[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Pages 11108-11110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04235]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
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SUMMARY: The FTC intends to ask the Office of Management and Budget
(``OMB'') to extend for an additional three years the current Paperwork
Reduction Act (``PRA'') clearance for the FTC's enforcement of the
information collection requirements in its ``Fair Credit Reporting
Risk-Based Pricing Regulations'' (``RBP Rule''), which applies to
certain motor vehicle dealers, and its shared enforcement with the
Consumer Financial Protection Bureau (``CFPB'') of the risk-based
pricing provisions (subpart H) of the CFPB's Regulation V regarding
other entities. That clearance expires on August 31, 2014.
DATES: Comments must be filed by April 28, 2014.
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 ``RBP Rule, PRA Comment,
P145403,'' on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/rbprulepra by following the instructions
on the web-based form. If you prefer to file your comment on paper,
mail or deliver your comment to the following address: Federal Trade
Commission, Office of the Secretary, Room H-113 (Annex J), 600
Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Katherine White, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, (202)
326-2878, 600 Pennsylvania Ave. NW., Room NJ-3158, Washington, DC
20580.
SUPPLEMENTARY INFORMATION: On July 21, 2010, President Obama signed
into law the Dodd-Frank Wall Street Reform and Consumer Protection Act
(``Dodd-Frank Act'').\1\ The Dodd-Frank Act substantially changed the
federal legal framework for financial services providers. Among the
changes, the Dodd-Frank Act transferred to the CFPB most of the FTC's
rulemaking authority for the risk-based pricing provisions of the Fair
Credit Reporting Act (``FCRA''),\2\ on July 21, 2011.\3\
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\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ 15 U.S.C. 1681 et seq.
\3\ Dodd-Frank Act, Sec. 1061. This date was the ``designated
transfer date'' established by the Treasury Department under the
Dodd-Frank Act. See Dep't of the Treasury, Bureau of Consumer
Financial Protection; Designated Transfer Date, 75 FR 57252, 57253
(Sept. 20, 2010); see also Dodd-Frank Act, Sec. 1062.
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The FTC retains rulemaking authority for the RBP Rule solely for
motor vehicle dealers described in section 1029(a) of the Dodd-Frank
Act that are
[[Page 11109]]
predominantly engaged in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.\4\
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\4\ See Dodd-Frank Act, Sec. 1029(a), (c).
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In addition, the FTC retains its authority to enforce the risk-
based pricing provisions of the FCRA and the FTC and CFPB rules issued
under those provisions. Thus, the FTC and CFPB have overlapping
enforcement authority for many entities subject to the CFPB rule and
the FTC has sole enforcement authority for the motor vehicle dealers
subject to the FTC rule.
On December 21, 2011, the CFPB issued its interim final FCRA rule,
including the risk-based pricing provisions (subpart H) of CFPB's
Regulation V.\5\ Contemporaneous with that issuance, the CFPB and FTC
had each submitted to OMB, and received its approval for, the agencies'
respective burden estimates reflecting their overlapping enforcement
jurisdiction, with the FTC supplementing its estimates for the
enforcement authority exclusive to it regarding the class of motor
vehicle dealers noted above. The discussion below continues that
analytical framework, as appropriately updated or otherwise refined for
instant purposes.
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\5\ 76 FR 79308 (Dec. 21, 2011).
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Burden statement: Under the PRA, 44 U.S.C. 3501-3521, Federal
agencies must get OMB approval for each collection of information they
conduct or sponsor. ``Collection of information'' includes agency
requests or requirements to submit reports, keep records, or provide
information to a third party. 44 U.S.C. 3502(3); 5 CFR 1320.3(c). The
FTC is seeking clearance for its assumed share of the estimated PRA
burden regarding the disclosure requirements under the FTC and CFPB
Rules.
Under Sec. Sec. 640.3-640.4 of the FTC's RBP Rule \6\ and
Sec. Sec. 1022.72-1022.73 of the CFPB Rule,\7\ a creditor must provide
a risk-based pricing notice to a consumer when the creditor uses a
consumer report to grant or extend credit to the consumer on material
terms that are materially less favorable than the most favorable terms
available to a substantial proportion of consumers from or through that
creditor. Additionally, these provisions require disclosure of credit
scores and information relating to credit scores in risk-based pricing
notices if a credit score of the consumer is used in setting the
material terms of credit.
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\6\ 16 CFR 640.3, -640.4.
\7\ 12 CFR 1022.72, -1022.73.
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The FTC's currently cleared burden totals, post-adjustment for the
effects of the Dodd-Frank Act, are 13,319,471 hours.\8\ The past burden
analysis, however, was tied to the inception of the Rule and its later
amendments, and included one-time burdens attributable to
implementation. The FTC's updated estimate of burden hours reflects
solely the recurring burden of complying with the Rule.
