[Federal Register Volume 69, Number 174 (Thursday, September 9, 2004)]
[Notices]
[Pages 54667-54668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20405]


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FEDERAL TRADE COMMISSION

[File No. 042 3016]


Bonzi Software, Inc., et al.; 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 October 1, 2004.

ADDRESSES: Comments should refer to ``Bonzi Software, Inc., et al., 
File No. 042 3016,'' to facilitate the organization of comments. A 
comment filed in paper form should include this reference both in the 
text and on the envelope, and should be mailed or delivered to the 
following address: Federal Trade Commission/Office of the Secretary, 
Room H-159, 600 Pennsylvania Avenue, NW., Washington, DC 20580. 
Comments containing confidential material must be filed in paper form, 
as explained in the SUPPLEMENTARY INFORMATION section. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions. Comments filed in electronic form 
(except comments containing any confidential material) should be sent 
to the following e-mail box: [email protected].

FOR FURTHER INFORMATION CONTACT: Thomas Pahl or Laura Sullivan, FTC, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580, (202) 326-2128 or 326-3327.

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 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 thirty (30) days. The following Analysis to Aid 
Public Comment 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 September 1, 2004), on the World Wide Web, at http://www.ftc.gov/os/2004/09/index.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. Written comments must be submitted on 
or before October 1, 2004. Comments should refer to ``Bonzi Software, 
Inc., et al., File No. 042 3016,'' to facilitate the organization of 
comments. A comment filed in paper form should include this reference 
both in the text and on the envelope, and should be mailed or delivered 
to the following address: Federal Trade Commission/Office of the 
Secretary, Room H-159, 600 Pennsylvania Avenue, NW., Washington, DC 
20580. If the comment contains any material for which confidential 
treatment is requested, it must be filed in paper (rather than 
electronic) form, and the first page of the document must be clearly 
labeled ``Confidential.'' \1\ The FTC is requesting that any comment 
filed in paper form be sent by courier or overnight service, if 
possible, because U.S. postal mail in the Washington area and at the 
Commission is subject to delay due to heightened security precautions. 
Comments filed in electronic form should be sent to the following e-
mail box: [email protected].
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    \1\ Commission Rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c).
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    The FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. All timely and responsive public comments, whether filed 
in paper or electronic form, will be considered by the Commission, and 
will be available to the public on the FTC Web site, to the extent 
practicable, at http://www.ftc.gov. As a matter of discretion, the FTC 
makes every effort to remove home contact information for individuals 
from the public comments it receives before placing those comments on 
the FTC Web site. More information, including routine uses permitted by 
the Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement containing a consent order from Bonzi Software, 
Inc., Joe Bonzi, and Jay Bonzi (``respondents'').
    The proposed consent order has 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 
agreement and the comments received, and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    This matter involves the advertising and promotion of Bonzi 
InternetALERT software. According to the FTC complaint, the respondents 
represented that Internet ALERT significantly reduces the risk of 
unauthorized access into computers and the data stored in them. The FTC 
alleges that in fact InternetALERT does not significantly reduce this 
risk.

[[Page 54668]]

    The proposed consent order contains provisions designed to prevent 
the respondents from engaging in similar acts and practices in the 
future.
    Part I.A. of the order prohibits the respondents from 
misrepresenting the extent to which InternetALERT or any other software 
product or service that is marketed as enhancing security will reduce 
the risk of unauthorized access into a computer. Part I.B. also 
prohibits the respondents from misrepresenting the extent which any 
such product or service will maintain, protect, or provide security 
features that will enhance the security or privacy of any computer, or 
any data that is stored in a computer, including personally 
identifiable information.
    Part II prohibits the respondents from making any 
misrepresentations concerning the performance, benefits, or efficacy of 
any computer software product or service that is marketed as enhancing 
security or privacy.
    Part III of the order requires respondents to pay refunds to 
current InternetALERT subscribers who opt to cancel their 
subscriptions. Subscribers who cancel their subscriptions will receive 
from the respondents a refund that represents the unused portion of 
their InternetALERT subscription.
    Part IV of the proposed order would require respondents to notify 
their retailers, affiliates, and similar third parties that advertise, 
promote, or sell InternetALERT to discontinue making any of the claims 
prohibited by the order.
    Parts V though IX of the order require respondents to keep copies 
of relevant advertisements and materials substantiating the claims made 
in the advertisements; to provide copies of the order to certain of 
their current and future personnel; to notify the Commission of changes 
in corporate structure; and to file compliance reports with the 
Commission. Part X provides that the order will terminate after twenty 
(20) 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. 04-20405 Filed 9-8-04; 8:45 am]
BILLING CODE 6750-01-P