[Federal Register Volume 75, Number 61 (Wednesday, March 31, 2010)]
[Notices]
[Pages 16123-16125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7127]


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FEDERAL TRADE COMMISSION

[File No. 082 3153]


Dave & Buster's, 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 April 26, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Dave & 
Buster's, File No. 082 3153'' 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

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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/daveandbusters) 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/daveandbusters). 
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 ``Dave & Buster's, 
File No. 082 3153'' 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: Katrina Blodgett (202-326-3158), 
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 March 25, 2010), 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 has accepted, subject to final 
approval, a consent agreement from Dave & Buster's, Inc. (``Dave & 
Buster's'').
    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.
    Dave & Buster's owns and operates 53 restaurant and entertainment 
complexes in the United States. Consumers may pay for purchases at 
these locations with credit and debit cards (collectively, ``payment 
cards'') or cash. In conducting its business, Dave & Buster's routinely 
collects information from consumers to obtain authorization for payment 
card purchases, including the credit card account number, expiration 
date, and an electronic security code for payment authorization. This 
information is particularly sensitive because it can be used to 
facilitate payment card fraud and other consumer fraud.
    The Commission's complaint alleges that since at least April 2007, 
Dave & Buster's engaged in a number of practices that, taken together, 
failed to provide reasonable and appropriate security for personal 
information on its computer networks. Among other things, Dave & 
Buster's: (a) failed to employ sufficient measures to detect and 
prevent unauthorized access to computer networks or to conduct security 
investigations, such as by employing an intrusion detection system and 
monitoring system logs; (b) failed to adequately restrict third-party 
access to its networks, such as by restricting connections to specific 
IP addresses or granting temporary, limited access; (c) failed to 
monitor and filter outbound traffic from its networks to identify and 
block export of sensitive personal information without authorization; 
(d) failed to use readily available security measures to limit access 
between in-store networks, such as by using firewalls or isolating the 
payment card system from the rest of the corporate network; and (e) 
failed to use readily available security measures to limit access to 
its computer networks through wireless access points on the networks.
    The complaint further alleges that between April 30, 2007 and 
August 28, 2007, an intruder, exploiting some of these vulnerabilities, 
connected to Dave & Buster's networks numerous times without 
authorization, installed unauthorized software, and intercepted 
personal information in transit from in-store networks to its credit 
card processing company. The breach compromised approximately 130,000 
unique payment cards used by consumers in the United States.
    The proposed order applies to personal information Dave & Buster's 
collects from or about consumers. It contains provisions designed to 
prevent Dave & Buster's from engaging in the future in practices 
similar to those alleged in the complaint.
    Part I of the proposed order requires Dave & Buster's to establish 
and maintain a comprehensive information

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security program in writing that is reasonably designed to protect the 
security, confidentiality, and integrity of personal information 
collected from or about consumers. The security program must contain 
administrative, technical, and physical safeguards appropriate to Dave 
& Buster's size and complexity, the nature and scope of its activities, 
and the sensitivity of the personal information collected from or about 
consumers. Specifically, the order requires Dave & Buster's to:
     Designate an employee or employees to coordinate and be 
accountable for the information security program.
     Identify material internal and external risks to the 
security, confidentiality, and integrity of personal information that 
could result in the unauthorized disclosure, misuse, loss, alteration, 
destruction, or other compromise of such information, and assess the 
sufficiency of any safeguards in place to control these risks.
     Design and implement reasonable safeguards to control the 
risks identified through risk assessment, and regularly test or monitor 
the effectiveness of the safeguards' key controls, systems, and 
procedures.
     Develop and use reasonable steps to select and retain 
service providers capable of appropriately safeguarding personal 
information they receive from respondents, and require service 
providers by contract to implement and maintain appropriate safeguards.
     Evaluate and adjust its information security program in 
light of the results of the testing and monitoring, any material 
changes to its operations or business arrangements, or any other 
circumstances that it knows or has reason to know may have a material 
impact on the effectiveness of its information security program.
    Part II of the proposed order requires that Dave & Buster's obtain 
within 180 days, and on a biennial basis thereafter for ten (10) years, 
an assessment and report from a qualified, objective, independent 
third-party professional, certifying, among other things, that it has 
in place a security program that provides protections that meet or 
exceed the protections required by Part I of the proposed order; and 
its security program is operating with sufficient effectiveness to 
provide reasonable assurance that the security, confidentiality, and 
integrity of consumers' personal information is protected.
    Parts III through VII of the proposed order are reporting and 
compliance provisions. Part III requires Dave & Buster's to retain 
documents relating to its compliance with the order. For most records, 
the order requires that the documents be retained for a five-year 
period. For the third-party assessments and supporting documents, Dave 
& Buster's must retain the documents for a period of three years after 
the date that each assessment is prepared. Part IV requires 
dissemination of the order now and in the future to principals, 
officers, directors, and managers at corporate headquarters, regional 
offices, and at each store having responsibilities relating to the 
subject matter of the order. Part V ensures notification to the FTC of 
changes in corporate status. Part VI mandates that Dave & Buster's 
submit an initial compliance report to the FTC, and make available to 
the FTC subsequent reports. Part VII is a provision ``sunsetting'' the 
order after twenty (20) years, with certain exceptions.
    The purpose of the analysis is to aid public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the proposed order or to modify its terms in any way.
    By direction of the Commission.

Donald S. Clark
Secretary
[FR Doc. 2010-7127 Filed 3-30-10: 1:29 pm]
BILLING CODE 6750-01-S