[Federal Register Volume 82, Number 41 (Friday, March 3, 2017)]
[Notices]
[Pages 12452-12454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04117]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
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 July 1, 2017.
DATES: Comments must be filed by May 2, 2017.
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 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: Katherine White, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, (202)
326-2878, 600 Pennsylvania Ave. NW., Room CC-8232, 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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 predominantly engaged in the sale and servicing of motor
vehicles, the leasing and servicing of motor vehicles, or both.\4\
---------------------------------------------------------------------------
\4\ See Dodd-Frank Act, Sec. 1029(a), (c).
---------------------------------------------------------------------------
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
[[Page 12453]]
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.
As an analytical framework to estimate PRA burden in the ``Burden
Statement'' below, the FTC estimates burden pertaining to respondents
over which both agencies have shared enforcement authority, divides the
resulting total by one-half to reflect the FTC's shared jurisdiction,
and adds to the resulting subtotal the incremental estimated burden
regarding the motor vehicle dealers described above over which the FTC
retains exclusive enforcement (and rulemaking) authority.
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.
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 May 2, 2017.
Under Sec. Sec. 640.3-640.4 of the FTC's RBP Rule \5\ and
Sec. Sec. 1022.72-1022.73 of the CFPB Rule,\6\ 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.
---------------------------------------------------------------------------
\5\ 16 CFR 640.3, -640.4.
\6\ 12 CFR 1022.72, -1022.73.
---------------------------------------------------------------------------
The FTC's currently cleared burden totals, post-adjustment for the
effects of the Dodd-Frank Act, are 9,652,500 hours based on an
estimated population of 160,875 entities apportioned to FTC enforcement
and/or rulemaking authority.\7\
---------------------------------------------------------------------------
\7\ OMB Control No. 3084-0145.
---------------------------------------------------------------------------
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 updated estimates:
A. Estimated Number of Respondents: 160,250.\8\
---------------------------------------------------------------------------
\8\ 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 https://www.ncua.gov/Legal/Documents/Reports/annual-report-2015.pdf. For
purposes 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 estimates there are approximately
121,000 motor vehicle dealers, determined as follows: 86,442 car
dealers per NAICS data (49,905 new car dealers, 36,537 used car
dealers) + [3,191 Recreational Vehicle Dealers; 7,185 boat dealers;
24,157 motorcycle, ATV/All Other Motor Vehicle Dealers] = 120,975.
See https://www.naics.com/six-digit-naics/?code=4445. Excluding the
estimated number of motor vehicle dealers, 121,000, from the
estimated overall number of affected entities, 199,500, leaves
78,500 as the number of respondents for the agencies' 50:50
apportionment: 78,500, i.e., 39,250 each. Thus, for the FTC, the
estimated number of respondents for its calculations is 160,250
(121,000 + 39,250).
---------------------------------------------------------------------------
B. Burden Hours: 9,615,000.
Yearly recurring burden of 60 hours per respondent \9\ to modify
and distribute notices x 160,250 respondents = 9,615,000 hours,
cumulatively.
---------------------------------------------------------------------------
\9\ Assumption: 5 hours per month per respondent.
---------------------------------------------------------------------------
C. Labor Costs: $167,974,050.
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
$17.47,\10\ to modify and distribute notices to consumers, for a
cumulative labor cost total of $167,974,050.
---------------------------------------------------------------------------
\10\ https://www.bls.gov/news.release/ocwage.htm: Bureau of
Labor Statistics, Economic News Release, March 30, 2016, Table 1,
``National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2015.''
---------------------------------------------------------------------------
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
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before May 2, 2017.
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 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), 16CFR
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
[[Page 12454]]
explained in FTC Rule 4.9(c).\11\ Your comment will be kept
confidential only if the FTC General Counsel grants your request in
accordance with the law and the public interest. Once your comment is
posted, as legally required by FTC Rule 4.9(b), we cannot redact or
remove your comment from the FTC's public record, including the FTC's
Web site, 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 in accordance with the law and the public
interest, as explained above.
---------------------------------------------------------------------------
\11\ 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).
---------------------------------------------------------------------------
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.
When 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, 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. 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 May 2, 2017.
For information on the Commission's privacy policy, including routine
uses permitted by the Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.
David C. Shonka,
Acting General Counsel.
[FR Doc. 2017-04117 Filed 3-2-17; 8:45 am]
BILLING CODE 6750-01-P