Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 4598-4600 [2022-01710]
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Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission.
ACTION: Notice.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995
(‘‘PRA’’), the Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’) is seeking
public comment on its proposal to
extend for an additional three years the
Office of Management and Budget
clearance for information collection
requirements in its regulation ‘‘Duties of
Furnishers of Information to Consumer
Reporting Agencies’’ (‘‘Information
Furnishers Rule’’), which applies to
certain motor vehicle dealers, and its
shared enforcement with the Bureau of
Consumer Financial Protection
(‘‘CFPB’’) of the furnisher provisions
(subpart E) of the CFPB’s Regulation V
regarding other entities. The current
clearance expires on July 31, 2022.
DATES: Comments must be filed by
March 29, 2022.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Information Furnishers
Rule, PRA Comment, P135407,’’ on your
comment and file your comment online
at https://www.regulations.gov/, by
following the instructions on the webbased 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 J), 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 J),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Gorana Neskovic, Attorney, Division of
Privacy and Identity Protection, Bureau
of Consumer Protection, (202) 326–
2322, 600 Pennsylvania Ave. NW, CC–
8232, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Title: Duties of Furnishers of
Information to Consumer Reporting
Agencies.
OMB Control Number: 3084–0144.
Type of Review: Extension without
change of a currently approved
collection.
Affected Public: Private Sector:
Businesses and other for-profit entities.
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SUMMARY:
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Estimated Annual Burden Hours:
17,483 hours.
Estimated Annual Labor Costs:
$966,143.
Abstract: The Dodd-Frank Act 1
transferred most of the FTC’s
rulemaking authority for the furnisher
provisions of the Fair Credit Reporting
Act (‘‘FCRA’’) 2 to the CFPB. The FTC,
however, retains rulemaking authority
for motor vehicle dealers that are
predominantly engaged in the sale and
servicing of motor vehicles, the leasing
and servicing of motor vehicles, or
both.3 In addition, the FTC retains its
authority to enforce the furnisher
provisions of the FCRA and rules issued
under those provisions. Accordingly,
the FTC and CFPB have overlapping
enforcement authority for many entities
subject to CFPB’s Regulation V (subpart
E) and the FTC has sole enforcement
authority for the motor vehicle dealers
subject to the FTC rule.
Under section 660.3 of the FTC’s
Information Furnishers Rule 4 and
section 1022.42 of the CFPB Rule,5
furnishers must establish and
implement reasonable written policies
and procedures regarding the accuracy
and integrity of the information relating
to consumers that they furnish to a
consumer reporting agency (‘‘CRA’’) for
inclusion in a consumer report.6 Section
660.4 of the FTC Rule and section
1022.43 of the CFPB Rule require that
entities which furnish information
about consumers to a CRA respond to
direct disputes from consumers. These
provisions also require that a furnisher
notify consumers by mail or other
means (if authorized by the consumer)
within five business days after making
a determination that a dispute is
frivolous or irrelevant (‘‘F/I dispute’’).
Burden Statement
FTC staff estimates that
approximately 6,385 information
furnishers are subject to the FTC’s
1 Public
Law 111–203, 124 Stat. 1376 (2010).
U.S.C. 1681 et seq.
3 See Dodd-Frank Act, § 1029(a), (c).
4 16 CFR part 660.
5 12 CFR part 1022.
6 The rule also provides that an entity is not a
furnisher when it: Provides information to a CRA
solely to obtain a consumer report for a permissible
purpose under the FCRA; is acting as a CRA as
defined in section 603(f) of the FCRA; is an
individual consumer to whom the furnished
information pertains; or is a neighbor, friend, or
associate of the consumer, or another individual
with whom the consumer is acquainted or who may
have knowledge about the consumer’s character,
general reputation, personal characteristics, or
mode of living in response to a specific request
from a CRA.
2 15
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Information Furnishers Rule and its
enforcement authority.7
Section 660.3 of FTC Rule/Section
1022.42 of CFPB Rule
A. Burden Hours
Section 660.3 of the FTC’s Furnisher
Rule and section 1022.42 of Regulation
V (subpart E) require furnishers to
establish written policies and
procedures regarding the accuracy and
integrity of information relating to
consumers that they furnish to a CRA.
