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Federal Register / Vol. 70, No.

53 / Monday, March 21, 2005 / Notices 13501

such connections, the operator shall address: Federal Trade Commission/ first page of the document must be
notify such subscribers of all broadcast Office of the Secretary, Room H–159, clearly labeled ‘‘Confidential.’’1 The
stations carried on the cable system 600 Pennsylvania Avenue, NW., FTC is requesting that any comment
which cannot be viewed via cable Washington, DC 20580. Comments filed in paper form be sent by courier or
without a converter box and shall offer containing confidential material must be overnight service, if possible, because
to sell or lease such a converter box to filed in paper form, as explained in the U.S. postal mail in the Washington area
such subscribers. The notice, which SUPPLEMENTARY INFORMATION section. and at the Commission is subject to
may be included in routine billing The FTC is requesting that any comment delay due to heightened security
statements, shall identify the signals filed in paper form be sent by courier or precautions. Comments filed in
that are unavailable without an overnight service, if possible, because electronic form should be sent to the
additional connection, the manner for U.S. postal mail in the Washington area following e-mail box:
obtaining such additional connection, and at the Commission is subject to consentagreement@ftc.gov.
and instructions for installation. These delay due to heightened security The FTC Act and other laws the
notification and recordkeeping precautions. Comments filed in Commission administers permit the
requirements ensure that subscribers are electronic form (except comments collection of public comments to
aware of which channels cannot be containing any confidential material) consider and use in this proceeding as
viewed without converter boxes and should be sent to the following e-mail appropriate. All timely and responsive
which channels are defined as must- box: consentagreement@ftc.gov. public comments, whether filed in
carry. The records kept by cable FOR FURTHER INFORMATION CONTACT: paper or electronic form, will be
television systems are reviewed by Kerry O’Brien, Linda Badger, or considered by the Commission, and will
Commission staff during field Matthew Gold, FTC Western Regional be available to the public on the FTC
inspections and by local public officials Office, 901 Market St., Suite 570, San Web site, to the extent practicable, at
to assess the system’s compliance with Francisco, CA 94103. (415) 848–5189. http://www.ftc.gov. As a matter of
applicable rules and regulations. 47 CFR SUPPLEMENTARY INFORMATION: Pursuant discretion, the FTC makes every effort to
76.1614 states that a cable operator shall to Section 6(f) of the Federal Trade remove home contact information for
respond in writing within 30 days to Commission Act, 38 Stat. 721, 15 U.S.C. individuals from the public comments it
any written request by any person for 46(f), and § 2.34 of the Commission’s receives before placing those comments
the identification of the signals carried Rules of Practice, 16 CFR 2.34, notice is on the FTC Web site. More information,
on its system in fulfillment of the must- hereby given that the above-captioned including routine uses permitted by the
carry requirements of section 76.56. consent agreement containing a consent Privacy Act, may be found in the FTC’s
Federal Communications Commission. order to cease and desist, having been privacy policy, at http://www.ftc.gov/
filed with and accepted, subject to final ftc/privacy.htm.
Marlene H. Dortch,
Secretary.
approval, by the Commission, has been Analysis of Proposed Consent Order To
placed on the public record for a period Aid Public Comment
[FR Doc. 05–5503 Filed 3–18–05; 8:45 am]
of thirty (30) days. The following
BILLING CODE 6712–01–P
Analysis to Aid Public Comment The Federal Trade Commission has
describes the terms of the consent accepted an agreement to a proposed
agreement, and the allegations in the consent order with CompUSA Inc.
FEDERAL TRADE COMMISSION complaint. An electronic copy of the (‘‘CompUSA’’). CompUSA is a major
full text of the consent agreement retailer of personal computers,
[File No. 022 3278]
package can be obtained from the FTC computer-related hardware and software
CompUSA Inc.; Analysis To Aid Public Home Page (for March 11, 2005), on the products, and other consumer
Comment World Wide Web, at http://www.ftc.gov/ electronics products. CompUSA
os/2005/03/index.htm. A paper copy advertises, labels, offers for sale, sells,
AGENCY: Federal Trade Commission. and distributes all of these products to
can be obtained from the FTC Public
ACTION: Proposed consent agreement. Reference Room, Room 130–H, 600 the public. The Commission has
Pennsylvania Avenue, NW., separately accepted an agreement with
SUMMARY: The consent agreement in this the principals of Q.P.S., Inc. (‘‘QPS’’),
matter settles alleged violations of Washington, DC 20580, either in person
or by calling (202) 326–2222. which manufactured computer
federal law prohibiting unfair or peripheral products sold by CompUSA.
Public comments are invited, and may
deceptive acts or practices or unfair The proposed consent order has been
be filed with the Commission in either
methods of competition. The attached placed on the public record for thirty
paper or electronic form. Written
Analysis to Aid Public Comment (30) days for reception of comments by
comments must be submitted on or
describes both the allegations in the interested persons. Comments received
before April 11, 2005. Comments should
draft complaint that accompanies the during this period will become part of
refer to ‘‘CompUSA Inc., File No. 022
consent agreement and the terms of the the public record. After thirty (30) days,
3278,’’ to facilitate the organization of
consent order—embodied in the consent the Commission will again review the
comments. A comment filed in paper
agreement—that would settle these agreement and the comments received
form should include this reference both
allegations. and will decide whether it should
in the text and on the envelope, and
DATES: Comments must be received on should be mailed or delivered to the
or before April 11, 2005. following address: Federal Trade 1 Commission Rule 4.2(d), 16 CFR 4.2(d). The

