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[Federal Register Volume 90, Number 29 (Thursday, February 13, 2025)]
[Notices]
[Pages 9549-9551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02571]

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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: The information collection requirements described below will 
be submitted to the Office of Management and Budget (OMB) for review, 
as required by the Paperwork Reduction Act (PRA). The FTC seeks public 
comments on the agency's shared enforcement with the Consumer Financial 
Protection Bureau (CFPB) of the information collection requirements in 
CFPB's rule on Duties of Consumer Reporting Agencies Regarding 
Disclosures to Consumers (Rule). That clearance expires on April 30, 
2025.

DATES: Comments must be filed by April 14, 2025.

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 ``Regulation V, subpart 
N; PRA Comment, P085405,'' on your comment, and file your comment 
online at https://www.regulations.gov 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.

FOR FURTHER INFORMATION CONTACT: Ryan Mehm, Attorney, Bureau of 
Consumer Protection, (202) 326-2918, [email protected], Federal Trade 
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: 
    Title: Regulation V, Subpart N (12 CFR 1022.130-1022.138).
    OMB Control Number: 3084-0128.
    Type of Review: Extension of a currently approved collection.
    Abstract: The FTC shares enforcement authority with the CFPB for 
subpart N of Regulation V. Subpart N requires nationwide consumer 
reporting agencies and nationwide consumer specialty reporting agencies 
to provide to consumers, upon request, one free file disclosure within 
any 12-month period. Generally, it requires the nationwide consumer 
reporting agencies, as defined in section 603(p) of the Fair Credit 
Reporting Act (FCRA), 15 U.S.C. 1681a(p), to create and operate a 
centralized source that provides consumers with the ability to request 
their free annual file disclosures from each of the nationwide consumer 
reporting agencies through a centralized internet website, toll-free 
telephone number, and postal address. Subpart N also requires the 
nationwide consumer reporting agencies to establish a standardized form 
for internet and mail requests for annual file disclosures and provides 
a model standardized form that may be used to comply with that 
requirement. It additionally requires nationwide specialty consumer 
reporting agencies, as defined in section 603(w) of the FCRA, 15 U.S.C. 
1681a(w), to establish a streamlined process for consumers to request 
annual file disclosures. This streamlined process must include a toll-
free telephone number for consumers to make such requests.
    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 Rule.

Burden Statement

    Because the FTC shares enforcement authority with the CFPB for 
subpart N, the two agencies split between them the related estimate of 
PRA burden for firms under their co-enforcement jurisdiction. Estimated 
PRA burden, excluding the halving (to be shown at the conclusion of 
this analysis), are as follows:

A. Requests per Year From Consumers for Free Annual File Disclosures

    When the FTC last sought clearance renewal for the Rule, we 
estimated 34 million requests per year as a representative average to 
calculate PRA burden, and noted that the Commission was seeking more 
recent estimates of the number of requests consumers are making for 
free credit reports. Since that time, the Consumer Data Industry 
Association (``CDIA'') estimated that in 2023 and 2024, the nationwide 
consumer reporting agencies provided on average approximately 17 
million free annual file disclosures through the centralized internet 
website required to be established by the FACT Act and subpart N. Based 
on its knowledge of the industry, FTC staff projected that during this 
same time period of 2023 and 2024 the consumer reporting agencies 
provided no more than 2 million free annual file disclosures through 
the centralized toll-free telephone number and postal address required 
to be established by the FACT Act and subpart N. We expect that the 
number of requests for free annual credit reports will rise over the 
next three years because of increases in the population and consumer 
awareness that they are entitled to a free annual report. As a proxy, 
we are now estimating 21 million requests per year as a representative 
average year to estimate PRA burden for purposes of the instant 
analysis.
    The Commission seeks recent data on how these requests are being 
received--by internet, phone, or by mail.

