FTC ISSUES FINAL RULE ON FCRA PRESCREEN OPT-OUT NOTICES
The Federal Trade Commission (FTC) has issued a final rule implementing Section 213(a) of the Fair and Accurate Credit Transactions Act of 2003, which directs the FTC to adopt regulations to ensure that the notice to consumers required by the Fair Credit Reporting Act regarding the right to opt out of prescreened solicitations for credit or insurance is presented in a format, manner and type size that is simple and easy to understand.
The final rule is similar to the rule proposed in September 2004 and requires a “layered” notice consisting of (i) an initial, prominent statement that provides basic opt-out information and (ii) a separate, longer explanation that offers further details. The final rule also establishes certain baseline formatting and language requirements for notices and includes model notices in English and Spanish.
The rule is effective August 1, 2005.