The Federal Trade Commission (“FTC”) is seeking comment on proposed changes that would clarify that five FCRA rules promulgated by the FTC apply only to motor vehicle dealers. The FTC’s proposed changes would bring several rules implementing parts of the FCRA in line with the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). The Dodd-Frank Act narrowed the FTC’s FCRA rulemaking authority related to parts of the FCRA by transferring rulemaking authority to the Consumer Financial Protection Bureau. The Notices of Proposed Rule Making (“NPRMs”) propose changes to the following rules:
Address Discrepancy Rule - outlines the obligations of users of consumer reports when they receive a notice of address discrepancy from a nationwide consumer reporting agency (“CRA”);
Affiliate Marketing Rule - gives consumers the right to restrict a person from using certain information obtained from an affiliate to make solicitations to the consumer;
Furnisher Rule - requires entities that furnish information to CRAs to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers provided to a CRA;
Pre-screen Opt-Out Notice Rule - outlines requirements for those who use consumer report information to make unsolicited credit or insurance offers to consumers; and
Risk-Based Pricing Rule – requires those who use information from a consumer report to offer less favorable terms to consumers to provide them with a notice about the use of such data.
The FTC will also be seeking comment on the effectiveness of these five rules, which includes (i) whether there is continuing need for specific provisions of each rule; (ii) the benefits each rule has provided to consumers; (iii) what modifications, if any should be made to each rule to benefit consumers and businesses; and (iv) what modifications, if any, should be made to each rule to account for changes in relevant technology or economic conditions. The proposed changes will be published in five separate NPRMs in the Federal Register. Those seeking to comment will have 75 days from the date the notices are published to submit comments.