Furnishers must also review these
policies and procedures periodically
and update them as necessary to ensure
their continued effectiveness. FTC staff
estimate a yearly recurring burden of 2
hours for training to help ensure
continued compliance regarding written
policies and procedures for the accuracy
and integrity of the information
furnished to a CRA about consumers.8
This yields an annual hours burden of
12,770 hours (6,385 respondents × 2
hours for training).
B. Labor Costs
Labor costs are derived by applying
appropriate estimated hourly cost
figures to the burden hours described
above. The FTC assumes that
respondents will use managerial and/or
professional technical personnel to train
7 The CFPB estimates that there are 16,000
furnishers, excluding motor vehicle dealers that are
subject to the FTC’s jurisdiction, with an allocation
to that agency of 63% of the burden or 10,080
respondents. See CFPB Supporting Statement Part
A, Fair Credit Reporting Act (Regulation V) 12 CFR
1022 (OMB Control Number: 3170–0002) (https://
www.reginfo.gov/public/do/PRAViewDocument
?ref_nbr=202008-3170-001). Allocating the
remaining 37% of the burden to the FTC yields
5,920 respondents, excluding motor vehicle dealers
that are subject to the FTC’s jurisdiction. FTC staff
estimate that there are approximately 46,525 motor
vehicle dealers in the U.S. See U.S. Census Bureau,
All Sectors: County Business Patterns, including
ZIP Code Business Patterns, by Legal Form of
Organization and Employment Size Class for the
U.S., States, and Selected Geographies: 2019,
available at https://data.census.gov/cedsci/table?q
=CBP2019.CB1900CBP&n=44111%3A44112&
;tid=CBP2019.CB1900CBP&hidePreview
=true&nkd=EMPSZES∼001,LFO∼001 (listing 21,427
establishments for ‘‘new car dealers,’’ NAICS code
44111, and 25,098 establishments for ‘‘used car
dealers,’’ NAICS code 44112). It is difficult to
determine precisely the number of motor vehicle
dealers that are subject to the FTC’s jurisdiction and
that are furnishers. Given the restrictions in section
1029(a) of the Dodd-Frank Act that motor vehicle
dealers subject to the FTC’s jurisdiction are those
that routinely assign consumer contracts governing
retail credit to an unaffiliated third-party finance
source, Commission staff believes the number is de
minimis. Accordingly, the FTC estimates that 1% of
motor vehicle dealers subject to the FTC’s
jurisdiction are furnishers of information to CRAs
or 465 respondents. Thus, 465 motor vehicle
dealers + 5,920 other entities = 6,385 respondents
for the FTC’s burden calculations.
8 74 FR 31484, 31505 (July 1, 2009 FTC and
Federal financial agencies’ final rules).
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company employees on continued
compliance with the information
furnisher requirements under the FTC
and CFPB Rules. This yields estimated
annual labor costs of $773,096 (12,770
hours × $60.54 9).
Section 660.4 of FTC Rule/Section
1022.43 of CFPB Rule
Section 660.4 of the FTC’s
Information Furnishers Rule and section
1022.43 of the CFPB’s Regulation V
(subpart E) require furnishers to respond
to direct disputes from consumers and
notify consumers by mail or other
means (if authorized by the consumer)
within five business days after making
a determination that a dispute is
frivolous or irrelevant.
A. Burden Hours
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FTC staff estimate that the burden
necessary to prepare and distribute F/I
notices is approximately 14 minutes per
notice.10 Based on the calculations
below, this yields an annual hours
burden of 2,635 hours.
1. 21,720 total F/I disputes 11
2. Motor vehicle dealer-only furnisher
disputes are assumed to be 4% of
the total: 21,720 × .04 = 869 F/I
disputes 12
3. 20,851 respondents (21,720¥869 FTC
only) ÷ by 2 = 10,425 F/I disputes
subject to FTC shared jurisdiction
4. 869 FTC only F/I disputes + 10,425
additional F/I disputes = 11,294 F/
I dispute notices for the FTC’s
jurisdiction
5. 11,294 F/I disputes × 14 minutes each
= 2,635 hours
9 https://www.bls.gov/news.release/
ocwage.nr0.htm: ‘‘Occupational Employment and
Wages—May 2017,’’ Bureau of Labor Statistics, U.S.
