80 FR 51266 - IOActive, Inc.; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 80, Issue 163 (August 24, 2015)

Page Range		51266-51267
FR Document		2015-20807
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. 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.
Federal Register, Volume 80 Issue 163 (Monday, August 24, 2015)
[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51266-51267]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20807]


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FEDERAL TRADE COMMISSION

[File No. 152 3187]


IOActive, 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 federal law prohibiting unfair or deceptive acts or 
practices. 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 September 16, 2015.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/ioactiveconsent online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``IOActive, Inc.--
Consent Agreement; File No. 152 3187'' on your comment and file your 
comment online at https://ftcpublic.commentworks.com/ftc/ioactiveconsent by following the instructions on the web-based form. If 
you prefer to file your comment on paper, write ``IOActive, Inc.--
Consent Agreement; File No. 152 3187'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Ruth Yodaiken, ((202) 326-2127), 
Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, 
DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing 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 August 17, 2015), on the World Wide Web at: 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before September 16, 
2015. Write ``IOActive, Inc.--Consent Agreement; File No. 152 3187'' on 
your comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone'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. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/ioactiveconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you file your comment on paper, write ``IOActive, Inc.--Consent 
Agreement; File No. 152 3187'' on your comment and on the envelope, and 
mail your comment to the following address: Federal Trade Commission, 
Office of the Secretary, 600 Pennsylvania Avenue

[[Page 51267]]

NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex D), Washington, DC 20024. If possible, submit your 
paper comment to the Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that 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 on or before September 16, 2015. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, a consent agreement applicable to 
IOActive, Inc. (``IOActive'').
    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 will again review the 
agreement and the comments received, and will decide whether it should 
withdraw from the agreement and take appropriate action or make final 
the agreement's proposed order.
    This matter concerns alleged false or misleading representations 
that the company made to consumers concerning its participation in the 
Safe Harbor privacy Framework agreed upon by the U.S. and the European 
Union (``EU'') (``U.S.-EU Safe Harbor Framework''). The U.S.-EU Safe 
Harbor Framework allows U.S. companies to transfer data outside the EU 
consistent with EU law. To join the U.S.-EU Safe Harbor Framework, a 
company must self-certify to the U.S. Department of Commerce 
(``Commerce'') that it complies with a set of principles and related 
requirements that have been deemed by the European Commission as 
providing ``adequate'' privacy protection. These principles include 
notice, choice, onward transfer, security, data integrity, access, and 
enforcement. Commerce maintains a public Web site, www.export.gov/safeharbor, where it posts the names of companies that have self-
certified to the Safe Harbor Framework. The listing of companies 
indicates whether their self-certification is ``current'' or ``not 
current.'' Companies are required to re-certify every year in order to 
retain their status as current members of the Safe Harbor Framework.
    IOActive provides security consulting services. According to the 
Commission's complaint, the company has set forth on its Web site, 
www.ioactive.com/privacy-policy.html, privacy policies and statements 
about its practices, including statements related to its participation 
in the U.S-EU Safe Harbor Framework.
    The Commission's complaint alleges that IOActive falsely 
represented that it was a current participant in the U.S.-EU Safe 
Harbor Framework when, in fact, from May 2012 until May 2015, IOActive 
was not a ``current'' participant in the U.S.-EU Safe Harbor Framework. 
The Commission's complaint alleges that in May 2009, IOActive submitted 
self-certification to the U.S.-EU Safe Harbor Framework and and its 
status was changed to ``current'' on Commerce's Web site. IOActive did 
not renew its self-certification in May 2012 and Commerce subsequently 
updated IOActive's status to ``not current'' on its public Web site.
    Part I of the proposed order prohibits IOActive from making 
misrepresentations about its membership in any privacy or security 
program sponsored by the government or any self-regulatory or standard-
setting organization, including, but not limited to, the U.S.-EU Safe 
Harbor Framework.
    Parts II through VI of the proposed order are reporting and 
compliance provisions. Part II requires IOActive to retain documents 
relating to its compliance with the order for a five-year period. Part 
III requires dissemination of the order now and in the future to 
persons with responsibilities relating to the subject matter of the 
order. Part IV ensures notification to the FTC of changes in corporate 
status. Part V mandates that IOActive submit an initial compliance 
report to the FTC, and make available to the FTC subsequent reports. 
Part VI 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 proposed complaint or order or to modify the 
order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2015-20807 Filed 8-21-15; 8:45 am]
BILLING CODE 6750-01-P
Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices 51267

