Prescreen Opt-Out Notice Rule, 59226-59234 [2020-19176]

Download as PDF 59226 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules airspace that extends beyond 12 miles of the shoreline. * * * * * 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. * * * * * 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. * * * * * 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 jbell on DSKJLSW7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 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). Frm 00020 Fmt 4702 Sfmt 4702 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 E:\FR\FM\21SEP1.SGM 21SEP1 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules 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. jbell on DSKJLSW7X2PROD with PROPOSALS 11 15 VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 § 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 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 59227 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 E:\FR\FM\21SEP1.SGM 21SEP1 59228 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules jbell on DSKJLSW7X2PROD with PROPOSALS 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 VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 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). Frm 00022 Fmt 4702 Sfmt 4702 E:\FR\FM\21SEP1.SGM 21SEP1 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules 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. jbell on DSKJLSW7X2PROD with PROPOSALS 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 VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 59229 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, PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 § 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. E:\FR\FM\21SEP1.SGM 21SEP1 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules (2) Long notice. VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 E:\FR\FM\21SEP1.SGM 21SEP1 EP21SE20.003</GPH> jbell on DSKJLSW7X2PROD with PROPOSALS 59230 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules 59231 VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 E:\FR\FM\21SEP1.SGM 21SEP1 EP21SE20.004</GPH> jbell on DSKJLSW7X2PROD with PROPOSALS (b) Spanish language model notice—(1) Short notice. 59232 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 E:\FR\FM\21SEP1.SGM 21SEP1 EP21SE20.005</GPH> jbell on DSKJLSW7X2PROD with PROPOSALS (2) Long notice. VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 PO 00000 Frm 00027 Fmt 4702 Sfmt 9990 E:\FR\FM\21SEP1.SGM 21SEP1 59233 EP21SE20.006</GPH> jbell on DSKJLSW7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules 59234 Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Proposed Rules 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 jbell on DSKJLSW7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:55 Sep 18, 2020 Jkt 250001 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 Frm 00028 Fmt 4702 Sfmt 4702 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. E:\FR\FM\21SEP1.SGM 21SEP1

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]


=======================================================================
-----------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \10\ 84 FR 23471 (May 22, 2019).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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.
BILLING CODE 6750-01-P

[[Page 59230]]

[GRAPHIC] [TIFF OMITTED] TP21SE20.003

    (2) Long notice.

[[Page 59231]]

[GRAPHIC] [TIFF OMITTED] TP21SE20.004

    (b) Spanish language model notice--(1) Short notice.

[[Page 59232]]

[GRAPHIC] [TIFF OMITTED] TP21SE20.005

    (2) Long notice.

[[Page 59233]]

[GRAPHIC] [TIFF OMITTED] TP21SE20.006



[[Page 59234]]


    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