The TJX Companies, Inc.; Analysis of Proposed Consent Order to Aid Public Comment, 18281-18283 [E8-6950]
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rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 73, No. 65 / Thursday, April 3, 2008 / Notices
test or monitor the effectiveness of the
safeguards’ key controls, systems, and
procedures.
∑ Develop and use reasonable steps to
select and retain service providers
capable of appropriately safeguarding
personal information they receive from
the respondent, and require service
providers by contract to implement and
maintain appropriate safeguards.
∑ Evaluate and adjust its information
security programs in light of the results
of testing and monitoring, any material
changes to operations or business
arrangements, or any other
circumstances that it knows or has
reason to know may have material
impact on its information security
program.
Part II of the proposed order requires
each respondent to obtain within 180
days, and on a biennial basis thereafter
for a period of twenty (20) years, an
assessment and report from a qualified,
objective, independent third-party
professional, certifying, among other
things, that: (1) it has in place a security
program that provides protections that
meet or exceed the protections required
by Part I of the proposed order; and (2)
its security program is operating with
sufficient effectiveness to provide
reasonable assurance that the security,
confidentiality, and integrity of
consumers’ personal information has
been protected.
Parts III through VII of the proposed
order are reporting and compliance
provisions. Part III requires respondents
to retain documents relating to their
compliance with the order. For most
records, the order requires that the
documents be retained for a five-year
period. For the third-party assessments
and supporting documents, respondents
must retain the documents for a period
of three years after the date that each
assessment is prepared. Part IV requires
dissemination of the order now and in
the future to persons with
responsibilities relating to the subject
matter of the order. Part V ensures
notification to the FTC of changes in
corporate status. Part VI mandates that
each respondent submit a compliance
report to the FTC within 180 days, and
periodically thereafter as requested. Part
VII is a provision ‘‘sunsetting’’ the order
after twenty (20) years, with certain
exceptions.
This is the Commission’s nineteenth
case to challenge the failure by a
company to implement reasonable
information security practices. Each of
the Commission’s cases to date has
alleged that a number of security
practices, taken together, failed to
provide reasonable and appropriate
security to prevent unauthorized access
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to consumers’ information. The
practices challenged in the cases have
included, but are not limited to: (1)
creating unnecessary risks to sensitive
information by storing it on computer
networks without a business need to do
so; (2) storing sensitive information on
networks in a vulnerable format; (3)
failing to use readily available security
measures to limit access to a computer
network through wireless access points
on the network; (4) failing to adequately
assess the vulnerability of a web
application and computer network to
commonly known or reasonably
foreseeable attacks; (5) failing to
implement simple, low-cost, and readily
available defenses to such attacks; and
(6) failing to use readily available
security measures to limit access
between computers on a network and
between such computers and the
Internet. This proposed action against
REI and Seisint is the first to challenge
alleged security failures involving the
security of passwords. Passwords are a
critical part of a reasonable and
appropriate security program because
passwords are typically the first (and are
often the only) method used to
authenticate (or authorize) users to
access resources, such as programs and
databases, available on a computer
network or online.
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 order or to modify its
terms in any way.
By direction of the Commission.
Donald S. Clark
Secretary
[FR Doc. E8–6952 Filed 4–2–08: 8:45 am]
[BILLING CODE 6750–01–S]
FEDERAL TRADE COMMISSION
[File No. 072 3055]
The TJX Companies, Inc.; Analysis of
Proposed Consent Order to Aid Public
Comment
Federal Trade Commission.
Proposed Consent Agreement.
AGENCY:
ACTION:
SUMMARY: The consent agreement in this
matter settles alleged violations of
federal law prohibiting unfair or
deceptive acts or practices or unfair
methods of competition. 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.
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18281
Comments must be received on
or before April 28, 2008.
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘TJX, File No.
072 3055,’’ to facilitate the organization
of comments. A comment filed in paper
form should include this reference both
in the text and on the envelope, and
should be mailed or delivered to the
following address: Federal Trade
Commission/Office of the Secretary,
Room 135–H, 600 Pennsylvania
Avenue, N.W., Washington, D.C. 20580.
