83 FR 50928 - SmartStart Employment Screening, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 83, Issue 196 (October 10, 2018)

Page Range		50928-50930
FR Document		2018-21946
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 complaint and the terms of the consent order--embodied in the consent agreement--that would settle these allegations.
Federal Register, Volume 83 Issue 196 (Wednesday, October 10, 2018)
[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 50928-50930]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21946]


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FEDERAL TRADE COMMISSION

[File No. 182 3154]


SmartStart Employment Screening, Inc.; Analysis 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

[[Page 50929]]

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 October 29, 2018.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write: ``SmartStart Employment 
Screening, Inc.'' on your comment, and file your comment online at 
https://ftcpublic.commentworks.com/ftc/smartstartconsent/ by following 
the instructions on the web-based form. If you prefer to file your 
comment on paper, write ``SmartStart Employment Screening, Inc.; File 
No. 1823154'' 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: 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, 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 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 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 September 27, 2018), on the World Wide Web, 
at https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before October 29, 
2018. Write ``SmartStart Employment Screening, Inc.; File No. 1823154'' 
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 website, at https://www.ftc.gov/policy/public-comments.
    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/smartstartconsent/ 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 website.
    If you prefer to file your comment on paper, write ``SmartStart 
Employment Screening, Inc.; File No. 1823154'' 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.
    Because your comment will be placed on the publicly accessible FTC 
website at http://www.ftc.gov, you are solely responsible for making 
sure that your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else'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, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
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)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). 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). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the public FTC website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC website, 
unless you submit a confidentiality request that meets the requirements 
for such treatment under FTC Rule 4.9(c), and the General Counsel 
grants that request.
    Visit the FTC website 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 October 29, 2018. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

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 
SmartStart Employment Screening, Inc. (``SmartStart'' or ``the 
company'').
    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 SmartStart made to consumers concerning its participation in the 
Privacy Shield framework agreed upon by the U.S. and the European Union 
(``EU''). The Privacy Shield framework allows U.S. companies to 
transfer data outside the EU consistent with EU law. To join the EU-
U.S. Privacy Shield

[[Page 50930]]

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. The principles include 
notice; choice; accountability for onward transfer; security; data 
integrity and purpose limitation; access; and recourse, enforcement, 
and liability. The related requirements include, for example, securing 
an independent recourse mechanism to handle any disputes about how the 
company handles information about EU citizens. Commerce reviews these 
applications for self-certification and maintains a public website, 
https://www.privacyshield.gov/list, where it posts the names of 
companies that have self-certified to the EU-U.S. Privacy Shield 
framework and completed the requirements for certification. The listing 
of companies indicates whether their self-certification is current. 
Companies are required to re-certify every year in order to retain 
their status as current members of the EU-U.S. Privacy Shield 
framework.
    SmartStart offers background and employment screening services. 
According to the Commission's complaint, the company has set forth on 
its website, http://www.smartstartemploymentscreeninginc.com, privacy 
policies and statements about its practices, including statements 
related to the status of its participation in the EU-U.S. Privacy 
Shield framework.
    The Commission's complaint alleges that SmartStart deceptively 
represented that it was a current participant in the EU-U.S. Privacy 
Shield framework when, in fact, it was not. The complaint also alleges 
that the company deceptively represented that it would abide by the EU-
U.S. Privacy Shield framework principles, but did not do so. The 
principles include a requirement that if a company ceases to 
participate in the EU-U.S. Privacy Shield framework, it must affirm to 
Commerce that it will continue to apply the principles to personal 
information that it received during the time it participated in the 
program, but according to the complaint, SmartStart did not make such 
an affirmation.
    Part I of the proposed order prohibits the company 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 EU-
U.S. Privacy Shield framework and the Swiss-U.S. Privacy Shield 
framework. Because the company had a certification that had lapsed, 
Part II requires the company to comply with the Privacy Shield 
requirement to continue to protect, on a going forward basis, personal 
information it had received while in the program, or return or delete 
the information.
    Parts III through VII of the proposed order are reporting and 
compliance provisions. Part III requires acknowledgement 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 IV 
ensures notification to the FTC of changes in corporate status and 
mandates that the company submit an initial compliance report to the 
FTC. Part V requires the company to retain documents relating to its 
compliance with the order for a five-year period.
    Part VI mandates that the company make available to the FTC 
information or subsequent compliance reports, as requested. Part VII 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, Commissioner Wilson not 
participating.
Donald S. Clark,
Secretary.
[FR Doc. 2018-21946 Filed 10-9-18; 8:45 am]
 BILLING CODE 6750-01-P
50928 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices

confidential’’—as provided by Section This matter concerns alleged false or Part I of the proposed order prohibits
6(f) of the FTC Act, 15 U.S.C. 46(f), and misleading representations that VenPath the company from making
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— made to consumers concerning its misrepresentations about its
including in particular competitively participation in the Privacy Shield membership in any privacy or security
sensitive information such as costs, framework agreed upon by the U.S. and program sponsored by the government
sales statistics, inventories, formulas, the European Union (‘‘EU’’). The or any other self-regulatory or standard-
patterns, devices, manufacturing Privacy Shield framework allows U.S. setting organization, including, but not
processes, or customer names. companies to transfer data outside the limited to, the EU–U.S. Privacy Shield
Comments containing material for EU consistent with EU law. To join the framework and the Swiss-U.S. Privacy
which confidential treatment is EU–U.S. Privacy Shield framework, a Shield framework. Because the
requested must be filed in paper form, company must self-certify to the U.S. company had a certification that had
must be clearly labeled ‘‘Confidential,’’ Department of Commerce (‘‘Commerce’’) lapsed, Part II requires the company to
and must comply with FTC Rule 4.9(c). that it complies with a set of principles comply with the Privacy Shield
In particular, the written request for and related requirements that have been requirement to continue to protect, on a
confidential treatment that accompanies deemed by the European Commission as going forward basis, personal
the comment must include the factual providing ‘‘adequate’’ privacy information it had received while in the
and legal basis for the request, and must protection. The principles include program, or return or delete the
identify the specific portions of the notice; choice; accountability for information.
comment to be withheld from the public onward transfer; security; data integrity Parts III through VII of the proposed
record. See FTC Rule 4.9(c). Your and purpose limitation; access; and order are reporting and compliance
comment will be kept confidential only recourse, enforcement, and liability. The provisions. Part III requires
if the General Counsel grants your related requirements include, for acknowledgement of the order and
request in accordance with the law and example, securing an independent dissemination of the order now and in
the public interest. Once your comment recourse mechanism to handle any the future to persons with
has been posted on the public FTC disputes about how the company responsibilities relating to the subject
website—as legally required by FTC handles information about EU citizens. matter of the order. Part IV ensures
Rule 4.9(b)—we cannot redact or Commerce reviews these applications notification to the FTC of changes in
remove your comment from the FTC for self-certification and maintains a corporate status and mandates that the
website, unless you submit a public website, https:// company submit an initial compliance
confidentiality request that meets the www.privacyshield.gov/list, where it report to the FTC. Part V requires the
requirements for such treatment under posts the names of companies that have company to retain documents relating to
FTC Rule 4.9(c), and the General self-certified to the EU–U.S. Privacy its compliance with the order for a five-
Counsel grants that request. Shield framework and completed the year period.
Visit the FTC website at http:// requirements for certification. The Part VI mandates that the company
www.ftc.gov to read this Notice and the listing of companies indicates whether make available to the FTC information
news release describing it. The FTC Act their self-certification is current. or subsequent compliance reports, as
and other laws that the Commission Companies are required to re-certify requested. Part VII is a provision
administers permit the collection of every year in order to retain their status ‘‘sunsetting’’ the order after twenty (20)
public comments to consider and use in as current members of the EU–U.S. years, with certain exceptions.
this proceeding, as appropriate. The Privacy Shield framework. The purpose of this analysis is to
Commission will consider all timely VenPath offers data analytics services facilitate public comment on the
and responsive public comments that it related to mobile apps. According to the proposed order. It is not intended to
receives on or before October 29, 2018. Commission’s complaint, the company constitute an official interpretation of
For information on the Commission’s has set forth on its website, https:// the proposed complaint or order or to
privacy policy, including routine uses www.venpath.net, privacy policies and modify the order’s terms in any way.
permitted by the Privacy Act, see statements about its practices, including By direction of the Commission,
https://www.ftc.gov/site-information/ statements related to the status of its Commissioner Wilson not participating.
privacy-policy. participation in the EU–U.S. Privacy Donald S. Clark,
Shield framework. Secretary.
Analysis of Proposed Consent Order To
The Commission’s complaint alleges [FR Doc. 2018–21947 Filed 10–9–18; 8:45 am]
Aid Public Comment
that VenPath deceptively represented BILLING CODE 6750–01–P
The Federal Trade Commission that it was a current participant in the
(‘‘FTC’’ or ‘‘Commission’’) has accepted, EU–U.S. Privacy Shield framework
subject to final approval, a consent when, in fact, it was not. The complaint FEDERAL TRADE COMMISSION
agreement applicable to VenPath, Inc. also alleges that the company
(‘‘VenPath’’ or ‘‘the company’’). deceptively represented that it would [File No. 182 3154]
The proposed consent order has been abide by the EU–U.S. Privacy Shield
SmartStart Employment Screening,
placed on the public record for thirty framework principles, but did not do so.
Inc.; Analysis To Aid Public Comment
(30) days for receipt of comments by The principles include a requirement
interested persons. Comments received that if a company ceases to participate AGENCY: Federal Trade Commission.
during this period will become part of in the EU–U.S. Privacy Shield ACTION: Proposed consent agreement.
amozie on DSK3GDR082PROD with NOTICES1

