2594 Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Notices 

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 

Commission Rule 4.9(c), 16 CFR 4.9(c). 

without disclosing, clearly and 

conspicuously, all of the terms required 

by TILA and Regulation Z, including the 

terms of repayment; the APR; and if the 

APR may be increased after 

consummation, that fact. 

Part V of the proposed order prohibits 

respondent, in connection with closedend credit, from stating a rate of finance 

charge without stating the rate as an 

APR, as required by TILA and 

Regulation Z. 

Part VI of the proposed order 

prohibits respondent from failing to 

comply in any respect with TILA or 

Regulation Z. 

Part VII of the proposed order 

contains a document retention 

requirement, the purpose of which is to 

ensure compliance with the proposed 

order. It requires that respondent 

maintain all records that will 

demonstrate compliance with the 

proposed order. 

Part VIII of the proposed order 

requires respondent to distribute copies 

of the order to various principals, 

officers, directors, and managers, and all 

current and future employees, agents 

and representatives having 

responsibilities with respect to the 

subject matter of the order. 

Part IX of the proposed order requires 

respondent to notify the Commission of 

any changes in its corporate structure 

that might affect compliance with this 

order. 

Part X of the proposed order requires 

respondent to file with the Commission 

one or more reports detailing 

compliance with the order. 

Part XI of the proposed order is a 

‘‘sunset’’ provision, dictating the 

conditions under which the order will 

terminate twenty years from the date it 

is issued or twenty years after a 

complaint is filed in federal court, by 

either the United States or the FTC, 

alleging any violations of the order. 

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. E9–840 Filed 1–14–09: 8:45 am] 

BILLING CODE 6750–01–S 

FEDERAL TRADE COMMISSION 

[File No. 082 3034] 

Michael Gendrolis dba Good Life 

Funding.; Analysis of Proposed 

Consent Order 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 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 February 9, 2009. 

ADDRESSES: Interested parties are 

invited to submit written comments. 

Comments should refer to ‘‘Good Life 

Funding, File No. 082 3034,’’ 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 135-H, 

600 Pennsylvania Avenue, N.W., 

Washington, D.C. 20580. Comments 

containing confidential material must be 

filed in paper form, must be clearly 

labeled ‘‘Confidential,’’ and must 

comply with Commission Rule 4.9(c). 

16 CFR 4.9(c) (2005).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 that do not 

contain any nonpublic information may 

instead be filed in electronic form by 

following the instructions on the webbased form at (http:// 

secure.commentworks.com/ftcGoodLifeFunding). To ensure that the 

Commission consider an electronic 

comment, you must file it on that webbased form. 

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 

website, to the extent practicable, at 

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 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: 

Carole Reynolds, Bureau of Consumer 

Protection, 600 Pennsylvania Avenue, 

NW, Washington, D.C. 20580, (202) 326- 

3230. 

SUPPLEMENTARY INFORMATION: Pursuant 

to section 6(f) of the Federal Trade 

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

46(f), and § 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 January 8, 2009), on the 

World Wide Web, at (http:// 

www.ftc.gov/os/2009/01/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 

(‘‘FTC’’) has accepted, subject to final 

approval, an agreement containing a 

consent order from Michael Gendrolis 

dba Good Life Funding (‘‘respondent’’). 

The proposed consent order has been 

placed on the public record for thirty 

(30) days for the receipt of comments by 

interested persons. Comments received 

during this period will become part of 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Notices 2595 

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. 

The complaint alleges that respondent 

engaged in practices that violate Section 

5(a) of the Federal Trade Commission 

Act, 15 U.S.C. § 45(a), Section 144 of the 

Truth in Lending Act (‘‘TILA’’), 15 

U.S.C. § 1664, and Section 226.24 of 

Regulation Z, 12 C.F.R. § 226.24. 

Section 5(a) of the FTC Act prohibits 

unfair or deceptive acts or practices. 

Respondent violated Section 5(a) of the 

FTC Act, because it disseminated or has 

caused to be disseminated home loan 

advertisements which offer a low 

monthly payment amount and/or 

payment rate, but fail to disclose, or fail 

to disclose adequately, that this monthly 

payment amount and/or payment rate: 

(1) apply only for a limited period of 

time, after which they will increase; (2) 

do not include the amount of interest 

that the consumer owes each month; 

and (3) are less than the monthly 

payment amount (including interest) 

and/or the interest rate that the 

consumer owes, with the difference 

added to the total amount due from the 

consumer or total loan balance. This 

information would be material to 

consumers shopping for a mortgage loan 

and the failure to disclose, or failure to 

disclose adequately, this information is 

a deceptive practice. 

TILA and Regulation Z require that 

closed-end credit advertisers who state 

a periodic payment amount must also 

provide additional information in the 

advertisement, including the terms of 

repayment; the annual percentage rate 

(‘‘APR’’); and if the APR may be 

increased after consummation, that fact. 

