81_FR_63614 81 FR 63435 - Disposal of Consumer Report Information and Records

81 FR 63435 - Disposal of Consumer Report Information and Records

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 179 (September 15, 2016)

Page Range63435-63437
FR Document2016-22198

The Federal Trade Commission (``FTC'' or ``The Commission) requests public comment on its rule regarding Disposal of Consumer Report Information and Records (``Disposal Rule'' or ``Rule''). The Commission is soliciting comment as part of the FTC's systematic review of all current Commission regulations and guides.

Federal Register, Volume 81 Issue 179 (Thursday, September 15, 2016)
[Federal Register Volume 81, Number 179 (Thursday, September 15, 2016)]
[Proposed Rules]
[Pages 63435-63437]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22198]


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FEDERAL TRADE COMMISSION

16 CFR Part 682

RIN 3084-AB41


Disposal of Consumer Report Information and Records

AGENCY: Federal Trade Commission.

ACTION: Request for public comment.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``FTC'' or ``The Commission) 
requests public comment on its rule regarding Disposal of Consumer 
Report Information and Records (``Disposal Rule'' or ``Rule''). The 
Commission is soliciting comment as part of the FTC's systematic review 
of all current Commission regulations and guides.

DATES: Comments must be received on or before November 21, 2016.

ADDRESSES: Interested parties may file a comment online or on paper by 
following the Instructions for Submitting Comments part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Disposal Rule, 16 CFR 
part 682, Project No. 165410'' on your comment and file your comment 
online at https://ftcpublic.commentworks.com/ftc/disposalrule by 
following the instructions on the web-based form. If you prefer to file 
your comment on paper, write ``Disposal Rule, 16 CFR part 682, Project 
No. 165410'' 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 H), 
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 H), Washington, DC 
20024.

FOR FURTHER INFORMATION CONTACT: Tiffany George, Division of Privacy 
and Identity Protection, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580, (202) 
326-3040.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Fair and Accurate Credit Transactions Act (``FACTA'' or 
``Act'')

[[Page 63436]]

was enacted in 2003. In part, the Act amends the Fair Credit Reporting 
Act (``FCRA'') by imposing a requirement that any person that maintains 
or otherwise possesses consumer information, or any compilation of 
consumer information, derived from consumer reports for a business 
purpose, properly dispose of any such information or compilation.\1\ 
The Act also required the Commission and other federal agencies to 
promulgate rules regarding this requirement.\2\ Further, the Act 
directed the Commission and other federal agencies to ensure that the 
rules were consistent with the requirements of the Gramm-Leach-Bliley 
Act (``GLBA'').\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 1681w.
    \2\ The other agencies are the Securities and Exchange 
Commission, the Commodity Futures Trading Commission, the Federal 
banking agencies, and the National Credit Union Administration. Id.
    \3\ Id. The other agencies have incorporated the Disposal Rule 
requirements into their Safeguards rules and guidelines. See 12 CFR 
part 30, app. B (Office of the Comptroller of the Currency); 12 CFR 
part 208, app. D-2 and 12 CFR part 225, app. F (Board of Governors 
of the Federal Reserve System); 12 CFR part 364, app. B (Federal 
Deposit Insurance Corporation); 12 CFR part 748, app. A (National 
Credit Union Administration); 17 CFR 248.30 (Securities and Exchange 
Commission).
---------------------------------------------------------------------------

    Pursuant to the Act's directive, the Commission promulgated the 
Disposal Rule in 2004. The Disposal Rule provides that, unless 
otherwise stated, terms used in the Rule have the same meaning as set 
forth in the FCRA.\4\ The Rule defines ``consumer information'' as any 
record about an individual, whether in paper, electronic, or other 
form, that is a consumer report or is derived from a consumer report. 
Consumer information also means a compilation of such records. Consumer 
information does not include information that does not identify 
individuals, such as aggregate information or blind data.\5\ In 
addition, ``dispose,'' ``disposing,'' or ``disposal'' is defined as (1) 
The discarding or abandonment of consumer information, or (2) The sale, 
donation, or transfer of any medium, including computer equipment, upon 
which consumer information is stored.\6\
---------------------------------------------------------------------------

    \4\ 16 CFR 682.1(a).
    \5\ 16 CFR 682.1(b).
    \6\ 16 CFR 682.1(c).
---------------------------------------------------------------------------