NW., Suite CC–5610 (Annex D), companies that have self-certified to the By direction of the Commission.
Washington, DC 20580, or deliver your Safe Harbor Framework. The listing of Donald S. Clark,
comment to the following address: companies indicates whether their self- Secretary.
Federal Trade Commission, Office of the certification is ‘‘current’’ or ‘‘not [FR Doc. 2015–20807 Filed 8–21–15; 8:45 am]
Secretary, Constitution Center, 400 7th current.’’ Companies are required to re- BILLING CODE 6750–01–P
Street SW., 5th Floor, Suite 5610 certify every year in order to retain their
(Annex D), Washington, DC 20024. If status as current members of the Safe
possible, submit your paper comment to Harbor Framework. FEDERAL TRADE COMMISSION
the Commission by courier or overnight
service. IOActive provides security consulting [File No. 152 3199]
Visit the Commission Web site at services. According to the Commission’s
complaint, the company has set forth on Just Bagels Manufacturing, Inc.;
http://www.ftc.gov to read this Notice Analysis of Proposed Consent Order
and the news release describing it. The its Web site, www.ioactive.com/privacy-
policy.html, privacy policies and To Aid Public Comment
FTC Act and other laws that the
Commission administers permit the statements about its practices, including AGENCY: Federal Trade Commission.
collection of public comments to statements related to its participation in ACTION: Proposed Consent Agreement.
consider and use in this proceeding as the U.S-EU Safe Harbor Framework.
appropriate. The Commission will SUMMARY: The consent agreement in this
The Commission’s complaint alleges
consider all timely and responsive matter settles alleged violations of
that IOActive falsely represented that it federal law prohibiting unfair or
public comments that it receives on or was a current participant in the U.S.-EU
before September 16, 2015. You can find deceptive acts or practices. The attached
Safe Harbor Framework when, in fact, Analysis To Aid Public Comment
more information, including routine from May 2012 until May 2015, describes both the allegations in the
uses permitted by the Privacy Act, in
IOActive was not a ‘‘current’’ draft complaint and the terms of the
the Commission’s privacy policy, at
participant in the U.S.-EU Safe Harbor consent order—embodied in the consent
http://www.ftc.gov/ftc/privacy.htm.
Framework. The Commission’s agreement—that would settle these
Analysis of Proposed Consent Order To complaint alleges that in May 2009, allegations.
Aid Public Comment IOActive submitted self-certification to
DATES: Comments must be received on
The Federal Trade Commission the U.S.-EU Safe Harbor Framework and
or before September 16, 2015.
(‘‘FTC’’ or ‘‘Commission’’) has accepted, and its status was changed to ‘‘current’’
ADDRESSES: Interested parties may file a
subject to final approval, a consent on Commerce’s Web site. IOActive did
comment at https://
agreement applicable to IOActive, Inc. not renew its self-certification in May
ftcpublic.commentworks.com/ftc/
(‘‘IOActive’’). 2012 and Commerce subsequently
The proposed consent order has been justbagelsconsent online or on paper, by
updated IOActive’s status to ‘‘not
placed on the public record for thirty following the instructions in the
current’’ on its public Web site. Request for Comment part of the
(30) days for receipt of comments by
Part I of the proposed order prohibits SUPPLEMENTARY INFORMATION section
interested persons. Comments received
during this period will become part of IOActive from making below. Write ‘‘Just Bagels
the public record. After thirty (30) days, misrepresentations about its Manufacturing, Inc.—Consent
the Commission will again review the membership in any privacy or security Agreement; File No. 152 3199’’ on your
agreement and the comments received, program sponsored by the government comment and file your comment online
and will decide whether it should or any self-regulatory or standard-setting at https://ftcpublic.commentworks.com/
withdraw from the agreement and take organization, including, but not limited ftc/justbagelsconsent by following the
appropriate action or make final the to, the U.S.-EU Safe Harbor Framework. instructions on the Web-based form. If
agreement’s proposed order. Parts II through VI of the proposed you prefer to file your comment on
This matter concerns alleged false or order are reporting and compliance paper, write ‘‘Just Bagels Manufacturing,
misleading representations that the Inc.—Consent Agreement; File No. 152
provisions. Part II requires IOActive to
company made to consumers 3199’’ on your comment and on the
retain documents relating to its
concerning its participation in the Safe envelope, and mail your comment to the
compliance with the order for a five-
Harbor privacy Framework agreed upon following address: Federal Trade
year period. Part III requires Commission, Office of the Secretary,
by the U.S. and the European Union dissemination of the order now and in
(‘‘EU’’) (‘‘U.S.-EU Safe Harbor 600 Pennsylvania Avenue NW., Suite
the future to persons with CC–5610 (Annex D), Washington, DC
Framework’’). The U.S.-EU Safe Harbor responsibilities relating to the subject
Framework allows U.S. companies to 20580, or deliver your comment to the
matter of the order. Part IV ensures following address: Federal Trade
transfer data outside the EU consistent notification to the FTC of changes in
with EU law. To join the U.S.-EU Safe Commission, Office of the Secretary,
corporate status. Part V mandates that Constitution Center, 400 7th Street SW.,
Harbor Framework, a company must
IOActive submit an initial compliance 5th Floor, Suite 5610 (Annex D),
self-certify to the U.S. Department of
report to the FTC, and make available to Washington, DC 20024.
Commerce (‘‘Commerce’’) that it
the FTC subsequent reports. Part VI is FOR FURTHER INFORMATION CONTACT:
complies with a set of principles and
a provision ‘‘sunsetting’’ the order after Emily B. Robinson, ((214) 979–9386),
related requirements that have been
twenty (20) years, with certain Federal Trade Commission, Southwest
deemed by the European Commission as
exceptions.
tkelley on DSK3SPTVN1PROD with NOTICES

providing ‘‘adequate’’ privacy Region, 1999 Bryan Street, Suite 2150,
protection. These principles include The purpose of this analysis is to Dallas, TX 75201.
notice, choice, onward transfer, facilitate public comment on the SUPPLEMENTARY INFORMATION: Pursuant
security, data integrity, access, and proposed order. It is not intended to to Section 6(f) of the Federal Trade
enforcement. Commerce maintains a constitute an official interpretation of Commission Act, 15 U.S.C. 46(f), and
public Web site, www.export.gov/ the proposed complaint or order or to FTC Rule 2.34, 16 CFR 2.34, notice is
safeharbor, where it posts the names of modify the order’s terms in any way. hereby given that the above-captioned

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Document Created: 2015-12-15 10:54:59
Document Modified: 2015-12-15 10:54:59
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Proposed Consent Agreement.
Dates		Comments must be received on or before September 16, 2015.
Contact		Ruth Yodaiken, ((202) 326-2127), Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		80 FR 51266