[Federal Register Volume 74, Number 132 (Monday, July 13, 2009)]
[Notices]
[Pages 33442-33444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16518]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

AGENCY: Federal Trade Commission (FTC or Commission).

ACTION: Notice.

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SUMMARY: The FTC seeks public comments on proposed information requests 
to depository institutions lacking federal deposit insurance. The FTC 
plans to use this information to help ensure that such institutions are 
complying with the disclosure requirements of the Federal Deposit 
Insurance Corporation Improvement Act (FDICIA). The FTC will consider 
comments before it submits a request for Office of Management and 
Budget (OMB) review under the Paperwork Reduction Act (PRA).

DATES: Comments must be received on or before September 14, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``FDICIA 
Compliance Monitoring: Paperwork Comment; FTC File No. P094205'' 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 an 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 any ``[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 
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), 16 CFR 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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    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 by using the following weblink: (https://secure.commentworks.com/ftc-fdiciacompliance) (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://secure.commentworks.com/ftc-fdiciacompliance). 
If this Notice appears at (http://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. You may also visit the FTC Website at http://www.ftc.gov to read the Notice and the news release describing it.
    A comment filed in paper form should include the ``FDICIA 
Compliance Monitoring: Paperwork Comment; FTC File No. P094205'' 
reference both in the text and on the envelope, and should be mailed or 
delivered to the following address: Federal Trade Commission, Office of 
the Secretary, Room H-135 (Annex J), 600 Pennsylvania Avenue, NW, 
Washington, DC 20580. The FTC is requesting that any comment filed in 
paper form be sent by courier or overnight service, if possible, 
because U.S. postal mail in the Washington area and at the Commission 
is subject to delay due to heightened security precautions.
    The FTC Act and other laws 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 Commission makes 
every effort to remove home contact information for individuals from 
the public comments it receives before

[[Page 33443]]

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).

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, 202-326-
2889, Division of Enforcement, Bureau of Consumer Protection, Federal 
Trade Commission.

SUPPLEMENTARY INFORMATION: In 1991, Congress enacted section 43 of 
FDICIA (12 U.S.C. 1831t) in response to incidents affecting the safety 
of deposits in certain financial institutions.\2\ The law imposes 
several requirements on non-federally insured institutions. Among other 
things, the law (12 U.S.C. 1831t(b)) mandates that depository 
institutions lacking federal deposit insurance disclose to consumers, 
in periodic statements and advertising, that the institution does not 
have federal deposit insurance and that, if the institution fails, the 
federal government does not guarantee that depositors will get their 
money back. Pursuant to 12 U.S.C. 1831t(f), the Commission has 
authority to enforce the disclosure requirements under the FTC Act (15 
U.S.C. 41 et seq.).
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    \2\ See Pub. L. No. 102-242, 105 Stat. 2236.
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    Until 2003, the Commission's appropriations authority prohibited 
the use of FTC resources to enforce those requirements.\3\ In 2005, the 
Commission sought public comment on proposed rules implementing the 
statutory disclosure requirements.\4\ In 2006, before the Commission 
issued a final rule, Congress passed substantial amendments to the 
existing requirements as part of the Financial Services Regulatory 
Relief Act of 2006 (FSRRA) (Pub. L. 109-351). The Commission, 
therefore, is currently seeking comment on proposed regulations that 
are consistent with the FSRRA amendments.\5\ Nevertheless, institutions 
lacking federal deposit insurance must comply with these statutory 
disclosure provisions regardless of the status of the FTC's regulations 
in this area.
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    \3\ Making Appropriations for Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies, for the Fiscal 
Year Ending September 30, 2004, and for Other Purposes, H.R. Conf. 
Rep. No. 108-401, 108th Cong., 1st Sess., at 88 (2003).
    \4\ See 70 FR 12823 (Mar. 16, 2005).
    \5\ See 74 FR 18043 (Mar. 13, 2009).
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    Under existing law, all federally chartered and most state 
chartered depository institutions have federal deposit insurance. 
Federal deposit insurance provides a government guarantee of up to 
$250,000 per depositor in most cases. Pursuant to Federal Deposit 
Insurance Corporation and National Credit Union Administration 
requirements, federally insured banks and credit unions must display 
signs that depositors are federally insured.\6\ Although most 
depository institutions have federal deposit insurance, there are some 
exceptions. For instance, there are more than a hundred and fifty 
state-chartered credit unions in nine states that do not have federal 
deposit insurance.\7\ The credit unions in these states generally 
obtain private deposit insurance in lieu of federal insurance to 
protect members' accounts.
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    \6\ See 12 CFR Parts 328 and 740.
    \7\ According to the U.S. Government Accountability Office, in 
2003, eight states had credit unions that purchase private deposit 
insurance instead of federal insurance. Since that time, at least 
one additional state has allowed credit unions to use private 
deposit insurance. Other states either require federal insurance or 
allow private insurance but do not have any privately insured credit 
unions. ``Federal Deposit Insurance Act: FTC Best Among Candidates 
to Enforce Consumer Protection Provisions,'' GAO-03-971 (Aug. 2003), 
at 7. Puerto Rican credit unions operate under a Puerto Rican 
government-backed deposit insurance system.
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Proposed Information Collection Activities

