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1
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EXHIBITS A-I
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EXTRACTED KEY WORDS
EXHIBIT DOWNLOAD REBATE RECOMMEND INTERNET INSTALL ICON WINDOWS LIMITATIONS UNITED STATES COMPLEXITY ONLINE FIT DISK FOLDERS CRYPTOGRAPHY CONTROLS ADMINISTRATION ACT FORERGN REGULAR AVAIIABIE NATIONWIDE JUNO FREE INTERNET LEXMARK CD-ROM REBATE CODE CERTIFICATE EXPIRATION EXHIBIT G-I |
I
/
100%
off .
Exhibit A
f 1
Edit FeaNres Optjons Ad@isements E_m't Help
Folder: /Inbox There
From I Subject
*
Get New Mail 1
Address Book 1
Exhibit B-l
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2
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DECISION & ORDER
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EXTRACTED KEY WORDS
CONSUMERS CHARGES FEDERAL TRADE COMMISSION COMPLAINT ELECTRONIC MAIL ONLINE SERVICE INTERNET SUBSCRIBER SALE TRADE COMMISSION ACT AGREEMENT PURPOSES REIMBURSEMENT ADVERTISEMENT DISCLOSURE PROMOTION CONNECTION SUBPART THEREAFTER CONSUMER PROTECTION JURISDICTIONAL FACTS ADVERTISING DISTRIBUTION INTERNET ACCESS SERVICE REPRESENTATION SUCCESSORS HYPERLINK LOCAL TELEPHONE ENVELOPE TRANSMITTING ATTACHMENT |
002 3061
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
DECISION & ORDER
JUNO ONLINE SERVICES, INC., DOCKET NO. C-4016
a corporation.
The Federal Trade Commission having initiated an investigation of certain acts and practices of
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 the respondent
with violation of the Federal Trade Commission Act; and
The respondent, its attorneys, and counsel for the Commission having thereafter executed an
agreement containing a consent order, an admission by respondent of all the jurisdictional facts
in the draft complaint, a statement that the signing of said agreement is for settlement purposes
does not constitute an admission by respondent that the law has been violated or that the facts, as
alleged in the complaint, other than jurisdictional facts, are true; and
The Commission having considered the matter and having determined that it had reason to believe
that the respondent has violated the Act, and that a complaint should issue stating its charges in
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 § 2.34 of its Rules, the Commission hereby issues its complaint, makes the following
jurisdictional finding and enters the following order:
1. Proposed respondent Juno Online Services, Inc. is a Delaware corporation with its principal
Page 1 of 15
office or place of business at 1540 Broadway, New York, NY 10036.
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3
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COMPLAINT 2
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EXTRACTED KEY WORDS
JUNO RESPONDENT ADVERTISEMENTS PREMIUM WEB SERVICE PROMOTIONS ELECTRONIC MAIL CONSUMERS EXHIBIT FEES FEDERAL TRADE COMMISSION TRADE COMMISSION ACT REBATE COST CD-ROM PROMOTIONAL MATERIALS MONTHLY CHARGES REPRESENTATION DECEPTIVE PRACTICES JUNO ONLINE SERVICES INSTALLATION SOFTWARE REBATE PROGRAM FREE TRIAL PERIOD LOCAL ACCESS TELEPHONE REGISTERS CONSUMERS NUMEROUS INSTANCES UNITED STATES CONNECTION CREDIT CARD RECOMMENDS |
002 3061
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
JUNO ONLINE SERVICES, INC., DOCKET NO. C-4016
a corporation.
COMPLAINT
The Federal Trade Commission, having reason to believe that Juno Online Services, Inc., a
corporation ("respondent"), 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 Juno Online Services, Inc. is a Delaware corporation with its principal office or
business at 1540 Broadway, New York, NY 10036.
