Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Notices 68151

1Commission 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 Commission Rule 4.9(c), 16 CFR 

4.9(c).

responsibilities relating to the subject 

matter of the proposed order. Part VI 

requires Petco to notify the Commission 

of changes in Petco’s corporate status. 

Part VII mandates that Petco submit 

compliance reports to the FTC. Part VIII 

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 order to modify its terms 

in any way.

By direction of the Commission. 

Donald S. Clark, 

Secretary.

[FR Doc. 04–25935 Filed 11–22–04; 8:45 am] 

BILLING CODE 6750–01–P

FEDERAL TRADE COMMISSION

[File No. 042 3153] 

Sunbelt Lending Services, Inc.; 

Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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 that accompanies the 

consent agreement 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 December 15, 2004.

ADDRESSES: Comments should refer to 

‘‘Sunbelt Lending Services, Inc., File 

No. 042 3153,’’ to facilitate the 

organization of comments. A comment 

filed in paper form should include this 

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–159, 600 

Pennsylvania Avenue, NW., 

Washington, DC 20580. Comments 

containing confidential material must be 

filed in paper form, as explained in the 

Supplementary Information section. 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. Comments filed in 

electronic form (except comments 

containing any confidential material) 

should be sent to the following email 

box: consentagreement@ftc.gov.

FOR FURTHER INFORMATION CONTACT:

Jessica Rich, FTC, Bureau of Consumer 

Protection, 600 Pennsylvania Avenue, 

NW., Washington, DC 20580, (202) 326–

3224.

SUPPLEMENTARY INFORMATION: Pursuant 

to Section 6(f) of the Federal Trade 

Commission Act, 38 Stat. 721, 15 U.S.C. 

46(f), and Section 2.34 of the 

Commission’s 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 

November 16, 2004), on the World Wide 

Web, at http://www.ftc.gov/os/2004/11/

index.htm. 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. 

Public comments are invited, and may 

be filed with the Commission in either 

paper or electronic form. Written 

comments must be submitted on or 

before December 15, 2004. Comments 

should refer to ‘‘Sunbelt Lending 

Services, Inc., File No. 042 3153,’’ to 

facilitate the organization of comments. 

A comment filed in paper form should 

include this 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–159, 

600 Pennsylvania Avenue, NW., 

Washington, DC 20580. If the comment 

contains any material for which 

confidential treatment is requested, it 

must be filed in paper (rather than 

electronic) form, and the first page of 

the document must be clearly labeled 

‘‘Confidential.’’ 1 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. Comments filed in 

electronic form should be sent to the 

following email box: 

consentagreement@ftc.gov.

The FTC Act and other laws the 

Commission administers permit the 

collection of public comments to 

consider and use in this proceeding as 

appropriate. All timely and responsive 

public comments, whether filed in 

paper or electronic form, will be 

considered by the Commission, and will 

be available to the public on the FTC 

Web site, to the extent practicable, at 

http://www.ftc.gov. As a matter of 

discretion, the FTC makes every effort to 

remove home contact information for 

individuals from the public comments it 

receives before placing those comments 

on the FTC Web site. 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.htm.

Analysis of Proposed Consent Order To 

Aid Public Comment 

The Federal Trade Commission 

(‘‘Commission’’) has accepted a consent 

agreement, subject to final approval, 

from Sunbelt Lending Services, Inc. 

(‘‘Sunbelt’’). Sunbelt is a mortgage 

broker with headquarters in Clearwater, 

Florida. Sunbelt collects sensitive 

customer information, including 

customer names, social security 

numbers, credit histories, bank account 

numbers, and income tax returns, and is 

a ‘‘financial institution’’ subject to the 

Gramm-Leach-Bliley Act’s Standards for 

Safeguarding Customer Information 

Rule, 16 CFR part 314 (‘‘Safeguards 

Rule’’) and Privacy of Consumer 

Financial Information Rule, 16 CFR part 

313 (‘‘Privacy Rule’’). 

The proposed consent agreement 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 Sunbelt’s 

alleged violations of the Safeguards and 

Privacy Rules. The Safeguards Rule, 

which became effective on May 23, 

2003, requires financial institutions to 

implement reasonable policies and 

procedures to ensure the security and 

confidentiality of customer information, 

including:

68152 Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Notices 

• Designating one or more employees 

to coordinate the information security 

program; 

• Identifying reasonably foreseeable 

internal and external risks to the 

security, confidentiality, and integrity of 

customer information, and assessing the 

sufficiency of any safeguards in place to 

control those risks; 

• Designing and implementing 

information safeguards to control the 

risks identified through risk assessment, 

and regularly testing or otherwise 

monitoring the effectiveness of the 

safeguards’ key controls, systems, and 

procedures; 

• Overseeing service providers, and 

requiring them by contract to protect the 

security and confidentiality of customer 

information; and 

• Evaluating and adjusting the 

information security program in light of 

the results of testing and monitoring, 

changes to the business operation, and 

other relevant circumstances. 

