SPST-0149 Renewal (2020) Final

Supporting Statement
Affiliate Marketing/Consumer Opt-Out Notices
(OMB No. 3064-0149)

Introduction
The Federal Deposit Insurance Corporation (FDIC) requests OMB approval to extend, without
change, the above-captioned collection of information for three years. This collection is
contained in an interagency rule implementing section 214 of the FACT Act, a 2003 amendment
to the Fair Credit Reporting Act. Section 214 generally provides that, if a person shares certain
information about a consumer with an affiliate, the affiliate may not use that information to make
or send solicitations to the consumer about its products or services, unless the consumer is given
notice and a reasonable opportunity to opt out of such use of the information and the consumer
does not opt out. Thus, the elements of this collection are: (1) disclosures to consumers of the
opportunity to opt-out of solicitations from affiliates, and (2) consumer responses to the opt-out
notices. The collection is scheduled to expire on November 30, 2020.
A. Justification
1. Circumstances that Make the Collection Necessary
Section 214 of the FACT Act requires the FDIC, the Board of Governors of the Federal Reserve
System (FRB), the Office of the Comptroller of the Currency (OCC), the Office of Thrift
Supervision (OTS), the National Credit Union Administration (NCUA), the Federal Trade
Commission (FTC), and the Securities and Exchange Commission (SEC), in consultation and
coordination with each other, to issue regulations in final form implementing section 214. The
FDIC complied with this provision of law by revising its regulations at 12 CFR 334; the
collection is contained in that regulation.
2. Use of the Information
Consumers will use the information in the disclosures to decide whether to opt out of their
institutions’ affiliate marketing practices. Respondent banks will use the opt-out notices to
manage their affiliate marketing practices appropriately.
3. Consideration of the Use of Improved Information Technology
Financial institutions and consumers are free to utilize any technology they wish to reduce the
burden associated with this collection.
4. Efforts to Identify Duplication
The information is not available from any other source.
5. Methods Used to Minimize Burden on Small Entities

The collection applies to all institutions with affiliates, regardless of size, and all consumers
associated with those institutions. However, in an effort to minimize the burden for financial
institutions, particularly small banks (i.e., those with assets of less than $250 million), the
Agencies, including FDIC, have published model disclosures and opt out notices that may be
used for this collection. In addition, the collection allows institutions to minimize disclosure
burden by incorporating the affiliate marketing notices into privacy notices that are already
required by Title V of the Gramm-Leach-Bliley Act (approved under OMB control number
3064-0136). Financial institutions also have the option of choosing not to engage in the sharing
of certain information with their affiliates for marketing purposes.
6. Consequences to the Federal program if the Collection were Conducted Less Frequently
Section 214 of the FACT Act requires that consumer opt-outs be effective for a minimum of five
years. Financial institutions have the option of adopting for themselves a less frequent disclosure
requirement by making consumer opt-outs effective for longer than the minimum five-year
period, or by making consumer opt-outs effective in perpetuity, unless revoked by the consumer.
7. Special Circumstances Necessitating Collection Inconsistent with 5 CFR Part 1320
None.
8. Efforts to Consult with Persons Outside the Agency
On September 4, 2020, the FDIC published a Federal Register notice seeking comment for a 60day period on renewal of the information collection (85 FR 55287). No comments were
received.
9. Payment to Respondents
There is no payment to respondents.
10. Assurance of Confidentiality
Financial institutions would treat these disclosure requirements with the same degree of
confidentiality as other disclosures of sensitive consumer information.
11. Justification for Questions of a Sensitive Nature
There are no questions of a sensitive nature.

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12. Burden Estimate
Table 1: Summary of Annual Burden and Internal Cost (OMB-3064-0149)
Estimated
Estimated
Information
Estimated
Estimated
Type of
Number of
Annual
Collection (IC)
Number of
Time per
Burden
Responses per
Burden
Description
Respondents Response
Respondent
(Hours)
ThirdImplementation
Party
1
18 hours
1
18
Disclosure
ThirdOngoing
Party
887
2 hours
1
1,774
Disclosure
ThirdConsumer OptParty
806,800
5 minutes
1
67,233
Out
Disclosure
Total Annual
73,335
Burden (Hours)
Source: FDIC
Table 2: Summary of Hourly Burden Cost Estimate for Group 1
Estimated Category of
Total Estimated
Weighted Hourly
Personnel Responsible for
Hourly
Estimated Weights
Wage
Complying with the PRA
Compensation
Burden
Compliance Officers 1
$66.43
10%
$6.64
IT Specialist 2
$91.05
5%
$4.55
3
Clerical
$32.99
85%
$28.04
$39.23
Weighted Average
Source: Bureau of Labor Statistics: "National Industry-Specific Occupational Employment and
Wage Estimates: Industry: Credit Intermediation and Related Activities (5221 And 5223 only)"
(May 2019), Employer Cost of Employee Compensation (March 2020), Consumer Price Index
(March 2020).
Table 3: Summary of Hourly Burden Cost Estimate for Group 2
Estimated Category of
Total Estimated
Estimated Total
Personnel Responsible for
Estimated
Hourly
Weighted Labor Cost
Complying with the PRA
Weights
Compensation
Component
Burden
Executives and Managers 4
$121.63
5%
$6.08
1

Occupation (SOC Code): Compliance Officers (131040).
Occupation (SOC Code): Computer and Mathematical Occupations (150000).
3
Occupation (SOC Code): Office and Administrative Support Occupations (430000).
2

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Lawyers 5
$149.39
Compliance Officer
$66.43
IT Specialists
$91.05
6
Financial Analysts
$78.32
Clerical
$32.99
Weighted Average
Source: Bureau of Labor Statistics.

20%
20%
15%
5%
15%

$29.88
$13.29
$13.66
$3.92
$4.95
$71.78

The total annual cost burden for this ICR was achieved by multiplying the annual estimated
burden hours reported in Table 1 by their respective weighted average hourly compensation
estimates reported in Tables 2 and 3. The total annual cost burden is estimated as follows:
(1,774 hours/year + 67,233 hours/year)*($39.23/hour) + (18 hours/year * $71.78/hour) =
$2,708,437
13. Capital/Start-up and Operation/Maintenance Costs
None.
14. Estimate of Annualized Cost to the Federal Government
None.
15. Reason for Change in Burden
There is no change in the method or substance of this information collection. The reduction in
respondents is a result of economic fluctuation. In particular, the number of respondents has
decreased while the hours per response remain the same.
16. Publication
The information will not be published.
17. Display of Expiration Date
No exception is requested.
18. Exceptions to Certification Statement
None.

4

Occupation (SOC Code): Management Occupations (110000).
Occupation (SOC Code): Legal Occupations (230000).
6
Occupation (SOC Code): Financial and Investment Analysts, Financial Risk Specialists, and Financial Specialists,
All Other (132098).
5

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B. Collections of Information Employing Statistical Methods
Not applicable.

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