Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 51819-51821 [2021-19910]

Download as PDF Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations B. Significant Issues Raised in Public Comments in Response to the IRFA The Commission did not receive any comments that addressed the burden on small entities. In addition, the Commission did not receive any comments filed by the Chief Counsel for Advocacy of the Small Business Administration (‘‘SBA’’). C. Estimate of Number of Small Entities to Which the Final Rule Will Apply The Commission anticipates many covered motor vehicle dealers may qualify as small businesses according to the applicable SBA size standards.20 As explained in the IRFA, however, determining a precise estimate of the number of small entities is not readily feasible. No commenters addressed this issue. Nonetheless, as discussed above, these amendments do not add any additional burdens on any covered small businesses. D. Projected Reporting, Recordkeeping, and Other Compliance Requirements, Including Classes of Covered Small Entities and Professional Skills Needed To Comply The amendments do not impose any new reporting, recordkeeping, or other compliance requirements. E. Description of Steps Taken To Minimize Significant Economic Impact, if Any, on Small Entities, Including Alternatives The Commission did not propose any specific small entity exemption or other significant alternatives because the amendments will not increase reporting requirements and will not impose any new requirements or compliance costs. VI. Other Matters Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a ‘‘major rule,’’ as defined by 5 U.S.C. 804(2). Final Rule Language List of Subjects in 16 CFR Part 641 Consumer protection, Credit, Trade Practices For the reasons stated above, the Federal Trade Commission amends part 20 Table of Small Bus. Size Standards Matched to North American Indus. Classification System Codes, 13 CFR 121.201 (available at: https:// www.sba.gov/document/support--table-sizestandards), updated Aug. 19, 2019. For example, used car dealers are classified as NAICS 441120 and new car dealers as NAICS 441110. Under those standards, the SBA would classify as small businesses independent used car dealers having annual receipts of less than $27 million and new car dealers having fewer than 200 employees each. VerDate Sep<11>2014 15:31 Sep 16, 2021 Jkt 253001 641 of title 16 of the Code of Federal Regulations as follows: ■ 1. Revise the authority section for part 641 to read as follows: 51819 FEDERAL TRADE COMMISSION to issue guidelines for use by furnishers regarding the accuracy and integrity of the information about consumers that they furnish to consumer reporting agencies (‘‘CRAs’’) and to prescribe regulations requiring furnishers to establish reasonable policies and procedures for implementing the guidelines. Section 312 also required the Commission and the other agencies to issue regulations identifying the circumstances under which a furnisher must reinvestigate direct consumer disputes concerning the accuracy of information provided by the furnisher to a CRA. On July 1, 2009, the Commission issued the Furnisher Rule and the accompanying guidelines that took effect on July 1, 2010.2 The Rule requires furnishers to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers that they furnish to a CRA.3 The Rule also requires that furnishers respond to direct disputes from consumers.4 16 CFR Part 660 B. Dodd-Frank Act Authority: Pub. L. 108–159, sec. 315; 15 U.S.C. 1681c(h); 12 U.S.C. 5519(d). 2. In § 641.1, revise paragraph (a) to read as follows: ■ § 641.1 Duties of users of consumer reports regarding address discrepancies. (a) Scope. This section applies to users of consumer reports that are motor vehicle dealers excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519. * * * * * By direction of the Commission. April J. Tabor, Secretary. [FR Doc. 2021–19918 Filed 9–16–21; 8:45 am] BILLING CODE 6750–01–P RIN 3084–AB63 Duties of Furnishers of Information to Consumer Reporting Agencies Rule Federal Trade Commission. Final rule. AGENCY: ACTION: The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) is issuing a final rule (‘‘Final Rule’’) to amend the Duties of Furnishers of Information to Consumer Reporting Agencies Rule (‘‘Furnisher Rule’’) to correspond to changes made to the Fair Credit Reporting Act (‘‘FCRA’’) by the Dodd-Frank Act. DATES: The rule is effective October 18, 2021. 