The FTC issued a final rule that requires certain advertisements for “free credit reports” to include prominent disclosures to prevent confusion with federally-mandated free annual credit reports. The rule also prohibits credit reporting agencies from advertising other products or services to consumers seeking free credit reports until a consumer receives the free credit report, and further prohibits other practices that may interfere with the free credit report process. The rule becomes effective April 1, 2010, except for certain disclosure requirements, which take effect September 1, 2010. Click here for a copy of the rule.

The FTC announced that it intends to request public comment on the Preservation of Consumers’ Claims and Defenses Rule, also known as the FTC Holder Rule. Under the rule, if a seller provides financing for the customer or refers the customer to a lender, the loan contract must include a notice that allows the consumer to assert claims or defenses against the lender or subsequent holder of the contract. The FTC specifically requests comment on (1) the economic impact of and continuing need for the rule, (2) possible conflict between the rule and other laws or regulations, and (3) the effect of any technological, economic, or other industry changes on the rule. Click here for a copy of the notice.