[Federal Register Volume 74, Number 199 (Friday, October 16, 2009)]
[Notices]
[Pages 53254-53255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24951]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
[File No. 092 3142]
Collectify, Inc.; Analysis of Proposed Consent Orders To Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
-----------------------------------------------------------------------
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 November 5, 2009.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Collectify,
File No. 092 3142'' to facilitate the organization of comments. Please
note that your comment -- including your name and your state -- will be
placed on the public record of this proceeding, including on the
publicly accessible FTC website, at (http://www.ftc.gov/os/publiccomments.shtm).
Because comments will be made public, they should not include any
sensitive personal information, such as an individual's Social Security
Number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. Comments also
should not include any sensitive health information, such as medical
records or other individually identifiable health information. In
addition, comments should not include any ``[t]rade secret or any
commercial or financial information which is obtained from any person
and which is privileged or confidential . . . .,'' as provided in
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and Commission Rule
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing material for which
confidential treatment is requested must be filed in paper form, must
be clearly labeled ``Confidential,'' and must comply with FTC Rule
4.9(c), 16 CFR 4.9(c).\1\
---------------------------------------------------------------------------
\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 FTC Rule 4.9(c), 16 CFR
4.9(c).
---------------------------------------------------------------------------
Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted by using the following weblink: (https://public.commentworks.com/ftc/collectify) and following the instructions
on the web-based form. To ensure that the Commission considers an
electronic comment, you must file it on the web-based form at the
weblink: (https://public.commentworks.com/ftc/collectify). If this
Notice appears at (http://www.regulations.gov/search/index.jsp), you
may also file an electronic comment through that website. The
Commission will consider all comments that regulations.gov forwards to
it. You may also visit the FTC website at (http://www.ftc.gov/) to read
the Notice and the news release describing it.
A comment filed in paper form should include the ``Collectify, File
No. 092 3142'' 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-135 (Annex D), 600
Pennsylvania Avenue, NW, Washington, DC 20580. 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.
The Federal Trade Commission Act (``FTC Act'') and other laws the
Commission administers permit the collection of public comments to
consider and use in this proceeding as appropriate. The Commission will
consider all timely and responsive public comments that it receives,
whether filed in paper or electronic form. Comments received will be
available to the public on the FTC website, to the extent practicable,
at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of
discretion, the Commission makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC website. 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.shtm).
FOR FURTHER INFORMATION CONTACT: Molly Crawford (202-326-3076) or Katie
Ratt[eacute] (202-326-3514), Bureau of Consumer Protection, 600
Pennsylvania Avenue, NW, Washington, D.C. 20580.
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 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 October 6, 2009), on the World Wide Web, at (http://
[[Page 53255]]
www.ftc.gov/os/actions.shtm). A paper copy can be obtained from the FTC
Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW,
Washington, D.C. 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 (``FTC'' or ``Commission'') has
accepted, subject to final approval, a consent agreement from
Collectify, Inc. (``Collectify'').
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 appropriate action or make final
the agreement's proposed order.
This matter concerns alleged false or misleading representations
that Collectify made to consumers concerning its participation in the
Safe Harbor privacy framework (``Safe Harbor'') agreed upon by the U.S.
and the European Union (``EU''). It is among the Commission's first
cases to challenge deceptive claims about the Safe Harbor. The Safe
Harbor provides a mechanism for U.S. companies to transfer data outside
the EU consistent with European law. To join the Safe Harbor, a company
must self-certify to the U.S. Department of Commerce (``Commerce'')
that it complies with seven principles and related requirements.
Commerce maintains a public website, (www.export.gov/safeharbor), where
it posts the names of companies that have self-certified to the Safe
Harbor. The listing of companies indicates whether their self-
certification is ``current'' or ``not current.'' Companies are required
to re-certify every year in order to retain their status as ``current''
members of the Safe Harbor framework.
Collectify sells comprehensive cataloguing software to consumers
over the internet, including through a website (www.collectify.com).
According to the Commission's complaint, since at least September 2001,
Collectify has set forth on its website, (www.collectify.com), privacy
policies and statements about its practices, including statements
related to its participation in the Safe Harbor privacy framework.
The Commission's complaint alleges that Collectify falsely
represented that it was a current participant in the Safe Harbor when,
in fact, from October 2004 until July 2009, Collectify was not a
current participant in the Safe Harbor. The Commission's complaint
alleges that in October 2001, Collectify submitted a Safe Harbor self-
certification, which it renewed in October 2002 and October 2003.
Collectify did not renew its self-certification in October 2004 and was
in ``not current'' status on the Commerce website until it renewed its
self-certification in July 2009.
Part I of the proposed order prohibits Collectify from making
misrepresentations about its membership in any privacy, security, or
any other compliance program sponsored by the government or any other
third party.
Parts II through VI of the proposed order are reporting and
compliance provisions. Part II requires Collectify to retain documents
relating to its compliance with the order for a five-year period. Part
III requires dissemination of the order now and in the future to
persons with responsibilities relating to the subject matter of the
order. Part IV ensures notification to the FTC of changes in corporate
status. Part V mandates that Collectify submit an initial compliance
report to the FTC, and make available to the FTC subsequent reports.
Part VI is a provision ``sunsetting'' the order after twenty (20)
years, with certain exceptions.
The purpose of the analysis is to facilitate public comment on the
proposed order. 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. E9-24951 Filed 10-15-09; 9:32 am]
BILLING CODE 6750-01-S