9842 Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices

TRANSACTIONS GRANTED EARLY TERMINATION BETWEEN: 100394 AND 101494—Continued

Name of acquiring person, name of acquired person, name of acquired entity PMN No. Date terminated

Corning Incorporated, J. Richard Fennell, Bioran Medical Laboratory ........................................................................... 94–2174 10/05/94

Harvest States Cooperatives, H.J. Heinz Company, Portion Pac, Inc ........................................................................... 94–2204 10/05/94

Neil M. Chur, Beverly Enterprises, Inc., Beverly Enterprises-Texas, Inc./Beverly California Corp ................................ 94–2209 10/05/94

Klaus J. Jacobs, Brock Candy Company, Brock Candy Company ................................................................................ 94–2220 10/05/94

Amoco Corporation, John M. Fox, MarkWest Energy Partners, Ltd ............................................................................... 94–2226 10/05/94

Beverly Enterprises, Inc., Eckerd Corporation, Insta-Care Holdings, Inc ....................................................................... 94–2229 10/05/94

Arrow Electronics, Inc, Anthem Electronics, Inc., Anthem Electronics, Inc .................................................................... 94–2235 10/05/94

Philip F. Anschutz, Trammell Crow Equity Partners, The Tabor Group Ltd./Tabor Acquisition #1, Inc ......................... 94–2244 10/05/94

Dawson Holdings, PLC, The Faxon Company, Inc., The Faxon Company, Inc ............................................................ 94–2246 10/07/94

Mobil Corporation, Mr. Irwin B. Singer, The Atlas Oil Company .................................................................................... 94–2159 10/12/94

The Clayton & Dubilier Private Equity Fund IV L.P., The Travelers Inc., American Capital Management & Research,

Inc ................................................................................................................................................................................. 94–2182 10/12/94

Liberty Brokerage Investment Corp., Liberty Brokerage Investment Corp., Patriot Securities, L.P ............................... 94–2196 10/12/94

ANTEC Corporation, Keptel, Inc., Keptel, Inc ................................................................................................................. 94–2214 10/12/94

Airgas, Inc., Post Welding Supply Company, Post Welding Supply Company .............................................................. 94–2239 10/12/94

Jerry Zucker, W.R. Grace & Co., W.R. Grace & Co.-Conn. ........................................................................................... 94–2240 10/12/94

David J. McGrath, Jr., c/o TAD Resources Int’l., Inc., Thomas L. Kirk, Kirk-Mayer, Inc. (KMI) ..................................... 94–2248 10/12/94

Charles Schusterman, Oryx Energy Company, Sun Operating Limited Partnership ..................................................... 94–2249 10/12/94

David H. Jacobs Trust (The), Jacobs Properties, Inc., Jacobs Properties, Inc .............................................................. 94–2253 10/12/94

Jacobs Realty Limited Partnership, Jacobs Properties, Inc., Jacobs Properties, Inc ..................................................... 94–2254 10/12/94

Jacobs Realty Limited Partnership, Richard E. Jacobs, Mall A Limited Partnership ..................................................... 94–2255 10/12/94

CGW Southeast Partners I, L.P., The BOC Group plc, Ohmeda, Inc ............................................................................ 94–2258 10/12/94

Lincolnshire Equity Fund, L.P., TRW Inc., TRW Inc ....................................................................................................... 94–2259 10/12/94

Clear Channel Communications, Inc., Mario F. Iacobelli, Heritage Broadcasting Company of New York .................... 94–2267 10/12/94

Creative Technology Ltd., Digicom Sytems, Inc., Digicom Systems, Inc ....................................................................... 94–2270 10/12/94

The NWNL Companies, Inc., USLICO Corporation, USLICO Corporation ..................................................................... 94–2281 10/12/94

AmeriQuest Technologies, Inc., Jonathan O. Lee, Ross White Enterprises, Inc ........................................................... 94–2282 10/12/94

Ford Motor Company, Amoco Corporation, Amoco Oil Company .................................................................................. 94–2284 10/12/94

Citicorp, Ground Round Restaurants, Inc., Ground Round Restaurants, Inc ................................................................. 94–2285 10/12/94

Foundation Health Corporation, Thomas-Davis Medical Centers, P.C., Thomas-Davis Medical Centers, P.C ............. 94–2184 10/13/94

K–III Communications Corporation, Irvin J. Borowsky, North American Publishing Company ...................................... 94–2286 10/13/94

The Methodist Hospital, St. Luke’s Episcopal Hospital, St. Luke’s Episcopal Hospital .................................................. 94–2289 10/13/94