The Privacy Rule, which became 

effective on July 1, 2001, requires 

financial institutions to provide 

customers with clear and conspicuous 

notices that explain the financial 

institution’s information collection and 

sharing practices and allow customers 

to opt out of having their information 

shared with certain non-affiliated third 

parties. 

The Commission’s proposed 

complaint charges that Sunbelt failed to 

implement the protections required by 

the Safeguards Rule and, specifically, 

that it failed to: (1) Identify reasonably 

foreseeable internal and external risks to 

the security, confidentiality, and 

integrity of customer information; (2) 

implement information safeguards to 

control the risks to customer 

information and regularly test and 

monitor them; (3) develop, implement, 

and maintain a comprehensive written 

information security program; (4) 

oversee service providers and require 

them by contract to implement 

safeguards to protect respondent’s 

customer information; and (5) designate 

one or more employees to coordinate 

the information security program. The 

proposed complaint also alleges that 

Sunbelt failed to provide its online 

customers with the notice required by 

the Privacy Rule. 

The proposed order contains 

provisions designed to prevent Sunbelt 

from future practices similar to those 

alleged in the complaint. Specifically, 

Part I of the proposed order prohibits 

Sunbelt from violating the Safeguards 

Rule or the Privacy Rule. Part II of the 

proposed order requires that Sunbelt 

obtain, within 180 days after being 

served with the final order approved by 

the Commission, and on a biennial basis 

thereafter for ten (10) years, an 

assessment and report from a qualified, 

objective, independent third-party 

professional, certifying that: (1) Sunbelt 

has in place a security program that 

provides protections that meet or exceed 

the protections required by the 

Safeguards Rule and (2) Sunbelt’s 

security program is operating with 

sufficient effectiveness to provide 

reasonable assurance that the security, 

confidentiality, and integrity of 

consumer’s personal information has 

been protected. This provision is 

substantially similar to comparable 

provisions obtained in prior 

Commission orders under Section 5 of 

the FTC Act. See Tower Records, FTC 

Docket No. C–4110 (June 2, 2004); 

Guess?, Inc., FTC Docket No. C–4091 

(July 30, 2003); and Microsoft Corp.,

FTC Docket No. C–4069 (Dec. 20, 2002). 

Part II of the proposed order requires 

Sunbelt to retain documents relating to 

compliance. For the assessments and 

supporting documents, Sunbelt must 

retain the documents for three years 

after the date that each assessment is 

prepared. 

Parts III through VI of the proposed 

order are reporting and compliance 

provisions. Part III requires 

dissemination of the order now and in 

the future to persons with supervisory 

responsibilities. Part IV ensures 

notification to the FTC of changes in 

corporate status. Part V mandates that 

Sunbelt submit compliance reports to 

the FTC. 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 order or to modify its 

terms in any way.

By direction of the Commission. 

Donald S. Clark, 

Secretary.

[FR Doc. 04–25936 Filed 11–22–04; 8:45 am] 

BILLING CODE 6750–01–P

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Administration for Children and 

Families 

Submission for OMB Review; 

Comment Request 

Title: IV–E Foster Care and Adoption 

Assistance Financial Report (IV–E–1). 

OMB No.: 0970–0205. 

Titled: Financial Reporting Form. 

Description: This form is used by 

states, the District of Columbia and 

Puerto Rico9 to facilitate the reporting 

of expenditures for the Foster Care and 

Adoption Assistance programs. State 

agencies (including the District of 

Columbia and Puerto Rico) use this form 

to report data on a quarterly basis. The 

form provides specific data regarding 

financial disbursements, obligations and 

estimates. It provides states with a 

mechanism to request grant awards and 

certify the availability of state matching 

funds. Failure to collect this data would 

seriously compromise the 

Administration for Children and 

Families’ (ACF) ability to issue grant 

awards monitor expenditures. This form 

is also used to prepare the ACF budget 

submission to Congress. ACF is 

implementing the On-Line Data 

Collection System (OLDC) to allow 

grantees the option to electronically 

submit the data. 

Respondents: States, District of 

Columbia and Puerto Rico Annual 

Burden Estimates.

Instrument Number of

respondents 

Number of

responses per 

respondent

(per year) 

Average

burden hours 

per response 

Total burden 

hours 

IV–E 1 ............................................................................................................. 52 4 24.5 5,096 

IV–E–1 Proj. ..................................................................................................... 52 2 1 104 

Estimated Total Annual Burden 

Hours: 5,200. 

Additional Information: Copies of the 

proposed collection may be obtained by 

writing to the Administration for 

Children and Families, Office of 

Administration, Office of Information 

Services, 370 L’Enfant Promenade, SW.,