83 FR 43683 - Agency Information Collection Activities; Proposed Collection; Comment Request

FEDERAL TRADE COMMISSION

Federal Register Volume 83, Issue 166 (August 27, 2018)

Page Range		43683-43685
FR Document		2018-18448

The information collection requirements described below will be submitted to the Office of Management and Budget (OMB) for review, as required by the Paperwork Reduction Act (PRA). The FTC seeks public comments on the agency's shared enforcement with the Consumer Financial Protection Bureau (``CFPB'') of the information collection requirements in subpart N of the CFPB's Regulation V (``Rule''). That clearance expires on November 30, 2018.

Federal Register, Volume 83 Issue 166 (Monday, August 27, 2018)

[Federal Register Volume 83, Number 166 (Monday, August 27, 2018)]
[Notices]
[Pages 43683-43685]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-18448]

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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 information collection requirements described below will
be submitted to the Office of Management and Budget (OMB) for review,
as required by the Paperwork Reduction Act (PRA). The FTC seeks public
comments on the agency's shared enforcement with the Consumer Financial
Protection Bureau (``CFPB'') of the information collection requirements
in subpart N of the CFPB's Regulation V (``Rule''). That clearance
expires on November 30, 2018.

DATES: Comments must be received on or before October 26, 2018.

ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Reduction
Act: FTC File No. P072108'' on your comment, and file your comment
online at https://ftcpublic.commentworks.com/ftc/regulationVsubpartNpra
by following the instructions on the web-based form. If you prefer to
file your comment on paper, mail or deliver 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: Requests for copies of the collection
of information and supporting documentation should be addressed to Ryan
Mehm, Attorney, Bureau of Consumer Protection, (202) 326-2918, Federal
Trade Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Proposed Information Collection Activities

Under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501-3520,
federal agencies must get OMB approval for each collection of
information they conduct, sponsor, or require. ``Collection of
information'' means agency requests or requirements to 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 PRA clearance for FTC's portion
of the estimated burden for the information collection requirements
associated with the CFPB's subpart N of Regulation V, 12 CFR 1022.130-
1022.138 (OMB Control Number 3084-0128).
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, 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. All comments must be received on or before October 26,
2018.

I. Overview of the Rule

The FTC shares enforcement authority with the CFPB for subpart N of
Regulation V.\1\ Subpart N requires nationwide consumer reporting
agencies and nationwide consumer specialty reporting agencies to
provide to consumers, upon request, one free file disclosure within any
12-month period. Generally, it requires the nationwide consumer
reporting agencies, as defined in Section 603(p) of the Fair Credit
Reporting Act (``FCRA''), 15 U.S.C. 1681a(p), to create and operate a
centralized source that provides consumers with the ability to request
their free annual file disclosures from each of the nationwide consumer
reporting agencies through a centralized internet website, toll-free
telephone number, and postal address. Subpart N also requires the
nationwide consumer reporting agencies to establish a standardized form
for internet and mail requests for annual file disclosures, and
provides a model standardized form that may be used to comply with that
requirement. It additionally requires nationwide specialty consumer
reporting agencies, as defined in Section 603(w) of the FCRA, 15 U.S.C.
1681a(w), to establish a streamlined process for consumers to request
annual file disclosures. This streamlined process must include a toll-
free telephone number for consumers to make such requests.
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\1\ Subpart N sets forth the former FTC's Free Annual File
Disclosures Rule that appeared under 16 CFR parts 610 and 698.
Rulemaking authority for this and several other FCRA rules was
transferred to the CFBP under Title X of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, Public Law 111-203, 124 Stat.
1376 (2010). Title X comprises sections 1001-100H (collectively, the
``Consumer Financial Protection Act of 2010'').
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II. Burden Statement

