{ "topic": "tsr", "generated_at": "2026-03-27T00:38:02.663Z", "total_provisions": 68, "provisions": [ { "provision_number": "I", "title": "Prohibition Against Misrepresentations", "category": "prohibition", "summary": "Defendants are permanently restrained from making any false or misleading representations in connection with the advertising, promotion, or sale of goods or services, including specific misrepresentations about credit card affiliation, guaranteed credit, and discounted products.", "verbatim_text": "that in connection with the advertising, promotion, offering IT IS FURTHER ORDERED , or sale of goods or services by any means whatsoever, each of the Defendants, and their for sale successors, assigns, officers, agents , servants , employees, and those persons in active concert or paricipation with them who receive actual noticc of this Order by personal serice, facsimile , or otherwise, whether acting directly or through any corporation, subsidiary, division, or other entity, are hereby permnently restrined and enjoined from making, directly or by implication, orally or in writing, any false or misleading representation, or assisting others in making any such false or misleading representation, including any misrepresentation that:\n\nThe Defendat is affliated with Masterard, any other credit card or debit card company, or a ban or other financial institution;\n\nThe Defendant is contacting the consumer in response to a credit application made by the consumer;\n\nAfter a consumer pays the Defendant a fee, the consumer is likely or is guarteed to receive a credit card, debit card, or any other payment card or device of any kind;\n\nThe purchase of a credit card, debit card, or other payment card or device from the Defendant increases the likelihood that a consumer s credit wil improve and that the consumer will get other offers for unsecured credit cards in the future; and\n\nAfter a consumer pays the Defendant a fee, the consumer wil receive, at no additional charge, any discounted products or services.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "II", "title": "Prohibition Against Unauthorized Billing", "category": "prohibition", "summary": "Defendants are permanently restrained from causing a consumer's credit or debit card to be charged or bank account to be debited without express authorization, before receipt of product information, before expiration of any free trial, after a cancellation request, or after the consumer is denied the ability to cancel.", "verbatim_text": "are hereby permanently restrained and enjoined frm causing a consumer s credit or debit card to be charged or bank account to be debited: Without having previously obtained the consumer s express authorization for such charge or debit;\n\nPrior to receipt by the consumer of information about the product or servce that the Defendant represents the consumer wil Eeceive;\n\nPrior to the expiration of any fre tral perod;\n\nAfter the Defendat has received a consumer request to cancel the purchase of such product or serice, unless the Defendant can show the charge or debit occured prior to receipt of the request to cancel; and\n\nAfter the consumer is denied the ability to cancel the product or service though the customer service number provided.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "IV", "title": "Compliance with the Telemarketing Sales Rule", "category": "prohibition", "summary": "Defendants are restrained and enjoined from violating the Telemarketing Sales Rule, including prohibitions against false statements to induce payment, advance fee collection for credit cards, misrepresentation of refund and cancellation policies, and failure to disclose the purpose of calls.", "verbatim_text": "IT IS FURTHER ORDERED that in connection with any telemaketing, Defendants, and each oftheir successors, assigns, principals, offcers, agents, servants, employees, and those persons in active concert or participation with them who receive actul notice of this Order by personal \\WP037U1829:3 STIPULATED JUDGMENT Page 6 of24 service, facsimile, or otherwise, whether acting directly or though any corporation, subsidiary, division, or other device, are hereby restrined and enjoined from violating, and from assisting or facilitating any other person to violate, any provision of the Telemarketig Sales Rule, 16 C. Part 310 including hut not limited to: as amended. Making any false or misleading statement to induce any person to pay for goods or services.\n\nRequesting orreceiving payment ofa fee or consideration in advance of consumers obtaining a credit card when a telemarketer or seller has guarteed or represented a likelihood of success in obtaining a credit card for such consumers;\n\nMisrepresenting, directly or by implication, the ter of the seller s refud cancellation, exchange, or repurchase policies , including but not limited to misrepresentations that; The seller or telemarketer provides a ftee tral or cancellation period durng which time the consumer can cancel; Consumers wil not be biled prior to the end of the free tral or cancellation period; and Defendants provide customer response services to consumers; and\n\nFailing to disclose promptly, and in a clear and conspicuous maner: That the purpose of the call is to sell goods and services; and The identity of all sellers and the natue of all goods and services to durg be offered the call.,", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "V", "title": "Redress Payment", "category": "affirmative_obligation", "summary": "Defendants are jointly and severally liable for $512,000 in redress, satisfied by a $294,000 payment already deposited with the Commission and a $218,000 receivable assigned to the Commission; individual defendants must also provide taxpayer identifying numbers and driver's license copies.", "verbatim_text": "The Defendants are jointly and severally liable for, and are ordered to pay and over to the Commssion, money and assets having a total value of $512 000. Defendants' satisfaction of this $512 000 liability is due upon the entr of this Order by the Cour, and shall be discharged as follows: Defendants deposited the sum of $294 000 with the Commission simultaneously with their execution of this Order, and hereby convey the $294 000 to the Commission upon the entr of the Order, and forever after relinquish any right to this payment, which is not a fine or penalty; and Defendants hereby transfer and assign to the Commission, upon the entr of this Order, an their rights and interest in the $218,000 receivable owed to them by Defendant Assail, Inc., and forever afer forfeit and abandon any right or interest in that amount, so that those fuds win be available for use for consumer redress.\n\nagreeing to this Order. If, upon motion by the Commission, the Cour finds that any IWP03711\\829:3 STIPULATED JUDGMENT Page 8 of 24 - (; Defendant has failed to disclose any material asset or materially misstated the value of any asset in the financial documents descrbed above , or has made any other material misstatement or omission in the financial documents described above, the Court shaU enter a moneta judgment only against that Defendant in the amount of 000 000, and shall mae an express determination that there is no just reason for delay in the entr of that judgment. Ths monetary judgment, shall become immediately due and payable by the Defendant, with interest computed at the rate prescribed under 28 U. C. g 1969, as amended, due from the date of entr of this Order, and Plaintiff shall be permtted to execute upon the judgment immediately and engage in discovery in aid of execution.\n\nIn accordance with 31 U. c. g 7701, the Defendants are hereby required, unless fush they have done so already, to to the Commssion their respective taxpayer identifying numbers (social securty numbers and employer identification numbers) which shall be used for purposes of collecting and reporting on any delinquent amount arsing out of Defendants' relationship with the governent.\n\nThe Individual Defendants are furter required, unless they have done so already, to provide the Commssion with clear, legible and full-size photocopies of aU valid drver s licenses that they possess, which wil be used for reporting and compliance puroses.\n\nDefendants agree that the facts as alleged in the Complaint fied in this action shall be taken as tre in any subsequent litigatjn fied by the Commission to enforce its rights pursuant to this Order, including,! but not limted to, a non-dischargeability banptcy proceeding.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "VI", "title": "Commission's Use of Funds", "category": "affirmative_obligation", "summary": "Funds paid to the Commission may be deposited into a fund for equitable relief including consumer redress; any remaining funds may be used for other equitable relief reasonably related to Defendants' practices or deposited to the U.S. Treasury as disgorgement.", "verbatim_text": "IT IS FURTHER ORDERED that an funds paid to the Commission or its agent pursuant to Paragraph V of this Order, may be deposited into a fund admnistered by the Commission or its , including but not limted to consumer redress and any attendant agent to be used for equitable relief expenses for the administration of any redress fud. In the event that direct redress to consumers is wholly or parially impracticable or that fuds remain after redress is completed, the Commission may apply any remaining funds for such othcr equitable relief (including consumer information remcdies) as it determines to be reasonably related to Defendants' practices alleged in the Complaint. Any fuds not used for such equitable relief shall be deposited to the United States Treasury as disgorgement. Defendants shall have no right to challenge the Commission s choice of remedies under this Pargraph.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "VII", "title": "Lifting of the Asset Freeze", "category": "affirmative_obligation", "summary": "The freeze of Defendants' assets pursuant to the Preliminary Injunction Order entered February 4, 2003 shall be lifted to the extent necessary to turn over assets required by Paragraph V, and upon completion of that transfer shall be permanently vacated and lifted.", "verbatim_text": "IT IS FURTHER ORDERED that the freeze of the Defendants' assets pursuant to the Preliminar Injunction Order entered by this Cour on February 4, 2003, shall be lifted to the extent necessary to turn over assets as required by Paragraph V of this Order, and upon completion ofthat transfer, shall be vacated and liftd permently.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "VIII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Each Defendant must submit a truthful sworn statement to the Commission acknowledging receipt of this Order within five business days of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that each Defendant, withi five (5) business days of receipt of this Order as entered by the Court, shall submit to the Commssion a trthful sworn statement acknowledging receipt of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "IX", "title": "Distribution of Order by Defendant", "category": "acknowledgment", "summary": "For five years from entry, Defendants must deliver copies of this Order and a summary of its injunctive provisions to all principals, officers, employees, agents, and independent contractors, and secure signed acknowledgments of receipt within 30 days from current personnel and before new personnel begin duties.", "verbatim_text": "IT IS FURTHER ORDERED that year from the date of entry of , for a period of five (S) this Order: The Limited Partership Defendant shall: Deliver a copy of this Order to all principals, parters, offcers, and directors , and to all individuals servng the of the Limited Parership Defendant Limited Partnership Defendat in a maagement capacity, whether designated as employees, representatives, agents, consultants, independent contrctors or otherwse;\n\nDeliver, in the form set fort in Appendix A, a sumary of the injunctive provisions of this Order. to each employee, agent, representative and independent contractor having responsibilities subject to this Order; and\n\nSecure signed and dated statements acknowledging receipt of the Order or summ from CUITent principals, partners, offcers, directors , consultats managers, employees, agents, representatives and independent contractors having responsibilities subject to this Order, within thirt (30) days of the date of entry of this Order, and from futue principals, parners, offcers, directors, consultats, maagers, employees, agents, representatives and independent contractors having responsibilities subject to this Order before they commence their new duties or employment.\n\nThe Individual Defendants shall: Deliver a copy of this Order to all principals, parters, offcers, directors and individuals sering in a maagement capacity, whether designated as employees, representatives, agents, consultants, independent contractors or IWP037111829:3 Page II of24 STIPULA TED JUDGMENT otherwse, who are under the control of the Individual Defendant for any business that (a) employs or contracts for personal services from the Individual Defendant, and (b) has responsibilities with respect to the subject matter of this Orer;\n\nDeliver, in the form set forth in Appendix A, a summar of the injunctive provisions of this Order to each employee, agent, representative and independent contractor having responsibilities subject to this Order who is under the control of the Individual Defendant for any business that (a) employs or contracts for personal services fiom the Individual Defendant and (b) has responsibilities with respect to the subject matter of this Order; and\n\nSecure signed and dated statements acknowledging receipt of the Order or sumary from curent principals, parers, offcers, directors, consultants managers, employees, agents, representatives and independent contractors having responsibilities subject to this Order, within thirt (30) days of the date of entr of the Order, and from future principals, parters, offcers directors consultants, managers, employees, agents, representatives and independent contrctors having responsibilties subject to this Order before they commence their new duties or employment.