the public record. After thirty days, the framework, it must affirm to Commerce
Commission will again review the that it will continue to apply the SUMMARY: The consent agreement in this
agreement and the comments received, principles to personal information that matter settles alleged violations of
and will decide whether it should it received during the time it federal law prohibiting unfair or
withdraw from the agreement and take participated in the program, but deceptive acts or practices. The attached
appropriate action or make final the according to the complaint, VenPath did Analysis to Aid Public Comment
agreement’s proposed order. not make such an affirmation. describes both the allegations in the

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50930 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices

framework, a company must self-certify Shield framework. Because the Request for Comment part of the
to the U.S. Department of Commerce company had a certification that had SUPPLEMENTARY INFORMATION section
(‘‘Commerce’’) that it complies with a lapsed, Part II requires the company to below. Write: ‘‘IDmission LLC’’ on your
set of principles and related comply with the Privacy Shield comment, and file your comment online
requirements that have been deemed by requirement to continue to protect, on a at https://ftcpublic.commentworks.com/
the European Commission as providing going forward basis, personal ftc/idmissionconsent/ by following the
‘‘adequate’’ privacy protection. The information it had received while in the instructions on the web-based form. If
principles include notice; choice; program, or return or delete the you prefer to file your comment on
accountability for onward transfer; information. paper, write ‘‘IDmission LLC; File No.
security; data integrity and purpose Parts III through VII of the proposed 1823150’’ on your comment and on the
limitation; access; and recourse, order are reporting and compliance envelope, and mail your comment to the
enforcement, and liability. The related provisions. Part III requires following address: Federal Trade
requirements include, for example, acknowledgement of the order and Commission, Office of the Secretary,
securing an independent recourse dissemination of the order now and in 600 Pennsylvania Avenue NW, Suite
mechanism to handle any disputes the future to persons with CC–5610 (Annex D), Washington, DC
about how the company handles responsibilities relating to the subject 20580; or deliver your comment to:
information about EU citizens. matter of the order. Part IV ensures Federal Trade Commission, Office of the
Commerce reviews these applications notification to the FTC of changes in Secretary, Constitution Center, 400 7th
for self-certification and maintains a corporate status and mandates that the Street SW, 5th Floor, Suite 5610 (Annex
public website, https:// company submit an initial compliance D), Washington, DC 20024.
www.privacyshield.gov/list, where it report to the FTC. Part V requires the FOR FURTHER INFORMATION CONTACT:
posts the names of companies that have company to retain documents relating to Ruth Yodaiken (202–326–2127), Bureau
self-certified to the EU–U.S. Privacy its compliance with the order for a five- of Consumer Protection, Federal Trade
Shield framework and completed the year period. Commission, 600 Pennsylvania Avenue
requirements for certification. The Part VI mandates that the company NW, Washington, DC 20580.
listing of companies indicates whether make available to the FTC information
SUPPLEMENTARY INFORMATION: Pursuant
their self-certification is current. or subsequent compliance reports, as
Companies are required to re-certify to Section 6(f) of the Federal Trade
requested. Part VII is a provision
every year in order to retain their status Commission Act, 15 U.S.C. 46(f), and
‘‘sunsetting’’ the order after twenty (20)
as current members of the EU–U.S. FTC Rule 2.34, 16 CFR 2.34, notice is
years, with certain exceptions.
Privacy Shield framework. hereby given that the above-captioned
The purpose of this analysis is to