St. Luke’s Episcopal Hospital, The Methodist Hospital, The Methodist Hospital ........................................................... 94–2290 10/13/94

IBP, Inc., Lakeside Farm Industries Ltd., Lakeside Farm Industries Ltd ........................................................................ 94–2210 10/14/94

Loral Corporation, K & F Industries, Inc., K & F Industries, Inc ..................................................................................... 94–2236 10/14/94

General Electric Company, NEWCO, NEWCO ............................................................................................................... 94–2269 10/14/94

American Premier Underwriters, Inc., Principal Mutual Life Insurance Company, Principal Casualty Insurance Company .............................................................................................................................................................................. 94–2273 10/14/94

Japan Nuclear Fuel Company, Ltd., NEWCO, NEWCO ................................................................................................. 94–2279 10/14/94

Central Life Assurance Company, American Mutual Life Insurance Company, American Mutual Life Insurance Company .............................................................................................................................................................................. 94–2288 10/14/94

FOR FURTHER INFORMATION CONTACT:

Sandra M. Peay or Renee A. Horton,

Contact Representatives, Federal Trade

Commission, Premerger Notification

Office, Bureau of Competition, Room

303, Washington, DC 20580, (202) 326–

3100.

By Direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95–4278 Filed 2–21–95; 8:45 am]

BILLING CODE 6750–01–M

[File No. 902 3149]

Equifax Credit Information Services,

Inc.; Proposed Consent Agreement

With Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair acts and practices and unfair

methods of competition, this consent

agreement, accepted subject to final

Commission approval, would require,

among other things, a Georgia-based

corporation to follow reasonable

procedures to assure maximum possible

accuracy when preparing consumer

reports as required by the Fair Credit

Reporting Act and to also maintain

reasonable procedures to limit the

furnishing of consumer reports to the

purposes listed under Section 604 of the

Fair Credit Reporting Act.

DATES: Comments must be received on

or before April 24, 1995.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th Street and Pennsylvania

Avenue NW., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:

Christopher W. Keller or Donald

d’Entremont, FTC/S–4429, Washington,

D.C. 20580. (202) 326–3159 or 326–

2736.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

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

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the following

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 sixty (60) days. Public comment is

invited. Such comments or views will

be considered by the Commission and

will be available for inspection and

copying at its principal office in

accordance with Section 4.9(b)(6)(ii) of

the Commission’s Rules of Practice (16

CFR 4.9(b)(6)(ii)).
Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices 9843

Agreement Containing Consent Order

To Cease and Desist

The Federal Trade Commission

having initiated an investigation of

certain acts and practices of Equifax

Credit Information Services, Inc., a

corporation, hereinafter sometimes

referred to as Equifax, and it now

appearing that Equifax is willing to

enter into an agreement containing an

order to cease and desist from the use

of the acts and practices being

investigated,

It is hereby agreed by and between

Equifax Credit Information Services,

Inc., by its duly authorized officers, and

its attorney, and counsel for the Federal

Trade Commission that:

1. Equifax Credit Information

Services, Inc., is a corporation

organized, existing, and doing business

under and by virtue of the laws of the

State of Georgia, with its office and

principal place of business located at

1600 Peachtree Street, N.W., Atlanta,

Georgia 30309.

2. Equifax is a consumer reporting

agency as defined in Section 603(f) of

the Fair Credit Reporting Act.

3. The Federal Trade Commission has

jurisdiction of the subject matter of this

proceeding and of Equifax, and the

proceeding is in the public interest.

4. Equifax admits all the jurisdictional

facts set forth in the draft complaint.

5. Equifax waives:

(a) Any further procedural steps;

(b) The requirement that the

Commission’s decision contain a

statement of findings of fact and

conclusions of law;

(c) All rights to seek judicial review

or otherwise to challenge or contest the

validity of the order entered into

pursuant to this agreement; and

(d) Any claim under the Equal Access

to Justice Act, 5 U.S.C. § 50 et seq.

6. This agreement and the order

contemplated hereby is for settlement

purposes only and neither its execution

by the parties hereto, acceptance by the

Commission nor entry of the agreed-to

order shall constitute any admission by

Equifax that any law has been violated.

Equifax specifically denies that it has

violated the Fair Credit Reporting Act in

any respect whatsoever.

7. This agreement shall not become

part of the public record of the

proceeding unless and until it is

accepted by the Commission. If this

agreement is accepted by the

Commission, it, together with the draft

complaint contemplated thereby, will be

placed on the public record for a period

of sixty (60) days and information in

respect thereto publicly released. The

Commission thereafter may either

withdraw its acceptance of this

agreement and so notify Equifax, in

which event it will take such action as

it may consider appropriate, or issue

and serve its complaint (in such form as

the circumstances may require) and

decision, in disposition of the

proceeding.

