
30, 1991 at 56 FR 49592.
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]]>Agencies
[Federal Register Volume 85, Number 183 (Monday, September 21, 2020)]
[Proposed Rules]
[Pages 59226-59234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19176]
=======================================================================
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FEDERAL TRADE COMMISSION
16 CFR Parts 642 and 698
RIN 3084-AB63
Prescreen Opt-Out Notice Rule
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking; request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
requests public comment on its Prescreen Opt-Out Notice Rule as part of
the FTC's systematic review of all current Commission regulations and
guides. In addition, the FTC is proposing to amend the Rule to
correspond to changes made to the Fair Credit Reporting Act (``FCRA'')
by the Dodd-Frank Act and to reinstate a model prescreen opt-out
notice.
DATES: Written comments must be received on or before December 7, 2020.
ADDRESSES: Interested parties may file a comment online or on paper by
following the Request for Comment part of the SUPPLEMENTARY INFORMATION
section below. Write ``Prescreen Opt-Out Notice Rule, 16 CFR part 642,
Project No. P205408'' 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 B),
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 B), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: David Lincicum (202-326-2773),
Division of Privacy and Identity Protection, Bureau of Consumer
Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
A. The Prescreen Opt-Out Notice Rule
Section 615(d) of the FCRA \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 (``prescreened offer'' or ``prescreened
solicitation'') 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 opt-out right by notifying a notification system
established under section 604(e) of the FCRA.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 1681m(d).
---------------------------------------------------------------------------
The Fair and Accurate Credit Transactions Act of 2003 (``FACT
Act'') was signed into law on December 4, 2003. Public Law 108-159, 117
Stat. 1952. Section 213(a) of the FACT Act amended FCRA section 615(d)
to require that the statement mandated by section 615(d) ``be presented
in such format and in such type size and manner as to be simple and
easy to understand, as established by the Commission, by rule, in
consultation with the Federal banking agencies and the National Credit
Union Administration.'' On August 1, 2005, the FTC issued its Prescreen
Opt-Out Notice Rule.\2\
---------------------------------------------------------------------------
\2\ 70 FR 5021 (Aug. 1, 2005).
---------------------------------------------------------------------------
B. Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act
(``Dodd-Frank Act'') was signed into law in 2010.\3\ The Dodd-Frank Act
substantially changed the federal legal framework for financial
services providers. Among the changes, the Dodd-Frank Act transferred
to the Consumer Financial Protection Bureau (``CFPB'') the Commission's
rulemaking authority under portions of the FCRA.\4\ Accordingly, in
2012, the Commission rescinded several of its FCRA rules, which had
been replaced by rules issued by the CFPB.\5\ The FTC retained
rulemaking authority for other rules to the extent the rules apply to
motor vehicle dealers described in section 1029(a) of the Dodd-Frank
Act \6\ that are predominantly engaged in the sale and servicing of
motor vehicles, the leasing and servicing of motor vehicles, or both
(``motor vehicle dealers'').\7\ The retained rules include the
Prescreen Opt-Out Notice Rule, which now applies only to motor vehicle
dealers.\8\ Consumer report users originally covered by the Prescreen
Opt-Out Notice Rule that are not motor vehicle dealers are now covered
by the CFPB's rule.\9\
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\3\ Public Law 111-203 (2010).
\4\ 15 U.S.C. 1681 et seq. The Dodd-Frank Act does not transfer
to the CFPB rulemaking authority for section 615(e) of the FCRA
(``Red Flag Guidelines and Regulations Required'') and section 628
of the FCRA (``Disposal of Records''). See 15 U.S.C. 1681s(e).
\5\ 77 FR 22200 (April 13, 2012); 12 U.S.C. 5519.
\6\ 15 U.S.C. 5519.
\7\ 77 FR 22200 (April 13, 2012).
\8\ Id.
\9\ 12 CFR 1022.54.
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On May 22, 2019, the FTC rescinded several FCRA model notices and
forms
[[Page 59227]]
that were no longer necessary because of the Dodd-Frank Act's change to
its rulemaking authority.\10\ The prescreen opt-out model notice was
included in this rescission.
