InfoTrax Systems, L.C. and Mark Rawlins; Analysis To Aid Public Comment, 64074-64076 [2019-25109]

Download as PDF 64074 Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Notices of information unless it displays a valid OMB control number. Your comment—including your name and your state—will be placed on the public record of this proceeding. 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 provided in Section 6(f) of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16CFR 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. Heather Hippsley, Deputy General Counsel. [FR Doc. 2019–25110 Filed 11–19–19; 8:45 am] BILLING CODE 6750–01–P FEDERAL TRADE COMMISSION [File No. 162 3130] InfoTrax Systems, L.C. and Mark Rawlins; Analysis To Aid Public Comment Federal Trade Commission. Proposed consent agreement; Request for comment. AGENCY: ACTION: 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 December 20, 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: ‘‘InfoTrax Systems, L.C. and Mark Rawlins; File No. 162 3130’’ SUMMARY: VerDate Sep<11>2014 17:21 Nov 19, 2019 Jkt 250001 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: Andrea Arias (202–326–2715), 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 November 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 December 20, 2019. Write ‘‘InfoTrax Systems, L.C. and Mark Rawlins; File No. 162 3130’’ 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 ‘‘InfoTrax Systems, L.C. and Mark Rawlins; File No. 162 3130’’ 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– PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 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. 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 E:\FR\FM\20NON1.SGM 20NON1 Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Notices 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 December 20, 2019. For information on the Commission’s privacy policy, including routine uses permitted by the Privacy Act, see https://www.ftc.gov/siteinformation/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 InfoTrax Systems, L.C. (‘‘InfoTrax’’) and Mark Rawlins (collectively ‘‘Respondents’’). The proposed consent order (‘‘proposed order’’) has been placed on the public record for thirty (30) days for receipt of comments from 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 InfoTrax, a technology company that provides backend operations systems and online distributor tools for the direct sales industry. Respondents have stored personal information about more than eleven million consumers. The Commission’s proposed complaint alleges that Respondents violated Section 5(a) of the Federal Trade Commission Act (‘‘FTC Act’’). The proposed complaint alleges that Respondents engaged in a number of unreasonable security practices and that, as a result of these practices, an intruder, or intruders, were able to gain unauthorized access to consumers’ personal information in March 2016. During multiple breaches, intruder(s) accessed and/or downloaded the personal information of over one million consumers. The types of information exposed included full names; physical addresses; email addresses; telephone numbers; Social Security Numbers (‘‘SSNs’’) or other government identification numbers; clients’ distributors’ user IDs and passwords; admin IDs and passwords; payment card information including credit or debit card numbers, Card Verification Values (‘‘CVVs’’) and expiration dates; and bank account information including bank account and VerDate Sep<11>2014 17:21 Nov 19, 2019 Jkt 250001 routing numbers. (However, a particular individual’s record does not necessarily contain every one of these data types.) The proposed complaint alleges that Respondents: • Failed to have a systematic process for inventorying and deleting consumers’ personal information stored on InfoTrax’s network that is no longer necessary; • Failed to adequately assess the cybersecurity risk posed to consumers’ personal information stored on InfoTrax’s network by performing adequate code review of InfoTrax’s software, and penetration testing of InfoTrax’s network and software; • Failed to detect malicious file uploads by implementing protections such as adequate input validation; • Failed to adequately limit the locations to which third parties could upload unknown files on InfoTrax’s network; • Failed to adequately segment InfoTrax’s network to ensure that one client’s distributors could not access another client’s data on the network; • Failed to implement safeguards to detect anomalous activity and/or cybersecurity events. For example, Respondents failed to: (1) Implement an intrusion prevention or detection system to alert Respondents of potentially unauthorized queries and/or access to InfoTrax’s