DealerBuilt/LightYear Dealer Technologies; Analysis To Aid Public Comment, 28054-28056 [2019-12768]

Download as PDF 28054 Federal Register / Vol. 84, No. 116 / Monday, June 17, 2019 / Notices such records or disclosures are obtained by the Board as part of an examination or supervision of a financial institution, this information is considered confidential pursuant to exemption 8 of the FOIA, which protects information contained in ‘‘examination, operating, or condition reports’’ obtained in the bank supervisory process (5 U.S.C. 552(b)(8)). In addition, certain information (such as records generated during the investigation of a direct dispute notice submitted by a consumer) also may be withheld under exemption 6 of the FOIA, which protects from disclosure information that ‘‘would constitute a clearly unwarranted invasion of personal privacy’’ (5 U.S.C. 552(b)(6)). Current actions: On March 19, 2019, the Board published a notice in the Federal Register (84 FR 10070) requesting public comment for 60 days on the extension, without revision, of the Recordkeeping and Disclosure Requirements Associated with Regulation V (Fair Credit Reporting) (FR V). The comment period for this notice expired on May 20, 2019. The Board did not receive any comments. Board of Governors of the Federal Reserve System, June 11, 2019. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2019–12694 Filed 6–14–19; 8:45 am] BILLING CODE 6210–01–P 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 July 15, 2019. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. First Merchants Corporation, Muncie, Indiana; to merge with MBT Financial Corp. and thereby indirectly acquire Monroe Bank & Trust, both of Monroe, Michigan. Board of Governors of the Federal Reserve System, June 12, 2019. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2019–12739 Filed 6–14–19; 8:45 am] BILLING CODE P FEDERAL TRADE COMMISSION [File No. 172 3051] DealerBuilt/LightYear Dealer Technologies; Analysis To Aid Public Comment Federal Trade Commission. Proposed consent agreement; request for comment. AGENCY: ACTION: FEDERAL RESERVE SYSTEM khammond on DSKBBV9HB2PROD with NOTICES 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 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 VerDate Sep<11>2014 16:34 Jun 14, 2019 Jkt 247001 The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis to Aid Public Comment describes both the allegations in the complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations. SUMMARY: Comments must be received on or before July 17, 2019. ADDRESSES: Interested parties may file comments online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write: ‘‘DealerBuilt/LightYear Dealer Technologies; File No. 172 3051’’ on your comment, and file your comment online at https:// www.regulations.gov by following the instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite DATES: PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 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: Jamie Hine (202–326–2188), Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty (30) days. The following Analysis to Aid Public Comment describes the terms of the consent agreement and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for June 12, 2019), on the World Wide Web, at https:// www.ftc.gov/news-events/commissionactions. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before July 17, 2019. Write ‘‘DealerBuilt/ LightYear Dealer Technologies; File No. 172 3051’’ 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 https:// www.regulations.gov website. 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 through the https:// www.regulations.gov website. If you prefer to file your comment on paper, write ‘‘DealerBuilt/LightYear Dealer Technologies; File No. 172 3051’’ 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. E:\FR\FM\17JNN1.SGM 17JNN1 khammond on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 84, No. 116 / Monday, June 17, 2019 / Notices Because your comment will be placed on the publicly accessible website at https://www.regulations.gov, you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else’s Social Security number; date of birth; driver’s license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any ‘‘trade secret or any commercial or financial information which . . . is privileged or confidential’’—as provided by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on the public FTC website—as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment from the FTC website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request. Visit the FTC website at http:// www.ftc.gov to read this Notice and the news release describing it. