[Federal Register Volume 76, Number 171 (Friday, September 2, 2011)]
[Rules and Regulations]
[Pages 54690-54691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22593]
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FEDERAL TRADE COMMISSION
16 CFR Part 2
Statutory Delays of Notifications and Prohibitions of Disclosure
AGENCY: Federal Trade Commission.
ACTION: Final rule.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
establishing an internal procedure for delegating its authority to seek
court orders to delay notification and prohibit disclosure of
Commission compulsory process under the Right to Financial Privacy Act
(RFPA), the Electronic
[[Page 54691]]
Communications Privacy Act (ECPA), and the U.S. SAFE WEB Act (``SAFE
WEB''). This procedure is intended to make the process for seeking such
orders more administratively efficient.
DATES: This final rule is effective September 2, 2011.
FOR FURTHER INFORMATION CONTACT: Alex Tang, atang@ftc.gov, 202-326-
2447; or W. Ashley Gum, wgum@ftc.gov, 202-326-3006; Federal Trade
Commission, Office of the General Counsel, 600 Pennsylvania Avenue NW.,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION: The RFPA and the ECPA require the FTC, in
certain cases, to notify customers when seeking their records from
financial institutions or service providers subject to those statutes
in the Commission's law enforcement investigations and proceedings. See
12 U.S.C. 3405 (RFPA); 18 U.S.C. 2703(b)(1)(B) (ECPA). These statutes,
and SAFE WEB, also authorize the filing of an application seeking an
order to delay such notification and to prohibit the recipient of the
agency's compulsory process from disclosing that the FTC has requested
or received the records, where such notice or disclosure would
jeopardize the FTC's investigation. See 12 U.S.C. 3409 (RFPA); 18
U.S.C. 2705 (ECPA); see also 15 U.S.C. 57b-2a(b) (SAFE WEB). In cases
where these statutes do not require customer notification, SAFE WEB
separately authorizes the FTC to seek an order prohibiting the
recipient of FTC compulsory process from disclosing the existence of
such process to any person. See 15 U.S.C. 57b-2a(c).
Under this final rule, delegating the Commission's authority
pursuant to Reorganization Plan No. 4 of 1961, 26 FR 6191, either an
individual Commissioner or the General Counsel may authorize the staff
to file actions seeking delay of notification and prohibition of
disclosure under the statutes cited above. This delegation will
facilitate the Commission's exercise of this authority and, as solely a
matter of internal agency administration, is not intended to confer any
enforceable right, privilege, or benefit on behalf of any person.
Procedural Requirements
A. Administrative Procedure Act
The FTC has determined that publication of this rule without prior
notice and the opportunity for public comment is warranted because this
is a rule of agency procedure and practice and therefore is exempt from
notice and comment rulemaking requirements of the Administrative
Procedure Act, 5 U.S.C. 553(b)(A). Because it is a non-substantive
rule, the Commission shall make the rule effective immediately upon
publication. See 5 U.S.C. 553(d)(2).
B. Regulatory Flexibility Act
Because the Commission has determined that it may issue this rule
without public comment, the Commission is also not required to publish
any initial or final regulatory flexibility analysis under the
Regulatory Flexibility Act as part of such action. See 5 U.S.C. 601(2),
604(a).
C. Paperwork Reduction Act of 1995
The final rule is not subject to the Paperwork Reduction Act (44
U.S.C. 3501 et seq.) because it does not contain any new information
collection requirements.
List of Subjects in 16 CFR Part 2
Administrative practice and procedure.
For the reasons set forth above, the Federal Trade Commission is
amending Subpart A of part 2 of title 16, Code of Federal Regulations,
as follows:
PART 2--NONADJUDICATIVE PROCEDURES
0
1. The authority citation for part 2 continues to read as follows:
Authority: 15 U.S.C. 46, unless otherwise noted.
Subpart A--Inquiries; Investigations; Compulsory Processes
0
2. Add Sec. 2.17 to read as follows:
Sec. 2.17 Statutory delays of notifications and prohibitions of
disclosure.
Upon authorization by the Commissioner who issues compulsory
process pursuant to Sec. 2.7(a) or, alternatively, upon authorization
by the General Counsel, Commission attorneys may seek to delay
notifications or prohibit disclosures pursuant to the Right to
Financial Privacy Act (12 U.S.C. 3409), the Electronic Communications
Privacy Act (18 U.S.C. 2705), or section 7 of the U.S. SAFE WEB Act (15
U.S.C. 57b-2a).
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-22593 Filed 9-1-11; 8:45 am]
BILLING CODE 6750-01-P