Dave & Buster’s, Inc.; Analysis of Proposed Consent Order to Aid Public Comment, 16123-16125 [2010-7127]

Download as PDF jlentini on DSKJ8SOYB1PROD with NOTICES Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices Annual reporting hours: 20 hours. Estimated average hours per response: 2 hours. Number of respondents: 10. General description of report: This information collection is mandatory pursuant to section 17A(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1(c)) as amended by the Securities Acts Amendments of 1975. The Federal Reserve is authorized to collect these data from state member banks or their subsidiaries, and BHCs or their subsidiaries (except national banks and state nonmember banks that are insured by the FDIC) by 15 U.S.C. 78c(a)(34)(B)(ii). The data collected are not given confidential treatment. Abstract: Banks, BHCs, and trust companies subject to the Federal Reserve’s supervision that are lowvolume transfer agents voluntarily file the notice on occasion with the Federal Reserve. Transfer agents are institutions that provide securities transfer, registration, monitoring, and other specified services on behalf of securities issuers. The purpose of the notice, which is effective until the agent withdraws it, is to claim exemption from certain rules and regulations of the Securities and Exchange Commission (SEC). The Federal Reserve uses the notices for supervisory purposes because the SEC has assigned to the Federal Reserve responsibility for collecting the notices and verifying their accuracy through examinations of the respondents. There is no formal reporting form and each notice is filed as a letter. 6. Report title: Investment in Bank Premises Notification. Agency form number: FR 4014. OMB control number: 7100–0139. Frequency: On occasion. Reporters: SMBs. Annual reporting hours: 7 hours. Estimated average hours per response: 30 minutes. Number of respondents: 13. General description of report: This information collection is required to obtain a benefit pursuant to Section 24A(a) of the Federal Reserve Act (12 U.S.C. 371d(a)) and is not given confidential treatment. However, a respondent may request confidential treatment for all or part of a notification, which would be reviewed on a case-bycase basis. Abstract: The Federal Reserve Act requires an SMB to seek prior Federal Reserve approval before making an investment in bank premises that exceeds certain thresholds. There is no formal reporting form, and each required request for prior approval must be filed as a notification with the VerDate Nov<24>2008 19:40 Mar 30, 2010 Jkt 220001 appropriate Reserve Bank of the SMB. The Federal Reserve uses the information provided in the notice to fulfill its statutory obligation to supervise SMBs. Board of Governors of the Federal Reserve System, March 26, 2010. Jennifer J. Johnson, Secretary of the Board. 16123 Trust into a national bank and thereby merging it with Morgan Stanley Bank, N.A., which will be relocated to Purchase, New York. Board of Governors of the Federal Reserve System, March 26, 2010. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 2010–7182 Filed 3–30–10; 8:45 am] BILLING CODE 6210–01–S [FR Doc. 2010–7164 Filed 3–30–10; 8:45 am] BILLING CODE 6210–01–P FEDERAL TRADE COMMISSION FEDERAL RESERVE SYSTEM [File No. 082 3153] Formations of, Acquisitions by, and Mergers of Bank Holding Companies Dave & Buster’s, Inc.; Analysis of Proposed Consent Order to Aid Public Comment The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Additional information on all bank holding companies may be obtained from the National Information Center website at www.ffiec.gov/nic/. Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than April 26, 2010. A. Federal Reserve Bank of New York (Ivan Hurwitz, Bank Applications Officer) 33 Liberty Street, New York, New York 10045–0001: 1. Morgan Stanley, New York, New York; to acquire 100 percent of the voting shares of Morgan Stanley Private Bank, N.A., Jersey City, New Jersey, as a result of converting Morgan Stanley PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 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. DATES: Comments must be received on or before April 26, 2010. ADDRESSES: Interested parties are invited to submit written comments electronically or in paper form. Comments should refer to ‘‘Dave & Buster’s, File No. 082 3153’’ to facilitate the organization of comments. Please note that your comment — including your name and your state — will be placed on the public record of this proceeding, including on the publicly accessible FTC website, at (https:// www.ftc.gov/os/publiccomments.shtm). Because comments will be made public, they should not include any sensitive personal information, such as an individual’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. Comments also should not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, comments should not include any ‘‘[t]rade secret or any commercial or