[Federal Register Volume 75, Number 170 (Thursday, September 2, 2010)]
[Notices]
[Pages 53968-53969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21949]
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FEDERAL TRADE COMMISSION
[File No. 092 3199]
Reverb Communications, 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 September 27, 2010.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Reverb,
Inc., File No. 092 3199'' 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/reverb) 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/reverb). 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 ``Reverb, Inc.,
File No. 092 3199'' 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: Stacey Ferguson (202-326-2361), 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
[[Page 53969]]
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 August
26, 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 (``FTC'' or ``Commission'') has
accepted, subject to final approval, an agreement containing a consent
order from Reverb Communications, Inc. and Tracie Snitker, 100% owner
and the only officer and director of the corporation (``respondents'').
The proposed consent order (``proposed 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 involves the public relations, marketing, and sales
services that respondents provided to companies that developed video
game applications. The Commission's complaint alleges that, from
November 2008 through May 2009, respondents' employees, posing as
ordinary consumers, posted positive product reviews online for their
clients' gaming applications. These postings did not disclose the
compensated nature of the relationship between the reviewers and the
publishers of the gaming applications. The complaint alleges that the
respondents violated Section 5 by misrepresenting that reviews of
certain gaming applications were those of independent, ordinary
consumers. The complaint further alleges that the respondents violated
Section 5 by failing to disclose the material connections between the
product reviewers and the sellers of the reviewed products.
Part I of the proposed order prohibits the respondents, in
connection with the advertising of any product or service, from
misrepresenting their status as independent users or ordinary consumers
of that product or service.
Part II prohibits the respondents from making any representation
about any user or endorser of a product or service unless they
disclose, clearly and prominently, a material connection, when one
exists, between the user or endorser of the product or service and any
other party involved in promoting that product or service. The proposed
order defines ``material connection'' as any relationship that
materially affects the weight or credibility of any endorsement and
would not be reasonably expected by consumers.
Part III requires the respondents to take all reasonable steps to
remove, with seven days of service of the order, any previously posted
endorsements that do not comply with Parts I and II of the order.
Parts IV through IX of the proposed order require respondents: to
keep copies of relevant consumer complaints and inquiries, documents
demonstrating order compliance, and any documents relating to any
representation covered by this order; to provide copies of the order to
certain of their personnel; to notify the Commission of changes in
corporate structure that might affect compliance obligations under the
order; to notify the Commission of changes in corporate business or
employment as to proposed respondent Tracie Snitker individually; and
to file compliance reports with the Commission. Part IX 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.
Richard C. Donohue
Acting Secretary.
[FR Doc. 2010-21949 Filed 9-1-10; 8:45 am]
BILLING CODE 6750-01-S