Federal Register, Volume 85 Issue 84 (Thursday, April 30, 2020)

[Federal Register Volume 85, Number 84 (Thursday, April 30, 2020)]
[Notices]
[Pages 23961-23964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09158]

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FEDERAL TRADE COMMISSION

Agency Information Collection Activities; Proposed Collection;
Comment Request

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 the Privacy of Consumer
Financial Information Rule (``Privacy Rule'' or ``Rule''). That
clearance expires on November 30, 2020.

DATES: Comments must be submitted by June 29, 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 ``Privacy Rule:
Paperwork Comment: FTC File No. 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, 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: David Lincicum, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580, (202)
326-2773.

SUPPLEMENTARY INFORMATION:
Title of Collection: Privacy of Consumer Financial Information
(Gramm-Leach-Bliley Act Privacy Rule), 16 CFR part 313.
OMB Control Number: 3084-0121.
Type of Review: Extension without change of currently approved
collection.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 1,345,950.
Estimated Annual Labor Costs: $30,363,151.
Abstract:
The Privacy Rule is designed to ensure that customers and
consumers, subject to certain exceptions, will have access to the
privacy policies of the covered financial institutions with which they
conduct business--namely, motor vehicle dealers that do not routinely
extend credit to consumers directly without assigning the credit to
unaffiliated third parties (hereafter, ``motor vehicle dealers''). As
mandated by the Gramm-Leach-Bliley Act (``GLBA''), 15 U.S.C. 6801-6809,
the Rule requires motor vehicle dealers to disclose to consumers: (1)
Initial notice of the financial institution's privacy policy when
establishing a customer relationship with a consumer and/or before
sharing a consumer's nonpublic personal information with certain
nonaffiliated third parties; (2) notice of the consumer's right to opt
out of information sharing with such parties; (3) annual notice of the
institution's privacy policy to any continuing customer; \1\ and (4)
notice of changes in

[[Page 23962]]

the institution's practices on information sharing. These requirements
are subject to the PRA. The Rule does not require recordkeeping. For
PRA burden calculations, the FTC shares the PRA burden with the CFPB
for financial institutions over which both agencies have enforcement
authority under the CFPB's regulation corresponding to the Privacy
Rule, titled Privacy of Consumer Financial Information (Regulation P),
12 CFR pt. 1016, and attributes to itself the burden for all motor
vehicle dealers. See 12 U.S.C. 5519.
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\1\ On December 4, 2015, Congress amended the GLBA as part of
the Fixing America's Surface Transportation Act (``FAST Act''). This
amendment, titled Eliminate Privacy Notice Confusion (FAST Act,
Public Law 114094, section 75001) added new GLBA section 503(f).
This subsection provides an exception under which financial
institutions that meet certain conditions are not required to
provide annual privacy notices to customers. Section 503(f) requires
that to qualify for this exception, a financial institution must not
share nonpublic personal information about customers except as
described in certain statutory exceptions, under which sharing does
not trigger a customer's statutory right to opt out of the sharing.
In addition, section 503(f)(2) requires that the financial
institution must not have changed its policies and practices with
regard to disclosing nonpublic personal information from those that
the institution disclosed in the most recent privacy notice the
customer received.
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Burden Estimates:
FTC staff estimates that approximately 29,500 non-motor vehicle
dealer financial institutions are subject to FTC jurisdiction under
Regulation P, consisting of approximately 29,000 established entities
and 500 new entrants annually during the renewal period. The complete
burden estimates for new entrants and established entities are detailed
in the charts below.

1. Established Financial Institutions

For established entities, staff believes that the model privacy
form and the Online Form Builder reduce the time associated with
providing required initial and annual notices. Businesses who have not
changed their privacy notice since the last notice sent and who do not
share information with non-affiliated third parties outside of certain
statutory exceptions are not required to issue annual notices to their
customers under GLBA section 503(f). FTC staff thus estimates that at
least 80% of businesses covered by Regulation P will not be required to
issue annual notices. Finally, staff estimates that no more than 1% of
the estimated 29,000 established-entity respondents would make
additional changes to privacy policies at any time other than the
occasion of the annual notice.

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Approx.
Hours per number of Approx. total Hourly wage and labor Approx. total
Activity respondent respondents annual hrs. FTC portion category \3\ labor costs
\2\
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Reviewing internal policies and developing 4 29,000 116,000 58,000 $38.55 Professional/ $2,235,900
GLB Act-implementing instructions \4\. Technical.
Disseminating initial notices to new 15 29,000 435,000 217,500 17.19 Clerical.............. 3,738,825
customers.
Disseminating annual disclosure to pre- 15 4,060 60,900 30,450 17.19 Clerical.............. 523,436
existing customers. 5 4,060 20,300 10,150 38.55 Professional/Technical 391,283
Updating privacy policies and related 7 290 2,030 1,015 17.19 Clerical.............. 17,448
disclosures. 3 290 870 435 7,478
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Totals:............................... .............. .............. 635,100 317,550 ............................ 6,914,370
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\2\ The estimate of respondents which are required to disseminate annual notices is based on the following assumptions: (1) 29,000 established
respondents, approximately 70% of whom maintain customer relationships exceeding one year; (2) no more than 20% (4,060) of whom have made changes to
their policies and share nonpublic information outside of the statutory exceptions, and therefore are required to provide annual notices under GLB Act
section 503(f); and (3) and no more than 1% (290) of whom make additional changes to privacy policies at any time other than the occasion of the
annual notice; and (4) such changes will occur no more often than once per year.
\3\ Staff calculated labor costs by applying appropriate hourly cost figures to burden hours. The hourly rates used were based on median wages for
Financial Examiners and for Office and Administrative Support, corresponding to professional/technical time (e.g., compliance evaluation and planning,
designing and producing notices, reviewing and updating information systems), and clerical time (e.g., reproduction tasks, filing, and, where
applicable to the given event, typing or mailing) respectively. See BLS Occupational Employment and Wages, May 2018, Table 1 at http://www.bls.gov/news.release/pdf/ocwage.pdf.
\4\ This includes all efforts performed by or for the respondent to: determine whether and to what extent the respondent is covered by an agency
collection of information, understand the nature of the request, and determine the appropriate response (including the creation and dissemination of
documents and/or electronic disclosures).

