[Federal Register Volume 67, Number 197 (Thursday, October 10, 2002)]
[Notices]
[Pages 63099-63100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25757]


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FEDERAL TRADE COMMISSION

[File No. 022 3005]


The National Research Center for College and University 
Admissions, Inc., and Don M. Munce; and American Student List, LLC; 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreements.

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SUMMARY: The consent agreements in the two matters settle 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 both consent agreements and the terms of the 
consent orders--embodied in the consent agreements--that would settle 
these allegations.

DATES: Comments must be received on or before October 31, 2002.

ADDRESSES: Comments filed in paper form should be directed to: FTC/
Office of the Secretary, Room 159-H, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580. Comments filed in electronic form should be 
directed to: [email protected], as prescribed below.

FOR FURTHER INFORMATION CONTACT: Jessica Rich or Laura Mazzarella, FTC, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580, (202) 326-2148.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and section 2.34 
of the Commission's Rules of Practice, 16 CFR 2.34, notice is hereby 
given that the above-captioned consent agreements containing consent 
orders to cease and desist, having have been field with the accepted, 
subject to final approval, by the Commission, have been placed on the 
public record for a period of thirty (30) days. The following Analysis 
to Aid Public Comment describes the terms of the consent agreements, 
and the allegations in the complaint. An electronic copy of the full 
text of the consent agreements packages can be obtained from the FTC 
Home Page (for October 2, 2002), on the World Wide Web, at ``http://
www.ftc.gov/os/2002/10index.htm.'' A paper copy can be obtained from 
the FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, 
NW., Washington, DC 20580, either in person or by calling (202) 326-
2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. Comments filed in paper form should 
be directed to: FTC/Office of the Secretary, Room 158-H, 600 
Pennsylvania Avenue, NW., Washington, DC 20580. If a comment contains 
nonpublic information, it must be filed in paper form, and the first 
page of the document must be clearly labeled ``confidential.'' Comments 
that do not contain any nonpublic information may instead be filed in 
electronic form (in ASCII format, WordPerfect, or Microsoft Word) as 
part of our as an attachment to email messages directed to the 
following email box: [email protected]. Such

[[Page 63100]]

comments 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 Orders To Aid Public Comment

    The Federal Trade Commission has accepted agreements, subject to 
final approval, to (1) a proposed consent order from the National 
Research Center for College and University Admissions, Inc. 
(``NRCCUA'') and its officer Don M. Munce (``Munce''), and (2) a 
proposed consent order from American Student List, LLC (``ASL''). The 
proposed orders are substantively identical. NRCCUA is a student survey 
company that supplies student data to colleges and universities and 
other entities for recruitment and marketing purposes. ASL is a 
commercial list broker that supplies names for youth marketing 
campaigns.
    The proposed consent orders have been placed on the public record 
for thirty (30) days for receipt of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) days, the Commission will again review the 
agreements and the comments received and will decide whether it should 
withdraw from the agreements and take other appropriate action or make 
final the agreements' proposed orders.
    This matter concerns representations made about how detailed, 
personal information collected from high school students through a 
survey would be used, and how the survey is funded. The proposed 
respondents distribute a survey to high school teachers and guidance 
counselors with the request that they have their students complete the 
survey. The survey collects from students personal information 
including name, address, age, race, religious affiliation, and 
academic, career, and athletic interests. NRCCUA and Munce then Market 
personal information collected through the survey primarily to colleges 
and universities, which use the information to target high school 
students for recruitment purposes. NRCCUA also provides survey 
information to ASL. ASL uses survey information to create lists of 
college-bound students that it sells to commercial entities for use in 
marketing. Such entities include, but are not limited to, consumer 
products manufacturers, credit card companies, direct marketers, list 
brokers, database marketing companies, and advertising agencies.
    The Commission's complaint charges that the proposed respondents 
falsely represented that information collection from high school 
students through the survey is shared only with colleges, universities, 
and other entities providing education-related services when, in fact, 
such information is also shared with commercial entities for marketing 
purposes. The complaint also alleges that the proposed respondents 
falsely represented that the survey is funded solely by educational 
institutions when, in fact, the survey also receives substantial 
funding from ASL, a commercial entity.
    Part I of the consent orders prohibits the proposed respondents, in 
connection with the collection of personally identifiable information 
from an individual, from misrepresenting (1) how such information is 
collected or will be used or disclosed, or (2) how the collection of 
such information is funded. Part II of the orders prohibits the 
proposed respondents, in connection with the collection of personally 
identifiable information from students for any ``noneducational-related 
marketing purpose,'' from using or disclosing such information unless 
they disclose (1) the existence and nature of such noneducational-
related marketing purpose, and (2) the types or categories of any 
entities to which the information will be disclosed.
    The proposed orders define ``noneducational-related marketing 
purpose'' to mean for the purpose of marketing products or services, or 
selling personally identifiable information from or about an individual 
for use in marketing products or services to individuals. The 
definition specifically excludes the use of personal information in 
connection with certain activities determined to be ``educational 
products or services'' under the recently enacted No Child Left Behind 
Act, namely (a) college or postsecondary education recruitment, or 
military recruitment; (b) book clubs, magazines, and programs providing 
access to low-cost literary products; (c) curriculum and instructional 
materials used by elementary schools and secondary schools; (d) student 
recognition programs; or (e) any other activity expressly determined 
under the No Child Left Behind Act or its implementing regulations to 
be an ``educational product or service.'' In addition, the proposed 
orders provide that when determining whether any specific activity is 
an ``educational product or service,'' any official, written, publicly-
disseminated interpretation by the Department of Education regarding 
such activity shall be controlling.
    Part III of the orders prohibits the proposed respondents from 
using or disclosing for any noneducational-related marketing purpose 
any personally identifiable information that was collected through 
surveys distributed prior to the date of service of the orders. In 
addition to the educational purposes excepted from the definition of 
``noneducational-related marketing purpose,'' Part III also permits the 
proposed respondents to use such information for the purpose of (a) job 
recruitment, (b) the provision of student loans, or (c) the provision 
of standardized test preparation services.
    The remainder of the proposed orders contains standard requirements 
that the proposed respondents maintain copies of privacy statements and 
other documents relating to the collection, use or disclosure of 
personally identifiable information; distribute copies of the orders to 
certain company officials and employees; notify the Commission of any 
change in the corporation that may affect compliance obligations under 
the order, and file one or more reports detailing their compliance with 
the orders. Part VIII of the proposed orders is a provision whereby the 
orders, absent certain circumstances, terminate twenty years from the 
date of issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed orders, and is not intended to constitute an official 
interpretation of the agreements and proposed orders or to modify in 
any way their terms.
    These proposed orders, if issued in final form, will resolve the 
claims alleged in the complaint against the named respondents. It is 
not the Commission's intent that acceptance of these consent agreements 
and issuance of final decisions and orders will release any claims 
against any unnamed persons or entities associated with the conduct 
described in the complaint.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-25757 Filed 10-9-02; 8:45 am]
BILLING CODE 6750-01-M