8. This agreement contemplates that,

if it is accepted by the Commission, and

if such acceptance is not subsequently

withdrawn by the Commission pursuant

to the provisions of § 2.34 of the

Commission’s Rules, the Commission

may, without further notice to Equifax,

(1) issue its complaint corresponding in

form and substance with the draft of

complaint and its decision containing

the following order to cease and desist

in disposition of the proceeding and (2)

make information public with respect

thereto. When so entered, the order to

cease and desist shall have the same

force and effect and may be altered,

modified or set aside in the same

manner and within the same time

provided by statute for other orders. The

order shall become final upon service.

Delivery by the U.S. Postal Service of

the complaint and decision containing

the agreed-to order to Equifax’s address

as stated in this agreement shall

constitute service. Equifax waives any

right it may have to any other manner

of service. The complaint may be used

in construing the terms of the order, and

no agreement, understanding,

representation, or interpretation not

contained in the order or the agreement

may be used to vary or contradict the

terms of the order.

9. Equifax has read the proposed

complaint and order contemplated

hereby. It understands that once the

order has been issued, it will be

required to file one or more compliance

reports showing that it has fully

complied with the order. Equifax further

understands that it may be liable for

civil penalties in the amount provided

by law for each violation of the order

after it becomes final.

Order

For the purpose of this order, the

following definitions apply:

‘‘Commission’’ means the Federal

Trade Commission.

‘‘Equifax’’ means Equifax Credit

Information Services, Inc., its successors

and assigns, and its officers, agents, and

employees acting in such capacity on its

behalf, directly or through any

corporation, subsidiary, division or

other device.

‘‘FCRA’’ means the Fair Credit

Reporting Act, 15 U.S.C. § 1681 et. seq.,

as the same from time to time may be

amended or modified by statute or by

regulations having the effect of statutory

provisions.

The terms ‘‘Person,’’ ‘‘Consumer,’’

‘‘Consumer Report,’’ ‘‘Consumer

Reporting Agency,’’ ‘‘File,’’ and

‘‘Employment Purposes’’ are defined as

set forth in Sections 603 (b), (c), (d), (f),

(g), and (h), respectively, of the FCRA,

15 U.S.C. §§ 1681a(b), 1681a(c),

1681a(d), 1681a(f), 1681a(g), and

1681a(h).

‘‘Permissible Purpose’’ means any of

the purposes listed in Section 604 of the

FCRA, 15 U.S.C. § 1681b, for which a

Consumer Reporting Agency may

lawfully furnish a Consumer Report.

‘‘Subscriber’’ means any Person who,

pursuant to an agreement with Equifax,

furnishes Credit Information to Equifax

or who requests or obtains a Consumer

Report from Equifax, excluding

Consumers, public record sources, and

independent contractors who provide

public record information.

‘‘Prescreening’’ means the process

whereby Equifax, utilizing Credit

Information, compiles or edits for a

Subscriber a list of Consumers who

meet specific criteria and provides this

list to the Subscriber or a third party

(such as a mailing service) on behalf of

the Subscriber for use in soliciting those

Consumers for an offer of credit.

‘‘Credit Information’’ means

information described by Section 603(d)

of the FCRA, which Equifax maintains

with respect to any Consumer, that

Equifax obtains from Subscribers, public

records or any other sources and from

which Equifax creates Consumer

Reports.

‘‘Mixed File’’ means a Consumer

Report in which some or all of the

information pertains to Consumers other

than the Consumer who is the subject of

that Consumer Report.

‘‘Consumer DTEC Report’’ means a

type of Consumer Report, by whatever

name, containing only Consumer

identifying information such as name,

telephone number, mother’s maiden

name, address, zip code, year of birth,

age, any generational designation, Social

Security number or substantially similar

identifiers, or any combination thereof,

together with information showing

employment or employment status.

‘‘Mixed-use Subscriber of Consumer

DTEC Reports’’ means the following

Subscribers who obtain Consumer DTEC

Reports: attorneys, law firms, detective

agencies, private investigators, and

protective services firms.

‘‘Joint User’’ means a user of a

Consumer Report jointly involved with

a Subscriber in a decision for which

there is a Permissible Purpose to obtain

the Consumer Report and for which the

Consumer Report was initially obtained.
9844 Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices

‘‘Approval Date’’ means the date on

which the Associate Director for

Enforcement of the Bureau of Consumer

Protection of the Commission notifies

respondent that the methodologies

required by Paragraph II.1. of this Order

have received final approval.

