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Affiliate Marketing Rule

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Ministry of Agency Federal Transactions Committee CFR 16 CFR 680 Document Quoted 86 FR 51609 Document number 2021-19826 Document type Rules page 51609-51611 (page 3) Published 09/16/2021 Rin 338

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Ministry of Agency Federal Transactions Committee CFR 16 CFR 680 Document Quoted 86 FR 51609 Document number 2021-19826 Document type Rules page 51609-51611 (page 3) Published 09/16/2021 Rin 338

Published content s-Details of documents Published conten t-document date Production date October 18, 2021 This rule will come into effect on October 18, 2021. Published conten t-document date Reinforced content-Table of contents

• document
• Measures
• overview
• date
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• Additional Information
• Ι. Background
• Α. Affiliate marketing rules
• B. Dod Frank Law
• II. Review regulations on affiliate marketing rules
• III. Overview of the final rule
• IV. Paper work reduction method
• V. Regulation Flexibility Law
• Α. Necessity and purpose of final rules
• Important matters raised in public comments on β. IRFA
• Γ. Estimate for smal l-scale businesses applied to the final rule
• D. Prediction of reports, records, and other compliance requirements, including specialized skills necessary for the classification of small businesses and compliance
• Ε. If there is a serious financial impact on small businesses, explanations of measures taken to minimize them (including alternative measures)
• VI. Other issues
• 16 CFR PART 680 target list
• Part 680-Cooperative marketing
• footnote

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Federal Trade Commission

1. 16 CFR part 680
2. Rin 3084-AB63

AGENCY:

Federal Transactions Committee

ACTION:

SUMMARY:

The Federal Transactions Committee ("FTC" or "Committee") is a final rule to revise the affiliate marketing rules to respond to the change of the Fair Credit Reporting Law ("FCRA") by the Dodd-Frank method. ") Is issued.

DATES:

This rule comes into effect on October 18, 2021.

FOR FURTHER INFORMATION CONTACT:

Federal Transactions Committee Consumer Protection Bureau Privacy Identity Protection Department David Linkcam (202-326-2773) 600 PENNSYLVANIA AVENUE NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Affiliate Marketing Rule

The Fair and Accurate Credit Transactions Act of 2003 (the "FACT Act") was signed into law on December 4, 2003. Public Law 108-159, 117 Stat. Section 214 of the FACT Act added a new section 624 to the FCRA, which gives consumers the right to restrict an individual from soliciting using certain information obtained from an affiliate. Section 624 generally provides that if an individual receives certain consumer qualification information from an affiliate, the individual may not use that information to solicit the consumer for goods or services unless the individual provides notice to the consumer and an opportunity (in a simple manner) to opt out of the use of the information, and the consumer is not exempt from liability. The Act also provides, for example, that Section 624 does not apply to a person who uses qualification information to: (1) solicit consumers with whom they have an existing business relationship; (2) to provide services to other affiliates under certain circumstances; (3) to respond to communications initiated by the consumer; and (4) to send invitations authorized or requested by the consumer. This is different from the affiliate sharing opt-out under the FCRA (15 U. S. C. 1681a(d)(2)(A)(iii)) and the unaffiliated third party sharing opt-out under t. S. C. 1681a(d)(2)(A)(iii).

On October 30, 2007, the Commission issued implementing regulations for Section 624 of the Affiliate Marketing Rule (16 CFR Part 680). [1]

B. Dodd-Frank Act

The Dodd-Frank Consumer Reform and Protection Act (the "Dodd-Frank Act") was signed into law in 2010.[2] The Dodd-Frank Act significantly changed the federal legal framework for financial services providers. Among other things, the Dodd-Frank Act transferred the Commission's rulemaking authority under parts of the FCRA to the Consumer Financial Protection Bureau (the "CFPB"). [As a result, in 2012, the Commission removed several FCRA rules that had been superseded by rules issued by the CFPB.[4] The FTC retained rulemaking authority for other rules issued under the FCRA to the extent they apply to motor vehicle dealers primarily engaged in the sale and service of motor vehicles, the leasing and service of motor vehicles, or both ("motor vehicle dealers") as described in section 1029(a) of the Dodd-Frank Act[5].[6] Rules for which the FTC retains rulemaking authority include the affiliate marketing rules, which currently apply only to motor vehicle dealers. [7] Businesses that are not automobile dealers are subject to Subpart C of CFPB Regulation V, which is substantially similar to the Commission's rule. [8]

II. Regulatory Review of the Affiliate Marketing Rule

On September 22, 2020, the Commission requested comment on the Affiliate Marketing Rule as part of its periodic review of rules and guidance. [9] The Commission requested information on the costs and benefits of the rule and the regulatory and economic impacts. In addition, the Commission proposed amendments to the rule to limit its scope to automobile dealers, which are excluded from the CFPB's jurisdiction as described in the Dodd-Frank Act. [10] The Commission did not comment.