Comments containing confidential
material must be filed in paper form,
must be clearly labeled ‘‘Confidential,’’
and must comply with Commission
Rule 4.9(c). 16 CFR 4.9(c) (2005).1 The
FTC is requesting that any comment
filed in paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Comments that do not
contain any nonpublic information may
instead be filed in electronic form by
following the instructions on the webbased form at https://
secure.commentworks.com/ftc-TJX. To
ensure that the Commission considers
an electronic comment, you must file it
on that web-based form.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments, whether filed in
paper or electronic form, will be
considered by the Commission, and will
be available to the public on the FTC
website, to the extent practicable, at
www.ftc.gov. As a matter of discretion,
the FTC makes every effort to remove
home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC website. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at https://www.ftc.gov/
ftc/privacy.shtm.
FOR FURTHER INFORMATION CONTACT:
Alain Sheer or Molly Crawford, FTC
Bureau of Consumer Protection, 600
Pennsylvania Avenue, NW, Washington,
D.C. 20580, (202) 326–2252.
DATES:
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
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Federal Register / Vol. 73, No. 65 / Thursday, April 3, 2008 / Notices
Pursuant
to section 6(f) of the Federal Trade
Commission Act, 38 Stat. 721, 15 U.S.C.
46(f), and § 2.34 of the Commission
Rules of Practice, 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 March 27, 2008), on the
World Wide Web, at https://www.ftc.gov/
os/2008/03/index.htm. A paper copy
can be obtained from the FTC Public
Reference Room, Room 130–H, 600
Pennsylvania Avenue, NW, Washington,
D.C. 20580, either in person or by
calling (202) 326–2222.
Public comments are invited, and may
be filed with the Commission in either
paper or electronic form. All comments
should be filed as prescribed in the
ADDRESSES section above, and must be
received on or before the date specified
in the DATES section.
rwilkins on PROD1PC63 with NOTICES
SUPPLEMENTARY INFORMATION:
Analysis of Agreement Containing
Consent Order to Aid Public Comment
The Federal Trade Commission has
accepted, subject to final approval, a
consent agreement from The TJX
Companies, Inc. (‘‘TJX’’).
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.
According to the Commission’s
complaint, TJX is an off-price retailer
selling apparel and home fashions in
over 2,500 stores worldwide. Consumers
may pay for purchases at these stores
with credit and debit cards (collectively,
‘‘payment cards’’), cash, or personal
checks. In selling its products, TJX
routinely uses its computer networks to
collect personal information from
consumers to obtain authorization for
payment card purchases, verify personal
checks, and process merchandise
returned without receipts (‘‘unreceipted
returns’’). Among other things, it
collects: (1) account number, expiration
date, and an electronic security code for
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17:19 Apr 02, 2008
Jkt 214001
payment card authorization; (2) bank
routing, account, and check numbers
and, in some instances, driver’s license
number and date of birth for personal
check verification; and (3) name,
address, and drivers’ license or military
or state identification number
(‘‘personal ID numbers’’) for unreceipted
returns (collectively, ‘‘personal
information’’). This information is
particularly sensitive because it can be
used to facilitate payment card fraud
and other consumer harm.
The Commission’s proposed
complaint alleges that since at least July
2005, TJX engaged in a number of
practices that, taken together, failed to
provide reasonable and appropriate
security for personal information on its
computer networks. Among other
things, TJX: (a) created an unnecessary
risk to personal information by storing
it on, and transmitting it between and
within, in-store and corporate networks
in clear text; (b) did not use readily
available security measures to limit
wireless access to its networks, thereby
allowing an intruder to connect
wirelessly to in-store networks without
authorization; (c) did not require
network administrators and other users
to use strong passwords or to use
different passwords to access different
programs, computers, and networks; (d)
failed to use readily available security
measures to limit access among
computers and the internet, such as by
using a firewall to isolate card
authorization computers; and (e) failed
to employ sufficient measures to detect
and prevent unauthorized access to
computer networks or to conduct
security investigations, such as by
patching or updating anti-virus software
or following up on security warnings
and intrusion alerts.
The complaint alleges that the breach
compromised tens of millions of
payment cards as well as the personal
information of approximately 455,000
consumers who had made unreceipted
returns. The complaint further alleges
that issuing banks have claimed tens of
millions of dollars in fraudulent charges
on some of these payment card
accounts. Issuing banks also have
cancelled and re-issued millions of
payment cards, and according to the
complaint, consumers holding these
cards were unable to use them to access
their credit and bank accounts until
they received the replacement cards.