I

It is ordered that Equifax, in

connection with the collection,

preparation, assembly, maintenance and

furnishing of Consumer Reports and

Files, forthwith cease and desist from

failing to:

1. Maintain reasonable procedures

designed to limit the furnishing of

Consumer Reports to Subscribers that

have Permissible Purposes to receive

them under Section 604 of the FCRA, as

required by Section 607(a) of the FCRA.

Such procedures shall include but are

not limited to:

a. Continuing to require in Equifax’s

contracts that those who obtain

Consumer Reports from Equifax in the

form of lists developed through

Prescreening make a firm offer of credit

to each Consumer on the lists and take

reasonable steps to enforce those

contracts; and

b. Reasonable procedures to avoid (i)

including in a Consumer Report

information identifiable as pertaining to

a Consumer other than the Consumer for

whom a Permissible Purpose exists as to

such report; and (ii) displaying Files

identifiable as pertaining to more than

one Consumer in response to a

Subscriber request on one Consumer.

2. Maintain reasonable procedures

designed to limit the furnishing of

Consumer DTEC Reports to Subscribers

under the circumstances described by

Section 604 of the FCRA, as required by

Section 607(a) of the FCRA. Such

procedures shall include, with respect

to prospective Subscribers of Consumer

DTEC Reports, before furnishing any

Consumer DTEC Report to such

Subscribers, and with respect to current

Consumer DTEC Subscribers, within six

months after the effective date of this

order:

a. Adoption of procedures requiring

all Consumer DTEC Subscribers to

provide written certification that

Subscribers will not share or provide

Consumer DTEC Reports to anyone else,

other than the subject of the report or to

a Joint User;

b. Continuation of procedures

requiring all Consumer DTEC

Subscribers to provide written

identification of themselves; written

certification of the Permissible

Purpose(s) for which the Consumer

DTEC Reports are sought; and written

certification that the Consumer DTEC

Reports will be used for no other

purpose(s) than the purpose(s) certified;

c. With respect to each entity that

becomes a Consumer DTEC Report

Subscriber on or after the effective date

of this order, visitation to its place of

business to confirm the certifications

made pursuant to Paragraphs I.2.a. and

I.2.b. of this order;

d. Refusing to furnish Consumer

DTEC Reports to Subscribers who fail or

refuse to provide the certifications

required in Paragraphs I.2.a. and I.2.b. of

this order;

e. Requiring each Mixed-use

Subscription of Consumer DTEC

Reports to provide a separate

certification as to the Permissible

Purpose for each Consumer DTEC

Report it requests before the Consumer

DTEC Report is furnished to it; and

f. Terminating access to Consumer

DTEC Reports by any Subscriber who

Equifax knows or has reason to know

has obtained, after the effective date of

this order, a Consumer DTEC Report for

any purpose other than a Permissible

Purpose, unless that Subscriber

obtained such Report through

inadvertent error—i.e., a mechanical,

electronic, or clerical error that the

Subscriber demonstrates was

unintentional and occurred

notwithstanding the maintenance of

procedures reasonably designed to

avoid such errors.

3. Maintain reasonable procedures as

required by Section 607(a) of the FCRA

to avoid including in any Equifax

Consumer Report, other than a

Consumer Report described in Section

605(b) of the FCRA, any information,

notice or other statement that indicates

directly or indirectly the existence of

items of adverse information, the

reporting of which is prohibited by

Section 605(a) of the FCRA.

4. Follow reasonable procedures to

assure maximum possible accuracy of

the information concerning the

Consumer about whom the Consumer

Report relates, as required by Section

607(b) of the FCRA. Such procedures

shall include but are not limited to

reasonable precedures:

a. To detect, before Credit Information

is available for reporting by Equifax,

logical errors in such Credit

Information.

b. To prevent reporting to Subscribers

that Credit Information pertains to a

particular Consumer unless Equifax has

identified such information by at least

two of the following identifiers: (i) the

Consumer’s name, (ii) the Consumer’s

Social Security number, (iii) the

Consumer’s date of birth, (iv) the

Consumer’s account number with a

Subscriber or a similar identifier unique

to the Consumer; provided however

that,

(A) for public record information

only, if such public record information

does not contain at least two of the

above identifiers, Equifax may identify

such public record information by the

Consumer’s full name (including middle

initial and suffix, if available) together

with the Consumer’s full address

(including apartment number, if any);

and

(B) in the future Equifax may

alternatively identify Credit Information

(including public record information) by

a discrete identifier that is (i) unique to

the Consumer, (ii) not utilized by

Equifax at the time of execution of this

agreement, and (iii) not susceptible of

data entry error.

