UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the matter of
CERIDIAN CORPORATION, a corporation.
File No. 981-0030
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission ("Commission"), having initiated an
investigation of the acquisition by Comdata Network, Inc., a wholly-owned subsidiary of
Ceridian Corporation ("Ceridian"), of substantially all of the assets of NTS,
Inc. and the acquisition by Comdata Holdings Corporation, a wholly-owned subsidiary of
Ceridian, of Trendar Corporation, and it now appearing that Ceridian, hereinafter
sometimes referred to as "proposed respondent," is willing to enter into an
Agreement Containing an Order to refrain from certain acts, and providing for other
relief:
IT IS HEREBY AGREED by and between proposed respondent, by its duly
authorized officers and attorney, and counsel for the Commission that:
- 1. Proposed respondent Ceridian is a corporation organized, existing and doing business
under and by virtue of the laws of the State of Delaware with its office and principal
place of business located at 8100 34th Avenue South, Minneapolis, Minnesota
55425.
-
- 2. Proposed respondent admits all the jurisdictional facts set forth in the draft of
complaint here attached.
-
- 3. Proposed respondent waives:
a. any further procedural steps;
b. the requirement that the Commission's decision contain a statement of findings of
fact and conclusions of law;
c. all rights to seek judicial review or otherwise to challenge or contest the validity
of the Order entered pursuant to this Agreement; and
d. any claim under the Equal Access to Justice Act.
- 4. Proposed respondent shall submit within thirty (30) days of the date this Agreement
is signed by proposed respondent, an initial report, pursuant to Section 2.33 of the
Commission's Rules, signed by the proposed respondent setting forth in detail the manner
in which the proposed respondent will comply with Paragraphs II. through V. of the Order,
including full text copies of all licenses required by Paragraphs II. and III. of the
Order, a description of the procedures for obtaining such licenses, and the instructions
that have been or will be issued to Ceridian personnel to maintain the non-disclosure
provisions set out in Paragraph IV. of the Order. Such report will not become a part of
the public record unless and until the accompanying Agreement and Order are accepted by
the Commission for public comment.
-
- 5. This Agreement shall not become a part of the public record of the proceeding unless
and until it is accepted by the Commission. If this Agreement is accepted by the
Commission it, together with the draft of complaint contemplated thereby, will be placed
on the public record for a period of sixty (60) days and information in respect thereto
publicly released. The Commission thereafter may either withdraw its acceptance of this
Agreement and so notify the proposed respondent, in which event it will take such action
as it may consider appropriate, or issue and serve its complaint (in such form as the
circumstances may require) and decision, in disposition of the proceeding.
-
- 6. This Agreement is for settlement purposes only and does not constitute an admission
by proposed respondent that the law has been violated as alleged in the draft of complaint
here attached, or that the facts as alleged in the draft complaint, other than
jurisdictional facts, are true.
-
- 7. This Agreement contemplates that, if it is accepted by the Commission, and if such
acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of
§2.34 of the Commission's Rules, the Commission may, without further notice to the
proposed respondent, (1) issue its complaint corresponding in form and substance with the
draft of the complaint here attached and its decision containing the following Order to
refrain from certain acts, and providing for other relief in disposition of the proceeding
and (2) make information public with respect thereto. When so entered, the Order to
refrain from certain acts, and providing for other relief shall have the same force and
effect and may be altered, modified or set aside in the same manner and within the same
time provided by statute for other orders. The Order shall become final upon service.
Delivery by the U.S. Postal Service of the complaint and decision containing the agreed-to
Order to the Vice President and General Counsel of proposed respondent at proposed
respondent's address as stated in this Agreement shall constitute service. Proposed
respondent waives any right it may have to any other manner of service. The complaint may
be used in construing the terms of the Order, and no agreement, understanding,
representation, or interpretation not contained in the Order or the Agreement may be used
to vary or contradict the terms of the Order.
-
- 8. By signing this Agreement Containing Consent Order, proposed respondent represents
that it can accomplish the full relief contemplated by the Order.
-
- 9. Proposed respondent has read the proposed complaint and Order contemplated hereby.
Proposed respondent understands that once the Order has been issued, it will be required
to file one or more compliance reports showing that it has fully complied with the Order.
Proposed respondent agrees to comply with Paragraph VII. of the Order from the date it
signs this Agreement. With respect to all other provisions of the Order, proposed
respondent agrees to comply with each such provision from the date the Order becomes
final. Proposed respondent further understands that it may be liable for civil penalties
in the amount provided by law for each violation of the Order after it becomes final.
ORDER
I.
