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
|