comment must be accomplished by an explicit


ADDRESSES: Comments should refer to Commission/Office of the Secretary, request for confidential treatment, including the
‘‘CompUSA Inc., File No. 022 3278,’’ to Room H–159, 600 Pennsylvania factual and legal basis for the request, and must
facilitate the organization of comments. Avenue, NW., Washington, DC 20580. If identify the specific portions of the comment to be
A comment filed in paper form should the comment contains any material for withheld from the public record. The request will
be granted or denied by the Commission’s General
include this reference both in the text which confidential treatment is Counsel, consistent with applicable law and the
and on the envelope, and should be requested, it must be filed in paper public interest. See Commission Rule 4.9(c), 16 CFR
mailed or delivered to the following (rather than electronic) form, and the 4.9(c).

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13502 Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices

withdraw from the agreement or make the rebates to consumers without By direction of the Commission.
final the agreement’s proposed order. consumers agreeing to this extension of Donald S. Clark,
This matter concerns cash rebate time. According to the complaint, this Secretary.
offers that CompUSA advertised to constituted an unfair business practice. [FR Doc. 05–5512 Filed 3–18–05; 8:45 am]
consumers. Among the products that
The proposed order contains BILLING CODE 6750–01–P
CompUSA marketed were QPS
provisions designed to prevent
computer peripheral products, as well
CompUSA from engaging in similar acts
as CompUSA-labeled computer FEDERAL TRADE COMMISSION
and practices in the future. Part I
peripheral products. In marketing these
applies to CompUSA Rebates, which are [File No. 022 3278]
and other products, CompUSA
advertised mail-in rebates, which it has rebates that are designed and intended
to be funded by CompUSA. Specifically, Priti Sharma and Rajeev Sharma,
funded and which third-party Individually and as Officers of Q.P.S.,
manufacturers, such as QPS, have Part I.A. prohibits the company from
representing the time in which it will Inc.; Analysis To Aid Public Comment
funded.
The complaint alleges that CompUSA mail any CompUSA Rebate, unless it AGENCY: Federal Trade Commission.
engaged in deceptive and unfair possesses competent and reliable ACTION: Proposed consent agreement.
practices relating to both the QPS- evidence substantiating the claim. Part
funded rebates and the CompUSA- I.B. prohibits CompUSA from failing to SUMMARY: The consent agreement in this
funded rebates. First, the complaint provide any CompUSA rebate within matter settles alleged violations of
alleges that CompUSA falsely the time specified, or if no time is federal law prohibiting unfair or
represented that QPS-funded rebate specified, within thirty days. Part I.C. deceptive acts or practices or unfair
checks would be mailed to purchasers requires that the company not methods of competition. The attached
of advertised QPS products within six to ‘‘misrepresent, in any manner, expressly Analysis to Aid Public Comment
eight weeks, or within a reasonable or by implication, any material terms of describes both the allegations in the
period of time. Although these rebates any CompUSA Rebate program.’’ draft complaint that accompanies the
were designed and intended to be Part II of the proposed order relates to consent agreement and the terms of the
funded by QPS, CompUSA was CompUSA’s advertising of Manufacturer consent order—embodied in the consent
involved in their creation, and Rebates, which are rebates that are agreement—that would settle these
disseminated advertisements and rebate designed and intended to be funded by allegations.
forms for these rebates. From September a manufacturer or third party other than DATES: Comments must be received on
2001 until December 2001, many CompUSA. This provision prohibits the or before April 11, 2005.