Department of Labor, released March 30, 2018,
Table 1 (‘‘National employment and wage data from
the Occupational Employment Statistics survey by
occupation, May 2017) (hereinafter, ‘‘BLS Table 1’’).
See mean hourly wage for ‘‘Training and
Development Managers.’’
10 74 FR at 31505.
11 Id. at 31506 n. 58.
12 FTC staff believes that 4% is a reasonable
estimate based on recent data. See ‘‘Key Dimensions
and Processes in the U.S. Credit Reporting System:
A review of how the nation’s largest credit bureaus
handle consumer data,’’ December 2012, pp. 14, 29,
31, 34. The CFPB report noted that almost 40% of
all consumer disputes at the nationwide CRAs, on
average, can be linked to collections. It stated that
collection trade lines generate significantly higher
numbers of consumer disputes than other types of
trade lines—specifically, four times higher than
auto-related dispute rates. These figures seem to
suggest that almost 10% of all consumer disputes
at the nationwide CRAs, on average, can be linked
to auto-related disputes. When the FTC issued its
final Rule, FTC staff estimated that 40% of direct
disputes would result in the sending of F/I dispute
notices. See 74 FR 31506 n.58. The FTC’s estimate
of 4% is based on taking forty percent of the 10%
of all consumer disputes at the nationwide CRAs,
on average, linked to auto loans.
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B. Labor Costs
Labor costs are derived by applying
appropriate estimated hourly cost
figures to the burden hours described
above. The FTC assumes that
respondents will use skilled
administrative support personnel to
provide the required F/I dispute notices
to consumers. This yields estimated
annual labor costs of $67,245 (2,635
hours × $25.52 13).
FTC staff believes that these
information collection requirements
impose negligible capital or other nonlabor costs, as the affected entities are
already likely to have the necessary
supplies and equipment (e.g., offices
and computers) to administer the
information collections described above.
Request for Comments: Under the
PRA, 44 U.S.C. 3501–3521, federal
agencies must obtain approval from
OMB for each collection of information
they conduct or sponsor. ‘‘Collection of
information’’ means agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. 44 U.S.C.
3502(3), 5 CFR 1320.3(c). As required by
section 3506(c)(2)(A) of the PRA, the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing PRA clearance
for the Information Furnishers Rule.
Pursuant to Section 3506(c)(2)(A) of
the PRA, the FTC invites comments on:
(1) Whether the disclosure requirements
are necessary, including whether the
information will be practically useful;
(2) the accuracy of our burden estimates,
including whether the methodology and
assumptions used are valid; (3) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(4) ways to minimize the burden of
providing the required information to
consumers. All comments should be
filed as prescribed in the ADDRESSES
section above, and must be received on
or before March 29, 2022.
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before March 29, 2022. Write
‘‘Paperwork Reduction Act: FTC File
No. P072108’’ on your 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.
13 The revised figure is an average of Bureau of
Labor Statistics mean hourly wages for potentially
analogous employee types: First-line supervisors of
office and administrative support workers ($29.81);
bookkeeping, accounting, and auditing clerks
($21.10); brokerage clerks ($28.11); eligibility
interviewers, government programs ($23.07). See
BLS Table 1. This averages to $25.52 per hour,
rounded.
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Due to 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
encourage you to submit your comments
online through the https://
www.regulations.gov website.
If you file your comment on paper,
write ‘‘Paperwork Reduction Act: FTC
File No. P072108’’ 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 J),
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,
Washington, DC 20024. If possible,
please submit your paper comment to
the Commission by courier or overnight
service.
Because your comment will become
publicly available at https://
www.regulations.gov, you are solely
responsible for making sure that your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include any 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 that your
comment does not include any 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. See FTC Rule 4.9(c). Your
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comment will be kept confidential only
if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted at www.regulations.gov,
we cannot redact or remove your
comment, 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.
