ASUSTeK Computer, Inc.; Analysis of Proposed Consent Order To Aid Public Comment, 9856-9859 [2016-04190]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES 9856 Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Notices Title: Section 69.605, Reporting and Distribution of Pool Access Revenues, Part 69–Access Charges. Form Number: N/A. Type of Review: Extension of a currently approved collection. Respondents: Business or other forprofit. Number of Respondents and Responses: 1,064 respondents; 12,757 responses. Estimated Time per Response: 0.75 hours–1 hour. Frequency of Response: Annual and monthly reporting requirements and third party disclosure requirement. Obligation to Respond: Required to obtain or retain benefits. Statutory authority for this information collection is contained in 47 U.S.C. 154, 201, 202, 203, 205, 218 and 403 of the Communications Act of 1934, as amended. Total Annual Burden: 9,568 hours. Total Annual Cost: No cost. Privacy Impact Assessment: No impact(s). Nature and Extent of Confidentiality: There is no need for confidentiality. Needs and Uses: The Commission is requesting approval for an extension (no change in the reporting and/or third party disclosure requirements). Due to consolidation in the telecommunications marketplace, there is a decrease in the Commission’s burden estimates. Section 69.605 requires that access revenues and cost data shall be reported by participants in association tariffs to the association for computation of monthly pool revenues distributions. The association shall submit a report on or before February 1 of each calendar year describing the associations’ cost study review process for the preceding calendar year as well as the results of that process. For any revisions to the cost study results made or recommended by the association that would change the respective carrier’s calculated annual common line or traffic sensitive revenue requirement by ten percent or more, the report shall include the following information: (1) Name of the carrier; (2) A detailed description of the revisions; (3) The amount of the revisions; (4) The impact of the revisions on the carrier’s calculated common line and traffic sensitive revenue requirements; and (5) The carrier’s total annual common line and traffic sensitive revenue requirement. The information is used to compute charges in tariffs for access service (or origination and termination) and to compute revenue pool distributions. Neither process could be implemented without the information. VerDate Sep<11>2014 20:41 Feb 25, 2016 Jkt 238001 Federal Communications Commission. Gloria J. Miles, Federal Register Liaison Officer, Office of the Secretary. [FR Doc. 2016–04131 Filed 2–25–16; 8:45 am] BILLING CODE 6712–01–P FEDERAL TRADE COMMISSION [File No. 142–3156] ASUSTeK Computer, Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed Consent Agreement. AGENCY: ACTION: FEDERAL RESERVE SYSTEM Notice of Proposals To Engage in or To Acquire Companies Engaged in Permissible Nonbanking Activities The companies listed in this notice have given notice under section 4 of the Bank Holding Company Act (12 U.S.C. 1843) (BHC Act) and Regulation Y, (12 CFR part 225) to engage de novo, or to acquire or control voting securities or assets of a company, including the companies listed below, that engages either directly or through a subsidiary or other company, in a nonbanking activity that is listed in § 225.28 of Regulation Y (12 CFR 225.28) or that the Board has determined by Order to be closely related to banking and permissible for bank holding companies. Unless otherwise noted, these activities will be conducted throughout the United States. Each notice is available for inspection at the Federal Reserve Bank indicated. The notice also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the question whether the proposal complies with the standards of section 4 of the BHC Act. Unless otherwise noted, comments regarding the notices must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than March 24, 2016. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. Royal Financial, Inc., Chicago, Illinois; to merge with Park Bancorp, Inc., and indirectly acquire Park Federal Savings Bank, both in Chicago, Illinois, and thereby engage in operating a savings association, pursuant to section 225.28(b)(4)(ii). Board of Governors of the Federal Reserve System, February 23, 2016. Michael J. Lewandowski, Associate Secretary of the Board. [FR Doc. 2016–04132 Filed 2–25–16; 8:45 am] BILLING CODE 6210–01–P PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations. DATES: Comments must be received on or before March 24, 2016. ADDRESSES: Interested parties may file a comment at https://ftcpublic.comment works.com/ftc/asusconsent online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘ASUSTeK Computer Inc.,—Consent Agreement; File No. 142–3156’’ on your comment and file your comment online at https:// ftcpublic.commentworks.com/ftc/ asusconsent by following the instructions on the web-based form. If you prefer to file your comment on paper, write ‘‘ASUSTeK Computer Inc.,—Consent Agreement; File No. 142–3156’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: Nithan Sannappa (202) 326–3185 or Jarad Brown (202) 326–2927, 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 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 SUMMARY: E:\FR\FM\26FEN1.SGM 26FEN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Notices agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for February 23, 2016), on the World Wide Web at: http://www.ftc. gov/os/actions.shtm. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before March 24, 2016. Write ‘‘ASUSTeK Computer Inc.,—Consent Agreement; File No. 142–3156’’ on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/ publiccomments.shtm. As a matter of discretion, the Commission tries to remove individuals’ home contact information from comments before placing them on the Commission Web site. Because your comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone’s Social Security number, date of birth, driver’s license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do not include any ‘‘[t]rade secret or any commercial or financial information which . . . is privileged or confidential,’’ as discussed in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 4.9(c).1 Your comment will be kept confidential only if the FTC General Counsel, in his or her sole discretion, 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). VerDate Sep<11>2014 20:41 Feb 25, 2016 Jkt 238001 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/ asusconsent 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 ‘‘ASUSTeK Computer Inc.,— Consent Agreement; File No. 142–3156’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC– 5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service. Visit the Commission Web site at http://www.ftc.gov to read this Notice and the news release describing it. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before March 24, 2016. You can find more information, including routine uses permitted by the Privacy Act, in the Commission’s privacy policy, at http://www.ftc.gov/ftc/privacy.htm. Analysis of Proposed Consent Order To Aid Public Comment The Federal Trade Commission has accepted, subject to final approval, a consent order applicable to ASUSTeK Computer, Inc. (‘‘ASUS’’). 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. ASUS is a hardware manufacturer that, among other things, sells routers, PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 9857 and related software and services, intended for consumer use. Routers forward data packets along a network. In addition to routing network traffic, consumer routers typically function as a hardware firewall for the local network, and act as the first line of defense in protecting consumer devices on the local network, such as computers, smartphones, internet-protocol (‘‘IP’’) cameras, and other connected appliances, against malicious incoming traffic from the internet. ASUS marketed its routers as including security features such as ‘‘intrusion detection,’’ and instructed consumers to ‘‘enable the [router’s] firewall to protect your local network against attacks from hackers.’’ Many of ASUS’s routers also include ‘‘cloud’’ software features called AiCloud and AiDisk that allow consumers to attach a USB storage device to their router and then wirelessly access and share files. ASUS publicized AiCloud as a ‘‘private personal cloud for selective file sharing’’ that featured ‘‘indefinite storage and increased privacy’’ and described the feature as ‘‘the most complete, accessible, and secure cloud platform.’’ Similarly, ASUS promoted AiDisk as a way to ‘‘safely secure and access your treasured data through your router.’’ The Commission’s complaint alleges that, despite these representations, ASUS engaged in a number of practices that, taken together, failed to provide reasonable security in the design and maintenance of the software developed for its routers and related ‘‘cloud’’ features. The complaint challenges these failures as both deceptive and unfair. Among other things, the complaint alleges that ASUS failed to: a. Perform security architecture and design reviews to ensure that the software is designed securely, including failing to: i. Use readily-available secure protocols when designing features intended to provide consumers with access to their sensitive personal information. For example, ASUS designed the AiDisk feature to use FTP rather than a protocol that supports transit encryption; ii. implement secure default settings or, at the least, provide sufficient information that would ensure that consumers did not unintentionally expose sensitive personal information; iii. prevent consumers from using weak default login credentials. For example, respondent allowed consumers to retain weak default login credentials to protect critical functions, such as username ‘‘admin’’ and password ‘‘admin’’ for the admin console, and username ‘‘Family’’ and E:\FR\FM\26FEN1.SGM 26FEN1 mstockstill on DSK4VPTVN1PROD with NOTICES 9858 Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Notices password ‘‘Family’’ for the AiDisk FTP server; b. perform reasonable and appropriate code review and testing of the software to verify that access to data is restricted consistent with a user’s privacy and security settings; c. perform vulnerability and penetration testing of the software, including for well-known and reasonably foreseeable vulnerabilities that could be exploited to gain unauthorized access to consumers’ sensitive personal information and local networks, such as authentication bypass, clear-text password disclosure, cross-site scripting, cross-site request forgery, and buffer overflow