IT IS ORDERED that, as used in this Order, the following definitions
shall apply (where appropriate, words in the singular include the plural, and words in the
plural include the singular):
- A. "Acquisitions" means the acquisition of substantially all of the assets of
NTS, Inc. by Comdata Network, Inc., a wholly-owned subsidiary of Ceridian, and the
purchase of Trendar Corporation by Comdata Holdings Corporation, a wholly-owned subsidiary
of Ceridian.
-
- B. "Comdata" means Comdata Network, Inc., a Maryland corporation and
wholly-owned subsidiary of Ceridian, with its office and principal place of business
located at 5301 Maryland Way, Brentwood, Tennessee 37027.
-
- C. "Comdata Business" means any division or entity within or controlled by
Respondent that is engaged in, among other things, the development, issuance,
distribution, sale or licensing of the Comdata Cards.
-
- D. "Comdata Cards" means all of Comdata's current and future proprietary,
private label Comchek®, TIC, NTS, EDS or other Fleet Cards, however named, issued by
Comdata, either directly or indirectly through an approved third-party designated by
Comdata, to Trucking Companies or truck drivers who use such cards to effect Transactions
at Fueling Locations approved by Comdata; provided, however, that Comdata
Cards shall not include cards for which Respondent does not have final authority to
determine which POS Systems are permitted to effect diesel fuel purchases or data capture
transactions for those cards. For the purposes of this Order, Comdata Cards shall be
included as one type or kind of Fleet Card, as hereinafter defined.
-
- E. "Comdata Confidential Information" means any information not in the public
domain disclosed by Respondent to a Designated POS System Provider or Fleet Card Issuer,
as applicable, in its capacity as the provider of the Comdata Cards or Trendar Services,
respectively. Comdata Confidential Information shall not include: (1) information that
falls within the public domain through no act, error, or omission by the Designated POS
System Provider or Fleet Card Issuer, as applicable; (2) information that becomes known to
the Designated POS System Provider or Fleet Card Issuer, as applicable, from a third party
not in breach of a confidentiality or non-disclosure agreement with respect to such
information; (3) information already known to the Designated POS System Provider or Fleet
Card Issuer, as applicable, prior to requesting a license pursuant to Paragraph II. or
III., respectively; and (4) information independently developed by the Designated POS
System Provider or Fleet Card Issuer, as applicable, without reference to or use of any
Comdata Confidential Information.
-
- F. "Commission" means the Federal Trade Commission.
-
- G. "Designated POS System Providers" means Incumbent System Providers and New
System Providers.
-
- H. "Fleet Card" means any card issued to cardholders who are authorized to use
such cards to effect data capture Transactions or Transactions funded by the Fleet Card
Issuer.
-
- I. "Fleet Card Issuer" means any Person who (1) issues or seeks to engage in
the business of issuing Fleet Cards to Trucking Companies, truck drivers, or other
cardholders who may use such Fleet Cards to effect Transactions, provided that a Fleet
Card Issuer must have, or seek to have, issued at least one thousand (1,000) Fleet Cards;
or (2) develops a Fleet Card for the purpose of having it issued by third-parties,
provided that the Fleet Card Issuer must have, or seek to have, third-parties issue at
least one thousand (1,000) Fleet Cards.
-
- J. "Fueling Location" means any truck stop, gasoline service station, fueling
service center, Terminal Fueling Facility, cardlock, or unattended fueling site.
-
- K. "Incumbent System Provider" means any Person who is authorized by
Respondent on the date Respondent signs this Order to effect all Transactions using any
one (1) Fleet Card issued by Respondent.
-
- L. "Injunctive Relief" means: (1) a permanent injunction obtained on or after
January 1, 1994; (2) a temporary restraining order or preliminary injunction obtained on
or after January 1, 1994 that is in effect; or (3) a temporary restraining order or
preliminary injunction obtained on or after January 1, 1994 that has expired or terminated
due to mootness, and was not obtained in an ex parte proceeding.
-
- M. "New System Provider" means any Person not affiliated with Respondent who
manufactures, markets, sells, deploys, maintains or has developed a POS System used by
Fueling Locations to effect Transactions, and whose POS System has been operational at 25
Fueling Locations for a period of not less than six (6) months. The term "New System
Provider" does not include any Incumbent System Provider.
-
- N. "Non-Public Fleet Card Information" means any information not in the public
domain disclosed by any Fleet Card Issuer (other than Ceridian) to Respondent in its
capacity as the provider of Trendar Services. Non-Public Fleet Card Information shall not
include: (1) information that falls within the public domain through no violation of this
Order by Respondent; (2) information that becomes known to Respondent from a third party
not in breach of a confidentiality or non-disclosure agreement with respect to such
information; (3) information already known to Respondent on the date it signs the
Agreement Containing Consent Order; and (4) information independently developed by
Respondent without reference to or use of any Non-Public Fleet Card Information.