Additionally, the complaint alleges that
some consumers have obtained or will
have to obtain new personal ID
numbers, such as new drivers’ licenses.
The proposed order applies to
personal information TJX collects from
or about consumers. It contains
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Fmt 4703
Sfmt 4703
provisions designed to prevent TJX from
engaging in the future in practices
similar to those alleged in the
complaint.
Part I of the proposed order requires
TJX to establish and maintain a
comprehensive information security
program in writing that is reasonably
designed to protect the security,
confidentiality, and integrity of personal
information collected from or about
consumers. The security program must
contain administrative, technical, and
physical safeguards appropriate to TJX’s
size and complexity, the nature and
scope of its activities, and the sensitivity
of the personal information collected
from or about consumers. Specifically,
the order requires TJX to:
∑ Designate an employee or
employees to coordinate and be
accountable for the information security
program.
∑ Identify material internal and
external risks to the security,
confidentiality, and integrity of personal
information that could result in the
unauthorized disclosure, misuse, loss,
alteration, destruction, or other
compromise of such information, and
assess the sufficiency of any safeguards
in place to control these risks.
∑ Design and implement reasonable
safeguards to control the risks identified
through risk assessment, and regularly
test or monitor the effectiveness of the
safeguards’ key controls, systems, and
procedures.
∑ Develop and use reasonable steps to
retain service providers capable of
appropriately safeguarding personal
information they receive from
respondents, require service providers
by contract to implement and maintain
appropriate safeguards, and monitor
their safeguarding of personal
information.
∑ Evaluate and adjust its information
security program in light of the results
of the testing and monitoring, any
material changes to its operations or
business arrangements, or any other
circumstances that it knows or has
reason to know may have a material
impact on the effectiveness of their
information security program.
Part II of the proposed order requires
that TJX obtain, covering the first 180
days after the order is served, and on a
biennial basis thereafter for twenty (20)
years, an assessment and report from a
qualified, objective, independent thirdparty professional, certifying, among
other things, that (1) it has in place a
security program that provides
protections that meet or exceed the
protections required by Part I of the
proposed order; and (2) its security
program is operating with sufficient
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Federal Register / Vol. 73, No. 65 / Thursday, April 3, 2008 / Notices
effectiveness to provide reasonable
assurance that the security,
confidentiality, and integrity of
consumers’ personal information is
protected.
Parts III through VII of the proposed
order are reporting and compliance
provisions. Part III requires TJX to retain
documents relating to its compliance
with the order. For most records, the
order requires that the documents be
retained for a five-year period. For the
third-party assessments and supporting
documents, TJX must retain the
documents for a period of three years
after the date that each assessment is
prepared. Part IV requires dissemination
of the order now and in the future to
principals, officers, directors, and
managers having responsibilities
relating to the subject matter of the
order. Part V ensures notification to the
FTC of changes in corporate status. Part
VI mandates that TJX submit an initial
compliance report to the FTC, and make
available to the FTC subsequent reports.
Part VII is a provision ‘‘sunsetting’’ the
order after twenty (20) years, with
certain exceptions.
This is the Commission’s twentieth
case to challenge the failure by a
company to implement reasonable
information security practices. Each of
the Commission’s cases to date has
alleged that a number of security
practices, taken together, failed to
provide reasonable and appropriate
security to prevent unauthorized access
to consumers’ information. The
practices challenged in the cases have
included, but are not limited to: (1)
creating unnecessary risks to sensitive
information by storing it on computer
networks without a business need to do
so; (2) storing sensitive information on
networks in a vulnerable format; (3)
failing to use readily available security
measures to limit access to a computer
network through wireless access points
on the network; (4) failing to adequately
assess the vulnerability of a web
application and computer network to
commonly known or reasonably
foreseeable attacks; (5) failing to
implement simple, low-cost, and readily
available defenses to such attacks; (6)
failing to use readily available security
measures to limit access between
computers on a network and between
such computers and the internet, and (7)
failing to use strong passwords to
authenticate (or authorize) users to
access programs and databases on
computer networks or online.