vulnerabilities; d. implement readily-available, lowcost protections against well-known and reasonably foreseeable vulnerabilities, as described in (c), such as input validation, anti-CSRF tokens, and session time-outs; e. maintain an adequate process for receiving and addressing security vulnerability reports from third parties such as security researchers and academics; f. perform sufficient analysis of reported vulnerabilities in order to correct or mitigate all reasonably detectable instances of a reported vulnerability, such as those elsewhere in the software or in future releases; and g. provide adequate notice to consumers regarding (i) known vulnerabilities or security risks, (ii) steps that consumers could take to mitigate such vulnerabilities or risks, and (iii) the availability of software updates that would correct or mitigate the vulnerabilities or risks. The Complaint further alleges that, due to these failures, ASUS has subjected its customers to a significant risk that their sensitive personal information and local networks will be subject to unauthorized access. For example, on or before February 1, 2014, a group of hackers exploited vulnerabilities and design flaws in ASUS’s routers to gain unauthorized access to thousands of consumers’ USB storage devices. Numerous consumers reported having their routers compromised, and some complained that a major search engine had indexed the files that the vulnerable routers had exposed, making them easily searchable online. Others claimed to be the victims of related identity theft, including a consumer who claimed identity thieves had gained unauthorized access to his USB storage device, which contained his family’s sensitive personal information, such as login credentials, social security numbers, dates of birth, VerDate Sep<11>2014 20:41 Feb 25, 2016 Jkt 238001 and tax returns. According to the consumer, the identity thieves used this information to make thousands of dollars of fraudulent charges to his financial accounts, requiring him to cancel accounts and place a fraud alert on his credit report. In addition, in April 2015, a malware researcher discovered a large-scale, active exploit campaign that reconfigured vulnerable routers so that the attackers could control and redirect consumers’ web traffic. This exploit campaign specifically targeted numerous ASUS router models. The proposed consent order contains provisions designed to prevent ASUS from engaging in the future in practices similar to those alleged in the complaint. Part I of the proposed consent order prohibits ASUS from misrepresenting: (1) The extent to which it maintains and protects the security of any covered device (including routers), or the security, privacy, confidentiality, or integrity of any covered information; (2) the extent to which a consumer can use a covered device to secure a network; and (3) the extent to which a covered device is using up-to-date software. Part II of the proposed consent order requires ASUS to establish and implement, and thereafter maintain, a comprehensive security program that is reasonably designed to (1) address security risks related to the development and management of new and existing covered devices; and (2) protect the privacy, security, confidentiality, and integrity of covered information. The security program must contain administrative, technical, and physical safeguards appropriate to ASUS’s size and complexity, nature and scope of its activities, and the sensitivity of the covered device’s function or the sensitivity of the covered information. Specifically, the proposed order requires ASUS to: a. Designate an employee or employees to coordinate and be accountable for the information security program; b. identify material internal and external risks to the security of covered devices that could result in unauthorized access to or unauthorized modification of a covered device, and assess the sufficiency of any safeguards in place to control these risks; c. identify material internal and external risks to the privacy, security, confidentiality, and integrity of covered information that could result in the unintentional exposure of such information by consumers or the unauthorized disclosure, misuse, loss, alteration, destruction, or other PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 compromise of such information, and assessment of the sufficiency of any safeguards in place to control these risks; d. consider risks in each area of relevant operation, including, but not limited to: (1) Employee training and management, including in secure engineering and defensive programming; (2) product design, development, and research; (3) secure software design, development, and testing, including for default settings; (4) review, assessment, and response to third-party security vulnerability reports, and (5) prevention, detection, and response to attacks, intrusions, or systems failures; e. design and implement reasonable safeguards to control the risks identified through risk assessment, including through reasonable and appropriate software security testing techniques, and regularly test or monitor the effectiveness of the safeguards’ key controls, systems, and procedures; f. develop and use reasonable steps to select and retain service providers capable of maintaining security practices consistent with the order, and require service providers by contract to implement and maintain