[Federal Register Volume 72, Number 85 (Thursday, May 3, 2007)]
[Notices]
[Pages 24586-24587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8402]


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FEDERAL TRADE COMMISSION

[File No. 062 3094]


Soyo, Inc.; Analysis of Proposed Consent Order 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 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 May 29, 2007.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Soyo, Inc., File No. 062 3094,'' 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 159-H, 600 Pennsylvania 
Avenue, NW., Washington, DC 20580. Comments containing confidential 
material must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with Commission Rule 4.9(c). 16 CFR 
4.9(c) (2005).\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 that do not 
contain any nonpublic information may instead be filed in electronic 
form as part of or as an attachment to e-mail messages directed to the 
following e-mail box: [email protected].
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    \1\ 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.

FOR FURTHER INFORMATION CONTACT: Linda K. Badger, FTC Western Regional 
Office, 901 Market Street, Suite 570, San Francisco, CA 94103, (415) 
848-5100.

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 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 April 27, 2007), on the

[[Page 24587]]

World Wide Web, at http://www.ftc.gov/os/2007/04/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. All comments should be filed as 
prescribed in the ADDRESSES section above, and must be received on or 
before the date specified in the DATES section.

Analysis of Agreement Containing Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement containing a consent order from Soyo, Inc. 
(``Soyo''). Soyo, located in Ontario, California, is a distributor of 
computer-related hardware and other consumer electronics products.
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception 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 concerns cash rebate offers that Soyo advertised to 
consumers. The complaint alleges that Soyo engaged in deceptive 
practices relating to these rebate offers. Specifically, the complaint 
alleges that Soyo falsely represented that: (1) Rebates would be mailed 
within a reasonable period of time after receipt of a consumer's valid 
request, (2) within ten to twelve weeks after receipt of a consumer's 
valid request, and (3) within ten to twelve weeks of the last date on 
which a valid request could be postmarked. The complaint alleges that 
thousands of consumers who submitted valid requests for rebates since 
2004 experienced substantial, unreasonable delays, including delays of 
one year or longer. It is further alleged that from October 2004 to 
March 2006, over 95 percent of respondent's rebate checks were 
delivered later than twelve weeks after the last date on which a valid 
request could be postmarked, with an average delivery time of 
approximately 24 weeks.
    The proposed order contains provisions designed to prevent Soyo 
from engaging in similar acts and practices in the future. Part I of 
the proposed order prohibits Soyo from misrepresenting the time in 
which any rebate will be mailed and from failing to provide any rebate 
within the time specified, or if no time is specified, within thirty 
days. This provision also prohibits the company from misrepresenting 
any material terms of any rebate program, including the status of or 
reasons for any delay in providing any rebate. Part II of the proposed 
order is a redress provision which requires Soyo to pay all valid 
rebate requests to consumers who purchased Soyo products and whose 
rebates are past due. This provision also requires Soyo to send a 
rebate to any eligible purchaser who contacts it or the FTC for a 
period of seventy-five (75) days after service of the order.
    Parts III through VI of the proposed order are reporting and 
compliance provisions. Part VII provides that the order will terminate 
after twenty (20) years, with certain exceptions.
    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. E7-8402 Filed 5-2-07; 8:45 am]
BILLING CODE 6750-01-P