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

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

The Consumer Data Industry Association estimated that in 2011, the
nationwide consumer reporting agencies provided approximately 30
million free annual file disclosures through the centralized internet
website, toll-free telephone number, and postal address required to be
established by the FACT Act and subpart N.\2\ When it last sought
clearance renewal for the Rule, the FTC had been unable to obtain,
through public comment or otherwise, updated information on request
volume. As a proxy, it then assumed a volume of 35 million requests per
year. We expect that the number of requests for free annual credit
reports will rise over the

[[Page 43684]]

next three years because of increases in the population and consumer
awareness that they are entitled to a free annual report. As a proxy,
we are now estimating 38 million requests per year as a representative
average year to estimate PRA burden for purposes of the instant
analysis.
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\2\ See Consumer Financial Protection Bureau Report to Congress,
The Impact of Differences Between Consumer- and Creditor-Purchased
Credit Scores, at 9 (July 19, 2011), available at https://files.consumerfinance.gov/f/2011/07/Report_20110719_CreditScores.pdf.
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The Commission, however, seeks more recent estimates of the number
of requests consumers are making for free annual credit reports. In
addition to data on the number of requests, data on how the number of
requests has changed over time, and how these requests are being
received--by internet, phone, or by mail--would be most helpful.

B. Annual File Disclosures Provided Through the Internet

Both nationwide and nationwide specialty consumer reporting
agencies will likely handle the overwhelming majority of consumer
requests through internet websites. The annual file disclosure requests
processed through the internet will not impose any hours burden per
request on the nationwide and nationwide specialty consumer reporting
agencies. However, consumer reporting agencies periodically will be
required to adjust the internet capacity needed to handle the changing
request volume. Consumer reporting agencies likely will make such
adjustments by negotiating or renegotiating outsourcing service
contracts annually or as conditions change. Trained personnel will need
to spend time negotiating and renegotiating such contracts. Commission
staff estimates that negotiating such contracts will require a
cumulative total of 8,320 hours and $598,957 in labor costs.\3\ Such
activity is treated as an annual burden of maintaining and adjusting
the changing internet capacity requirements.
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\3\ Based on the time necessary for similar activity in the
federal government (including at the FTC), staff estimates that such
contracting and administration will require approximately 4 full-
time equivalent employees (``FTE'') for the web service contracts.
Thus, staff estimates that administering the contract will require 4
FTE, which is 8,320 hours per year (4 FTE x 2,080 hours/year). The
cost is based on the reported May 2017 Bureau of Labor Statistics
(BLS) rate ($71.99) for computer and information systems managers.
See Occupational Employment and Wages--May 2017, Table 1, available
at https://www.bls.gov/news.release/ocwage.t01.htm. Thus, the
estimated setup and maintenance cost for an internet system is
$598,957 per year (8,320 hours x $71.99/hour).
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C. Annual File Disclosures Requested Over the Telephone

Most of the telephone requests for annual file disclosures will
also be handled in an automated fashion, without any additional
personnel needed to process the requests. As with the internet,
consumer reporting agencies will require additional time and investment
to increase and administer the automated telephone capacity for the
expected increase in request volume. The nationwide and nationwide
specialty consumer reporting agencies will likely make such adjustments
by negotiating or renegotiating outsourcing service contracts annually
or as conditions change. Staff estimates that this will require a total
of 6,240 hours at a cost of $449,218 in labor costs.\4\ This activity
also is treated as an annual recurring burden necessary to obtain,
maintain, and adjust automated call center capacity.
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\4\ Staff estimates that recurring contracting for automated
telephone capacity will require approximately 3 FTE, a total of
6,240 hours (3 x 2,080 hours). Applying an hourly wage rate of
$71.99 (see supra note 3), estimated setup and maintenance cost is
$449,218 (6,240 x $71.99) per year.
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D. Annual File Disclosures Requiring Processing by Mail