appropriate safeguards; and g. evaluate and adjust its information security program in light of the results of testing and monitoring, any material changes to ASUS’s operations or business arrangement, or any other circumstances that it knows or has reason to know may have a material impact on its security program. Part III of the proposed consent order requires ASUS to obtain, within the first one hundred eighty (180) days after service of the order 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 II of the proposed consent order; and (2) its security program is operating with sufficient effectiveness to provide reasonable assurance that the security of covered devices and the privacy, security, confidentiality, and integrity of covered information is protected. Part IV of the proposed consent order requires ASUS to provide clear and conspicuous notice to consumers when a software update for a covered device that addresses a security flaw is available or when ASUS is aware of reasonable steps that a consumer could take to mitigate a security flaw in a covered device. In addition to posting E:\FR\FM\26FEN1.SGM 26FEN1 Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Notices notice on its Web site and informing consumers that contact the company, ASUS must provide security-related notifications directly to consumers. For this purpose, ASUS must provide consumers with an opportunity to register an email address, phone number, device, or other information during the initial setup or configuration of a covered device. Parts V through IX of the proposed consent order are reporting and compliance provisions. Part V requires ASUS to retain documents relating to its compliance with the order. The order requires that materials relied upon to prepare the assessments required by Part III be retained for a three-year period, and that all other documents related to compliance with the order be retained for a five-year period. Part VI requires dissemination of the order now and in the future to all current and future subsidiaries, current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having supervisory responsibilities relating to the subject matter of the order. Part VII ensures notification to the FTC of changes in corporate status. Part VIII mandates that ASUS submit a compliance report to the FTC within 60 days, and periodically thereafter as requested. Part IX is a provision ‘‘sunsetting’’ the order after (20) years, with certain exceptions. The purpose of this analysis is to facilitate public comment on the proposed consent order. It is not intended to constitute an official interpretation of the proposed complaint or consent order or to modify the consent order’s terms in any way. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2016–04190 Filed 2–25–16; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services mstockstill on DSK4VPTVN1PROD with NOTICES [CMS–3331–N] Medicare Program; Meeting of the Medicare Evidence Development and Coverage Advisory Committee—April 27, 2016 Centers for Medicare & Medicaid Services (CMS), HHS. ACTION: Notice of meeting. AGENCY: VerDate Sep<11>2014 20:41 Feb 25, 2016 Jkt 238001 This notice announces that a public meeting of the Medicare Evidence Development & Coverage Advisory Committee (MEDCAC) (‘‘Committee’’) will be held on Wednesday, April 27, 2016. This meeting will specifically focus on obtaining the MEDCAC’s recommendations regarding the definition of treatment resistant depression (TRD) as well as to advise CMS on the use of the definition of TRD in the context of coverage with evidence development and treatment outcomes. This meeting is open to the public in accordance with the Federal Advisory Committee Act (5 U.S.C. App. 2, section 10(a)). DATES: Meeting Date: The public meeting will be held on Wednesday, April 27, 2016 from 7:30 a.m. until 4:30 p.m., Eastern Daylight Time (EDT). Deadline for Submission of Written Comments: Written comments must be received at the address specified in the ADDRESSES section of this notice by 5:00 p.m., EDT, Monday, March 28, 2016. Once submitted, all comments are final. Deadlines for Speaker Registration and Presentation Materials: The deadline to register to be a speaker and to submit PowerPoint presentation materials and writings that will be used in support of an oral presentation is 5:00 p.m., EDT on Monday, March 28, 2016. Speakers may register by phone or via email by contacting the person listed in the FOR FURTHER INFORMATION CONTACT section of this notice. Presentation materials must be received at the address specified in the ADDRESSES section of this notice. Deadline for All Other Attendees Registration: Individuals may register online at http://www.cms.gov/apps/ events/upcomingevents.asp?strOrder By=1&type=3 or by phone by contacting the person listed in the FOR FURTHER INFORMATION CONTACT section of this notice by 5:00 p.m. EDT, Wednesday, April 20, 2016. We will be broadcasting the meeting live via Webcast at http://www.cms.gov/ live/. Deadline for Submitting a Request for Special Accommodations: Persons attending the meeting who are hearing or visually impaired, or have a condition that requires special assistance or accommodations, are asked to contact the Executive Secretary as specified in the FOR FURTHER INFORMATION CONTACT section of this notice no later than 5:00 p.m., EDT Friday, April 1, 2016. ADDRESSES: Meeting Location: The