[Federal Register Volume 75, Number 45 (Tuesday, March 9, 2010)]
[Notices]
[Pages 10798-10799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4897]


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FEDERAL TRADE COMMISSION

[File No. 072 3165]


Richard J. Stanton; 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 March 29, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Richard J. 
Stanton, File No. 072 3165'' 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://public.commentworks.com/ftc/richardjstanton) 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/richardjstanton). 
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 ``Richard J. 
Stanton, File No. 072 3165'' 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: Laura Berger (202-326-2471), Bureau of

[[Page 10799]]

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 February 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 (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a consent 
order from Richard J. Stanton (``respondent''), the founder and former 
Chief Executive Officer of ControlScan, Inc. (``ControlScan''). The 
Commission has entered into a separate settlement with ControlScan to 
be filed in federal district court in the Northern District of Georgia.
    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 again will 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 involves respondent's marketing and distribution of a 
variety of online seal certification marks (``website seals'' or 
``seals'') for companies to display on their websites. The FTC 
complaint alleges that respondent violated Section 5(a) of the FTC Act 
by falsely representing to consumers that ControlScan had verified the 
privacy and data security practices of companies displaying its website 
seals, when in fact it had not. Specifically, the complaint alleges 
that respondent falsely represented to consumers that ControlScan had 
verified the privacy and security protections offered by a company 
displaying ControlScan's Business Background Reviewed, Registered 
Member, Privacy Protected, and Privacy Reviewed seals, and falsely 
represented how frequently ControlScan reviewed such companies' fitness 
to display each of these seals. In addition, the complaint alleges that 
respondent falsely represented to consumers how frequently ControlScan 
reviewed companies' fitness to display the Verified Secure seal. The 
FTC complaint describes, with specificity, the claims respondent made 
regarding ControlScan's verification of a company displaying each of 
the challenged seals, as well as the verification that ControlScan in 
fact conducted in connection with each seal.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts and practices in the future. 
Part I of the proposed order prohibits respondent from misrepresenting: 
1) the verification that is conducted concerning the protection that a 
company provides for the privacy and/or security of consumer 
information or the steps a company has taken to provide such 
protection; or 2) the frequency of such verification. Part II requires 
respondent to pay to the Commission $102,000 in equitable monetary 
relief. Parts III through VI of the proposed order are reporting and 
compliance provisions. Part III requires respondent to keep copies of 
documents relevant to compliance with the order for a five-year period. 
Part IV requires respondent to provide copies of the order to certain 
personnel of companies he controls, and Part V requires him to notify 
the Commission of changes in his employment or affiliation with any 
business that involves offering or providing seals or related products 
or services. Part VI mandates that respondent file an initial 
compliance report with the Commission and respond to other requests 
from FTC staff. Part VII 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 agreement and proposed order or to modify in any 
way its terms.
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. 2010-4897 Filed 3-8-10; 11:16 am]
BILLING CODE 6750-01-S