-
- O. "Non-Public Point of Sale Information" means any information not in the
public domain disclosed by any Designated POS System Provider (other than Ceridian) to
Respondent in its capacity as provider of the Comdata Cards. Non-Public Point of Sale
Information shall not include: (1) information that falls within the public domain through
no violation of this Order by Respondent; (2) information that becomes known to Respondent
from a third party not in breach of a confidentiality or non-disclosure agreement with
respect to such information; (3) information already known to Respondent on the date it
signs the Agreement Containing Consent Order; and (4) information independently developed
by Respondent without reference to or use of any Non-Public Point of Sale Information.
-
- P. "Non-Public Programming Information" means any information not in the
public domain disclosed by any Fleet Card Issuer (other than Ceridian) to the Third-Party
Developer. Non-Public Programming Information shall not include: (1) information that
falls within the public domain through no violation of this Order by Respondent; (2)
information that becomes known to the Third-Party Developer from a third party not in
breach of a confidentiality or non-disclosure agreement with respect to such information;
(3) information already known to the Third-Party Developer on the date Respondent signs
the Agreement Containing Consent Order; and (4) information independently developed by the
Third-Party Developer without reference to or use of any Non-Public Programming
Information.
-
- Q. "Person" means any individual, corporation, partnership, limited liability
partnership, joint venture, association, joint-stock company, limited liability company,
trust or unincorporated organization.
-
- R. "POS Standards" means the following standards that a Designated POS System
Provider must maintain: (1) its POS System complies with the same Comdata Card functional
specifications as the Trendar System; (2) it promptly disseminates Comdata Card
specification changes or updates that have been implemented on the Trendar System; (3) it
provides twenty-four (24) hour support for its POS System; (4) its POS System is Year 2000
compliant; and (5) it maintains the confidentiality of all Comdata Confidential
Information.
-
- S. "POS System" means a point of sale purchase authorization system comprised
of hardware, software, communications networks and related components used by Fueling
Locations for any or all of the following purposes: (1) to obtain authorization for
Transactions; (2) to capture and compile information related to such Transactions for
themselves and others; and (3) to execute ancillary services related thereto as may be
made available from time to time in connection with such POS System.
-
- T. "Respondent" or "Ceridian" means Ceridian Corporation, its
directors, officers, employees, agents, representatives, predecessors, successors and
assigns, subsidiaries, divisions, groups and affiliates controlled by Ceridian
Corporation, and the respective directors, officers, employees, agents, representatives,
successors, and assigns of each.
-
- U."Terminal Fueling Facility" means any fueling facility owned or operated by
or on behalf of a Trucking Company.
-
- V. "Third-Party Developer" means the Person designated by Respondent to
perform the functions described in Paragraph III.C. of this Order.
-
- W. "Transactions" means any diesel fuel purchase, cash advance, data capture,
or any other type of transaction effected by a Fleet Card holder with the Fleet Card
Issuer either: (1) by use of a Fleet Card; or (2) based on information, numbers, or data
obtained from a Fleet Card. Transactions shall not include transactions that are not
authorized by the Fleet Card Issuer.
-
- X. "Transaction Fee" means the fee per transaction that a Fleet Card Issuer
may charge to: (1) Fueling Locations authorized to accept the Fleet Card Issuer's Fleet
Card; or (2) cardholders authorized to use the Fleet Card Issuer's Fleet Card.
-
- Y. "Trendar Business" means any division or entity within or controlled by
Respondent that is engaged in, among other things, the development, sale or licensing of
the Trendar System or Trendar Services.
-
- Z. "Trendar Facility" means any Fueling Location that has purchased or leased
a Trendar System.
-
- AA. "Trendar Services" means all services provided by Respondent that allow
Fleet Card Transactions to be effected through the Trendar System, including, but not
limited to: (1) reading the Fleet Card; (2) recognizing the Fleet Card's functions; (3)
prompting for information required to execute Transactions; (4) transmitting information
about Transactions; (5) communicating with the appropriate Fleet Card Issuer to seek
authorization for Transactions; and (6) printing receipts with the requisite transaction
information.
-
- BB. "Trendar System" means all versions of the proprietary POS System
developed, marketed, deployed or maintained by Respondent.
-
- CC. "Trucking Companies" means companies and their employees and agents that
operate trucks to haul their own products or provide trucking services to other Persons.
II.
