Filiquarian Publishing, LLC; Choice Level, LLC; and Joshua Linsk; Analysis of Proposed Consent Order To Aid Public Comment, 3425-3427 [2013-00744]

Download as PDF Federal Register / Vol. 78, No. 11 / Wednesday, January 16, 2013 / Notices FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License Revocations The Commission gives notice that the following Ocean Transportation Intermediary licenses have been revoked pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. 40101) effective on the date shown. License No.: 013253N. Name: Total Service Line Corporation dba Total Shipping Line Corp. Address: 12140 East Artestia Blvd., Suite 208, Artesia, CA 90701. Date Revoked: November 11, 2012. Reason: Failed to maintain a valid bond. License No.: 017580N. Name: E-Trans Logistic Services, Inc. Address: 17595 Almahurst Road, Suite 211, City of Industry, CA 91748. Date Revoked: November 18, 2012. Reason: Failed to maintain a valid bond. License No.: 020933N. Name: Surexpress, Inc. Address: 7040 Motz Street, Paramount, CA 90723. Date Revoked: November 5, 2012. Reason: Voluntary Surrender of License. License No.: 021296NF. Name: ITW International, Inc. Address: 2889 Plaza Del Amo, #312, Torrance, CA 90503. Date Revoked: November 5, 2012. Reason: Voluntary Surrender of License. Vern W. Hill, Director, Bureau of Certification and Licensing. views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than January 31, 2013. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. Robert M. Wrobel Trust, Mr. Robert Wrobel, Glencoe, Illinois, as Trustee; the Debra Wrobel Trust, Debra Wrobel, Glencoe, Illinois, as Trustee; three related Wrobel Family Trusts, Debra Wrobel, Glencoe, Illinois, as Trustee; and Dr. Jack Havdala, Jonesboro, Arkansas; as a group acting in concert, to acquire at least 25 percent of the voting shares of Amalgamated Investments Company, and thereby indirectly acquire voting shares of Amalgamated Bank of Chicago, both in Chicago, Illinois. 2. Stanley Dickson, Jr., Gross Pointe Park, Michigan, as an individual, and the group consisting of Stanley Dickson, Jr., Gross Pointe Park, Michigan; Steven Dickson, Rancho Santa Fe, California; Kathryn J. Dickson, Howell, Michigan; and Riddle Limited Partnership, Howell, Michigan; to acquire voting shares of FNBH Bancorp, Inc., and thereby indirectly acquire voting shares of First National Bank in Howell, both in Howell, Michigan. B. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198–0001: 1. Dalene M. Selko, Meade, Nebraska; to acquire voting shares of Selko Banco, Inc., and thereby indirectly acquire voting shares of Bank of Mead, both in Mead, Nebraska. 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 will also 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. 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 February 11, 2013. A. Federal Reserve Bank of New York (Ivan Hurwitz, Vice President) 33 Liberty Street, New York, New York 10045–0001: 1. The Adirondack Trust Company Employee Stock Ownership Trust, Saratoga Springs, New York; to acquire 50 additional shares of 473 Broadway Holding Corporation, and 2,000 additional shares of The Adirondack Trust Company, both in Saratoga Springs, New York. Board of Governors of the Federal Reserve System, January 11, 2013. Margaret McCloskey Shanks, Deputy Secretary of the Board. [FR Doc. 2013–00768 Filed 1–15–13; 8:45 am] Board of Governors of the Federal Reserve System, January 11, 2013. Margaret McCloskey Shanks, Deputy Secretary of the Board. BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM [FR Doc. 2013–00769 Filed 1–15–13; 8:45 am] [File No. 112 3195] Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company BILLING CODE 6210–01–P [FR Doc. 2013–00832 Filed 1–15–13; 8:45 am] BILLING CODE 6730–01–P mstockstill on DSK4VPTVN1PROD with 3425 FEDERAL RESERVE SYSTEM The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their VerDate Mar<15>2010 17:01 Jan 15, 2013 Jkt 229001 Formations of, Acquisitions by, and Mergers of Bank Holding Companies 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 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 FEDERAL TRADE COMMISSION Filiquarian Publishing, LLC; Choice Level, LLC; and Joshua Linsk; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed Consent Agreement. AGENCY: ACTION: 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. SUMMARY: E:\FR\FM\16JAN1.SGM 16JAN1 3426 Federal Register / Vol. 78, No. 11 / Wednesday, January 16, 2013 / Notices Comments must be received on or before February 11, 2013. ADDRESSES: Interested parties may file a comment at https://ftcpublic.comment works.com/ftc/filiquarianconsent online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘Filiquarian, File No. 112 3195’’ on your comment and file your comment online at https://ftc public.commentworks.com/ftc/fili quarianconsent by following the instructions on the web-based form. If you prefer to file your comment on paper, mail or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Room H–113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: Jessica Lyon (202–326–2344), FTC, Bureau of Consumer Protection, 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 January 10, 2013), on the World Wide Web, at http:// 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, DC 20580, either in person or by calling (202) 326–2222. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before February 11, 2013. Write ‘‘Filiquarian, File No. 112 3195’’ on your comment. Your comment— including your name and your state— will be placed on the public record of this proceeding, including, to the extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/ publiccomments.shtm. As a matter of discretion, the Commission tries to remove individuals’ home contact information from comments before placing them on the Commission Web site. mstockstill on DSK4VPTVN1PROD with DATES: VerDate Mar<15>2010 17:01 Jan 15, 2013 Jkt 229001 Because your comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone’s Social Security number, date of birth, driver’ license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do not include any ‘‘[t]rade secret or any commercial or financial information which * * * is privileged or confidential,’’ as discussed in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 4.9(c).1 Your comment will be kept confidential only if the FTC General Counsel, in his or her sole discretion, grants your request in accordance with the law and the public interest. 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/fili quarianconsent by following the instructions on the web-based form. If this Notice appears at http:// www.regulations.gov/#!home, you also may file a comment through that Web site. If you file your comment on paper, write ‘‘Filiquarian, File No. 112 3195’’ on your comment and on the envelope, and mail or deliver it to the following address: Federal Trade Commission, Office of the Secretary, Room H–113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580. If possible, submit your paper comment to the Commission by courier or overnight service. 1 In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c), 16 CFR 4.9(c). PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Visit the Commission Web site at http://www.ftc.gov to read this Notice and the news release describing it. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before February 11, 2013. You can find more information, including routine uses permitted by the Privacy Act, in the Commission’s privacy policy, at http://www.ftc.gov/ftc/privacy.htm. Analysis of Agreement Containing Consent Order To Aid Public Comment The Federal Trade Commission has accepted, subject to final approval, an agreement containing a consent order from Filiquarian Publishing, LLC; Choice Level, LLC; and Joshua Linsk, individually, and as an officer of the companies. 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. The Commission’s proposed administrative complaint alleges that the companies were operating as consumer reporting agencies without any procedures or policies in place to comply with the Fair Credit Reporting Act (‘‘FCRA’’). The respondents sold background screening reports containing criminal records through mobile applications (‘‘apps’’) available in the iTunes and Google Android store (now GooglePlay) and through a Web site. Filiquarian developed and marketed apps that sold for $0.99 each and allowed purchasers to conduct unlimited searches of criminal history information within a specific geographic area, such as a state or county. Each app included an express representation that purchasers could use the reports for employment purposes. Choice Level provided the underlying records accessed by purchasers of the Filiquarian apps. Joshua Linsk is the owner and sole officer of Filiquarian and Choice Level. During all times material to this complaint, Linsk, individually or in concert with others, formulated, directed, or controlled the policies, acts, or practices of the companies. E:\FR\FM\16JAN1.SGM 16JAN1 mstockstill on DSK4VPTVN1PROD with Federal Register / Vol. 78, No. 11 / Wednesday, January 16, 2013 / Notices According to the complaint, despite Filiquarian clearly promoting its background reports for use in employment screening, both Filiquarian and Choice Level included disclaimers in their terms and conditions stating that their reports were not to be considered a screening product for insurance, employment, or credit, and that they were not compliant with the FCRA. Such disclaimers contradicted and failed to counteract the express representations made in Filiquarian’s advertising, urging the use of the reports to screen potential employees. Marketing and selling background screening reports to potential employers without implementing any of the accuracy or dispute safeguards required by the FCRA potentially exposes a large number of consumers to harm to their reputations and employment prospects. The complaint alleges that the reports produced by respondents were consumer reports under the FCRA and that respondents lacked any policies or procedures to comply with the FCRA. Specifically, the complaint alleges that respondents failed to adhere to three key requirements of the FCRA: to maintain reasonable procedures to verify who their users are and that the information would be used for a permissible purpose; to ensure that the information they provided in consumer reports was accurate; and to provide notices to users and to those who furnished proposed respondents with information that was included in consumer reports. The complaint further alleges that by their violations of the FCRA, as stated above, proposed respondents have engaged in unfair and deceptive acts and practices, in violation of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. 