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\10\ 84 FR 23471 (May 22, 2019).
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II. Technical Changes To Correspond to Statutory Changes Resulting From
the Dodd-Frank Act
The Commission promulgated the Prescreen Opt-Out Notice Rule at a
time when it had rulemaking authority for a broader group of consumer
report users. While the Dodd-Frank Act did not change the Commission's
enforcement authority for the Prescreen Opt-Out Notice Rule, it did
narrow the Commission's rulemaking authority with respect to the Rule.
It now covers only motor vehicle dealers.\11\ The amendments in the
Dodd-Frank Act necessitate technical revisions to the Prescreen Opt-Out
Notice Rule to ensure that the regulation is consistent with the text
of the amended FCRA. Accordingly, the Commission proposes to modify the
Prescreen Opt-Out Notice Rule to reflect the Rule's actual scope.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 1681s(e)(1); 12 U.S.C. 5519.
---------------------------------------------------------------------------
The proposed amendment to Sec. 642.1 narrows the scope of the
Prescreen Opt-Out Notice Rule to those entities set forth in the Dodd-
Frank Act that are predominantly engaged in the sale and servicing of
motor vehicles, excluding those dealers that directly extend credit to
consumers and do not routinely assign the extensions of credit to an
unaffiliated third party.\12\ It does so by replacing the general term
``person'' with the term ``motor vehicle dealers,'' as defined in
amended Sec. 642.2.
---------------------------------------------------------------------------
\12\ 12 U.S.C. 5519.
---------------------------------------------------------------------------
The proposed amendment to Sec. 642.2 adds a definition of ``motor
vehicle dealer'' that defines motor vehicle dealers as entities
excluded from CFPB jurisdiction as described in the Dodd-Frank Act.\13\
---------------------------------------------------------------------------
\13\ Id.
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The proposed amendment also reinstates the model prescreen opt-out
notice as Appendix C to Part 698. The model form is unchanged from the
previous model notice and is identical to the CFPB's model notice.\14\
The proposed amendment also revises Sec. 698.2 to include Appendix C
in the list of model notices.
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\14\ 12 CFR part 1022, App. D. In rescinding this and other
model notices in light of changes to regulatory authority under the
Dodd-Frank Act, see 84 FR 23471, the Commission noted that covered
entities should look to the corresponding forms issued by the CFPB
to obtain the appropriate model forms and disclosures. Although
motor vehicle dealers can use the CFPB's existing form, in
conjunction with revising the scope of the Prescreen Opt-Out Notice
Rule the Commission is reinstating a model form for the Rule in case
the CFPB were to revise its corresponding rule, and the
corresponding model, in the future.
---------------------------------------------------------------------------
The amendments make no substantive changes to the Rule.
III. Regulatory Review of the Prescreen Opt-Out Notice Rule
In addition to proposing the changes described above, the
Commission seeks information about the costs and benefits of the Rule,
and its regulatory and economic impact. It has been fifteen years since
the Rule was enacted. Consistent with its practice of reviewing all of
its rules and guides periodically, the Commission seeks to ascertain
whether changes in technology, business models, or the law warrant
modification or rescission of the Rule. As part of this review the
Commission solicits comments on, among other things, the economic
impact and benefits of the Prescreen Opt-Out Notice Rule; possible
conflict between the Prescreen Opt-Out Notice Rule and state, local, or
other federal laws or regulations; and the effect on the Prescreen Opt-
Out Notice Rule of any technological, economic, or other industry
changes.
Issues for Comment
The Commission requests written comment on any or all of the
following questions. These questions are designed to assist the public
and should not be construed as a limitation on the issues about which
public comments may be submitted. The Commission requests that
responses to its questions be as specific as possible, including a
reference to the question being answered, and refer to empirical data
or other evidence upon which the comment is based whenever available
and appropriate.
1. Is there a continuing need for specific provisions of the
Prescreen Opt-Out Notice Rule? Why or why not?
2. What benefits has the Prescreen Opt-Out Notice Rule provided to
consumers? What evidence supports the asserted benefits?
