The National Research Center for College and University Admissions, Inc., and Don M. Munce; and American Student List, LLC; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 022 3005]

The National Research Center for College and University

Admissions, Inc., and Don M. Munce; and American Student List, LLC;

Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreements.

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SUMMARY: The consent agreements in the two matters settle alleged

violations of federal law prohibiting unfair or deceptive acts or

practices or unfair methods of competition. The attached Analysis to

Aid Public Comment describes both the allegations in the draft

complaint that accompanies both consent agreements and the terms of the

consent orders--embodied in the consent agreements--that would settle

these allegations.

DATES: Comments must be received on or before October 31, 2002.

ADDRESSES: Comments filed in paper form should be directed to: FTC/

Office of the Secretary, Room 159-H, 600 Pennsylvania Avenue, NW.,

Washington, DC 20580. Comments filed in electronic form should be

directed to: [email protected], as prescribed below.

FOR FURTHER INFORMATION CONTACT: Jessica Rich or Laura Mazzarella, FTC,

Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW.,

Washington, DC 20580, (202) 326-2148.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and section 2.34

of the Commission's Rules of Practice, 16 CFR 2.34, notice is hereby

given that the above-captioned consent agreements containing consent

orders to cease and desist, having have been field with the accepted,

subject to final approval, by the Commission, have 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 agreements,

and the allegations in the complaint. An electronic copy of the full

text of the consent agreements packages can be obtained from the FTC

Home Page (for October 2, 2002), on the World Wide Web, at ``http://

www.ftc.gov/os/2002/10index.htm.'' A paper copy can be obtained from

the FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue,

NW., Washington, DC 20580, either in person or by calling (202) 326-

2222.

Public comments are invited, and may be filed with the Commission

in either paper or electronic form. Comments filed in paper form should

be directed to: FTC/Office of the Secretary, Room 158-H, 600

Pennsylvania Avenue, NW., Washington, DC 20580. If a comment contains

nonpublic information, it must be filed in paper form, and the first

page of the document must be clearly labeled ``confidential.'' Comments

that do not contain any nonpublic information may instead be filed in

electronic form (in ASCII format, WordPerfect, or Microsoft Word) as

part of our as an attachment to email messages directed to the

following email box: [email protected]. Such

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comments will be considered by the Commission and will be available for

inspection and copying at its principal office in accordance with

section 4.9(b)(6)(ii) of the Commission's Rules of Practice, 16 CFR

4.9(b)(6)(ii)).

Analysis of Proposed Consent Orders To Aid Public Comment

The Federal Trade Commission has accepted agreements, subject to

final approval, to (1) a proposed consent order from the National

Research Center for College and University Admissions, Inc.

(``NRCCUA'') and its officer Don M. Munce (``Munce''), and (2) a

proposed consent order from American Student List, LLC (``ASL''). The

proposed orders are substantively identical. NRCCUA is a student survey

company that supplies student data to colleges and universities and

other entities for recruitment and marketing purposes. ASL is a

commercial list broker that supplies names for youth marketing

campaigns.

The proposed consent orders have 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

agreements and the comments received and will decide whether it should

withdraw from the agreements and take other appropriate action or make

final the agreements' proposed orders.

This matter concerns representations made about how detailed,

personal information collected from high school students through a

survey would be used, and how the survey is funded. The proposed

respondents distribute a survey to high school teachers and guidance

counselors with the request that they have their students complete the

survey. The survey collects from students personal information

including name, address, age, race, religious affiliation, and

academic, career, and athletic interests. NRCCUA and Munce then Market

personal information collected through the survey primarily to colleges

and universities, which use the information to target high school

students for recruitment purposes. NRCCUA also provides survey

information to ASL. ASL uses survey information to create lists of

college-bound students that it sells to commercial entities for use in

marketing. Such entities include, but are not limited to, consumer

products manufacturers, credit card companies, direct marketers, list

brokers, database marketing companies, and advertising agencies.

The Commission's complaint charges that the proposed respondents

falsely represented that information collection from high school

students through the survey is shared only with colleges, universities,

and other entities providing education-related services when, in fact,

such information is also shared with commercial entities for marketing

purposes. The complaint also alleges that the proposed respondents

falsely represented that the survey is funded solely by educational

institutions when, in fact, the survey also receives substantial

funding from ASL, a commercial entity.

Part I of the consent orders prohibits the proposed respondents, in

connection with the collection of personally identifiable information

from an individual, from misrepresenting (1) how such information is

collected or will be used or disclosed, or (2) how the collection of

such information is funded. Part II of the orders prohibits the

proposed respondents, in connection with the collection of personally

identifiable information from students for any ``noneducational-related

marketing purpose,'' from using or disclosing such information unless

they disclose (1) the existence and nature of such noneducational-

related marketing purpose, and (2) the types or categories of any

entities to which the information will be disclosed.

The proposed orders define ``noneducational-related marketing

purpose'' to mean for the purpose of marketing products or services, or

selling personally identifiable information from or about an individual

for use in marketing products or services to individuals. The

definition specifically excludes the use of personal information in

connection with certain activities determined to be ``educational

products or services'' under the recently enacted No Child Left Behind

Act, namely (a) college or postsecondary education recruitment, or

military recruitment; (b) book clubs, magazines, and programs providing

access to low-cost literary products; (c) curriculum and instructional

materials used by elementary schools and secondary schools; (d) student

recognition programs; or (e) any other activity expressly determined

under the No Child Left Behind Act or its implementing regulations to

be an ``educational product or service.'' In addition, the proposed

orders provide that when determining whether any specific activity is

an ``educational product or service,'' any official, written, publicly-

disseminated interpretation by the Department of Education regarding

such activity shall be controlling.

Part III of the orders prohibits the proposed respondents from

using or disclosing for any noneducational-related marketing purpose

any personally identifiable information that was collected through

surveys distributed prior to the date of service of the orders. In

addition to the educational purposes excepted from the definition of

``noneducational-related marketing purpose,'' Part III also permits the

proposed respondents to use such information for the purpose of (a) job

recruitment, (b) the provision of student loans, or (c) the provision

of standardized test preparation services.

The remainder of the proposed orders contains standard requirements

that the proposed respondents maintain copies of privacy statements and

other documents relating to the collection, use or disclosure of

personally identifiable information; distribute copies of the orders to

certain company officials and employees; notify the Commission of any

change in the corporation that may affect compliance obligations under

the order, and file one or more reports detailing their compliance with

the orders. Part VIII of the proposed orders is a provision whereby the

orders, absent certain circumstances, terminate twenty years from the

date of issuance.

The purpose of this analysis is to facilitate public comment on the

proposed orders, and is not intended to constitute an official

interpretation of the agreements and proposed orders or to modify in

any way their terms.

These proposed orders, if issued in final form, will resolve the

claims alleged in the complaint against the named respondents. It is

not the Commission's intent that acceptance of these consent agreements

and issuance of final decisions and orders will release any claims

against any unnamed persons or entities associated with the conduct

described in the complaint.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 02-25757 Filed 10-9-02; 8:45 am]

BILLING CODE 6750-01-M