[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
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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