    The Disposal Rule requires that persons over which the FTC has 
jurisdiction who maintain or otherwise possess consumer information for 
a business purpose properly dispose of such information by taking 
reasonable measures to protect against unauthorized access to or use of 
the information in connection with its disposal.\7\ It also includes 
several examples of what the Commission believes constitute reasonable 
measures to protect consumer information in connection with its 
disposal.\8\ These examples are intended to provide covered entities 
with guidance on how to comply with the Rule but are not intended to be 
safe harbors or exclusive methods for compliance.\9\ The Rule uses a 
flexible ``reasonable measures'' standard. The FTC realizes that there 
are few foolproof methods of record destruction and that entities 
covered by the Rule must consider their own unique circumstances when 
determining how to comply with the Rule.
---------------------------------------------------------------------------

    \7\ 16 CFR 682.2(b), 682.3(a).
    \8\ 16 CFR 682.3(b).
    \9\ Id.
---------------------------------------------------------------------------

    The Disposal Rule became effective on June 1, 2005.

II. Regulatory Review of the Disposal Rule

    The Commission periodically reviews all of its rules and guides. 
These reviews seek information about the costs and benefits of the 
agency's rules and guides, and their regulatory and economic impact. 
The information obtained assists the Commission in identifying those 
rules and guides that warrant modification or rescission. Therefore, 
the Commission solicits comments on, among other things, the economic 
impact and benefits of the Rule; possible conflict between the Rule and 
state, local, or other federal laws or regulations; and the effect on 
the Rule of any technological, economic, or other industry changes.

III. Issues for Comment

    The Commission requests written comment on any or all of the 
following questions. These questions are designed to assist the public 
and should not be construed as a limitation on the issues about which 
public comments may be submitted. The Commission requests that 
responses to its questions be as specific as possible, including a 
reference to the question being answered, and refer to empirical data 
or other evidence upon which the comment is based whenever available 
and appropriate.

A. General Issues

    1. Is there a continuing need for specific provisions of the Rule? 
Why or why not?
    2. What benefits has the Rule provided to consumers? What evidence 
supports the asserted benefits?
    3. What modifications, if any, should be made to the Rule to 
increase its benefits to consumers?
    a. What evidence supports the proposed modifications?
    b. How would these modifications affect the costs the Rule imposes 
on businesses, including small businesses?
    4. What significant costs, if any, has the Rule imposed on 
consumers? What evidence supports the asserted costs?
    5. What modifications, if any, should be made to the Rule to reduce 
any costs imposed on consumers?
    a. What evidence supports the proposed modifications?
    b. How would these modifications affect the benefits provided by 
the Rule?
    6. What benefits, if any, has the Rule provided to businesses, 
including small businesses? What evidence supports the asserted 
benefits?
    7. What modifications, if any, should be made to the Rule to 
increase its benefits to businesses, including small businesses?
    a. What evidence supports the proposed modifications?
    b. How would these modifications affect the costs the Rule imposes 
on businesses, including small businesses?
    c. How would these modifications affect the benefits to consumers?
    8. What significant costs, if any, including costs of compliance, 
has the Rule imposed on businesses, including small businesses? What 
evidence supports the asserted costs?
    9. What modifications, if any, should be made to the Rule to reduce 
the costs imposed on businesses, including small businesses?
    a. What evidence supports the proposed modifications?
    b. How would these modifications affect the benefits provided by 
the Rule?
    10. What evidence is available concerning the degree of industry 
compliance with the Rule?
    11. What modifications, if any, should be made to the Rule to 
account for changes in relevant technology or economic conditions? What 
evidence supports the proposed modifications?
    12. Does the Rule overlap or conflict with other federal, state, or 
local laws or regulations? If so, how?
    a. What evidence supports the asserted conflicts?
    b. With reference to the asserted conflicts, should the Rule be 
modified? If so, why, and how? If not, why not?

B. Specific Issues

    1. Should the Rule be modified to include more specific and 
prescriptive requirements for disposing of consumer information? Why or 
why not? If so, what requirements should be included and what sources 
should they be drawn from?
    a. What evidence supports such a modification?