network; (2) use file integrity monitoring tools to determine whether any files on InfoTrax’s network had been altered; and (3) use data loss prevention tools to regularly monitor for unauthorized attempts to exfiltrate consumers’ personal information outside InfoTrax’s network boundaries; and • Stored consumers’ personal information, including consumers’ SSNs, payment card information (including full or partial credit card and debit card numbers, CVVs, and expiration dates), bank account information (including account and routing numbers), and authentication credentials such as user IDs and passwords, in clear, readable text on InfoTrax’s network. The proposed complaint alleges that Respondents could have addressed each of the failures described above by implementing readily available and relatively low-cost security measures. The proposed complaint alleges that Respondents’ failure to employ reasonable data security practices to protect personal information—including names, addresses, SSNs, other government identifiers, and financial account information—caused or is likely to cause substantial injury to consumers that is not outweighed by countervailing PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 64075 benefits to consumers or competition and is not reasonably avoidable by consumers themselves. Respondents’ failure to employ reasonable data security practices constitutes an unfair act or practice under Section 5 of the FTC Act. The proposed order contains injunctive provisions addressing the alleged unfair conduct. Part I of the proposed order prohibits each Covered Business from transferring, selling, sharing, collecting, maintaining, or storing personal information unless each Covered Business establishes and implements, and thereafter maintains, a comprehensive information security program that protects the security, confidentiality, and integrity of such personal information.1 Part II of the proposed order requires Respondents to obtain initial and biennial data security assessments for twenty (20) years. Part III of the proposed order requires Respondents to disclose all material facts to the assessor; prohibits Respondents from misrepresenting any fact material to the assessments required by Part II; and requires Respondents to provide or otherwise make available to the assessor all information and material that is relevant to the assessment for which there is no reasonable claim of privilege. Part IV requires Respondents to submit an annual certification from a senior corporate manager (or senior officer of each Covered Business responsible for each Covered Business’s information security program) that: (1) Each Covered Business has implemented the requirements of the Order; (2) each Covered Business is not aware of any material noncompliance that has not been corrected or disclosed to the Commission; and (3) includes a brief description of any covered incident involving unauthorized access to or acquisition of personal information. Part V requires Respondents to submit a report to the Commission of the discovery of any covered incident. Parts VI through IX of the proposed order are reporting and compliance provisions, which include recordkeeping requirements and provisions requiring Respondents to provide information or documents necessary for the Commission to 1 ‘‘Covered Business’’ includes InfoTrax; any business that InfoTrax controls, directly or indirectly; and any business that Mr. Rawlins controls, directly or indirectly, except for the businesses that own, lease, and/or operate a campground in Bunkerville, Nevada, and solely to the extent that the businesses are engaged in the operation of that campground. E:\FR\FM\20NON1.SGM 20NON1 64076 Federal Register / Vol. 84, No. 224 / Wednesday, November 20, 2019 / Notices monitor compliance. Part X states that the proposed order will remain in effect for 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 complaint or proposed order, or to modify in any way the proposed order’s terms. By direction of the Commission. Joel Christie, Acting Secretary. [FR Doc. 2019–25109 Filed 11–19–19; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention [60Day–20–20BY; Docket No. CDC–2019– 0104] Proposed Data Collection Submitted for Public Comment and Recommendations Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS) ACTION: Notice with comment period. AGENCY: The Centers for Disease Control and Prevention (CDC), as part of its continuing effort to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies the opportunity to comment on a proposed and/or continuing information collection, as required by the Paperwork Reduction Act of 1995. This notice invites comment on a proposed information collection project titled Pilot Project: Work