2. Respondent has developed, advertised, offered for sale, sold and distributed to the public free
electronic mail and Internet access services, including Juno Basic electronic mail service and Juno
Web service, as well as fee-based electronic mail and Internet access products and services,
Juno Gold electronic mail service and Juno Premium Web service. Respondent underwrites the cost of
its free and reduced fee products and services by directing third-party advertisements and
to its subscribers. Respondent has offered for sale, sold and distributed such products and
through its Internet Web site www.juno.com, a toll-free telephone number and CD-ROM promotional
disks distributed to consumers.
3. The acts and practices of respondent alleged in this complaint have been in or affecting
as "commerce" is defined in Section 4 of the Federal Trade Commission Act.
4. Respondent has disseminated or has caused to be disseminated advertisements and promotional
materials for its electronic mail and Internet access services, including Juno Basic electronic mail
service, Juno Gold electronic mail service, Juno Premium Web service and Juno Free Web service; and
also has disseminated or caused to be disseminated advertisements and promotional materials for
rebate programs conditioned on subscription to its fee-based Internet access services, which were
offered in connection with the promotion and sale of various third party computer and
products, including, but not limited to, computers, printers, MP3 players and software programs.
These advertisements and promotional materials, including, but not limited to, Exhibits A through E,
which were disseminated through various means, including the Internet, electronic mail, toll-free
telephone numbers, print, television, radio and direct mail, contain the following statements and
depictions:
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4
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COMPLAINT 1
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EXTRACTED KEY WORDS
INTERNET ACCESS JUNO RESPONDENT PREMIUM WEB SERVICE PROMOTIONS ADVERTISEMENTS ELECTRONIC MAIL CD-ROM EXHIBIT FEES FEDERAL TRADE COMMISSION TRADE COMMISSION ACT TOLL-FREE TELEPHONE REBATE WEB SITE PROMOTIONAL MATERIALS MONTHLY CHARGES REPRESENTATION SUBSCRIBERS DECEPTIVE PRACTICES FEE-BASED ELECTRONIC MAIL CD-ROM PROMOTIONAL DISKS INSTALLATION SOFTWARE REBATE PROGRAM FREE TRIAL PERIOD LOCAL ACCESS TELEPHONE REGISTERS CONSUMERS NUMEROUS INSTANCES JUNO ONLINE SERVICES |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
)
In the Matter of ))
JUNO ONLINE SERVICES, INC., ) DOCKET NO.
a corporation. ))
)
COMPLAINT
The Federal Trade Commission, having reason to believe that Juno Online Services, Inc., a
corporation ("respondent"), 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 Juno Online Services, Inc. is a Delaware corporation with its principal office
or place of business at 1540 Broadway, New York, NY 10036.
2. Respondent has developed, advertised, offered for sale, sold and distributed to the
free electronic mail and Internet access services, including Juno Basic electronic mail service and
Juno Free Web service, as well as fee-based electronic mail and Internet access products and
services, including Juno Gold electronic mail service and Juno Premium Web service. Respondent
underwrites the cost of its free and reduced fee products and services by directing third-party
advertisements and promotions to its subscribers. Respondent has offered for sale, sold and
distributed such products and services through its Internet Web site www.juno.com, a toll-free
telephone number and CD-ROM promotional disks distributed to consumers.
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 disseminated or has caused to be disseminated advertisements and
promotional materials for its electronic mail and Internet access services, including Juno Basic
electronic mail service, Juno Gold electronic mail service, Juno Premium Web service and Juno
Free Web service; and also has disseminated or caused to be disseminated advertisements and
promotional materials for rebate programs conditioned on subscription to its fee-based Internet
access services, which were offered in connection with the promotion and sale of various third
party computer and Internet-related products, including, but not limited to, computers, printers,
MP3 players and software programs. These advertisements and promotional materials, including,
but not limited to, Exhibits A through E, which were disseminated through various means,
1
including the Internet, electronic mail, toll-free telephone numbers, print, television, radio and
direct mail, contain the following statements and depictions:
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5
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ATTACHMENT E
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EXTRACTED KEY WORDS
JUNO ONLINE SERVICES WINDOW ENVELOPE |
ATTACHMENT E
REFUND CHECK ENVELOPE
Juno Online Services, Inc.