[[Page 63437]]

    b. How would this modification affect the costs the Rule imposes on 
businesses, including small businesses?
    c. How would this modification affect the benefits to consumers?
    2. Should the Rule be modified to delete any of the existing 
examples or include additional examples to illustrate proper methods 
for disposing of consumer information? Why or why not? If so, what 
examples should be included and what sources should they be drawn from?
    a. What evidence supports such a modification?
    b. How would this modification affect the costs the Rule imposes on 
businesses, including small businesses?
    c. How would this modification affect the benefits to consumers?
    3. Should the Rule be modified to reference or incorporate any 
other information destruction standards or frameworks? If so, which 
standards should be incorporated or referenced and how should they be 
referenced or incorporated by the Rule? Should such standards be 
considered safe harbors for compliance with the Rule?
    a. What evidence supports such a modification?
    b. How would this modification affect the costs the Rule imposes on 
businesses, including small businesses?
    c. How would this modification affect the benefits to consumers?
    4. Under the current Disposal Rule, ``Consumer information does not 
include information that does not identify individuals, such as 
aggregate information or blind data.'' Should the Rule be modified to 
change the definition of ``consumer information''? Should the 
definition of ``consumer information'' include information that can be 
reasonably linked to an individual in light of changes in relevant 
technology or market practices? Should the Rule be modified to define 
``aggregate information'' or ``blind data''?
    a. What evidence supports such a modification?
    b. How would this modification affect the costs the Rule imposes on 
businesses, including small businesses?
    c. How would this modification affect the benefits to consumers?

IV. Instructions for Submitting Comments

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before November 21, 
2016. Write ``Disposal Rule, 16 CFR part 682, Project No. 165410'' on 
the comment. Your comment, including your name and your state, will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at https://www.ftc.gov/policy/public-comments. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site. Because your 
comment will be made public, you are solely responsible for making sure 
that your comment does not include any sensitive personal information, 
such as a 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 payment 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, do not include any ``[t]rade secret or any commercial 
or financial information which is . . . privileged or confidential,'' 
as discussed in 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). In particular, do not include 
competitively sensitive information such as costs, sales statistics, 
inventories, formulas, patterns, devices, manufacturing processes, or 
customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you must follow the procedure explained in 
FTC Rule 4.9(c), 16 CFR 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 comments to be withheld from the public record. Your 
comment will be kept confidential only if the FTC General Counsel 
grants your request in accordance with the law and the public interest.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comment online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/disposalrule by following the instructions on the web-based form. 
If this document appears at http://wwww.regulations.gov, you also may 
file a comment through that Web site.
    If you file your comment on paper, write ``Disposal Rule, 16 CFR 
part 682, Project No. 165410'' 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 H), 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 
H), Washington, DC 20024.
    Visit the Commission Web site at https://www.ftc.gov to read this 
document and the news release describing 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 on or before November 21, 2016. 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.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-22198 Filed 9-14-16; 8:45 am]
 BILLING CODE 6750-01-P



                                                                    Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Proposed Rules                                                63435