IT IS FURTHER ORDERED that for the purpose of ensuring that Designated
POS System Providers may effect Transactions originated by Comdata Cards, and to remedy
the lessening of competition resulting from the Acquisitions as alleged in the
Commission's complaint, Respondent shall:
- A. Except as otherwise provided in this Order, for a period of three (3) years beginning
on the date this Order becomes final, grant a ten (10) year unrestricted non-exclusive
royalty-free license to effect Transactions originated by Comdata Cards to each Incumbent
System Provider who notifies Comdata in writing after this Order is issued; provided,
however, that Respondent may require the licensee to enter into a license agreement
containing the Comdata Card License Conditions attached as Appendix I hereto;
-
- B. Except as otherwise provided in this Order, for a period of three (3) years beginning
on the date this Order becomes final, grant a ten (10) year unrestricted non-exclusive
royalty-free license to effect Transactions originated by Comdata Cards to three (3) New
System Providers. The licenses shall be granted to the first three (3) New System
Providers who notify Comdata in writing after this Order is issued provided they
subsequently become certified pursuant to Paragraph II.G. of this Order; provided, however,
that:
1. If any one of the New System Providers fails to be certified, the license shall be
granted to another New System Provider in the manner set forth in this Paragraph II.B.,
and that is certified pursuant to Paragraph II.G.;
2. Any such license may be transferred by the New System Provider to any Person that
meets the definition of a New System Provider and that is certified pursuant to Paragraph
II.G. of this Order; and
3. Respondent may require the licensee to enter into a license agreement containing the
Comdata Card License Conditions attached as Appendix I hereto;
- C. Make available to any Person requesting a license: (1) a description of the
procedures for obtaining a license; and (2) a copy of this Order;
-
- D. Make available to any Person who so requests a list of the New System Providers that
obtain a license to effect Transactions originated by Comdata Cards under Paragraph II.B.
of this Order;
-
- E. Within ten (10) days of receipt of a written request by a Designated POS System
Provider, provide to the Designated POS System Provider any and all information or
assistance necessary to enable the Designated POS System Provider to effect on its POS
System the same Transactions originated by Comdata Cards on the Trendar System, including,
but not limited to, specifications (including, as applicable but not limited to,
transaction set information specifications, card track or other card identification
specifications, pre- and post-authorization specifications, settlement specifications, and
receipt and report format specifications), protocols, programming, know-how, test
accounts, site numbers, and host telephone numbers;
-
- F. Include in each license with each Designated POS System Provider a provision that
requires the Designated POS System Provider to provide the Monitor Trustee with any
information or access requested by the Monitor Trustee relating to Comdata Cards for the
purpose of determining whether Respondent is complying with Paragraph II. of this Order;
-
- G. Within thirty (30) days of receipt of a written request by a New System Provider,
either: (1) grant a written certification that such New System Provider's POS System
successfully executes Comdata Card Transactions in conformance with the POS Standards and
has a right to do so; (2) deny certification in the event the New System Provider's POS
System fails to execute Comdata Card Transactions in conformance with the POS Standards,
and that failure is solely a result of the New System Provider's act or omission; or (3)
extend, upon mutual written consent with the New System Provider, the time within which
the New System Provider may obtain certification through testing of the New System
Provider's POS System;
-
- H. Have the right to monitor processing of Comdata Cards by the POS System of the
Designated POS System Provider to ensure continuing compliance with the POS Standards,
provided that Respondent shall bear any cost associated with such monitoring; provided,
however, that Respondent shall not terminate the license and may only suspend the
license for the period that any Designated POS System Provider fails to comply with the
POS Standards, provided that Comdata has furnished written notice, including an
enumeration of all claimed deficiencies, ten (10) days in advance of suspension and the
Designated POS System Provider has failed to cure the deficiencies within that time;
-
- I. Not Charge the Designated POS System Provider any fee for the license to effect
Transactions originated by Comdata Cards or for certification of the Designated POS System
Provider's POS System; provided, however, that Respondent may charge a
Transaction Fee to approved Comdata Card holders; provided, further, however,
that nothing herein shall require Respondent to pay any Designated POS System Provider a
fee for processing Comdata Card Transactions;
-
- J. Not charge any Transaction Fee that is based upon which POS System a Fueling Location
has purchased, leased, or otherwise acquired;
-
- K.Not condition the availability of the Comdata Card or
related services to any Fueling Location on whether such Fueling Location has purchased,
leased, or otherwise acquired any POS System other than the Trendar System;
-
- L. Provide all of the Designated POS System Providers that may process Comdata Card
Transactions in accordance with the terms of this Order with equal access to Comdata
Cards, including, but not limited to, all Comdata Card functions, changes, modifications,
upgrades, or new card developments with sufficient notice and assistance so that the
Designated POS System Providers may introduce such changes no later than they are
introduced by Respondent; and
-
- M. Notwithstanding any provision in this Paragraph,
Respondent shall not be required to license (or continue to license) or provide any
information under this Paragraph II. to any Person or an entity controlled by any such
Person against whom Comdata or its predecessors have obtained Injunctive Relief to prevent
the misuse, misappropriation, unauthorized use or improper disclosure or distribution of
Comdata Cards, Comdata Card Transactions, Comdata equipment, data, information or other
materials.
