[Federal Register Volume 75, Number 187 (Tuesday, September 28, 2010)]
[Notices]
[Pages 59718-59720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24224]


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FEDERAL TRADE COMMISSION

[File No. 102 3131]


US Search, Inc. And US Search, LLC; 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 October 22, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to``US Search, 
Inc., File No. 101 3131'' 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\
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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://ftcpublic.commentworks.com/ftc/ussearch) 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://ftcpublic.commentworks.com/ftc/ussearch). 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 ``US Search, File 
No. 101 3131'' 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

[[Page 59719]]

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: Anthony Rodriguez (202-326-2757), 
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 September 22, 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 with US Search, Inc., and US Search, LLC 
(collectively ``US Search'').
    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 comments received, and will decide whether it should 
withdraw from the agreement and take appropriate action or make final 
the agreement's proposed order.
    US Search operates an online data broker service and sells publicly 
available information about consumers to other consumers through its 
website, (www.ussearch.com). This publicly available information 
includes name, age, address, phone numbers, email addresses, aliases, 
maiden name, death records, address history, information about friends, 
associates, and relatives, marriage and divorce information, 
bankruptcies, tax liens, civil lawsuits, criminal records, and home 
values. In conjunction with this service, since June 2009, US Search 
has offered and sold a PrivacyLock service, which purportedly allows 
consumers to ``lock their records'' on the US Search website and 
prevent their names from appearing on US Search's website, in US 
Search's advertisements, and in US Search's search results. Until 
recently, US Search charged most consumers a $10 fee to place a 
PrivacyLock, and almost 5,000 consumers paid to have their information 
removed from the US Search site.
    The complaint alleges that, in truth and in fact, the PrivacyLock 
service did not prevent consumers' information from appearing on the US 
Search website in many instances. The complaint alleges that US Search 
has engaged in deceptive acts or practices, in violation of Section 5 
of the FTC Act, by misrepresenting that the purchase or use of its 
PrivacyLock service will prevent a consumer's name and address from 
appearing on US Search's website, US Search's advertisements, and in US 
Search's search results.
    The proposed consent order includes injunctive relief that enjoins 
US Search from misrepresenting the effectiveness of its PrivacyLock 
service or any other service offered to consumers that will allow 
consumers to remove publicly available information from US Search's 
search results, websites, and advertisements. Also included in the 
order are redress provisions that require US Search to refund any money 
consumers paid for the PrivacyLock service. Under the proposed order, 
US Search would be required to credit consumers' credit and debit card 
accounts and notify consumers via email that such credits were made.
    Part I of the proposed order prohibits US Search from 
misrepresenting, in any manner, the effectiveness of its 
``PrivacyLock'' service or any other service offered to consumers that 
will allow consumers to remove publicly available information from US 
Search's search results, websites, or advertisements.
    Part II of the proposed order prohibits US Search from making any 
representations concerning the effectiveness its ``PrivacyLock'' 
service or any other similar service offered to consumers that will 
allow consumers to remove publicly available information from US 
Search's search results, websites, or advertisements, unless US Search 
discloses, clearly and prominently, any material limitations regarding 
such service, including but not limited to (1) any limitations on the 
duration of the removal; and (2) any circumstances under which 
information about the consumers will not be removed or will reappear.
    Part III of the proposed order requires US Search to provide full 
refunds to any consumer who requested ``PrivacyLock'' and was assessed 
a charge for such service, by crediting the consumer's credit or debit 
card used to purchase the service. US Search must also provide notice 
of the refund through an email message sent to affected consumers. The 
message must include an address and a toll-free number for consumers to 
use to contact US Search regarding the refund. US Search must display a 
notice about its refund program clearly and prominently on its website 
for a period of one year. Any amounts not refunded to consumers must be 
deposited with the U.S. Treasury as disgorgement. The proposed order 
further requires US Search, within one year of issuance of this order, 
to provide the Commission with an accounting of all refunds paid to 
consumers, as well as any amounts that were deposited with the U.S. 
Treasury as disgorgement.
    Parts IV through VIII of the proposed order are reporting and 
compliance provisions. Part IV of the proposed order requires US Search 
to retain for a period of five (5) years from the last date of 
dissemination of any representation covered by the order all 
advertisements and promotional materials containing the representation; 
complaints and refund requests, and any responses to such requests; and 
all records and documents necessary to demonstrate full compliance with 
each provision of the proposed order.
    Part V of the proposed order requires dissemination of the order 
now and in the future to principals, officers, directors, and managers 
having responsibilities relating to the subject matter of the order. 
Part VI ensures notification to the FTC of changes in corporate status. 
Part VII mandates that

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US Search submit an initial compliance report to the FTC and make 
available to the FTC subsequent reports. Part VIII 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. 2010-24224 Filed 9-27-10; 1:40 pm]
BILLING CODE 6750-01-S