                                                 List of Subjects in 14 CFR Part 39                      (h) Alternative Methods of Compliance                   Issued in Renton, Washington, on
                                                                                                         (AMOCs)                                               September 6, 2016.
                                                   Air transportation, Aircraft, Aviation
                                                                                                            (1) The Manager, Seattle Aircraft                  Michael Kaszycki,
                                                 safety, Incorporation by reference,
                                                                                                         Certification Office (ACO), FAA, has the              Acting Manager, Transport Airplane
                                                 Safety.
                                                                                                         authority to approve AMOCs for this AD, if            Directorate, Aircraft Certification Service.
                                                 The Proposed Amendment                                  requested using the procedures found in 14            [FR Doc. 2016–22101 Filed 9–14–16; 8:45 am]
                                                                                                         CFR 39.19. In accordance with 14 CFR 39.19,
                                                   Accordingly, under the authority                      send your request to your principal inspector
                                                                                                                                                               BILLING CODE 4910–13–P
                                                 delegated to me by the Administrator,                   or local Flight Standards District Office, as
                                                 the FAA proposes to amend 14 CFR part                   appropriate. If sending information directly
                                                 39 as follows:                                          to the manager of the ACO, send it to the             FEDERAL TRADE COMMISSION
                                                                                                         attention of the person identified in
                                                 PART 39—AIRWORTHINESS                                   paragraph (i)(1) of this AD. Information may          16 CFR Part 682
                                                 DIRECTIVES                                              be emailed to: 9-ANM-Seattle-ACO-AMOC-
                                                                                                                                                               RIN 3084–AB41
                                                                                                         Requests@faa.gov.
                                                 ■ 1. The authority citation for part 39                    (2) Before using any approved AMOC,
                                                 continues to read as follows:                                                                                 Disposal of Consumer Report
                                                                                                         notify your appropriate principal inspector,
                                                                                                         or lacking a principal inspector, the manager
                                                                                                                                                               Information and Records
                                                     Authority: 49 U.S.C. 106(g), 40113, 44701.
                                                                                                         of the local flight standards district office/        AGENCY:    Federal Trade Commission.
                                                 § 39.13   [Amended]                                     certificate holding district office.
                                                                                                            (3) An AMOC that provides an acceptable
                                                                                                                                                               ACTION:   Request for public comment.
                                                 ■ 2. The FAA amends § 39.13 by adding
                                                 the following new airworthiness                         level of safety may be used for any repair,           SUMMARY:    The Federal Trade
                                                                                                         modification, or alteration required by this
                                                 directive (AD):                                                                                               Commission (‘‘FTC’’ or ‘‘The
                                                                                                         AD if it is approved by the Boeing
                                                 The Boeing Company: Docket No. FAA–                     Commercial Airplanes Organization                     Commission) requests public comment
                                                     2016–9075; Directorate Identifier 2016–             Designation Authorization (ODA) that has              on its rule regarding Disposal of
                                                     NM–082–AD.                                          been authorized by the Manager, Seattle               Consumer Report Information and
                                                 (a) Comments Due Date                                   ACO, to make those findings. To be                    Records (‘‘Disposal Rule’’ or ‘‘Rule’’).
                                                   We must receive comments by October 31,               approved, the repair method, modification             The Commission is soliciting comment
                                                 2016.                                                   deviation, or alteration deviation must meet          as part of the FTC’s systematic review
                                                                                                         the certification basis of the airplane, and the      of all current Commission regulations
                                                 (b) Affected ADs                                        approval must specifically refer to this AD.          and guides.
                                                   None.                                                    (4) For service information that contains
                                                                                                                                                               DATES: Comments must be received on
                                                                                                         steps that are labeled as Required for
                                                 (c) Applicability                                       Compliance (RC), the provisions of                    or before November 21, 2016.
                                                    This AD applies to The Boeing Company                paragraphs (h)(4)(i) and (h)(4)(ii) of this AD        ADDRESSES: Interested parties may file a
                                                 Model 787–8 and 787–9 airplanes,                        apply.                                                comment online or on paper by
                                                 certificated in any category, as identified in             (i) The steps labeled as RC, including             following the Instructions for
                                                 Boeing Alert Service Bulletin B787–81205–               substeps under an RC step and any figures             Submitting Comments part of the
                                                 SB570029–00, Issue 001, dated February 23,              identified in an RC step, must be done to             SUPPLEMENTARY INFORMATION section
                                                 2016.                                                   comply with the AD. If a step or sub-step is
                                                                                                                                                               below. Write ‘‘Disposal Rule, 16 CFR
                                                 (d) Subject                                             labeled ‘‘RC Exempt,’’ then the RC
                                                                                                         requirement is removed from that step or              part 682, Project No. 165410’’ on your
                                                   Air Transport Association (ATA) of                    sub-step. An AMOC is required for any                 comment and file your comment online
                                                 America Code 57; Wings.                                 deviations to RC steps, including substeps            at https://ftcpublic.commentworks.com/
                                                 (e) Unsafe Condition                                    and identified figures.                               ftc/disposalrule by following the
                                                                                                            (ii) Steps not labeled as RC may be                instructions on the web-based form. If
                                                    This AD was prompted by a report
                                                 indicating that a portion of the sealant above
                                                                                                         deviated from using accepted methods in               you prefer to file your comment on
                                                 the engine pylon between the wing skin and              accordance with the operator’s maintenance            paper, write ‘‘Disposal Rule, 16 CFR
                                                 the vapor barrier may have been omitted. We             or inspection program without obtaining               part 682, Project No. 165410’’ on your
                                                 are issuing this AD to detect and correct               approval of an AMOC, provided the RC steps,           comment and on the envelope and mail
                                                 missing sealant above the engine pylon                  including substeps and identified figures, can
                                                                                                                                                               your comment to the following address:
                                                 between the wing skin and the vapor barrier,            still be done as specified, and the airplane
                                                                                                         can be put back in an airworthy condition.            Federal Trade Commission, Office of the
                                                 which can create an unintended leak path for                                                                  Secretary, 600 Pennsylvania Avenue
                                                 fuel, potentially draining onto the aft fairing         (i) Related Information                               NW., Suite CC–5610 (Annex H),
                                                 heat shield and onto hot engine parts or
                                                 brakes, which could lead to a major ground                 (1) For more information about this AD,            Washington, DC 20580, or deliver your
                                                 fire.                                                   contact Sherry Vevea, Aerospace Engineer,             comment to the following address:
                                                                                                         Propulsion Branch, ANM–140S, FAA, Seattle             Federal Trade Commission, Office of the
                                                 (f) Compliance                                          Aircraft Certification Office (ACO), 1601 Lind        Secretary, Constitution Center, 400 7th
                                                    Comply with this AD within the                       Avenue SW., Renton, WA 98057–3356;
                                                                                                                                                               Street SW., 5th Floor, Suite 5610
                                                 compliance times specified, unless already              phone: 425 917 6514; fax: 425 917 6590;
                                                                                                         email: sherry.vevea@faa.gov.                          (Annex H), Washington, DC 20024.
                                                 done.
                                                                                                            (2) For service information identified in          FOR FURTHER INFORMATION CONTACT:
                                                 (g) Inspection and Corrective Actions                   this AD, contact Boeing Commercial                    Tiffany George, Division of Privacy and
                                                    Within 60 months after the effective date            Airplanes, Attention: Data & Services                 Identity Protection, Bureau of Consumer
rmajette on DSK2TPTVN1PROD with PROPOSALS