c. To assure that information in a

Consumer’s File that has been

determined by Equifax to be inaccurate

is not subsequently included in a

Consumer Report furnished on that

Consumer;

d. To prevent furnishing any

Consumer Report containing

information that Equifax knows or has

reason to believe is incorrect, including

information that the Consumer or the

source or repository of the information

has stated is not accurate (including that

it does not pertain to the Consumer)

unless Equifax has reason to believe that

the statement is frivolous or irrelevant

or, upon investigation, not valid;

e. To avoid the occurrence of Mixed

Files, including but not limited to

mixing of Files as the result of entry of

data by Subscribers when seeking

Consumer Reports; and

f. To avoid reporting in a Consumer

Report public record information that

pertains to Consumers other than the

Consumer who is the subject of the

Consumer Report, or which does not

accurately reflect information

concerning such subject as it appears on

public records, including but not

limited to following reasonable

procedures to sample, verify or

otherwise corroborate public record

information furnished by Equifax.

5. Maintain reasonable procedures so

that information disputed by a

Consumer that is deleted or corrected

upon reinvestigation by Equifax, does

not subsequently appear in uncorrected

form in Consumer Reports pertaining to

that Consumer; provided, however, that

if after Equifax has deleted such

information from the File, Equifax

reverifies such information, Equifax

may reinsert such information in the

File and report such information in

subsequent Consumer Reports

concerning that Consumer if, and only

if, Equifax advises the Consumer in
Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices 9845

writing that the information has been

reinserted.

6. Make disclosure of the nature and

substance of all information (except

medical information) in its Files on the

Consumer at the time of the request for

disclosure, as required by Sections 609

and 610 of the FCRA, to any Consumer

who has requested disclosure, has

provided proper identification as

required under Section 610 of the

FCRA, and has paid or accepted any

charges that may be imposed under

Section 612 of the FCRA.

7. Reinvestigate and record the

current status of items of information

the completeness or accuracy of which

is disputed by a Consumer, when the

Consumer directly conveys the dispute

to Equifax, and Equifax does not have

reason to believe the dispute is frivolous

or irrelevant. Such investigation shall

include but not limited to:

a. Completing any reinvestigation, i.e.,

verifiying, deleting, or modifying all

disputed items in the Consumer’s File,

with thirty (30) days of receipt of the

Consumer’s dispute; provided, however,

that if Equifax in good faith cannot

determine the nature of the Consumer’s

dispute, Equifax shall attempt to

determine the nature of the dispute by

contacting the Consumer by mail or

telephone within five (5) business days

of receiving the Consumer’s dispute,

and complete its reinvestigation within

thirty (30) days of the Consumer’s

response if Equifax in good faith can

then determine the nature of the

Consumer’s dispute;

b. Communicating to the source used

to verify the disputed information, a

summary of the nature and substance of

the Consumer’s dispute;

c. Accepting the Consumer’s version

of the disputed information and

correcting or deleting the disputed

information, when the Consumer

submits to Equifax documentation

obtained from the source of the

information in dispute which confirms

that the disputed information on the

Consumer Report was inaccurate or

incomplete, unless Equifax in good faith

has reason to doubt the authenticity of

the documentation, in which case

Equifax need not accept the Consumer’s

version of the dispute if it reinvestigates

the dispute by contacting the source of

the information and verifies that the

documentation is not authentic; and

d. Employing reasonable procedures

designed specifically to resolve (i)

Consumer disputes that Equifax has

reason to believe arise from Mixed Files,

and (ii) Consumer disputes that indicate

the repeated inclusion in Consumer

Reports of previously disputed

inaccurate or incomplete items.

8. Reinvestigate Consumer disputes in

accordance with Section 611 of the

FCRA. In connection therewith, Equifax

shall impose no requirements beyond

those in Section 611 of the FCRA,

including but not limited to

requirements that the Consumer:

a. Pay a fee for updating and

recording the current status of disputed

information;

b. Provide copies of identifying

documentation, including but not

limited to driver’s license, Social

Security card, and utility bills; and

c. Provide a written authorization

before reinvestigating information the

Consumer has disputed.