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "X", "title": "Compliance Reporting by Defendants", "category": "compliance_reporting", "summary": "For five years from entry, Individual Defendants must notify the Commission of changes in residence, employment status, and name within 10 days; all Defendants must notify of structural changes to business entities at least 30 days prior; and all Defendants must file annual written compliance reports for five years.", "verbatim_text": "For a period of five (5) years from the date of entr of this Order IWP03711\\829:3 STIPULATED JUDGMENT Page 12 of24 Each of the Individual Defendants shall notifY the Connssion in writing of any of the following: Any changes in residence, mailing addrsses and telephone numbers of the Individual Defendant, within ten (10) days ofthe date of such change;\n\nAny change in employment status (including self-employment) ofthe Individual Defendant, and any change in the ownership interest ofthe Individual Defendant in any business entity, withn ten (10) days of such change. Such notice shall include the nae and addrss of each business that the Individual Defendant is affiliated with, employed by, or performs services for, a statement ofthe nature of the business and a statement of the Individual Defendant duties and responsibilities in connection with the business or employment; aod\n\nAny changes in the Individual Defendant's name oruse of any aliases or fictitious naes; and\n\nAll Defendants shall notifY the Connssion of any changes in the strctue of the Limited Parnership Defendant, or any business entity that any Defendant directly or indirectly controls, or has an ownership interest in, that may affect compliance obligations arsing under this Order, including but not limited to a dissolution, assignent, sale, merger, or other action that would result in the emergence of a successor entity, the creation or dissolution of a subsidiary, parent, or affliate that engages in any acts or practices subject to IWP03711\\829:3 STIPULATED JUDGMENT Page 13 of 24 this Order, the tiling of a banptcy petition, or a change in the name or address of the entity, at least thirt (30) days prior to such change; provided that with respect to any proposed change in the business entity about which the Defendat learns less than thirt (30) days prior to the date such action is to take place, the Defendant shall notifY the Commission as soon as is practicable after obtaining such knowledge;\n\nOne hundred eighty (180) days after the date of entr of this Order , and each year thereafter on the same date, through and including January I, 2008, each of the Defendats shall provide a wrtten report to the Commission, sworn to under penalty of peIjury, settng fort in detail the maner and form in which the Defendant has complied and is complying with this Order. This report shall include but not be limited to: The then-cUIent residence address, mailing addresses and telephone numbers of the Individual Defendant; The then-curent employment and business addresses and telephone numbers of the Individual Defendant, a description of the business activities of each such employer or business, and the title and responsibilities of the Individual Defendant for each such employer or business; A statement of the Individual Defendat's then-curent business income and expenses, including a copy ofthe Individual Defendant s income tax returns with return for any parershifl, corporations or other business entities owned, controlled or operated by the Individual Defendant or on the Individual Defendat's behalf; \\ WP03711 \\829:3 STIPULTED JUDGMENT Page 140f24 , \" . . A statement describing the manner in which the Individual Defendant has complied and is complying with Pargraphs I-IV and XV of this Order; A copy of each acknowledgment of receipt of this Order obtained by the lndividual Defendant puruant to Paragraph IX of this Order;", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XI", "title": "Monitoring Compliance of Sales Personnel", "category": "monitoring", "summary": "In connection with any business Defendants manage, control, or have a majority ownership interest in, Defendants are restrained from failing to take reasonable steps to monitor and ensure employee and contractor compliance with the Order, including random blind testing, complaint procedures, and corrective action.", "verbatim_text": "Failing to take reasonable steps suffcient to monitor and ensure that al1 employees and independent contractors engaged in sales or other customer service functions comply with Paragraphs I-IV and XV of this Order. Such steps shall include monitoring of sales presentations with customers, and shall also include, at a minimum, the following: (I) radom, blind testing of the oral representations made by persons engaged in sales or other customer service fuctions; (2) establishing procedure for receiving and responding to consumer complaints; and (3) ascertaining the number and natue of consumer complaints regarding tranactions in which each employee or independent contractor is involved;\n\nFailing promptly to investigate fully any consumer complaint received by any business to which this Pargraph applies; and\n\nFailing to tae any corrective action with respect to any sales person whom the Individual Defendant determnes is not complying with this Order, which may include trining, disciplining, and/or terminating such sales person.\n\nFailing to keep records of consumer complaints and the monitoring of consumer complaints.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XII", "title": "Record-Keeping Provisions", "category": "recordkeeping", "summary": "For eight years from entry, Defendants are restrained from failing to create and retain specified business records, including accounting records, personnel records, customer files, complaints, sales scripts and marketing materials, and all documents necessary to demonstrate full compliance with the Order.", "verbatim_text": "that, for a period of eight (8) years from the date of entr of IT IS FURTHER ORDERED this Order, in cOimection with any business that the Limited Partership Defendant or any of the Individual Defendants directly or indirectly manages, controls or has a majority ownership interest , Defendants and their agents, employees, pricipalstparers, offcers, directors, corporations successors, and assigns, and those persons in active concert or participation with them who receive actual notice of this Order by personal service, facsimle or otherwise, are hereby restrained and enjoincd from failing to create and retain the following records: \\WP037H\\829:3 STIPULATED JUGMENT Page 16 of24 - - Accounting records that reflect the cost of goods or servIces sold, revenues generated, and the disbursement of such revenues;\n\nPersonnel records accurately reflecting: the name, address, and telephone number of each person employed in any capacity by such business, including as an independent contrctor; that persons job title or position; the date upon which the person commenced work; and the date and reason for the persons termination, if applicable;\n\nCustomer files containing the names, addresses, phone numbers, dollar amounts paid, quantity of items or services purchased, and description of items or services purchased, to the extent such informtion is obtained in the ordinar course of business;\n\nComplaints and refud requests (whetherreceived directly, indirectly or thugh any third part) and any responses to those complaints or requests;\n\nCopies of all sales scripts , trining materials , advertisements, or other marketing materials, includig e-mail and Internet websites or web pages, regarding any good service, company or web site disseminated by the Defendant to any person; and\n\nAllrecords and documents necessary to demonstrte full compliance with each provision ofthis Order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Recordkeeping" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XIII", "title": "Access to Business Premises", "category": "monitoring", "summary": "For five years from entry, Defendants must permit Commission representatives to access any office or facility storing business documents within three business days of written notice, and must allow inspection, copying, and temporary removal of documents for up to three business days.", "verbatim_text": "IT IS FURTHER ORDERED that, for a period of five (5) year from the date of entry of this Order, for th(: purposes of determning or securing cempliance with its provisions, each ofthe Defendants, and 1heir agents, employees, principals, patiers, offcers, corporations, successors, and \\WP03711\\829:3 STIPULTED JUGMENT Page 17 of24 - -- - assigns, and those: persons or entities in active concert or partcipation with them who receive actual notice of this Order by personal service, facsimile or otherwise, shall pennit representatives of the Commission, within three (3) business days of receipt of wrtten notice from the Commssion, access during normal business hours to any offce or facility storing documents of any business tht the Defendant directly or indirectly manages, controls or has a majority interest in. In providing such access, the Defendant shall permit representatives of the Commission to inspect and copy all documents relevant to any matter contained in this Order, and shall pennit representatives of the Commission to n:move such documents for a period not to exceed thee (3) business days, so that the documents may be inspected, inventoried, and copied.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XIV", "title": "Commission's Authority to Monitor Compliance", "category": "monitoring", "summary": "The Commission is authorized to monitor compliance through multiple means, including requiring Defendants to submit additional written reports, produce documents, appear for deposition, conduct discovery, and pose as consumers or suppliers; Defendants must permit interviews of personnel.", "verbatim_text": "Within ten (10) days of receipt of written notice from a representative of the Commssion, each of the Defendants each shall submit additional wrtten reports sworn to under penalty of perjury, produce documents for inspection and copying, and appear for deposition.\n\nIn addition, the Commission is authorized to monitor compliance with this Order by all other lawful means, including but not limited to the following: Obtaining discovery from any person, without further leave of cour, using the procedures prescribed by Fed. R. Civ. P. 30 33, , and 45; and Posing as consumers and suppli!!rs to Defendats, Defendants' employees or any other entity managed or controlled in whole or in part by any of the Defendants, without the necessity of identification or prior notice; and\n\nDefendants shall permt representatives of the Commssion to intervew any employer, consultant, independent contractor, representative, agent , parer, offcer or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XV", "title": "Prohibitions Involving Consumer Lists", "category": "prohibition", "summary": "Defendants are permanently restrained from selling, renting, leasing, transferring, or disclosing any consumer identifying information obtained prior to entry of this Order in connection with goods or services marketed by Defendant Assail, Inc., except as required by law or to law enforcement.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, and their pricipals, parners , officers agents, servants, employees, and attorneys, and all other persons or entities in active concert or partcipation with them who receive actual notice of this Order by personal service, facsimile, or otherwise, are hereby permently restrined and enjoined from sellng, renting, leasing, transferrng, or otherise disclosing the name, address, telephone number, credit card number, ban account number, e-mail address, or other identifYing information of any person which was obtained , at any time prior to entr advertising, by any Defendant of ths Order, in connection with the promotion, marketing, offerig for sale , or sale of any good or service marketed by Defendat Assail, Inc. provided, however that Defendants may disclose such identifYng information to a law enforcement agency, or as required by any law, regulation or cour order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XVI", "title": "Fees and Costs", "category": "affirmative_obligation", "summary": "Each party to this Order agrees to bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IS FURTHER ORDERED that each par to this Order hereby agrees to bear its own IT costs and attorneys' fees incured in connection with this action.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XVII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Cour shall retain jurisdiction of this matter for puroses of constrction, modification and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "XVIII", "title": "Complete Settlement", "category": "acknowledgment", "summary": "The parties consent to entry of this Order as a final judgment and order constituting a full, complete, and final settlement of this action.", "verbatim_text": "The paries hereby consent to entr of the foregoing Order which shall constitutc a final judgment and order in this matter. The partcs furter stipulate and agree that the entr of the foregoing order shall constitute a full, complete, and final settlement of this action.