SmartStart offers background and consent agreement containing a consent
facilitate public comment on the
employment screening services. order to cease and desist, having been
proposed order. It is not intended to
According to the Commission’s filed with and accepted, subject to final
constitute an official interpretation of
complaint, the company has set forth on approval, by the Commission, has been
the proposed complaint or order or to
its website, http://www.smartstart placed on the public record for a period
modify the order’s terms in any way.
employmentscreeninginc.com, privacy of thirty (30) days. The following
By direction of the Commission, Analysis to Aid Public Comment
policies and statements about its Commissioner Wilson not participating.
practices, including statements related describes the terms of the consent
Donald S. Clark, agreement, and the allegations in the
to the status of its participation in the
EU–U.S. Privacy Shield framework. Secretary. complaint. An electronic copy of the
The Commission’s complaint alleges [FR Doc. 2018–21946 Filed 10–9–18; 8:45 am] full text of the consent agreement
that SmartStart deceptively represented BILLING CODE 6750–01–P package can be obtained from the FTC
that it was a current participant in the Home Page (for September 27, 2018), on
EU–U.S. Privacy Shield framework the World Wide Web, at https://
when, in fact, it was not. The complaint FEDERAL TRADE COMMISSION www.ftc.gov/news-events/commission-
also alleges that the company [File No. 182 3150] actions.
deceptively represented that it would You can file a comment online or on
abide by the EU–U.S. Privacy Shield IDmission LLC; Analysis To Aid Public paper. For the Commission to consider
framework principles, but did not do so. Comment your comment, we must receive it on or
The principles include a requirement before October 29, 2018. Write
that if a company ceases to participate AGENCY: Federal Trade Commission. ‘‘IDmission LLC; File No. 1823150’’ on
in the EU–U.S. Privacy Shield ACTION: Proposed consent agreement. your comment. Your comment—
framework, it must affirm to Commerce including your name and your state—
SUMMARY: The consent agreement in this
that it will continue to apply the will be placed on the public record of
matter settles alleged violations of
principles to personal information that this proceeding, including, to the extent
federal law prohibiting unfair or
it received during the time it practicable, on the public Commission
deceptive acts or practices. The attached
participated in the program, but website, at https://www.ftc.gov/policy/
Analysis to Aid Public Comment
according to the complaint, SmartStart public-comments.
describes both the allegations in the
did not make such an affirmation. Postal mail addressed to the
complaint and the terms of the consent
Part I of the proposed order prohibits Commission is subject to delay due to
order—embodied in the consent
the company from making heightened security screening. As a
amozie on DSK3GDR082PROD with NOTICES1

agreement—that would settle these
misrepresentations about its result, we encourage you to submit your
allegations.
membership in any privacy or security comments online. To make sure that the
program sponsored by the government DATES: Comments must be received on Commission considers your online
or any other self-regulatory or standard- or before October 29, 2018. comment, you must file it at https://
setting organization, including, but not ADDRESSES: Interested parties may file a ftcpublic.commentworks.com/ftc/
limited to, the EU–U.S. Privacy Shield comment online or on paper, by idmissionconsent/ by following the
framework and the Swiss-U.S. Privacy following the instructions in the instructions on the web-based form. If

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Document Created: 2018-10-10 17:39:07
Document Modified: 2018-10-10 17:39:07
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 October 29, 2018.
Contact		Ruth Yodaiken (202-326-2127), Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
FR Citation		83 FR 50928