[Federal Register Volume 70, Number 50 (Wednesday, March 16, 2005)]
[Notices]
[Pages 12886-12888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5217]


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FEDERAL TRADE COMMISSION

[File No. 042 3068]


Vision I Properties, LLC, d/b/a CartManager International; 
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 April 11, 2005.

ADDRESSES: Comments should refer to ``Vision I Properties, LLC, d/b/a 
CartManager International, File No. 042 3068,'' 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: Jessica Rich, FTC, Bureau of Consumer 
Protection, 600 Pennsylvania Avenue, NW., Washington, DC 20580, (202) 
326-3224.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec.  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

[[Page 12887]]

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 March 10, 2005), on the World Wide Web, at http://www.ftc.gov/os/2005/03/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 April 11, 2005. Comments should refer to ``Vision I 
Properties, LLC, d/b/a CartManager International, File No. 042 3068,'' 
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 an agreement, subject to 
final approval, to a proposed consent order from Vision I Properties, 
LLC, d/b/a CartManager International (``Vision One''). Vision One 
licenses shopping cart software and provides related services to 
thousands of small online retail merchants through its Web site, http://www.cartmanager.com.
    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 and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns Vision One's collection and rental of personal 
information obtained from consumers making purchases from online 
merchants that used Vision One's software. Vision One provides shopping 
cart software and services to thousands of small online retail 
merchants. The shopping cart software generates customizable ``shopping 
cart'' and ``checkout'' Web pages that enable the merchant to process 
consumer purchases. A consumer uses these pages to select items for 
purchase. These pages then collect the consumer's payment, shipping, 
and billing information.
    The shopping cart and checkout pages reside on Vision One's Web 
site, enabling Vision One to collect consumers' personal information 
through its software. The shopping cart and checkout pages are designed 
to look like the other pages on the merchant's site and typically 
display the merchant's name and logo.
    Many of the merchants suing Vision One's shopping cart software 
have posted privacy policy on their Web sites, which generally limit 
the disclosure of personal information collected from consumers. Many 
of these privacy policy have stated that the merchant's practice is 
never to sell or rent personal information to third parties. 
Notwithstanding the promises made in these merchants' privacy policies, 
Vision One rented the personal information (including name, address, 
telephone number, and purchase history) of nearly one million consumers 
it obtained through its software to third parties for marketing 
purposes. According to the complaint, Vision One failed to inform 
adequately these merchants or the consumers shopping at their sites 
that it intended to disclose this information. The Commission's 
complaint charges that, by collecting consumers' personal information 
at these merchant sites and renting it to third parties, knowing that 
such practices were contrary to these merchants' privacy policies, 
Vision One engaged in unfair practices prohibited by Section 5 of the 
Federal Trade Commission Act.
    The proposed consent order is designed to stop Vision One from 
violating Section 5 and to prevent Vision One from engaging in such 
violations in the future. Part I of the proposed consent order 
prohibits Vision One from making any misrepresentations regarding its 
collection, use, or disclosure of consumers' personal information. Part 
II of the order prohibits Vision One from disclosing to any third party 
for marketing purposes any personal information it previously collected 
from consumers through its shopping cart software used at a merchant's 
site.
    Part III of the proposed order addresses Vision One's future 
collection of personal information. It prohibits Vision One from 
selling, renting, or disclosing to any third party for marketing 
purposes any personal information it collects from consumers through 
its shopping cart software, unless consumers are provided with notice. 
Vision One must disclose its information practices either to the 
merchants or directly to consumers prior to its collection of any 
personal information. If Vision One provides the notice directly to its 
merchants, it must obtain certifications from the merchants that they 
received the notice and have either (1) posted a privacy policy stating 
that consumers' information may be sold, rented, or disclosed to third 
parties, or (2) posted a clear and conspicuous notice on their Web 
sites advising consumers that they are leaving the merchant's site and 
entering Vision One's site where a different privacy policy governs. If 
Vision One chooses to provide notice directly to consumers rather than 
to the merchants, it must clearly and conspicuously post the notice on 
the page(s) where it collects personal information. The notice must 
state that the consumer is on Vision One's site and that personal 
information provided by the consumer

[[Page 12888]]

will be used, sold, rented, or disclosed to third parties for 
marketing.
    Part IV of the proposed order requires Vision One to pay $9,101.63 
to the United States Treasury as disgorgement of the fees it received 
from renting consumer information.
    The remainder of the proposed order contains standard requirements 
that Vision One: maintain copies of privacy statements and other 
documents relating to the collection, use, or disclosure of personally 
identifiable information, and all notices, certifications, and other 
documents relating to the disclosures required by Part III of the 
order; distribute copies of the order 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 its compliance with the order. Part IX of the 
proposed order is a provision whereby the order, absent certain 
circumstances, terminates twenty years from the date of issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way its terms.
    The proposed order, if issued in final form, will resolve the 
claims alleged in the complaint against the named respondent. It is not 
the Commission's intent that acceptance of this consent agreement and 
issuance of a final decision and order 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. 05-5217 Filed 3-15-05; 8:45 am]
BILLING CODE 6750-01-M