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®: CRE Regulatory Action of the Week

Will The FTC Set A Precedent Accepting Discrimination?
Active and passive discrimination by the Federal Trade Commission in obtaining information used in developing regulations is the focus of a Data Quality appeal by CRE. A consumer survey sponsored by the Commission: 1) rejected all potential respondents 74 years of age or older; and 2) failed to use standard procedures to guard against ethnic and socio-economic bias when using a sampling technique (mall intercept) that requires such measures.

The FTC survey provided "probative evidence" for their decision selecting a new notice informing consumers of their right to opt-out of receiving prescreened offers of credit and insurance. CRE asked "whether the FTC will set a precedent under the Data Quality Act demonstrating that bias and discrimination in any phase of an information collection and regulatory development process is acceptable." A decision is expected by mid-December.

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