III. Overview of Final Rule

The Commission issued the Affiliate Marketing Rule at a time when it had rulemaking authority over a broader group. The Dodd-Frank Act did not change the Commission's enforcement authority over the Affiliate Marketing Rule, but it did limit the Commission's rulemaking authority over the rule, which now only covers automobile dealers. The Dodd-Frank Act amendments require technical amendments to the affiliate marketing rules to align them with the amended FCRA provisions. Accordingly, the Commission is amending the rules to appropriately reflect the scope of the affiliate marketing rules.

The amendments to § 680. 1(b) limit the affiliate marketing rule to entities exempt from CFPB jurisdiction as described in the Dodd-Frank Act. [11] This is accomplished by replacing the broad term “person” with “auto dealer” as defined in amended § 680. 3.

The amendments to § 680. 3 add a definition of “auto dealer” to define auto dealers as entities exempt from CFPB jurisdiction as described in the Dodd-Frank Act. [12]

The amendments do not change the substantive provisions of the rule or the examples in the rule, even if those provisions and examples relate to entities that are subject to CFPB rules rather than Commission rules. The primary reason for retaining those provisions and examples is that the rule addresses the relationship between covered auto dealers and their subsidiaries that may not be auto dealers. The obligations and exclusions set forth in the rule are inextricably linked to consumer relationships and conduct with respect to all affiliates, including both automobile dealers and non-automobile dealers. For the rule to be meaningfully applicable, it must address both types of entities, even those to which the rule does not directly apply, because the Commission's affiliate marketing rule and the CFPB's rule are substantially similar and impose the same obligations and exemptions with respect to covered entities.

IV. Paperwork Reduction Act

The Affiliate Marketing Rule contains information collection requirements defined in 5 CFR 1320. 3(c), which provides definitions under the Office of Management and Budget (OMB) regulations implementing the Paperwork Reduction Act (PRA) (44 U. S. C. 3501 et seq.). OMB approved the rule's existing information collection requirements through February 28, 2023 (OMB Control No. 3084-0131). Under the current clearance, the FTC allocates to itself the estimated burden for all automobile dealers and shares the remaining PRA estimated burden equally with the CFPB for other persons over which both agencies have enforcement authority.

The final rule is revised 16 CFR Part 680. This amendment does not fix or add information gathering requirements previously approved by OMB. This amendment does not make substantial changes to the rules, except that the rules are limited to car dealers. The clarification of the rules by OMB has already reflected this range. Therefore, the European Commission believes that this amendment does not change the "collection of information" defined by the PRA to substantial or serious.

V. Regulatory Flexibility Act

The regulatory flexibility law ("RFA") was amended by the Foreign and Medical Law in the 1996 SME Execution Law, to provide an initial regulation flexibility analysis ("IRFA") to regulatory authorities. It is calling for proof that the rules do not have a significant impact on a considerable number of small businesses. [13] The European Commission has published an initial regulation flexibility analysis to investigate the proposal's impact on small businesses. [14] The European Commission has not received an answer comment.

The European Commission believes that these amendments have only a small impact on small businesses. This is because this amendment is intended for clarification and does not increase the burden on any car dealer. Therefore, small businesses that comply with the current law do not need to take additional measures under the final rules. Therefore, the European Commission has found that the revision of Partner Marketing Rule does not have a significant economic impact on a considerable number of small businesses.

The European Commission proves that the final rules do not have a significant impact on a considerable number of small businesses based on the RFA, and notify the SMEs here, but the European Commission, nevertheless, the European Commission. In order to confirm that the impact of the rules is completely dealt with, it was appropriate to publish the final regulatory flexibility analysis ("FRFA"). Therefore, the European Commission created the following analysis:

A. Need for and Objectives of the Final Rule

In order to respond to changes in the rules of the European Commission by the Dodd Frank Law, this amendment clarifies that this rule is applied only to car dealers. < SPAN> The final rule is to amend 16 CFR Part 680. This amendment does not fix or add information gathering requirements previously approved by OMB. This amendment does not make substantial changes to the rules, except that the rules are limited to car dealers. The clarification of the rules by OMB has already reflected this range. Therefore, the European Commission believes that this amendment does not change the "collection of information" defined by the PRA to substantial or serious.