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "01.05_assail", "company_name": "Assail, Inc.", "date_issued": "2005-01-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45; Sections 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 57(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101 et seq.; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/022-3147-assail-inc-et-al", "docket_number": "Civ. No. WA:03-CV-7" }, { "provision_number": "I", "title": "Prohibition on Collection of Advance Fees", "category": "prohibition", "summary": "Defendants are permanently enjoined from charging or receiving money for any Credit Repair Service before that service is fully performed.", "verbatim_text": "I IT IS THEREFORE ORDERED that Defendants, Defendants’ officers, agents, and employees, and all other Persons in active concert or participation with them, who receive actual notice of this Order by personal service or otherwise, whether acting directly or indirectly, in connection with the advertising, marketing, promoting, or offering for sale of any Credit Repair Service, are hereby permanently restrained and enjoined from charging or receiving any money or other consideration for the performance of any Credit Repair Service before such Credit Repair Service is fully performed.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "II", "title": "Prohibition on Sale of Tradelines", "category": "prohibition", "summary": "Defendants are permanently enjoined from selling or assisting in selling any Credit Repair Service that adds a person as an authorized user to another person's credit account unless that person is given access to such credit.", "verbatim_text": "II IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, and employees, and all other Persons in active concert or participation with them, who receive actual notice of this Order by personal service or otherwise, whether acting directly or indirectly, are hereby permanently restrained and enjoined from advertising, marketing, promoting, brokering, offering for sale, or selling, or assisting in the advertising, marketing, promoting, brokering, offering for sale, or selling, of any Credit Repair Service that adds, attempts to add, or advises or directs others to add, any Person as an authorized user to any other Person’s credit card account or other line of credit unless the Person to be added is given access to such credit.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "III", "title": "Prohibitions on Marketing of Credit Repair Services", "category": "prohibition", "summary": "Defendants are permanently enjoined from making various misrepresentations in the marketing of Credit Repair Services and from violating CROA disclosure requirements.", "verbatim_text": "A. Misrepresenting or assisting others in misrepresenting, expressly or by implication: 1. That any Person will add any Person as an additional authorized user to any other Person’s credit card or line of credit account;\n\n2. That any Person can substantially improve any Person’s credit score or credit rating;\n\n3. That any Person is an additional authorized user on any other Person’s credit card or line of credit account;\n\n4. That any Credit Repair Service will help any Person obtain a mortgage or other extension of credit;\n\n5. That any Person can remove negative information or hard inquiries from any Person’s credit report, credit record, credit history, credit profile; or\n\n6. Any other fact material to consumers concerning any Credit Repair Service, such as the total costs; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics;\n\nB. Engaging in any act, practice, or course of business that constitutes or results in the commission of, or an attempt to commit, a fraud or deception on any Person in connection with the offer or sale of the Credit Repair Service;\n\nC. Failing to provide any Person with a written statement of “Consumer Credit File Rights Under State and Federal Law,” in the form and manner required by Section 405(a) of CROA, 15 U.S.C. § 1679c(a);\n\nD. Failing to include in contracts for any Credit Repair Service a conspicuous statement in bold face type, in immediate proximity to the space reserved for the consumer’s signature on the contract, regarding the consumer’s right to cancel the contracts without penalty or obligation at any time before the third business day after the date on which consumers signed the contracts, in the form and manner required by Section 406(b)(4) of CROA, 15 U.S.C. § 1679d(b)(4); and\n\nE. Failing to provide any Person with a separate form with the heading “Notice of Cancellation,” in the form and manner required by Section 407(b) of CROA, 15 U.S.C. § 1679e(b); and\n\nF. Violating CROA, 15 U.S.C. §§ 1679-1679j, a copy of which is attached as Attachment A.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "IV", "title": "Prohibition on Deceptive Business Activities Regarding Any Products or Services", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting the legality, refund policies, or material facts of any product or service, and must clearly disclose refund and cancellation terms.", "verbatim_text": "1. That such product or service is legal or otherwise protected by any federal or state statute or rule;\n\n2. The terms of any refund, cancellation, exchange, or repurchase policy, or the circumstances under which a full or partial refund will be granted or denied; or\n\n3. Any other fact material to Persons concerning any product or service, such as the total costs; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics;\n\nB. Failing to disclose clearly and conspicuously the terms of any refund, cancellation, exchange, or repurchase policy, or the circumstances under which a full or partial refund will be granted or denied.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "V", "title": "Prohibition Against Unsubstantiated Claims", "category": "prohibition", "summary": "Defendants must not make any representation about the benefits, performance, or efficacy of any product or service unless they possess and rely upon competent and reliable evidence sufficient to substantiate that the representation is true.", "verbatim_text": "V IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, and employees, and all other Persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with the advertising, marketing, promoting, or offering for sale of any product or service, are permanently restrained and enjoined from making any representation or assisting others in making any representation, expressly or by implication, about the benefits, performance, or efficacy of any product or service, unless the representation is non-misleading, and, at the time such representation is made, Defendants possess and rely upon competent and reliable evidence that is sufficient in quality and quantity based on standards generally accepted in the relevant field, when considered in light of the entire body of relevant and reliable evidence, to substantiate that the representation is true.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "VI", "title": "Injunction Relating to Telemarketing", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting material aspects of goods or services during telemarketing and from violating the FTC's Telemarketing Sales Rule.", "verbatim_text": "A. Misrepresenting, directly or by implication, in the sale of goods or services any material aspect of the performance, efficacy, nature, or central characteristics of goods or services that are the subject of a sales offer; and\n\nB. Violating the FTC’s Telemarketing Sales Rule, 16 C.F.R. Part 310, a copy of which is attached as Attachment B.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "VII", "title": "Monetary Judgment", "category": "affirmative_obligation", "summary": "A judgment of $6,630,678 is entered against Defendants jointly and severally; Defendants must pay $64,863 within 7 days of entry, after which the remainder is suspended subject to conditions including accuracy of financial representations.", "verbatim_text": "A. Judgment in the amount of SIX MILLION, SIX HUNDRED THIRTY THOUSAND, SIX HUNDRED AND SEVENTY EIGHT DOLLARS ($6,630,678) is entered in favor of the FTC against Defendants, jointly and severally, as equitable monetary relief.\n\nB. Defendants are ordered to pay to the FTC SIXTY FOUR THOUSAND EIGHT HUNDRED SIXTY THREE DOLLARS ($64,863), which, as Defendants stipulate, their undersigned counsel holds in escrow for no purpose other than payment to the FTC. Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the FTC. Ninety-one days after the completion of such payment, the remainder of the judgment is suspended, subject to the Subsections below.\n\nC. The FTC’s agreement to the suspension of part of the judgment is expressly premised upon the truthfulness, accuracy, and completeness of Defendants’ sworn financial statement and related documents (collectively, “financial representations”) submitted to the FTC, namely: (1) the Financial Statement of Corporate Defendant BMS, Inc. signed Page 8 of 17 Case 1:20-cv-00641-STV Document 6 Filed 03/09/20 USDC Colorado Page 9 of 54 by William Airy, CEO on November 15, 2019, including the attachments; and (2) the Financial Statement of Individual Defendant William Airy signed on November 15, 2019, including the attachments. D. The suspension of the judgment will be lifted as to any Defendant if, upon motion by the FTC, the Court finds that Defendant failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations identified above.\n\nF. Defendants relinquish dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nG. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the FTC, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Section, such as a nondischargeability complaint in any bankruptcy case. H. The facts alleged in the Complaint establish all elements necessary to sustain an action by the FTC pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.\n\nI. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security Numbers or Employer Identification Numbers) may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701.\n\nJ. All money paid to the FTC pursuant to this Section may be deposited into a fund administered by the FTC or its designee to be used for equitable relief, including consumer redress and any attendant expenses for the administration of any redress fund. If a representative of the FTC decides that direct redress to consumers is wholly or partially impracticable or money remains after redress is completed, the FTC may apply any remaining money for such other equitable relief (including consumer information remedies) as it determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. Defendants have no right to challenge any actions the FTC or its representatives may take pursuant to this Subsection.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "VIII", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendants must provide customer information to the FTC for redress administration upon request, are prohibited from using or disclosing previously obtained customer information, and must destroy such information within 30 days of FTC direction or one year after entry of the Order.", "verbatim_text": "A. Failing to provide sufficient customer information to enable the FTC to efficiently administer consumer redress. If a representative of the FTC requests in writing any Page 10 of 17 Case 1:20-cv-00641-STV Document 6 Filed 03/09/20 USDC Colorado Page 11 of 54 information related to redress, Defendants must provide it, in the form prescribed by the FTC, within 14 days.\n\nB. Disclosing, using, or benefitting from customer information, including the name, address, telephone number, email address, social security number, other identifying information, or any data that enables access to a customer’s account (including a credit card, bank account, or other financial account), that any Defendant obtained prior to entry of this Order in connection with the marketing or sale of any Credit Repair Service.\n\nC. Failing to destroy such customer information in all forms in their possession, custody, or control within the earlier of: 1. 30 days after receipt of written direction to do so from a representative of the FTC, or 2. one year after entry of this Order.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Data Deletion" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "IX", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Each Defendant must submit a sworn acknowledgment of receipt of the Order within 7 days, deliver copies to current and future relevant personnel, and obtain signed acknowledgments within 30 days of delivery.", "verbatim_text": "A. Each Defendant, within 7 days of entry of this Order, must submit to the FTC an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, the Individual Defendant for any business that such Defendant, individually or collectively with any other Defendants, is the majority owner or controls directly or indirectly, and each of the Corporate Defendants, must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees having managerial responsibilities for conduct related to the subject matter of the Order and all agents and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "X", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit a sworn compliance report one year after entry of the Order, and for 20 years must submit sworn compliance notices within 14 days of any material changes; all submissions must be sworn under penalty of perjury and submitted to the FTC by prescribed means.", "verbatim_text": "A. One year after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury: 1. Each Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the FTC may use to communicate with Defendant; (b) identify all of that Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Page 12 of 17 Case 1:20-cv-00641-STV Document 6 Filed 03/09/20 USDC Colorado Page 13 of 54 Internet addresses; (c) describe the activities of each business, including the goods and services offered, the means of advertising, marketing, and sales, and the involvement of any other Defendant (which Individual Defendants must describe if he knows or should know due to his own involvement); (d) describe in detail whether and how that Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the FTC. 2. Additionally, the Individual Defendant must: (a) identify all telephone numbers and all physical, postal, email and Internet addresses, including all residences; (b) identify all business activities, including any business for which such Defendant performs services whether as an employee or otherwise and any entity in which such Defendant has any ownership interest; and (c) describe in detail such Defendant’s involvement in each such business, including title, role, responsibilities, participation, authority, control, and any ownership.