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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE COMMISSION RESPONDENT FANBUZZ ACT CONSUMER VIOLATE SUCCESSORS TEXTILE AGREEMENT JURISDICTION PROVISIONS MAIL ORDER TERMINATE APPEALING COMPLIANCE RULING PRACTICES THEREAFTER CONSUMER PROTECTION CONSENT JURISDICTIONAL FACTS MATTER OFFICERS PROCEEDING AGENTS REPRESENTATIVES EMPLOYEES PURSUANT |
012 3151
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:
Timothy J. Muris, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
Thomas B. Leary
In the Matter of
FANBUZZ, INC., a corporation.
DOCKET NO. C-4026
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondent named in the caption
hereof, and the respondent having been furnished thereafter with a
copy of a draft complaint which the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which,
if issued by the Commission, would charge respondent with violations
of the Federal Trade Commission Act and the Textile Fiber Products
Identification Act; and
The respondent and counsel for the Commission having thereafter
executed an agreement containing a consent order, and admission by the
respondent of all the jurisdictional facts set forth in the draft
complaint, a statement that the signing of said agreement is for
settlement purposes only and does not constitute an admission by
respondent that the law has been violated as alleged in such
complaint, or that the facts as alleged in such complaint, other than
jurisdictional facts, are true, and waivers and other provisions as
required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondent violated
the said Acts, and that a complaint should issue stating its charges
in that respect, and having thereupon accepted the executed consent
agreement and placed such agreement on the public record for a period
of thirty (30) days, now in further conformity with the procedure
prescribed in Section 2.34 of its Rules, the Commission hereby issues
its complaint, makes the following jurisdictional findings, and enters
the following order:
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2
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COMPLAINT
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EXTRACTED KEY WORDS
FEDERAL TRADE COMMISSION TEXTILE RESPONDENT VIOLATING ALLEGES INTERNET CATALOG SALE SOLD PRACTICES COMPLAINT AFFECTING COMMERCE FANBUZZ SEQ MINNESOTA ONLINE SHOPPING SERVICE FIBER PRODUCTS IDENTIFICATION PROCEEDING PRINCIPAL OFFICE BUSINESS BREN ROAD EAST MINNETONKA INTERNET SELLER CLOTHING DISCLOSING REGULATIONS UNFAIR DECEPTIVE ACTS DONALD CLARK |
012 3151
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FANBUZZ, INC., a corporation. DOCKET NO. C-
COMPLAINT
The Federal Trade Commission, having reason to believe that FanBuzz,
Inc. ("respondent"), has violated the provisions of the Federal Trade
Commission Act, 15 U.S.C. § 41 et seq., and the Textile Fiber Products
Identification Act, 15 U.S.C. § 70 et seq. ("Textile Act"), and it
appearing to the Commission that this proceeding is in the public
interest, alleges:
1. Respondent is a Minnesota corporation with its principal
office or place of business at 10729 Bren Road East,
Minnetonka, Minnesota 55343.
2. Respondent is an Internet seller of clothing for men and
women. Respondent has advertised, offered for sale, sold, and
distributed to the public textile products subject to the
requirements of the Textile Act.
3. The acts and practices of respondent alleged in this
complaint have been in or affecting commerce, as "commerce" is
defined in Section 4 of the Federal Trade Commission Act.
4. Respondent has offered for sale and sold, by means of an
online shopping service or Internet catalog, textile products
subject to the requirements of the Textile Act.
5. Respondent has offered for sale and sold, by means of an
online shopping service or Internet catalog, textile products
subject to the requirements of the Textile Act, without
disclosing in its product descriptions whether such products
were made in the U.S.A., imported, or both, thus violating 15
U.S.C. § 70b(i), and implementing regulations in 16 C.F.R.
§ 303.34.
6. The acts and practices of respondent as alleged in this
complaint constitute unfair or deceptive acts or practices in
or affecting commerce in violation of Section 5(a) of the
Federal Trade Commission Act, 15 U.S.C. § 45(a).