financial information which is obtained from any person and which is privileged or confidential. . . .,’’ as provided in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and Commission Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing E:\FR\FM\31MRN1.SGM 31MRN1 16124 Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices jlentini on DSKJ8SOYB1PROD with NOTICES 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), 16 CFR 4.9(c).1 Because paper mail addressed to the FTC is subject to delay due to heightened security screening, please consider submitting your comments in electronic form. Comments filed in electronic form should be submitted by using the following weblink: (https:// public.commentworks.com/ftc/ daveandbusters) and following the instructions on the web-based form. To ensure that the Commission considers an electronic comment, you must file it on the web-based form at the weblink: (https://public.commentworks.com/ftc/ daveandbusters). If this Notice appears at (https://www.regulations.gov/search/ index.jsp), you may also file an electronic comment through that website. The Commission will consider all comments that regulations.gov forwards to it. You may also visit the FTC website at (https://www.ftc.gov/) to read the Notice and the news release describing it. A comment filed in paper form should include the ‘‘Dave & Buster’s, File No. 082 3153’’ 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 H-135 (Annex D), 600 Pennsylvania Avenue, NW, Washington, DC 20580. 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. The Federal Trade Commission Act (‘‘FTC Act’’) and other laws 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, whether filed in paper or electronic form. Comments received will be available to the public on the FTC website, to the extent practicable, at (https://www.ftc.gov/os/ publiccomments.shtm). As a matter of discretion, the Commission makes every 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 FTC Rule 4.9(c), 16 CFR 4.9(c). VerDate Nov<24>2008 19:40 Mar 30, 2010 Jkt 220001 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: Katrina Blodgett (202-326-3158), Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 2.34 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 25, 2010), on the World Wide Web, at (https:// www.ftc.gov/os/actions.shtm). 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 Dave & Buster’s, Inc. (‘‘Dave & Buster’s’’). 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. Dave & Buster’s owns and operates 53 restaurant and entertainment complexes PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 in the United States. Consumers may pay for purchases at these locations with credit and debit cards (collectively, ‘‘payment cards’’) or cash. In conducting its business, Dave & Buster’s routinely collects information from consumers to obtain authorization for payment card purchases, including the credit card account number, expiration date, and an electronic security code for payment authorization. This information is particularly sensitive because it can be used to facilitate payment card fraud and other consumer fraud. The Commission’s complaint alleges that since at least April 2007, Dave & Buster’s 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, Dave & Buster’s: (a) failed to employ sufficient measures to detect and prevent unauthorized access to computer networks or to conduct security investigations, such as by employing an intrusion detection system and monitoring system logs; (b) failed to adequately restrict third-party access to its networks, such as by restricting connections to specific IP addresses or granting temporary, limited access; (c) failed to monitor and filter outbound traffic from its networks to identify and block export of sensitive personal information without authorization; (d) failed to use readily available security measures to limit access between in-store networks, such as by using firewalls or isolating the payment card system from the rest of the corporate network; and (e) failed to use readily available security measures to limit access to its computer networks through wireless access points on the networks. The complaint further alleges that between April 30, 2007 and August 28, 2007, an intruder, exploiting some of these vulnerabilities, connected to Dave & Buster’s networks numerous times without authorization, installed unauthorized software, and intercepted personal information in transit from instore networks to its credit card processing company. The breach compromised approximately 130,000 unique payment cards used by consumers in the United States. The proposed order applies to personal information Dave & Buster’s collects from or about consumers. It contains provisions designed to prevent Dave & Buster’s from engaging in the future in practices similar to those alleged in the complaint. Part I of the proposed order requires Dave & Buster’s to establish and maintain a