TILA and Regulation Z also require that 

if an advertisement states a rate of 

finance charge it must state the rate as 

an APR. Currently, Regulation Z also 

requires that if the advertisement states 

a payment rate, it must include 

additional disclosures. Respondent’s 

advertisements failed to disclose, or 

failed to disclose clearly and 

conspicuously, this information 

required by TILA and Regulation Z. 

Respondent’s failure to disclose this 

information undermined consumers’ 

ability to compare these offers to others 

in the marketplace. Through its law 

enforcement actions, the Commission 

intends to promote compliance with the 

disclosure requirements of TILA and 

Regulation Z, and to foster comparison 

shopping for mortgage loans. 

The proposed consent order contains 

provisions designed to prevent 

respondent from violating the FTC Act 

or failing to make clear and conspicuous 

disclosures required by TILA and 

Regulation Z, as has been amended, see 

73 Fed. Reg. 44,522 (July 30, 2008), and 

as may be further amended in the 

future. 

Part I of the proposed order prohibits 

respondent, in connection with closedend credit, from advertising a monthly 

payment amount unless respondent 

discloses, clearly and conspicuously 

and in close proximity to those 

representations, as applicable, that the 

advertised monthly payment amount: 

(1) applies only for a limited period of 

time, after which it will increase; (2) 

does not include the amount of interest 

that the consumer owes each month; 

and (3) is less than the monthly 

payment amount (including interest) 

that the consumer owes, with the 

difference added to the total amount 

due from the consumer or total loan 

balance. 

Part II of the proposed order prohibits 

respondent, in connection with closedend credit, from advertising a rate lower 

than the rate at which interest is 

accruing, regardless of whether the rate 

is referred to as an ‘‘effective rate,’’ a 

‘‘payment rate,’’ a ‘‘qualifying rate,’’ or 

any other term, provided that this 

provision does not prohibit 

advertisement of the ‘‘annual percentage 

rate’’ or ‘‘APR.’’ In light of respondent’s 

deceptive use of payment rates in its 

advertisements, and the Federal Reserve 

Board’s amendments to Regulation Z 

banning the use of such rates effective 

October 1, 2009, the proposed order 

prohibits respondent from advertising 

any such rate, to ensure that 

respondent’s advertisements do not 

deceive consumers. See 73 Fed. Reg. at 

44,608. 

Part III of the proposed order 

prohibits respondent, in connection 

with consumer credit, from making 

representations about the consumer’s 

current lender unless respondent 

adequately discloses respondent’s name 

and identity as the entity offering the 

loan. 

Part IV of the proposed order 

prohibits respondent, in connection 

with closed-end credit, from advertising 

the amount of any payment, the number 

of payments or the period of repayment, 

or the amount of any finance charge, 

without disclosing, clearly and 

conspicuously, all of the terms required 

by TILA and Regulation Z, including the 

terms of repayment; the APR; and if the 

APR may be increased after 

consummation, that fact. 

Part V of the proposed order prohibits 

respondent, in connection with closedend credit, from stating a rate of finance 

charge without stating the rate as an 

APR, as required by TILA and 

Regulation Z. 

Part VI of the proposed order 

prohibits respondent from failing to 

comply in any respect with TILA or 

Regulation Z. 

Part VII of the proposed order 

contains a document retention 

requirement, the purpose of which is to 

ensure compliance with the proposed 

order. It requires that respondent 

maintain all records that will 

demonstrate compliance with the 

proposed order. 

Part VIII of the proposed order 

requires respondent to distribute copies 

of the order to various principals, 

officers, directors, and managers, and all 

current and future employees, agents 

and representatives having 

responsibilities with respect to the 

subject matter of the order. 

Part IX of the proposed order requires 

respondent to notify the Commission of 

any changes in its corporate structure 

that might affect compliance with this 

order. 

Part X of the proposed order requires 

respondent to file with the Commission 

one or more reports detailing 

compliance with the order. 

Part XI of the proposed order is a 

‘‘sunset’’ provision, dictating the 

conditions under which the order will 

terminate twenty years from the date it 

is issued or twenty years after a 

complaint is filed in federal court, by 

either the United States or the FTC, 

alleging any violations of the order. 

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. E9–838 Filed 1–14–09: 8:45 am] 

BILLING CODE 6750–01–S 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Notice of Availability of Request for 

Information (RFI) Regarding the 

Potential Roles for HHS in Developing 

a Dynamic Environment To Encourage 

the Innovation and Diffusion of Medical 

Technologies That Enhance Health 

System Value 

AGENCY: Office of the Assistant 

Secretary for Planning and Evaluation, 

Department of Health and Human 

Services. 

ACTION: Request for information. 


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