Based on their knowledge of the industry, staff believes that no
more than 1% of consumers (1% x 38 million, or 380,000) will request an
annual file disclosure through U.S. postal service mail. Staff
estimates that clerical personnel will require 10 minutes per request
to handle these requests, thereby totaling 63,333 hours of time.
[(380,000 x 10 minutes)/60 minutes per hour = 63,333 hours]
In addition, whenever the requesting consumer cannot be identified
using an automated method (a website or automated telephone service),
it will be necessary to redirect that consumer to send identifying
material along with the request by mail. Staff estimates that this will
occur in about 5% of the new requests (or 1,881,000) \5\ that were
originally placed over the internet or telephone. Staff estimates that
clerical personnel will require approximately 10 minutes per request to
input and process those redirected requests for a cumulative total of
313,500 clerical hours. [(1,881,000 x 10 minutes)/60 minutes per hour =
313,500 hours]
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\5\ This figure reflects five percent of all requests, net of
the estimated one percent of all requests that might initially be
made by mail. That is, 0.05 x (38,000,000 - 380,000) = 1,881,000.
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E. Instructions to Consumers

The Rule also requires that certain instructions be provided to
consumers. See Rule sections 1022.136(b)(2)(iv)(A-B),
1022.137(a)(2)(iii)(A-B). Minimal associated time or cost is involved,
however. Internet instructions to consumers are embedded in the
centralized source website and do not require additional time or cost
for the nationwide consumer reporting agencies. Similarly, for
telephone requests, the automated phone systems provide the requisite
instructions when consumers select certain options. Some consumers who
request their credit reports by mail might additionally request printed
instructions from the nationwide and nationwide specialty consumer
reporting agencies. Staff estimates that there will be a total of
2,261,000 requests each year for free annual file disclosures by
mail.\6\ Based on their knowledge of the industry, staff estimates
that, of the predicted 2,261,000 mail requests, 10% (or 226,100) will
request instructions by mail. If printed instructions are sent to each
of these consumers by mail, requiring 10 minutes of clerical time per
consumer, this will total 37,683 hours. [(226,100 instructions x 10
minutes)/60 minutes per hour].
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\6\ This figure includes both the estimated 1% of 38 million
requests that will be made by mail each year (380,000), and the
estimated 1,881,000 requests initially made over the internet or
telephone that will be redirected to the mail process (see supra
note 5).
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F. Labor Costs

Labor costs are derived by applying hourly cost figures to the
burden hours described above. Staff anticipates that processing of
requests for annual file disclosures and instructions will be performed
by clerical personnel, and estimates that the processing will require
414,516 hours at a cost of $7,444,707. [(63,333 hours for handling
initial mail request + 313,500 hours for handling requests redirected
to mail + 37,683 hours for handling instructions mailed to consumers) x
$17.96 per hour.\7\]
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\7\ See Occupational Employment and Wages--May 2017, Table 1,
available at https://www.bls.gov/news.release/ocwage.t01.htm (Office
and administrative support workers, general).
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As elaborated on above, staff estimates that a total of 14,560
labor hours will be needed to negotiate or renegotiate outsourced
service contracts annually (or as conditions otherwise change) to
increase internet (8,320 hours) and telephone (6,240 hours) capacity
requirements for internet web services and the automated telephone call
center. This will result in approximately $1,048,174 per year in labor
costs. [14,560 hours x $71.99 per hour \8\]
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\8\ See supra notes 3 and 4.
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Thus, estimated cumulative labor will costs are $8,492,881.