meeting will be held in the main auditorium of the Centers for Medicare SUMMARY: PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 9859 & Medicaid Services, 7500 Security Boulevard, Baltimore, MD 21244. Submission of Presentations and Comments: Presentation materials and written comments that will be presented at the meeting must be submitted via email to MedCACpresentations@ cms.hhs.gov or by regular mail to the contact listed in the FOR FURTHER INFORMATION CONTACT section of this notice by the date specified in the DATES section of this notice. FOR FURTHER INFORMATION CONTACT: Maria Ellis, Executive Secretary for MEDCAC, Centers for Medicare & Medicaid Services, Center for Clinical Standards and Quality, Coverage and Analysis Group, S3–02–01, 7500 Security Boulevard, Baltimore, MD 21244 or contact Ms. Ellis by phone (410–786–0309) or via email at Maria.Ellis@cms.hhs.gov. SUPPLEMENTARY INFORMATION: I. Background MEDCAC, formerly known as the Medicare Coverage Advisory Committee (MCAC), is advisory in nature, with all final coverage decisions resting with CMS. MEDCAC is used to supplement CMS’ internal expertise. Accordingly, the advice rendered by the MEDCAC is most useful when it results from a process of full scientific inquiry and thoughtful discussion, in an open forum, with careful framing of recommendations and clear identification of the basis of those recommendations. MEDCAC members are valued for their background, education, and expertise in a wide variety of scientific, clinical, and other related fields. (For more information on MCAC, see the MEDCAC Charter (http://www.cms.gov/Regulations-andGuidance/Guidance/FACA/Downloads/ medcaccharter.pdf) and the CMS Guidance Document, Factors CMS Considers in Referring Topics to the MEDCAC (http://www.cms.gov/ medicare-coverage-database/details/ medicare-coverage-documentdetails.aspx?MCDId=10)). II. Meeting Topic and Format This notice announces the Wednesday, April 27, 2016, public meeting of the Committee. During this meeting, the Committee will discuss recommendations regarding the definition of treatment resistant depression (TRD) and provide advice to CMS on the use of the definition of TRD in the context of coverage with evidence development and treatment outcomes. Background information about this topic, including panel materials, is available at http://www.cms.gov/ E:\FR\FM\26FEN1.SGM 26FEN1

Agencies

[Federal Register Volume 81, Number 38 (Friday, February 26, 2016)]
[Notices]
[Pages 9856-9859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04190]


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FEDERAL TRADE COMMISSION

[File No. 142-3156]


ASUSTeK Computer, Inc.; Analysis of Proposed Consent Order To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis to Aid Public Comment describes both 
the allegations in the draft complaint and the terms of the consent 
order--embodied in the consent agreement--that would settle these 
allegations.

DATES: Comments must be received on or before March 24, 2016.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/asusconsent online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``ASUSTeK Computer 
Inc.,--Consent Agreement; File No. 142-3156'' on your comment and file 
your comment online at https://ftcpublic.commentworks.com/ftc/asusconsent by following the instructions on the web-based form. If you 
prefer to file your comment on paper, write ``ASUSTeK Computer Inc.,--
Consent Agreement; File No. 142-3156'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Nithan Sannappa (202) 326-3185 or 
Jarad Brown (202) 326-2927, 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 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

[[Page 9857]]

agreement, and the allegations in the complaint. An electronic copy of 
the full text of the consent agreement package can be obtained from the 
FTC Home Page (for February 23, 2016), on the World Wide Web at: http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before March 24, 2016. 
Write ``ASUSTeK Computer Inc.,--Consent Agreement; File No. 142-3156'' 
on your comment. Your comment--including your name and your state--will 
be placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    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/asusconsent 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 ``ASUSTeK Computer Inc.,--
Consent Agreement; File No. 142-3156'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before March 24, 2016. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, a consent order applicable to ASUSTeK Computer, Inc. 
(``ASUS'').
    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.
    ASUS is a hardware manufacturer that, among other things, sells 
routers, and related software and services, intended for consumer use. 
Routers forward data packets along a network. In addition to routing 
network traffic, consumer routers typically function as a hardware 
firewall for the local network, and act as the first line of defense in 
protecting consumer devices on the local network, such as computers, 
smartphones, internet-protocol (``IP'') cameras, and other connected 
appliances, against malicious incoming traffic from the internet. ASUS 
marketed its routers as including security features such as ``intrusion 
detection,'' and instructed consumers to ``enable the [router's] 
firewall to protect your local network against attacks from hackers.''
