[Federal Register Volume 64, Number 108 (Monday, June 7, 1999)]
[Notices]
[Pages 30328-30329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14247]
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FEDERAL TRADE COMMISSION
[File No. 9823525]
Federated Department Stores, Inc.; Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint that accompanies the consent agreement 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 August 6, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159,600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT: Randall Brook, Seattle Regional
Office, Federal Trade Commission, 915 Second Avenue, Suite 2896,
Seattle, Wa. 98174, (206) (220-4487.
SUPPLEMENTARY INFORMATION: Purusant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 2.34 of
the Commission's Rules of Practice, 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 sixty (60) days. The following Analysis to Aid Public
Comments 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 May 28th, 1999), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, 600 Pennsylvania Avenue, N.W., Washington,
D.C. 20580, either in person or by calling (202) 326-3627.
Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159,600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. Two paper copies of each comment should be
filed, and should be accompanied, if possible, by a 3\1/2\ inch
diskette containing an electronic copy of the comment. Such comments or
views 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 Order To Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Federated Department Stores, Inc.
(``Federated''). Proposed respondent Federated conducts relevant
business through, among other affiliates or subsidiaries, FDS National
Bank, The Bon, Inc., Bloomingdales, Inc., Burdines, Inc., Rich's
Department Stores, Inc., Macy's East, Inc., Macy's West, Inc., and
Stern's Department Stores, Inc.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
The Commission's complaint alleges several unfair or deceptive acts
or practices related to Federated's policy of inducing consumers who
have filed for bankruptcy protection to sign agreements reaffirming
debts owed to Federated prior to the filing of the bankruptcy petition.
The complaint charges that Federated: falsely represented to consumers
that signed reaffirmation agreements would be filed with the bankruptcy
courts, as required by the United States Bankruptcy Code; falsely
represented to consumers that debts associated with unfiled
reaffirmation agreements, or agreements that were filed but not
approved by the bankruptcy courts, were legally binding on the
consumers; and unfairly collected debts that it was not permitted by
law to collect.
The proposed consent order contains provisions designed to remedy
the violations charged and to prevent Federated from engaging in
similar acts in the future. The proposed consent order preserves the
Commission's right
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to seek consumer redress if the Commission determines that redress to
consumers provided through related legal actions by state attorneys
general and private parties is not adequate.
Part I of the proposed order prohibits Federated from
misrepresenting to consumers who have filed petitions for bankruptcy
protection under the United States Bankruptcy Code that (A)
reaffirmation agreements will be filed in bankruptcy court; or (B) any
reaffirmation agreement is legally binding on the consumer. Part I.C of
the proposed order prohibits Federated from collecting any debt
(including any interest, fee, charge, or expense incidental to the
principal obligation) that has been legally discharged in bankruptcy
proceedings and that Federated is not permitted by law to collect. Part
II of the proposed order prohibits Federated from making any
misrepresentation in the collection of any debt subject to a pending
bankruptcy proceeding.
Part III of the proposed order contains record keeping requirements
for materials that demonstrate the compliance of Federated with the
proposed order. Part IV requires distribution of a copy of the consent
decree to certain current and future personnel who have
responsibilities related to collecting debts subject to bankruptcy
proceedings.
Part V provides for notification to the Commission of any change in
the respondent affecting compliance obligations arising under the
order. Part VI requires the filing of compliance report(s). Finally,
Part VII provides for the termination of the order after twenty years
under certain circumstances.
The purpose of this analysis is to facilitate public comment on the
proposed order, and it is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-14247 Filed 6-4-99; 8:45 am]
BILLING CODE 6750-01-M