    The FTC has the authority to compel production of data and 
information from depository institutions lacking federal deposit 
insurance under Section 6(b) of the FTC Act, 15 U.S.C. 46(b). The 
Commission intends to send information requests to depository 
institutions that lack federal deposit insurance. The responses will 
help the Commission determine whether covered entities are complying 
with the disclosures required by 12 U.S.C. 1831t(b). Because the number 
of entities affected by the Commission's requests will exceed nine, the 
Commission plans to seek OMB clearance under the PRA, 44 U.S.C. Ch. 35.
    Under the PRA, federal agencies must obtain approval from OMB for 
each collection of information they conduct or sponsor. ``Collection of 
information'' means agency requests or requirements that members of the 
public submit reports, keep records, or provide information to a third 
party. 44 U.S.C. 3502(3), 5 CFR 1320.3(c). As required by section 
3506(c)(2)(A) of the PRA, the FTC is providing this opportunity for 
public comment before requesting that OMB grant the clearance for the 
proposed information collection.
    The FTC invites comments on: (1) whether the proposed collections 
of information are necessary for the proper performance of the 
functions of the FTC, including whether the information will have 
practical utility; (2) the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used; (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 on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology (e.g., permitting 
electronic submission of responses). All comments should be filed as 
prescribed in the ADDRESSES section above, and must be received on or 
before September 14, 2009.

A. Description of the Collection of Information and Proposed Use

    The FTC proposes to send information requests to up to two hundred 
(200) depository institutions lacking federal deposit insurance in the 
United States (``industry members''). State-chartered credit unions 
lacking federal deposit insurance will likely be the recipients.\8\
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    \8\ The FTC does not plan to send requests to institutions 
covered by the Puerto Rican government deposit insurance system.
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    The information requests\9\ will seek, among other things:
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    \9\ Section 6(f) of the FTC Act, 15 U.S.C. 46(f), bars the 
Commission from publicly disclosing trade secrets or confidential 
commercial or financial information it receives from persons 
pursuant to, among other methods, special orders authorized by 
Section 6(b) of the FTC Act. Such information also would be exempt 
from disclosure under the Freedom of Information Act. 5 U.S.C. 
552(b)(4). Moreover, under Section 21(c) of the FTC Act, 15 U.S.C. 
57b-2(c), a submitter who designates a submission as confidential is 
entitled to 10 days' advance notice of any anticipated public 
disclosure by the Commission, assuming that the Commission has 
determined that the information does not, in fact, constitute 6(f) 
material. Although materials covered under one or more of these 
various sections are protected by stringent confidentiality 
constraints, the FTC Act and the Commission's rules authorize 
disclosure in limited circumstances (e.g., official requests by 
Congress, requests from other agencies for law enforcement purposes, 
and administrative or judicial proceedings). Even in those limited 
contexts, however, the Commission's rules may afford protections to 
the submitter, such as advance notice to seek a protective order in 
litigation. See 15 U.S.C. 57b-2; 16 CFR 4.9-4.11.
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    <bullet> A brief explanation of the steps the institution takes to 
comply with the requirements of 12 U.S.C. 1831t(b).
    <bullet> Samples of each non-identical periodic statement of 
account, signature card, passbook, certificate of deposit, and share 
certificate that must contain the notice required by 12 U.S.C. 
1831t(b)(1). None of the samples should include any individual consumer