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 March 29, 2022. 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.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2022–01710 Filed 1–27–22; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
A. OMB Control Number, Title, and
Any Associated Form(s)
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
9000–0048, Certain Federal
Acquisition Regulation Part 15
Requirements.
[OMB Control No. 9000–0048; Docket No.
2021–0053; Sequence No. 12]
B. Need and Uses
Submission for OMB Review; Certain
Federal Acquisition Regulation Part 15
Requirements
Department of Defense (DOD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Notice.
AGENCY:
Under the provisions of the
Paperwork Reduction Act, the
Regulatory Secretariat Division has
submitted to the Office of Management
and Budget (OMB) a request to review
and approve a revision of a previously
approved information collection
requirement regarding certain Federal
Acquisition Regulation (FAR) part 15
requirements.
jspears on DSK121TN23PROD with NOTICES1
SUMMARY:
Submit comments on or before
February 28, 2022.
ADDRESSES: Written comments and
recommendations for this information
collection should be sent within 30 days
of publication of this notice to
www.reginfo.gov/public/do/PRAMain.
Find this particular information
DATES:
VerDate Sep<11>2014
18:03 Jan 27, 2022
collection by selecting ‘‘Currently under
Review—Open for Public Comments’’ or
by using the search function.
Additionally, submit a copy to GSA
through https://www.regulations.gov
and follow the instructions on the site.
This website provides the ability to type
short comments directly into the
comment field or attach a file for
lengthier comments.
Instructions: All items submitted
must cite OMB Control No. 9000–0048,
Certain Federal Acquisition Regulation
Part 15 Requirements. Comments
received generally will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. To confirm
receipt of your comment(s), please
check www.regulations.gov,
approximately two-to-three days after
submission to verify posting. If there are
difficulties submitting comments,
contact the GSA Regulatory Secretariat
Division at 202–501–4755 or
GSARegSec@gsa.gov.
FOR FURTHER INFORMATION CONTACT:
Zenaida Delgado, Procurement Analyst,
at telephone 202–969–7207, or
zenaida.delgado@gsa.gov.
SUPPLEMENTARY INFORMATION:
Jkt 256001
DoD, GSA, and NASA are combining
OMB Control Nos. for the Federal
Acquisition Regulation (FAR) by FAR
part. This consolidation is expected to
improve industry’s ability to easily and
efficiently identify burdens associated
with a given FAR part. The review of
the information collections by FAR part
allows improved oversight to ensure
there is no redundant or unaccounted
for burden placed on industry. Lastly,
combining information collections in a
given FAR part is also expected to
reduce the administrative burden
associated with processing multiple
information collections.
This justification supports the
revision of the expiration date of OMB
Control No. 9000–0048 and combines it
with the previously approved
information collections under OMB
Control No. 9000–0078, with the new
title ‘‘Certain Federal Acquisition
Regulation Part 15 Requirements.’’
Upon approval of this consolidated
information collection, OMB Control
No. 9000–0078 will be discontinued.
The burden requirements previously
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approved under the discontinued
number will be covered under OMB
Control No. 9000–0048.
This clearance covers the information
that offerors and contractors must
submit to comply with the following
FAR requirements:
1. FAR 15.407–2(e), Make-or-buy
programs. When prospective contractors
are required to submit proposed makeor-buy program plans for negotiated
acquisitions, paragraph (e) requires the
following information in their proposal:
(a) A description of each major item
or work effort;
(b) Categorization of each major item
or work effort as ‘‘must make,’’ ‘‘must
buy,’’ or ‘‘can either make or buy’’;
(c) For each item or work effort
categorized as ‘‘can either make or buy,’’
a proposal either to ‘‘make’’ or to ‘‘buy’’;
(d) Reasons for categorizing items and
work efforts as ‘‘must make’’ or ‘‘must
buy,’’ and proposing to ‘‘make’’ or to
‘‘buy’’ those categorized as ‘‘can either
make or buy’’;
(e) Designation of the plant or
division proposed to make each item or
perform each work effort, and a
statement as to whether the existing or
proposed new facility is in or near a
labor surplus area;
(f) Identification of proposed
subcontractors, if known, and their
location and size status;
(g) Any recommendations to defer
make-or-buy decisions when
categorization of some items or work
efforts is impracticable at the time of
submission; and
(h) Any other information the
contracting officer requires in order to
evaluate the program.