9. Continue, upon completion of the

reinvestigation of information disputed

by a Consumer, to write the Consumer

and provide the following:

a. The results of the reinvestigation

conducted by Equifax; and

b. A statement advising the Consumer

of the Consumer’s right to request that

Equifax furnish notification that

information has been deleted, or furnish

a copy or codification or summary of

any Consumer statement of explanation

of the dispute that has been filed by the

Consumer, to any Person specifically

designated by the Consumer who has

within the preceding two years received

a Consumer Report for Employment

Purposes, or within the preceding six

months received a Consumer Report for

any other purpose, which contained the

deleted or disputed information.

II

It is further ordered that Equifax shall,

annually for the five (5) year period

following the Approval Date, measure,

monitor, and test the extent to which

changes in its computer system,

including its algorithms, reduce the

incidence of Mixed Files.

1. In complying with this Section,

Equifax shall submit, within one

hundred eighty (180) days of the

effective date of this Order, for approval

to the Associate Director for

Enforcement, Bureau of Consumer

Protection, of the Federal Trade

Commission (‘‘ADE’’):

a. A proposed methodology for

establishing a baseline against which

changes may be measured, monitored,

and tested; and

b. A proposed methodology for

accurately measuring, monitoring,

testing, and reporting the effects of

changes made against the baseline

established under the preceding

paragraph.

2. For five (5) years following the

Approval Date, Equifax shall submit

annually to the ADE, in writing, the

results of its comparison using the

methodologies approved by the ADE as

specified in Paragraph II.1. above, and

to the extent not otherwise provided,

shall include with such reports the

results of a statistically significant

analysis to determine the incidence of

Mixed Files.

III

It is further ordered that Equifax shall,

annually for five (5) years following the

effective date of this order, submit the

following information to the ADE

within sixty (60) days of the anniversary

of the effective date of this order and

with respect to the preceding twelve

(12) month period:

1. The total number of File

disclosures to Consumers by Equifax;

2. The number of occasions on which

Consumers have informed Equifax that

they dispute information in files

maintained by Equifax;

3. The number of such disputes where

the disputed information was verified as

accurate;

4. The number of such disputes in

which information disputed was deleted

from, or modified in, the disputing

Consumer’s File, after reinvestigation

response; and

5. The number of such disputes in

which information disputed was deleted

from the disputing Consumer’s File

because no response to Equifax’s

verification inquiry was received within

thirty days.

IV

It is further ordered that, except for

Section III above, Equifax shall, until

the expiration of five (5) years following

the effective date of this order, maintain

and upon request make available to the

ADE for inspection and copying, all

documents demonstrating compliance

with this order. Such documents shall

include, but are not limited to,

representative copies of each form of

agreement or contract governing

Subscriber access to or use of Credit

Information, each periodic audit or

similar report concerning the testing or

monitoring of its systems for

preparation, maintenance, and

furnishing of Consumer Reports and

files, instructions given to employees

regarding compliance with the

provisions of this order, and any notices

provided to Subscribers in connection

with the terms of this order.

V

It is further ordered that Equifax shall

deliver a copy of this order to all of its

present and future management officials

having administrative or policy

responsibilities with respect to the

subject matter of this order.
9846 Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices

VI

It is further ordered that Equifax shall

notify the ADE at least thirty (30) days

prior to any proposed change in Equifax

that might affect compliance obligations

arising out of this order such as

dissolution, assignment, sale resulting

in the emergence of a successor

corporation, or the creation or

dissolution of subsidiaries.

VII

It is further ordered that Equifax shall,

within one hundred eighty (180) days of

service of this order, deliver to the ADE

a report, in writing, setting forth the

manner and form in which it has

complied with this order as of that date.

The Commission shall keep such report

and its contents, or any report,

document, or other information

provided under Sections II, III, or IV

above, or any notification provided

under Section VI above, strictly

confidential, in accordance with the

Commission’s Rules of Practice.

VIII

It is further ordered that if the FCRA

is amended (or other similar federal

legislation enacted) or the Commission

issues any interpretation of the FCRA,

relating to any obligation imposed on

Equifax herein, which creates any new

requirement for compliance with the

FCRA that directly conflicts with any

obligation imposed on Equifax by this

order, Equifax may conform the manner

in which it conducts its business as a

Consumer Reporting Agency or its use

of Credit Information to the

requirements of such statutory provision

or interpretation; provided, however,

that Equifax shall notify the ADE

promptly if it intends to change its

conduct as provided for in this Section,

and provided further that nothing in

this provision shall limit the right of the

FTC to challenge any determination of

direct conflict of Equifax hereunder and

to seek enforcement of Equifax’s

obligations under this order to the

extent such determination is erroneous.

For purposes of this order, and by way

of example only, a ‘‘direct conflict’’

between this order and a new statutory

amendment or interpretation shall

include a requirement in any such

amendment or interpretation that a

Consumer Reporting Agency complete a

task or obligation addressed in this

order in a greater period of time than is

specified in the order.