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: SUMMARY: 2 74 I. Background PO 00000 U.S.C. 1681s–2. Frm 00039 Fmt 4700 FR 31484. CFR 660.3. 4 16 CFR 660.4. 5 Public Law 111–203 (2010). 6 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). 7 77 FR 22200 (April 13, 2012); 12 U.S.C. 5519. 8 15 U.S.C. 5519. 9 77 FR 22200. 10 Id. 3 16 A. The Furnisher Rule 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 312 of the FACT Act amended section 623 1 of the FCRA by requiring the FTC, with other agencies, 1 15 The Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘DoddFrank Act’’) was signed into law in 2010.5 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.6 Accordingly, in 2012, the Commission rescinded several of its FCRA rules, which had been replaced by rules issued by the CFPB.7 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 8 predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both (‘‘motor vehicle dealers’’).9 The retained rules include the Furnisher Rule, which now applies only to motor vehicle dealers.10 Furnishers originally covered Sfmt 4700 E:\FR\FM\17SER1.SGM 17SER1 51820 Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations by the Furnisher Rule that are not motor vehicle dealers are covered by the CFPB’s rule.11 The Commission continues to have authority to enforce the CFPB’s rule and has brought several actions alleging violations of the rule.12 II. Regulatory Review of the Furnisher Rule On September 30, 2020, the Commission solicited comments on the Furnisher Rule as part of its periodic review of its rules and guides. The Commission sought information about the costs and benefits of the Rule, and its regulatory and economic impact. In addition, the Commission proposed amending sections 660.1 and 660.2 to narrow the scope of the Furnisher Rule to motor vehicle dealers excluded from CFPB jurisdiction as described in the Dodd-Frank Act. The Commission received one comment stating that the Furnisher Rule assists millions of consumers to discover inaccuracies in their consumer reports and emphasizing the need for continued enforcement of the Rule.13 The Commission agrees with this commenter. III. Overview of Final Rule The Commission adopted the Furnisher 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 Furnisher Rule, it did narrow the Commission’s rulemaking authority with respect to the Rule. It now covers only motor vehicle dealers.14 The amendments in the Dodd-Frank Act necessitate technical revisions to the Furnisher Rule to ensure the regulation is consistent with the text of the amended FCRA. Accordingly, the Commission amends the Furnisher Rule to properly reflect the Rule’s scope. The amendment to section 660.1 narrows the scope of the Furnisher Rule to ‘‘motor vehicle dealers,’’ as defined in amended section 660.2. 11 12 CFR 1022.40–43. e.g., FTC v. Midwest Recovery Systems, LLC, Case No. 4:20–cv–01674 (E.D. Mo. November 25, 2020); United States v. Credit Protection Association, LP, Case No. 3:16–cv–01255–D (N.D. Tex. May 9, 2016); United States v. Consumer Portfolio Services, Inc., Case No. SACV14–00819 (C.D. Cal. May 28, 2014); United States v. Telecheck Services, Inc., Case No. 1:14–cv–00062 (D.D.C. January 16, 2014). 13 East Bay Community Law Center (Comment 3), available at www.regulations.gov/comment/FTC2020-0072-0003. The Commission received two comments concerning consumer reporting agency activities unrelated to the Furnisher Rule. The comments are available at www.regulations.gov/ document/FTC-2020-0068-0001/comment. 14 15 U.S.C. 1681s(e)(1); 12 U.S.C. 5519. 12 See, VerDate Sep<11>2014 15:31 Sep 16, 2021 Jkt 253001 The amendment to section 660.2 adds a definition of ‘‘motor vehicle dealer’’ that defines motor vehicle dealers as those entities excluded from CFPB jurisdiction as described in the DoddFrank Act.15 The amendments also change the definition of ‘‘identity theft’’ by replacing the Rule’s reference to 16 CFR 603.2(a), a provision of an FTC rule that has since been rescinded,16 with a reference to 12 CFR 1022.3(h), the equivalent provision in the CFPB’s rule. The amendments make no other substantive changes to the Rule. IV. Paperwork Reduction Act The Furnisher Rule contains information collection requirements as defined by 5 CFR 1320.3(c), the definitional provision within the Office of Management and Budget (‘‘OMB’’) regulations that implement the Paperwork Reduction Act (‘‘PRA’’). 