    Many of ASUS's routers also include ``cloud'' software features 
called AiCloud and AiDisk that allow consumers to attach a USB storage 
device to their router and then wirelessly access and share files. ASUS 
publicized AiCloud as a ``private personal cloud for selective file 
sharing'' that featured ``indefinite storage and increased privacy'' 
and described the feature as ``the most complete, accessible, and 
secure cloud platform.'' Similarly, ASUS promoted AiDisk as a way to 
``safely secure and access your treasured data through your router.''
    The Commission's complaint alleges that, despite these 
representations, ASUS engaged in a number of practices that, taken 
together, failed to provide reasonable security in the design and 
maintenance of the software developed for its routers and related 
``cloud'' features. The complaint challenges these failures as both 
deceptive and unfair. Among other things, the complaint alleges that 
ASUS failed to:
    a. Perform security architecture and design reviews to ensure that 
the software is designed securely, including failing to:
    i. Use readily-available secure protocols when designing features 
intended to provide consumers with access to their sensitive personal 
information. For example, ASUS designed the AiDisk feature to use FTP 
rather than a protocol that supports transit encryption;
    ii. implement secure default settings or, at the least, provide 
sufficient information that would ensure that consumers did not 
unintentionally expose sensitive personal information;
    iii. prevent consumers from using weak default login credentials. 
For example, respondent allowed consumers to retain weak default login 
credentials to protect critical functions, such as username ``admin'' 
and password ``admin'' for the admin console, and username ``Family'' 
and

[[Page 9858]]

password ``Family'' for the AiDisk FTP server;
    b. perform reasonable and appropriate code review and testing of 
the software to verify that access to data is restricted consistent 
with a user's privacy and security settings;
    c. perform vulnerability and penetration testing of the software, 
including for well-known and reasonably foreseeable vulnerabilities 
that could be exploited to gain unauthorized access to consumers' 
sensitive personal information and local networks, such as 
authentication bypass, clear-text password disclosure, cross-site 
scripting, cross-site request forgery, and buffer overflow 
vulnerabilities;
    d. implement readily-available, low-cost protections against well-
known and reasonably foreseeable vulnerabilities, as described in (c), 
such as input validation, anti-CSRF tokens, and session time-outs;
    e. maintain an adequate process for receiving and addressing 
security vulnerability reports from third parties such as security 
researchers and academics;
    f. perform sufficient analysis of reported vulnerabilities in order 
to correct or mitigate all reasonably detectable instances of a 
reported vulnerability, such as those elsewhere in the software or in 
future releases; and
    g. provide adequate notice to consumers regarding (i) known 
vulnerabilities or security risks, (ii) steps that consumers could take 
to mitigate such vulnerabilities or risks, and (iii) the availability 
of software updates that would correct or mitigate the vulnerabilities 
or risks.
    The Complaint further alleges that, due to these failures, ASUS has 
subjected its customers to a significant risk that their sensitive 
personal information and local networks will be subject to unauthorized 
access. For example, on or before February 1, 2014, a group of hackers 
exploited vulnerabilities and design flaws in ASUS's routers to gain 
unauthorized access to thousands of consumers' USB storage devices. 
Numerous consumers reported having their routers compromised, and some 
complained that a major search engine had indexed the files that the 
vulnerable routers had exposed, making them easily searchable online. 
Others claimed to be the victims of related identity theft, including a 
consumer who claimed identity thieves had gained unauthorized access to 
his USB storage device, which contained his family's sensitive personal 
information, such as login credentials, social security numbers, dates 
of birth, and tax returns. According to the consumer, the identity 
thieves used this information to make thousands of dollars of 
fraudulent charges to his financial accounts, requiring him to cancel 
accounts and place a fraud alert on his credit report. In addition, in 
April 2015, a malware researcher discovered a large-scale, active 
exploit campaign that reconfigured vulnerable routers so that the 
attackers could control and redirect consumers' web traffic. This 
exploit campaign specifically targeted numerous ASUS router models.
