[Federal Register Volume 64, Number 108 (Monday, June 7, 1999)]
[Notices]
[Pages 30328-30329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14247]


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FEDERAL TRADE COMMISSION

[File No. 9823525]


Federated Department Stores, Inc.; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before August 6, 1999.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159,600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Randall Brook, Seattle Regional 
Office, Federal Trade Commission, 915 Second Avenue, Suite 2896, 
Seattle, Wa. 98174, (206) (220-4487.

SUPPLEMENTARY INFORMATION: Purusant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 2.34 of 
the Commission's Rules of Practice, 16 CFR 2.34, notice is hereby given 
that the above-captioned consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of sixty (60) days. The following Analysis to Aid Public 
Comments describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for May 28th, 1999), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public 
Reference Room, Room H-130, 600 Pennsylvania Avenue, N.W., Washington, 
D.C. 20580, either in person or by calling (202) 326-3627.
    Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159,600 Pennsylvania Avenue, N.W., 
Washington, D.C. 20580. Two paper copies of each comment should be 
filed, and should be accompanied, if possible, by a 3\1/2\ inch 
diskette containing an electronic copy of the comment. Such comments or 
views will be considered by the Commission and will be available for 
inspection and copying at its principal office in accordance with 
Section 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR 
4.9(b)(6)(ii).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a 
proposed consent order from Federated Department Stores, Inc. 
(``Federated''). Proposed respondent Federated conducts relevant 
business through, among other affiliates or subsidiaries, FDS National 
Bank, The Bon, Inc., Bloomingdales, Inc., Burdines, Inc., Rich's 
Department Stores, Inc., Macy's East, Inc., Macy's West, Inc., and 
Stern's Department Stores, Inc.
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement and take other appropriate action or make 
final the agreement's proposed order.
    The Commission's complaint alleges several unfair or deceptive acts 
or practices related to Federated's policy of inducing consumers who 
have filed for bankruptcy protection to sign agreements reaffirming 
debts owed to Federated prior to the filing of the bankruptcy petition. 
The complaint charges that Federated: falsely represented to consumers 
that signed reaffirmation agreements would be filed with the bankruptcy 
courts, as required by the United States Bankruptcy Code; falsely 
represented to consumers that debts associated with unfiled 
reaffirmation agreements, or agreements that were filed but not 
approved by the bankruptcy courts, were legally binding on the 
consumers; and unfairly collected debts that it was not permitted by 
law to collect.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent Federated from engaging in 
similar acts in the future. The proposed consent order preserves the 
Commission's right

[[Page 30329]]

to seek consumer redress if the Commission determines that redress to 
consumers provided through related legal actions by state attorneys 
general and private parties is not adequate.
    Part I of the proposed order prohibits Federated from 
misrepresenting to consumers who have filed petitions for bankruptcy 
protection under the United States Bankruptcy Code that (A) 
reaffirmation agreements will be filed in bankruptcy court; or (B) any 
reaffirmation agreement is legally binding on the consumer. Part I.C of 
the proposed order prohibits Federated from collecting any debt 
(including any interest, fee, charge, or expense incidental to the 
principal obligation) that has been legally discharged in bankruptcy 
proceedings and that Federated is not permitted by law to collect. Part 
II of the proposed order prohibits Federated from making any 
misrepresentation in the collection of any debt subject to a pending 
bankruptcy proceeding.
    Part III of the proposed order contains record keeping requirements 
for materials that demonstrate the compliance of Federated with the 
proposed order. Part IV requires distribution of a copy of the consent 
decree to certain current and future personnel who have 
responsibilities related to collecting debts subject to bankruptcy 
proceedings.
    Part V provides for notification to the Commission of any change in 
the respondent affecting compliance obligations arising under the 
order. Part VI requires the filing of compliance report(s). Finally, 
Part VII provides for the termination of the order after twenty years 
under certain circumstances.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-14247 Filed 6-4-99; 8:45 am]
BILLING CODE 6750-01-M