Notice2023-03888
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 24, 2023
Issuing agencies
Federal Trade Commission
Abstract
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 Fair Credit Reporting Risk- Based Pricing Regulations ("Risk-Based Pricing Rule" or "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 September 30, 2023.
Full Text
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<title>Federal Register, Volume 88 Issue 37 (Friday, February 24, 2023)</title>
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[Federal Register Volume 88, Number 37 (Friday, February 24, 2023)]
[Notices]
[Pages 11917-11919]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03888]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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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 Fair Credit Reporting Risk-
Based Pricing Regulations (``Risk-Based Pricing Rule'' or ``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 September 30,
2023.
DATES: Comments must be filed by April 25, 2023.
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
[[Page 11918]]
below. Write ``Risk-Based Pricing Rule, PRA Comment, P145403,'' on your
comment, and file your comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> 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: Genevieve Bonan, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, 400 7th
Street SW, Drop 5422, Washington, DC 20024, <a href="/cdn-cgi/l/email-protection#8cebeee3e2ede2cceaf8efa2ebe3fa"><span class="__cf_email__" data-cfemail="2a4d4845444b446a4c5e49044d455c">[email protected]</span></a>, (202) 326-
3139.
SUPPLEMENTARY INFORMATION:
Title of Collection: Fair Credit Reporting Risk-Based Pricing
Regulations, 16 CFR part 640.
OMB Control Number: 3084-0145.
Type of Review: Extension without change of currently approved
collection.
Abstract: The Dodd-Frank Wall Street Reform and Consumer Protection
Act (``Dodd-Frank Act'') was enacted on July 21, 2010.\1\ 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\ After the enactment
of the Dodd-Frank Act, the FTC retains rulemaking authority for its
Risk-Based Pricing Rule (16 CFR part 640) 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\ The FTC shares
enforcement authority with the CFPB for provisions of Regulation V
Subpart H (12 CFR 1022.70-1022.75) that apply to entities other than
motor vehicle dealers described above.
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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.
\4\ See Dodd-Frank Act, secs. 1029(a), (c).
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The Risk-Based Pricing Rule and the CFPB's Regulation V require
that a creditor 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.\5\ 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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\5\ 16 CFR 640.3-640.4; 12 CFR 1022.72-1022.73.
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Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 8,951,460.
Estimated Annual Labor Costs: $179,566,288.
As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in the Risk-Based Pricing
Rule.
Burden Statement
The Commission estimates that approximately 238,346 entities are
covered by the FTC and CFPB Rules,\6\ including 60,036 motor vehicle
dealers that are subject to exclusive FTC jurisdiction.\7\ The FTC
assumes the full burden for the motor vehicle dealers subject to its
exclusive jurisdiction and shares burden for the remaining entities
subject to both CFPB and FTC enforcement authority. Accordingly, as an
analytical framework, 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
burden, and adds to the resulting subtotal the estimated burden for
motor vehicle dealers over which the FTC retains exclusive rulemaking
and enforcement authority.
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\6\ See NAICS Association, LLC, NAICS Code Drill-Down Table,
available at <a href="https://www.naics.com/search/">https://www.naics.com/search/</a> (the categories of
covered entities include ``Furniture and Home Furnishings
Retailers,'' ``Electronics and Appliance Retailers'', ``Automobile
Dealers,'' ``Other Motor Vehicle Dealers,'' ``Consumer Lending,''
and ``Utilities'') (last visited Feb. 8, 2023). See also 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: 2020, <a href="https://data.census.gov/table?q=Business+and+Economy&n=221">https://data.census.gov/table?q=Business+and+Economy&n=221</a> (for 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 National Credit Union Administration, 2022q3 Call
Report Data: Federally Insured Credit Unions, <a href="https://ncua.gov/files/publications/analysis/federally-insured-credit-union-list-september-2022.zip">https://ncua.gov/files/publications/analysis/federally-insured-credit-union-list-september-2022.zip</a> (Sep. 2022).
\7\ 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: 2020, https://data.census.gov/
table?q=car+dealers+in+2020&n=44111:44112:44121:441222:441228&tid=CBP
2020.CB2000CBP&nkd=EMPSZES~001,LFO~001. This total is based on
estimates that there are 46,569 franchise/new car and independent/
used car dealers in the U.S., as well as 2,806 recreational vehicle
dealers, 4,141 boat dealers, and 6,520 ATV/other motor vehicle
dealers.
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This yields a total of 149,191 respondents for whom the FTC
accounts for burden (60,036 motor vehicle dealers plus one-half (i.e.,
89,155) of the remaining 178,310 entities subject to shared FTC-CFPB
jurisdiction). The FTC estimates that covered entities spend
approximately 60 hours per year to comply with the Rule's requirements.
As a result, the FTC estimates that the total burden hours attributable
to FTC requirements are 8,951,460 hours (149,161 respondents x 60
hours).
Labor costs are derived by applying 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 $20.06,\8\ to
modify and distribute notices to consumers, for a cumulative labor cost
total of $179,566,288 (8,951,460 hours x $20.06 per hour).
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\8\ See Bureau of Labor Statistics, Occupational Employment and
Wages News Release, May 2021, Table 1, ``National employment and
wage data from the Occupational Employment Statistics survey by
occupation, May 2021,'' available at <a href="https://www.bls.gov/news.release/ocwage.htm">https://www.bls.gov/news.release/ocwage.htm</a>.
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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 and recordkeeping 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 the collection of information.
For the FTC to consider a comment, we must receive it on or before
April 25, 2023. Your comment, including your name and your state, will
be placed on the public record of this proceeding,
[[Page 11919]]
including the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
You can file a comment online or on paper. 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 <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
If you file your comment on paper, write ``Risk-Based Pricing Rule,
PRA Comment, P145403,'' on your comment and on the envelope, and mail
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.
Because your comment will become publicly available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, 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 (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) 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 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 publicly at <a href="http://www.regulations.gov">www.regulations.gov</a>, 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 April 25,
2023. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-03888 Filed 2-23-23; 8:45 am]
BILLING CODE 6750-01-P
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