B. Annual File Disclosures Provided Through the Internet

    Both nationwide and nationwide specialty consumer reporting 
agencies will likely handle the overwhelming majority of consumer 
requests through internet websites. The annual file disclosure requests 
processed through the internet will impose a de minimis hourly burden 
in personnel costs per request on the nationwide and nationwide 
specialty consumer reporting agencies, except for those requests that 
are redirected to the mail process.\1\ However, consumer reporting 
agencies periodically will be required to adjust the internet capacity 
needed to handle the changing request volume. Consumer reporting 
agencies likely will make such adjustments by negotiating or 
renegotiating outsourcing service contracts annually or as conditions 
change. Trained personnel will need to spend time negotiating and 
renegotiating such contracts. Commission staff estimates that 
negotiating such contracts will require a cumulative total of 8,320 
hours and $678,080 in labor costs.\2\ Such activity

[[Page 9550]]

is treated as an annual burden of maintaining and adjusting the 
changing internet capacity requirements.
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    \1\ See infra note 5.
    \2\ Based on the time necessary for similar activity in the 
federal government (including at the FTC), staff estimates that such 
contracting and administration will require approximately 4 full-
time equivalent employees (FTE) for the web service contracts. Thus, 
staff estimates that administering the contract will require four 
FTE, which is 8,320 hours per year (four FTE x 2,080 hours/year). 
The cost is based on the most current Bureau of Labor Statistics 
median hourly rate ($81.50) for computer and information systems 
managers. See Occupational Employment Statistics (released on April 
3, 2024), Occupational Employment and Wages--May 2023, Table 1, 
available at https://www.bls.gov/news.release/ocwage.t01.htm. Thus, 
the estimated setup and maintenance cost for an internet system is 
$678,080 per year (8,320 hours x $81.50/hour).
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C. Annual File Disclosures Requested Over the Telephone

    Most of the telephone requests for annual file disclosures will 
also be handled in an automated fashion, with de minimis personnel 
costs needed to process the requests except for those requests that are 
redirected to the mail process.\3\ As with the internet, consumer 
reporting agencies will require additional time and investment to 
increase and administer the automated telephone capacity for the 
expected increase in request volume. The nationwide and nationwide 
specialty consumer reporting agencies will likely make such adjustments 
by negotiating or renegotiating outsourcing service contracts annually 
or as conditions change. Staff estimates that this will require a total 
of 6,240 hours at a cost of $508,560 in labor costs.\4\ This activity 
also is treated as an annual recurring burden necessary to obtain, 
maintain, and adjust automated call center capacity.
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    \3\ See infra note 5.
    \4\ Staff estimates that recurring contracting for automated 
telephone capacity will require approximately 3 FTE, a total of 
6,240 hours (3 x 2,080 hours). Applying an hourly wage rate of 
$81.50 (see supra note 2), estimated setup and maintenance cost is 
$508,560 (6,240 x $81.50) per year.
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D. Annual File Disclosures Requiring Processing by Mail

    Based on their knowledge of the industry, staff believes that no 
more than 1% of consumers (1% x 21 million, or 210,000) will request an 
annual file disclosure through U.S. postal service mail. Staff 
estimates that clerical personnel will require 10 minutes per request 
to handle these requests, thereby totaling 35,000 hours of time. 
[(210,000 x 10 minutes)/60 minutes per hour = 35,000 hours.]
    In addition, whenever the requesting consumer cannot be identified 
using an automated method (a website or automated telephone service), 
it will be necessary to redirect that consumer to send identifying 
material along with the request by mail. Staff estimates that this will 
occur in about 5% of the new requests (or 1,039,500) \5\ that were 
originally placed over the internet or telephone. Staff estimates that 
clerical personnel will require approximately 10 minutes per request to 
input and process those redirected requests for a cumulative total of 
173,250 clerical hours. [(1,039,500 x 10 minutes)/60 minutes per hour = 
173,250 hours.]
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    \5\ This figure reflects five percent of all requests, net of 
the estimated one percent of all requests that might initially be 
made by mail. That is, 0.05 x (21,000,000-210,000) = 1,039,500.
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E. Instructions to Consumers