comprehensive information E:\FR\FM\31MRN1.SGM 31MRN1 jlentini on DSKJ8SOYB1PROD with NOTICES Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices 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 Dave & Buster’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 Dave & Buster’s 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 select and retain service providers capable of appropriately safeguarding personal information they receive from respondents, and require service providers by contract to implement and maintain appropriate safeguards. ∑ 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 its information security program. Part II of the proposed order requires that Dave & Buster’s obtain within 180 days, and on a biennial basis thereafter for ten (10) years, an assessment and report from a qualified, objective, independent third-party professional, certifying, among other things, that 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 its security program is operating with sufficient 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 Dave & Buster’s to retain documents relating to VerDate Nov<24>2008 19:40 Mar 30, 2010 Jkt 220001 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, Dave & Buster’s 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 at corporate headquarters, regional offices, and at each store 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 Dave & Buster’s 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. 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. 2010–7127 Filed 3–30–10: 1:29 pm] BILLING CODE 6750–01–S DEPARTMENT OF HEALTH AND HUMAN SERVICES Call for Co-Sponsors for Office of Healthcare Quality’s Programs to Strengthen Coordination and Impact National Efforts in the Prevention of Healthcare-Associated Infections (HAIs) AGENCY: Department of Health and Human Services, Office of the Secretary, Office of Public Health and Science, Office of Healthcare Quality. ACTION: Notice. SUMMARY: The U.S. Department of Health and Human Services (HHS), Office of Public Health and Science (OPHS), Office for Healthcare Quality (OHQ) announces the opportunity to collaborate with the U.S. Department of Health and Human Services (HHS). HHS invites public and private professional health related organizations to participate as collaborating co-sponsors in the development and implementation of an innovative program that advances the goals enumerated in the HHS Action Plan to prevent Healthcare-Associated Infections. PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 16125 DATES: Expressions of interest for FY 2010–11 must be received no later than cob April 15, 2010. ADDRESSES: Expressions of interest, comments, and questions may be submitted by e-mail to ohq@hhs.gov; by regular mail to Office of Healthcare Quality, Department of Health and Human Services, 200 Independence Ave., SW., Room 716G, Washington, DC 20201, or via fax to 202–401–9547. FOR FURTHER INFORMATION CONTACT: Daniel Gallardo via electronic mail to Daniel.Gallardo@hhs.gov; or by phone at 202–690–2470. SUPPLEMENTARY INFORMATION: Healthcare-associated infections (HAIs) exact a significant toll on human life. They are among the leading causes of preventable death in the United States, accounting for an estimated 1.7 million infections and 99,000 associated deaths in 2002. In hospitals, they are a significant cause of morbidity and mortality. In addition to the substantial human suffering caused by healthcareassociated infections, the financial burden attributable to the infections is staggering. It is estimated that healthcare-associated infections cause $28 to $33 billion in excess healthcare costs each year. For these reasons, the prevention and reduction of healthcareassociated infections is a top priority for the U.S. Department of Health and Human Services (HHS). The HHS Steering Committee for the Prevention of Healthcare-Associated Infections, led by Dr. Don Wright, Deputy Assistant Secretary for Healthcare Quality, was established in July 2008. The Steering Committee was charged with developing a comprehensive strategy to prevent and reduce healthcare-associated infections and issuing a plan which establishes national goals for healthcare-associated infection prevention and outlines key actions for achieving identified shortand long-term objectives. The plan, released in January 2009 as the HHS Action Plan, is also intended to enhance collaboration with external stakeholders to strengthen coordination and impact of national efforts. Therefore, OHQ is interested in establishing partnerships with private and public professional health organizations in order to further the efforts in the prevention of HealthcareAssociated Infections. As partners with OHQ, professional health related organizations can bring their ideas, expertise, administrative capabilities, and resources in the development of a program(s) that promotes the reduction and prevention of Healthcare- E:\FR\FM\31MRN1.SGM 31MRN1