                                                 of this AD: Do a general visual inspection for          Management, P. O. Box 3707, MC 2H–65,                 Protection, Federal Trade Commission,
                                                 missing sealant in the seam on the outside              Seattle, WA 98124–2207; telephone 206–                600 Pennsylvania Avenue NW.,
                                                 and inside of the engine struts; and do all             544–5000, extension 1; fax 206–766–5680;              Washington, DC 20580, (202) 326–3040.
                                                 applicable corrective actions; in accordance            Internet https://www.myboeingfleet.com. You
                                                 with the Accomplishment Instructions of                 may view this referenced service information          SUPPLEMENTARY INFORMATION:
                                                 Boeing Alert Service Bulletin B787–81205–               at the FAA, Transport Airplane Directorate,           I. Background
                                                 SB570029–00, Issue 001, dated February 23,              1601 Lind Avenue SW., Renton, WA. For
                                                 2016. Do all applicable corrective actions              information on the availability of this                 The Fair and Accurate Credit
                                                 before further flight.                                  material at the FAA, call 425–227–1221.               Transactions Act (‘‘FACTA’’ or ‘‘Act’’)


                                            VerDate Sep<11>2014   14:41 Sep 14, 2016   Jkt 238001   PO 00000   Frm 00008   Fmt 4702   Sfmt 4702   E:\FR\FM\15SEP1.SGM   15SEP1


                                                 63436              Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Proposed Rules

