[Federal Register: March 17, 2009 (Volume 74, Number 50)]
[Notices]
[Page 11374-11376]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17mr09-52]
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FEDERAL TRADE COMMISSION
[File No. 082 3114]
American Telecom Services, 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
[[Page 11375]]
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 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 9, 2009.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to``American
Telecom Services, File No. 082 3114'' 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).\1\
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\1\ FTC Rule 4.2(d), 16 CFR 4.2(d). 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://
secure.commentworks.com/ftc-AmericanTelecom) (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://secure.commentworks.com/ftc-AmericanTelecom).
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 ``American Telecom
Services, Inc., File No. 082 3114`` 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,
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: Linda K. Badger, FTC Western Region,
San Francisco, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580,
(415) 848-5151.
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 of
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 11, 2009), on the World Wide Web, at (http://www.ftc.gov/os/
2009/03/index.htm). 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, an agreement containing a consent order from American Telecom
Services, Inc. (``ATS''). ATS, with headquarters in Atlanta, Georgia,
is a distributor of telephones and phone services.
The proposed consent order has been placed on the public record for
thirty (30) days for reception 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 or make final the agreement's proposed
order.
This matter concerns ATS's cash rebate promotions. To make its
products more attractive to retailers and their customers, ATS has
offered numerous mail-in rebates ranging from $5 to $50 in value. In
implementing these promotions, ATS used third party fulfillment houses
to process and pay rebate requests received from its customers. The
complaint alleges that ATS engaged in deceptive practices relating to
these rebate offers. Specifically, the complaint alleges that ATS
falsely represented that purchasers of eligible ATS products will
receive rebate checks within eight weeks after receipt of their
properly completed requests. The proposed complaint further alleges
that tens of thousands of consumers who submitted properly completed
requests for rebates since 2006 have experienced substantial delays,
including delays of one year or longer. According to the complaint,
[[Page 11376]]
these delays have been due, in part, to ATS's inability to pay its
third party fulfillment houses, as well as its refusal to timely pay
third party fulfillment houses with which it had disagreements.
The proposed order contains provisions designed to prevent ATS from
engaging in similar acts and practices in the future. Part I of the
proposed order prohibits ATS from misrepresenting the time in which any
rebate will be mailed and from failing to provide any rebate within the
time specified, or if no time is specified, within thirty days. This
provision also prohibits the company from misrepresenting any material
terms of any rebate program, including the status of or reasons for any
delay in providing any rebate.
Parts II through V of the proposed order are standard reporting and
compliance provisions. Part VI provides that the order will terminate
after twenty (20) years, with certain exceptions.
The purpose of this analysis is to facilitate public comment on the
proposed order, and 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. E9-5733 Filed 3-16-09: 8:45 am]
BILLING CODE 6750-01-S