(address)
FORWARD & ADDRESS CORRECTION REQUESTED
Window Envelope
(indicates a check is enclosed)
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6
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ATTACHMENT D
|
EXTRACTED KEY WORDS
JUNO REFUND NOTICE LETTER JUNO ONLINE SERVICES BOLD TYPE FACE ATTENTION DISTANCE REFUND PROGRAM |
ATTACHMENT D
REFUND NOTICE LETTER ENVELOPE
Juno Online Services, Inc.
(address)
FORWARD & ADDRESS CORRECTION REQUESTED
Window Envelope
(The following statement is to appear in a box, on the left hand side
of the envelope in red, in extra large typeface equal or larger in
size to 14 point, bold type face).
ATTENTION: Important
Information Inside - JUNO LONG
DISTANCE Refund Program
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7
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ATTACHMENT C
|
EXTRACTED KEY WORDS
JUNO REFUND NOTICE LETTER JUNO ONLINE SERVICES BOLD TYPE FACE ATTENTION DISTANCE REFUND PROGRAM |
ATTACHMENT C
REFUND NOTICE LETTER ENVELOPE
Juno Online Services, Inc.
(address)
FORWARD & ADDRESS CORRECTION REQUESTED
Window Envelope
(The following statement is to appear in a box, on the left hand side
of the envelope in red, in extra large typeface equal or larger in
size to 14 point, bold type face).
ATTENTION: Important
Information Inside - JUNO LONG
DISTANCE Refund Program
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8
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ANALYSIS
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EXTRACTED KEY WORDS
CONSENT ORDER CONSUMERS PROPOSED CONSENT ORDER INTERNET SERVICE TOLL CHARGES CANCEL SUBSCRIBERS FREE TRIAL PERIOD DISCLOSE INCURRING MISREPRESENTING ADVERTISEMENTS AGREEMENT FALSELY REPRESENTING ADEQUATE AMOUNT BILLING CYCLE CONSPICUOUSLY DISCLOSES REASON ONLINE SERVICES PUBLIC RECORD REBATE PROGRAM PURCHASE CREDIT CARD PROVISIONS PROMOTING CANCELLATION PENALTIES PRICES PURPOSE |
_________________________________________________________________
Analysis of Proposed Consent Order to Aid Public Comment
_________________________________________________________________
The Federal Trade Commission has accepted, subject to final approval,
an agreement containing a consent order from Juno Online Services,
Inc. ("Juno").
The proposed consent order has been placed on the public record for
thirty (30) days for receipt 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 or make final the agreement's proposed
order.
Juno is an Internet service provider with approximately 842,000
subscribers to its fee-based services and nearly 4 million total
active subscribers. Juno typically charges subscribers a flat monthly
fee for its fee-based services. The company's subscriber revenues
reached nearly $34.5 million for 1999 and $73.9 million last year.