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding, as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before July 17, 2019. For information on the Commission’s privacy policy, including routine uses VerDate Sep<11>2014 16:34 Jun 14, 2019 Jkt 247001 permitted by the Privacy Act, see https://www.ftc.gov/site-information/ privacy-policy. Analysis of Proposed Consent Order To Aid Public Comment The Federal Trade Commission (‘‘Commission’’) has accepted, subject to final approval, an agreement containing a consent order from LightYear Dealer Technologies, LLC, also doing business as DealerBuilt (‘‘Respondent’’). The proposed consent order (‘‘proposed 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. This matter involves DealerBuilt (‘‘DealerBuilt’’), a technology company that develops and sells dealer management system software and data processing services to automotive dealerships nationwide. Respondent has stored personal information about more than 14 million consumers. The Commission’s proposed twocount complaint alleges that Respondent has violated Section 5(a) of the Federal Trade Commission Act and the Standards for Safeguarding Customer Information Rule (‘‘Safeguards Rule’’), issued pursuant to Title I of the Gramm-Leach-Bliley Act (‘‘GLB’’). First, the proposed complaint alleges that Respondent has engaged in a number of unreasonable security practices that led to a hacker’s unauthorized access of personal information belonging to about 12.5 million consumers. During that breach, the hacker also downloaded the personal information of approximately 70,000 consumers, which was contained in the back-up directories of five DealerBuilt customers. The proposed complaint alleges that Respondent: • Failed to develop, implement, or maintain a written organizational information security policy; • failed to implement reasonable guidance or training for employees or third-party contractors, regarding data security and safeguarding consumers’ personal information; • failed to assess the risks to the personal information stored on its network, such as by conducting periodic risk assessments or performing vulnerability and penetration testing of the network; PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 28055 • failed to use readily available security measures to monitor its systems and assets at discrete intervals to identify data security events (e.g., unauthorized attempts to exfiltrate consumers’ personal information across the company’s network) and verify the effectiveness of protective measures; • failed to impose reasonable data access controls, such as restricting inbound connections to known IP addresses, and requiring authentication to access backup databases; • stored consumers’ personal information on Respondent’s computer network in clear text; and • failed to have a reasonable process to select, install, secure, and inventory devices with access to personal information. The proposed complaint alleges that Respondent could have addressed each of the failures described above by implementing readily available and relatively low-cost security measures. The proposed complaint alleges that Respondent’s failures caused or are likely to cause substantial injury to consumers that is not outweighed by countervailing benefits to consumers or competition and is not reasonably avoidable by consumers themselves. Such practices constitute an unfair act or practice under Section 5 of the FTC Act. Second, the proposed complaint alleges that Respondent violated the Safeguards Rule, which requires financial institutions to protect the security, confidentiality, and integrity of customer information by developing, implementing, and maintaining a comprehensive information security program that is written in one or more readily accessible parts, and that contains administrative, technical, and physical safeguards that are appropriate to the financial institution’s size and complexity, the nature and scope of its activities, and the sensitivity of the customer information at issue. The proposed complaint alleges that Respondent: • Failed to develop, implement, and maintain a written information security program; • failed to identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of customer information and failed to assess the sufficiency of any safeguards in place to control those risks; and • failed to design and implement basic safeguards and to regularly test or otherwise monitor the effectiveness of such safeguards’ key controls, systems, and procedures. E:\FR\FM\17JNN1.SGM 17JNN1 khammond on DSKBBV9HB2PROD with NOTICES 28056 Federal Register / Vol. 84, No. 116 / Monday, June 17, 2019 / Notices The proposed order contains injunctive provisions addressing the alleged unfair conduct in connection with Respondent’s sale of dealer management system software and services. Part I of the proposed order prohibits Respondent, and any business that Respondent controls directly, or indirectly, from transferring, selling, sharing, collecting, maintaining, or storing personal information unless it establishes and implements, and thereafter maintains, a comprehensive information security program that protects the security, confidentiality, and integrity of such personal information. Part II of the proposed order requires Respondent to obtain initial and biennial data security assessments for twenty years. Part III of the agreement requires Respondent to disclose all material facts to the assessor and prohibits Respondent from misrepresenting any fact material to the assessments required by Part II. Part IV requires Respondent to submit an annual certification from a senior corporate manager (or senior officer responsible for its information security program) that Respondent has implemented the requirements of the Order, is not aware of any material noncompliance that has not been corrected