    The Rule also requires that certain instructions be provided to 
consumers. See 12 CFR 1022.136(b)(2)(iv)(A) and (B), 
1022.137(a)(2)(iii)(A) and (B). Minimal associated time or cost is 
involved, however. Internet instructions to consumers are embedded in 
the centralized source website and do not require additional time or 
cost for the nationwide consumer reporting agencies. Similarly, for 
telephone requests, the automated phone systems provide the requisite 
instructions when consumers select certain options. Some consumers who 
request their credit reports by mail might additionally request printed 
instructions from the nationwide and nationwide specialty consumer 
reporting agencies. Staff estimates that there will be a total of 
1,249,500 requests each year for free annual file disclosures by 
mail.\6\ Based on its knowledge of the industry, staff estimates that, 
of the predicted 1,249,500 mail requests, 10% (or 124,950) will request 
instructions by mail. If printed instructions are sent to each of these 
consumers by mail, requiring 10 minutes of clerical time per consumer, 
this will total 20,825 hours. [(124,950 instructions x 10 minutes)/60 
minutes per hour.]
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    \6\ This figure includes both the estimated 1% of 21 million 
requests that will be made by mail each year (210,000), and the 
estimated 1,039,500 requests initially made over the internet or 
telephone that will be redirected to the mail process (see supra 
note 5).
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F. Annual Labor Costs

    Labor costs are derived by applying median hourly cost figures to 
the burden hours described above. Staff anticipates that processing of 
requests for annual file disclosures and instructions will be performed 
by clerical personnel and estimates that the processing will require 
229,075 hours at an annual cost of $4,760,179. [(35,000 hours for 
handling initial mail requests + 173,250 hours for handling requests 
redirected to mail + 20,825 hours for handling instructions mailed to 
consumers) x $20.78 per hour.\7\]
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    \7\ See Occupational Employment and Wages--May 2023, Table 1, 
available at https://www.bls.gov/news.release/pdf/ocwage.pdf (Office 
and administrative support workers, all others).
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    As elaborated on above, staff estimates that a total of 14,560 
labor hours will be needed to negotiate or renegotiate outsourced 
service contracts annually (or as conditions otherwise change) to 
increase internet (8,320 hours) and telephone (6,240 hours) capacity 
requirements for internet web services and the automated telephone call 
center. This will result in approximately $1,186,640 per year in labor 
costs. [14,560 hours x $81.50 per hour.\8\]
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    \8\ See supra notes 2 and 4.
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    Thus, estimated cumulative annual labor costs are $5,946,819.

G. Capital/Non-Labor Costs

    As in the previous PRA clearance analysis, FTC staff believes it is 
likely that consumer reporting agencies will use third-party 
contractors (instead of their own employees) to increase the capacity 
of their systems. Because of the way these contracts are typically 
established, these costs will likely be incurred on a continuing basis 
and will be calculated based on the number of requests handled by the 
systems. Staff estimates that the total annual amount to be paid for 
services delivered under these contracts is $8,021,000.\9\
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    \9\ This consists of an estimated $3,569,000 for automated 
telephone cost ($1.49 per request x 2,395,260 requests), an 
estimated $2,603,000 ($0.15 per request x 17,355,240 requests) for 
internet web service cost, and an estimated $1,849,000 for printing 
and mailing costs ($1.48 per request x 1,249,500 requests). Per unit 
cost estimates are based on staff's knowledge of the industry.
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H. Net Burden for FTC, After 50:50 Split

    After halving the updated estimates to split the PRA burden with 
the CFPB regarding the Rule, the FTC's burden totals are 121,818 hours, 
$2,973,410 in associated labor costs, and $4,010,500 in capital/non-
labor costs.

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 14,

[[Page 9551]]

2025. Your comment, including your name and your state, will be placed 
on the public record of this proceeding, including the https://www.regulations.gov website.
    You can file a comment online or on paper. Due to heightened 
security screening, postal mail addressed to the Commission will be 
subject to delay. We encourage you to submit your comments online 
through the https://www.regulations.gov website.
    If you file your comment on paper, write ``Regulation V, subpart N; 
PRA Comment, P085405,'' 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.
    Because your comment will become publicly available at https://www.regulations.gov, 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 www.regulations.gov, 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 14, 
2025. For information on the Commission's privacy policy, including 
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2025-02571 Filed 2-12-25; 8:45 am]
BILLING CODE 6750-01-P
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