45(a). The proposed consent order contains provisions designed to prevent the respondents from engaging in the future in practices similar to those alleged in the complaint. Part I of the order includes injunctive relief requiring respondents to comply with the relevant provisions of the FCRA. Parts II through VI are reporting and compliance provisions. Part II requires respondents to retain documents relating to their compliance with the order for a five-year period. Part III requires 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. Part V mandates that respondents submit a compliance report to the FTC within 60 days, and periodically thereafter as requested. Part VI is a provision VerDate Mar<15>2010 17:01 Jan 15, 2013 Jkt 229001 ‘‘sunsetting’’ the order after twenty (20) years, with certain exceptions. The purpose of this 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. Richard C. Donohue, Acting Secretary. [FR Doc. 2013–00744 Filed 1–15–13; 8:45 am] BILLING CODE 6750–01–P FEDERAL TRADE COMMISSION [File No. 121–0120] Motorola Mobility LLC and Google Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed consent agreement; correction. AGENCY: ACTION: The Federal Trade Commission published a document in the Federal Register of January 11, 2013, requesting public comments on an analysis of proposed consent order to aid public comment. The document inadvertently did not include the Statement of the Commission. This document contains the Statement of the Commission. FOR FURTHER INFORMATION CONTACT: Richard Feinstein or Pete Levitas (202– 326–2555), FTC, Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 20580. SUMMARY: Correction In the Federal Register of January 11, 2013, in FR Doc. 2013–00465, on page 2402, the third column, second paragraph (after ‘‘Richard C. Donohue, Acting Secretary,’’ but before the ‘‘Statement of Commissioner Rosch,’’) insert the following Statement of the Commission: Statement of the Federal Trade Commission The Federal Trade Commission has today voted to issue for public comment a Complaint and Order against Google Inc. (‘‘Google’’) designed to remedy Google’s allegedly anticompetitive conduct resulting from breaches by Google and its subsidiary Motorola Mobility, Inc. (‘‘Motorola’’) of Motorola’s commitments to license standard-essential patents (‘‘SEPs’’) on terms that are fair, reasonable and nondiscriminatory (‘‘FRAND’’).1 The 1 The licensing obligation in this matter was a FRAND obligation, although RAND (reasonable and PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 3427 Complaint alleges that, before its acquisition by Google, Motorola reneged on a licensing commitment made to several standard-setting bodies to license its standard-essential patents relating to smartphones, tablet computers, and video game systems on FRAND terms by seeking injunctions against willing licensees of those SEPs.2 This conduct tended to impair competition in the market for these important electronic devices—products that over half of Americans own and use daily, including iPhones, iPads and Xboxes. After purchasing Motorola for $12.5 billion in June 2012, Google continued Motorola’s conduct. These actions constitute unfair methods of competition, as well as unfair acts and practices, in violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. 45. Google’s settlement with the Commission requires Google to withdraw its claims for injunctive relief on FRAND-encumbered SEPs around the world, and to offer a FRAND license to any company that wants to license Google’s SEPs in the future. If accepted by the Commission, the Proposed Order may set a template for the resolution of SEP licensing disputes across many industries, and reduce the costly and inefficient need for companies to amass patents for purely defensive purposes in industries where standard-compliant products are the norm. The Commission has a long history of using its enforcement authority to safeguard the integrity of the standardsetting process.3 Standard setting can deliver substantial benefits to American consumers, promoting innovation, competition, and consumer choice. But standard setting often supplants the competitive process with the collective decision-making of competitors, requiring that we be vigilant in protecting the integrity of the standardsetting process.4 Today’s Commission non-discriminatory) licensing obligations raise similar issues. 2 Commissioners Rosch and Ohlhausen do not join this Statement (with Commissioner Ohlhausen voting against the consent agreement) and have issued separate statements expressing their views. 3 See In re Dell Computer Corp., 121 F.T.C. 616 (1996); In re Union Oil Company of California, 2004 FTC LEXIS 115 (July 7, 2004); In re Rambus, Inc., Dkt. No. 9302, 2006 FTC LEXIS 101 (Aug. 20, 2006), rev’d, Rambus Inc. v. F.T.C., 522 F.3d 456 (DC Cir. 2008); In re Negotiated Data Solutions LLC, FTC File No. 051–0094, Decision and Order (Jan. 23, 2008), available at http://www.ftc.gov/os/caselist/ 0510094/080122do.pdf; In re Robert Bosch GmbH, FTC File N. 121–0081, Decision and Order (Nov. 26, 2012), available at http://www.ftc.gov/os/caselist/ 1210081/121126boschdo.pdf. 4 See, e.g., Allied Tube & Conduit Corp. v. Indian Head, Inc., 486 U.S. 492, 500–01 (1988) (noting that E:\FR\FM\16JAN1.SGM Continued 16JAN1