or disclosed to the Commission, and includes a brief description of any covered incident involving unauthorized access to or acquisition of personal information. Part V requires Respondent to submit a report to the Commission of its discovery of any covered incident. Part VI is a prohibition against violating GLB. Parts VII through X of the proposed order are reporting and compliance provisions, which include recordkeeping requirements and provisions requiring Respondent to provide information or documents necessary for the Commission to monitor compliance. Part XI states that the proposed order will remain in effect for 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 complaint or proposed order, or to modify in any way the proposed order’s terms. By direction of the Commission. April J. Tabor, Acting Secretary. [FR Doc. 2019–12768 Filed 6–14–19; 8:45 am] BILLING CODE 6750–01–P VerDate Sep<11>2014 16:34 Jun 14, 2019 Jkt 247001 DEPARTMENT OF HEALTH AND HUMAN SERVICES Agency for Healthcare Research and Quality Agency Information Collection Activities: Proposed Collection; Comment Request Agency for Healthcare Research and Quality, HHS. ACTION: Request for Information. AGENCY: AHRQ is re-issuing this Request for Information to extend the date for receipt of comments. AHRQ invites public comment on its Request for Information (RFI) to inform potential revisions to the Consumer Assessment of Healthcare Providers and Systems Health Plan Survey 5.0. The Consumer Assessment of Healthcare Providers and Systems (CAHPS®) Health Plan Survey 5.0 is one of the CAHPS family of surveys that assess patients’ experiences with health care providers, in different settings, and with health plans. The CAHPS surveys cover topics that are important to patients and that they are best able to assess, such as the communication with providers and access to health care services. This RFI requests public comment regarding (1) the relevance and validity of the questions on CAHPS Health Plan Survey 5.0 (the Survey), and (2) any user concerns about revisions to the Survey. SUMMARY: Responses to the RFI must be received no later than June 28, 2019. ADDRESSES: Interested parties are to submit comments electronically to CAHPS1@westat.com with the subject line HP RFI. Non-electronic responses will also be accepted. Please mail to CAHPS; Westat; 1600 Research Blvd.; RB 1186S; Rockville, MD 20850. FOR FURTHER INFORMATION CONTACT: Questions may be addressed to Caren Ginsberg, Director, CAHPS Division, Center for Quality Improvement and Patient Safety, caren.ginsberg@ ahrq.hhs.gov, or (301) 427–1894. SUPPLEMENTARY INFORMATION: The last update of the Survey was in May 2012. AHRQ is considering an update to the Survey to ensure that the Survey questions continue to be relevant to Survey sponsors, users, patients, consumers, and other stakeholders. AHRQ is not seeking information on Survey administration methodology, public reporting, or Survey length with this request. AHRQ is seeking information on current uses of the Survey that reflects organization-specific perspectives, the DATES: PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 impact of a potential Survey revision, and areas of the Survey that should and should not be modified. Respondents should refer to the questions with details on how such a Survey revision might affect the organization(s) they represent. Specific questions of interest to AHRQ include, but are not limited to, the following: 1. How and why does the respondent’s organization use the Survey? For example, is it used for adults, children, or both? In what languages is it administered? What supplemental items, if any, are used (e.g., children with chronic conditions or others)? 2. What is working well/what are the strengths of the Survey? 3. What content areas might be missing from the Survey? 4. What content areas on the Survey are no longer relevant or useful and why? 5. Are there new topic areas the Survey should address? 6. Should the Survey be revised, what implications or barriers would there be for the commenter’s organization to implement a new version of the Survey? 7. What information/documentation would be helpful to the respondent’s organization in making a transition to a future version of the Survey? AHRQ is interested in all of the questions listed above, but respondents are welcome to address as many or as few as they choose and to address additional areas of interest not listed. This RFI is for planning purposes only and should not be construed as a policy, solicitation for applications, or as an obligation on the part of the Government to provide support for any ideas in response to it. AHRQ will use the information submitted in response to this RFI at its discretion, and will not provide comments to any respondent’s submission. However, responses to the RFI may be reflected in future solicitation(s) or policies. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted. No proprietary, classified, confidential or sensitive information should be included in your response. The Government reserves the right to use any non-proprietary technical information in any resultant solicitation(s). The contents of all submissions will be made available to the public upon request. Submitted E:\FR\FM\17JNN1.SGM 17JNN1