B. Significant Issues Raised in Public Comments in Response to the IRFA

The regulatory flexibility law ("RFA") was amended by the Foreign and Medical Law in the 1996 SME Execution Law, to provide an initial regulation flexibility analysis ("IRFA") to regulatory authorities. It is calling for proof that the rules do not have a significant impact on a considerable number of small businesses. [13] The European Commission has published an initial regulation flexibility analysis to investigate the proposal's impact on small businesses. [14] The European Commission has not received an answer comment.

C. Estimate of Number of Small Entities to Which the Final Rule Will Apply

The European Commission believes that these amendments have only a small impact on small businesses. This is because this amendment is intended for clarification and does not increase the burden on any car dealer. Therefore, small businesses that comply with the current law do not need to take additional measures under the final rules. Therefore, the European Commission has found that the revision of Partner Marketing Rule does not have a significant economic impact on a considerable number of small businesses.

D. Projected Reporting, Recordkeeping, and Other Compliance Requirements, Including Classes of Covered Small Entities and Professional Skills Needed To Comply

The European Commission proves that the final rules do not have a significant impact on a considerable number of small businesses based on the RFA, and notify the SMEs here, but the European Commission, nevertheless, the European Commission. In order to confirm that the impact of the rules is completely dealt with, it was appropriate to publish the final regulatory flexibility analysis ("FRFA"). Therefore, the European Commission created the following analysis:

E. Description of Steps Taken To Minimize Significant Economic Impact, if any, on Small Entities, Including Alternatives

In order to respond to changes in the rules of the European Commission by the Dodd Frank Law, this amendment clarifies that this rule is applied only to car dealers. The final rule is revised 16 CFR Part 680. This amendment does not fix or add information gathering requirements previously approved by OMB. This amendment does not make substantial changes to the rules, except that the rules are limited to car dealers. The clarification of the rules by OMB has already reflected this range. Therefore, the European Commission believes that this amendment does not change the "collection of information" defined by the PRA to substantial or serious.

VI. Other Matters

The regulatory flexibility law ("RFA") was amended by the Foreign and Medical Law in the 1996 SME Execution Law, to provide an initial regulation flexibility analysis ("IRFA") to regulatory authorities. It is calling for proof that the rules do not have a significant impact on a considerable number of small businesses. [13] The European Commission has published an initial regulation flexibility analysis to investigate the proposal's impact on small businesses. [14] The European Commission has not received an answer comment.

List of Subjects in 16 CFR Part 680

• The European Commission believes that these amendments have only a small impact on small businesses. This is because this amendment is intended for clarification and does not increase the burden on any car dealer. Therefore, small businesses that comply with the current law do not need to take additional measures under the final rules. Therefore, the European Commission has found that the revision of Partner Marketing Rule does not have a significant economic impact on a considerable number of small businesses.
• The European Commission proves that the final rules do not have a significant impact on a considerable number of small businesses based on the RFA, and notify the SMEs here, but the European Commission, nevertheless, the European Commission. In order to confirm that the impact of the rules is completely dealt with, it was appropriate to publish the final regulatory flexibility analysis ("FRFA"). Therefore, the European Commission created the following analysis:
• In order to respond to changes in the rules of the European Commission by the Dodd Frank Law, this amendment clarifies that this rule is applied only to car dealers.

The European Commission has not received opinions on the burden of small businesses. In addition, the European Commission has not received opinions submitted by the President of the SME (SBA).

PART 680—AFFILIATE MARKETING

The European Commission expects many target car dealers to be small businesses under the current SBA size standards. However, as described in IRFA, it is not easy to determine an accurate estimate of the number of small businesses. No opinion mentions this issue. Nevertheless, as described above, this amendment does not forcibly burden the target small business.

This amendment does not impose new reports, records, or other compliance requirements.

The European Commission has not proposed a specific small business exemption or other important alternatives, but the reason is that this amendment does not increase the number of reporting requirements and new requirements and compliance costs. This is because it is not imposed.

In accordance with the Federal Congress Review Law (5 U. S. C. 801 et Seq.), The Information and Regulation Bureau defines this rule in 5 U. S. C. 804 (2).

Consumer protection

credit

Commercial practice

For the above reasons, the Federal Trade Commission will amend the Federal Regulations Collection 1680 as follows:

1. Fix authorities quotes for Part 680 as follows:

Footnotes

2. In Article 680, Paragraph 1, the section (b) is corrected as follows:

Purpose and range.