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3
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AGREEMENT
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EXTRACTED KEY WORDS
COMPLAINT COMMISSION PROPOSED RESPONDENT AGREEMENT FEDERAL TRADE COMMISSION FANBUZZ DRAFT COMPLAINT ACCEPTANCE VIOLATION SUCCESSORS CONSUMERS CONSENT ORDER ACTS REPRESENTATIVES OFFICERS FACTS PURSUANT PROVISIONS MAIL ORDER TERMINATE APPEALING CONSUMER PROTECTION RULING PRACTICES COUNSEL LAW PUBLIC RECORD PROCEEDING NOTIFY |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FANBUZZ, INC., a corporation.
FILE NO. 012 3151
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of FanBuzz, Inc., a corporation ("proposed
respondent"). Proposed respondent, having been represented by counsel,
is willing to enter into an agreement containing a consent order
resolving the allegations contained in the attached draft complaint.
Therefore,
IT IS HEREBY AGREED by and between FanBuzz, Inc., by its duly
authorized officer, and counsel for the Federal Trade Commission that:
1. Proposed respondent is a Minnesota corporation with its
principal office or place of business at 10729 Bren Road East,
Minnetonka, Minnesota 55343.
2. Proposed respondent admits all the jurisdictional facts set
forth in the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain
a statement of findings of fact and conclusions of law;
and
c. All rights to seek judicial review or otherwise to
challenge or contest the validity of the order entered
pursuant to this agreement.
4. This agreement shall not become part of the public record of
the proceeding unless and until it is accepted by the
Commission. If this agreement is accepted by the Commission,
it, together with the draft complaint, will be placed on the
public record for a period of thirty (30) days and information
about it publicly released. The Commission thereafter may
either withdraw its acceptance of this agreement and so notify
proposed respondent, in which event it will take such action as
it may consider appropriate, or issue and serve its complaint
(in such form as the circumstances may require) and decision in
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4
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ANALYSIS
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EXTRACTED KEY WORDS
PROPOSED CONSENT ORDER COMMISSION TEXTILE PRODUCTS AGREEMENT PUBLIC RECORD SALE INTERNET CATALOG PRODUCTS IDENTIFICATION ACT COMPLIANCE CONSUMERS FEDERAL TRADE COMMISSION COMPLAINT VIOLATIONS SEQ TEXTILE FIBER PRODUCTS FIBER PRODUCTS IDENTIFICATION DISCLOSE ISSUANCE MAIL ORDER COMPANY OFFICIALS EMPLOYEES NOTIFY AFFECT COMPLIANCE OBLIGATIONS COMPLIANCE REPORTS PROVISION WHEREBY ABSENT TERMINATES PURPOSE INTERPRETATION |
012 3151
Analysis of Proposed Consent Order to Aid Public Comment
_________________________________________________________________
The Federal Trade Commission has accepted, subject to final approval,
an agreement to a proposed consent order from respondent FanBuzz, Inc.
The proposed consent order has been placed on the public record for
thirty (30) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
This matter concerns practices related to the sale of textile products
by means of an Internet catalog. The Commission's complaint charges
that respondent violated the Federal Trade Commission Act, 15 U.S.C.
§ 41 et seq., and the Textile Fiber Products Identification Act, 15
U.S.C. § 70 et seq., by failing to disclose in its Internet catalog
whether products offered for sale were made in the United States,
imported, or both.
Part I of the proposed consent order prohibits future violations of
the Textile Fiber Products Identification Act and Commission rules and
regulations, found at 16 C.F.R. Part 303, implementing the
requirements of the statute.
Part II of the proposed order requires the respondent, for five years
after the date of issuance of the Order, to maintain records
demonstrating compliance with the Order, including: (a) copies of mail
order catalogs and mail order promotional materials, as defined in 16
C.F.R.§ 303.1(u), that offer textile products for direct sale to
consumers; and (b) complaints and other communications with consumers,
government agencies, or consumer protection organizations, pertaining
to country-of-origin disclosures for textile products.
Part III of the proposed order requires the respondent to distribute
copies of the order to certain company officials and employees. Part
IV of the proposed order requires the respondent to notify the
Commission of any change in the corporation that may affect compliance
obligations under the order. Part V of the proposed order requires the
respondent to file one or more compliance reports. Part VI of the
proposed order is a provision whereby the order, absent certain
circumstances, terminates twenty years from the date of issuance.
The purpose of this analysis is to facilitate public comment on the
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