Agencies

[Federal Register Volume 84, Number 116 (Monday, June 17, 2019)]
[Notices]
[Pages 28054-28056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12768]


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FEDERAL TRADE COMMISSION

[File No. 172 3051]


DealerBuilt/LightYear Dealer Technologies; Analysis To Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

-----------------------------------------------------------------------

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 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 July 17, 2019.

ADDRESSES: Interested parties may file comments online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write: ``DealerBuilt/LightYear 
Dealer Technologies; File No. 172 3051'' on your comment, and file your 
comment online at https://www.regulations.gov by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, 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: Jamie Hine (202-326-2188), Bureau of 
Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 
NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for June 12, 2019), on the World Wide Web, at 
https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before July 17, 2019. 
Write ``DealerBuilt/LightYear Dealer Technologies; File No. 172 3051'' 
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 https://www.regulations.gov website.
    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 through the https://www.regulations.gov website.
    If you prefer to file your comment on paper, write ``DealerBuilt/
LightYear Dealer Technologies; File No. 172 3051'' 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.

[[Page 28055]]

    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure that your comment does not include any sensitive or 
confidential information. In particular, your comment should not 
include any sensitive personal information, such as your or anyone 
else's Social Security number; date of birth; driver's license number 
or other state identification number, or foreign country equivalent; 
passport number; financial account number; or credit or debit card 
number. You are also solely responsible for making sure that your 
comment does not include any sensitive health information, such as 
medical records or other individually identifiable health information. 
In addition, your comment should not include any ``trade secret or any 
commercial or financial information which . . . is privileged or 
confidential''--as provided by Section 6(f) of the FTC Act, 15 U.S.C. 
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)--including in 
particular competitively sensitive information such as costs, sales 
statistics, inventories, formulas, patterns, devices, manufacturing 
processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the public FTC website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC website, 
unless you submit a confidentiality request that meets the requirements 
for such treatment under FTC Rule 4.9(c), and the General Counsel 
grants that request.
    Visit the FTC website at http://www.ftc.gov to read this Notice and 
the news release describing it. The FTC Act and other laws that the 
Commission administers permit the collection of public comments to 
consider and use in this proceeding, as appropriate. The Commission 
will consider all timely and responsive public comments that it 
receives on or before July 17, 2019. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an agreement containing a consent order from 
LightYear Dealer Technologies, LLC, also doing business as DealerBuilt 
(``Respondent'').
    The proposed consent order (``proposed 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.
    This matter involves DealerBuilt (``DealerBuilt''), a technology 
company that develops and sells dealer management system software and 
data processing services to automotive dealerships nationwide. 
Respondent has stored personal information about more than 14 million 
consumers.
    The Commission's proposed two-count complaint alleges that 
Respondent has violated Section 5(a) of the Federal Trade Commission 
Act and the Standards for Safeguarding Customer Information Rule 
(``Safeguards Rule''), issued pursuant to Title I of the Gramm-Leach-
Bliley Act (``GLB'').
    First, the proposed complaint alleges that Respondent has engaged 
in a number of unreasonable security practices that led to a hacker's 
unauthorized access of personal information belonging to about 12.5 
million consumers. During that breach, the hacker also downloaded the 
personal information of approximately 70,000 consumers, which was 
contained in the back-up directories of five DealerBuilt customers. The 
proposed complaint alleges that Respondent:
     Failed to develop, implement, or maintain a written 
organizational information security policy;