44 U.S.C. 3501 et seq. OMB has approved the Rule’s existing information collection requirements through July 31, 2022 (OMB Control No. 3084–0144). Under the existing clearance, the FTC has attributed to itself the estimated burden regarding all motor vehicle dealers and then shares equally the remaining estimated PRA burden with the CFPB for other persons for which both agencies have enforcement authority regarding the Furnisher Rule. The Final Rule amends 16 CFR part 660. The amendments do not modify or add to information collection requirements previously approved by OMB. The amendments narrow the scope to motor vehicle dealers. The Rule’s OMB clearance already reflects that change. Therefore, the Commission does not believe the amendments substantially or materially modify any ‘‘collections of information’’ as defined by the PRA. V. 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.17 The Commission published an Initial Regulatory Flexibility Analysis in order to inquire into the impact of the proposed Rule on small 15 12 U.S.C. 5519. FR 22200 (April 13, 2012). 17 5 U.S.C. 603–605. entities.18 The Commission received no responsive comments. The Commission does not believe these amendments have the threshold impact on small entities. The amendments effectuate changes to the Dodd-Frank Act and will not impose costs on small motor vehicle dealers because the amendments are for clarification purposes and will 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 under the Final Rule. Therefore, the Commission certifies that amending the Furnisher Rule will not have a significant economic impact on a substantial number of small businesses. Although the Commission certifies under the RFA the Final Rule will not have a significant impact on a substantial number of small entities, and hereby provides notice of that certification to the Small Business Administration, the Commission nonetheless has determined that publishing a final regulatory flexibility analysis (‘‘FRFA’’) is appropriate to ensure the impact of the rule is fully addressed. Therefore, the Commission has prepared the following analysis: A. Need for and Objectives of the Final Rule To address the Dodd-Frank Act’s changes to the Commission’s rulemaking authority, the amendments clarify that the Rule applies only to motor vehicle dealers. B. Significant Issues Raised in Public Comments in Response to the IRFA The Commission did not receive any comments that addressed the burden on small entities. In addition, the Commission did not receive any comments filed by the Chief Counsel for Advocacy of the Small Business Administration (‘‘SBA’’). C. Estimate of Number of Small Entities to Which the Final Rule Will Apply The Commission anticipates many covered motor vehicle dealers may qualify as small businesses according to the applicable SBA size standards. As explained in the IRFA, however, determining a precise estimate of the number of small entities is not readily feasible. No commenters addressed this issue. Nonetheless, as discussed above, these amendments do not add any additional burdens on any covered small businesses. 16 77 PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 18 85 E:\FR\FM\17SER1.SGM FR 61659, 61661 (Sept. 30, 2020). 17SER1 Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Rules and Regulations D. Projected Reporting, Recordkeeping, and Other Compliance Requirements, Including Classes of Covered Small Entities and Professional Skills Needed To Comply DEPARTMENT OF JUSTICE The amendments impose no new reporting, recordkeeping, or other compliance requirements. [Docket No. DEA–749] The Commission did not propose any specific small entity exemption or other significant alternatives because the amendments will not increase reporting requirements and will not impose any new requirements or compliance costs. VI. Other Matters Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a ‘‘major rule,’’ as defined by 5 U.S.C. 804(2). List of Subjects in 16 CFR Part 660 Consumer protection, Credit, Trade practices. For the reasons stated above, the Federal Trade Commission amends part 660 of title 16 of the Code of Federal Regulations as follows: 1. Revise the authority section for part 660 to read as follows: ■ Authority: Pub. L. 108–159, sec. 311; 15 U.S.C. 1681s–2; 12 U.S.C. 5519(d). 2. Revise § 660.1 to read as follows: § 660.1 Scope. This part applies to furnishers of information to consumer reporting agencies that are motor vehicle dealers as defined by § 660.2 of this part (referred to as ‘‘furnishers’’). 