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1
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REASONS FOR SETTLEMENT
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EXTRACTED KEY WORDS
SETTLEMENT COMMISSION CONSENT DECREE MAIL ORDER AMOUNT REASONS CIVIL PENALTIES ACTS PRACTICES ENTRY SOUTHDALE KAY-BEE TOY LLC ENGAGING VIOLATION TRADE INJUNCTION BASIS COMPLAINT PAYMENT REACHING ACCOUNT MONEY DEFENDANTS SPENT MITIGATING CONSUMER INJURY ASSURE COMPLIANCE LAW EXPENSE LITIGATION FOREGOING REASONS |
REASONS FOR SETTLEMENT
This statement accompanies the Consent Decree executed by defendants
Southdale Kay-Bee Toy, Inc. and KBkids.com LLC, in settlement of an
action brought to recover penalties and other equitable relief from
the defendants for engaging in acts or practices in violation of the
Commission's Trade Regulation Rule Concerning Mail or Telephone Order
Merchandise, 16 C.F.R. Part 435 ("Mail Order Rule").
Pursuant to Section 5(m)(3) of the Federal Trade Commission Act, as
amended (15 U.S.C. § 45(m)(3)), the Commission hereby sets forth its
reasons for settlement by entry of a Consent Decree and injunction:
On the basis of the allegations contained in the attached Complaint,
the Commission believes that the payment of $350,000 in civil
penalties by the defendants constitutes an appropriate amount upon
which to base a settlement. In reaching the amount of appropriate
civil penalties, the Commission took into account the amount of money
the defendants spent in mitigating consumer injury caused by their
rule violations. The amount should assure compliance with the law by
defendants and by others who engage in practices covered by the Mail
Order Rule. Further, defendants are permanently enjoined from engaging
in acts or practices that are prohibited by the Mail Order Rule. With
the entry of such Consent Decree the time and expense of litigation
will be avoided.
For the foregoing reasons, the Commission believes that the settlement
by entry of the attached Consent Decree with Southdale Kay-Bee Toy,
Inc. and KBkids.com LLC, is justified and well within the public
interest.
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2
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COMPLAINT
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EXTRACTED KEY WORDS
DEFENDANTS VIOLATION MAIL ORDER ACT FTC ACT MINNESOTA CIVIL PENALTIES ATTORNEY PLAINTIFF SOUTHDALE KAY-BEE TOY SHIPPING UNITED STATES FEDERAL TRADE COMMISSION MERCHANDISE DISTRICT COURT LLC SALE TELEPHONE ORDER WEBSITE BUYER ASSISTANT MINNEAPOLIS INJUNCTION MONETARY CIVIL PENALTIES PROPER BUSINESS CUSTOMERS FAILING |
B. TODD JONES
United States Attorney
By:
Assistant United States Attorney
300 South 4^th Street
600 U.S. Courthouse, Minneapolis
Minneapolis, Minnesota 55415
(612) 664-5600
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
UNITED STATES OF AMERICA, Plaintiff
v.
SOUTHDALE KAY-BEE TOY, INC., and
KBKIDS.COM LLC, Defendants.
Civil Action No.
COMPLAINT FOR CIVIL PENALTIES, INJUNCTIVE AND OTHER RELIEF
Plaintiff, the United States of America, acting upon notification and
authorization to the Attorney General by the Federal Trade Commission
("Commission"), for its Complaint alleges that:
1. Plaintiff brings this action under Sections 5(a)(1), 5(m)(1)(A),
13(b), and 16(a) of the Federal Trade Commission Act ("FTC Act"), 15
U.S.C. §§ 45(a)(1), 45(m)(1)(A), 53(b), and 56(a), to obtain monetary
civil penalties and injunctive and other relief for defendants'
violations of the Commission's Trade Regulation Rule Concerning the
Sale of Mail or Telephone Order Merchandise (the "Mail Order Rule" or
"Rule"), 16 C.F.R. Part 435.
JURISDICTION AND VENUE
2. This Court has jurisdiction over this matter under 28 U.S.C.
1331, 1337(a), 1345, and 1355 and under 15 U.S.C. §§ 45(m)(1)(A),
53(b), and 56(a). This action arises under 15 U.S.C. § 45(a)(1).
3. Venue in the District of Minnesota is proper under 15 U.S.C.
53(b) and under 28 U.S.C. §§ 1391(b-c) and 1395(a).
DEFENDANTS
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3
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CONSENT DECREE
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EXTRACTED KEY WORDS
CONSENT DECREE FEDERAL TRADE FEDERAL TRADE COMMISSION BUSINESS ATTORNEY MAIL ORDER UNITED STATES MAIL ORDER RULE CONSUMER ENFORCEMENT ENTRY WASHINGTON CIVIL PLAINTIFF PARTIES MERCHANDISE SUCCESSORS PAYMENT BUREAU CONSUMER PROTECTION LLC CIVIL PENALTY COMPLAINT HEREBY PURPOSES PURSUANT JUSTICE COMPLIANCE STATEMENT SETTING |
B. TODD JONES
United States Attorney
By:
Assistant United States Attorney
300 South 4^th Street
600 U.S. Courthouse
Minneapolis, Minnesota 55415
(612) 664-5600
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
UNITED STATES OF AMERICA, Plaintiff
v.
SOUTHDALE KAY-BEE TOY, INC., and
KBKIDS.COM LLC, Defendants.
Civil Action No.
CONSENT DECREE AND ORDER FOR CIVIL PENALTIES, INJUNCTIVE AND OTHER
RELIEF
WHEREAS plaintiff, the United States of America, has commenced this
action by filing the Complaint herein; defendants have 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
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 in the
Complaint;
THEREFORE, upon stipulation of plaintiff and defendants, 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 defendants under Sections 5(a)(1), 5(m)(1)(A), 13(b), and
16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a)(1),
45(m)(1)(A), 53(b), and 56(a).
DEFINITION
3. For the purposes of this Consent Decree, the term "Mail Order Rule"
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