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\8\ OMB Control No. 3084-0145.
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Using the currently cleared estimates (post-adjustment for the
effects of the Dodd-Frank Act) for the number of applicable motor
vehicle dealers and their assumed recurring disclosure burdens, in
addition to the estimated number of and burden for other entities over
which the FTC shares enforcement burden with the CFPB, the FTC proposes
the following:
A. Estimated number of respondents: 160,875.\9\
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\9\ This estimate derives in part from an analysis of the
figures obtained from the North American Industry Classification
System (NAICS) Association's database of U.S. businesses. See http://www.naics.com/search.htm. Commission staff identified categories of
entities under its jurisdiction that also directly provide credit to
consumers. Those categories include retail, vehicle dealers,
consumer lenders, and utilities. The estimate also includes state-
chartered credit unions, which are subject to the Commission's
jurisdiction. See 15 U.S.C. 1681s. For the latter category,
Commission staff relied on estimates from the Credit Union National
Association for the number of non-federal credit unions. See http://www.ncua.gov/Legal/Documents/Reports/AR2012.pdf. For purposed of
estimating the burden, Commission staff made the conservative
assumption that all of the included entities engage in risk-based
pricing. The resulting tally of entities numbered 199,500. From this
amount, the FTC deducted an estimated portion attributable to motor
vehicle dealers in order to calculate a net amount in which to split
evenly with the CFPB for the remaining number of respondents for
purposes of estimating the FTC's overall share of PRA burden. The
FTC estimated there were 122,250 motor vehicle dealers, determined
as follows: 111,136 car dealers per NAICS data (57,535 new car
dealers, 53,601 used car dealers) + 10% add-on approximation for
other motor vehicle types (motorbikes, boats, other recreational).
Excluding the estimated number of motor vehicle dealers, 122,250,
from the estimated overall number of affected entities, 199,500,
leaves 77,250 as the number of respondents for the agencies' 50:50
apportionment: 77,250, i.e., about 38,625 each. Thus, for the FTC,
the estimated number of respondents for its calculations is 160,875
(122,250 + 38,625).
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B. Burden Hours: 9,652,500.
Yearly recurring burden of 60 hours per respondent \10\ to modify
and distribute notices x 160,875 respondents = 9,652,500 hours,
cumulatively.
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\10\ Assumption: 5 hours per month per respondent.
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C. Labor Costs: $171,331,875.
Labor costs are derived by applying appropriate estimated hourly
cost figures to the burden hours described above. The FTC assumes that
respondents will use correspondence clerks, at a mean hourly wage of
$17.75,\11\ to modify and distribute notices to consumers, for a
cumulative labor cost total of $171,331,875.
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\11\ http://www.bls.gov/news.release/pdf/ocwage.pdf: Bureau of
Labor Statistics, Economic News Release, March 29, 2013, Table 1,
``National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2012.''
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D. Capital/Non-Labor Costs: $0.
The FTC believes that the FTC and CFPB rules impose negligible
capital or other non-labor costs, as the affected entities are likely
to have the necessary supplies and/or equipment already (e.g., offices
and computers) for the information collections discussed above.
Request for Comment: 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 April 28,
2014.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before April 28, 2014.
Write ``RBP Rule, PRA Comment, P145403,'' on your comment. Your
comment--including your name and your state--will be placed on the
public record of this proceeding, including to the extent practicable,
on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to
remove individuals' home contact information from comments before
placing them on the Commission Web site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, like anyone'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, like medical records or other
individually identifiable health
[[Page 11110]]
information. In addition, do not include any ``[t]rade secret or any
commercial or financial information which is . . . privileged or
confidential'' as provided in 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). In particular, do
not include competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns devices, manufacturing
processes, or customer names.
If you want the Commission to give your comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you have to follow the procedure explained
in FTC Rule 4.9(c).\12\ Your comment will be kept confidential only if
the FTC General Counsel grants your request in accordance with the law
and the public interest.
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\12\ 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), 16 CFR 4.9(c).
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Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/rbprulepra, by following the instructions on the web-based form. If
this Notice appears at http://www.regulations.gov/#!home, you also may
file a comment through that Web site.
If you file your comment on paper, write ``RBP Rule, PRA Comment,
P145403,'' on your comment and on the envelope, and mail or deliver it
to the following address: Federal Trade Commission, Office of the
Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW.,
Washington, DC 20580. If possible, submit your paper comment to the
Commission by courier or overnight service.
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 April 28,
2014. You can find more information, including routine uses permitted
by the Privacy Act, in the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2014-04235 Filed 2-26-14; 8:45 am]
BILLING CODE 6750-01-P