FEDERAL BANKING AGENCIES SEEK COMMENT ON PROPOSED REGULATIONS TO LIMIT SOLICITATIONS FROM AFFILIATES
The federal banking agencies (including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration(NCUA), the Office of the Comptroller of the Currency and the Office of Thrift Supervision) seek public comment on proposed regulations implementing the affiliate marketing provisions in Section 214 of the Fair and Accurate Credit Transactions Act. Section 214 (i) adds a new section to the Fair Credit Reporting Act regarding affiliate sharing (see 15 U.S.C. § 1671s-3) and (ii) requires the federal banking agencies, the NCUA, the Securities and Exchange Commission and the Federal Trade Commission (FTC) to make rules implementing Section 214 in coordination with one another. The FTC issued its notice of proposed rulemaking and request for comments on the affiliate marketing rule on June 15, 2004. The federal banking agencies’ proposed regulations, which are substantially similar to the FTC’s proposed regulations, would generally prohibit a company from using certain information received from an affiliate to market products or services to a consumer unless the consumer first has been given notice and an opportunity to opt out of receiving such solicitations.
Comments must be received within 30 days of publication in the Federal Register, which is expected shortly. Please do not hesitate to contact us for more information about the proposed regulations or assistance in drafting comment letters.