Organization Risks to Short-haul Truck Drivers’ Health & Safety. This study is designed to assess how local/short haul drivers perceive their work environments, and how that relates to their well-being. DATES: CDC must receive written comments on or before January 21, 2020. ADDRESSES: You may submit comments, identified by Docket No. CDC–2019– 0104 by any of the following methods: • Federal eRulemaking Portal: Regulations.gov. Follow the instructions for submitting comments. • Mail: Jeffrey M. Zirger, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS–D74, Atlanta, Georgia 30329. Instructions: All submissions received must include the agency name and SUMMARY: VerDate Sep<11>2014 17:21 Nov 19, 2019 Jkt 250001 Docket Number. CDC will post, without change, all relevant comments to Regulations.gov. Please note: Submit all comments through the Federal eRulemaking portal (regulations.gov) or by U.S. mail to the address listed above. FOR FURTHER INFORMATION: To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact Jeffrey M. Zirger, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS– D74, Atlanta, Georgia 30329; phone: 404–639–7570; Email: omb@cdc.gov. SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501–3520), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires Federal agencies to provide a 60-day notice in the Federal Register concerning each proposed collection of information, including each new proposed collection, each proposed extension of existing collection of information, and each reinstatement of previously approved information collection before submitting the collection to the OMB for approval. To comply with this requirement, we are publishing this notice of a proposed data collection as described below. The OMB is particularly interested in comments that will help: 1. Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; 2. Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; 3. Enhance the quality, utility, and clarity of the information to be collected; and 4. Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submissions of responses. 5. Assess information collection costs. Proposed Project Pilot Project: Work Organization Risks to Short-haul Truck Drivers’ Health & Safety—New—National Institute for PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 Occupational Safety and Health (NIOSH), Centers for Disease Control and Prevention (CDC). Background and Brief Description Commercial truck drivers face widely acknowledged safety risks on the job and are at an increased risk for heart disease, diabetes, hypertension, and obesity. Long and irregular work hours, lack of breaks, inadequate sleep, and little access to exercise facilities and healthy eating options contribute to drivers’ health and safety problems. Additionally, health complications of obesity (e.g., sleep apnea, type II diabetes) place truckers at even greater risk of roadway crashes. Much of what we know about work and health is based on knowledge gleaned from research on long-haul commercial drivers. Local short haul drivers are those who generally return home each night after work, and who travel no more than 150 miles from the employer’s terminal each day (whereas long-haul drivers are away from home for long periods of time and drive much greater distances daily). This research addresses a gap in knowledge and responds to stakeholders’ requests for research that examines work organization in local short-haul commercial driving. The purpose of this data collection is to learn more about the local short-haul trucking industry and how the complex interplay between job design and individual health behaviors affects the safety, health, and well-being of commercial drivers. NIOSH is requesting a 12-month OMB approval. A survey will be used to collect crosssectional data from 300 local short-haul commercial drivers. Drivers will answer questions about work design, organizational policies, occupational stressors, physical health, safety, and mental well-being. The data collected will be used to characterize work organization in local short-haul commercial driving, and analyzed to examine the association between work design and driver physical health, mental health, well-being, and safety. Stakeholders in trucking associations have agreed to promote participation in the study amongst their member organizations. A sample of 300 drivers will be recruited from across several commercial driving companies over a six-month time period. This is a crosssectional survey. Drivers will complete the survey only one time. It is estimated that the survey will take about 30 minutes to complete. All responses are anonymous, and no personally identifiable information will be collected. There are no costs to E:\FR\FM\20NON1.SGM 20NON1