2. FAR 52.215–1(c)(2)(iv)—
Authorized Negotiators. This provision
requires firms offering supplies or
services to the Government under
negotiated solicitations to provide the
names, titles, and telephone and
facsimile numbers (and electronic
addresses if available) of authorized
negotiators to assure that discussions
are held with authorized individuals.
3. FAR 52.215–9, Changes or
Additions to Make-or-Buy Program.
This clause requires the contractor to
submit, in writing, for the contracting
officer’s advance approval a notification
and justification of any proposed change
in the make-or-buy program
incorporated in the contract.
4. FAR 52.215–14—Integrity of Unit
Prices. This clause requires offerors and
contractors under negotiated
solicitations and contracts to identify
those supplies which they will not
manufacture or to which they will not
contribute significant value, if requested
by the contracting officer or when
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Agencies
[Federal Register Volume 87, Number 19 (Friday, January 28, 2022)]
[Notices]
[Pages 4598-4600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01710]
[[Page 4598]]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Paperwork Reduction Act of 1995
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the Office of Management and Budget clearance for
information collection requirements in its regulation ``Duties of
Furnishers of Information to Consumer Reporting Agencies''
(``Information Furnishers Rule''), which applies to certain motor
vehicle dealers, and its shared enforcement with the Bureau of Consumer
Financial Protection (``CFPB'') of the furnisher provisions (subpart E)
of the CFPB's Regulation V regarding other entities. The current
clearance expires on July 31, 2022.
DATES: Comments must be filed by March 29, 2022.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Information Furnishers
Rule, PRA Comment, P135407,'' 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 J), 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
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Gorana Neskovic, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, (202)
326-2322, 600 Pennsylvania Ave. NW, CC-8232, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Title: Duties of Furnishers of Information to Consumer Reporting
Agencies.
OMB Control Number: 3084-0144.
Type of Review: Extension without change of a currently approved
collection.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 17,483 hours.
Estimated Annual Labor Costs: $966,143.
Abstract: The Dodd-Frank Act \1\ transferred most of the FTC's
rulemaking authority for the furnisher provisions of the Fair Credit
Reporting Act (``FCRA'') \2\ to the CFPB. The FTC, however, retains
rulemaking authority for motor vehicle dealers that are predominantly
engaged in the sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.\3\ In addition, the FTC retains
its authority to enforce the furnisher provisions of the FCRA and rules
issued under those provisions. Accordingly, the FTC and CFPB have
overlapping enforcement authority for many entities subject to CFPB's
Regulation V (subpart E) and the FTC has sole enforcement authority for
the motor vehicle dealers subject to the FTC rule.
---------------------------------------------------------------------------
\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ 15 U.S.C. 1681 et seq.
\3\ See Dodd-Frank Act, Sec. 1029(a), (c).
---------------------------------------------------------------------------
Under section 660.3 of the FTC's Information Furnishers Rule \4\
and section 1022.42 of the CFPB Rule,\5\ furnishers must establish and
implement reasonable written policies and procedures regarding the
accuracy and integrity of the information relating to consumers that
they furnish to a consumer reporting agency (``CRA'') for inclusion in
a consumer report.\6\ Section 660.4 of the FTC Rule and section 1022.43
of the CFPB Rule require that entities which furnish information about
consumers to a CRA respond to direct disputes from consumers. These
provisions also require that a furnisher notify consumers by mail or
other means (if authorized by the consumer) within five business days
after making a determination that a dispute is frivolous or irrelevant
(``F/I dispute'').
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\4\ 16 CFR part 660.
\5\ 12 CFR part 1022.
\6\ The rule also provides that an entity is not a furnisher
when it: Provides information to a CRA solely to obtain a consumer
report for a permissible purpose under the FCRA; is acting as a CRA
as defined in section 603(f) of the FCRA; is an individual consumer
to whom the furnished information pertains; or is a neighbor,
friend, or associate of the consumer, or another individual with
whom the consumer is acquainted or who may have knowledge about the
consumer's character, general reputation, personal characteristics,
or mode of living in response to a specific request from a CRA.
