[Federal Register Volume 74, Number 199 (Friday, October 16, 2009)]
[Notices]
[Pages 53247-53249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24994]
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FEDERAL TRADE COMMISSION
[File No. 092 3140]
Directors Desk LLC; Analysis of Proposed Consent Orders 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 November 5, 2009.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Directors
Desk, File No. 092 3140'' 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
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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\
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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 FTC Rule 4.9(c), 16 CFR
4.9(c).
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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/directorsdesk) 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/directorsdesk). 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 ``Directors Desk,
File No. 092 3140'' 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://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 Directors
Desk LLC (``Directors Desk'').
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 Directors Desk 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.
Directors Desk provides an online application that allows members
of corporate boards of directors to access board meeting materials,
board minutes, and other related documents through a website
(www.directorsdesk.com). According to the Commission's complaint,
Directors Desk set forth on its website privacy policies and statements
about its practices, including statements that it is a current
participant in the Safe Harbor.
The Commission's complaint alleges that Directors Desk falsely
represented that it was a current participant in the Safe Harbor when,
in fact, from February 2008 until August 2009, Directors Desk was not a
current participant in the Safe Harbor. The Commission's complaint
alleges that in February 2007, Directors Desk submitted to Commerce a
self-certification, which it did not renew in February 2008. Commerce
then updated its status to ``not current'' on the Commerce public
website. Directors Desk remained in ``not current'' status
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until it submitted a self-certification to Commerce in August 2009.
The proposed order applies to Directors Desk's representations
about its membership in any privacy, security, or any other compliance
program sponsored by the government or any other third party. It
contains provisions designed to prevent Directors Desk from engaging in
the future in practices similar to those alleged in the complaint.
Part I of the proposed order prohibits Directors Desk 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 Directors Desk 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 Directors Desk 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. E9-24994 Filed 10-15-09; 8:45 am]
BILLING CODE 6750-01-S