IX

This order does not address the issue

of disclosure under Section 609 of

Credit Information (whether or not

separately maintained in any File),

including but not limited to Credit

Information utilized for fraud alert or

similar application verification services,

which categorizes the identifiers on the

Consumer or categorizes any other data

on the Consumer and is susceptible of

being furnished to a Subscriber, and the

order does not in any way limit the right

of the Commission to take any

appropriate action after entry of this

order relating to this issue, nor does it

limit in any way Equifax’s defenses to

any such action.

Analysis of Proposed Consent Order to

Aid Public Comment

The Federal Trade Commission has

accepted, subject to final approval, an

agreement containing a consent order

from Equifax Credit Information

Services, Inc., a corporation (‘‘the

respondent’’). This agreement, among

other requirements, requires the

respondent to cease and desist from

failing to follow reasonable procedures

to assure maximum possible accuracy

when preparing consumer reports and

cease and desist from failing to maintain

reasonable procedures to limit the

furnishing of consumer reports to

subscribers that have permissible

purposes to receive them, such as

purposes encompassing credit

transactions involving the consumer,

employment and the underwriting of

insurance.

The proposed consent order has been

placed on the public record for sixty

(60) days for receipt of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

agreement and the comments received

and will decide whether it should

withdraw from the agreement and take

other appropriate action, or make final

the proposed order contained in the

agreement.

According to the complaint, the

respondent failed to take reasonable

steps to reduce the incidence of

inaccuracies and obsolete items of

information in the consumer reports it

furnished and failed to maintain and

follow reasonable procedures to assure

maximum possible accuracy of the

information contained in its consumer

reports.

The complaint also alleges that

respondent failed to limit the furnishing

of consumer reports to only those who

possessed a permissible purpose to

receive consumer reports. The

complaint further alleges that the

respondent failed adequately to give

disclosures of the nature and substance

of all information (except medical

information) when consumers properly

requested disclosure of the information

in their own files. The complaint

additionally alleges that the respondent

failed to properly reinvestigate disputed

items of information in consumer

reports.

The complaint alleges that by its

failures to comply with the Fair Credit

Reporting Act and pursuant to Section

621(a) of the Fair Credit Reporting Act,

respondent has engaged in unfair and

deceptive acts or practices in or

affecting commerce in violation of

Section 5(a)(1) of the Federal Trade

Commission Act.

The consent order contains provisions

designed to ensure that the respondent

does not engage in similar allegedly

illegal acts and practices in the future.

Specifically, Part I of the Order requires

the respondent to maintain reasonable

procedures to assure that information

placed in a consumer’s file belongs to

the consumer in question and is also

accurate, complete and up-to-date

without obsolete information. Further,

the Order requires respondent to

reinvestigate disputed items of

information in a consumer’s file in a

timely and reasonable manner, generally

within 30 days.

The consent order also contains

provisions requiring respondent to

maintain reasonable procedures to limit

the furnishing of consumer reports (and

specifically consumer reports in the

form of identification reports containing

employment information) to only those

with permissible purposes to receive

consumer reports. Further, the consent

order provides that respondent disclose

the nature and substance of all

information (except medical

information) in its files on a consumer

in response to a proper request for

disclosure from the consumer who is

the subject of the file.

Part II of the Order requires the

respondent to submit to the Commission

for approval a methodology by which

changes to the respondent’s computer

system will be measured. The incidence

of consumer reports containing

information of other consumers, not the

subject of the report, will be measured

against a baseline established by the

methodology to determine the efficacy

of the computer changes. These

measurements will be submitted for five

(5) years to the Commission in the form

of annual reports.

Part III of the Order requires the

respondent to annually for five (5) years

submit to the Commission information

concerning the numbers of disclosures

provided and disputes received by the

respondent.

Part IV of the Order requires the

respondent for a period of five years to
Federal Register / Vol. 60, No. 35 / Wednesday, February 22, 1995 / Notices 9847

maintain and make available all

documents demonstrating its

compliance with the Order.

Part V of the Order requires the

respondent to deliver a copy of the

Order to all of its present and future

management officials having

administrative responsibilities with

respect to the subject matter of the

Order.

Part VI of the Order requires the

respondent to notify the Commission at

least thirty (30) days prior to any

proposed change in its corporate

structure that may affect its compliance

with the Order.

Part VII of the Order requires the

respondent to file a written report with

the Commission within one hundred

eighty (180) days after service of the

Order detailing the manner and form in

which it has complied with the Order.