The purpose of the analysis is to aid
public comment on the proposed order.
It is not intended to constitute an
official interpretation of the proposed
order or to modify its terms in any way.
VerDate Aug<31>2005
18:19 Apr 02, 2008
Jkt 214001
By direction of the Commission.
Donald S. Clark
Secretary
[FR Doc. E8–6950 Filed 4–2–08: 8:45 am]
[BILLING CODE 6750–01–S]
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Agency for Healthcare Research and
Quality
Agency Information Collection
Activities: Proposed Collection;
Comment Request
Agency for Healthcare Research
and Quality, HHS.
ACTION: Notice.
AGENCY:
SUMMARY: This notice announces the
intention of the Agency for Healthcare
Research and Quality (AHRQ) to request
that the Office of Management and
Budget (OMB) approve the proposed
information collection project:
‘‘Assessment of the Emergency Severity
Index (ESI).’’ In accordance with the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C.
3506(c)(2)(A)), AHRQ invites the public
to comment on this proposed
information collection.
This proposed information collection
was previously published in the Federal
Register on January 22nd, 2008 and
allowed 60 days for public comment. No
comments were received. The purpose
of this notice is to allow an additional
30 days for public comment.
DATES: Comments on this notice must be
received by May 5, 2008.
ADDRESSES: Written comments should
be submitted to: AHRQ’s OMB Desk
Officer by fax at (202) 395–6974
(attention: AHRQ’s desk officer) or by email at OIRA_submission@omb.eop.gov
(attention: AHRQ’s desk officer). Copies
of the proposed collection plans, data
collection instruments, and specific
details on the estimated burden can be
obtained from the AHRQ Reports
Clearance Officer.
FOR FURTHER INFORMATION CONTACT:
Doris Lefkowitz, AHRQ Reports
Clearance Officer, (301) 427–1477, or by
e-mail at doris.lefkowitz@ahrq.hhs.gov.
SUPPLEMENTARY INFORMATION:
‘‘Proposed Project—Assessment of the
Emergency Severity Index (ESI)’’
AHRQ is proposing to examine uptake
and use of an emergency room triage
tool, the Emergency Severity Index
(ESI). The hospital emergency
department (ED) represents a critical
point in care delivery for patients across
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18283
the United States. Over the past decade,
however, the dramatic influx of patients
into EDs has seriously challenged the
ability of these departments to deliver
timely, quality, and safe emergency
healthcare services. Moreover, with
most emergency departments operating
at or over capacity it may prove difficult
for them to respond to the surge in
emergency room demand created by
natural and man-made disasters.
Development of increasingly refined
and validated triage methods is one
potential key to addressing
overcrowding by speeding up the care
delivery to the most acute ED patients
while helping hospitals assess, carefully
allocate and plan the amount of human
and other resources needed to care for
all patients.
In response to a need to standardize
the triage process and improve the flow
of patients, Richard C. Wuerz, MD,
(Department of Emergency Medicine at
the Brigham and Women’s Hospital and
the Harvard Medical School) and David
R. Eitel, MD, (Department of Emergency
Medicine, The York Hospital WellSpan
Health System) initiated development of
the Emergency Severity Index (ESI) in
1995. The ESI is unique in its focus on
appropriate resource allocation and its
consideration of necessary resource
utilization in assigning acuity. To
encourage adoption of the ESI, AHRQ
developed an implementation handbook
(Emergency Severity Index, Version 4)
and companion DVDs. These materials
are intended to provide hospitals and
triage nurses with background on why
they might want to implement the ESI
as a triage tool, and offers
recommendations on the
implementation process and staff
training.
