FTC EXTENDS COMMENT PERIOD ON SPAM REGULATION UNTIL APRIL 20, 2004
The Federal Trade Commission (FTC) has extended the deadline for submitting comments to its March 11, 2004 Advance Notice of Proposed Rulemaking and Request for Public Comment on regulations regarding unsolicited commercial e-mail to be issued under the CAN-SPAM Act (specifying criteria to be used in determining the “primary purpose” of an UCE message). That notice set deadlines of (i) April 12, 2004 for responsive comments and (ii) March 31, 2004 for comments regarding the nationwide “Do Not E-Mail” Registry report. The FTC received a request from several trade associations (including the Direct Marketing Association, the American Association of Advertising Agencies, the Association of National Advertisers, the Consumer Bankers Association and the Magazine Publishers of America) seeking extension of the April 12 deadline until April 20, 2004 because of the religious holidays and the need to consult more fully with their memberships to prepare complete comments. The Commission unanimously voted to extend the deadline. The FTC did not receive any formal request to extend the “Do Not E-Mail” Registry report comment period, so that comment period is now closed.
FRB PROPOSES FACTA MODEL NOTICE OF NEGATIVE INFORMATION REPORTING
The Federal Reserve Board (FRB) has issued proposed amendments to Regulation V, which implements the Fair Credit Reporting Act (FCRA), regarding a model notice of negative information reporting for use by financial institutions that furnish negative information to consumer reporting agencies.
Section 217 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which substantially amends the FCRA, requires a financial institution (as defined in the Gramm-Leach-Bliley Act) that (i) extends credit and regularly and in the ordinary course of business furnishes information to a nationwide consumer reporting agency and (ii) furnishes information to such an agency concerning a customer’s delinquencies, late payments, insolvency or other default to provide a clear and conspicuous written notice of such action to the customer prior to or no later than 30 days after furnishing the negative information. Section 217 also requires the FRB to issue in final form by June 4, 2004, a brief (not to exceed 30 words) model disclosure that financial institutions may (but are not required to) use to comply with the notice requirement.
The FRB requests comment on the proposed rule by May 9, 2004. If you would like additional information or assistance in drafting comments, please do not hesitate to contact us.