[Federal Register Volume 75, Number 61 (Wednesday, March 31, 2010)]
[Notices]
[Pages 16123-16125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7127]
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FEDERAL TRADE COMMISSION
[File No. 082 3153]
Dave & Buster's, 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 April 26, 2010.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Dave &
Buster's, File No. 082 3153'' 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
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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://public.commentworks.com/ftc/daveandbusters) 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://public.commentworks.com/ftc/daveandbusters).
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 ``Dave & Buster's,
File No. 082 3153'' 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: Katrina Blodgett (202-326-3158),
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 March 25, 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 from Dave & Buster's, Inc. (``Dave &
Buster's'').
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.
Dave & Buster's owns and operates 53 restaurant and entertainment
complexes in the United States. Consumers may pay for purchases at
these locations with credit and debit cards (collectively, ``payment
cards'') or cash. In conducting its business, Dave & Buster's routinely
collects information from consumers to obtain authorization for payment
card purchases, including the credit card account number, expiration
date, and an electronic security code for payment authorization. This
information is particularly sensitive because it can be used to
facilitate payment card fraud and other consumer fraud.
The Commission's complaint alleges that since at least April 2007,
Dave & Buster's engaged in a number of practices that, taken together,
failed to provide reasonable and appropriate security for personal
information on its computer networks. Among other things, Dave &
Buster's: (a) failed to employ sufficient measures to detect and
prevent unauthorized access to computer networks or to conduct security
investigations, such as by employing an intrusion detection system and
monitoring system logs; (b) failed to adequately restrict third-party
access to its networks, such as by restricting connections to specific
IP addresses or granting temporary, limited access; (c) failed to
monitor and filter outbound traffic from its networks to identify and
block export of sensitive personal information without authorization;
(d) failed to use readily available security measures to limit access
between in-store networks, such as by using firewalls or isolating the
payment card system from the rest of the corporate network; and (e)
failed to use readily available security measures to limit access to
its computer networks through wireless access points on the networks.
The complaint further alleges that between April 30, 2007 and
August 28, 2007, an intruder, exploiting some of these vulnerabilities,
connected to Dave & Buster's networks numerous times without
authorization, installed unauthorized software, and intercepted
personal information in transit from in-store networks to its credit
card processing company. The breach compromised approximately 130,000
unique payment cards used by consumers in the United States.
The proposed order applies to personal information Dave & Buster's
collects from or about consumers. It contains provisions designed to
prevent Dave & Buster's from engaging in the future in practices
similar to those alleged in the complaint.
Part I of the proposed order requires Dave & Buster's to establish
and maintain a comprehensive information
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security program in writing that is reasonably designed to protect the
security, confidentiality, and integrity of personal information
collected from or about consumers. The security program must contain
administrative, technical, and physical safeguards appropriate to Dave
& Buster's size and complexity, the nature and scope of its activities,
and the sensitivity of the personal information collected from or about
consumers. Specifically, the order requires Dave & Buster's to:
Designate an employee or employees to coordinate and be
accountable for the information security program.
Identify material internal and external risks to the
security, confidentiality, and integrity of personal information that
could result in the unauthorized disclosure, misuse, loss, alteration,
destruction, or other compromise of such information, and assess the
sufficiency of any safeguards in place to control these risks.
Design and implement reasonable safeguards to control the
risks identified through risk assessment, and regularly test or monitor
the effectiveness of the safeguards' key controls, systems, and
procedures.
Develop and use reasonable steps to select and retain
service providers capable of appropriately safeguarding personal
information they receive from respondents, and require service
providers by contract to implement and maintain appropriate safeguards.
Evaluate and adjust its information security program in
light of the results of the testing and monitoring, any material
changes to its operations or business arrangements, or any other
circumstances that it knows or has reason to know may have a material
impact on the effectiveness of its information security program.
Part II of the proposed order requires that Dave & Buster's obtain
within 180 days, and on a biennial basis thereafter for ten (10) years,
an assessment and report from a qualified, objective, independent
third-party professional, certifying, among other things, that it has
in place a security program that provides protections that meet or
exceed the protections required by Part I of the proposed order; and
its security program is operating with sufficient effectiveness to
provide reasonable assurance that the security, confidentiality, and
integrity of consumers' personal information is protected.
Parts III through VII of the proposed order are reporting and
compliance provisions. Part III requires Dave & Buster's to retain
documents relating to its compliance with the order. For most records,
the order requires that the documents be retained for a five-year
period. For the third-party assessments and supporting documents, Dave
& Buster's must retain the documents for a period of three years after
the date that each assessment is prepared. Part IV requires
dissemination of the order now and in the future to principals,
officers, directors, and managers at corporate headquarters, regional
offices, and at each store having responsibilities relating to the
subject matter of the order. Part V ensures notification to the FTC of
changes in corporate status. Part VI mandates that Dave & Buster's
submit an initial compliance report to the FTC, and make available to
the FTC subsequent reports. Part VII 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. 2010-7127 Filed 3-30-10: 1:29 pm]
BILLING CODE 6750-01-S