This project will assess the product’s
acceptance by emergency departments
and others involved in addressing
medical surges to better understand the
usefulness of the ESI compared to other
similar tools. It will focus on the
satisfaction with the product’s
presentation, content, and clarity; extent
to which the product has improved
emergency services and surge
preparation; and the improvements
users would like to see in the next
version of this product. This will be
accomplished through (1) developing
and implementing an electronic and
paper-based survey targeting emergency
department professionals assessing the
satisfaction with the ESI’s content,
clarity and actual use of the system in
everyday emergency departments, and
(2) convening focus groups of ED
professionals to identify characteristics
that might predict uptake and use of this
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]]>Agencies
[Federal Register Volume 73, Number 65 (Thursday, April 3, 2008)]
[Notices]
[Pages 18281-18283]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6950]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
[File No. 072 3055]
The TJX Companies, Inc.; Analysis of Proposed Consent Order to
Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
-----------------------------------------------------------------------
SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. 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 April 28, 2008.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``TJX, File No. 072 3055,'' to facilitate the
organization of comments. A comment filed in paper form should include
this reference both in the text and on the envelope, and should be
mailed or delivered to the following address: Federal Trade Commission/
Office of the Secretary, Room 135-H, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. Comments containing confidential material must
be filed in paper form, must be clearly labeled ``Confidential,'' and
must comply with Commission Rule 4.9(c). 16 CFR 4.9(c) (2005).\1\ The
FTC is requesting that any comment filed in paper form be sent by
courier or overnight service, if possible, because U.S. postal mail in
the Washington area and at the Commission is subject to delay due to
heightened security precautions. Comments that do not contain any
nonpublic information may instead be filed in electronic form by
following the instructions on the web-based form at https://
secure.commentworks.com/ftc-TJX. To ensure that the Commission
considers an electronic comment, you must file it on that web-based
form.
---------------------------------------------------------------------------
\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
---------------------------------------------------------------------------
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC website, to the extent
practicable, at www.ftc.gov. As a matter of discretion, the FTC makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC website. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at https://
www.ftc.gov/ftc/privacy.shtm.
FOR FURTHER INFORMATION CONTACT: Alain Sheer or Molly Crawford, FTC
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, (202) 326-2252.
[[Page 18282]]
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec. 2.34 of
the Commission Rules of Practice, 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 March 27, 2008), on the World Wide Web, at https://www.ftc.gov/os/
2008/03/index.htm. A paper copy can be obtained from the FTC Public
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, either in person or by calling (202) 326-2222.
Public comments are invited, and may be filed with the Commission
in either paper or electronic form. All comments should be filed as
prescribed in the ADDRESSES section above, and must be received on or
before the date specified in the DATES section.
Analysis of Agreement Containing Consent Order to Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, a consent agreement from The TJX Companies, Inc. (``TJX'').
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.
According to the Commission's complaint, TJX is an off-price
retailer selling apparel and home fashions in over 2,500 stores
worldwide. Consumers may pay for purchases at these stores with credit
and debit cards (collectively, ``payment cards''), cash, or personal
checks. In selling its products, TJX routinely uses its computer
networks to collect personal information from consumers to obtain
authorization for payment card purchases, verify personal checks, and
process merchandise returned without receipts (``unreceipted
returns''). Among other things, it collects: (1) account number,
expiration date, and an electronic security code for payment card
authorization; (2) bank routing, account, and check numbers and, in
some instances, driver's license number and date of birth for personal
check verification; and (3) name, address, and drivers' license or
military or state identification number (``personal ID numbers'') for
unreceipted returns (collectively, ``personal information''). This
information is particularly sensitive because it can be used to
facilitate payment card fraud and other consumer harm.
The Commission's proposed complaint alleges that since at least
July 2005, TJX engaged in a number of practices that, taken together,
failed to provide reasonable and appropriate security for personal
information on its computer networks. Among other things, TJX: (a)
created an unnecessary risk to personal information by storing it on,
and transmitting it between and within, in-store and corporate networks
in clear text; (b) did not use readily available security measures to
limit wireless access to its networks, thereby allowing an intruder to
connect wirelessly to in-store networks without authorization; (c) did
not require network administrators and other users to use strong
passwords or to use different passwords to access different programs,
computers, and networks; (d) failed to use readily available security
measures to limit access among computers and the internet, such as by
using a firewall to isolate card authorization computers; and (e)
failed to employ sufficient measures to detect and prevent unauthorized
access to computer networks or to conduct security investigations, such
as by patching or updating anti-virus software or following up on
security warnings and intrusion alerts.
The complaint alleges that the breach compromised tens of millions
of payment cards as well as the personal information of approximately
455,000 consumers who had made unreceipted returns. The complaint
further alleges that issuing banks have claimed tens of millions of
dollars in fraudulent charges on some of these payment card accounts.