\n\nB. For 20 years after entry of this Order, each Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: 1. Each Defendant must report any change in: (a) any designated point of contact; or (b) the structure of the Corporate Defendants or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution Page 13 of 17 Case 1:20-cv-00641-STV Document 6 Filed 03/09/20 USDC Colorado Page 14 of 54 of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order. 2. Additionally, the Individual Defendant must report any change in: (a) name, including aliases or fictitious name, or residence address; or (b) title or role in any business activity, including any business for which such Defendant performs services whether as an employee or otherwise and any entity in which such Defendant has any ownership interest, and identify the name, physical address, and any Internet address of the business or entity.\n\nC. Each Defendant must submit to the FTC notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its filing.\n\nD. Any submission to the FTC required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by an FTC representative in writing, all submissions to the FTC pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Page 14 of 17 Case 1:20-cv-00641-STV Document 6 Filed 03/09/20 USDC Colorado Page 15 of 54 Washington, DC 20580. The subject line must begin: FTC v. BoostMyScore LLC, Matter No. 192-3059.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "XI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create certain records for 20 years after entry of the Order and retain each such record for 5 years, including accounting records, personnel records, consumer complaint records, compliance records, and copies of all marketing materials.", "verbatim_text": "XI IT IS FURTHER ORDERED that Defendants must create certain records for 20 years after entry of the Order, and retain each such record for 5 years. Specifically, the Corporate Defendants and the Individual Defendant for any business that such Defendant, individually or collectively with any other Defendants, is a majority owner or controls directly or indirectly, must create and retain the following records: A. accounting records showing the revenues from all goods or services sold;\n\nB. personnel records showing, for each Person providing services, whether as an employee or otherwise, that Person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. records of all consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response;\n\nD. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission; and\n\nE. a copy of each unique advertisement or other marketing material.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "XII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC is authorized to monitor Defendants' compliance through document requests, depositions, discovery, direct communication with employees, and consumer reporting agency inquiries; Defendants must cooperate within 14 days of written requests.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the FTC, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The FTC is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the FTC are authorized to communicate directly with each Defendant. Defendants must permit representatives of the FTC to interview any employee or other Person affiliated with any Defendant who has agreed to such an interview. The Person interviewed may have counsel present.\n\nC. The FTC may use all other lawful means, including posing, through their representatives as consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the FTC’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.\n\nD. Upon written request from a representative of the FTC, any consumer reporting agency must furnish consumer reports concerning the Individual Defendant, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "XIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "XIII IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "deceptive", "statutory_topics": [ "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "03.20_boostmyscore", "company_name": "BoostMyScore LLC", "date_issued": "2020-03-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 410(b) of the Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679h(b); Section 6(b) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105(b)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3059-boostmyscore-llc", "docket_number": "1:20-cv-00641" }, { "provision_number": "I", "title": "Permanent Ban on Outbound Telemarketing", "category": "prohibition", "summary": "Defendant is permanently enjoined from initiating, assisting, or causing outbound telemarketing calls, and from owning or controlling any company that does so, with a narrow exception for manually dialed calls to persons with an established business relationship or express written agreement.", "verbatim_text": "A. Initiating Outbound Telephone Calls, assisting others in initiating Outbound Telephone Calls, and Causing Others to Initiate Outbound Telephone Calls. Provided, however, that it is not a violation of this Order for Defendant to place Manually Dialed Calls to persons with whom he has an Established Business Relationship or from whom he has received an Express Written Agreement.\n\nB. Owning or controlling, or holding any ownership interest, share, or stock, in any company that engages in conduct banned in subsection I.A. Provided, however, that it is not a violation of this Order for Defendant to own a non-controlling stock interest in a publicly traded company that engages in conduct banned in subsections I.A-B.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "III", "title": "Prohibition Against Misrepresentations", "category": "prohibition", "summary": "Defendant and those acting in concert with him are permanently enjoined from misrepresenting their affiliation with competitor alarm companies, their acquisition of competitor businesses, or the name of Defendant's business.", "verbatim_text": "A.(cid:3) Defendant’s affiliation or association with a competitor alarm installation or(cid:3) monitoring company or any other business;\n\nB.(cid:3) Defendant’s purchase or acquisition (cid:82)(cid:73)(cid:3)a competitor alarm installation or monitoring(cid:3)company or any other business; or\n\nC. The name of Defendant’s business.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "IV", "title": "Monetary Judgment for Civil Penalty and Suspension", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $9,845,021 is entered against Defendant, with $88,000 payable in two installments and personal jewelry liquidated; the remainder of the judgment is suspended conditioned on the truthfulness of Defendant's sworn financial representations.", "verbatim_text": "A. Judgment in the amount of Nine Million, Eight Hundred Forty-Five Thousand, and Twenty-One dollars ($9,845,021) is entered in favor of the Commission against Defendant as a civil penalty.\n\n1. Within seven (7) days of the entry of this Order, Defendant must pay to the Commission, by electronic fund transfer in accordance with 5 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 6 of 30 PageID #: 3112 instructions previously provided by a representative of the Commission, the sum of twenty-eight thousand dollars ($28,000).\n\n2. Within one hundred twenty (120) days of entry of this Order, Defendant must make a second payment to the Commission, by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission, of sixty thousand dollars ($60,000).\n\nC.(cid:3) Within seven (7) days of the entry of this Order, Defendant must cause the liquidation of all of his personal jewelry (as listed on his Itemization of Personal Jewelry dated January 23, 2020) by delivering it to Skinner Inc., an auction house located in Boston, MA. Defendant’s liquidation of jewelry is pursuant to the terms of a contract between Defendant and Skinner Inc., a copy of which is attached as Appendix B to this Order. Defendant is further Ordered to sign any documents and to take any other steps necessary to facilitate the liquidation.\n\nD.(cid:3) Upon completion of the payments required under Section IV.B, and turning over(cid:3) of jewelry required under Section IV.C, the remainder of the judgment is suspended, subject to the Subsections below.\n\nE.(cid:3) The Commission’s agreement to the suspension of part of the judgment is(cid:3) expressly premised upon the truthfulness, accuracy, and completeness of Defendant’s sworn financial statements and related documents (collectively, “financial representations”) at the time submitted to the Commission, namely: 1. The Itemization of Personal Jewelry of Defendant Jasjit Gotra signed on January 23, 2020; 2. The Financial Statement of Defendant Jasjit Gotra signed on November 3, 2019, including the attachments; 3. The Financial Statement of Defendant Jasjit Gotra signed on January 31, 2019, including the attachments; and 6 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 7 of 30 PageID #: 3113 4. The Financial Statement of Defendant Jasjit Gotra signed on July 25, 2017, including the attachments.\n\nF. The suspension of the judgment will be lifted if, upon motion by the Commission, the Court finds that Defendant failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations identified above.\n\nG. If the suspension of the judgment is lifted, the judgment becomes immediately due in the amount specified in Subsection A above (which the parties stipulate only for purposes of this Section represents the amount of the civil penalty for the violations alleged in the Complaint), less any payment previously made pursuant to this Section, plus interest computed from the date of entry of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "V", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all interest in transferred assets, consents to facts in the Complaint being taken as true in future proceedings, and acknowledges the civil penalty is not dischargeable in bankruptcy.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendant agrees that the judgment against it represents a civil penalty owed to the government of the United States, is not compensation for actual pecuniary loss, and, therefore, as to Defendant, is not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 1141(d)(3) or 11 U.S.C. § 727(a).\n\nD. Defendant agrees that the judgment represents a civil penalty owed to the government of the United States, is not compensation for actual pecuniary loss, and is therefore not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7).\n\nE. Defendant acknowledges that his Social Security Number, which Defendant previously provided, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VI", "title": "Cooperation", "category": "affirmative_obligation", "summary": "Defendant must fully cooperate with the FTC in this case and related investigations, provide truthful testimony and documents on five days' written notice, and consent to disclosure of electronic communications records for compliance monitoring purposes.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must fully cooperate with representatives of the Commission in this case and in any investigation related to or associated with the transactions or the occurrences that are the subject of the Complaint. Defendant must provide truthful and complete information, evidence, and testimony. Defendant must also appear for interviews, discovery, hearings, trials, and any other proceedings that a Commission representative may reasonably request upon five days written notice, at such places and times that a Commission representative may designate, without requiring the service of a subpoena.\n\nFurther, to assist the Commission with any investigation and with monitoring Defendant’s compliance with this order, Defendant consents, for purposes of Sections 2701-2712 of the Electronic Communications Privacy Act (“ECPA”), to the disclosure of the contents and records of his auto-dialed, Telemarketing communications or other information pertaining to his auto- dialed, Telemarketing communications by electronic communications service providers and remote computing service providers. This ECPA provision also applies to any company under Defendant’s control and any company for which Defendant is the majority owner. Defendant\n\nfurther agrees to execute, within fourteen (14) days of a request from the Commission, any forms or other documents evidencing its consent that may be required by such electronic communications service providers or remote computing service providers.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Consumer Notification" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of the Order within seven days, deliver copies to all relevant business personnel and contractors within seven days (or before they assume responsibilities), and obtain signed acknowledgments from each recipient within thirty days.", "verbatim_text": "A. Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For five (5) years after entry of this Order, for any business that Defendant, individually or collectively with any other defendant, is the majority owner or controls directly or indirectly, Defendant must deliver a copy of this Order, including Appendix A, to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and other representatives who participate in conduct related to the subject matter of the Order; (3) any authorized dealer, vendor, contractor, lead generator, or other person soliciting sales on behalf of such company; and (4) any person placing telephone calls on behalf of such company. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must file a sworn annual compliance report one year after entry of the Order detailing contact information, business activities, and compliance status, and must file sworn notices within fourteen days of any changes to name, contact information, or business structure for twenty years, as well as notice of any bankruptcy filing.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury, in which Defendant must: 1. Identify all telephone numbers and all physical, postal, email and Internet addresses, including all residences; 2. Identify all business activities, including any business for which Defendant performs services whether as an employee or otherwise and any entity in which such Defendant has any ownership interest; 3. Describe in detail Defendant’s involvement in each such business, including title, role, responsibilities, participation, authority, control, and any ownership; 4. Describe in detail whether and how Defendant is in compliance with each Section of this Order; and 9 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 10 of 30 PageID #: 3116 5. Provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For twenty (20) years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in the following, in which Defendant must report any change in: 1. His name or any of his contact information; 2. The structure of any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: (a) creation, (b) merger, (c) sale, or (d) dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; 3. Title or role in any business activity, including any business for which Defendant performs services whether as an employee or otherwise and any entity in which Defendant has any ownership interest, and identify the name, physical address, and any Internet address of the business or entity.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within fourteen days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 10 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 11 of 30 PageID #: 3117 Washington, DC 20580. The subject line must begin: FTC v. Alliance Security Inc., et al., Matter Number X140022.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "IX", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create specified business records for twenty years and retain each record for five years, covering accounting, personnel, consumer complaints, established business relationships, express written agreements, and all compliance documentation.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for twenty (20) years after entry of the Order, and retain each such record for five years. Specifically, Defendant, for any business that Defendant, individually or collectively with any other defendant, is a majority owner or control directly or indirectly, must create and retain the following records: A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. Records of all consumer complaints whether received directly or indirectly, such as through a third party, and any response;\n\nD. All records of an Established Business Relationship with any person for a period of five (5) years from the start of that relationship and for a period of five (5) years after any Manually Dialed Outbound Telephone Call placed to that person based on the Established Business Relationship.\n\nE. All records of an Express Written Agreement from any person for a period of five (5) years from the date of such written agreement, and for a period of five (5) years after any Manually Dialed Outbound Telephone Call placed to that person based on the Express Written Agreement.\n\nF. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Recordkeeping" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "X", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC has broad rights to monitor Defendant's compliance, including requesting additional reports and depositions within fourteen days, communicating directly with Defendant, interviewing affiliated employees, and using undercover methods, as well as employing all lawful compulsory process.", "verbatim_text": "A. Within fourteen days of receipt of a written request from a representative of the Commission, Defendant must: (1) submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; (2) appear for depositions; and (3) produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission is authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing through its representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with either Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "XI", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "I", "title": "Ban on Future Telemarketing Activities", "category": "prohibition", "summary": "All Defendants are permanently restrained and enjoined from engaging or participating in telemarketing of any credit-related products, programs, or services, directly or through any intermediary.", "verbatim_text": "IT IS HEREBY ORDERED that Quebec, Inc., Mitchel Kastner, Corber, Jason Kastner Sun Spectrum, NACO, WWCI, Marten , and Bascove are permanently restrained and enjoined from engaging or paricipating in telemarketing of any credit-related products, programs, or services, directly or through any intennediar. Engaging or paricipating in telemarketing includes, but is not limited to, directing, supervising, providing consulting services to, providing brokering services to, providing planning services to, or otherwise providing advice related to telemarketing to any person or entity.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "II", "title": "Injunction Against False or Misleading Statements", "category": "prohibition", "summary": "Defendants are permanently restrained from making any false or misleading representations in connection with advertising, promoting, or selling any credit-related products or services.", "verbatim_text": "IT IS FUTHER ORDERED that, in connection with the advertising, promotion, offering for sale, or sale of any credit-related products, programs, or servkes, the Defendants are hereby permanently restrained and enjoined from makng any express or implied representation or omission of material fact that is false or misleading, in any manner, orally or in writing, to any consumer, including, but not limited to, any false or misleading representation that consumers who pay the Defendants a fee wi1 receive, or are likely to receive, an unsecured major credit card, such as a Visa or MasterCard credit card.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "III", "title": "Injunction Against Violating the Telemarketing Sales Rule", "category": "prohibition", "summary": "Defendants are permanently restrained from violating or assisting any person in violating any provision of the Telemarketing Sales Rule, 16 C.F.R. Part 310.", "verbatim_text": "IT IS FURTHER ORDERED that the Defendants are hereby permanently restrained and enjoined from violating or assisting any person in the violation of any provision of the Telemarketing Sales Rule, 16 C.P.R. (attached hereto as Appendix A), including, Par 310 et seq. but not limited to, the following:\n\nViolating or assisting any person in the violation of Section 31O.3(a)(2) of the Telemarketing Sales Rule, 16 C. 31O.3(a)(2), by misrepresenting, directly or by F.R. implication, any material aspect of the performance, efficacy, nature, or central characteristics of any goods or services that are the subject of a sales offer; and\n\nViolating or assisting any person in the violation of Section 310.4(a) of the Telemarketing Sa.les Rule, 16 c.P.R. ~ 31O. 4(a), by engaging in any abusive telemarketing act or practice.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Prohibition" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "V", "title": "Redress and Other Equitable Relief from the Canadian Defendants", "category": "affirmative_obligation", "summary": "Judgment of $9,066,434 is entered jointly and severally against the Canadian Defendants; they must pay $405,589.50 to the Commission within five business days of entry of the Order, with the remainder suspended upon timely payment.", "verbatim_text": "Judgment is entered jointly and severally against Quebec, Inc. , Mitchel Kastner, Corber, and Jason Kastner in the amount of $9,066,434; the Canadian Defendants shall pay the Commssion $405,589.50, on or before the fifth (51h ) business day following the date ofthe entry of this Order by wire transfer to the Commssion at Treasury ABA number: 021030004 (agency bank account -- via New York Federal Reserve Bank), Commssion s ALC number: 29000001 (agency location code).\n\nUpon timely makng the payment provided in this Paragraph, the remainder of the judgment shall be suspended.\n\nAll funds paid by the Canadian Defendants to the Commission pursuant to this Final Order may be deposited into a fund administered by the Commission or its agent to be used for equitable relief, including, but not limited to, consumer redress and any attendant expenses for the administration of any redress fund. In the event that direct redress to consumers is wholly or partially impracticable or funds remain after redress is completed, the Commssion may pay any remaining funds for such other equitable relief (including consumer infonnation remedies) as it determnes to be reasonably related to the Defendants ' practices as alleged in the complaint. Any funds not used for such equitable relief shaH be deposited into the United States Treasury as disgorgement. The Canadian Defendants shall have no right to challengethe Commission choice of remedies under this Paragraph.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "VI", "title": "Right to Enforce Suspended Judgment Against the Canadian Defendants", "category": "affirmative_obligation", "summary": "The Commission's agreement to suspend judgment is premised on the accuracy of the Canadian Defendants' sworn financial statements; if misrepresentation is found, the full $9,066,434 judgment becomes immediately due.", "verbatim_text": "The Commssion s agreement to this Final Order is expressly premised upon the financial conditions of Quebec, Inc., Mitchel Kastner, Corber, and Jason Kastner as represented in the sworn financial statements provided to the Commssion and dated December 19, 2003; December 22 2003; December 23 2003; December 24 2003; and November 17, 2004, any amendments thereto submitted to the Commission through the date of this Order, and any sworn testimony regarding assets given by any Canadian Defendant through the date of ths Order, which include material infonnation upon which the Commssion relied in negotiating and consenting to this Final Order. Quebec, Inc., Mitchel Kastner, Corber, and Jason Kastner state that those fina cial statements, any amendments thereto, and any sworn testimony regarding ths assets are complete and accurate representarions of their financial conditions as of the date of Order. The paries stipulate that the Commission s agreement to suspend the remainder of the 066,434 judgment is expressly conditioned on the truthfulness, accuracy, and completeness of the Canadian Defendants' sworn financial statements, any amendments thereto, and any sworn testimony regarding their assets. The parties further stipulate that the Commssion would not have agreed to suspend the remainder of the judgment if it had been aware that any such financial disclosure was not truthful, accurate, or complete. If, upon motion by the Commssion, this , . Court should find that Quebec, Inc., Mitchel Kastner, Corber, or Jason Kastner made a significant misrepresentation or omitted significant infonnation concerning their respective financial conditions, then the Court shall enter a modified judgment holding that any such defendant is liable to the Commission in the amount of $9,066,434, which Quebec, Inc., Mitchel Kastner, Corber, Jason Kastner, and the Commission stipulate, for the sole purpose of enforcement of this provision of the Order, is the amount of consumer injury caused by the Canadian Defendants. This amount, less the sum of payments made by any Defendant to the Commssion, shaH become immediately due and payable by any such Canadian Defendant, and interest computed at the rate prescribed under 28 U. 1961, as amended, shall immediately c. begin to accrue on the unpaid balance.\n\nQuebec, Inc. , Mitchel Kastner, Corber, and Jason Kastner agree that the facts as alleged in the Complaint filed in this action shall be taken as true for the purpose of any subsequent litigation filed by the Commssion to enforce its rights pursuant to this Order, , a nondischargeabi1ity complaint filed in any bankrptcy proceeding. including, but not limited to", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "VII", "title": "Redress and Other Equitable Relief from the Florida Defendants", "category": "affirmative_obligation", "summary": "Judgment of $9,066,434 is entered jointly and severally against the Florida Defendants; they must pay $9,600 to the Commission within five business days of entry of the Order, with the remainder suspended upon timely payment.", "verbatim_text": "Judgment is entered jointly and severaHy against Sun Spectrum, NACO, WWCI, Maren $9,066, the Florida Defendants shaH pay the , and Bascove in the amount of 434; Commssion $9,600, on or before the fifth (Sth) business day fol1owing the date of entr of this Order by wire transfer to the Commssion at Treasury ABA number: 021030004 (agency bank account -- via New York Federal Reserve Bank), Commssion s ALC number: 29000001 (agency location code).\n\nUpon timely making the payment provided in this Paragraph, the remainder of the judgment shall be suspended.\n\nAll funds paid by the Florida Defendants to the Commission pursuant to this Final - , Order may be deposited into a fund administered by the Commission or its agent to be used for equitable relief, including, but not limited to, consumer redress and any attendant expenses for the administration of any redress fund. In the event that direct redress to consumers is wholly or partially impracticable or funds remain after redress is completed, the Commssion may use any remaining funds for such other equitable relief (including consumer information remedies) as it detenrnes to be reasonably related to the Defendants' practices as alleged in the complaint. Any funds not used for such equitable relief shall be deposited into the United States Treasury as disgorgement. The Florida Defendants shall have no right to challenge the Commssion s choice of remedies under this Pargraph.