G. Capital/Non-Labor Costs

As in the previous PRA clearance analysis, FTC staff believes it is
likely

[[Page 43685]]

that consumer reporting agencies will use third-party contractors
(instead of their own employees) to increase the capacity of their
systems. Because of the way these contracts are typically established,
these costs will likely be incurred on a continuing basis, and will be
calculated based on the number of requests handled by the systems.
Staff estimates that the total annual amount to be paid for services
delivered under these contracts is $13,919,400.\9\
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\9\ This consists of an estimated $9,302,400 for automated
telephone cost ($1.36 per request x 6.84 million requests) and an
estimated $4,617,000 ($0.15 per request x 30.78 million requests)
for internet web service cost. Per unit cost estimates are based on
staff's knowledge of the industry.
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H. Net Burden for FTC, After 50:50 Split

After halving the updated estimates to split the PRA burden with
the CFPB regarding the Rule, the FTC's burden totals are 214,538 hours,
$4,246,441 in associated labor costs, and $6,959,700 in non-labor/
capital costs.
Request for Comments
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before October 26, 2018. Write
``Paperwork Reduction Act: FTC File No. P072108'' on your 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 website, at https://www.ftc.gov/policy/public-comments. 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 at https://ftcpublic.commentworks.com/ftc/regulationVsubpartNpra by following the
instructions on the web based form. If this Notice appears at https://www.regulations.gov, you also may file a comment through that website.
If you file your comment on paper, write ``Paperwork Reduction Act:
FTC File No. P072108'' on your comment and on the envelope, and mail it
to the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580, 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. If possible, submit your paper comment to the Commission by
courier or overnight service.
Because your comment will be placed on the publicly accessible FTC
website at https://www.ftc.gov, you are solely responsible for making
sure that your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . . is privileged or confidential''--as provided
by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2)--including in particular competitively
sensitive information such as costs, sales statistics, inventories,
formulas, patterns, devices, manufacturing processes, or customer
names.
Comments containing material for which confidential treatment is
requested must 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 public FTC website--as legally required by FTC Rule
4.9(b)--we cannot redact or remove your comment from the FTC website,
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.
Visit the Commission website at https://www.ftc.gov to read this
Notice. 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 October 26,
2018. You can find more information, including routine uses permitted
by the Privacy Act, in the Commission's privacy policy, at https://www.ftc.gov/site-information/privacy-policy.

Heather Hippsley,
Acting Principal Deputy General Counsel.
[FR Doc. 2018-18448 Filed 8-24-18; 8:45 am]
BILLING CODE 6750-01-P

Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Notices 43683

disclosed and the release of the data comment to the following address: nationwide consumer reporting agencies
would likely cause substantial harm to Federal Trade Commission, Office of the and nationwide consumer specialty
the competitive position of the Secretary, Constitution Center, 400 7th reporting agencies to provide to
respondent (5 U.S.C. 552(b)(4)). Street SW, 5th Floor, Suite 5610 (Annex consumers, upon request, one free file
Determinations of confidentiality based J), Washington, DC 20024. disclosure within any 12-month period.
on exemption 4 of FOIA would be made FOR FURTHER INFORMATION CONTACT: Generally, it requires the nationwide
on a case-by-case basis. Requests for copies of the collection of consumer reporting agencies, as defined
Consultation Outside the Agency: The information and supporting in Section 603(p) of the Fair Credit
Federal Reserve consulted with the documentation should be addressed to Reporting Act (‘‘FCRA’’), 15 U.S.C.
Office of the Comptroller of the Ryan Mehm, Attorney, Bureau of 1681a(p), to create and operate a
Currency as well as with potential Consumer Protection, (202) 326–2918, centralized source that provides
respondent institutions in developing Federal Trade Commission, 600 consumers with the ability to request
this proposed report. Several outreach Pennsylvania Ave. NW, Washington, DC their free annual file disclosures from
meetings took place to help refine the 20580. each of the nationwide consumer
data items in the proposed schedules SUPPLEMENTARY INFORMATION:
reporting agencies through a centralized
and clarify the accompanying internet website, toll-free telephone
instructions. Proposed Information Collection number, and postal address. Subpart N
Activities also requires the nationwide consumer
Board of Governors of the Federal Reserve
System, August 21, 2018. Under the Paperwork Reduction Act reporting agencies to establish a
(PRA), 44 U.S.C. 3501–3520, federal standardized form for internet and mail
Ann Misback,
agencies must get OMB approval for requests for annual file disclosures, and
Secretary of the Board.
each collection of information they provides a model standardized form that
[FR Doc. 2018–18430 Filed 8–24–18; 8:45 am] may be used to comply with that
conduct, sponsor, or require.
BILLING CODE 6210–01–P
‘‘Collection of information’’ means requirement. It additionally requires
agency requests or requirements to nationwide specialty consumer
submit reports, keep records, or provide reporting agencies, as defined in Section
FEDERAL TRADE COMMISSION information to a third party. 44 U.S.C. 603(w) of the FCRA, 15 U.S.C. 1681a(w),
3502(3); 5 CFR 1320.3(c). As required by to establish a streamlined process for
Agency Information Collection consumers to request annual file
Activities; Proposed Collection; section 3506(c)(2)(A) of the PRA, the
FTC is providing this opportunity for disclosures. This streamlined process
Comment Request must include a toll-free telephone
public comment before requesting that
AGENCY: Federal Trade Commission OMB extend the existing PRA clearance number for consumers to make such
(FTC or Commission). for FTC’s portion of the estimated requests.
ACTION: Notice. burden for the information collection II. Burden Statement
requirements associated with the Because the FTC shares enforcement
SUMMARY: The information collection CFPB’s subpart N of Regulation V, 12
requirements described below will be authority with the CFPB for subpart N,
CFR 1022.130–1022.138 (OMB Control the two agencies split between them the
submitted to the Office of Management Number 3084–0128).
and Budget (OMB) for review, as related estimate of PRA burden for firms
The FTC invites comments on: (1) under their co-enforcement jurisdiction.
required by the Paperwork Reduction Whether the proposed collection of
Act (PRA). The FTC seeks public Estimated PRA burden, excluding the
information is necessary for the proper halving (to be shown at the conclusion
comments on the agency’s shared performance of the functions of the
enforcement with the Consumer of this analysis), are as follows:
agency, including whether the
Financial Protection Bureau (‘‘CFPB’’) of information will have practical utility; A. Requests per Year From Consumers
the information collection requirements (2) the accuracy of the agency’s estimate for Free Annual File Disclosures
in subpart N of the CFPB’s Regulation of the burden of the proposed collection The Consumer Data Industry
V (‘‘Rule’’). That clearance expires on of information, including the validity of Association estimated that in 2011, the
November 30, 2018. the methodology and assumptions used; nationwide consumer reporting agencies
DATES: Comments must be received on (3) ways to enhance the quality, utility, provided approximately 30 million free
or before October 26, 2018. and clarity of the information to be annual file disclosures through the
ADDRESSES: Interested parties may file a collected; and (4) ways to minimize the centralized internet website, toll-free
comment online or on paper by burden of the collection of information telephone number, and postal address
following the instructions in the on those who are to respond. All required to be established by the FACT
Request for Comments part of the comments must be received on or before Act and subpart N.2 When it last sought
SUPPLEMENTARY INFORMATION section October 26, 2018. clearance renewal for the Rule, the FTC
below. Write ‘‘Paperwork Reduction I. Overview of the Rule had been unable to obtain, through
Act: FTC File No. P072108’’ on your public comment or otherwise, updated
comment, and file your comment online The FTC shares enforcement authority information on request volume. As a
at https://ftcpublic.commentworks.com/ with the CFPB for subpart N of proxy, it then assumed a volume of 35
ftc/regulationVsubpartNpra by Regulation V.1 Subpart N requires million requests per year. We expect
following the instructions on the web- that the number of requests for free
amozie on DSK3GDR082PROD with NOTICES1

1 Subpart N sets forth the former FTC’s Free
based form. If you prefer to file your Annual File Disclosures Rule that appeared under annual credit reports will rise over the
comment on paper, mail or deliver your 16 CFR parts 610 and 698. Rulemaking authority for
comment to the following address: this and several other FCRA rules was transferred 2 See Consumer Financial Protection Bureau

