16 CFR § 642.2 - Definitions.

---
identifier: "/us/cfr/t16/s642.2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "16 CFR § 642.2 - Definitions."
title_number: 16
title_name: "Commercial Practices"
section_number: "642.2"
section_name: "Definitions."
chapter_name: "FEDERAL TRADE COMMISSION"
subchapter_number: "F"
subchapter_name: "FAIR CREDIT REPORTING ACT"
part_number: "642"
part_name: "PRESCREEN OPT-OUT NOTICE"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Pub. L. 108-159, sec. 311; 15 U.S.C. 1681m(d); 12 U.S.C. 5519(d)."
regulatory_source: "70 FR 5032, Jan. 31, 2005, unless otherwise noted."
cfr_part: "642"
---


# 642.2 Definitions.

As used in this part:

(a) *Simple and easy to understand* means:

(1) A layered format as described in § 642.3 of this part;

(2) Plain language designed to be understood by ordinary consumers; and

(3) Use of clear and concise sentences, paragraphs, and sections.

(i) *Examples.* For purposes of this part, examples of factors to be considered in determining whether a statement is in plain language and uses clear and concise sentences, paragraphs, and sections include:

(A) Use of short explanatory sentences;

(B) Use of definite, concrete, everyday words;

(C) Use of active voice;

(D) Avoidance of multiple negatives;

(E) Avoidance of legal and technical business terminology;

(F) Avoidance of explanations that are imprecise and reasonably subject to different interpretations; and

(G) Use of language that is not misleading.

(ii) [Reserved]

(b) *Motor vehicle dealer* means any person excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519.

(c) *Principal promotional document* means the document designed to be seen first by the consumer, such as the cover letter.

[70 FR 5032, Jan. 31, 2005, as amended at 86 FR 50850, Sept. 13, 2021]