Agency Information Collection Activities; Proposed Collection; Comment Request; Extension

CourtFederal Trade Commission
Citation85 FR 9775
Record Number2020-03371
Published date20 February 2020
Federal Register, Volume 85 Issue 34 (Thursday, February 20, 2020)
[Federal Register Volume 85, Number 34 (Thursday, February 20, 2020)]
                [Pages 9775-9777]
                From the Federal Register Online via the Government Publishing Office []
                [FR Doc No: 2020-03371]
                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 ``Fair Credit Reporting
                Risk-Based Pricing Regulations'' (``Risk-Based Pricing 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. The current clearance expires on July 31,
                DATES: Comments must be filed by April 20, 2020.
                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 ``Risk-Based Pricing
                Rule, PRA Comment, P145403,'' on your comment and file your comment
                online at, by following the instructions on
                the web-
                [[Page 9776]]
                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
                FOR FURTHER INFORMATION CONTACT: Monique Einhorn, Attorney, Division of
                Privacy and Identity Protection, Bureau of Consumer Protection, (202)
                326-2575, 600 Pennsylvania Ave., NW, Room CC-8232, Washington, DC
                 Title of Collection: Fair Credit Reporting Risk-Based Pricing
                Regulations, 16 CFR 640.
                 OMB Control Number: 3084-0145.
                 Type of Review: Extension without change of currently approved
                 Affected Public: Private Sector: Businesses and other for-profit
                 Estimated Annual Burden Hours: 7,950,000.
                 Estimated Annual Labor Costs: $149,062,500.
                 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 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 C (12 CFR 1022.21) that apply to entities other than motor
                vehicle dealers described above.
                 \1\ Pub. L. 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 Sec. Sec. 1029 (a), (c).
                 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.
                 \5\ 16 CFR 640.3-640.4; 12 CFR 1022.72-1022.73.
                 Under the PRA, 44 U.S.C. 3501-3521, the FTC is requesting that OMB
                renew the clearance (OMB Control Number 3084-0145) for the PRA burden
                associated with the Rule. The FTC is seeking clearance for its assumed
                share of the estimated PRA burden regarding the disclosure requirements
                under the FTC and CFPB Rules.
                Burden Statement
                 The Commission estimates that approximately 168,000 entities are
                covered by the FTC and CFPB Rules,\6\ including 97,000 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.
                 \6\ See (categories of covered
                entities include retail, motor 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
                 \7\ This total is based on estimates that there are 54,753
                franchise/new car and independent/used car dealers in the U.S., as
                well as 3,876 recreational vehicle dealers, 11,034 boat dealers, and
                27,336 ATV/Other Motor Vehicle Dealers. These figures are based on
                estimates by the National Automobile Dealers Association and the
                National Independent Automobile Dealers Association, see NADA Data
                2018: Annual Report;, as well as data from the NAICS
                Association, see
                 This yields a total of 132,500 respondents for whom the FTC
                accounts for burden (97,000 motor vehicle dealers plus one-half (i.e.,
                35,500) of the remaining 71,000 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 is 7,950,000 hours (132,500 respondents x 60
                 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 $18.75,\8\ to
                modify and distribute notices to consumers, for a cumulative labor cost
                total of $149,062,500.
                 \8\ See Bureau of Labor Statistics, Occupational Employment and
                Wages News Release, May 2018, Table 1, ``National employment and
                wage data from the Occupational Employment Statistics survey by
                occupation, May 2018,'' at:
                 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 20, 2020.
                 You can file a comment online or on paper. For the Commission to
                consider your comment, we must receive it on or before April 20, 2020.
                Write ``Risk-Based Pricing Rule, PRA Comment, P145403'' on your
                comment. 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 through the website by following the instructions on the web-
                based form provided. Your comment, including your name and your state--
                will be placed on the public record of this proceeding, including the
                [[Page 9777]]
                 If you file your comment on paper, write ``Risk-Based Pricing Rule,
                PRA Comment, P145403'' 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 be placed on the public record, 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 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 on the public FTC website--as legally required by FTC Rule
                4.9(b)--we cannot redact or remove your comment from the FTC website,
                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 20,
                2020. For information on the Commission's privacy policy, including
                routine uses permitted by the Privacy Act, see
                Heather Hippsley,
                Deputy General Counsel.
                [FR Doc. 2020-03371 Filed 2-19-20; 8:45 am]
                 BILLING CODE 6750-01-P

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