Federal Trade Commission, Office of the to the CFBP under Title X of the Dodd-Frank Wall Report to Congress, The Impact of Differences
Street Reform and Consumer Protection Act, Public Between Consumer- and Creditor-Purchased Credit
Secretary, 600 Pennsylvania Avenue Law 111–203, 124 Stat. 1376 (2010). Title X Scores, at 9 (July 19, 2011), available at https://
NW, Suite CC–5610 (Annex J), comprises sections 1001–100H (collectively, the files.consumerfinance.gov/f/2011/07/Report_
Washington, DC 20580, or deliver your ‘‘Consumer Financial Protection Act of 2010’’). 20110719_CreditScores.pdf.

VerDate Sep<11>2014 17:51 Aug 24, 2018 Jkt 244001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\FR\FM\27AUN1.SGM 27AUN1

43684 Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Notices

next three years because of increases in the internet, consumer reporting require additional time or cost for the
the population and consumer awareness agencies will require additional time nationwide consumer reporting
that they are entitled to a free annual and investment to increase and agencies. Similarly, for telephone
report. As a proxy, we are now administer the automated telephone requests, the automated phone systems
estimating 38 million requests per year capacity for the expected increase in provide the requisite instructions when
as a representative average year to request volume. The nationwide and consumers select certain options. Some
estimate PRA burden for purposes of the nationwide specialty consumer consumers who request their credit
instant analysis. reporting agencies will likely make such reports by mail might additionally
The Commission, however, seeks adjustments by negotiating or request printed instructions from the
more recent estimates of the number of renegotiating outsourcing service nationwide and nationwide specialty
requests consumers are making for free contracts annually or as conditions consumer reporting agencies. Staff
annual credit reports. In addition to data change. Staff estimates that this will estimates that there will be a total of
on the number of requests, data on how require a total of 6,240 hours at a cost 2,261,000 requests each year for free
the number of requests has changed of $449,218 in labor costs.4 This activity annual file disclosures by mail.6 Based
over time, and how these requests are also is treated as an annual recurring on their knowledge of the industry, staff
being received—by internet, phone, or burden necessary to obtain, maintain, estimates that, of the predicted
by mail—would be most helpful. and adjust automated call center 2,261,000 mail requests, 10% (or
B. Annual File Disclosures Provided capacity. 226,100) will request instructions by
Through the Internet mail. If printed instructions are sent to
D. Annual File Disclosures Requiring
each of these consumers by mail,
Both nationwide and nationwide Processing by Mail
requiring 10 minutes of clerical time per
specialty consumer reporting agencies Based on their knowledge of the consumer, this will total 37,683 hours.
will likely handle the overwhelming industry, staff believes that no more [(226,100 instructions × 10 minutes)/60
majority of consumer requests through than 1% of consumers (1% × 38 million, minutes per hour].
internet websites. The annual file or 380,000) will request an annual file
disclosure requests processed through disclosure through U.S. postal service F. Labor Costs
the internet will not impose any hours mail. Staff estimates that clerical Labor costs are derived by applying
burden per request on the nationwide personnel will require 10 minutes per hourly cost figures to the burden hours
and nationwide specialty consumer request to handle these requests, thereby described above. Staff anticipates that
reporting agencies. However, consumer totaling 63,333 hours of time. [(380,000 processing of requests for annual file
reporting agencies periodically will be × 10 minutes)/60 minutes per hour = disclosures and instructions will be
required to adjust the internet capacity 63,333 hours] performed by clerical personnel, and
needed to handle the changing request In addition, whenever the requesting estimates that the processing will
volume. Consumer reporting agencies consumer cannot be identified using an require 414,516 hours at a cost of
likely will make such adjustments by automated method (a website or $7,444,707. [(63,333 hours for handling
negotiating or renegotiating outsourcing automated telephone service), it will be initial mail request + 313,500 hours for
service contracts annually or as necessary to redirect that consumer to handling requests redirected to mail +
conditions change. Trained personnel send identifying material along with the 37,683 hours for handling instructions
will need to spend time negotiating and request by mail. Staff estimates that this mailed to consumers) × $17.96 per
renegotiating such contracts. will occur in about 5% of the new hour.7]
Commission staff estimates that requests (or 1,881,000) 5 that were As elaborated on above, staff
negotiating such contracts will require a originally placed over the internet or estimates that a total of 14,560 labor
cumulative total of 8,320 hours and telephone. Staff estimates that clerical hours will be needed to negotiate or
$598,957 in labor costs.3 Such activity personnel will require approximately 10 renegotiate outsourced service contracts
is treated as an annual burden of minutes per request to input and annually (or as conditions otherwise
maintaining and adjusting the changing process those redirected requests for a change) to increase internet (8,320
internet capacity requirements. cumulative total of 313,500 clerical hours) and telephone (6,240 hours)
hours. [(1,881,000 × 10 minutes)/60 capacity requirements for internet web
C. Annual File Disclosures Requested minutes per hour = 313,500 hours] services and the automated telephone
Over the Telephone call center. This will result in
Most of the telephone requests for E. Instructions to Consumers
approximately $1,048,174 per year in
annual file disclosures will also be The Rule also requires that certain labor costs. [14,560 hours × $71.99 per
handled in an automated fashion, instructions be provided to consumers. hour 8]
without any additional personnel See Rule sections 1022.136(b)(2)(iv)(A– Thus, estimated cumulative labor will
needed to process the requests. As with B), 1022.137(a)(2)(iii)(A–B). Minimal costs are $8,492,881.
associated time or cost is involved,
3 Based on the time necessary for similar activity however. Internet instructions to G. Capital/Non-Labor Costs
in the federal government (including at the FTC), consumers are embedded in the As in the previous PRA clearance
staff estimates that such contracting and analysis, FTC staff believes it is likely
administration will require approximately 4 full-
centralized source website and do not
time equivalent employees (‘‘FTE’’) for the web
4 Staff estimates that recurring contracting for 6 This figure includes both the estimated 1% of
service contracts. Thus, staff estimates that
administering the contract will require 4 FTE, automated telephone capacity will require 38 million requests that will be made by mail each
amozie on DSK3GDR082PROD with NOTICES1