3. What modifications, if any, should be made to the Prescreen Opt-
Out Notice Rule to increase the benefits to consumers?
a. What evidence supports the proposed modifications?
b. How would these modifications affect the costs imposed by the
Prescreen Opt-Out Notice Rule?
4. What significant costs, if any, has the Prescreen Opt-Out Notice
Rule imposed on consumers? What evidence supports the asserted costs?
5. What modifications, if any, should be made to the Prescreen Opt-
Out Notice Rule to reduce any costs imposed on consumers?
a. What evidence supports the proposed modifications?
b. How would these modifications affect the benefits provided by
the Prescreen Opt-Out Notice Rule?
6. What benefits, if any, has the Prescreen Opt-Out Notice Rule
provided to businesses, including small businesses? What evidence
supports the asserted benefits?
7. What modifications, if any, should be made to the Prescreen Opt-
Out Notice Rule to increase its benefits to businesses, including small
businesses?
a. What evidence supports the proposed modifications?
b. How would these modifications affect the costs the Prescreen
Opt-Out Notice Rule imposes on businesses, including small businesses?
c. How would these modifications affect the benefits to consumers?
8. What significant costs, if any, including costs of compliance,
has the Prescreen Opt-Out Notice Rule imposed on businesses, including
small businesses? What evidence supports the asserted costs?
9. What modifications, if any, should be made to the Prescreen Opt-
Out Notice Rule to reduce the costs imposed on businesses, including
small businesses?
a. What evidence supports the proposed modifications?
b. How would these modifications affect the benefits provided by
the Prescreen Opt-Out Notice Rule?
10. What evidence is available concerning the degree of industry
compliance with the Prescreen Opt-Out Notice Rule?
11. What modification, if any, should be made to the Prescreen Opt-
Out Notice Rule to account for changes in relevant technology or
economic conditions? What evidence supports the proposed modifications?
12. Does the Prescreen Opt-Out Notice Rule overlap or conflict with
other federal, state, or local laws or regulations? If so, how?
a. What evidence supports the asserted conflicts?
b. With reference to the asserted conflicts, should the Prescreen
Opt-Out Notice Rule be modified? If so, why, and how? If not, why not?
13. The Commission proposes to amend the Rule to reflect that the
Commission's rulemaking authority has been revised by statute to apply
exclusively to motor vehicle dealers. Are the proposed modifications
appropriate? Should additional amendments be made? Would these
amendments create conflicts with any
[[Page 59228]]
other federal, state, or local regulations or laws?
14. The Commission proposes to provide a model prescreen opt-out
notice that motor vehicle dealers may use. Should the model be
modified?
a. What evidence supports the proposed modifications?
b. How would these modifications affect the benefits provided by
the Prescreen Opt-Out Notice Rule?
IV. Request for Comment
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before December 7,
2020. Write ``Prescreen Opt-Out Notice Rule, 16 CFR part 642, Project
No. P205408'' on the comment. 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.
Because of 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 strongly
encourage you to submit your comment online through the https://www.regulations.gov website. To ensure the Commission considers your
online comment, please follow the instructions on the web-based form.
If you file your comment on paper, write ``Prescreen Opt-Out Notice
Rule, 16 CFR part 642, Project No. P205408'' 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 B), 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
B), 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 publicly accessible
website, https://www.regulations.gov, you are solely responsible for
making sure your comment does not include any sensitive or confidential
information. In particular, your comment should not include 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 your comment does not include
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. Your comment will be kept confidential only if the
FTC General Counsel grants your request in accordance with the law and
the public interest. Once your comment has been posted on https://www.regulations.gov, we cannot redact or remove your comment from that
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.
Visit the Commission website at https://www.ftc.gov to read this
document and the news release describing 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 on or before December 7, 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.
V. Communications by Outside Parties to the Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding, from any
outside party to any Commissioner or Commissioner's advisor, will be
placed on the public record.\15\
---------------------------------------------------------------------------
\15\ 16 CFR 1.26(b)(5).