This matter concerns allegedly false claims for its "free" and
fee-based online services. The Commission's proposed complaint
alleges:
* Juno falsely represented that consumers participating in its free
trial periods for its fee-based Internet service could cancel at
any time before the free trial expired and avoid incurring
charges, and Juno failed to disclose the restrictive procedures
that subscribers must follow to cancel this service;
* Juno misrepresented the duration of its free trial offers for its
fee-based service and, in other instances, failed to disclose that
these free trial periods must be completed within a month;
* Juno misrepresented that there were no additional costs associated
with using its free Internet service, and failed to adequately
disclose important information about potential long distance
telephone toll charges ("toll charges") in promoting its free,
fee-based and free trial period offers;
* Juno failed to adequately disclose in its advertising for certain
rebate programs both the possibility of incurring toll charges
while using its fee-based Internet service and applicable
cancellation penalties; and
* Juno misrepresented that its Internet service was available for
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9
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ATTACHMENT F
|
EXTRACTED KEY WORDS
CHARGES CONSUMERS ADVERTISING CANCEL JUNO SETTLEMENT DISCLOSURES PAY CONSENT ORDER PROMOTIONAL MATERIALS COST HYPERLINKS LEADS REBATE MINIMUM PERIOD FEES DISTANCE TELEPHONE CHARGES NOTIFY ALLEGATIONS ORDER PROVISIONS FTC REPRESENTATIONS PURCHASE SUBSCRIBING SOLD PRICE DOLLAR AMOUNTS REBATE REPAYMENTS EXCESS |
ATTACHMENT F
BY U.S. MAIL
(to be printed on Juno Online Services, Inc. letterhead)
(date)
Dear (manufacturer)
This letter is to inform you that Juno recently voluntarily entered
into a settlement agreement, or consent order, with the Federal Trade
Commission ("FTC") regarding certain aspects of the advertising for
our Internet access services. The settlement requires us to notify any
party with whom we have agreed to advertise, promote or sell our
Internet services to stop using advertising or promotional materials
that do not make certain disclosures required by the settlement. This
letter summarizes the FTC's allegations and those order provisions
that are most relevant to our business relationship.
The FTC's Allegations
The FTC alleges in part that Juno represented that consumers who
purchased computer-related products would receive cash rebates for
subscribing to our fee-based Internet access services for a minimum
period of time. The complaint challenges as deceptive our failure to
disclose or adequately disclose in making these representations the
following information:
* Consumers who cancel their Premium Web Internet service within
this minimum period of time must repay the entire rebate received
and pay a cancellation fee;
* We do not provide local access telephone numbers in certain areas,
and therefore, some consumers may have to pay long distance
telephone charges to access our Internet services; and
* We automatically renew all subscriptions to our Internet access
services on a month-to-month basis after the minimum commitment
period has ended, unless our members contact us to cancel the
service.
The Consent Order Provisions
The consent order we entered into requires, among other things, that
advertisements and promotional materials for any Juno Internet access
service that is sold or distributed in connection with the purchase of
another product or service, must include the following information, in
a clear and conspicuous manner, where a price or cost claim is made
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10
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ATTACHMENT B
|
EXTRACTED KEY WORDS
LONG-DISTANCE CHARGES INCURRING JUNO REFUND SUBSCRIPTION AMOUNT ITEMIZED PORTION CANCELLATION TELEPHONE BILL PAID TELEPHONE COMPANY DISTANCE CHARGES ATTACHING CONNECTION PAYMENT STATEMENT INDICATING REIMBURSEMENT DECLARE PENALTY PERJURY REASON JUNO ONLINE SERVICES SHOWING SIGNED STATEMENT INDICATING SPECIFYING BILLED LONG-DISTANCE CHARGES CUSTOMERS SETTLEMENT RECOVER |
ATTACHMENT B
LETTER TO CUSTOMERS WHO CANCELED THEIR
SERVICE AND NAMED TOLL CHARGES AS A REASON
(To be printed on Juno letterhead)
(Date)
(Name and address of recipient)
(Juno e-mail address/user name)
Re: REFUND OFFER FOR SUBSCRIBERS TO JUNO'S ELECTRONIC MAIL AND/OR
INTERNET SERVICES ("JUNO'S SERVICES")
DEADLINE: (Insert date)
Dear (recipient's name):
You may be eligible for a refund from Juno Online Services, Inc.
("Juno") for certain long-distance charges incurred through the use of
Juno's services.
Juno recently settled a dispute with the Federal Trade Commission that
dealt with the adequacy of some of its advertising disclosures. As
part of the settlement, Juno has agreed to refund certain customers
for the long-distance charges incurred through the use of Juno's
services during the first two months after you subscribed to such
services.