which is 8,320 hours per year (4 FTE × 2,080 hours/ approximately 3 FTE, a total of 6,240 hours (3 × year (380,000), and the estimated 1,881,000 requests
year). The cost is based on the reported May 2017 2,080 hours). Applying an hourly wage rate of initially made over the internet or telephone that
Bureau of Labor Statistics (BLS) rate ($71.99) for $71.99 (see supra note 3), estimated setup and will be redirected to the mail process (see supra
computer and information systems managers. See maintenance cost is $449,218 (6,240 × $71.99) per note 5).
Occupational Employment and Wages—May 2017, year. 7 See Occupational Employment and Wages—

Table 1, available at https://www.bls.gov/ 5 This figure reflects five percent of all requests, May 2017, Table 1, available at https://
news.release/ocwage.t01.htm. Thus, the estimated net of the estimated one percent of all requests that www.bls.gov/news.release/ocwage.t01.htm (Office
setup and maintenance cost for an internet system might initially be made by mail. That is, 0.05 × and administrative support workers, general).
is $598,957 per year (8,320 hours × $71.99/hour). (38,000,000 ¥ 380,000) = 1,881,000. 8 See supra notes 3 and 4.

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Document Created: 2018-08-25 01:49:49
Document Modified: 2018-08-25 01:49:49

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		Comments must be received on or before October 26, 2018.
Contact		Requests for copies of the collection
FR Citation		83 FR 43683