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UNITED STATES v CREATIVE PUBLISHING INTERNATIONAL INC Click to find out why . . .



Keywords & Phrases
CaseNo: USVCPII278725, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, Plaintiff: UNITED STATES, State: MN Minnesota, UniqueCaseRef: LCD>USVCPII278725, Negative Option, Consumers, Sales Rule, Act, Unordered Merchandise Statute, Telemarketing, Negative Option Plans, Violation, Federal Trade Commission, Ftc, Books, Seller, Subscriber, Subsequent-offer Books, Complaint, United States, Cpi, Consent Decree, United States District, Monetary Civil Penalties, Civil Penalties, Hereby, Negative Option Rule, Parties, Negative Option Plan, Material Terms, Subsequent Announcements, Free Trial Period, Connection, Representation, Hereafter , ContentID: 120248057

Case Documents
1   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 119794
17 pages
PDF
2 2000-05 CONSENT DECREE
[ see first page and extracted highlights below  ] ItemID: 119795
15 pages
PDF
Total Documents: 2 documents , 32 pages
Price: $ 24.95


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1 . COMPLAINT

EXTRACTED KEY WORDS
CONSUMERS
SALES RULE
ACT
UNORDERED MERCHANDISE STATUTE
TELEMARKETING
NEGATIVE OPTION PLANS
VIOLATION
FTC
BOOKS
COURT
PLAINTIFF
SUBSEQUENT-OFFER BOOKS
CPI
FEDERAL TRADE COMMISSION
SELLER
UNITED STATES
UNITED STATES DISTRICT
MONETARY CIVIL PENALTIES
CIVIL PENALTIES
SUBSCRIBER
SUBSEQUENT ANNOUNCEMENTS
CONNECTION
INITIAL-OFFER BOOKS
NEGATIVE OPTION REJECTION
DECEPTIVE ACTS
TRIAL PERIOD
ADVERTISING
PARAGRAPHS
LIMITATION
                           IN THE UNITED STATES DISTRICT COURT
                                FOR THE DISTRICT OF MINNESOTA
___________________________________
                                              ))
UNITED STATES OF AMERICA,                     )
                          Plaintiff,          ))      Civil Action No.:
                 v.                           )
                                              )
CREATIVE PUBLISHING                           )
INTERNATIONAL, INC.,                          )
        a corporation,                        )
                          Defendant.          ))
___________________________________ )


                                           COMPLAINT

        Plaintiff, the United States of America, acting upon notification and authorization to the

Attorney General by the Federal Trade Commission ("FTC" or "Commission"), for its complaint,

alleges that:

        1.  Plaintiff brings this action under Sections 5(a), 5(m)(1)(A), 13(b), 16(a) and 19 of the

Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a) and

57b, the Telemarketing and Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"),

15 U.S.C. § 6101, et seq., and the Unordered Merchandise Statute, 39 U.S.C. § 3009,  to obtain

monetary civil penalties and injunctive and other relief for defendant's violations of the FTC's

Trade Regulation Rule entitled "Use of Prenotification Negative Option Plans" ("the Negative

Option Rule"), 16 C.F.R. Part 425; the FTC's Trade Regulation Rule entitled "Telemarketing

Sales Rule," 16 C.F.R. Part 310; and the Unordered Merchandise Statute.



                                JURISDICTION AND VENUE

       2.  This Court has jurisdiction of this matter pursuant to 28 U.S.C. §§ 1331, 1337(a),

1339, 1345, and 1355 and 15 U.S.C. §§ 45(m)(1)(A), 53(b), 57b, and 6105(b).

       3.  Venue in the United States District Court for the District of Minnesota is proper under

SNIPPETS:
  • IN THE UNITED STATES DISTRICT COURT
  • Plaintiff, the United States of America, acting upon notification and authorization to the
  • Attorney General by the Federal Trade Commission ("FTC" or "Commission"), for its complaint,
  • 57b, the Telemarketing and Consumer Fraud and Abuse Prevention Act,
  • monetary civil penalties and injunctive and other relief for defendant's violations of the
  • Trade Regulation Rule entitled "Use of Prenotification Negative Option Plans" ("the Negative
  • Sales Rule," 16 C.F.R. Part 310; and the Unordered Merchandise Statute.
  • Venue in the United States District Court for the District of Minnesota is proper under
  • CPI transacts business in the District of Minnesota.
  • CPI is a publisher and seller of books.
  • In connection with these negative option plans, in numerous instances from July 1,
  • referred to collectively as "Initial Advertising") to hundreds of thousands of consumers in
  • CPI sends additional promotional materials ("Subsequent Announcements") to all
  • without limitation: Complete Guide to Home Wiring; Building Decks;
  • consumers must return to CPI to reject the Subsequent-offer Books.
  • negative option rejection forms in its Subsequent Announcements.
  • merchandise to a negative option plan subscriber, send a form to the subscriber that the
  • Negative Option Rule are unfair or deceptive acts or practices in violation of Section 5of
  • negative option plans for the sale of books, as described in paragraphs 6 through 15 above,
  • act or practice and a violation of this Rule for any seller or telemarketer to engage in the
  • payment for Initial-offer Books, in negative option plans, thereby violating Section
  • to receive Subsequent-offer Books for a 14-day, trial period.
  • described above constitutes a separate violation for which plaintiff seeks monetary civil