3. In § 660.2, revise paragraph (d) and add paragraph (f) to read as follows: ■ § 660.2 Definitions. * * * * * (d) Identity theft has the same meaning as in 12 CFR 1022.3(h). * * * * * (f) Motor vehicle dealer means any person excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519. By direction of the Commission. April J. Tabor, Secretary. [FR Doc. 2021–19910 Filed 9–16–21; 8:45 am] BILLING CODE 6750–01–P VerDate Sep<11>2014 15:31 Sep 16, 2021 Jkt 253001 21 CFR Part 1301 RIN 1117–AB70 E. Description of Steps Taken To Minimize Significant Economic Impact, if Any, on Small Entities, Including Alternatives ■ Drug Enforcement Administration Addition of the United States Space Force as a Registration Waiver and Registration Fee Exempt Military Entity Drug Enforcement Administration, Department of Justice. ACTION: Final rule. AGENCY: This final rule amends existing regulations to include the United States Space Force as a registration waiver and registration fee exempt military entity. DATES: This rule is effective September 17, 2021. FOR FURTHER INFORMATION CONTACT: Scott A. Brinks, Regulatory Drafting and Policy Support Section, Diversion Control Division, Drug Enforcement Administration; Mailing Address: 8701 Morrissette Drive, Springfield, Virginia 22152; Telephone: (571) 362–3261. SUPPLEMENTARY INFORMATION: SUMMARY: Technical Amendment Current Drug Enforcement Administration (DEA) regulations exempt registration fees and waive certain registration requirements for listed military entities: The U.S. Army, Navy, Marine Corps, Air Force, and Coast Guard. Any hospital or other institution operated by one of these entities,1 and any individual practitioners required to obtain a registration in order to carry out their duties as officials of an agency of the United States (including the U.S. Army, Navy, Marine, Corps, Air Force, and Coast Guard), is exempt from payment of an application fee for registration or reregistration.2 In addition, current DEA regulations waive the requirement of registration for officials of the U.S. Army, Navy, Marine Corps, Air Force, or Coast Guard who are authorized to prescribe, dispense, or administer, but not to procure or purchase, controlled substances in the course of their duties.3 Finally, current DEA regulations waive the requirement of registration for any official or agency of the U.S. Army, Navy, Marine Corps, Air Force, or Coast Guard authorized to import or export controlled substances in the course of their duties.4 1 21 CFR 1301.21(a)(1). CFR 1301.21(a)(2). 3 21 CFR 1301.23(a). 4 21 CFR 1301.23(b). 2 21 PO 00000 Frm 00041 Fmt 4700 The United States Space Force (USSF)—formerly known as the Air Force Space Command (AFSC)—was established as an independent military branch on December 20, 2019,5 by the United States Space Force Act. This rule therefore revises 21 CFR 1301.21 and 1301.23 to include USSF in the list of military entities exempt from paying DEA registration fees. Because the AFSC was fee exempt under existing DEA regulations as part of the Air Force, the DEA is issuing this final rule to provide clarity by adding ‘‘Space Force’’ to 21 CFR 1301.21 (‘‘Exemption from fees’’) and 21 CFR 1301.23 (‘‘Exemption of certain military and other personnel’’). Regulatory Analyses Administrative Procedure Act The Administrative Procedure Act (APA) (5 U.S.C. 553) does not require notice and the opportunity for public comment where the agency for good cause finds that notice and public comment are unnecessary, impracticable, or contrary to the public interest under 5 U.S.C. 553(b)(B). This rule contains a technical amendment; it imposes no new or substantive requirement on the public or DEA registrants. As such, DEA has determined that notice and the opportunity for public comment on this rule are unnecessary. Because this is not a substantive rule, and as DEA finds good cause under 5 U.S.C. 553(d)(3) for the above reason, this final rule will take effect upon date of publication in the Federal Register. Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) This final rule was developed in accordance with the principles of Executive Orders (E.O.) 12866 and 13563. E.O. 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects; distributive impacts; and equity). E.O. 13563 is supplemental to, and reaffirms, the principles, structures, and definitions governing regulatory review as established in E.O. 12866. The Office of Information and Regulatory Affairs has deemed this type of technical amendment not significant under E.O. 12866. 5 10 Sfmt 4700 51821 E:\FR\FM\17SER1.SGM U.S.C. 9081. 17SER1

