The Red Flags Regulations (Under the Fair and Accurate Credit Transactions Act)

Forms and Documents

Document Name	Status
Red Flags '12 SS fin_mtd.pdf Supporting Statement A	2012-09-25

IC Document Collections

IC ID	Document Title	Status
190213	Address Discrepancies Rule: users of consumer rpts having to furnish to CRAs an address confirmation	Modified
190212	Address Discrepancies Rule: developing procedures to reconcile address discrepancies	Modified
190211	Card Issuers Rule: creating procedures to assess validity of address change	Modified
190210	Red Flags Rule: Low-risk entities avg. time to create & implement a streamlined written Program, prepare ann'l rpt, conduct training	Modified
190209	Red Flags Rule: High-risk entities avg time to create & implement a written Program, prepare ann'l rpt, conduct training	Modified

ICR Details

OMB Control No: 3084-0137	ICR Reference No: 201209-3084-001
Status: Historical Active	Previous ICR Reference No: 200908-3084-001
Agency/Subagency: FTC	Agency Tracking No:
Title: The Red Flags Regulations (Under the Fair and Accurate Credit Transactions Act)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/11/2012
	Date Received in OIRA: 09/25/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2015	36 Months From Approved	12/31/2012
Responses	1,953,002	0	3,665,160
Time Burden (Hours)	2,306,904	0	6,151,062
Cost Burden (Dollars)	0	0	0

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Abstract: The Rule implements sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 ("FACT Act"), as amended by the Red Flags Program Clarification Act of 2010. These rules enhance the ability of consumers to resolve problems caused by identity theft and increase the accuracy of consumer reports.

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Authorizing Statute(s): PL: Pub.L. 108 - 159 114, 315 Name of Law: Fair and Accurate Credit Transactions Act
  

Citations for New Statutory Requirements: US Code: 15 USC 1681m(e)(4) Name of Law: Red Flag Program Clarification Act of 2010
PL: Pub.L. 111 - 203 1088 Name of Law: Dodd Frank Wall Street Reform and Consumer Protection Act,

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	77 FR 40614	07/10/2012
30-day Notice:	Federal Register Citation:	Citation Date:
	77 FR 58994	09/25/2012
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 5

IC Title	Form No.	Form Name
Red Flags Rule: Low-risk entities avg. time to create & implement a streamlined written Program, prepare ann'l rpt, conduct training
Address Discrepancies Rule: users of consumer rpts having to furnish to CRAs an address confirmation
Red Flags Rule: High-risk entities avg time to create & implement a written Program, prepare ann'l rpt, conduct training
Card Issuers Rule: creating procedures to assess validity of address change
Address Discrepancies Rule: developing procedures to reconcile address discrepancies

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,953,002	3,665,160	-1,628,589	0	-83,569	0
Annual Time Burden (Hours)	2,306,904	6,151,062	-3,500,644	0	-343,514	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Regarding the rules under section 114 of the FACT Act (Red Flags and Card Issuers Rules), the FTC's reduced population estimates for its PRA burden calculations are largely attributable to two statutory changes since the last clearance. First, since the FTC's preceding clearance request of 2009, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, among other things, transferred rulemaking responsibility to and established enforcement authority for the CFTC and the SEC with respect to their respective jurisdiction. Entities within the jurisdiction of the CFTC and SEC include certain brokers, dealers, investment companies, investment advisors futures commission merchants, retail foreign exchange dealers, commodity trading advisors, commodity pool operators, introducing brokers, swap dealers, and major swap participants. The CFTC and SEC are now accounting for these entities in their Paperwork Reduction Act estimated burdens. Second, in 2010, President Obama signed the Clarification Act, which reduced the number of creditors covered by the Red Flags Rule. While the Clarification Act does not set forth specific industry exemptions, it provides that, to be covered by the Red Flags Rule, creditors must use consumer reports, furnish information to consumer reporting agencies, or advance funds to consumers. As a result, the number of creditors – especially small businesses and service providers – has been greatly reduced. For the Address Discrepancy Rule, under FACT Act section 315, however, FTC staff estimates that the number of covered entities (users of consumer reports) has increased from the approximately 1.66 million previously estimated to 1,757,385 users of consumer reports, based on more recent data.

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Annual Cost to Federal Government: $56,385

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 09/25/2012

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