Part VIII of the Order allows

respondent to conform the manner in

which it conducts its business to any

FCRA amendment (or other similar

federal legislation enacted) or official

Commission interpretation which

relates to any obligation imposed on the

respondent by the Order and which

directly conflicts with an obligation

imposed by the Order.

Part IX of the Order specifically

reserves for future consideration the

issue of disclosure of fraud alert or

similar verification services to

consumers who properly request

disclosure under the FCRA.

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,

Seceretary.

[FR Doc. 95–4279 Filed 2–21–95; 8:45 am]

BILLING CODE 6750–01–M

[File No. 941 0132]

Tele-Communication, Inc.; Proposed

Consent Agreement With Analysis To

Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair acts and practices and unfair

methods of competition, this consent

agreement, accepted subject to final

Commission approval, would permit,

among other things, TeleCommunication, Inc. (TCI) to complete

its acquisition of TeleCable, on the

condition that it divest either its own

Columbus cable TV assets, or those of

TeleCable, within twelve months. If the

divestitures were not completed on

time, the consent agreement would

permit the Commission to appoint a

trustee to complete the transaction. In

addition, TCI, for ten years, would be

required to obtain Commission approval

before acquiring any cable TV system in

the Columbus, GA., area.

DATES: Comments must be received on

or before April 24, 1995.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Ronald Rowe, FTC/S–2105,

Washington, DC 20580, (202) 326–2610.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

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

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the following

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 sixty (60) days. Public comment is

invited. Such comments or views will

be considered by the Commission and

will be available for inspection and

copying at its principal office in

accordance with Section 4.9(b)(6)(ii) of

the Commission’s rules of Practice (16

CFR 4.9(b)(6)(ii)).

Agreement Containing Consent Order

The Federal Trade Commission

(‘‘Commission’’), having initiated an

investigation of the proposed

acquisition of the common stock of

TeleCable Corporation by TeleCommunications, Inc. and the proposed

merger of TeleCable Corporation into

TCI Communications, Inc., an entity

within Tele-Communications, Inc., and

it now appearing that TeleCommunications, Inc., hereinafter

sometimes referred to as ‘‘proposed

respondent,’’ is willing to enter into an

agreement containing an order to divest

certain assets, and to cease and desist

from making certain acquisitions, and

providing for other relief:

It is hereby agreed by and between

proposed respondent, by its duly

authorized officer and attorney, and

counsel for the Commission that:

1. Proposed respondent TeleCommunications, Inc. is a corporation

organized, existing, and doing business

under and by virtue of the laws of the

State of Delaware, with its principal

office and place of business at 5619 DTC

Parkway, Englewood, Colorado 80111.

2. Proposed respondent admits all the

jurisdictional facts set forth in the draft

of complaint.

3. Proposed respondent waives:

a. any further procedural steps;

b. the requirement that the

Commission’s decision contain a

statement of findings of fact and

conclusions of law;

c. all rights to seek judicial review or

otherwise to challenge or contest the

validity of the order entered pursuant to

this agreement; and

d. any claim under the Equal Access

to Justice Act.

4. This agreement shall not become

part of the public record of the

proceeding unless and until it is

accepted by the Commission. If this

agreement is accepted by the

Commission it, together with the draft of

complaint contemplated thereby, will be

placed on the public record for a period

of sixty (60) days and information in

respect thereto publicly released. The

Commission thereafter may either

withdraw its acceptance of this

agreement and so notify the proposed

respondent, in which event it will take

such action as it may consider

appropriate, or issue and serve its

complaint (in such form as the

circumstances may require) and

decision, in disposition of the

proceeding.

5. This agreement is for settlement

purposes only and does not constitute

an admission by proposed respondent

that the law has been violated as alleged

in the draft of complaint, or that the

facts as alleged in the draft complaint,

other than jurisdictional facts, are true.

6. This agreement contemplates that,

if it is accepted by the Commission, and

if such acceptance is not subsequently

withdrawn by the Commission pursuant

to the provisions of § 2.34 of the

Commission’s Rules, the Commission

may, without further notice to the

proposed respondent, (1) issue its

complaint corresponding in form and

substance with the draft of complaint

and its decision containing the

following order to divest and to cease

and desist in disposition of the

proceeding and (2) make information

public with respect thereto. When so

entered, the order to divest and to cease

and desist shall have the same force and

effect and may be altered, modified or

set aside in the same manner and within

the same time provided by statute for

other orders. The order shall become

final upon service. Delivery by the U.S.

Postal Service of the complaint and

decision containing the agreed-to order

to proposed respondent’s address as