Agencies

[Federal Register Volume 86, Number 178 (Friday, September 17, 2021)]
[Rules and Regulations]
[Pages 51819-51821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19910]


-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

16 CFR Part 660

RIN 3084-AB63


Duties of Furnishers of Information to Consumer Reporting 
Agencies Rule

AGENCY: Federal Trade Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is 
issuing a final rule (``Final Rule'') to amend the Duties of Furnishers 
of Information to Consumer Reporting Agencies Rule (``Furnisher Rule'') 
to correspond to changes made to the Fair Credit Reporting Act 
(``FCRA'') by the Dodd-Frank Act.

DATES: The rule is effective October 18, 2021.

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 Furnisher Rule

    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 312 of the FACT Act amended section 623 \1\ of the 
FCRA by requiring the FTC, with other agencies, to issue guidelines for 
use by furnishers regarding the accuracy and integrity of the 
information about consumers that they furnish to consumer reporting 
agencies (``CRAs'') and to prescribe regulations requiring furnishers 
to establish reasonable policies and procedures for implementing the 
guidelines. Section 312 also required the Commission and the other 
agencies to issue regulations identifying the circumstances under which 
a furnisher must reinvestigate direct consumer disputes concerning the 
accuracy of information provided by the furnisher to a CRA. On July 1, 
2009, the Commission issued the Furnisher Rule and the accompanying 
guidelines that took effect on July 1, 2010.\2\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 1681s-2.
    \2\ 74 FR 31484.
---------------------------------------------------------------------------

    The Rule requires furnishers to establish and implement reasonable 
written policies and procedures regarding the accuracy and integrity of 
the information relating to consumers that they furnish to a CRA.\3\ 
The Rule also requires that furnishers respond to direct disputes from 
consumers.\4\
---------------------------------------------------------------------------

    \3\ 16 CFR 660.3.
    \4\ 16 CFR 660.4.
---------------------------------------------------------------------------

B. Dodd-Frank Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act'') was signed into law in 2010.\5\ 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.\6\ Accordingly, in 
2012, the Commission rescinded several of its FCRA rules, which had 
been replaced by rules issued by the CFPB.\7\ 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 \8\ predominantly engaged in the sale and servicing of motor 
vehicles, the leasing and servicing of motor vehicles, or both (``motor 
vehicle dealers'').\9\ The retained rules include the Furnisher Rule, 
which now applies only to motor vehicle dealers.\10\ Furnishers 
originally covered

[[Page 51820]]

by the Furnisher Rule that are not motor vehicle dealers are covered by 
the CFPB's rule.\11\ The Commission continues to have authority to 
enforce the CFPB's rule and has brought several actions alleging 
violations of the rule.\12\
---------------------------------------------------------------------------

