Do you think the so-called free credit reports ads on TV are deceiving? Do you have some other problem with the way they market these products (all of which require signing up for monthly services)? If so, you can tell the FTC about it. They are soliciting public comments about a proposed changed to the free credit report rules, and you can learn about it through the two news releases below:

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News Release – 11/20/09
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FTC Extends Public Comment Period in Free Credit Report Rule Proceeding To December 7, 2009

The Commission today announced an extension of the public comment period for the recently issued proposal to amend the “Free Credit Report Rule” (formally the Free Annual File Disclosures Rule). The Commission posted the proposed rule on the FTC’s Web site on October 7, 2009, and stated that public comments were due no later than November 30, 2009. In response to a recent request that the comment period be extended, the Commission has determined to extend the comment period until December 7, 2009. The Federal Register notice, which is available now on the FTC’s Web site as a link to this press release, provides information on how, and in what form, comments should be submitted.

The Commission vote approving the issuance of Federal Register notice announcing the extension of the public comment period was 4-0.

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

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News Release – 10/7/09
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FTC Seeks Comments on Proposals to Amend Free Credit Report Rule

The Federal Trade Commission is seeking public comment on proposed amendments to the Free Annual File Disclosures Rule, also known as the “Free Credit Report Rule.” The proposed amendments would implement a new law designed to prevent consumer confusion in advertisements for “free credit reports.” The amendments also would address certain practices that may interfere with a consumers’ ability to obtain the credit report that credit reporting agencies must provide for free under federal law.

The Credit CARD Act of 2009 requires the Commission to issue a rule by February 22, 2010, to prevent deceptive marketing of “free credit reports.” Specifically, the Act requires that certain advertisements for “free credit reports” include prominent disclosures designed to prevent consumers from confusing these “free” offers with the federally mandated free annual credit reports available through the “centralized source,” which is AnnualCreditReport.com, or 877-322-8228.

To implement this directive, the Commission is proposing disclosures for television, radio, print, Internet, and other media in which “free credit report” advertising may occur, along with requirements to ensure that the disclosures are sufficiently prominent. For example, for any Internet site offering free credit reports, the Commission proposes a requirement that, before the consumer may obtain a credit report from that Web site, such site must first display a separate landing page with the required disclosure: “This is not the free credit report provided for by Federal law. To get your free report, visit www.AnnualCreditReport.com or call 877-322-8228.”

In addition, the Commission is proposing to amend the Free Annual File Disclosures Rule to restrict practices that may confuse or mislead consumers as they attempt to obtain their free credit reports through the centralized source. For example, consumers are subjected to substantial amounts of advertising from the nationwide consumer reporting agencies as they attempt to obtain their free annual credit reports. The Commission has received consumer complaints about promotions for products and services that confuse and frustrate consumers as they attempt to obtain their free annual credit reports. The Commission proposes to amend the Rule by delaying such advertising until after consumers obtain their free annual credit reports, and by requiring other measures.

The proposed rules can be found on the Commission’s Web site as a link to this press release. The proposal will soon be published in the Federal Register, and the comment period will end on November 30, 2009. The Commission vote authorizing the publication of the Federal Register notice was 4-0.

STAFF CONTACT:
Katherine Armstrong,
Bureau of Consumer Protection
202-326-2252

Related item:
The Truth About Free Credit Reports

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