82 FR 12107 - SpyChatter, Inc.; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 38 (February 28, 2017)

Page Range		12107-12108
FR Document		2017-03888
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 82 Issue 38 (Tuesday, February 28, 2017)
[Federal Register Volume 82, Number 38 (Tuesday, February 28, 2017)]
[Notices]
[Pages 12107-12108]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03888]


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FEDERAL TRADE COMMISSION

[File No. 162 3251]


SpyChatter, 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 March 24, 2017.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/spychatterconsent 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 
SpyChatter, Inc., a corporation, File No. 162 3251'' on your comment 
and file your comment online at https://ftcpublic.commentworks.com/ftc/spychatterconsent by following the instructions on the web-based form. 
If you prefer to file your comment on paper, write ``In the Matter of 
SpyChatter, Inc., a corporation, File No. 162 3251'' 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 Einhorn, Attorney, (202) 326-
2575, 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 February 22, 2017), 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 March 24, 2017. 
Write ``In the Matter of SpyChatter, Inc., a corporation, File No. 162 
3251'' 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

[[Page 12108]]

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/spychatterconsent 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 
SpyChatter, Inc., a corporation, File No. 162 3251'' 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 March 24, 2017. 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 
SpyChatter, Inc. (``SpyChatter'').
    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 representations that SpyChatter 
made to consumers concerning its participation in the Asia-Pacific 
Economic Cooperation (``APEC'') Cross Border Privacy Rules (``CBPR'') 
system. The APEC CBPR system is a voluntary, enforceable mechanism that 
certifies a company's compliance with the principles in the CBPR and 
facilitates privacy-respecting transfers of data amongst APEC member 
economies. The APEC CBPR system is based on nine data privacy 
principles: Preventing harm, notice, collection limitation, use choice, 
integrity, security safeguards, access and correction, and 
accountability. Companies that seek to participate in the APEC CBPR 
system must undergo a review by an APEC-recognized Accountability 
Agent, which certifies companies that meet the standards.
    Companies under the FTC's jurisdiction are eligible to apply for 
APEC CBPR certification. The names of certified companies are posted on 
a public-facing Web site, www.cbprs.org. Companies must re-apply 
annually in order to retain their status as current participants in the 
APEC CBPR system. A company that falsely claims APEC CBPR participation 
may be subject to an enforcement action based on the FTC's deception 
authority under Section 5 of the FTC Act.
    SpyChatter is an app that is designed to enable private messaging. 
According to the Commission's complaint, SpyChatter has set forth on 
its Web site, http://www.spychatter.net/privacy-policy/, privacy 
policies and statements about its practices, including statements 
related to its participation in the APEC CBPR system.
    The Commission's complaint alleges that SpyChatter falsely 
represented that it was a participant in the APEC CBPR system when, in 
fact, it never sought or obtained certification.
    Part I of the proposed order prohibits SpyChatter from making 
misrepresentations about its participation in any privacy or security 
program sponsored by a government or any self-regulatory or standard-
setting organization, including, but not limited to, the APEC CBPR 
system.
    Parts II through VI of the proposed order are reporting and 
compliance provisions. Part II requires acknowledgment of the order and 
dissemination of the order now and in the future to persons with 
responsibilities relating to the subject matter of the order. Part III 
ensures notification to the FTC of changes in corporate status and 
mandates that SpyChatter submit an initial compliance report to the 
FTC. Part IV requires SpyChatter to retain documents relating to its 
compliance with the order. Part V mandates that SpyChatter make 
available to the FTC information or subsequent compliance reports, as 
requested. 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. 2017-03888 Filed 2-27-17; 8:45 am]
 BILLING CODE 6750-01-P
12108 Federal Register / Vol. 82, No. 38 / Tuesday, February 28, 2017 / Notices

