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1
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SWINDLE STATEMENT
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EXTRACTED KEY WORDS
SETTLEMENT AGREEMENT RELIEF COMMISSION COMPLAINT DEFENDANT ADVERTISING BALDNESS CURE LAW VIOLATIONS SALE FTC ALLEGES REPRESENTATIONS PARTICIPATING BUSINESS HAIR PREVENTION PROVISIONS EMPOWER CONTEMPT TELEMARKETING MARKETING FRANCHISES REASON REGULATION CLUB CONTEMPT ACTION STRETCHES AUTHORITY CONGRESS |
Dissenting Statement of Commissioner Orson Swindle
in FTC v. Jacqueline Sable, File No. X980012
_________________________________________________________________
The Commission's complaint in this matter alleges that the defendant
violated Section 5 of the FTC Act by making false and unsubstantiated
representations in radio infomercials advertising a purported baldness
cure. The proposed settlement agreement contains extremely strong
injunctive relief, including a ban on participating in any business
involving hair loss prevention, hair growth, or baldness treatments.
Most of the relief in the settlement is without question necessary and
appropriate. I applaud the strong relief obtained in this case. On the
other hand, several provisions are unrelated to the unlawful conduct
alleged in the complaint or would empower the Commission to seek
contempt sanctions for violations of another governmental entity's
laws. These provisions are so overreaching that I cannot vote to
accept this settlement.
First, the settlement agreement prohibits violations of the
Commission's Telemarketing Sales Rule, deceptive practices in the
marketing of franchises and business ventures, and violations of the
Commission's Franchise Rule. None of this relief is reasonably related
to preventing the defendant from deceptively advertising baldness
cures or engaging in similar law violations. If there is sufficient
information to give the Commission reason to believe that she engaged
or is likely to engage in other types of law violations, then we
should seek leave to amend the complaint to establish a basis for
accepting relief that addresses those violations.
Second, the settlement agreement broadly prohibits the defendant, in
connection with the manufacturing, labeling, advertising, promoting,
marketing, offering for sale, sale or distribution of any product or
service, from "making any representation . . . that does not comply
with any applicable rule or regulation established by the Food and
Drug Administration" and from "conducting or participating in any
telemarketing solicitation without compliance with all applicable
federal and state registration and bond requirements." We should not
ask a federal court to empower us to enforce another agency's
regulations with the club of a contempt action. To do so stretches far
beyond the authority given to us by Congress.
_________________________________________________________________
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2
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STIPULATED ORDER
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EXTRACTED KEY WORDS
FEDERAL TRADE COMMISSION PERMANENT INJUNCTION COURT FTC ACT STIPULATED ORDER JUDGEMENT ENTRY BUSINESS COMPLAINT MATTER SALE REPRESENTATIVES PURSUANT PLAINTIFF UNITED STATES DISTRICT EQUITABLE RELIEF VIOLATIONS FRANCHISE MATERIALS COMPLIANCE EMPLOYEES MARKETING PROPOSED CHANGE ADVERTISING EARNINGS CLAIM SUBSIDIARIES MISREPRESENTING IMPLICATION JUDGE GEORGE |
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
____________________________________
)
FEDERAL TRADE COMMISSION, )
Plaintiff, )
)
v. ) Civil Action No 98 C 0170
)
)
JACQUELINE SABAL, ) Judge George W. Lindberg
a.k.a. JACQUELINE SABLE ) Magistrate Ronald A. Guzman
individually, )
Defendant. )
____________________________________)
STIPULATED ORDER FOR PERMANENT INJUNCTION AND
FINAL JUDGMENT AGAINST JACQUELINE SABAL
Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), has
filed a complaint for a permanent injunction and other equitable
relief in this matter, pursuant to Section 13(b) of the Federal Trade
Commission Act ("FTC Act"), 15 U.S.C. §§ 53(b), charging defendant
Jacqueline Sabal with violations of Sections 5 and 12 of the FTC Act,
15 U.S.C. §§ 45 and 52. The Commission, by and through its counsel,
and defendant Jacqueline Sabal have agreed to the entry of this
Stipulated Order for Permanent Injunction and Final Judgment by this
Court in order to resolve all matters of dispute between them in this
action without trial or adjudication of any issue of law or fact
herein.
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3
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COMPLAINT
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EXTRACTED KEY WORDS
FTC ACT SABLE HAIR FARMING RELIEF HAIR FARMING SYSTEM COURT FEDERAL TRADE COMMISSION ADVERTISEMENT DISTRICT PRACTICES VIOLATIONS HAIR LOSS REPRESENTATIONS DECEPTIVE ACTS AFFECTING COMMERCE COMPLAINT PLAINTIFF FALSE ADVERTISEMENT UNITED STATES INJUNCTIVE RELIEF UNFAIR DISSEMINATION CONSUMERS PARAGRAPH REPRESENTATIONS SET RADIO INFOMERCIALS SCALP RELIEVE REVERSE GROWTH |
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
V.
JACQUELINE SABAL, aka JACQUELINE SABLE individually,
Defendant.
Civil Action No
COMPLAINT FOR INJUNCTIVE AND OTHER EQUITABLE RELIEF
Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), for
its complaint alleges as follows:
1. The Commission brings this action under section 13(b) of the
Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), to secure
preliminary and permanent injunctive relief, rescission of contracts,
restitution, disgorgement, and other equitable relief for defendant's
unfair and deceptive acts and practices in violation of Sections 5(a)
and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52.
JURISDICTION AND VENUE
2. This Court has jurisdiction over this matter under 28 U.S.C.
1331, 1337(a), and 1345, and under 15 U.S.C. §§ 45(a)(1) and 53(b).
3. Venue in the United States District Court for the Northern District
of Illinois is proper under 28 U.S.C. §§ 1391(b) and (c) and 15 U.S.C.
§ 53(b).
PLAINTIFF
4. Plaintiff, the Federal Trade Commission, is an independent agency
of the United States Government created by statute. 15 U.S.C. § 41 et
seq. The Commission is charged, inter alia, with enforcement of
Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52.
Section 5(a) of the FTC Act prohibits unfair or deceptive acts or
practices in or affecting commerce. 15 U.S.C. § 45(a). Section 12 of
the FTC Act prohibits the dissemination or the causing to be
disseminated of any false advertisement in order to induce the
purchase of food, drugs, devices, or cosmetics. The Commission is
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