Agencies

[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
[Notices]
[Pages 64074-64076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25109]


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FEDERAL TRADE COMMISSION

[File No. 162 3130]


InfoTrax Systems, L.C. and Mark Rawlins; 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 December 20, 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: ``InfoTrax Systems, 
L.C. and Mark Rawlins; File No. 162 3130'' 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: Andrea Arias (202-326-2715), 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 November 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 December 20, 
2019. Write ``InfoTrax Systems, L.C. and Mark Rawlins; File No. 162 
3130'' 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 ``InfoTrax 
Systems, L.C. and Mark Rawlins; File No. 162 3130'' 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.
    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

[[Page 64075]]

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 December 20, 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 
InfoTrax Systems, L.C. (``InfoTrax'') and Mark Rawlins (collectively 
``Respondents'').
    The proposed consent order (``proposed order'') has been placed on 
the public record for thirty (30) days for receipt of comments from 
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 InfoTrax, a technology company that provides 
backend operations systems and online distributor tools for the direct 
sales industry. Respondents have stored personal information about more 
than eleven million consumers.
    The Commission's proposed complaint alleges that Respondents 
violated Section 5(a) of the Federal Trade Commission Act (``FTC 
Act''). The proposed complaint alleges that Respondents engaged in a 
number of unreasonable security practices and that, as a result of 
these practices, an intruder, or intruders, were able to gain 
unauthorized access to consumers' personal information in March 2016. 
During multiple breaches, intruder(s) accessed and/or downloaded the 
personal information of over one million consumers. The types of 
information exposed included full names; physical addresses; email 
addresses; telephone numbers; Social Security Numbers (``SSNs'') or 
other government identification numbers; clients' distributors' user 
IDs and passwords; admin IDs and passwords; payment card information 
including credit or debit card numbers, Card Verification Values 
(``CVVs'') and expiration dates; and bank account information including 
bank account and routing numbers. (However, a particular individual's 
record does not necessarily contain every one of these data types.)
    The proposed complaint alleges that Respondents:
     Failed to have a systematic process for inventorying and 
deleting consumers' personal information stored on InfoTrax's network 
that is no longer necessary;
     Failed to adequately assess the cybersecurity risk posed 
to consumers' personal information stored on InfoTrax's network by 
performing adequate code review of InfoTrax's software, and penetration 
testing of InfoTrax's network and software;
     Failed to detect malicious file uploads by implementing 
protections such as adequate input validation;
     Failed to adequately limit the locations to which third 
parties could upload unknown files on InfoTrax's network;
     Failed to adequately segment InfoTrax's network to ensure 
that one client's distributors could not access another client's data 
on the network;
     Failed to implement safeguards to detect anomalous 
activity and/or cybersecurity events. For example, Respondents failed 
to: (1) Implement an intrusion prevention or detection system to alert 
Respondents of potentially unauthorized queries and/or access to 
InfoTrax's network; (2) use file integrity monitoring tools to 
determine whether any files on InfoTrax's network had been altered; and 
(3) use data loss prevention tools to regularly monitor for 
unauthorized attempts to exfiltrate consumers' personal information 
outside InfoTrax's network boundaries; and
     Stored consumers' personal information, including 
consumers' SSNs, payment card information (including full or partial 
credit card and debit card numbers, CVVs, and expiration dates), bank 
account information (including account and routing numbers), and 
authentication credentials such as user IDs and passwords, in clear, 
readable text on InfoTrax's network.
    The proposed complaint alleges that Respondents could have 
addressed each of the failures described above by implementing readily 
available and relatively low-cost security measures.
    The proposed complaint alleges that Respondents' failure to employ 
reasonable data security practices to protect personal information--
including names, addresses, SSNs, other government identifiers, and 
financial account information--caused or is 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. Respondents' failure to employ reasonable data 
security practices constitutes an unfair act or practice under Section 
5 of the FTC Act.
    The proposed order contains injunctive provisions addressing the 
alleged unfair conduct. Part I of the proposed order prohibits each 
Covered Business from transferring, selling, sharing, collecting, 
maintaining, or storing personal information unless each Covered 
Business establishes and implements, and thereafter maintains, a 
comprehensive information security program that protects the security, 
confidentiality, and integrity of such personal information.\1\
---------------------------------------------------------------------------

    \1\ ``Covered Business'' includes InfoTrax; any business that 
InfoTrax controls, directly or indirectly; and any business that Mr. 
Rawlins controls, directly or indirectly, except for the businesses 
that own, lease, and/or operate a campground in Bunkerville, Nevada, 
and solely to the extent that the businesses are engaged in the 
operation of that campground.
---------------------------------------------------------------------------

    Part II of the proposed order requires Respondents to obtain 
initial and biennial data security assessments for twenty (20) years.
    Part III of the proposed order requires Respondents to disclose all 
material facts to the assessor; prohibits Respondents from 
misrepresenting any fact material to the assessments required by Part 
II; and requires Respondents to provide or otherwise make available to 
the assessor all information and material that is relevant to the 
assessment for which there is no reasonable claim of privilege.
    Part IV requires Respondents to submit an annual certification from 
a senior corporate manager (or senior officer of each Covered Business 
responsible for each Covered Business's information security program) 
that: (1) Each Covered Business has implemented the requirements of the 
Order; (2) each Covered Business is not aware of any material 
noncompliance that has not been corrected or disclosed to the 
Commission; and (3) includes a brief description of any covered 
incident involving unauthorized access to or acquisition of personal 
information.
    Part V requires Respondents to submit a report to the Commission of 
the discovery of any covered incident.
    Parts VI through IX of the proposed order are reporting and 
compliance provisions, which include recordkeeping requirements and 
provisions requiring Respondents to provide information or documents 
necessary for the Commission to

[[Page 64076]]

monitor compliance. Part X states that the proposed order will remain 
in effect for 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 complaint or proposed order, or to modify in any 
way the proposed order's terms.

    By direction of the Commission.
Joel Christie,
Acting Secretary.
[FR Doc. 2019-25109 Filed 11-19-19; 8:45 am]
 BILLING CODE 6750-01-P