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "VIII", "title": "Right to Enforce Suspended Judgment Against the Florida Defendants", "category": "affirmative_obligation", "summary": "The Commission's agreement to suspend judgment is premised on the accuracy of the Florida Defendants' sworn financial statements; if misrepresentation is found, the full $9,066,434 judgment becomes immediately due.", "verbatim_text": "The Commssion s agreement to this Final Order is expressly premised upon the financial conditions of Sun Spectrum, NACO, WWCI, Marten, and Bascove as represented in the sworn financial statements provided to the Commssion and dated December 17, 2003 December 20, 2003, arid September 10, 2004, any amendments thereto submitted to the Commission through the date of this Order, and any sworn testimony regarding assets given by any Florida Defendant though the date of this Order, which include material infonnation upon which the Commssion relied in negotiating and consenting to this Final Order. Sun Spectrum, NACO, WWCI, Martell, and Bascove state that those financial statements, any amendments thereto, and any sworn testimony regarding assets are complete and accurate representations of their financial conditions as of the date of this Order. The pares stipulate that the Commssion agreement to suspend the remainder of the $9 066,434 judgment is expressly conditioned on the truthfulness, accuracy, and completeness of the Florida Defendants' sworn financial statements, any amendments thereto, and any sworn testimony regarding their assets. The paries further stipulate that the COrnssion would not have agreed to suspend the remainder of the judgment if it had been aware that any such financial disclosure was not trthful, accurate, or complete. If, upon motion by the Commssion , this Court should find that Sun Spectrum, NACO, WWCI, Maren, or Bascove made a significant misrepresentation or omitted significant infonnation concerning their respective financial conditions, then the Court shan enter a modified judgment holding that any such defendant is liable to the Commission in the amount of $9,066,434, which Sun Spectrum, NACO , WWCI, Maren, Bascove, and the Commssion stipulate, for the sole purpose of enforcement of this provision of the Order, is the amount of consumer injury caused by the Florida Defendants. This amount, less the sum of payments made by any Defendant to the Commssion, shall become immediately due and payable by any such Florida Defendant, and interest computed at the rate prescribed under 28 U. c. 9 1961, as amended, shaH immediately begin to accrue on the unpaid balance.\n\nSun Spectrum, NACO, WWCI, Martell, and Bascove agree that the facts as this action shan be taken as true for the purpose of any alleged in the Complaint fied in subsequent litigation filed by the Commssion to enforce its rights pursuant to this Order, , a nondischargeability complaint filed in any bankrptcy proceeding. including, but not Jimited to", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "IX", "title": "Lifting of Asset Freeze", "category": "affirmative_obligation", "summary": "The asset freeze against all Defendants is lifted solely for the purpose of transferring funds to the FTC pursuant to the judgment paragraphs, and is dissolved upon transfer of all such funds.", "verbatim_text": "that the freeze against the assets of Quebec, Inc., Mitchel IT IS FURTHER ORDERED Kastner, Corber, Jason Kastner, Sun Spectrum, NACO, WWCI, Marten, and Bascove, pursuant to Section IV of the Stipulated Preliminar Injunction entered by this Court on Februar 5, 2004 shaH be lifted for the sole purpose of pursuant to Paragraphs V and transferrng funds to the FTC VI ofthis Final Order, and thereafter dissolved upon transfer of all such funds.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "X", "title": "Transfer of Customer Lists", "category": "prohibition", "summary": "Defendants are permanently restrained from selling, renting, leasing, transferring, or disclosing identifying information of any person who paid money to any Defendant for any credit-related product, program, or service.", "verbatim_text": "IT IS that the Defendants are hereby pennanently restrained FUTHER ORDERED and enjoined from selling, renting, leasing, transferrng, disclosing the name or otherwise address, telephone number, credit card number, bank account number, e-mail address, or other identifying infonnation of any person who paid any money to any Defendant for any credit­ that related product, program, or service at any time prior to entry of this Order; provided Defendants may disclose such identifying infoI1ation to a law enforcement agency or as required by any law, regulation, or court order or to any contractor or vendor of the Defendants for the purposes of biling Defendants ' own charges only.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XI", "title": "Acknowledgment of Receipt of Order by Defendants", "category": "acknowledgment", "summary": "All Defendants must submit a sworn statement to the Commission acknowledging receipt of the Order within five business days of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that within five (5) business days of receipt of this Order as entered by the Cour, Quebec, Inc., Mitchel Kastner, Corber, Jason Kastner, Sun Spectrm, NACO, WWCI, Marell, and Bascove each must submit to the Commission a truthful sworn statement acknowledging receipt of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XII", "title": "Distribution of Order by Defendants", "category": "acknowledgment", "summary": "For five years from entry of the Order, all Defendants must distribute copies of the Order to principals, officers, directors, managers, employees, agents, and representatives, and obtain signed acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "Quebec, Inc., Sun Spectrum NACO, and WWCI: Quebec, Inc., Sun Spectrum, NACO, and WWCI each must deliver a copy of this Order to all of their principals, officers, directors, and managers. Additionally, Quebec, Inc., Sun Spectrm, NACO, and WWCI each must deliver a copy of this Order to a11 of their employees, agents, and representatives having responsibilities with respect to the subject matter of this Order. For CUlTent personnel, Quebec Inc., Sun Spectrum, NACO, and WWCI each must deliver this Order within five (5) days after the date of service of this Order. For new personnel, Quebec , Inc., Sun Spectrm, NACO, and WWCI each must deJiver this Order prior to the date that the new personnel assumes his or her responsibilities.\n\nEntities for which Mitchel Kastner, Corber, Jason Kastner, Martell, or Bascove is a Control Person: For any business or other entity that Mitchel Kastner, Corber Jason Kastner, Marell, or Bascove controls, directly or indirectly, serves as an officer or director or in wilch Mitchel Kastner, Corber, Jason Kastner, Marell, or Bascove has a majority ownership interest, Mitchel Kastner, Corber, Jason Kastner, Martell, or Bascove must deliver a copy of this Order to all principals, officers, directors, and managers of that business or entity. Additionally, Mitchel Kastner, Corber, Jason Kastner, Marell, or Bascove must deliver copies of this Order to all employees, agents. and representatives of any such business or entity who engage in conduct related to the subject matter of this Order. For current personnel, Mitchel Kastner, Corber, Jason Kastner, Marten, and Bascove must deliver this Order within five (5) days after the date of service of this Order. For new personnel, Mitchel Kastner, Corber, Jason Kastner, Marten, and Bascove must deliver this Order prior to the date that the new personnel assumes his or her responsibilities.\n\nEntities for which Mitchel Kastner, Corber, Jason Kastner, Martell, or Bascove is an Employee or Non-Control Person: For any business or other entity that employs or contracts personal services from Mitchel Kastner, Corber, Jason Kastner, Marell, or Bascove and engages in conduct related to the subject matter of this Order, but is not controlled by Mitchel Kastner, Corber, Jason Kastner, MarteJl, or Bascove, Mitchel Kastner, Corber, Jason Kastner, Marell, or Bascove must deliver a copy of this Order to all principals and managers of such business or entity before becoming an employee or contractor.\n\nMitchel Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrm, NACO, WWCI, Martell , and Bascove must each secure a signed and dated statement acknowledging receipt of the Order, within thirty (30) days of delivery, from each person to whom the defendant is required to deliver a copy of the Order pursuant to this Paragraph.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XIII", "title": "Compliance Reporting by Defendants", "category": "compliance_reporting", "summary": "For five years from entry of the Order, Defendants must notify the Commission of changes in residence, employment, and corporate structure, and must file a sworn written compliance report 180 days after entry.", "verbatim_text": "For a period of five (5) years from the date of entry of this (1) Mitchel Kastner, Corber, Jason Kastner, Marell and Bascove shan each notify the Commssion of the foJlowing: (a) Any changes in the defendant s residence, mailng addresses, or telephone numbers, within ten (10) days of the date of such change;\n\n(b) Any changes in the defendant's employment status (including self­ shan include the name employment) within ten (10) days of the date of such change. Such notice and address of each business that the defendant is affiliated with, employed by, creates or forms, or performs services for; a statement of the nature of the business; and a statement of the defendant's duties and responsibilities in connection with the business or employment; or\n\n(c) Any changes in the defendant's name or use of any aliases or fictitious names;\n\n(2) Mitchel Kastner, Corber, Ja.son Kastner, and Quebec, Inc. shan each notify the Commssion of any changes in corporate structure to Quebec, Inc. or any other business entity that Mitchel Kastner, Corber, or Jason Kastner directly or indirectly controls or has an ownership interest in, that may affect compliance obligations arsing under this Order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the , or affiiate emergence of a successor entity; the creation or dissolution of a subsidiar, parent bankrptcy petition; or that engages in any acts or practices subject to this Order; the filing of a provided change in the corporate name or address, at least thirty (30) days prior to such change, that, with respect to any proposed change in the entity about which the defendant learns less than , defendant shan notify the thirty (30) days prior to the date such action is to take place Commssion as soon as is practicable after obtaining such knowledge; and\n\nSpectrm, NACO, and WWCI shan each notify the (3) Marten, Bascove, Sun Spectrum, NACO, or WWCI or any Commssion of any changes in corporate strcture to Sun other business entity that Marten or Bascove directly or indirectly control or has an ownership arsing under this Order, including but not interest in, that may affect compliance obligations limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor entity; the creation or dissolution of a subsidiary, parent, or affiliate banptcy petition; or a that engages in any acts or practices subject to this Order; the filing of a provided change in the corporate name or address, at least thirty (30) days prior to such change, lears less than that, with respect to any proposed change in the entity about which the defendant the thirty (30) days prior to the date such action is to take place, defendant shaH notify Commssion as soon as is practicable after obtaining such knowledge.\n\nOne hundred eighty (180) days after the date of entry of this Order Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrum, NACO, WWCI, Marell, and Bascove shal1 each provide a written report to the FfC, sworn to under penalty of perjury, setting forth in detail the manner and form in which they have complied and are complying with this Order. This report shall incJude, but not be limited to: (1) For Mitchel Kastner, Corber, Jason Kastner , Marell, and Bascove: (a) The then-current residence address, and an mailing addresses and telephone numbers of the defendant; (b) Al1 then-current employment and business addresses and telephone numbers of the defendant, and for each such employer or business: a description of the business activities of that employer or business and the title and responsibilties of the defendant with that employer or business; and (c) Any other changes required to be reponed pursuant to subparagraph A of this Section. (2) For Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc., Sun Spectrum NACO, WWCI, Maren, and Bascove: (a) A copy of each acknowledgment of receipt of this Order, obtained pursuant to Paragraph Xl; and (b) Any other changes required to be reported pursuant to subparagraph A of this Section.