Agencies

[Federal Register Volume 75, Number 61 (Wednesday, March 31, 2010)]
[Notices]
[Pages 16123-16125]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7127]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 082 3153]


Dave & Buster's, 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 26, 2010.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Dave & 
Buster's, File No. 082 3153'' to facilitate the organization of 
comments. Please note that your comment -- including your name and your 
state -- will be placed on the public record of this proceeding, 
including on the publicly accessible FTC website, at (https://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as an individual'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. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include any ``[t]rade secret or any 
commercial or financial information which is obtained from any person 
and which is privileged or confidential. . . .,'' as provided in 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and Commission Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing

[[Page 16124]]

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), 16 CFR 4.9(c).\1\
---------------------------------------------------------------------------

    \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 FTC Rule 4.9(c), 16 CFR 
4.9(c).
---------------------------------------------------------------------------

    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://public.commentworks.com/ftc/daveandbusters) and following the 
instructions on the web-based form. To ensure that the Commission 
considers an electronic comment, you must file it on the web-based form 
at the weblink: (https://public.commentworks.com/ftc/daveandbusters). 
If this Notice appears at (https://www.regulations.gov/search/index.jsp), you may also file an electronic comment through that 
website. The Commission will consider all comments that regulations.gov 
forwards to it. You may also visit the FTC website at (https://www.ftc.gov/) to read the Notice and the news release describing it.
    A comment filed in paper form should include the ``Dave & Buster's, 
File No. 082 3153'' 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 H-135 (Annex D), 600 
Pennsylvania Avenue, NW, Washington, DC 20580. 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.
    The Federal Trade Commission Act (``FTC Act'') and other laws 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, 
whether filed in paper or electronic form. Comments received will be 
available to the public on the FTC website, to the extent practicable, 
at (https://www.ftc.gov/os/publiccomments.shtm). As a matter of 
discretion, the Commission 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: Katrina Blodgett (202-326-3158), 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington, 
D.C. 20580.

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 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 25, 2010), on the World Wide Web, at (https://www.ftc.gov/os/actions.shtm). 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 Dave & Buster's, Inc. (``Dave & 
Buster's'').
    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.
    Dave & Buster's owns and operates 53 restaurant and entertainment 
complexes in the United States. Consumers may pay for purchases at 
these locations with credit and debit cards (collectively, ``payment 
cards'') or cash. In conducting its business, Dave & Buster's routinely 
collects information from consumers to obtain authorization for payment 
card purchases, including the credit card account number, expiration 
date, and an electronic security code for payment authorization. This 
information is particularly sensitive because it can be used to 
facilitate payment card fraud and other consumer fraud.
    The Commission's complaint alleges that since at least April 2007, 
Dave & Buster's 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, Dave & 
Buster's: (a) failed to employ sufficient measures to detect and 
prevent unauthorized access to computer networks or to conduct security 
investigations, such as by employing an intrusion detection system and 
monitoring system logs; (b) failed to adequately restrict third-party 
access to its networks, such as by restricting connections to specific 
IP addresses or granting temporary, limited access; (c) failed to 
monitor and filter outbound traffic from its networks to identify and 
block export of sensitive personal information without authorization; 
(d) failed to use readily available security measures to limit access 
between in-store networks, such as by using firewalls or isolating the 
payment card system from the rest of the corporate network; and (e) 
failed to use readily available security measures to limit access to 
its computer networks through wireless access points on the networks.
    The complaint further alleges that between April 30, 2007 and 
August 28, 2007, an intruder, exploiting some of these vulnerabilities, 
connected to Dave & Buster's networks numerous times without 
authorization, installed unauthorized software, and intercepted 
personal information in transit from in-store networks to its credit 
card processing company. The breach compromised approximately 130,000 
unique payment cards used by consumers in the United States.
    The proposed order applies to personal information Dave & Buster's 
collects from or about consumers. It contains provisions designed to 
prevent Dave & Buster's from engaging in the future in practices 
similar to those alleged in the complaint.
    Part I of the proposed order requires Dave & Buster's to establish 
and maintain a comprehensive information

[[Page 16125]]

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 Dave 
& Buster'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 Dave & Buster's 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 select and retain 
service providers capable of appropriately safeguarding personal 
information they receive from respondents, and require service 
providers by contract to implement and maintain appropriate safeguards.
     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 its information security program.
    Part II of the proposed order requires that Dave & Buster's obtain 
within 180 days, and on a biennial basis thereafter for ten (10) years, 
an assessment and report from a qualified, objective, independent 
third-party professional, certifying, among other things, that 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 
its security program is operating with sufficient 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 Dave & Buster's 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, Dave 
& Buster's 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 at corporate headquarters, regional 
offices, and at each store 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 Dave & Buster's 
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.
    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. 2010-7127 Filed 3-30-10: 1:29 pm]
BILLING CODE 6750-01-S
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.