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Burden Statement
FTC staff estimates that approximately 6,385 information furnishers
are subject to the FTC's Information Furnishers Rule and its
enforcement authority.\7\
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\7\ The CFPB estimates that there are 16,000 furnishers,
excluding motor vehicle dealers that are subject to the FTC's
jurisdiction, with an allocation to that agency of 63% of the burden
or 10,080 respondents. See CFPB Supporting Statement Part A, Fair
Credit Reporting Act (Regulation V) 12 CFR 1022 (OMB Control Number:
3170-0002) (https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202008-3170-001). Allocating the remaining
37% of the burden to the FTC yields 5,920 respondents, excluding
motor vehicle dealers that are subject to the FTC's jurisdiction.
FTC staff estimate that there are approximately 46,525 motor vehicle
dealers in the U.S. See U.S. Census Bureau, All Sectors: County
Business Patterns, including ZIP Code Business Patterns, by Legal
Form of Organization and Employment Size Class for the U.S., States,
and Selected Geographies: 2019, available at https://data.census.gov/cedsci/table?q=CBP2019.CB1900CBP&n=44111%3A44112&;tid=CBP2019.CB1900CBP&hide
Preview=true&nkd=EMPSZES~001,LFO~001 (listing 21,427 establishments
for ``new car dealers,'' NAICS code 44111, and 25,098 establishments
for ``used car dealers,'' NAICS code 44112). It is difficult to
determine precisely the number of motor vehicle dealers that are
subject to the FTC's jurisdiction and that are furnishers. Given the
restrictions in section 1029(a) of the Dodd-Frank Act that motor
vehicle dealers subject to the FTC's jurisdiction are those that
routinely assign consumer contracts governing retail credit to an
unaffiliated third-party finance source, Commission staff believes
the number is de minimis. Accordingly, the FTC estimates that 1% of
motor vehicle dealers subject to the FTC's jurisdiction are
furnishers of information to CRAs or 465 respondents. Thus, 465
motor vehicle dealers + 5,920 other entities = 6,385 respondents for
the FTC's burden calculations.
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Section 660.3 of FTC Rule/Section 1022.42 of CFPB Rule
A. Burden Hours
Section 660.3 of the FTC's Furnisher Rule and section 1022.42 of
Regulation V (subpart E) require furnishers to establish written
policies and procedures regarding the accuracy and integrity of
information relating to consumers that they furnish to a CRA.
Furnishers must also review these policies and procedures periodically
and update them as necessary to ensure their continued effectiveness.
FTC staff estimate a yearly recurring burden of 2 hours for training to
help ensure continued compliance regarding written policies and
procedures for the accuracy and integrity of the information furnished
to a CRA about consumers.\8\ This yields an annual hours burden of
12,770 hours (6,385 respondents x 2 hours for training).
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\8\ 74 FR 31484, 31505 (July 1, 2009 FTC and Federal financial
agencies' final rules).
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B. Labor Costs
Labor costs are derived by applying appropriate estimated hourly
cost figures to the burden hours described above. The FTC assumes that
respondents will use managerial and/or professional technical personnel
to train
[[Page 4599]]
company employees on continued compliance with the information
furnisher requirements under the FTC and CFPB Rules. This yields
estimated annual labor costs of $773,096 (12,770 hours x $60.54 \9\).
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\9\ https://www.bls.gov/news.release/ocwage.nr0.htm:
``Occupational Employment and Wages--May 2017,'' Bureau of Labor
Statistics, U.S. Department of Labor, released March 30, 2018, Table
1 (``National employment and wage data from the Occupational
Employment Statistics survey by occupation, May 2017) (hereinafter,
``BLS Table 1''). See mean hourly wage for ``Training and
Development Managers.''
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Section 660.4 of FTC Rule/Section 1022.43 of CFPB Rule
Section 660.4 of the FTC's Information Furnishers Rule and section
1022.43 of the CFPB's Regulation V (subpart E) require furnishers to
respond to direct disputes from consumers and notify consumers by mail
or other means (if authorized by the consumer) within five business
days after making a determination that a dispute is frivolous or
irrelevant.