  • 2 . CONSENT DECREE

    EXTRACTED KEY WORDS
    FEDERAL TRADE COMMISSION
    COMPLAINT
    CONSUMERS
    ATTORNEYS
    NEGATIVE OPTION
    CONSENT DECREE
    SUBSCRIBER
    HEREBY
    NEGATIVE OPTION RULE
    COURT
    PARTIES
    NEGATIVE OPTION PLAN
    SELLER
    MATERIAL TERMS
    FREE TRIAL PERIOD
    PLAINTIFF
    REPRESENTATION
    HEREAFTER
    TRADE COMMISSION ACT
    MERCHANDISE
    PAY CONVERSION
    SUCCESSORS
    UNITED STATES
    JURISDICTION
    CONTINUITY PROGRAM
    SHIPMENT
    MEANING SET
    PROVISION
    SELECTION
    
                              IN THE UNITED STATES DISTRICT COURT
                                   FOR THE DISTRICT OF MINNESOTA
    ___________________________________
                                                    )
    UNITED STATES OF AMERICA,                       )
                             Plaintiff,             ))      Civil Action No.:
                      v.                            )
                                                    )
    CREATIVE PUBLISHING                             )
    INTERNATIONAL, INC.,                            )
           a corporation,                           )
                             Defendant.             )
    ___________________________________ )
    
                                            CONSENT DECREE
    
           WHEREAS, Plaintiff, the United States of America, has commenced this action by filing
    
    the Complaint herein; Defendant has waived service of the Summons and Complaint; the parties
    
    have been represented by the attorneys whose names appear hereafter; and the parties have agreed
    
    to the settlement of this action upon the following terms and conditions, without adjudication of
    
    any issue of fact or law and without Defendants admitting liability for any of the matters alleged
    
    the Complaint;
    
           NOW, THEREFORE, upon stipulation of Plaintiff and Defendant, it is hereby
    
    ORDERED, ADJUDGED AND DECREED as follows:
    
           1.  This Court has jurisdiction of the subject matter and of the parties.
    
           2.  The Complaint states a claim upon which relief may be granted against the Defendant
    
    under Sections 5(a), 5(m)(1)(A), 13(b), 16(a) and 19 of the Federal Trade Commission Act
    
    ("FTC Act"), 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a) and 57b.
    
           3.  Entry of this order is in the public interest.
    
    
                                      CONSENT DECREE, Page 1 of 16
    
    
    
                                              DEFINITIONS
    
    
    SNIPPETS:
  • WHEREAS, Plaintiff, the United States of America, has commenced this action by filing
  • the Complaint herein; Defendant has waived service of the Summons and Complaint; the parties
  • have been represented by the attorneys whose names appear hereafter; and the parties have
  • NOW, THEREFORE, upon stipulation of Plaintiff and Defendant, it is hereby
  • This Court has jurisdiction of the subject matter and of the parties.
  • "Negative Option Plan" shall have the meaning set forth in Section 425.1of the
  • FTC's Trade Regulation Rule entitled "Use of Prenotification Negative Option Plans" ("the
  • which a seller periodically sends to Subscribers an Announcement which identifies merchandise
  • unless by a date or within a time specified by the seller
  • defendant that offer books to consumers for a 14-day free trial period.
  • "Subscriber" shall have the meaning set forth in Section 425.1of the Negative
  • "Selection" shall have the meaning set forth in Section 425.1of the Negative
  • Negative Option Rule, which is: "any material sent by a seller using a Negative Option Plan in
  • "Free to Pay Conversion Offer" shall mean any offer by the Defendant to provide free
  • consumers are enrolled in a Negative Option Plan or a Continuity Program,
  • Defendant Creative Publishing International, Inc., its successors and assigns, shall pay
  • to Plaintiff a civil penalty, pursuant to Section 5of the Federal Trade Commission Act,
  • accounts were established from July 1, 1997 through June 20, 1999, disclosing all material
  • and conditions required to be disclosed by this Consent Decree.
  • and attorneys, and all persons in active concert or participation with any one or more of
  • provision of the Negative Option Rule or as the Rule may hereafter be amended.
  • unless, at the time of making such representation, all material terms and conditions
  • shipment of additional products, the provision of additional services, or any
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