80 FR 51269 - NAICS Association, LLC; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

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

Page Range		51269-51270
FR Document		2015-20804
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 51269-51270]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20804]


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FEDERAL TRADE COMMISSION

[File No. 152 3138]


NAICS Association, LLC; 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/naicsconsent online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``NAICS Association, 
LLC--Consent Agreement; File No. 152 3138'' on your comment and file 
your comment online at https://ftcpublic.commentworks.com/ftc/naicsconsent by following the instructions on the web-based form. If 
you prefer to file your comment on paper, write ``NAICS Association, 
LLC--Consent Agreement; File No. 152 3138'' 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: Monique F. Einhorn, ((202) 326-2575), 
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 ``NAICS Association, LLC--Consent Agreement; File No. 152 
3138'' 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/naicsconsent 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 ``NAICS Association, LLC--
Consent Agreement; File No. 152 3138'' 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

[[Page 51270]]

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 
NAICS Association, LLC. (``NAICS'').
    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 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 NAICS made to consumers concerning its participation in the Safe 
Harbor privacy frameworks agreed upon by the U.S. and the European 
Union (``EU'') and the U.S. and Switzerland (collectively, ``Safe 
Harbor Frameworks''). The Safe Harbor Frameworks allow U.S. companies 
to transfer data outside the EU and Switzerland consistent with EU and 
Swiss law. To join the Safe Harbor Frameworks, 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 and Switzerland 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 Frameworks. 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 
Frameworks.
    NAICS provides services to assist companies in working with or 
understanding NAICS (``North American Industry Classification System'') 
and SIC (``Standard Industry Classification'') system codes. According 
to the Commission's complaint, NAICS has set forth on its Web site, 
http://www.naics.com/privacy-policy/, privacy policies and statements 
about its practices, including statements related to its participation 
in the Safe Harbor Frameworks.
    The Commission's complaint alleges that NAICS falsely represented 
that it was a ``current'' participant in the Safe Harbor Frameworks 
when, in fact, from February 2014 until April 2015, NAICS was not a 
``current'' participant in the Safe Harbor Frameworks. The Commission's 
complaint alleges that in February 2013, NAICS submitted its self-
certification to the Safe Harbor Frameworks. NAICS did not renew its 
self-certification in February 2014 and Commerce subsequently updated 
NAICS's status to ``not current'' on its public Web site.
    Part I of the proposed order prohibits NAICS from making 
misrepresentations about its membership in any privacy or security 
program sponsored by the government or any other self-regulatory or 
standard-setting organization, including, but not limited to, the U.S.-
EU Safe Harbor Framework and the U.S.-Swiss Safe Harbor Framework.
    Parts II through VI of the proposed order are reporting and 
compliance provisions. Part II requires NAICS 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 NAICS 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. 2015-20804 Filed 8-21-15; 8:45 am]
BILLING CODE 6750-01-P
51270 Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices

Commission, Office of the Secretary, Frameworks. The listing of companies By direction of the Commission.
Constitution Center, 400 7th Street SW., indicates whether their self-certification Donald S. Clark,
5th Floor, Suite 5610 (Annex D), is ‘‘current’’ or ‘‘not current.’’ Secretary.
Washington, DC 20024. If possible, Companies are required to re-certify [FR Doc. 2015–20804 Filed 8–21–15; 8:45 am]
submit your paper comment to the every year in order to retain their status BILLING CODE 6750–01–P
Commission by courier or overnight as ‘‘current’’ members of the Safe Harbor
service. Frameworks.
Visit the Commission Web site at NAICS provides services to assist FEDERAL TRADE COMMISSION
http://www.ftc.gov to read this Notice companies in working with or
and the news release describing it. The [File No. 152 3185]
understanding NAICS (‘‘North
FTC Act and other laws that the American Industry Classification Forensics Consulting Solutions, LLC;
Commission administers permit the System’’) and SIC (‘‘Standard Industry Analysis of Proposed Consent Order
collection of public comments to Classification’’) system codes. to Aid Public Comment
consider and use in this proceeding as According to the Commission’s
appropriate. The Commission will complaint, NAICS has set forth on its AGENCY: Federal Trade Commission.
consider all timely and responsive Web site, http://www.naics.com/ ACTION: Proposed Consent Agreement.
public comments that it receives on or privacy-policy/, privacy policies and
before September 16, 2015. You can find SUMMARY: The consent agreement in this
statements about its practices, including
more information, including routine matter settles alleged violations of
statements related to its participation in
uses permitted by the Privacy Act, in federal law prohibiting unfair or
the Safe Harbor Frameworks.
the Commission’s privacy policy, at deceptive acts or practices. The attached
The Commission’s complaint alleges Analysis to Aid Public Comment
http://www.ftc.gov/ftc/privacy.htm. that NAICS falsely represented that it describes both the allegations in the
Analysis of Proposed Consent Order To was a ‘‘current’’ participant in the Safe draft complaint and the terms of the
Aid Public Comment Harbor Frameworks when, in fact, from consent order—embodied in the consent
The Federal Trade Commission February 2014 until April 2015, NAICS agreement—that would settle these
(‘‘FTC’’ or ‘‘Commission’’) has accepted, was not a ‘‘current’’ participant in the allegations.
subject to final approval, a consent Safe Harbor Frameworks. The
Commission’s complaint alleges that in DATES: Comments must be received on
agreement applicable to NAICS or before September 16, 2015.
Association, LLC. (‘‘NAICS’’). February 2013, NAICS submitted its
self-certification to the Safe Harbor ADDRESSES: Interested parties may file a
The proposed consent order has been
placed on the public record for thirty Frameworks. NAICS did not renew its comment at https://
(30) days for receipt of comments by self-certification in February 2014 and ftcpublic.commentworks.com/ftc/
interested persons. Comments received Commerce subsequently updated forensicsconsultingconsent online or on
during this period will become part of NAICS’s status to ‘‘not current’’ on its paper, by following the instructions in
the public record. After thirty days, the public Web site. the Request for Comment part of the
Commission will again review the Part I of the proposed order prohibits SUPPLEMENTARY INFORMATION section
agreement and the comments received, NAICS from making misrepresentations below. Write ‘‘Forensics Consulting
and will decide whether it should about its membership in any privacy or Solutions, LLC—Consent Agreement;
withdraw from the agreement and take security program sponsored by the File No. 152 3185’’ on your comment
appropriate action or make final the government or any other self-regulatory and file your comment online at
agreement’s proposed order. or standard-setting organization, https://ftcpublic.commentworks.com/
This matter concerns alleged false or including, but not limited to, the U.S.- ftc/forensicsconsultingconsent by
misleading representations that NAICS EU Safe Harbor Framework and the following the instructions on the web-
made to consumers concerning its U.S.-Swiss Safe Harbor Framework. based form. If you prefer to file your
participation in the Safe Harbor privacy Parts II through VI of the proposed comment on paper, write ‘‘Forensics
frameworks agreed upon by the U.S. and order are reporting and compliance Consulting Solutions, LLC—Consent
the European Union (‘‘EU’’) and the U.S. provisions. Part II requires NAICS to Agreement; File No. 152 3185’’ on your
and Switzerland (collectively, ‘‘Safe retain documents relating to its comment and on the envelope, and mail
Harbor Frameworks’’). The Safe Harbor compliance with the order for a five- your comment to the following address:
Frameworks allow U.S. companies to year period. Federal Trade Commission, Office of the
transfer data outside the EU and Part III requires dissemination of the Secretary, 600 Pennsylvania Avenue
Switzerland consistent with EU and order now and in the future to persons NW., Suite CC–5610 (Annex D),
Swiss law. To join the Safe Harbor with responsibilities relating to the Washington, DC 20580, or deliver your
Frameworks, a company must self- subject matter of the order. Part IV comment to the following address:
certify to the U.S. Department of ensures notification to the FTC of Federal Trade Commission, Office of the
Commerce (‘‘Commerce’’) that it changes in corporate status. Part V Secretary, Constitution Center, 400 7th
complies with a set of principles and mandates that NAICS submit an initial Street SW., 5th Floor, Suite 5610
related requirements that have been compliance report to the FTC, and make (Annex D), Washington, DC 20024.
deemed by the European Commission available to the FTC subsequent reports. FOR FURTHER INFORMATION CONTACT:
and Switzerland as providing Part VI is a provision ‘‘sunsetting’’ the Ruth Yodaiken, ((202) 326–2127),
‘‘adequate’’ privacy protection. These order after twenty (20) years, with Bureau of Consumer Protection, 600
tkelley on DSK3SPTVN1PROD with NOTICES

principles include notice, choice, certain exceptions. Pennsylvania Avenue NW., Washington,
onward transfer, security, data integrity, The purpose of this analysis is to DC 20580.
access, and enforcement. Commerce facilitate public comment on the SUPPLEMENTARY INFORMATION: Pursuant
maintains a public Web site, proposed order. It is not intended to to Section 6(f) of the Federal Trade
www.export.gov/safeharbor, where it constitute an official interpretation of Commission Act, 15 U.S.C. 46(f), and
posts the names of companies that have the proposed complaint or order or to FTC Rule 2.34, 16 CFR 2.34, notice is
self-certified to the Safe Harbor modify the order’s terms in any way. hereby given that the above-captioned

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Document Created: 2015-12-15 10:54:39
Document Modified: 2015-12-15 10:54:39
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		Monique F. Einhorn, ((202) 326-2575), Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		80 FR 51269