    The proposed consent order contains provisions designed to prevent 
ASUS from engaging in the future in practices similar to those alleged 
in the complaint. Part I of the proposed consent order prohibits ASUS 
from misrepresenting: (1) The extent to which it maintains and protects 
the security of any covered device (including routers), or the 
security, privacy, confidentiality, or integrity of any covered 
information; (2) the extent to which a consumer can use a covered 
device to secure a network; and (3) the extent to which a covered 
device is using up-to-date software.
    Part II of the proposed consent order requires ASUS to establish 
and implement, and thereafter maintain, a comprehensive security 
program that is reasonably designed to (1) address security risks 
related to the development and management of new and existing covered 
devices; and (2) protect the privacy, security, confidentiality, and 
integrity of covered information. The security program must contain 
administrative, technical, and physical safeguards appropriate to 
ASUS's size and complexity, nature and scope of its activities, and the 
sensitivity of the covered device's function or the sensitivity of the 
covered information. Specifically, the proposed order requires ASUS to:
    a. Designate an employee or employees to coordinate and be 
accountable for the information security program;
    b. identify material internal and external risks to the security of 
covered devices that could result in unauthorized access to or 
unauthorized modification of a covered device, and assess the 
sufficiency of any safeguards in place to control these risks;
    c. identify material internal and external risks to the privacy, 
security, confidentiality, and integrity of covered information that 
could result in the unintentional exposure of such information by 
consumers or the unauthorized disclosure, misuse, loss, alteration, 
destruction, or other compromise of such information, and assessment of 
the sufficiency of any safeguards in place to control these risks;
    d. consider risks in each area of relevant operation, including, 
but not limited to: (1) Employee training and management, including in 
secure engineering and defensive programming; (2) product design, 
development, and research; (3) secure software design, development, and 
testing, including for default settings; (4) review, assessment, and 
response to third-party security vulnerability reports, and (5) 
prevention, detection, and response to attacks, intrusions, or systems 
failures;
    e. design and implement reasonable safeguards to control the risks 
identified through risk assessment, including through reasonable and 
appropriate software security testing techniques, and regularly test or 
monitor the effectiveness of the safeguards' key controls, systems, and 
procedures;
    f. develop and use reasonable steps to select and retain service 
providers capable of maintaining security practices consistent with the 
order, and require service providers by contract to implement and 
maintain appropriate safeguards; and
    g. evaluate and adjust its information security program in light of 
the results of testing and monitoring, any material changes to ASUS's 
operations or business arrangement, or any other circumstances that it 
knows or has reason to know may have a material impact on its security 
program.
    Part III of the proposed consent order requires ASUS to obtain, 
within the first one hundred eighty (180) days after service of the 
order 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 II of the proposed 
consent order; and (2) its security program is operating with 
sufficient effectiveness to provide reasonable assurance that the 
security of covered devices and the privacy, security, confidentiality, 
and integrity of covered information is protected.
    Part IV of the proposed consent order requires ASUS to provide 
clear and conspicuous notice to consumers when a software update for a 
covered device that addresses a security flaw is available or when ASUS 
is aware of reasonable steps that a consumer could take to mitigate a 
security flaw in a covered device. In addition to posting

[[Page 9859]]

notice on its Web site and informing consumers that contact the 
company, ASUS must provide security-related notifications directly to 
consumers. For this purpose, ASUS must provide consumers with an 
opportunity to register an email address, phone number, device, or 
other information during the initial setup or configuration of a 
covered device.
    Parts V through IX of the proposed consent order are reporting and 
compliance provisions. Part V requires ASUS to retain documents 
relating to its compliance with the order. The order requires that 
materials relied upon to prepare the assessments required by Part III 
be retained for a three-year period, and that all other documents 
related to compliance with the order be retained for a five-year 
period. Part VI requires dissemination of the order now and in the 
future to all current and future subsidiaries, current and future 
principals, officers, directors, and managers, and to all current and 
future employees, agents, and representatives having supervisory 
responsibilities relating to the subject matter of the order. Part VII 
ensures notification to the FTC of changes in corporate status. Part 
VIII mandates that ASUS submit a compliance report to the FTC within 60 
days, and periodically thereafter as requested. Part IX is a provision 
``sunsetting'' the order after (20) years, with certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent order. It is not intended to constitute an official 
interpretation of the proposed complaint or consent order or to modify 
the consent order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-04190 Filed 2-25-16; 8:45 am]
BILLING CODE 6750-01-P