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0423047

UNITED STATES OF AMERICA

BEFORE FEDERAL TRADE COMMISSION

COMMISSIONERS: Deborah Platt Majoras, Chairman

Orson Swindle

Thomas B. Leary

Pamela Jones Harbour

Jon Leibowitz

 

)

In the Matter of )

)

GATEWAY LEARNING CORP., ) DECISION AND ORDER

a corporation, ) Docket No. C-4120

)

 )

The Federal Trade Commission having initiated an investigation of certain acts and practices of the

Respondent named in the caption hereof, and the Respondent having been furnished thereafter with

a copy of a draft Complaint that the Bureau of Consumer Protection proposed to present to the

Commission for its consideration and which, if issued by the Commission, would charge the

Respondent with violation of the Federal Trade Commission Act, 15 U.S.C. § 45 et seq;

The Respondent, its attorney, and counsel for the Commission having thereafter executed an

Agreement Containing Consent Order (“Consent Agreement”), an admission by the Respondent of

all the jurisdictional facts set forth in the aforesaid draft Complaint, a statement that the signing of

said Consent Agreement is for settlement purposes only and does not constitute an admission by

Respondent that the law has been violated as alleged in such Complaint, or that the facts as alleged

in such Complaint, other than jurisdictional facts, are true, and waivers and other provisions as

required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined that it has reason

to believe that the Respondent has violated the said Act, and that a Complaint should issue stating

its charges in that respect, and having thereupon accepted the executed Consent Agreement and

placed such Consent Agreement on the public record for a period of thirty (30) days, and having

duly considered the comment filed thereafter by an interested party pursuant to Section 2.34 of its

Rules, now in further conformity with the procedure described in Section 2.34 of its Rules, the

Commission hereby issues its Complaint, makes the following jurisdictional findings and enters the

following Order:
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1. Respondent Gateway Learning Corporation is a Delaware corporation with its

principal office or place of business at 2900 South Harbor Boulevard, Suite 202, Santa Ana, CA

92704. 

2. The Federal Trade Commission has jurisdiction of the subject matter of this

proceeding and of the Respondents, and the proceeding is in the public interest.

ORDER

DEFINITIONS

For purposes of this Order, the following definitions shall apply:

1. “Personally identifiable information” or “personal information” shall mean individually

identifiable information from or about an individual including, but not limited to: (a) a first

and last name; (b) a home or other physical address, including street name and name of city

or town; (c) an email address or other online contact information, such as an instant

messaging user identifier or a screen name that reveals an individual’s email address; (d) a

telephone number; (e) a Social Security number; (f) a persistent identifier, such as a

customer number held in a “cookie” or processor serial number, that is combined with other

available data that identifies an individual; or (g) any other information from or about an

individual that is combined with any of (a) through (f) above.

2. Unless otherwise specified, “Respondent” shall mean Gateway Learning Corporation and

its successors and assigns and its officers, and its agents, representatives, and employees.

3. “Commerce” shall mean as defined in Section 4 of the Federal Trade Commission Act, 15

U.S.C. § 44.

I.

IT IS ORDERED that Respondent, directly or through any corporation, subsidiary, division,

or other device, in connection with the collection of personal information from or about an

individual, shall not misrepresent in any manner, expressly or by implication:

A. That Respondent will not sell, rent, or loan to third parties such personal information;

B. That Respondent will not provide to any third party personal information about

children under the age of thirteen;
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C. The manner by which Respondent will notify consumers of changes to its privacy

policy; or 

D. The manner in which Respondent will collect, use, or disclose personal information.

II.

IT IS FURTHER ORDERED that Respondent, directly or through any corporation,

subsidiary, division, or other device, shall not disclose to any third party any personal information

collected on the www.hop.com Web site prior to the date Gateway posted its revised privacy policy

permitting third-party sharing (June 20, 2003), unless Respondent obtains the express affirmative

(“opt-in”) consent of the consumers to whom such personal information relates. 

III.

IT IS FURTHER ORDERED that Respondent, in connection with the posting of any

privacy policy that contains a material change from the previous version of the policy, shall not

apply such changes to information collected from or about consumers before the date of the

posting, unless Respondent obtains the express affirmative (“opt-in”) consent of the consumers

to whom such personal information relates. 