Agencies

[Federal Register Volume 78, Number 11 (Wednesday, January 16, 2013)]
[Notices]
[Pages 3425-3427]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00744]


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

FEDERAL TRADE COMMISSION

[File No. 112 3195]


Filiquarian Publishing, LLC; Choice Level, LLC; and Joshua Linsk; 
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.

[[Page 3426]]


DATES: Comments must be received on or before February 11, 2013.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/filiquarianconsent online or on paper, 
by following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Filiquarian, File No. 
112 3195'' on your comment and file your comment online at https://ftcpublic.commentworks.com/ftc/filiquarianconsent by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex 
D), 600 Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Jessica Lyon (202-326-2344), FTC, 
Bureau of Consumer Protection, 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 January 10, 2013), on the World Wide Web, 
at http://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, DC 20580, either in person or by calling (202) 326-
2222.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before February 11, 
2013. Write ``Filiquarian, File No. 112 3195'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including, to the extent practicable, 
on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to 
remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver' license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which * * * is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
---------------------------------------------------------------------------

    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    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/filiquarianconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you file your comment on paper, write ``Filiquarian, File No. 
112 3195'' on your comment and on the envelope, and mail or deliver it 
to the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before February 11, 2013. You can find more 
information, including routine uses permitted by the Privacy Act, in 
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Agreement Containing Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement containing a consent order from Filiquarian 
Publishing, LLC; Choice Level, LLC; and Joshua Linsk, individually, and 
as an officer of the companies.
    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.
    The Commission's proposed administrative complaint alleges that the 
companies were operating as consumer reporting agencies without any 
procedures or policies in place to comply with the Fair Credit 
Reporting Act (``FCRA'').
    The respondents sold background screening reports containing 
criminal records through mobile applications (``apps'') available in 
the iTunes and Google Android store (now GooglePlay) and through a Web 
site. Filiquarian developed and marketed apps that sold for $0.99 each 
and allowed purchasers to conduct unlimited searches of criminal 
history information within a specific geographic area, such as a state 
or county. Each app included an express representation that purchasers 
could use the reports for employment purposes. Choice Level provided 
the underlying records accessed by purchasers of the Filiquarian apps. 
Joshua Linsk is the owner and sole officer of Filiquarian and Choice 
Level. During all times material to this complaint, Linsk, individually 
or in concert with others, formulated, directed, or controlled the 
policies, acts, or practices of the companies.

[[Page 3427]]

    According to the complaint, despite Filiquarian clearly promoting 
its background reports for use in employment screening, both 
Filiquarian and Choice Level included disclaimers in their terms and 
conditions stating that their reports were not to be considered a 
screening product for insurance, employment, or credit, and that they 
were not compliant with the FCRA. Such disclaimers contradicted and 
failed to counteract the express representations made in Filiquarian's 
advertising, urging the use of the reports to screen potential 
employees. Marketing and selling background screening reports to 
potential employers without implementing any of the accuracy or dispute 
safeguards required by the FCRA potentially exposes a large number of 
consumers to harm to their reputations and employment prospects.
    The complaint alleges that the reports produced by respondents were 
consumer reports under the FCRA and that respondents lacked any 
policies or procedures to comply with the FCRA. Specifically, the 
complaint alleges that respondents failed to adhere to three key 
requirements of the FCRA: to maintain reasonable procedures to verify 
who their users are and that the information would be used for a 
permissible purpose; to ensure that the information they provided in 
consumer reports was accurate; and to provide notices to users and to 
those who furnished proposed respondents with information that was 
included in consumer reports. The complaint further alleges that by 
their violations of the FCRA, as stated above, proposed respondents 
have engaged in unfair and deceptive acts and practices, in violation 
of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. 45(a).
    The proposed consent order contains provisions designed to prevent 
the respondents from engaging in the future in practices similar to 
those alleged in the complaint.
    Part I of the order includes injunctive relief requiring 
respondents to comply with the relevant provisions of the FCRA. Parts 
II through VI are reporting and compliance provisions. Part II requires 
respondents to retain documents relating to their compliance with the 
order for a five-year period. Part III requires 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. Part V mandates that respondents 
submit a compliance report to the FTC within 60 days, and periodically 
thereafter as requested. Part VI is a provision ``sunsetting'' the 
order after twenty (20) years, with certain exceptions.
    The purpose of this 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.
Richard C. Donohue,
Acting Secretary.
[FR Doc. 2013-00744 Filed 1-15-13; 8:45 am]
BILLING CODE 6750-01-P