Free Annual File Disclosures Amendments to Rule to Prevent Deceptive Marketing of Credit Reports and to Ensure Access to Free Annual File Disclosures

Résumé

Section 205 of the Credit CARD Act of 2009 requires the Federal Trade Commission ("FTC" or "Commission") to issue a rule by February 22, 2010, to prevent deceptive marketing of "free credit reports."To that end, the Commission proposes, and seeks comment on, amendments to the Commission's Free Annual File Disclosures Rule, 16 CFR Part 610. The proposed amendments would require certain advertisements for "free credit reports" to include prominent disclosures designed to prevent consumers from confusing these "free" offers with the federally mandated free annual file disclosures available through the single centralized source. In addition, the Commission proposes amendments to delay advertisements for products and services through the centralized source until after the consumer receives his or her free annual file disclosure, and to prohibit other practices that may interfere with the free file disclosure process. Finally, the Commission proposes certain technical amendments to the Rule.