     failed to implement reasonable guidance or training for 
employees or third-party contractors, regarding data security and 
safeguarding consumers' personal information;
     failed to assess the risks to the personal information 
stored on its network, such as by conducting periodic risk assessments 
or performing vulnerability and penetration testing of the network;
     failed to use readily available security measures to 
monitor its systems and assets at discrete intervals to identify data 
security events (e.g., unauthorized attempts to exfiltrate consumers' 
personal information across the company's network) and verify the 
effectiveness of protective measures;
     failed to impose reasonable data access controls, such as 
restricting inbound connections to known IP addresses, and requiring 
authentication to access backup databases;
     stored consumers' personal information on Respondent's 
computer network in clear text; and
     failed to have a reasonable process to select, install, 
secure, and inventory devices with access to personal information.
    The proposed complaint alleges that Respondent could have addressed 
each of the failures described above by implementing readily available 
and relatively low-cost security measures.
    The proposed complaint alleges that Respondent's failures caused or 
are likely to cause substantial injury to consumers that is not 
outweighed by countervailing benefits to consumers or competition and 
is not reasonably avoidable by consumers themselves. Such practices 
constitute an unfair act or practice under Section 5 of the FTC Act.
    Second, the proposed complaint alleges that Respondent violated the 
Safeguards Rule, which requires financial institutions to protect the 
security, confidentiality, and integrity of customer information by 
developing, implementing, and maintaining a comprehensive information 
security program that is written in one or more readily accessible 
parts, and that contains administrative, technical, and physical 
safeguards that are appropriate to the financial institution's size and 
complexity, the nature and scope of its activities, and the sensitivity 
of the customer information at issue. The proposed complaint alleges 
that Respondent:
     Failed to develop, implement, and maintain a written 
information security program;
     failed to identify reasonably foreseeable internal and 
external risks to the security, confidentiality, and integrity of 
customer information and failed to assess the sufficiency of any 
safeguards in place to control those risks; and
     failed to design and implement basic safeguards and to 
regularly test or otherwise monitor the effectiveness of such 
safeguards' key controls, systems, and procedures.

[[Page 28056]]

    The proposed order contains injunctive provisions addressing the 
alleged unfair conduct in connection with Respondent's sale of dealer 
management system software and services. Part I of the proposed order 
prohibits Respondent, and any business that Respondent controls 
directly, or indirectly, from transferring, selling, sharing, 
collecting, maintaining, or storing personal information unless it 
establishes and implements, and thereafter maintains, a comprehensive 
information security program that protects the security, 
confidentiality, and integrity of such personal information.
    Part II of the proposed order requires Respondent to obtain initial 
and biennial data security assessments for twenty years.
    Part III of the agreement requires Respondent to disclose all 
material facts to the assessor and prohibits Respondent from 
misrepresenting any fact material to the assessments required by Part 
II.
    Part IV requires Respondent to submit an annual certification from 
a senior corporate manager (or senior officer responsible for its 
information security program) that Respondent has implemented the 
requirements of the Order, is not aware of any material noncompliance 
that has not been corrected or disclosed to the Commission, and 
includes a brief description of any covered incident involving 
unauthorized access to or acquisition of personal information.
    Part V requires Respondent to submit a report to the Commission of 
its discovery of any covered incident.
    Part VI is a prohibition against violating GLB.
    Parts VII through X of the proposed order are reporting and 
compliance provisions, which include recordkeeping requirements and 
provisions requiring Respondent to provide information or documents 
necessary for the Commission to monitor compliance. Part XI states that 
the proposed order will remain in effect for 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 complaint or proposed order, or to modify in any 
way the proposed order's terms.

    By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2019-12768 Filed 6-14-19; 8:45 am]
 BILLING CODE 6750-01-P