Issuing banks also have cancelled and re-issued millions of payment
cards, and according to the complaint, consumers holding these cards
were unable to use them to access their credit and bank accounts until
they received the replacement cards. Additionally, the complaint
alleges that some consumers have obtained or will have to obtain new
personal ID numbers, such as new drivers' licenses.
The proposed order applies to personal information TJX collects
from or about consumers. It contains provisions designed to prevent TJX
from engaging in the future in practices similar to those alleged in
the complaint.
Part I of the proposed order requires TJX to establish and maintain
a comprehensive information security program in writing that is
reasonably designed to protect the security, confidentiality, and
integrity of personal information collected from or about consumers.
The security program must contain administrative, technical, and
physical safeguards appropriate to TJX's size and complexity, the
nature and scope of its activities, and the sensitivity of the personal
information collected from or about consumers. Specifically, the order
requires TJX to:
Designate an employee or employees to coordinate and be
accountable for the information security program.
Identify material internal and external risks to the
security, confidentiality, and integrity of personal information that
could result in the unauthorized disclosure, misuse, loss, alteration,
destruction, or other compromise of such information, and assess the
sufficiency of any safeguards in place to control these risks.
Design and implement reasonable safeguards to control the
risks identified through risk assessment, and regularly test or monitor
the effectiveness of the safeguards' key controls, systems, and
procedures.
Develop and use reasonable steps to retain service
providers capable of appropriately safeguarding personal information
they receive from respondents, require service providers by contract to
implement and maintain appropriate safeguards, and monitor their
safeguarding of personal information.
Evaluate and adjust its information security program in
light of the results of the testing and monitoring, any material
changes to its operations or business arrangements, or any other
circumstances that it knows or has reason to know may have a material
impact on the effectiveness of their information security program.
Part II of the proposed order requires that TJX obtain, covering
the first 180 days after the order is served, and on a biennial basis
thereafter for twenty (20) years, an assessment and report from a
qualified, objective, independent third-party professional, certifying,
among other things, that (1) it has in place a security program that
provides protections that meet or exceed the protections required by
Part I of the proposed order; and (2) its security program is operating
with sufficient
[[Page 18283]]
effectiveness to provide reasonable assurance that the security,
confidentiality, and integrity of consumers' personal information is
protected.
Parts III through VII of the proposed order are reporting and
compliance provisions. Part III requires TJX to retain documents
relating to its compliance with the order. For most records, the order
requires that the documents be retained for a five-year period. For the
third-party assessments and supporting documents, TJX must retain the
documents for a period of three years after the date that each
assessment is prepared. Part IV requires dissemination of the order now
and in the future to principals, officers, directors, and managers
having responsibilities relating to the subject matter of the order.
Part V ensures notification to the FTC of changes in corporate status.
Part VI mandates that TJX submit an initial compliance report to the
FTC, and make available to the FTC subsequent reports. Part VII is a
provision ``sunsetting'' the order after twenty (20) years, with
certain exceptions.
This is the Commission's twentieth case to challenge the failure by
a company to implement reasonable information security practices. Each
of the Commission's cases to date has alleged that a number of security
practices, taken together, failed to provide reasonable and appropriate
security to prevent unauthorized access to consumers' information. The
practices challenged in the cases have included, but are not limited
to: (1) creating unnecessary risks to sensitive information by storing
it on computer networks without a business need to do so; (2) storing
sensitive information on networks in a vulnerable format; (3) failing
to use readily available security measures to limit access to a
computer network through wireless access points on the network; (4)
failing to adequately assess the vulnerability of a web application and
computer network to commonly known or reasonably foreseeable attacks;
(5) failing to implement simple, low-cost, and readily available
defenses to such attacks; (6) failing to use readily available security
measures to limit access between computers on a network and between
such computers and the internet, and (7) failing to use strong
passwords to authenticate (or authorize) users to access programs and
databases on computer networks or online.
The purpose of the analysis is to aid public comment on the
proposed order. It is not intended to constitute an official
interpretation of the proposed order or to modify its terms in any way.
By direction of the Commission.
Donald S. Clark
Secretary
[FR Doc. E8-6950 Filed 4-2-08: 8:45 am]
[BILLING CODE 6750-01-S]