                                                 was enacted in 2003. In part, the Act                   believes constitute reasonable measures                    a. What evidence supports the
                                                 amends the Fair Credit Reporting Act                    to protect consumer information in                      proposed modifications?
                                                 (‘‘FCRA’’) by imposing a requirement                    connection with its disposal.8 These                       b. How would these modifications
                                                 that any person that maintains or                       examples are intended to provide                        affect the costs the Rule imposes on
                                                 otherwise possesses consumer                            covered entities with guidance on how                   businesses, including small businesses?
                                                 information, or any compilation of                      to comply with the Rule but are not                        4. What significant costs, if any, has
                                                 consumer information, derived from                      intended to be safe harbors or exclusive                the Rule imposed on consumers? What
                                                 consumer reports for a business                         methods for compliance.9 The Rule uses                  evidence supports the asserted costs?
                                                 purpose, properly dispose of any such                   a flexible ‘‘reasonable measures’’                         5. What modifications, if any, should
                                                 information or compilation.1 The Act                    standard. The FTC realizes that there are               be made to the Rule to reduce any costs
                                                 also required the Commission and other                  few foolproof methods of record                         imposed on consumers?
                                                 federal agencies to promulgate rules                    destruction and that entities covered by                   a. What evidence supports the
                                                 regarding this requirement.2 Further, the               the Rule must consider their own                        proposed modifications?
                                                 Act directed the Commission and other                   unique circumstances when                                  b. How would these modifications
                                                 federal agencies to ensure that the rules               determining how to comply with the                      affect the benefits provided by the Rule?
                                                 were consistent with the requirements                                                                              6. What benefits, if any, has the Rule
                                                                                                         Rule.
                                                 of the Gramm-Leach-Bliley Act                                                                                   provided to businesses, including small
                                                                                                            The Disposal Rule became effective                   businesses? What evidence supports the
                                                 (‘‘GLBA’’).3                                            on June 1, 2005.
                                                    Pursuant to the Act’s directive, the                                                                         asserted benefits?
                                                 Commission promulgated the Disposal                     II. Regulatory Review of the Disposal                      7. What modifications, if any, should
                                                 Rule in 2004. The Disposal Rule                         Rule                                                    be made to the Rule to increase its
                                                 provides that, unless otherwise stated,                                                                         benefits to businesses, including small
                                                                                                            The Commission periodically reviews                  businesses?
                                                 terms used in the Rule have the same                    all of its rules and guides. These reviews
                                                 meaning as set forth in the FCRA.4 The                                                                             a. What evidence supports the
                                                                                                         seek information about the costs and                    proposed modifications?
                                                 Rule defines ‘‘consumer information’’ as                benefits of the agency’s rules and
                                                 any record about an individual, whether                                                                            b. How would these modifications
                                                                                                         guides, and their regulatory and                        affect the costs the Rule imposes on
                                                 in paper, electronic, or other form, that               economic impact. The information
                                                 is a consumer report or is derived from                                                                         businesses, including small businesses?
                                                                                                         obtained assists the Commission in                         c. How would these modifications
                                                 a consumer report. Consumer                             identifying those rules and guides that
                                                 information also means a compilation of                                                                         affect the benefits to consumers?
                                                                                                         warrant modification or rescission.                        8. What significant costs, if any,
                                                 such records. Consumer information                      Therefore, the Commission solicits                      including costs of compliance, has the
                                                 does not include information that does
                                                                                                         comments on, among other things, the                    Rule imposed on businesses, including
                                                 not identify individuals, such as
                                                                                                         economic impact and benefits of the                     small businesses? What evidence
                                                 aggregate information or blind data.5 In
                                                                                                         Rule; possible conflict between the Rule                supports the asserted costs?
                                                 addition, ‘‘dispose,’’ ‘‘disposing,’’ or                                                                           9. What modifications, if any, should
                                                                                                         and state, local, or other federal laws or
