[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Pages 4714-4716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01768]


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FEDERAL TRADE COMMISSION

[File No. 142-3031]


The Receivable Management Services Corporation; 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. The attached Analysis of Proposed Consent Order 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 February 20, 2014.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/rmsconsent online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``The Receivable 
Management Services, Corporation (RMS)--Consent Agreement; File No. 
142-3031'' on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/rmsconsent https://ftcpublic.commentworks.com/ftc/fidelitynationalconsent by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary,

[[Page 4715]]

Room H-113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 
20580.

FOR FURTHER INFORMATION CONTACT: Katherine White, Bureau of Consumer 
Protection, (202-326-2878), 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing 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 January 21, 2014), 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, DC 20580, either in person or by calling (202) 326-
2222.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before February 20, 
2014. Write ``The Receivable Management Services, Corporation (RMS)--
Consent Agreement; File No. 142-3031'' on your comment. Your comment--
including your name and your state--will be placed on the public record 
of this proceeding, including, to the extent practicable, on the public 
Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a 
matter of discretion, the Commission tries to remove individuals' home 
contact information from comments before placing them on the Commission 
Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone'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. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/rmsconsent by following the instructions on the web-based form. If 
this Notice appears at http://www.regulations.gov/#!home, you also may 
file a comment through that Web site.
    If you file your comment on paper, write ``The Receivable 
Management Services, Corporation (RMS)--Consent Agreement; File No. 
142-3031'' on your comment and on the envelope, and mail or deliver it 
to the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that 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 on or before February 20, 2014. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, a consent agreement applicable to 
The Receivable Management Services Corporation (``RMS'').
    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 RMS 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'') (``U.S.-EU Safe Harbor Framework''). It is 
among several actions the Commission is bringing to enforce the 
promises that companies make when they certify that they participate in 
the Safe Harbor Framework. The Safe Harbor framework allows U.S. 
companies to transfer data outside the EU consistent with European law. 
To join the Safe Harbor framework, a company must self-certify to the 
U.S. Department of Commerce (``Commerce'') that it complies with a set 
of principles and related requirements that have been deemed by the 
European Commission as providing ``adequate'' privacy protection. These 
principles include notice, choice, onward transfer, security, data 
integrity, access, and enforcement. Commerce maintains a public Web 
site, www.export.gov/safeharbor, where it posts the names of companies 
that have self-certified to the Safe Harbor framework. 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.
    In 2008, Commerce developed the U.S.-EU Safe Harbor Framework 
Certification Mark (``the mark'') to allow companies to highlight for 
consumers their compliance with the Safe Harbor Framework. Upon 
request, Commerce provides the mark to those organizations that 
maintain a ``current'' self-certification to the U.S.-EU Safe Harbor 
Framework. Commerce has established certain rules for using the mark, 
such as

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requirements related to the mark's placement on a Web site and the 
inclusion of a link to www.export.gov/safeharbor.
    RMS is a collection agency. According to the Commission's 
complaint, from at least February 2009 until November 2013, RMS set 
forth on its Web site, www.rmsna.com, privacy policies and statements 
about its practices, including statements related to its participation 
in the U.S.-EU Safe Harbor Framework. In addition, from at least 
February 2009 until November 2013, RMS displayed the mark on its Web 
site.
    The Commission's complaint alleges that RMS, through its statements 
and use of the mark, falsely represented that it was a ``current'' 
participant in the Safe Harbor when, in fact, from February 2010 until 
November 2013, RMS was not a ``current'' participant in the Safe 
Harbor. The Commission's complaint alleges that in February 2009, RMS 
submitted a Safe Harbor self-certification. RMS did not renew its self-
certification in February 2010 and Commerce subsequently updated RMS's 
status to ``not current'' on its public Web site.
    Part I of the proposed order prohibits RMS from making 
misrepresentations about its membership in any privacy or security 
program sponsored by the government or any other self-regulatory or 
standard-setting organization, including, but not limited to, the U.S.-
EU Safe Harbor Framework.
    Parts II through VI of the proposed order are reporting and 
compliance provisions. Part II requires RMS 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 RMS 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 this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the proposed complaint or order or to modify the 
order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-01768 Filed 1-28-14; 8:45 am]
BILLING CODE 6750-01-P