4.9(c).1 Your comment will be kept interested persons. Comments received provisions. Part II requires
confidential only if the FTC General during this period will become part of acknowledgment of the order and
Counsel, in his or her sole discretion, the public record. After thirty days, the dissemination of the order now and in
grants your request in accordance with Commission will again review the the future to persons with
the law and the public interest. agreement and the comments received, responsibilities relating to the subject
Postal mail addressed to the and will decide whether it should matter of the order. Part III ensures
Commission is subject to delay due to withdraw from the agreement and take notification to the FTC of changes in
heightened security screening. As a appropriate action or make final the corporate status and mandates that
result, we encourage you to submit your agreement’s proposed order. SpyChatter submit an initial compliance
comments online. To make sure that the This matter concerns alleged false report to the FTC. Part IV requires
Commission considers your online representations that SpyChatter made to SpyChatter to retain documents relating
comment, you must file it at https:// consumers concerning its participation to its compliance with the order. Part V
ftcpublic.commentworks.com/ftc/ in the Asia-Pacific Economic mandates that SpyChatter make
spychatterconsent by following the Cooperation (‘‘APEC’’) Cross Border available to the FTC information or
instructions on the web-based form. If Privacy Rules (‘‘CBPR’’) system. The subsequent compliance reports, as
this Notice appears at http:// APEC CBPR system is a voluntary, requested. Part VI is a provision
www.regulations.gov/#!home, you also enforceable mechanism that certifies a ‘‘sunsetting’’ the order after twenty (20)
may file a comment through that Web company’s compliance with the years, with certain exceptions.
site. principles in the CBPR and facilitates The purpose of this analysis is to
If you file your comment on paper, privacy-respecting transfers of data facilitate public comment on the
write ‘‘In the Matter of SpyChatter, Inc., amongst APEC member economies. The proposed order. It is not intended to
a corporation, File No. 162 3251’’ on APEC CBPR system is based on nine constitute an official interpretation of
your comment and on the envelope, and data privacy principles: Preventing the proposed complaint or order or to
mail your comment to the following harm, notice, collection limitation, use modify the order’s terms in any way.
address: Federal Trade Commission, choice, integrity, security safeguards,
Office of the Secretary, 600 access and correction, and By direction of the Commission.
Pennsylvania Avenue NW., Suite CC– accountability. Companies that seek to Donald S. Clark,
5610 (Annex D), Washington, DC 20580, participate in the APEC CBPR system Secretary.
or deliver your comment to the must undergo a review by an APEC- [FR Doc. 2017–03888 Filed 2–27–17; 8:45 am]
following address: Federal Trade recognized Accountability Agent, which BILLING CODE 6750–01–P
Commission, Office of the Secretary, certifies companies that meet the
Constitution Center, 400 7th Street SW., standards.
5th Floor, Suite 5610 (Annex D), Companies under the FTC’s DEPARTMENT OF HEALTH AND
Washington, DC 20024. If possible, jurisdiction are eligible to apply for HUMAN SERVICES
submit your paper comment to the APEC CBPR certification. The names of
Commission by courier or overnight certified companies are posted on a Health Resources and Services
service. public-facing Web site, www.cbprs.org. Administration
Visit the Commission Web site at Companies must re-apply annually in
http://www.ftc.gov to read this Notice order to retain their status as current National Vaccine Injury Compensation
and the news release describing it. The participants in the APEC CBPR system. Program; List of Petitions Received
FTC Act and other laws that the A company that falsely claims APEC
CBPR participation may be subject to an AGENCY: Health Resources and Services
Commission administers permit the
enforcement action based on the FTC’s Administration (HRSA), Department of
collection of public comments to
deception authority under Section 5 of Health and Human Services (HHS).
consider and use in this proceeding as
appropriate. The Commission will the FTC Act. ACTION: Notice.
consider all timely and responsive SpyChatter is an app that is designed
to enable private messaging. According SUMMARY: HRSA is publishing this
public comments that it receives on or
to the Commission’s complaint, notice of petitions received under the
before March 24, 2017. You can find
SpyChatter has set forth on its Web site, National Vaccine Injury Compensation
more information, including routine
http://www.spychatter.net/privacy- Program (the program), as required by
uses permitted by the Privacy Act, in
policy/, privacy policies and statements the Public Health Service (PHS) Act, as
the Commission’s privacy policy, at
about its practices, including statements amended. While the Secretary of HHS is
http://www.ftc.gov/ftc/privacy.htm.
related to its participation in the APEC named as the respondent in all
Analysis of Proposed Consent Order To CBPR system. proceedings brought by the filing of
Aid Public Comment The Commission’s complaint alleges petitions for compensation under the
The Federal Trade Commission that SpyChatter falsely represented that program, the United States Court of
(‘‘FTC’’ or ‘‘Commission’’) has accepted, it was a participant in the APEC CBPR Federal Claims is charged by statute
subject to final approval, a consent system when, in fact, it never sought or with responsibility for considering and
agreement applicable to SpyChatter, Inc. obtained certification. acting upon the petitions.
(‘‘SpyChatter’’). Part I of the proposed order prohibits FOR FURTHER INFORMATION CONTACT: For
The proposed consent order has been SpyChatter from making information about requirements for
placed on the public record for thirty misrepresentations about its filing petitions, and the program in
mstockstill on DSK3G9T082PROD with NOTICES

(30) days for receipt of comments by participation in any privacy or security general, contact the Clerk, United States
program sponsored by a government or Court of Federal Claims, 717 Madison
1 In particular, the written request for confidential
any self-regulatory or standard-setting Place NW., Washington, DC 20005,
treatment that accompanies the comment must organization, including, but not limited (202) 357–6400. For information on
include the factual and legal basis for the request,
and must identify the specific portions of the to, the APEC CBPR system. HRSA’s role in the program, contact the
comment to be withheld from the public record. See Parts II through VI of the proposed Director, National Vaccine Injury
FTC Rule 4.9(c), 16 CFR 4.9(c). order are reporting and compliance Compensation Program, 5600 Fishers

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Document Created: 2017-02-27 23:53:23
Document Modified: 2017-02-27 23:53:23
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 March 24, 2017.
Contact		Monique Einhorn, Attorney, (202) 326- 2575, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		82 FR 12107