    \5\ Public Law 111-203 (2010).
    \6\ 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).
    \7\ 77 FR 22200 (April 13, 2012); 12 U.S.C. 5519.
    \8\ 15 U.S.C. 5519.
    \9\ 77 FR 22200.
    \10\ Id.
    \11\ 12 CFR 1022.40-43.
    \12\ See, e.g., FTC v. Midwest Recovery Systems, LLC, Case No. 
4:20-cv-01674 (E.D. Mo. November 25, 2020); United States v. Credit 
Protection Association, LP, Case No. 3:16-cv-01255-D (N.D. Tex. May 
9, 2016); United States v. Consumer Portfolio Services, Inc., Case 
No. SACV14-00819 (C.D. Cal. May 28, 2014); United States v. 
Telecheck Services, Inc., Case No. 1:14-cv-00062 (D.D.C. January 16, 
2014).
---------------------------------------------------------------------------

II. Regulatory Review of the Furnisher Rule

    On September 30, 2020, the Commission solicited comments on the 
Furnisher Rule as part of its periodic review of its rules and guides. 
The Commission sought information about the costs and benefits of the 
Rule, and its regulatory and economic impact. In addition, the 
Commission proposed amending sections 660.1 and 660.2 to narrow the 
scope of the Furnisher Rule to motor vehicle dealers excluded from CFPB 
jurisdiction as described in the Dodd-Frank Act. The Commission 
received one comment stating that the Furnisher Rule assists millions 
of consumers to discover inaccuracies in their consumer reports and 
emphasizing the need for continued enforcement of the Rule.\13\ The 
Commission agrees with this commenter.
---------------------------------------------------------------------------

    \13\ East Bay Community Law Center (Comment 3), available at 
www.regulations.gov/comment/FTC-2020-0072-0003. The Commission 
received two comments concerning consumer reporting agency 
activities unrelated to the Furnisher Rule. The comments are 
available at www.regulations.gov/document/FTC-2020-0068-0001/comment.
---------------------------------------------------------------------------

III. Overview of Final Rule

    The Commission adopted the Furnisher 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 Furnisher Rule, it did narrow the Commission's 
rulemaking authority with respect to the Rule. It now covers only motor 
vehicle dealers.\14\ The amendments in the Dodd-Frank Act necessitate 
technical revisions to the Furnisher Rule to ensure the regulation is 
consistent with the text of the amended FCRA. Accordingly, the 
Commission amends the Furnisher Rule to properly reflect the Rule's 
scope.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 1681s(e)(1); 12 U.S.C. 5519.
---------------------------------------------------------------------------

    The amendment to section 660.1 narrows the scope of the Furnisher 
Rule to ``motor vehicle dealers,'' as defined in amended section 660.2.
    The amendment to section 660.2 adds a definition of ``motor vehicle 
dealer'' that defines motor vehicle dealers as those entities excluded 
from CFPB jurisdiction as described in the Dodd-Frank Act.\15\ The 
amendments also change the definition of ``identity theft'' by 
replacing the Rule's reference to 16 CFR 603.2(a), a provision of an 
FTC rule that has since been rescinded,\16\ with a reference to 12 CFR 
1022.3(h), the equivalent provision in the CFPB's rule. The amendments 
make no other substantive changes to the Rule.
---------------------------------------------------------------------------

    \15\ 12 U.S.C. 5519.
    \16\ 77 FR 22200 (April 13, 2012).
---------------------------------------------------------------------------

IV. Paperwork Reduction Act

    The Furnisher Rule contains information collection requirements as 
defined by 5 CFR 1320.3(c), the definitional provision within the 
Office of Management and Budget (``OMB'') regulations that implement 
the Paperwork Reduction Act (``PRA''). 44 U.S.C. 3501 et seq. OMB has 
approved the Rule's existing information collection requirements 
through July 31, 2022 (OMB Control No. 3084-0144). Under the existing 
clearance, the FTC has attributed to itself the estimated burden 
regarding all motor vehicle dealers and then shares equally the 
remaining estimated PRA burden with the CFPB for other persons for 
which both agencies have enforcement authority regarding the Furnisher 
Rule.
    The Final Rule amends 16 CFR part 660. The amendments do not modify 
or add to information collection requirements previously approved by 
OMB. The amendments narrow the scope to motor vehicle dealers. The 
Rule's OMB clearance already reflects that change. Therefore, the 
Commission does not believe the amendments substantially or materially 
modify any ``collections of information'' as defined by the PRA.

