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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
BUSINESS COMMISSION COMPLAINT FEDERAL TRADE REPRESENTATION BUSINESS VENTURE DISCLOSURE ADVERTISEMENT SALE CONSUMER ENDORSEMENT ACT COMMERCE PURPOSES RESPONDENT JEANETTE DOUGLASS USER TESTIMONIALS VIOLATIONS CONSENT TAPE RECORDING AUDIO CASSETTE EMPLOYMENT EVIDENCE ORDINARY CONSUMER AUTOMATIC TELEPHONE DIALING TELEPHONE DIALING SYSTEM DIRECTORS PROMOTION TERMINATE |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
Commissioners: Robert Pitofsky
Mary L. Azcuenaga
Janet D. Steiger
Roscoe B. Starek, III
Christine A. Varney
)
In the Matter of )) DOCKET NO.
JEANETTE L. DOUGLASS, )
individually and as an officer and ) DECISION
director of Computer Business Services, Inc. )
)
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 of complaint which the Chicago Regional Office 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 respondent, her attorney, and counsel for the Commission having thereafter executed
an agreement containing a consent order, an admission by the respondent of all the jurisdictional
facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement
for settlement purposes only and does not constitute an admission by respondent that the law has
been violated as alleged in such complaint, 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 has violated the said Act, and that 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 sixty (60) days, and no comments
having been filed thereafter by interested parties pursuant to §2.34 of its Rules, the Commission
hereby issues its complaint, makes the following jurisdictional findings and enters the following
order:
1. Respondent Jeanette L. Douglass is an officer and director of Computer Business
Inc. Her principal office or place of business is at 19348 Flippen Rd., Westfield, Indiana 46074.
2. The acts and practices of the respondent alleged in this complaint have been in or
affecting commerce, as "commerce" is defined in the Federal Trade Commission Act.
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2
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CONSENT AGREEMENT
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EXTRACTED KEY WORDS
BUSINESS REPRESENTATION COMPLAINT FEDERAL TRADE COMMISSION CBSI CONSENT ORDER JEANETTE DOUGLASS COMPUTER BUSINESS SERVICES ACTS AGREEMENT LAW OWNERS PRACTICES BUSINESS VENTURES ADVERTISEMENTS CONSUMERS DRAFT COMPLAINT AUTOMATIC TELEPHONE DIALING PARAGRAPH ENDORSEMENTS PROMOTIONAL MATERIALS TELEPHONE DIALING SYSTEM WESTFIELD PRINCIPAL OFFICE ORDER ENTERED PURSUANT PUBLIC RECORD DISSEMINATION SUCCESSFUL |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
)
In the Matter of ) FILE NO.
)
JEANETTE L. DOUGLASS, ) AGREEMENT
individually and as an officer and director )
of Computer Business Services, Inc., ) CONSENT ORDER
)
The Federal Trade Commission has conducted an investigation of certain acts and
practices of Jeanette L. Douglass, individually and as an officer and director of Computer
Business Services, Inc. ("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 Jeanette L. Douglass, individually, and
counsel for the Federal Trade Commission that:
1. Proposed respondent Jeanette L. Douglass is an officer and director of Computer Business
Services, Inc. and resides at 19348 Flippen Rd., Westfield, Indiana 46074. Her principal office or
place of business is also at 19348 Flippen Rd., Westfield, Indiana 46074.
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
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 sixty (60)
days, and information about it publicly released. The Commission thereafter may either
1
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
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3
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COMPLAINT
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EXTRACTED KEY WORDS
OWNERS BUSINESS REPRESENTATION CONCERT RESPONDENT MATERIALS ADVERTISEMENTS PARAGRAPH ORDINARINESS SUCCESSFUL HOME-BASED BUSINESS VENTURES CONSUMERS REPRESENTATION SET FEDERAL TRADE COMMISSION ACTS PROFIT REASON PRACTICES OWNER ENDORSEMENTS IMPLICATION PROMOTIONAL MATERIALS EXHIBIT INCOME TRUTH MISLEADING EARNING DIALING UNATTENDED MODE EXPERIENCES |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
__________________________________________ )
In the Matter of )
)
JEANETTE L. DOUGLASS, )
individually and as an officer and ) DOCKET
director of Computer Business Services, Inc.)
__________________________________________)
COMPLAINT
The Federal Trade Commission, having reason to believe that Jeanette L. Douglass,
individually and as an officer and director of Computer Business Services, Inc.("CBSI"), has
violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission
that this proceeding is in the public interest, alleges:
1. Respondent Jeanette L. Douglass is an officer and director of CBSI. Individually or in
concert with others, she formulates, directs, controls, or participates in the policies, acts, or
practices of the corporation, including the acts or practices alleged in this complaint. Her
principal office or place of business is at 19348 Flippen Rd., Westfield, Indiana 46074.
2. Respondent, in concert with CBSI, has advertised, offered for sale, sold, and
to the public home-based business ventures. Prospective consumers who purchase home-based
business ventures from CBSI come to be known by the company as "Center Owners." A "center"
ordinarily consists of computer hardware, software, training manuals, marketing materials, and
available technical assistance which, together, are represented to enable the owner to create
products and services that can be resold profitably to the general public.
3. Beginning no later than April 1988, and continuing through the present, respondent, in
concert with CBSI, has disseminated or has caused to be disseminated magazine, newspaper and
postcard advertisements, including but not necessarily limited to the attached Exhibit A, to induce
consumers nationwide to call a toll-free number to order a free information kit. Respondent, in
concert with CBSI, represents through these advertisements that consumers can expect to earn
$4,000 per month using CBSI's "proven turnkey business." Exhibit A.
4. Respondent, in concert with CBSI, has also disseminated or has caused to be disseminated
advertisements for home-based business ventures through commercial online services, including,
but not limited to, Compuserve and America Online. Respondent, in concert with CBSI,
represents through these advertisements that consumers can expect to earn $4,000 per month
through CBSI's home-based business ventures. Exhibit B.
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