81 FR 95140 - Turn Inc., Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 248 (December 27, 2016)

Page Range		95140-95141
FR Document		2016-31132

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 81 Issue 248 (Tuesday, December 27, 2016)

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95140-95141]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-31132]

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FEDERAL TRADE COMMISSION

[File No. 152 3099]

Turn 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 January 19, 2017.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/turnconsent online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``In the Matter of Turn
Inc., File No. 152 3099--Consent Agreement'' on your comment and file
your comment online at https://ftcpublic.commentworks.com/ftc/turnconsent by following the instructions on the web-based form. If you
prefer to file your comment on paper, write ``In the Matter of Turn
Inc., File No. 152 3099--Consent Agreement'' 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: Jamie E. Hine, (202) 326-2188,
Attorney, and Justin Brookman, (202) 326-2214, Attorney, Bureau of
Consumer Protection, Federal Trade Commission, 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 December 20, 2016), 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 January 19,
2017. Write ``In the Matter of Turn Inc., File No. 152 3099--Consent
Agreement'' 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/turnconsent 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 ``In the Matter of Turn
Inc., File No. 152 3099--Consent Agreement'' 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. 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 January 19, 2017. You can find more
information, including routine uses permitted by the Privacy Act, in

[[Page 95141]]

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 has accepted, subject to final
approval, an agreement containing a consent order from Turn Inc.
(``Turn'').
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 again will review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter involves Turn, a digital advertising company that
enables commercial brands and ad agencies to engage in targeted
advertising, which is the practice of tracking a consumer's activities
or characteristics to deliver ads tailored to the consumer's interests.
The FTC complaint alleges that Turn violated Section 5(a) of the FTC
Act by falsely representing to consumers the extent to which consumers
could restrict the company's tracking of their online activities and
the extent to which Turn's opt-out applied to mobile app advertising.
Specifically, the complaint alleges that until at least April 2015,
Turn's privacy policy misrepresented that consumers could prevent
Turn's tracking by blocking or otherwise limiting cookies. Contrary to
representations that consumers could opt out of tracking by instructing
their browser to ``stop accepting cookies,'' Turn tracked consumers by
using and synchronizing the Verizon X-UIDH header, a unique identifier
appended to the internet traffic of more than 100 million consumers on
the Verizon Wireless data network. Even if a consumer deleted cookies
or reset their device advertising identifier (e.g., Apple's IDFA or
Google's advertising ID), Turn would be able to recognize the user by
cross-referencing the unique X-UIDH header associated with an
individual consumer's device. In fact, if a Verizon Wireless user
deleted their cookies, Turn would attempt to set a new cookie
containing the same unique identifier as the cookie the user had
deleted, thereby maintaining the linkage between the consumer's browser
or device and an identifier associated with behavioral, demographic, or
tracking data.
In addition, the complaint alleges that Turn's privacy policy
misrepresented that its opt-out mechanism would be effective in
blocking targeted advertising on both mobile Web sites and in mobile
apps. Contrary to Turn's representations, Turn's opt-out applied only
to mobile browsers, and was not effective in blocking ads in mobile
applications.
The proposed consent order contains provisions designed to prevent
Turn from engaging in similar acts and practices in the future. Part I
of the proposed order prohibits Turn from misrepresenting (1) the
extent to which it collects, uses, discloses, retains, or shares
Covered Information; and (2) the extent to which users may limit,
control, or prevent Turn's collection, use, disclosure, retention, or
sharing of covered information. Part II of the proposed order requires
Turn, within thirty days following service of the order, to place a
clear and conspicuous hyperlink on the Turn Web site homepage that
states ``Consumer Opt Out of Targeted Advertising.'' The hyperlink must
take consumers to a clear and conspicuous disclosure that explains what
information Turn collects and uses for targeted advertising, and
provides an effective opt-out mechanism that allows consumers to
prevent Turn from collecting or using consumers' information. In
addition, Turn's Web site must describe to consumers the technologies
and methods it uses for targeted advertising. Part III of the proposed
order requires Turn to honor mobile operating system control signal
(e.g., Apple's IDFA or Google's advertising ID) to opt out of or
otherwise control or limit targeted advertising, where it knows or
reasonably should know that it is receiving such a signal.
Parts IV through VIII of the proposed order are reporting and
compliance provisions. Part IV requires acknowledgment of the order and
dissemination of the order now and in the future to persons with
managerial responsibilities relating to the subject matter of the
order. Part V ensures notification to the FTC of changes in corporate
status and mandates that Turn submit an initial compliance report to
the FTC. Part VI requires Turn to retain documents relating to its
compliance with the order for a five-year period. Part VII mandates
that Turn make available to the FTC information or subsequent
compliance reports, as requested. Part VIII 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 order or to modify in any way
the proposed orders terms.

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-31132 Filed 12-23-16; 8:45 am]
BILLING CODE 6750-01-P

Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95141

the Commission’s privacy policy, at effective in blocking targeted advertising modify in any way the proposed orders
http://www.ftc.gov/ftc/privacy.htm. on both mobile Web sites and in mobile terms.
apps. Contrary to Turn’s By direction of the Commission.
Analysis of Proposed Consent Order To
representations, Turn’s opt-out applied Donald S. Clark,
Aid Public Comment
only to mobile browsers, and was not
The Federal Trade Commission has Secretary.
effective in blocking ads in mobile
accepted, subject to final approval, an [FR Doc. 2016–31132 Filed 12–23–16; 8:45 am]
applications.
agreement containing a consent order The proposed consent order contains BILLING CODE 6750–01–P
from Turn Inc. (‘‘Turn’’). provisions designed to prevent Turn
The proposed consent order has been from engaging in similar acts and
placed on the public record for thirty practices in the future. Part I of the DEPARTMENT OF DEFENSE
(30) days for receipt of comments by proposed order prohibits Turn from
interested persons. Comments received misrepresenting (1) the extent to which GENERAL SERVICES
during this period will become part of it collects, uses, discloses, retains, or ADMINISTRATION
the public record. After thirty (30) days, shares Covered Information; and (2) the
the Commission again will review the extent to which users may limit, control, NATIONAL AERONAUTICS AND
agreement and the comments received or prevent Turn’s collection, use, SPACE ADMINISTRATION
and will decide whether it should disclosure, retention, or sharing of [OMB Control No. 9000–0196; Docket No.
withdraw from the agreement or make covered information. Part II of the 2016–0053; Sequence 33]
final the agreement’s proposed order. proposed order requires Turn, within
This matter involves Turn, a digital thirty days following service of the Submission for OMB Review; Payment
advertising company that enables order, to place a clear and conspicuous of Subcontractors
commercial brands and ad agencies to hyperlink on the Turn Web site
engage in targeted advertising, which is AGENCY: Department of Defense (DOD),
homepage that states ‘‘Consumer Opt
the practice of tracking a consumer’s General Services Administration (GSA),
Out of Targeted Advertising.’’ The
activities or characteristics to deliver and National Aeronautics and Space
hyperlink must take consumers to a
ads tailored to the consumer’s interests. Administration (NASA).
clear and conspicuous disclosure that
The FTC complaint alleges that Turn ACTION: Notice of request for public
explains what information Turn collects
violated Section 5(a) of the FTC Act by and uses for targeted advertising, and comments regarding an extension to an
falsely representing to consumers the provides an effective opt-out existing OMB clearance.
extent to which consumers could mechanism that allows consumers to SUMMARY: Under the provisions of the
restrict the company’s tracking of their prevent Turn from collecting or using
online activities and the extent to which Paperwork Reduction Act, the
consumers’ information. In addition, Regulatory Secretariat will be
Turn’s opt-out applied to mobile app Turn’s Web site must describe to
advertising. submitting to the Office of Management
consumers the technologies and and Budget (OMB) a request to review
Specifically, the complaint alleges methods it uses for targeted advertising.
that until at least April 2015, Turn’s and approve an extension of a currently
Part III of the proposed order requires approved information collection
privacy policy misrepresented that Turn to honor mobile operating system
consumers could prevent Turn’s requirement concerning Payment of
control signal (e.g., Apple’s IDFA or Subcontractors.
tracking by blocking or otherwise Google’s advertising ID) to opt out of or
limiting cookies. Contrary to otherwise control or limit targeted DATES: Submit comments on or before
representations that consumers could advertising, where it knows or January 26, 2017.
opt out of tracking by instructing their reasonably should know that it is ADDRESSES: Submit comments regarding
browser to ‘‘stop accepting cookies,’’ receiving such a signal. this burden estimate or any other aspect
Turn tracked consumers by using and Parts IV through VIII of the proposed of this collection of information,
synchronizing the Verizon X–UIDH order are reporting and compliance including suggestions for reducing this
header, a unique identifier appended to provisions. Part IV requires burden to: Office of Information and
the internet traffic of more than 100 acknowledgment of the order and Regulatory Affairs of OMB, Attention:
million consumers on the Verizon dissemination of the order now and in Desk Officer for GSA, Room 10236,
Wireless data network. Even if a the future to persons with managerial NEOB, Washington, DC 20503.
consumer deleted cookies or reset their responsibilities relating to the subject Additionally submit a copy to GSA by
device advertising identifier (e.g., matter of the order. Part V ensures any of the following methods:
Apple’s IDFA or Google’s advertising notification to the FTC of changes in • Regulations.gov: http://
ID), Turn would be able to recognize the corporate status and mandates that Turn www.regulations.gov. Submit comments
user by cross-referencing the unique X– submit an initial compliance report to via the Federal eRulemaking portal by
UIDH header associated with an the FTC. Part VI requires Turn to retain searching for OMB control number
individual consumer’s device. In fact, if documents relating to its compliance 9000–0196, Payment of Subcontractors.
a Verizon Wireless user deleted their with the order for a five-year period. Select the link ‘‘Submit a Comment’’
cookies, Turn would attempt to set a Part VII mandates that Turn make that corresponds with ‘‘9000–0196;
new cookie containing the same unique available to the FTC information or Payment of Subcontractors.’’ Follow the
identifier as the cookie the user had subsequent compliance reports, as instructions provided at the ‘‘Submit a
asabaliauskas on DSK3SPTVN1PROD with NOTICES

deleted, thereby maintaining the linkage requested. Part VIII is a provision Comment’’ screen. Please include your
between the consumer’s browser or ‘‘sunsetting’’ the order after twenty (20) name, company name (if any), and
device and an identifier associated with years, with certain exceptions. ‘‘9000–0196; Payment of
behavioral, demographic, or tracking The purpose of this analysis is to Subcontractors’’ on your attached
data. facilitate public comment on the document.
In addition, the complaint alleges that proposed order. It is not intended to • Mail: General Services
Turn’s privacy policy misrepresented constitute an official interpretation of Administration, Regulatory Secretariat
that its opt-out mechanism would be the proposed complaint order or to Division (MVCB), 1800 F Street NW.,

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Document Created: 2018-02-14 09:14:08
Document Modified: 2018-02-14 09:14:08

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 January 19, 2017.
Contact		Jamie E. Hine, (202) 326-2188, Attorney, and Justin Brookman, (202) 326-2214, Attorney, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		81 FR 95140