---------------------------------------------------------------------------
VI. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA),\16\ federal
agencies are generally required to seek Office of Management and Budget
(``OMB'') approval for information collection requirements prior to
implementation. Under the PRA, the FTC may not conduct or sponsor an
information collection--and, notwithstanding any other provision of
law, a person is not required to respond to one--unless the information
collection displays a valid control number assigned by OMB.
---------------------------------------------------------------------------
\16\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
This proposal would amend 16 CFR part 642. The Rule does not
contain information collection requirements as defined by the PRA. The
rule requires certain motor vehicle dealers using consumer reports to
provide consumers with opt-out notices, and the proposed amendments
include a model notice motor vehicle dealers may use. Public disclosure
of information originally supplied by the federal government for the
purpose of disclosure to the public is not included within the
definition of the collection of information.\17\ Therefore, the
Commission does not believe the proposed amendments would add any
``collections of information'' as defined by the PRA.
---------------------------------------------------------------------------
\17\ See 5 CFR 1320.3(c)(2).
---------------------------------------------------------------------------
VII. Regulatory Flexibility Act
The Regulatory Flexibility Act (``RFA''), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996, requires an
agency to either provide an Initial Regulatory Flexibility Analysis
(``IRFA'') with a proposed rule, or certify that the proposed rule will
not have a significant impact on a substantial number of small
entities.\18\ The Commission does not expect that the proposed changes
to this Rule, if adopted, would have the threshold impact on small
entities. The Commission does not expect the proposal to impose costs
on small motor vehicle dealers because the amendments are primarily for
clarification purposes and should not result in any increased burden on
any motor vehicle dealer. Thus, a small entity that complies with
current law need not take any different or additional action if the
proposal is adopted.
---------------------------------------------------------------------------
\18\ 5 U.S.C. 603-605.
---------------------------------------------------------------------------
Therefore, based on available information, the Commission certifies
that amending the Address Discrepancy Rule as proposed will not have a
significant economic impact on a substantial number of small
businesses. Although the Commission certifies under the RFA that the
proposed
[[Page 59229]]
amendment would not, if promulgated, have a significant impact on a
substantial number of small entities, the Commission has determined,
nonetheless, that it is appropriate to publish an IRFA to inquire into
the impact of the proposed amendment on small entities. Therefore, the
Commission has prepared the following analysis:
A. Description of Reasons for the Proposed Rule
To address the Dodd-Frank Act's changes to the Commission's
rulemaking authority, the Commission proposes to clarify that the Rule
applies only to motor vehicle dealers and to reinstate a model form.
B. Succinct Statement of the Objectives, and Legal Basis For, the
Proposed Rule
The objectives of the proposed Rule are discussed above. The legal
basis for the proposed Rule is 15 U.S.C. 1681m(d).
C. Description of Small Entities to Which the Proposed Rule Will Apply
Determining a precise estimate of the number of small entities \19\
is not readily feasible. Financial institutions covered by the Rule
include certain motor vehicle dealers. A substantial number of these
entities likely qualify as small businesses. The Commission estimates
that the proposed amendment will not have a significant impact on small
businesses because it imposes no new obligations.
---------------------------------------------------------------------------
\19\ The U.S. Small Business Administration Table of Small
Business Size Standards Matched to North American Industry
Classification System Codes (NAICS) are generally expressed in
either millions of dollars or number of employees. A size standard
is the largest that a business can be and still qualify as a small
business for Federal Government programs. For the most part, size
standards are the annual receipts or the average employment of a
firm. New car dealers (NAICS code 441100) are classified as small if
they have fewer than 200 employees. Used car dealers (NAICS code
441120) are classified as small if their annual receipts are $27
million or less. Recreational vehicle dealers, boat dealers,
motorcycle, ATV and all other motor vehicle dealers (NAICS codes
441210, 441222 and 441228) are classified as small if their annual
receipts are $35 million or less. The 2019 Table of Small Business
Size Standards is available at https://www.sba.gov/document/support-table-size-standards.
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D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements, Including Classes of Covered Small Entities and
Professional Skills Needed To Comply
The proposed amendments would impose no new reporting,
recordkeeping, or other compliance requirements. The small entities
potentially covered by the proposed amendment will include all such
entities subject to the Rule.