A. Burden Hours
FTC staff estimate that the burden necessary to prepare and
distribute F/I notices is approximately 14 minutes per notice.\10\
Based on the calculations below, this yields an annual hours burden of
2,635 hours.
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\10\ 74 FR at 31505.
1. 21,720 total F/I disputes \11\
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\11\ Id. at 31506 n. 58.
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2. Motor vehicle dealer-only furnisher disputes are assumed to be 4% of
the total: 21,720 x .04 = 869 F/I disputes \12\
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\12\ FTC staff believes that 4% is a reasonable estimate based
on recent data. See ``Key Dimensions and Processes in the U.S.
Credit Reporting System: A review of how the nation's largest credit
bureaus handle consumer data,'' December 2012, pp. 14, 29, 31, 34.
The CFPB report noted that almost 40% of all consumer disputes at
the nationwide CRAs, on average, can be linked to collections. It
stated that collection trade lines generate significantly higher
numbers of consumer disputes than other types of trade lines--
specifically, four times higher than auto-related dispute rates.
These figures seem to suggest that almost 10% of all consumer
disputes at the nationwide CRAs, on average, can be linked to auto-
related disputes. When the FTC issued its final Rule, FTC staff
estimated that 40% of direct disputes would result in the sending of
F/I dispute notices. See 74 FR 31506 n.58. The FTC's estimate of 4%
is based on taking forty percent of the 10% of all consumer disputes
at the nationwide CRAs, on average, linked to auto loans.
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3. 20,851 respondents (21,720-869 FTC only) / by 2 = 10,425 F/I
disputes subject to FTC shared jurisdiction
4. 869 FTC only F/I disputes + 10,425 additional F/I disputes = 11,294
F/I dispute notices for the FTC's jurisdiction
5. 11,294 F/I disputes x 14 minutes each = 2,635 hours
B. Labor Costs
Labor costs are derived by applying appropriate estimated hourly
cost figures to the burden hours described above. The FTC assumes that
respondents will use skilled administrative support personnel to
provide the required F/I dispute notices to consumers. This yields
estimated annual labor costs of $67,245 (2,635 hours x $25.52 \13\).
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\13\ The revised figure is an average of Bureau of Labor
Statistics mean hourly wages for potentially analogous employee
types: First-line supervisors of office and administrative support
workers ($29.81); bookkeeping, accounting, and auditing clerks
($21.10); brokerage clerks ($28.11); eligibility interviewers,
government programs ($23.07). See BLS Table 1. This averages to
$25.52 per hour, rounded.
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FTC staff believes that these information collection requirements
impose negligible capital or other non-labor costs, as the affected
entities are already likely to have the necessary supplies and
equipment (e.g., offices and computers) to administer the information
collections described above.
Request for Comments: Under the PRA, 44 U.S.C. 3501-3521, federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3), 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing PRA clearance for the
Information Furnishers Rule.
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) Whether the disclosure requirements are necessary,
including whether the information will be practically useful; (2) the
accuracy of our burden estimates, including whether the methodology and
assumptions used are valid; (3) ways to enhance the quality, utility,
and clarity of the information to be collected; and (4) ways to
minimize the burden of providing the required information to consumers.
All comments should be filed as prescribed in the ADDRESSES section
above, and must be received on or before March 29, 2022.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before March 29, 2022.
Write ``Paperwork Reduction Act: FTC File No. P072108'' on your
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.
Due to 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 encourage you
to submit your comments online through the https://www.regulations.gov
website.
If you file your comment on paper, write ``Paperwork Reduction Act:
FTC File No. P072108'' 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 J),
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, Washington, DC 20024. If
possible, please submit your paper comment to the Commission by courier
or overnight service.
Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
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 that your comment does not include
any 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. See FTC Rule 4.9(c). Your
[[Page 4600]]
comment will be kept confidential only if the General Counsel grants
your request in accordance with the law and the public interest. Once
your comment has been posted at www.regulations.gov, we cannot redact
or remove your comment, 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.
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 March 29,
2022. 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.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2022-01710 Filed 1-27-22; 8:45 am]
BILLING CODE 6750-01-P