consumers experienced delays ranging company from making any ADDRESSES: Comments should refer to
from one to six months in receiving representation about the availability of ‘‘Priti Sharma and Rajeev Sharma,
their promised rebates, which ranged any Manufacturer Rebate unless (1) it Individually and as Officers of Q.P.S.,
from $15 to $100 in value. From January has an established record with the Inc., File No. 022 3278,’’ to facilitate the
2002 through July 2002, many manufacturer demonstrating that the organization of comments. A comment
consumers experienced similar delays,
manufacturer has consistently paid filed in paper form should include this
and thousands of consumers never
rebates in a timely manner; or (2) if it reference both in the text and on the
received their promised rebates from
does not have such an established envelope, and should be mailed or
QPS. Despite knowledge of these
record with the manufacturer, delivered to the following address:
significant problems, CompUSA
CompUSA has conducted a reasonable Federal Trade Commission/Office of the
continually advertised these QPS
financial analysis of the manufacturer Secretary, Room H–159, 600
rebates until shortly before QPS filed for
and that financial analysis demonstrates Pennsylvania Avenue, NW.,
bankruptcy in August 2002.
Second, the complaint alleges that the manufacturer’s ability to timely pay Washington, DC 20580. Comments
CompUSA falsely represented that it the rebates being offered. containing confidential material must be
would deliver CompUSA-funded Part III of the proposed order is a filed in paper form, as explained in the
rebates to purchasers of its computer redress provision which requires Supplementary Information section. The
peripheral products within six to eight CompUSA to pay all valid rebates FTC is requesting that any comment
weeks, or within a a reasonable period requests to consumers who purchased filed in paper form be sent by courier or
of time. Between September 2001 and QPS products at CompUSA and whose overnight service, if possible, because
June 2002, many consumers U.S. postal mail in the Washington area
rebates are due or past due. This
experienced delays ranging from one and at the Commission is subject to
provision also requires CompUSA to
week to more than three months in delay due to heightened security
send a rebate to any eligible QPS
receiving their promised rebates. The precautions. Comments filed in
purchaser who contacts it or the FTC for
rebates at issue ranged from $3 to $100 electronic form (except comments
a period of seventy-five (75) days after
in value. containing any confidential material)
service of the order.
Finally, the complaint alleges that, in should be sent to the following e-mail
the advertising and sale of computer Parts IV through VIII of the proposed box: consentagreement@ftc.gov.
peripheral products, CompUSA offered order are reporting and compliance FOR FURTHER INFORMATION CONTACT:
to deliver rebates within six to eight provisions. Part IX is a provision Kerry O’Brien, Linda Badger, or
weeks if they purchased the advertised ‘‘sunsetting’’ the order after twenty Matthew Gold, FTC Western Regional
computer peripheral products and years, with certain exceptions. Office, 901 Market St., Suite 570, San
submitted valid rebate requests for The purpose of this analysis is to Francisco, CA. 94103. (415) 848–5189.
CompUSA-funded rebate offers. After facilitate public comment on the SUPPLEMENTARY INFORMATION: Pursuant
receiving rebate requests in proposed order, and it is not intended to Section 6(f) of the Federal Trade
conformance with these offers, to constitute an official interpretation of Commission Act, 38 Stat. 721, 15 U.S.C.
CompUSA unilaterally extended the the agreement and proposed order or to 46(f), and § 2.34 of the Commission’s
time period in which it would deliver modify in any way their terms. Rules of Practice, 16 CFR 2.34, notice is

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