You are eligible for a refund if you:
* canceled your Juno service on or before (insert date);
* canceled your Juno service within 90 days of subscribing to the
service and (1) identified the unavailability of a local access
number as a reason for your cancellation; OR (2) complained to
Juno about incurring long-distance charges through your use of the
service;
* have not already received a full refund for long-distance charges
incurred through the use of Juno's services from Juno (Note: If
you already received a partial refund for such long-distance
telephone charges, you still are eligible to recover the rest of
these charges); AND
* provide proof of the long-distance charges (Note: The refund is
limited to charges incurred through the use of Juno's services on
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11
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ATTACHMENT A
|
EXTRACTED KEY WORDS
LONG-DISTANCE REFUND JUNO AMOUNT TELEPHONE BILL ITEMIZED PORTION SUBSCRIBING CONNECTION PAID TELEPHONE COMPANY DISTANCE CHARGES ATTACHING PAYMENT REIMBURSEMENT DECLARE PENALTY PERJURY JUNO ONLINE SERVICES SHOWING STATEMENT INDICATING SPECIFYING BILLED LONG-DISTANCE CHARGES CUSTOMERS REBATE SETTLEMENT SIGNED STATEMENT INDICATING MONTHLY TELEPHONE BILLS PARTIAL REFUND RECOVER |
ATTACHMENT A
LETTER TO CUSTOMERS WHO PARTICIPATED IN A JUNO REBATE PROGRAM
(To be printed on Juno letterhead)
(Date)
(Name and address of recipient)
(Juno e-mail address/user name)
Re: REFUND FOR SUBSCRIBERS TO JUNO'S ELECTRONIC MAIL AND/OR
INTERNET SERVICES ("JUNO'S SERVICES") WHO PARTICIPATED IN A JUNO
REBATE OFFER
DEADLINE: (Insert date)
Dear (Recipient's name):
You may be eligible for a refund from Juno Online Services, Inc. for
certain long-distance telephone charges incurred in connection with
using Juno's services.
Juno recently settled a dispute with the Federal Trade Commission that
dealt with the adequacy of some of its advertising disclosures. As
part of the settlement, Juno has agreed to refund certain customers
for long-distance telephone charges incurred through the use of Juno's
services during the first two months after you subscribed to such
services.
You are eligible for a refund for long distance telephone charges
incurred through the use of Juno's services on the first two monthly
telephone bills you received after subscribing to such services:
* If you have not already been refunded in full for such
long-distance telephone charges from Juno. (Note: If you already
received a partial refund for such long-distance telephone
charges, you are still eligible to recover the rest of these
charges.); AND
* If you provide proof of such long-distance telephone charges.
(Note: The refund is limited to charges incurred through the use
of Juno's services on telephone bills you received during the
first two months after you subscribed to such services.)
Here's how to apply for your refund:
1. Complete the attached form.
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12
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AGREEMENT CONTAINING CONSENT ORDER
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EXTRACTED KEY WORDS
ONLINE SERVICE FEDERAL TRADE COMMISSION COMPLAINT REPRESENTATION CONSUMERS PROPOSED RESPONDENT AGREEMENT JUNO ONLINE SERVICES ELECTRONIC MAIL INTERNET SUBSCRIBER DRAFT COMPLAINT CHARGES SALE PURSUANT ADVERTISEMENTS PROMOTION DISCLOSURE CONNECTION ADVERTISING PRACTICES CONSENT ORDER DULY AUTHORIZED OFFICER PRINCIPALS ORDER ENTERED PURSUANT THEREAFTER ACCEPTANCE INTERNET ACCESS SERVICE REIMBURSEMENT |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
)
In the Matter of ) FILE NO.
)
JUNO ONLINE SERVICES, INC., ) AGREEMENT
a corporation. ) CONSENT ORDER
)
)
The Federal Trade Commission has conducted an investigation of certain acts and
practices of Juno Online Services, 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 Juno Online Services, Inc., by its duly
authorized officer, and counsel for the Federal Trade Commission that:
1. Proposed respondent Juno Online Services, Inc., is a Delaware corporation with its
principal office or place of business at 1540 Broadway, New York, NY 10036.
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
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 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 disposition of the proceeding.
Page 1 of 15
5. This agreement is for settlement purposes only and does not constitute an admission by
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