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names, signatures, addresses, account numbers, or any other personally 
identifying information.
    <bullet> Information (e.g. photographs) that demonstrates that the 
institution posts the disclosure required by 12 U.S.C. 1831t(b)(2) at 
each station or window where it normally receives deposits, the 
institution's principal place of business, and all the institution's 
branches where it accepts deposits or opens accounts (excluding 
automated teller machines and point of sale terminals).
    <bullet> Copies of all non-identical advertising\10\ issued or 
continued in use within the previous three months.
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    \10\ As used in these requests, the term ``advertising'' means 
any communication that the institution uses to solicit business 
including, but not limited to, printed materials, the institution's 
main internet page, radio advertisements, video advertisements 
disseminated via television, the Internet or any other means of 
online communication, and solicitations conducted via telephone.
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    <bullet> Samples of the cards, forms, or other written materials 
the institution uses to comply with the signed acknowledgment 
requirements for new depositors pursuant to 12 U.S.C. 1831t(b)(3). The 
samples should not include any individual consumer names, signatures, 
addresses, account numbers, or any other personally identifying 
information.\11\
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    \11\ The requested documents should exclude any information for 
which prior customer authorization is required under the Right to 
Financial Privacy Act, 12 U.S.C. 3401, et seq.
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    The Commission will use the collected information in its efforts to 
ensure that the institutions are complying with the disclosures 
required by the 12 U.S.C. 1831t(b).\12\
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    \12\ Although the Commission is currently in the process of 
developing regulations for these requirements, see 74 FR 18043 (Mar. 
13, 2009), institutions lacking federal deposit insurance must 
comply with these statutory provisions regardless of the status of 
FTC's regulations in this area.
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B. Estimated Hours Burden

    Based upon its knowledge of the industry, the staff estimates, on 
average, that the time required to gather, organize, format, and 
produce such responses will average 8 hours per information request. 
Thus, allowing up to 200 recipients of the information requests, total 
burden would be approximately 1,600 hours.

C. Estimated Cost Burden

    It is difficult to calculate with precision the labor costs 
associated with this data production, as they entail varying 
compensation levels of management and/or support staff among companies 
of different sizes. Managerial, legal, and clerical personnel may be 
involved in the information collection process. The FTC staff has 
assumed, conservatively, that managerial personnel and legal counsel 
will handle all of the tasks involved in gathering and producing 
responsive information, and has applied an average hourly wage of 
managerial time of $58.12/hour (4 hours per entity) and an average 
hourly wage of legal staff time of $40.87/hour (4 hours per 
entity).\13\ Thus, cumulatively, estimated labor costs for the 
information requests will be $79,192 (($58.12 x 800 hours + $40.87 x 
800 hours)). The actual cost may be lower to the extent clerical 
personnel handle some of the tasks.
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    \13\ Hourly wages are averages based on mean hourly wages shown 
in http://www.bls.gov/oes/2008/may/naics4_551100.htm#b11-0000 (May 
2008 ``National Industry-Specific Occupational Employment and Wage 
Estimates'') for sales and marketing managers and legal occupations 
(lawyers, paralegals, and other legal support), respectively.
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    FTC staff estimates that the capital or other non-labor costs 
associated with the information requests are minimal. We expect that 
industry members maintain most, if not all, of the requested material 
in the normal course of business because they must disclose the 
information to customers under existing law.
    By direction of the Commission.

Donald S. Clark
Secretary
[FR Doc. E9-16518 Filed 7-10-09: 8:45 am]
BILLING CODE: 6750 -01-S