IV.

IT IS FURTHER ORDERED that within five (5) days of the date of service of this Order,

Respondent, its successors and assigns, shall pay $4,608 to the United States Treasury as

disgorgement. Such payment shall be by cashier’s check or certified check made payable to the

Treasurer of the United States. In the event of any default in payment, which default continues

for more than ten (10) days beyond the due date of payment, Respondent shall also pay interest

as computed under 28 U.S.C. § 1961, which shall accrue on the unpaid balance from the date of

default until the date the balance is fully paid.

V.

IT IS FURTHER ORDERED that respondent Gateway Learning Corporation and its

successors and assigns shall, for a period of five (5) years after the date of issuance of this Order,

maintain and upon request make available to the Federal Trade Commission for inspection and

copying a print or electronic copy of all documents demonstrating their compliance with the

terms and provisions of this Order, including, but not limited to:

A. a sample copy of each different privacy statement or communication

relating to the collection of personally identifiable information containing

representations about how personally identifiable information will be used

or disclosed. Each Web page copy shall be dated and contain the full
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URL of the Web page where the material was posted online. Electronic

copies shall include all text and graphics files, audio scripts, and other

computer files used in presenting the information on the Web; provided,

however, that after creation of any Web page or screen in compliance with

this Order, Respondent shall not be required to retain a print or electronic

copy of any amended Web page or screen to the extent that the

amendment does not affect Respondent’s compliance obligations under

this Order;

B. a sample copy of each different document relating to any attempt by

Respondent to obtain the express affirmative (“opt-in”) consent of

consumers and copies of any documents demonstrating such consent

provided by consumers, as required by Parts II and III of this Order; and

C. all invoices, communications, and records relating to the disclosure of

personally identifiable information to third parties.

VI.

IT IS FURTHER ORDERED that respondent Gateway Learning Corporation and its

successors and assigns shall deliver a copy of this Order to all current and future principals,

officers, directors, and managers, and to all current and future employees, agents, and

representatives having responsibilities with respect to the subject matter of this Order. 

Respondent shall deliver this Order to such current personnel within thirty (30) days after the

date of service of this Order, and to such future personnel within thirty (30) days after the person

assumes such position or responsibilities.

VII.

IT IS FURTHER ORDERED that respondent Gateway Learning Corporation and its

successors and assigns shall notify the Commission at least thirty (30) days prior to any change

in the corporation(s) that may affect compliance obligations arising under this Order, including,

but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the

emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or

affiliate that engages in any acts or practices subject to this Order; the proposed filing of a

bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with

respect to any proposed change in the corporation about which a respondent learns less than

thirty (30) days prior to the date such action is to take place, the respondent shall notify the

Commission as soon as is practicable after obtaining such knowledge. All notices required by

this Part shall be sent by certified mail to the Associate Director, Division of Enforcement,

Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580.
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VIII.

IT IS FURTHER ORDERED that respondent Gateway Learning Corporation and its

successors and assigns shall, within sixty (60) days after service of this Order, and at such other

times as the Federal Trade Commission may require, file with the Commission a report, in

writing, setting forth in detail the manner and form in which it has complied with this Order.

IX.

This Order will terminate on September 10, 2024, or twenty (20) years from the most

recent date that the United States or the Federal Trade Commission files a complaint (with or

without an accompanying consent decree) in federal court alleging any violation of the Order,

whichever comes later; provided, however, that the filing of such a complaint will not affect the

duration of:

A. Any Part in this Order that terminates in less than twenty (20) years;

B. This Order’s application to any respondent that is not named as a defendant in

such complaint; and

C. This Order if such complaint is filed after the Order has terminated pursuant to

this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that a respondent

did not violate any provision of the Order, and the dismissal or ruling is either not appealed or

upheld on appeal, then the Order will terminate according to this Part as though the complaint

had never been filed, except that the Order will not terminate between the date such complaint is

filed and the later of the deadline for appealing such dismissal or ruling and the date such

dismissal or ruling is upheld on appeal.

By the Commission.

Donald S. Clark

Secretary

SEAL

ISSUED: September 10, 2004