III.
IT IS FURTHER ORDERED that for the
purpose of ensuring that Fleet Card Issuers may effect Fleet Card Transactions through the
Trendar System, and to remedy the lessening of competition resulting from the Acquisitions
as alleged in the Commission's complaint, Respondent shall:
- A. Except as otherwise provided in this Order, for a period
of three (3) years beginning on the date this Order becomes final, grant a ten (10) year
unrestricted non-exclusive royalty-free license to the Trendar Services to any Fleet Card
Issuer who notifies Comdata in writing after this Order is issued, provided it
subsequently receives certification from the Third-Party Developer pursuant to Paragraph
III.C. of this Order or becomes qualified pursuant to Paragraph III.D. of this Order; provided,
however, that Respondent may charge a one-time access fee not to exceed US$30,000; provided,
further, however, that Respondent may require the licensee to enter into a
license agreement containing the Trendar License Conditions attached hereto as Appendix
II;
-
- B. Make available to any Person requesting a license: (1) a
description of the procedures for obtaining a license, including, but not limited to,
obtaining programming and certification services from the Third-Party Developer; and (2) a
copy of this Order;
-
- C. By the date this Order becomes final, enter into a
contract, subject to the prior approval of the Commission, with an independent Third-Party
Developer to perform all programming and certification services for Fleet Card Issuers
relating to the provision of Trendar Services that is subject to the following terms and
conditions:
- 1. Respondent shall provide to the Third-Party Developer
all assistance, specifications, protocols, programming codes, interfaces, and any other
information used to effect Fleet Card Transactions, and necessary to enable the Fleet Card
Issuer to effect Fleet Card Transactions through the Trendar System;
-
- 2. Respondent shall not receive either directly or
indirectly any compensation for such programming and certification services;
-
- 3. The contract between Respondent and the Third-Party
Developer shall provide that the Third-Party Developer shall:
a. Render such programming and certification services to
any Fleet Card Issuer that notifies Comdata pursuant to Paragraph III. A. of this Order;
b. Certify any Fleet Card that is able to execute
Transactions on the Trendar System;
c. Notify Comdata (which, in turn, shall notify the
Commission and the Monitor Trustee if one has been appointed) of any request by a Fleet
Card Issuer for programming and certification services;
d. Notify Comdata (which, in turn, shall notify the
Commission and the Monitor Trustee if one has been appointed) within ten (10) days of
denying certification, including any grounds for any denials;
e. Provide the Monitor Trustee, if one has been appointed,
with access to the personnel performing such programming and certification services, and
the books, records and other relevant materials relating to the provision of (or inability
to provide) such programming and certification services; and
f. Charge the Fleet Card Issuer a fee for such programming and certification services
according to the schedule set forth in the contract between the Third-Party Developer and
Respondent;
4. If the Third-Party Developer ceases to act or fails to act diligently, a substitute
Third-Party Developer may be designated in the same manner as provided in this Paragraph
III.C.;
- D. In the event the Third-Party Developer fails to provide to any Fleet Card Issuer
programming and certification described in Paragraph III.C. in a timely manner, provide,
within a reasonable time period, or cause to be provided, to the Fleet Card Issuer all
assistance, specifications, protocols, programming codes, interfaces, and any other
information used to effect Fleet Card Transactions, and necessary to enable the Fleet Card
Issuer to effect Fleet Card Transactions through the Trendar System;
-
- E. Not terminate the license and may only suspend the license for the period that any
Fleet Card Issuer fails to pay any amounts due to Respondent or the Third-Party Developer
or fails to maintain the confidentiality of Comdata Confidential Information, provided
that Comdata has furnished written notice, including an enumeration of all claimed
deficiencies, ten (10) days in advance of suspension and the Fleet Card Issuer has failed
to cure the deficiencies within that time;
-
- F. Provide to every Trendar Facility designated by the Fleet Card Issuer all programming
used to effect the Fleet Card Issuer's Fleet Card Transactions in the next regular
quarterly release if such programming is completed at least thirty (30) days prior to such
quarterly release or within three (3) months of the date such programming is completed,
whichever is earlier;
-
- G. Not charge any Transaction Fee to any approved Fueling Location that is based upon,
or in any way related to, whether such Fueling Location accepts any Fleet Cards other than
the Comdata Card;
-
- H. Not condition the availability of the Comdata Card or related services to any Fueling
Location on whether such Fueling Location accepts any Fleet Card other than the Comdata
Card;
-
- I. Provide all of the Fleet Card Issuers with equal access to the Trendar Services,
including, but not limited to, all new developments, changes, modifications or upgrades
relating to the Trendar Services with sufficient notice so that the Fleet Card Issuer may
introduce such changes, if such Fleet Card Issuer elects to do so, no later than they are
made available on the Trendar System; provided, however, that this provision
shall not prevent Respondent from undertaking technological and other modifications to the
Trendar System and/or its hardware, software, communications networks, and related
components, including modifications that require changes to Fleet Cards processed through
the Trendar System;
-
- J. Have the right to discontinue the Trendar System should Ceridian reasonably determine
the System is no longer commercially viable; and
-
- K. Notwithstanding any provision in this Paragraph, Respondent shall not be required to
license (or continue to license) or provide any information under this Paragraph III. to
any Person or an entity controlled by any such Person against whom Comdata or its
predecessors have obtained Injunctive Relief to prevent the misuse, misappropriation,
unauthorized use or improper disclosure or distribution of the Trendar System, Trendar
Services, or any other Comdata equipment, data, information or other materials.
