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Federal Register / Vol. 86, No. 234 / Thursday, December 9, 2021 / Rules and Regulations
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FAST Act statutory exceptions to the rules annual notice requirement have been previously reviewed and approved by OMB in accordance with the PRA.43
Under the existing clearance, the FTC
has attributed to itself the estimated burden regarding all motor vehicle dealers and shares equally the remaining estimated PRA burden with the CFPB for other types of financial institutions for which both agencies have enforcement authority regarding the GLBA Privacy Rule.44
The amendments do not modify or add to information collection requirements previously approved by OMB. First, the Commission anticipates the expansion of the definition of financial institution to include entities engaged in activities incidental to financial activities will have little to no effect. It is not clear any finders that are also motor vehicle dealers are not already covered by the rule through their activities as motor vehicle dealers.
Second, the removal of certain examples provided in the rule that are not applicable to motor vehicle dealers will have no impact on existing information collection requirements.
Therefore, the Commission does not believe the amendments substantially or materially modify any collections of information as defined by the PRA.
The Commission sought comment on whether there are any finders in existence that would be covered by the proposed rule and are not covered by the current rule. The Commission received no comments that suggested such entities exist.
IV. Regulatory Flexibility Act The Regulatory Flexibility Act RFA, as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, requires an agency to either provide an Initial Regulatory Flexibility Analysis IRFA with a proposed rule, or certify that the proposed rule will not have a significant impact on a substantial number of small entities.45 The Commission does not believe this amendment to the Privacy Rule has the threshold impact on small entities. First, most of the changes effectuate statutory changes from the Dodd-Frank Act and the FAST Act.
Second, the Commission does not expect the amendment to impose costs on small motor vehicle dealers because the amendments are primarily for 43 The
OMB Control Number is 30840121.
Notice, 82 FR 48081 Oct. 16, 2017
available at https www.federalregister.gov/
documents/2017/10/16/2017-22334/agencyinformation-collection-activities-submission-foromb-review-comment-request.
45 5 U.S.C. 603605.
44 PRA

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clarification purposes and should not result in any increased burden on any motor vehicle dealer. Thus, a small entity that complies with current law need not take any different or additional action under the final rule.
Accordingly, the Commission believes the rule will not have a significant economic impact on small entities. The final rule would add requirements only to motor vehicle dealers that function as finders and do not already engage in other financial activities that would cause them to be financial institutions under the rule. The Commission has not identified any such entities. Therefore, the Commission certifies the rule will not have a significant economic impact on a substantial number of small businesses.
In this document, the Commission adopts the amendments proposed in its NPRM with only minimal modifications. In its Initial Regulatory Flexibility Analysis IRFA, the Commission determined the proposed rule would not have a significant impact on small entities because there were no small businesses that were being subjected to new burdens as a result of the amendments. Although the Commission certifies under the RFA
that the rule will not have a significant impact on a substantial number of small entities, and hereby provides notice of that certification to the Small Business Administration, the Commission nonetheless has determined publishing a final regulatory flexibility analysis FRFA is appropriate to ensure the impact of the rule is fully addressed.
Therefore, the Commission has prepared the following analysis:
1. Need for and Objectives of the Final Rule To address the Dodd-Frank Act and FAST Act changes the amendments change the Privacy Rules scope and definition of financial institution;
change the annual notice requirement;
and remove certain examples provided in the rule that are not applicable to motor vehicle dealers. With this action, the Commission makes the current, narrow scope of the rule clearer.
Additionally, the modification of the definition of financial institution to cover motor vehicle dealers engaged in activities incidental to financial activities harmonizes the Privacy Rule with other agencies rules.
2. Significant Issues Raised in Public Comments in Response to the IRFA
The Commission did not receive any comments that addressed the burden on small entities. In addition, the Commission did not receive any
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comments filed by the Chief Counsel for Advocacy of the Small Business Administration SBA.
3. Estimate of Number of Small Entities To Which the Final Rule Will Apply The Commission anticipates many covered motor vehicle dealers may qualify as small businesses according to the applicable SBA size standards.46 As explained in the IRFA, however, determining a precise estimate of the number of small entitiesincluding newly covered entities under the modified definition of financial institutionis not readily feasible. No commenters addressed this issue.
Nonetheless, as discussed above, these amendments will not add any additional burdens on any covered small businesses.
4. Projected Reporting, Recordkeeping, and Other Compliance Requirements The amendments do not impose any new or substantively revised collections of information, as defined by the PRA.
5. Description of Steps Taken To Minimize Significant Economic Impact, if Any, on Small Entities, Including Alternatives The Commission did not propose any specific small entity exemption or other significant alternatives because the amendment is not expected to increase reporting requirements and will not impose any new requirements or compliance costs. The Commission anticipates the amendments will reduce the burden for many covered entities associated with the Privacy Rule annual notice. The amendments retain the flexibility already present in the existing rule, which allows notices to be provided in a variety of ways, including electronically in some circumstances.
As to the core requirements of the rule, they come from GLBA itself, as amended by the Dodd-Frank and the FAST Act. The statute prescribes the definition of financial institutions to be covered by the rule and sets forth the specific requirements, which the Commission cannot modify to ease burdens on small entities. Therefore, the Commission does not believe any 46 Table of Small Bus. Size Standards Matched to North American Indus. Classification System Codes, 13 CFR 121.201 available at: https
www.sba.gov/document/support--table-sizestandards, updated Aug. 19, 2019. For example, used car dealers are classified as NAICS 441120 and new car dealers as NAICS 441110. Under those standards, the SBA would classify as small businesses independent used car dealers having annual receipts of less than $27 million and new car dealers having fewer than 200 employees each.

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