                                                 ‘‘disposal’’ is defined as (1) The
                                                                                                         regulations; and the effect on the Rule                 be made to the Rule to reduce the costs
                                                 discarding or abandonment of consumer
                                                                                                         of any technological, economic, or other                imposed on businesses, including small
                                                 information, or (2) The sale, donation,
                                                                                                         industry changes.                                       businesses?
                                                 or transfer of any medium, including                                                                               a. What evidence supports the
                                                 computer equipment, upon which                          III. Issues for Comment                                 proposed modifications?
                                                 consumer information is stored.6                                                                                   b. How would these modifications
                                                    The Disposal Rule requires that                        The Commission requests written
                                                                                                         comment on any or all of the following                  affect the benefits provided by the Rule?
                                                 persons over which the FTC has                                                                                     10. What evidence is available
                                                 jurisdiction who maintain or otherwise                  questions. These questions are designed
                                                                                                         to assist the public and should not be                  concerning the degree of industry
                                                 possess consumer information for a                                                                              compliance with the Rule?
                                                 business purpose properly dispose of                    construed as a limitation on the issues
                                                                                                         about which public comments may be                         11. What modifications, if any, should
                                                 such information by taking reasonable                                                                           be made to the Rule to account for
                                                 measures to protect against                             submitted. The Commission requests
                                                                                                         that responses to its questions be as                   changes in relevant technology or
                                                 unauthorized access to or use of the                                                                            economic conditions? What evidence
                                                 information in connection with its                      specific as possible, including a
                                                                                                         reference to the question being                         supports the proposed modifications?
                                                 disposal.7 It also includes several                                                                                12. Does the Rule overlap or conflict
                                                 examples of what the Commission                         answered, and refer to empirical data or
                                                                                                         other evidence upon which the                           with other federal, state, or local laws or
                                                                                                         comment is based whenever available                     regulations? If so, how?
                                                   1 15  U.S.C. 1681w.                                                                                              a. What evidence supports the
                                                   2 The  other agencies are the Securities and          and appropriate.
                                                 Exchange Commission, the Commodity Futures
                                                                                                                                                                 asserted conflicts?
                                                 Trading Commission, the Federal banking agencies,       A. General Issues                                          b. With reference to the asserted
                                                 and the National Credit Union Administration. Id.                                                               conflicts, should the Rule be modified?
                                                   3 Id. The other agencies have incorporated the          1. Is there a continuing need for                     If so, why, and how? If not, why not?
                                                 Disposal Rule requirements into their Safeguards        specific provisions of the Rule? Why or
                                                 rules and guidelines. See 12 CFR part 30, app. B        why not?                                                B. Specific Issues
                                                 (Office of the Comptroller of the Currency); 12 CFR       2. What benefits has the Rule
                                                 part 208, app. D–2 and 12 CFR part 225, app. F                                                                     1. Should the Rule be modified to
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                                                 (Board of Governors of the Federal Reserve System);     provided to consumers? What evidence                    include more specific and prescriptive
                                                 12 CFR part 364, app. B (Federal Deposit Insurance      supports the asserted benefits?                         requirements for disposing of consumer
                                                 Corporation); 12 CFR part 748, app. A (National           3. What modifications, if any, should                 information? Why or why not? If so,
                                                 Credit Union Administration); 17 CFR 248.30
                                                 (Securities and Exchange Commission).
                                                                                                         be made to the Rule to increase its                     what requirements should be included
                                                   4 16 CFR 682.1(a).                                    benefits to consumers?                                  and what sources should they be drawn
                                                   5 16 CFR 682.1(b).                                                                                            from?
                                                   6 16 CFR 682.1(c).                                      8 16    CFR 682.3(b).                                    a. What evidence supports such a
                                                   7 16 CFR 682.2(b), 682.3(a).                            9 Id.                                                 modification?