2. New Entrant Financial Institutions

New entrant financial institutions subject to FTC jurisdiction
under Regulation P must provide initial disclosure notices to their
consumers, including taking the time to develop implementing policies
and procedures and create disclosure documents to effectuate the
disclosure requirements. Staff's estimates of annual burden for
established entities is as follows:

[[Page 23963]]

Totals................................ .............. .............. 240,000 12,000 ............................ 377,161
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\5\ Staff calculated labor costs by applying appropriate hourly cost figures to burden hours, as described in footnote 3 above.

3. Established Motor Vehicle Dealers

FTC has sole authority over motor vehicle dealers subject to the
Rule. Staff estimates that approximately 44,000 auto dealers are
subject to the Rule's requirements, consisting of 42,000 established
dealers and 2,000 new entrants during the renewal period. FTC staff
provides the following burden estimates for established motor vehicle
dealers:

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Approx. number Hourly wage and
Activity Hours per of respondents Approx. total labor category Approx. total
respondent \6\ annual hrs. \7\ labor costs
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Reviewing internal policies 4 42,000 168,000 $38.55 $6,476,000
and developing GLB Act- Professional/
implementing instructions. Technical.
Disseminating initial notices 15 42,000 630,000 $17.19 Clerical. 10,829,700
to new customers.
Disseminating annual 15 5,880 88,200 $17.19 Clerical. 1,516,158$
disclosure. 5 5,880 29,400 $38.55 1,133,370
Professional/
Technical.
Updating privacy policies and 7 420 2,940 $17.19 Clerical. 50,539
related disclosures. 3 420 1,260 $38.55 48,573
Professional/
Technical.
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Totals:................... .............. .............. 920,400 ................ 20,054,340
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\6\ For this estimate, Commission staff relies on industry estimates based on census data and information from
the National Automobile Dealers Association and National Independent Automobile Dealers Association.
\7\ Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours described
above. See BLS Occupational Employment and Wages, May 2018, Table 1 at http://www.bls.gov/news.release/pdf/ocwage.pdf.

4. New Entrant Motor Vehicle Dealers

FTC staff provides the following burden estimates for established
new entrant motor vehicle dealers:

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Hours per Approx. number Approx. total Hourly wage and Approx. total
Activity respondent of respondents annual hrs. labor category labor costs
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Reviewing internal policies 20 2,000 40,000 $38.55 $1,542,000
and developing GLB Act- Professional/
implementing instructions. Technical.
Creating disclosure document 1 2,000 2,000 $17.19 Clerical. 34,380
or electronic disclosure 2 2,000 4,000 $38.55 154,200
(including initial, annual, Professional/
and opt-out disclosures). Technical.
Disseminating initial 15 2,000 30,000 $17.19 Clerical. 515,700
disclosure (including opt-out 10 2,000 20,000 $38.55 771,000
notices). Professional/
Technical.
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Totals:................... .............. .............. 96,000 ................ 3,017,280
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Estimated non-labor costs:
Staff believes that capital or other non-labor costs associated
with these information collection requirements are minimal. Staff
anticipates that covered entities are already equipped to provide
written notices (e.g., computers with word processing programs, copying
machines, mailing capabilities). In addition, staff anticipates that
entities that offer consumers the choice to receive notices via
electronic format will already have an online presence to support this
option. As such, these entities will already be equipped with the
computer equipment and software necessary to disseminate the required
disclosures via electronic means.
Under the PRA, 44 U.S.C. 3501-3521, 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 extend the existing clearance for the information collection
requirements contained in the Privacy Rule, 16 CFR part 313 (OMB
Control No. 3084-0121).

Request for Comment

Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) Whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
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,

[[Page 23964]]

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.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before June 29, 2020.
Write ``Privacy Rule: Paperwork Comment: FTC File No. P085405'' 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 https://www.regulations.gov 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
https://www.regulations.gov website.
If you file your comment on paper, write ``Privacy Rule: Paperwork
Comment: FTC File No. P085405'' 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 https://www.regulations.gov website--as legally
required by FTC Rule 4.9(b)--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 June 29, 2020.
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. 2020-09158 Filed 4-29-20; 8:45 am]
BILLING CODE 6750-01-P