"Enhanced" FCRA Opt-Out

FACTA includes a provision to enhance the opt-out disclosures provided under the FCRA. The act sets clarity standards - "simple and easy to understand" - for the opt-out disclosure and directs the FTC to issue a rule that sets standards for the notice, including type-size and format. FTC has one year to issue a final rule.

In addition to the rulemaking with respect to opt-out notices, FACTA directs the FTC to conduct a public awareness campaign, using its website.

Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 8, No. 15, 1/04