IV.
IT IS FURTHER ORDERED that:
- A. Respondent shall not, absent the prior written consent
of the proprietor of Non-Public Point of Sale Information, provide, disclose, or otherwise
make available to any individual acting for the Trendar Business any Non-Public Point of
Sale Information. Respondent shall use any Non-Public Point of Sale Information only in
Respondent's capacity as a provider of the Comdata Cards or as otherwise provided by this
Order, absent the prior written consent of the proprietor of Non-Public Point of Sale
Information.
-
- B. Respondent shall not, absent the prior written consent
of the proprietor of Non-Public Fleet Card Information, provide, disclose, or otherwise
make available to any individual acting for the Comdata Business any Non-Public Fleet Card
Information. Respondent shall use any Non-Public Fleet Card Information only in
Respondent's capacity as a provider of Trendar Services or as otherwise provided by this
Order, absent the prior written consent of the proprietor of Non-Public Fleet Card
Information.
-
- C. Respondent shall not, absent the prior written consent
of the proprietor of Non-Public Programming Information, obtain or seek to obtain,
directly or indirectly, any Non-Public Programming Information. Respondent shall use any
Non-Public Programming Information only in Respondent's capacity as a provider of Trendar
Services or as otherwise provided by this Order, absent the prior written consent of the
proprietor of Non-Public Programming Information.
V.
IT IS FURTHER ORDERED that:
- A. After the date this Order becomes final, the Commission
may appoint a Monitor Trustee to monitor any disputes, claims or controversies under this
Order as outlined in Paragraph V.B.4. below.
-
- B. If a Monitor Trustee is appointed by the Commission,
Respondent shall consent to the following terms and conditions regarding the Monitor
Trustee's powers, duties, authority and responsibilities:
-
- 1. The Commission shall select the Monitor Trustee, the
identity of the Monitor Trustee being subject to the consent of Respondent, which consent
shall not be unreasonably withheld. If Respondent has not opposed, in writing, including
the reasons for opposing, the selection of any proposed Monitor Trustee within ten (10)
days after notice by the staff of the Commission to Respondent of the identity of the
proposed Monitor Trustee, Respondent shall be deemed to have consented to the selection of
the proposed Monitor Trustee;
-
- 2. Within ten (10) days after appointment of the Monitor
Trustee, Respondent shall execute a Trust Agreement, subject to the prior approval of the
Commission, that authorizes and permits the Monitor Trustee to perform the duties set
forth in this Order;
-
- 3. The Monitor Trustee shall have the rights, duties, or
powers necessary to perform the duties enumerated in Paragraph V.B.4. herein;
-
- 4. The Monitor Trustee shall prepare a written report and
recommendation, if appropriate, which may include a finding of fault, with respect to each
dispute or controversy arising out of: (a) each failure to grant certification or
suspension of certification pursuant to Paragraph II. of this Order; (b) each instance
when the Fleet Card Issuer alleges that the Third-Party Developer has failed to provide
programming and certification services in a timely manner pursuant to Paragraph III. of
this Order; (c) each failure to grant certification pursuant to Paragraph III. of this
Order; or (d) Respon-dent's compliance with this Order;
-
- 5. If the Monitor Trustee elects to prepare a written
report and recommendation, the Monitor Trustee shall issue such report and recommendation
to the Commission within ninety (90) days after notification that a dispute or controversy
exists;
-
- 6. The Monitor Trustee shall maintain the confidentiality
of all confidential or proprietary information of Respondent, Designated POS System
Providers, Fleet Card Issuers, and the Third-Party Developer, except that the Monitor
Trustee may disclose to the Commission any confidential and proprietary information when
reporting to the Commission on any matter bearing on compliance with the Trust Agreement
and Order or bearing on the Monitor Trustee's performance of his duties;
-
- 7. The Monitor Trustee shall serve pursuant to the Trust
Agreement from the time it is approved by the Commission for the term of the Order;
-
- 8. Respondent shall give the Monitor Trustee full and
complete access to the personnel, facilities, computers, books, and records related to the
