[Federal Register Volume 75, Number 184 (Thursday, September 23, 2010)]
[Notices]
[Pages 57953-57954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23761]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities;Submission for OMB 
Review; Comment Request

AGENCY: Federal Trade Commission (``FTC'' or ``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 its proposal to extend through December 31, 
2013 the current OMB clearance for information collection requirements 
contained in its Prescreen Opt-Out Disclosure Rule. That clearance 
expires on December 31, 2010.

DATES: Comments must be filed by October 25, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form by following the instructions in the 
Request for Comments part of the SUPPLEMENTARY INFORMATION section 
below. Comments in electronic form should be submitted by using the 
following weblink: (https://public.commentworks.com/ftc/prescreenoptoutPRA2) (and following the instructions on the web-based 
form). Comments filed in paper form should be mailed or delivered to 
the following address: Federal Trade Commission, Office of the 
Secretary, Room H-135 (Annex J), 600 Pennsylvania Avenue, N.W., 
Washington, DC 20580, in the manner detailed in the SUPPLEMENTARY 
INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Katherine Armstrong, Attorney, Division of 
Privacy and Identity Protction, Bureau of Consumer Protection, Federal 
Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, DC 20580, 
(202) 326-3250.

SUPPLEMENTARY INFORMATION:

Request for Comments

    On June 29, 2010, the FTC sought comment on the information 
collection requirements associated with the Prescreen Opt-Out 
Disclosure Rule, 16 CFR Part 642 (Control Number: 3084-0132). 75 FR 
37436. No comments were received. Pursuant to the OMB regulations, 5 
CFR Part 1320, that implement the PRA, 44 U.S.C. 3501-3521, the FTC is 
providing this second opportunity for public comment while seeking OMB 
approval to extend the existing paperwork clearance for the Rule. All 
comments should be filed as prescribed herein, and must be received on 
or before October 25, 2010.
    All comments should additionally be sent to OMB. Comments may be 
submitted by U.S. Postal Mail to: Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
Federal Trade Commission, New Executive Office Building, Docket 
Library, Room 10102, 725 17th Street, N.W., Washington, D.C. 20503. 
Comments, however, should be submitted via facsimile to (202) 395-5167 
because U.S. Postal Mail is subject to lengthy delays due to heightened 
security precautions.
    Comments should refer to ``Prescreen Opt-Out Disclosure Rule: FTC 
File No. P075417'' to facilitate the organization of comments. Please 
note that your comment - including your name and your state - will be 
placed on the public record of this proceeding, including on the 
publicly accessible FTC website, at (http://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as any individual'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. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include ``[t]rade secret or any 
commercial or financial information which is obtained from any person 
and which is privileged or confidential'' as provided in Section 6(f) 
of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and 
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter 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).\1\
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    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).

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[[Page 57954]]

    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted using the following weblink (https://public.commentworks.com/ftc/prescreenoptoutPRA2) (and following the instructions on the web-
based form). To ensure that the Commission considers an electronic 
comment, you must file it on the web-based form at the weblink (https://public.commentworks.com/ftc/prescreenoptoutPRA2).
    If this Notice appears at (www.regulations.gov/search/index.jsp), 
you may also file an electronic comment through that website. The 
Commission will consider all comments that regulations.gov forwards to 
it.
    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, whether filed in paper or 
electronic form. Comments received will be available to the public on 
the FTC website, to the extent practicable, at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of discretion, the FTC makes every 
effort to remove home contact information for individuals from the 
public comments it receives before placing those comments on the FTC 
website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

Background

    Section 615(d) of the Fair Credit Reporting Act (``FCRA''), 15 
U.S.C. 1681m(d)(1), requires that any person who uses a consumer report 
in order to make an unsolicited firm offer of credit or insurance to 
the consumer, shall provide with each written solicitation a clear and 
conspicuous statement that:
 (A) information contained in the consumer's consumer report was used 
in connection with the transaction; (B) the consumer received the offer 
of credit or insurance because the consumer satisfied the criteria for 
credit worthiness or insurability under which the consumer was selected 
for the offer; (C) if applicable, the credit or insurance may not be 
extended if, after the consumer responds to the offer, the consumer 
does not meet the criteria used to select the consumer for the offer or 
any applicable criteria bearing on credit worthiness or insurability or 
does not furnish any required collateral; (D) the consumer has a right 
to prohibit information contained in the consumer's file with any 
consumer reporting agency from being used in connection with any credit 
or insurance transaction that is not initiated by the consumer; and (E) 
the consumer may exercise the right referred to in subparagraph (D) by 
notifying a notification system established under section 604(e) [of 
the FCRA].
Section 615(d)(1) of the FCRA [15 U.S.C. 1681m(d)(1)].
    The Fair and Accurate Credit Transactions Act of 2003, Pub. L. 108-
159, 117 Stat. 1952 (``FACT Act'') was signed into law on December 4, 
2003. Section 213(a) of the FACT Act amended FCRA Section 615(d) to 
require that the statement mandated by Section 615(d) ``be presented in 
such format and in such type size and manner as to be simple and easy 
to understand, as established by the Commission, by rule, in 
consultation with the Federal banking agencies and the National Credit 
Union Administration.'' The Commission published the Final Rule in the 
Federal Register on January 31, 2005 and the Rule became effective 
August 1, 2005.
    The Rule adopted a ``layered'' notice approach that requires a 
short, simple, and easy-to-understand statement of consumers' opt-out 
rights on the first page of the prescreened solicitation, along with a 
longer statement containing additional details elsewhere in the 
solicitation. Specifically, the Rule required that a short notice be 
placed on the front side of the first page of the principal promotional 
document in the solicitation, or, if provided electronically, on the 
same page and in close proximity to the principal marketing message. 
The Rule specifies that the type size be larger than the type size of 
the principal text on the same page, but in no event smaller than 12-
point type, or if provided by electronic means, then reasonable steps 
shall be taken to ensure that the type size is larger than the type 
size of the principal text on the same page. The Rule further provides 
that the long notice, that appears elsewhere in the solicitation, be in 
a type size that is no smaller than the type size of the principal text 
on the same page, but in no event smaller than 8-point type. The long 
notice shall begin with a heading in capital letters and underlined, 
and identifying the long notice as the ``PRESCREEN & OPT-OUT NOTICE'' 
in a type style that is distinct from the principal type style used on 
the same page and be set apart from other text on the page. The Rule 
also includes model notices in English and Spanish.

Burden statement

    Estimated total annual hours burden: 1,000 to 1,500 hours
    As in the 2007 PRA burden analysis when the Commission last sought 
renewed clearance,\2\ FTC staff estimates that between 500 and 750 
entities make prescreened solicitations and will each spend 
approximately 2 hours to monitor compliance with the Rule. Accordingly, 
cumulative total annual burden is between 1,000 to 1,500 hours. 
Additionally, FTC staff assumes that in-house legal counsel will handle 
most of the compliance review, and at an estimated average hourly wage 
of $250/hour. Accordingly, cumulative labor cost for all affected 
entities would be between $250,000 and $375,000. Capital and other non-
labor costs should be minimal, at most, since the Rule has been in 
effect several years, with covered entities now equipped to provide the 
required notice.
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    \2\ 72 FR 60672 (Oct. 25, 2007); 72 FR 42092 (Aug. 1, 2007). No 
comments were received in response to those notices.

Christian S. White
Acting General Counsel.
[FR Doc. 2010-23761 Filed 9-22-10; 8:45 am]
BILLING CODE 6750-01-S