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XIV", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "For eight years from entry of the Order, all Defendants must create and retain specified business records including accounting records, personnel records, customer files, complaints, marketing materials, and compliance documentation.", "verbatim_text": "that, for a period of eight (8) years from the date of entry IT IS FURTHER ORDERED of this Order, Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrum, NACO, WWCI. Martell, and Bascove and their agents, employees, officers, corporations, successors, and assigns, and those persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby each restrained and enjoined, in connection with any business that Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc., Sun Spectrm, NACO, WWCI, Marell, or Bascove directly or indirectly manages, controls, or has a majority ownership interest in, from failing to create and retain the following records: Accounting records that reflect the cost of goods or services sold, revenues generated, and the disbursement of such revenues;\n\nPersonnel records accurately reflecting: the name, address , and telephone number of each person employed in any capacity by such business, including as an independent contractor; that person s job title or position; the date upon which the person commenced work; and the date and reason for the person s termination, if applicable;\n\nCustomer files containing the names, addresses, phone numbers, donar amounts paid, quantity of items or services purchased, and description of items or services purchased, to the extent such information is obtained in the ordinar course of business;\n\nComplaints and refund requests (whether received directly, indirectly or through any third pary) and any responses to those complaints or requests;\n\nCopies of all sales scripts, training materials, advertsements, or other marketing materials; and\n\nAll records and documents necessary to demonstrate full compliance with each provision of this Order, including but not limited to, copies of acknowledgments of receipt of this Order as required by Paragraph Xl of this Order and all reports submitted to the FTC pursuant to Paragraph xm of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XV", "title": "Authority to Monitor Compliance", "category": "monitoring", "summary": "The Commission is authorized to monitor compliance by all lawful means; Defendants must submit additional reports, produce documents, appear for deposition, and provide access to business locations within ten days of written notice.", "verbatim_text": "Within ten (10) days of receipt of written notice from a representative of the Commssion, Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrum, NACO, WWCI, Maren, and Bascove each shall submit additional written reports, sworn to under the penalty of perjury; produce documents for inspection and copying; appear for depositon; and/or agent of the Commssion with entr during normal business hours provide any representative or to any business location in such defendant s possession or direct or indirect control for inspection of the location and any documents or materials contained therein;\n\nIn addition, the Commssion is authorized to monitor compliance with this Order by all lawful means, including but not limited to the following: obtaining discovery from any person, without further leave of the Court, (1) using the procedures prescribed by Fed. R. Civ. P. 26-37 and 45;\n\n(2) using representatives posing as consumers or suppliers to: Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrum, NACO, WWCI, Maren, or Bascove; employees of Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc., Sun Spectrm, NACO, WWCI, Marell, or Bascove; or any other entity managed or controlled in whole or in par by Mitchel Kastner, Corber, Jason Kastner, Quebec, Inc. , Sun Spectrum, NACO, WWCI, Marell, or Bascove, without the necessity of identification or prior notice; and\n\nMjtehel Kastner, Corber, Jason Kastner, Quebec, Inc., Sun Spectrum, NACO, WWCI, Marell, and Bascove shall permt representatives of the Commssion to interview any employer, consultant, independent contractor, representative, agent, or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XVI", "title": "Fees and Costs", "category": "acknowledgment", "summary": "Each party to this Order agrees to bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "that each pary to this Order hereby agrees to bear its own IT IS FURTHER ORDERED costs and attorneys' fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XVII", "title": "Retention of Jurisdiction and Entry of Judgment", "category": "monitoring", "summary": "This Court retains jurisdiction of this matter to apply for further orders and directives, to enforce compliance, or to punish violations.", "verbatim_text": "that this Court shall retain jurisdiction of this matter for IT IS FURTHER ORDERED the purpose of enabling the pares 10 apply to the Court at any time for such further orders and directives as may be necessar or appropriate for the interpretation or modification ofthis Order, for the enforcement of compliance therewith, or for the punishment of violations thereof.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "XVIII", "title": "Complete Settlement", "category": "acknowledgment", "summary": "The FTC and Defendants consent to entry of the foregoing Order as a final judgment and full, complete, and final settlement of this action.", "verbatim_text": "and the Defendants, by their respective counsel, hereby consent to entry of the The FTC and foregoing Order which shall constitute a final judgment and order in this matter. The FTC the Defendants further stipulate and agree that the entry of the foregoing Order shall constitute a fun, complete and final settlement of this action.", "violation_type": "both", "statutory_topics": [ "TSR", "GLBA" ], "practice_areas": [ "Telemarketing", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.05_sun_spectrum_communications_organization", "company_name": "Sun Spectrum Communications Organization, Inc.", "date_issued": "2005-10-15", "year": 2005, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 13(b) and 19 of the FTC Act, 15 U.S.C. §§ 53(b) and 57(b); Telemarketing Sales Rule, 16 C.F.R. Part 310; Section 521 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6821", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/032-3032-sun-spectrum-communications-organization-inc-et-al", "docket_number": "03-8110-CIV-COHN/SNOW" }, { "provision_number": "III", "title": "Prohibition Against Misrepresentations to Consumers", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting, expressly or by implication, what users can achieve with the service, payment or cancellation terms, company policies, the likelihood a consumer has Covered Records, or any other material fact regarding Covered Records.", "verbatim_text": "18 A. What a user can do or achieve with the service;\n\nB. Payment, renewal, cancellation, or refund terms relating to the product 20 or service;\n\nC. Policies or practices regarding payments, renewals, cancellation, or 22 refunds;\n\nD. The extent to which, or the probability that any consumer may have 24 Covered Records; and\n\nE. Any other fact that is material to users concerning Covered Records or 26 any of the information therein, such as any material aspect of their accuracy, nature, 27 or characteristics; or any material restrictions, limitations, or conditions on users’ 28 ability to access, alter, use, correct, or delete them.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "VI", "title": "Ban on Negative Options", "category": "prohibition", "summary": "Defendants are permanently enjoined from advertising, marketing, promoting, or offering for sale any product or service with a Negative Option Feature.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, whether directly or through an 28 intermediary, are permanently restrained and enjoined from advertising, marketing, - 10 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 12 of 27 Page ID #:9607 1 promoting, or offering for sale any product or service with a Negative Option 2 Feature.", "violation_type": "both", "statutory_topics": [ "TSR" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "VII", "title": "Monetary Judgments and Partial Suspensions", "category": "affirmative_obligation", "summary": "Establishes monetary judgments against Corporate Defendant ($28,945,968) and Individual Defendant ($5,000,000), with payment schedules totaling $16,000,000 and $5,000,000 respectively, secured by a deed of trust on Individual Defendant's property; specifies conditions for suspension, reinstatement, and default.", "verbatim_text": "5 A. Judgment in the amount of Twenty-Eight Million Nine Hundred Forty- 6 Five, Nine Hundred Sixty-Eight Dollars ($28,945,968) is entered in favor of the 7 Plaintiff against Corporate Defendant, as monetary relief.\n\n8 B. Judgment in the amount of Five Million Dollars ($5,000,000) is entered 9 in favor of the Plaintiff against Individual Defendant, as monetary relief.\n\n13 1. Corporate Defendant must pay Two Million Dollars ($2,000,000) 14 to Plaintiff on or before January 15, 2022.\n\n15 2. Corporate Defendant must pay two (2) additional discrete 16 payments of One Million, One Hundred Sixty-Six Thousand, One Hundred and Sixty- 17 Six Dollars and sixty-six cents ($1,166,666.66) each, on or before each of the 18 following dates: 19 a. June 30, 2022; and 20 b. September 30, 2022;\n\n3. Corporate Defendant must pay one One (1) additional discrete 22 payment of One Million, One Hundred Sixty-Six Thousand, One Hundred and Sixty- 23 Six Dollars and sixty-eight cents ($1,166,666.68), on or before December 31, 2022;\n\n4. Corporate Defendant must pay twelve (12) additional discrete 25 payments of Eight Hundred and Seventy-Five Thousand Dollars ($875,000) each, on 26 or before each of the following dates: 27 a. March 31, 2023; 28 b. June 30, 2023; - 11 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 13 of 27 Page ID #:9608 1 c. September 30, 2023; 2 d. December 31, 2023; 3 e. March 31, 2024; 4 f. June 30, 2024; 5 g. September 30, 2024; 6 h. December 31, 2024; 7 i. March 31, 2025; 8 j. June 30, 2025; 9 k. September 30, 2025; and 10 l. December 31, 2025.\n\n11 5. All such payments must be made by electric fund transfer in 12 accordance with instructions provided by a representative of the Plaintiff. Written 13 confirmation of each wire transfer shall be delivered via email to Zachary A. Dietert, 14 Trial Attorney, Consumer Protection Branch, U.S. Department of Justice, 450 5th 15 Street, N.W. Suite 6400-South, Washington, DC 20530, Zachary.A.Dietert 16 @usdoj.gov. The wire transfer transmittal shall include the title of this litigation and 17 a reference to DJ #102-4025.\n\n1 8. Until such time that the total amount of Sixteen Million Dollars 2 ($16,000,000) is paid in full, Corporate Defendant is prohibited from paying any 3 dividends to any shareholders and is prohibited from increasing the salary or paying 4 bonuses or other form of financial compensation to any of Corporate Defendant’s 5 employees who were paid or to be paid an annual salary of $100,000.00 or more for 6 the years 2016 to the present, other than through annual Cost-of-Living Adjustments 7 at the rate approved by the Social Security Administration.\n\n11 1. Individual Defendant shall pay Three Hundred Thousand Dollars 12 ($300,000) to Plaintiff no later than December 15, 2021.\n\n13 2. Individual Defendant shall pay sixteen (16) additional discrete 14 payments of Two Hundred Ninety-Three Thousand, Seven Hundred and Fifty Dollars 15 ($293,750) each, on or before each of the following dates: 16 a. March 31, 2022; 17 b. June 30, 2022; 18 c. September 30, 2022; 19 d. December 31, 2022; 20 e. March 31, 2023; 21 f. June 30, 2023; 22 g. September 30, 2023; 23 h. December 31, 2023; 24 i. March 31, 2024; 25 j. June 30, 2024; 26 k. September 30, 2024; 27 l. December 31, 2024; 28 m. March 31, 2025; - 13 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 15 of 27 Page ID #:9610 1 n. June 30, 2025; 2 o. September 30, 2025; and 3 p. December 31, 2025.\n\n10 7. Individual Defendant shall cooperate fully with the Plaintiff and 11 be responsible for preparing, executing, and recording the necessary documents and 12 doing whatever else is reasonably necessary or desirable to perfect, evidence, and 13 effectuate the Plaintiff’s liens, security interests, and other protections granted herein. 14 Individual Defendant shall submit to the clerk’s office for recording all security 15 documents used to perfect the Plaintiff’s lien on the Collateral within fourteen (14) 16 days after entry of this Order, and shall deliver to the Plaintiff copies of such officially 17 recorded documents and a statement showing the outstanding balance owed on any 18 preexisting security deeds as of the date of entry of this Order within seven (7) days 19 after receipt of such documents.\n\n5. Individual Defendant further agrees that, as of the date on which 25 they sign this Order, they shall refrain from transferring, converting, encumbering 26 (including encumbering by failing to pay any taxes or assessments), selling, assigning, 27 or otherwise disposing of the Collateral, except with the express prior written 28 permission of counsel for the Plaintiff and for the purpose of satisfying Individual - 14 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 16 of 27 Page ID #:9611 1 Defendant’s obligation in Subsections VII.D.1-2, above, and the proceeds of any such 2 transaction shall be paid at settlement to the Plaintiff, provided, however, that this 3 limitation shall end with the completion of all payments listed in Subsections VII.D.1- 4 2, above.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "VIII", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Establishes ancillary monetary terms including relinquishment of asset claims, use of complaint facts in future proceedings, nondischargeability provisions, taxpayer ID submission, use of collected funds for consumer redress, and obligation to provide customer information for redress administration.", "verbatim_text": "14 A. Defendants relinquish dominion and all legal and equitable right, title, 15 and interest in all assets transferred pursuant to this Order and may not seek the return 16 of any assets.\n\n17 B. The facts alleged in the Complaint shall be taken as true, without further 18 proof, in any subsequent civil litigation by or on behalf of the Commission, including 19 in a proceeding to enforce its rights to any payment or monetary judgment pursuant 20 to this Order, such as a nondischargeability complaint in any bankruptcy case.