V. 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.\17\ The Commission published an Initial Regulatory 
Flexibility Analysis in order to inquire into the impact of the 
proposed Rule on small entities.\18\ The Commission received no 
responsive comments.
---------------------------------------------------------------------------

    \17\ 5 U.S.C. 603-605.
    \18\ 85 FR 61659, 61661 (Sept. 30, 2020).
---------------------------------------------------------------------------

    The Commission does not believe these amendments have the threshold 
impact on small entities. The amendments effectuate changes to the 
Dodd-Frank Act and will not impose costs on small motor vehicle dealers 
because the amendments are for clarification purposes and will 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 under the Final Rule. Therefore, the Commission 
certifies that amending the Furnisher Rule will not have a significant 
economic impact on a substantial number of small businesses.
    Although the Commission certifies under the RFA the Final Rule will 
not have a significant impact on a substantial number of small 
entities, and hereby provides notice of that certification to the Small 
Business Administration, the Commission nonetheless has determined that 
publishing a final regulatory flexibility analysis (``FRFA'') is 
appropriate to ensure the impact of the rule is fully addressed. 
Therefore, the Commission has prepared the following analysis:

A. Need for and Objectives of the Final Rule

    To address the Dodd-Frank Act's changes to the Commission's 
rulemaking authority, the amendments clarify that the Rule applies only 
to motor vehicle dealers.

B. Significant Issues Raised in Public Comments in Response to the IRFA

    The Commission did not receive any comments that addressed the 
burden on small entities. In addition, the Commission did not receive 
any comments filed by the Chief Counsel for Advocacy of the Small 
Business Administration (``SBA'').

C. Estimate of Number of Small Entities to Which the Final Rule Will 
Apply

    The Commission anticipates many covered motor vehicle dealers may 
qualify as small businesses according to the applicable SBA size 
standards. As explained in the IRFA, however, determining a precise 
estimate of the number of small entities is not readily feasible. No 
commenters addressed this issue. Nonetheless, as discussed above, these 
amendments do not add any additional burdens on any covered small 
businesses.

[[Page 51821]]

D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements, Including Classes of Covered Small Entities and 
Professional Skills Needed To Comply

    The amendments impose no new reporting, recordkeeping, or other 
compliance requirements.

E. Description of Steps Taken To Minimize Significant Economic Impact, 
if Any, on Small Entities, Including Alternatives

    The Commission did not propose any specific small entity exemption 
or other significant alternatives because the amendments will not 
increase reporting requirements and will not impose any new 
requirements or compliance costs.

VI. Other Matters

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

List of Subjects in 16 CFR Part 660

    Consumer protection, Credit, Trade practices.

    For the reasons stated above, the Federal Trade Commission amends 
part 660 of title 16 of the Code of Federal Regulations as follows:


0
1. Revise the authority section for part 660 to read as follows:

    Authority:  Pub. L. 108-159, sec. 311; 15 U.S.C. 1681s-2; 12 
U.S.C. 5519(d).


0
2. Revise Sec.  660.1 to read as follows:


Sec.  660.1   Scope.

    This part applies to furnishers of information to consumer 
reporting agencies that are motor vehicle dealers as defined by Sec.  
660.2 of this part (referred to as ``furnishers'').

0
3. In Sec.  660.2, revise paragraph (d) and add paragraph (f) to read 
as follows:


Sec.  660.2  Definitions.

* * * * *
    (d) Identity theft has the same meaning as in 12 CFR 1022.3(h).
* * * * *
    (f) Motor vehicle dealer means any person excluded from Consumer 
Financial Protection Bureau jurisdiction as described in 12 U.S.C. 
5519.

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2021-19910 Filed 9-16-21; 8:45 am]
BILLING CODE 6750-01-P