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.
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,
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.
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:
(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;
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.
Red Flags '12 SS fin_mtd.pdf
Address Discrepancies Rule: users of consumer rpts having to furnish to CRAs an address confirmation