\n\nD. Defendants acknowledge that their Taxpayer Identification Number 26 (Social Security Numbers or Employer Identification Number), which Defendants 27 must submit to the Plaintiff, may be used for collecting and reporting on any 28 delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.\n\n12 F. Defendants, Defendants’ officers, agents, employees, and attorneys, and 13 all other persons in active concert or participation with any of them, who receive actual 14 notice of this Order, whether acting directly or indirectly, are permanently restrained 15 and enjoined from directly or indirectly failing to provide sufficient customer 16 information to enable the Commission to efficiently administer consumer redress. 17 Defendants represent that they have provided this redress information to the 18 Commission. If a representative of the Commission requests in writing any 19 information related to redress, Defendants must provide it, in the form prescribed by 20 the Commission, within fourteen (14) days.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "IX", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendants must provide specified MyLife customer information to the Commission within 14 days and are permanently enjoined from disclosing or benefitting from customer information obtained prior to the Order, except for current customers if Defendants comply with Sections I–VI.", "verbatim_text": "A. Failing to provide within fourteen (14) days of the entry of the Order, in 27 a sortable format such as an Excel spreadsheet or its equivalent, the following 28 MyLife customer information for the period from November 1, 2016 to October 31, - 20 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 22 of 27 Page ID #:9617 1 2021: first and last name, telephone number, email address, mailing address, 2 subscription type, subscription duration, total paid, refund/chargebacks (if 3 applicable), and a unique customer ID sufficient to identify multiple subscriptions for 4 the same customer; and\n\n5 B. Disclosing, using, or benefitting from customer information, including 6 the name, address, telephone number, email address, Social Security number, other 7 identifying information, or any data that enables access to a customer’s account 8 (including a credit card, bank account, or other financial account), that any 9 Defendant obtained prior to entry of this Order in connection with the advertising, 10 marketing, promoting, offering for sale, or selling Covered Records or Covered 11 Information. Provided, however, that Defendants may use customer information for 12 any current customer if Defendants comply with Sections I through VI of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Notification" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "X", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit sworn acknowledgments of receipt of the Order and deliver copies to principals, employees, agents, and third-party data providers, obtaining signed acknowledgments from each recipient.", "verbatim_text": "16 A. Each Defendant, within seven (7) days of entry of this Order, must submit 17 to Plaintiff and the Commission an acknowledgment of receipt of this Order sworn 18 under penalty of perjury.\n\nB. For twenty (20) years after entry of this Order, Individual Defendant for 20 any business that Individual Defendant, individually or collectively with Corporate 21 Defendant, is the majority owner or controls directly or indirectly, and Corporate 22 Defendant must deliver a copy of this Order to: (1) all of each such business’s 23 principals, officers, directors, and LLC managers and members; (2) all of each such 24 business’s employees having managerial responsibilities for conduct related to the 25 subject matter of the Order and all agents and representatives who participate in 26 conduct related to the subject matter of the Order; (3) any business entity resulting 27 from any change in structure as set forth in Section XI titled Compliance Reporting; 28 and (4) any third party from whom any Defendant obtains Covered Information. - 21 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 23 of 27 Page ID #:9618 1 Delivery must occur within seven (7) days of entry of this Order for current personnel. 2 For all others, delivery must occur before they assume their responsibilities.\n\n3 C. From each individual or entity to which a Defendant delivered a copy of 4 this Order, that Defendant must obtain, within thirty (30) days, a signed and dated 5 acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit annual compliance reports to the Commission sworn under penalty of perjury, report material changes within 14 days, report bankruptcy filings within 14 days, and annually submit FCRA monitoring program documentation for 20 years.", "verbatim_text": "9 A. One year after entry of this Order, each Defendant must submit a 10 compliance report, sworn under penalty of perjury: 11 1. Each Defendant must: (a) identify the primary physical, postal, 12 and email address and telephone number, as designated points of contact that 13 representatives of the Commission and Plaintiff may use to communicate with 14 Defendant; (b) identify all of that Defendant’s businesses by all of their names, 15 telephone numbers, and physical, postal, email, and Internet addresses; (c) describe 16 the activities of each business, including but not limited to a description of any 17 products or services that involve Covered Information, and the involvement of any 18 other Defendant; (d) describe in detail whether and how that Defendant is in 19 compliance with each Section of this Order; and (e) provide a copy of each Order 20 Acknowledgment obtained pursuant to this Order, unless previously submitted to the 21 Commission.\n\n2. Additionally, Individual Defendant must: (a) identify all of his 23 telephone numbers and all physical, postal, email and Internet addresses, including all 24 residences; (b) identify all businesses in which he has involvement or an interest, 25 including any business for which the Individual Defendant performs services whether 26 as an employee or otherwise and any entity in which such Defendant has any 27 ownership interest; and (c) describe in detail the Individual Defendant’s involvement 28 in each such business, including title, role, responsibilities, participation, authority, - 22 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 24 of 27 Page ID #:9619 1 control, and any ownership.\n\n2 B. For twenty (20) years after entry of this Order, each Defendant must 3 submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days 4 of any change in the following: 5 1. Each Defendant must report any change in: (a) any designated 6 point of contact; or (b) the structure of any Corporate Defendant or any entity that 7 Defendant has any ownership interest in or controls directly or indirectly that may 8 affect compliance obligations arising under this Order, including: creation, merger, 9 sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in 10 any acts or practices subject to this Order.\n\n11 2. Additionally, Individual Defendant must report any change in: (a) 12 name, including aliases or fictitious name, or residence address; or (b) title or role in 13 any business activity, including any business for which Individual Defendant performs 14 services whether as an employee or otherwise and any entity in which Individual 15 Defendant has any ownership interest, and identify the name, physical address, and 16 any Internet address of the business or entity.\n\n17 C. Each Defendant must submit to the Commission notice of the filing of 18 any bankruptcy petition, insolvency proceeding, or similar proceeding by or against 19 such Defendant within fourteen (14) days of its filing.\n\n20 D. One year after entry of this Order, and each year thereafter for a period 21 of twenty (20) years from entry of this Order, each Defendant must submit to the 22 Commission all documentation required under Subsection II.C of this Order.\n\nF. Unless otherwise directed by a Commission representative in writing, all - 23 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 25 of 27 Page ID #:9620 1 submissions to the Commission pursuant to this Order must be emailed to 2 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 3 Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade 4 Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject 5 line must begin: “United States v. MyLife.com, Inc. and Jeffrey Tinsley.”", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XII", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create and retain specified records for 20 years after entry of the Order, retaining each record for five years, covering accounting, personnel, customer files, complaints, marketing materials, training materials, and compliance documentation.", "verbatim_text": "10 A. Accounting records showing the revenues generated from all products or 11 services sold, and the disbursement of such revenues; 12 B. Personnel records showing, for each Person providing services, whether\n\n13 as an employee or otherwise, that Person’s: name; addresses; telephone numbers; job 14 title or position; dates of service; and (if applicable) the reason for termination;\n\nC. Customer files containing the names, addresses, telephone numbers, 16 dollar amounts paid, quantity of products or services purchased, and description of 17 products or services purchased, to the extent such information is obtained in the 18 ordinary course of business;\n\nD. Records of all complaints and refund requests concerning the subject 20 matter of the Order, whether received directly or indirectly, such as through a third 21 party, and any response to those complaints or requests;\n\nE. All sales or customer service scripts, form letters or emails, 23 advertisements, or other marketing materials;\n\nF. All employee manuals and training materials concerning the subject 25 matter of the Order;\n\nG. All records necessary to demonstrate full compliance with each Section 27 of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XIII", "title": "Annual Certifications", "category": "compliance_reporting", "summary": "Starting one year after issuance, Individual Defendant and Corporate Defendant must each annually certify to the Commission that Order requirements have been established, implemented, and maintained, and that no uncorrected or undisclosed material noncompliance exists.", "verbatim_text": "3 A. One year after the issuance date of this Order, and each year thereafter, 4 for any Covered Business that Individual Defendant is a majority owner or controls, 5 directly or indirectly, Individual Defendant must provide the Commission with a 6 certification that: (1) the Covered Business has established, implemented, and 7 maintained the requirements of this Order; and (2) Individual Defendant is not aware 8 of any material noncompliance that has not been (a) corrected or (b) disclosed to the 9 Commission. The certification must be based on the personal knowledge of the 10 Individual Defendant, or subject-matter experts upon whom the Individual Defendant 11 relies in making the representation.\n\n12 B. One year after issuance date of this Order, and each year thereafter, 13 Corporate Defendant must provide the Commission with a certification from a senior 14 officer or manager that: (1) Corporate Defendant has established, implemented, and 15 maintained the requirements of this Order; and (2) Corporate Defendant is not aware 16 of any material noncompliance that has not been (a) corrected or (b) disclosed to the 17 Commission. The certification must be based on the personal knowledge of the senior 18 officer or manager, or subject-matter experts upon whom the senior corporate manager 19 or senior officer reasonably relies in making the certification.\n\nC. Unless otherwise directed by a Commission representative in writing, 21 submit all annual certifications to the Commission pursuant to this Order via email to 22 DEBrief@ftc.gov or by overnight courier (not the U.S. Postal Service) to Associate 23 Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 24 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: 25 “United States v. MyLife.com, Inc. and Jeffrey Tinsley.”", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XIV", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendants' compliance through written requests for reports, depositions, document production, direct communications with Defendants' personnel, and undercover methods including posing as consumers or suppliers.", "verbatim_text": "1 A. Within fourteen (14) days of receipt of a written request from a 2 representative of the Commission or Plaintiff, each Defendant must: submit 3 additional compliance reports or other requested information, which must be sworn 4 under penalty of perjury; appear for depositions; and produce documents for 5 inspection and copying. The Commission and Plaintiff are also authorized to obtain 6 discovery, without further leave of court, using any of the procedures prescribed by 7 Federal Rules of Civil Procedure 29, 30 (including remote video or telephonic 8 depositions), 31, 33, 34, 36, 45, and 69.\n\n9 B. For matters concerning this Order, the Commission and Plaintiff are 10 authorized to communicate directly with each Defendant. Defendant must permit 11 representatives of the Commission and Plaintiff to interview any employee or other 12 Person affiliated with any Defendant who has agreed to such an interview. The Person 13 interviewed may have counsel present.\n\n14 C. The Commission and Plaintiff may use all other lawful means, including 15 posing, through its representatives as consumers, suppliers, or other individuals or 16 entities, to Defendants or any individual or entity affiliated with Defendants, without 17 the necessity of identification or prior notice. Nothing in this Order limits the 18 Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the 19 FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XV", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "21 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter 22 for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" } ] }