[Federal Register Volume 74, Number 50 (Tuesday, March 17, 2009)]
[Notices]
[Pages 11374-11376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5733]


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FEDERAL TRADE COMMISSION

[File No. 082 3114]


American Telecom Services, 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

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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 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 9, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to``American 
Telecom Services, File No. 082 3114'' 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).\1\
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    \1\ FTC 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 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://secure.commentworks.com/ftc-AmericanTelecom) (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://secure.commentworks.com/ftc-AmericanTelecom). 
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 ``American Telecom 
Services, Inc., File No. 082 3114`` 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, 
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: Linda K. Badger, FTC Western Region, 
San Francisco, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580, 
(415) 848-5151.

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 of 
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 11, 2009), on the World Wide Web, at (http://www.ftc.gov/os/2009/03/index.htm). 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, an agreement containing a consent order from American Telecom 
Services, Inc. (``ATS''). ATS, with headquarters in Atlanta, Georgia, 
is a distributor of telephones and phone services.
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception 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 or make final the agreement's proposed 
order.
    This matter concerns ATS's cash rebate promotions. To make its 
products more attractive to retailers and their customers, ATS has 
offered numerous mail-in rebates ranging from $5 to $50 in value. In 
implementing these promotions, ATS used third party fulfillment houses 
to process and pay rebate requests received from its customers. The 
complaint alleges that ATS engaged in deceptive practices relating to 
these rebate offers. Specifically, the complaint alleges that ATS 
falsely represented that purchasers of eligible ATS products will 
receive rebate checks within eight weeks after receipt of their 
properly completed requests. The proposed complaint further alleges 
that tens of thousands of consumers who submitted properly completed 
requests for rebates since 2006 have experienced substantial delays, 
including delays of one year or longer. According to the complaint,

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these delays have been due, in part, to ATS's inability to pay its 
third party fulfillment houses, as well as its refusal to timely pay 
third party fulfillment houses with which it had disagreements.
    The proposed order contains provisions designed to prevent ATS from 
engaging in similar acts and practices in the future. Part I of the 
proposed order prohibits ATS from misrepresenting the time in which any 
rebate will be mailed and from failing to provide any rebate within the 
time specified, or if no time is specified, within thirty days. This 
provision also prohibits the company from misrepresenting any material 
terms of any rebate program, including the status of or reasons for any 
delay in providing any rebate.
    Parts II through V of the proposed order are standard reporting and 
compliance provisions. Part VI provides that the order will terminate 
after twenty (20) years, with certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.
    By direction of the Commission.

Donald S. Clark
Secretary
[FR Doc. E9-5733 Filed 3-16-09: 8:45 am]
[BILLING CODE 6750-01-S]