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                                                                    Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Proposed Rules                                                63437

                                                    b. How would this modification affect                record of this proceeding, including, to              and on the envelope, and mail your
                                                 the costs the Rule imposes on                           the extent practicable, on the public                 comment to the following address:
                                                 businesses, including small businesses?                 Commission Web site, at https://                      Federal Trade Commission, Office of the
                                                    c. How would this modification affect                www.ftc.gov/policy/public-comments.                   Secretary, 600 Pennsylvania Avenue
                                                 the benefits to consumers?                              As a matter of discretion, the                        NW., Suite CC–5610 (Annex H),
                                                    2. Should the Rule be modified to                    Commission tries to remove individuals’               Washington, DC 20580, or deliver your
                                                 delete any of the existing examples or                  home contact information from                         comment to the following address:
                                                 include additional examples to illustrate               comments before placing them on the                   Federal Trade Commission, Office of the
                                                 proper methods for disposing of                         Commission Web site. Because your                     Secretary, Constitution Center, 400 7th
                                                 consumer information? Why or why                        comment will be made public, you are                  Street SW., 5th Floor, Suite 5610
                                                 not? If so, what examples should be                     solely responsible for making sure that               (Annex H), Washington, DC 20024.
                                                 included and what sources should they                   your comment does not include any                       Visit the Commission Web site at
                                                 be drawn from?                                          sensitive personal information, such as               https://www.ftc.gov to read this
                                                    a. What evidence supports such a                     a Social Security number, date of birth,              document and the news release
                                                 modification?                                           driver’s license number or other state                describing it. The FTC Act and other
                                                    b. How would this modification affect                identification number or foreign country              laws that the Commission administers
                                                 the costs the Rule imposes on                           equivalent, passport number, financial                permit the collection of public
                                                 businesses, including small businesses?                 account number, or payment card                       comments to consider and use in this
                                                    c. How would this modification affect                number. You are also solely responsible               proceeding as appropriate. The
                                                 the benefits to consumers?                              for making sure that your comment does                Commission will consider all timely
                                                    3. Should the Rule be modified to                    not include any sensitive health                      and responsive public comments that it
                                                 reference or incorporate any other                      information, such as medical records or               receives on or before November 21,
                                                 information destruction standards or                    other individually identifiable health                2016. For information on the
                                                 frameworks? If so, which standards                      information.                                          Commission’s privacy policy, including
                                                 should be incorporated or referenced                       In addition, do not include any                    routine uses permitted by the Privacy
                                                 and how should they be referenced or                    ‘‘[t]rade secret or any commercial or                 Act, see https://www.ftc.gov/site-
                                                 incorporated by the Rule? Should such                   financial information which is . . .                  information/privacy-policy.
                                                 standards be considered safe harbors for                privileged or confidential,’’ as discussed
                                                                                                         in Section 6(f) of the FTC Act, 15 U.S.C.               By direction of the Commission.
                                                 compliance with the Rule?
                                                    a. What evidence supports such a                     46(f), and FTC Rule 4.10(a)(2), 16 CFR                Donald S. Clark,
                                                 modification?                                           4.10(a)(2). In particular, do not include             Secretary.
                                                    b. How would this modification affect                competitively sensitive information                   [FR Doc. 2016–22198 Filed 9–14–16; 8:45 am]
                                                 the costs the Rule imposes on                           such as costs, sales statistics,                      BILLING CODE 6750–01–P
                                                 businesses, including small businesses?                 inventories, formulas, patterns, devices,
                                                    c. How would this modification affect                manufacturing processes, or customer
                                                 the benefits to consumers?                              names.
                                                    4. Under the current Disposal Rule,                     If you want the Commission to give                 DEPARTMENT OF HOMELAND
                                                 ‘‘Consumer information does not                         your comment confidential treatment,                  SECURITY
                                                 include information that does not                       you must file it in paper form, with a
                                                 identify individuals, such as aggregate                 request for confidential treatment, and               Coast Guard
                                                 information or blind data.’’ Should the                 you must follow the procedure
                                                 Rule be modified to change the                          explained in FTC Rule 4.9(c), 16 CFR                  33 CFR Part 100
                                                 definition of ‘‘consumer information’’?                 4.9(c). In particular, the written request
                                                                                                                                                               [Docket No. USCG–2016–0777]
                                                 Should the definition of ‘‘consumer                     for confidential treatment that
                                                 information’’ include information that                  accompanies the comment must include
                                                                                                                                                               RIN 1625–AA08
                                                 can be reasonably linked to an                          the factual and legal basis for the
                                                 individual in light of changes in                       request, and must identify the specific               Special Local Regulation; San Diego
                                                 relevant technology or market practices?                portions of the comments to be withheld               Sharkfest Swim; San Diego Bay, CA
                                                 Should the Rule be modified to define                   from the public record. Your comment
                                                 ‘‘aggregate information’’ or ‘‘blind                    will be kept confidential only if the FTC             AGENCY:   Coast Guard, DHS.
                                                 data’’?                                                 General Counsel grants your request in                ACTION:   Notice of proposed rulemaking.
                                                    a. What evidence supports such a                     accordance with the law and the public
                                                 modification?                                           interest.                                             SUMMARY:   The Coast Guard is
                                                    b. How would this modification affect                   Postal mail addressed to the                       temporarily changing the enforcement
                                                 the costs the Rule imposes on                           Commission is subject to delay due to                 date and the location of the special local
                                                 businesses, including small businesses?                 heightened security screening. As a                   regulation for the annual San Diego
                                                    c. How would this modification affect                result, we encourage you to submit your               Sharkfest Swim event held on the
                                                 the benefits to consumers?                              comment online. To make sure that the                 navigable waters of San Diego Bay, San
                                                                                                         Commission considers your online                      Diego, CA. The change of enforcement
                                                 IV. Instructions for Submitting                         comment, you must file it at https://                 date and the location for the special
                                                 Comments                                                ftcpublic.commentworks.com/ftc/                       local regulation is necessary to provide
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                                                    You can file a comment online or on                  disposalrule by following the                         for the safety of life on navigable waters
                                                 paper. For the Commission to consider                   instructions on the web-based form. If                during the event. This action will
                                                 your comment, we must receive it on or                  this document appears at http://                      restrict vessel traffic in the waters of the
                                                 before November 21, 2016. Write                         wwww.regulations.gov, you also may file               San Diego Bay, California, from 9:00
                                                 ‘‘Disposal Rule, 16 CFR part 682, Project               a comment through that Web site.                      a.m. to 10:00 a.m. on October 2, 2016,
                                                 No. 165410’’ on the comment. Your                          If you file your comment on paper,                 from Fifth Avenue Landing to Tidelands
                                                 comment, including your name and                        write ‘‘Disposal Rule, 16 CFR part 682,               Park, Coronado, CA. We invite your
                                                 your state, will be placed on the public                Project No. 165410’’ on your comment                  comments on this proposed rulemaking.


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Document Created: 2018-02-09 13:18:03
Document Modified: 2018-02-09 13:18:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionRequest for public comment.
DatesComments must be received on or before November 21, 2016.
ContactTiffany George, Division of Privacy and Identity Protection, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-3040.
FR Citation81 FR 63435 
RIN Number3084-AB41

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