E. Identification of Duplicative, Overlapping, or Conflicting Federal
Rules
The Commission has not identified any other federal statutes,
rules, or policies that would duplicate, overlap, or conflict with the
proposed amendment. Nonetheless, the Commission requests comment on the
extent to which other federal standards involving consumer reports may
duplicate, satisfy, or potentially conflict with the Rule's
requirements for any covered financial institutions.
F. Description of Any Significant Alternatives to the Proposed Rule
The Commission has not proposed any specific small entity exemption
or other significant alternatives because the proposed amendment would
not impose any new requirements or compliance costs. Nonetheless, the
Commission welcomes comment on any significant alternative consistent
with the FCRA that would minimize the impact of the proposed Rule on
small entities.
List of Subjects in 16 CFR Parts 642 and 698
Consumer protection, Credit, Trade practices.
For the reasons stated above, the Federal Trade Commission proposes
to amend title 16 of the Code of Federal Regulations as follows:
PART 642--PRESCREEN OPT-OUT NOTICE
0
1. Revise the authority section for part 642 to read as follows:
Authority: 15 U.S.C. 1681m(d); 12 U.S.C. 5519(d); Sec. 311,
Pub. L. 108-159.
0
2. In Sec. 642.1, revise paragraph (b) to read as follows:
Sec. 642.1 Purpose and scope.
* * * * *
(b) Scope. This part applies to any motor vehicle dealer as defined
in Sec. 642.2 of this part that uses a consumer report on any consumer
in connection with any credit or insurance transaction that is not
initiated by the consumer, and that is provided to that motor vehicle
dealer under section 604(c)(1)(B) of the FCRA (15 U.S.C.
1681b(c)(1)(B)).
0
3. In Sec. 642.2, redesignate paragraph (b) as paragraph (c) and add a
new paragraph (b) to read as follows:
Sec. 642.2 Definitions.
* * * * *
(b) Motor vehicle dealer means any person excluded from Consumer
Financial Protection Bureau jurisdiction as described in 12 U.S.C.
5519.
* * * * *
0
4. In Sec. 642.3, revise the introductory text of Sec. 642.3 to read
as follows:
Sec. 642.3 Prescreen opt-out notice.
Any motor vehicle dealer that uses a consumer report on any
consumer in connection with any credit or insurance transaction that is
not initiated by the consumer, and that is provided to that person
under section 604(c)(1)(B) of the FCRA (15 U.S.C. 1681b (c)(1)(B)),
shall, with each written solicitation made to the consumer about the
transaction, provide the consumer with the following statement,
consisting of a short portion and a long portion, which shall be in the
same language as the offer of credit or insurance:
* * * * *
PART 698--MODEL FORMS AND DISCLOSURES
0
5. The authority citation continues to read as follows:
Authority 12 U.S.C. 5519; 15 U.S.C. 1681m(h); 15 U.S.C. 1681s-
3; Sec. 214(b), Pub. L. 108-159.
0
6. Revise Sec. 698.2 to read as follows:
Sec. 698.2 Legal effect.
The model forms and disclosures prescribed by the FTC in this part
do not constitute a trade regulation rule. The issuance of the model
forms and disclosures set forth in appendices A, B, and C of this part
carry out the directive in the statute that the FTC prescribe these
forms and disclosures. Use or distribution of the model forms and
disclosures in this part will constitute compliance with any section or
subsection of the FCRA requiring that such forms and disclosures be
used by any motor vehicle dealer subject to the FTC's rulemaking
authority.
0
7. Add appendix C to part 698 to read as follows:
Appendix C to Part 698--Model Prescreen Opt-Out Notices
In order to comply with CFR 16 part 642, the following model
notices may be used:
(a) English language model notice--(1) Short notice.
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(2) Long notice.
[[Page 59231]]
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(b) Spanish language model notice--(1) Short notice.
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(2) Long notice.
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By direction of the Commission, Commissioner Slaughter and
Commissioner Wilson not participating.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020-19176 Filed 9-18-20; 8:45 am]
BILLING CODE 6750-01-C