performance of his duties under this Order. The Monitor Trustee shall attempt to schedule
any access or requests for information in such a manner as will not unreasonably interfere
with Respondent's operations;
-
- 9. The Monitor Trustee shall serve without bond or other
security and shall use his best judgment in performing his duties hereunder. The Monitor
Trustee shall be exempt from personal liability, to the extent permitted by law, for any
action or decision not to act taken or made in good faith, except that the Monitor Trustee
may be liable for misfeasance in performing under this Agreement or to the extent the
loss, claim, damage or liability results from the Monitor Trustee's gross negligence,
willful or wanton acts, or bad faith;
-
- 10. The Monitor Trustee shall have the authority to retain
at the cost and expense of Respondent, and at reasonable fees, such employees, agents,
consultants, or any other third party the Monitor Trustee determines to be reasonably
necessary to assist in performing his duties hereunder;
-
- 11. The Monitor Trustee shall be compensated by Respondent
for the reasonable value of his services as provided in the Trust Agreement. In addition
to such compensation, Respondent shall compensate the Monitor Trustee for reasonable
expenses and costs (including travel, lodging, meals and incidental items) incurred by the
Monitor Trustee in connection with the discharge of his duties and efforts under the Trust
Agreement;
-
- 12. The Monitor Trustee may recover his costs of
collection, including reasonable attorneys fees, if Respondent fails to pay compensation
pursuant to Paragraphs V.B.10. and 11. herein; and
-
- 13. If the Monitor Trustee ceases to act or fails to act
diligently, a substitute Monitor Trustee may be appointed by the Commission in the same
manner as provided in this Paragraph.
VI.
IT IS FURTHER ORDERED that:
- A. Within sixty (60) days after the date this Order becomes
final and every sixty (60) days thereafter for one (1) year, Respondent shall submit to
the Commission a verified written report setting forth in detail the manner and form in
which it intends to comply, is complying, and has complied with this Order. Respondent
shall include in its compliance reports, among other things that are required from time to
time: (a) a list of Designated POS System Providers that have applied for licenses to
effect Transactions originated by Comdata Cards; (b) the state of certification (granted,
denied, or pending) of the POS System of each such Designated POS System Provider; (c) a
list of Fleet Card Issuers that have applied for licenses to effect Fleet Card
Transactions through the Trendar System; (d) the state of certification (granted, denied,
or pending) of the Fleet Card of each such Fleet Card Issuer; and (e) a full description
of the efforts being made to comply with Paragraphs II. through V. of this Order.
-
- B. One (1) year from the date this Order becomes final,
annually until this Order has terminated, and at other times as the Commission may
require, Respondent shall file a verified written report with the Commission setting forth
in detail the manner and form in which it has complied and is complying with this Order.
VII.
IT IS FURTHER ORDERED that Respondent
shall notify the Commission at least thirty (30) days prior to any proposed change in the
corporate Respondent such as dissolution, assignment, sale resulting in the emergence of a
successor corporation, or the creation or dissolution of subsidiaries or any other change
in the corporation that may affect compliance obligations arising out of this Order.
VIII.
IT IS FURTHER ORDERED that, for the
purpose of determining or securing compliance with this Order, upon written request,
Respondent shall permit any duly authorized representative of the Commission:
- A. Access, during office hours and in the presence of
counsel, to inspect and copy all books, ledgers, accounts, correspondence, memoranda and
other records and documents in the possession or under the control of Respondent relating
to any matters contained in this Order; and
-
- B. Upon five (5) days' notice to Respondent and without
restraint or interference from it, to interview officers, directors, or employees of
Respondent, who may have counsel present, regarding such matters.
IX.
IT IS FURTHER ORDERED that this Order
shall terminate upon the later of: (a) three (3) years from the date this Order becomes
final; or (b) the expiration of all licenses required by this Order.
Signed this ____ day of ____________, 1999.
CERIDIAN CORPORATION, A CORPORATION
By:________________________________
Tony G. Holcombe
Executive Vice-President
Ceridian Corporation
________________________________
Jeane A. Thomas
Crowell & Moring, LLP
Counsel for Ceridian Corporation
FEDERAL TRADE COMMISSION
By:________________________________
Yolanda R. Gruendel, Attorney
Bureau of Competition
Approved:
________________________________
Ann Malester, Assistant Director
Bureau of Competition
________________________________________
Richard G. Parker, Senior Deputy Director
Bureau of Competition
________________________________________
William J. Baer, Director
Bureau of Competition
APPENDIX I
Comdata Card License Conditions
Respondent may require each Person licensed pursuant to
Paragraph II. of this order to:
- Comply with the POS Standards;
- Permit Respondent to audit the licensee's POS System
through an independent third-party that is subject to a confidentiality agreement
prohibiting disclosure of the licensee's information that is not in the public domain to
Respondent or any other Person;
- Make available the services to be performed by the licensee
to effect all Transactions through the licensee's POS system no less than 99.8% of the
time (exclusive of down-time for maintenance) during every consecutive three (3) month
period;
- For any third-party products supplied to licensee by
Respondent, comply with the licenses between Respondent and the third-party, return any
third-party products supplied by Respondent in good working order upon expiration of the
license or upon Respondent's written request, and hold Respondent harmless for any damages
incurred in connection with the use of third-party products;
- Consent to a provision under which Respondent and licensee
each indemnify the other for any third-party claims resulting from any breach;
- Consent to a provision prohibiting both the licensee and
Respondent from disclosing the other party's confidential information as defined in the
Order;
- Consent to a provision under which Respondent and licensee
shall hold each other harmless for any failure to perform due to force majeure;
- Promptly pay any amounts due to Respondent relating to the
license agreement;
- Not be insolvent or in bankruptcy;
- Cease processing Comdata Cards and using Comdata
Confidential Information upon expiration or suspension of the license pursuant to
Paragraph II.H. of this Order;
- Consent to a provision under which Respondent and the
licensee each acknowledge that the other has not obtained any right to the trademarks,
trade names, service marks or logos belonging to the other through the license agreement; provided,
however, that the licensee may display the Comdata Card name and/or logo in
advertising and promotional information;
- Consent that assignment of the license shall be only: (a)
in accordance with Paragraph II.B. of the Order; or (b) in connection with the acquisition
of the licensee's truck stop POS System business;
- Consent to reasonable notice requirements pertaining to any
notices required under the license agreement;
- Consent to a provision under which Respondent and the
licensee agree to comply with applicable laws and regulations;
- Consent to a provision requiring that any legal action
arising out of the license agreement be brought in the appropriate judicial forum located
in Nashville, Davidson County, TN;
- Consent to a provision requiring that the license agreement
be governed by the laws of the State of Tennessee; and
- Consent to a provision under which Respondent and licensee
agree not to contest the license agreement on the ground of insufficiency or lack of
consideration.
APPENDIX II
Trendar License Conditions
Respondent may require each Person licensed pursuant to
Paragraph III. of this Order to:
- Promptly pay any amounts due to Respondent or the
Third-Party Developer relating to the license agreement;
- Consent to a provision that states that Respondent is the
exclusive owner of any programming performed by the Third-Party Developer relating to the
Trendar System;
- Identify which Fueling Locations accept the licensee's
Fleet Card;
- Consent to a provision prohibiting both the licensee and
Respondent from disclosing the other party's confidential information as defined in the
Order;
- Consent to a provision under which Respondent and licensee
each indemnify the other for any third-party claims resulting from any breach;
- Consent to a provision under which Respondent and licensee
shall hold the other harmless for any failure to perform due to force majeure;
- Cease use of the Trendar System and any Comdata
Confidential Information upon expiration or suspension of the license pursuant to
Paragraph III.E. of this Order;
- Consent to a provision under which Respondent and the
licensee each acknowledge that the other has not obtained any right to the trademarks,
trade names, service marks or logos belonging to the other through the license agreement; provided,
however, that the licensee may display the Trendar name and/or logo in advertising
and promotional information;
- Consent to reasonable notice requirements pertaining to any
notices required under the license agreement;
- Not be insolvent or in bankruptcy;
- Consent that assignment of the license shall be only in
connection with the acquisition of the licensee's trucking Fleet Card business;
- Consent to a provision under which Respondent and the
licensee agree to comply with applicable laws and regulations;
- Consent to a provision requiring that any legal action
arising out of the license agreement be brought in the appropriate judicial forum located
in Nashville, Davidson County, TN;
- Consent to a provision requiring that the license agreement
be governed by the laws of the State of Tennessee; and
- Consent to a provision under which Respondent and licensee
agree not to contest the license agreement on the ground of insufficiency or lack of
consideration.
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