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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 LLC ENGAGING VIOLATION TRADE COMMISSION HEREBY SETS 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
Toysrus.com, LLC and Toysrus.com, Inc., 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 Toysrus.com, LLC and
Toysrus.com, Inc., 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
MAIL ORDER RULE MAIL ORDER VIOLATION ACT SHIPPING FTC ACT DELIVERY CIVIL PENALTIES MERCHANDISE ATTORNEY JERSEY CONSUMER UNITED STATES PLAINTIFF FEDERAL TRADE COMMISSION BUSINESS DISTRICT COURT SALE SHIPPING REPRESENTATIONS TELEPHONE ORDER ASSISTANT LLC INJUNCTION MONETARY CIVIL PENALTIES TOYS SOLICITING BUYER FAILING |
ROBERT J. CLEARY
United States Attorney
By:
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, New Jersey 07102
(973) 645-2700
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA,
Plaintiff
v.
TOYSRUS.COM, LLC, AND
TOYSRUS.COM, INC.,
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 New Jersey is proper under 15 U.S.C.
53(b) and under 28 U.S.C. §§ 1391(b-c) and 1395(a).
DEFENDANTS
4. Defendant Toysrus.com, Inc. is a Delaware corporation with its
office and principal place of business located at 225 Summit Avenue,
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3
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CONSENT DECREE
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EXTRACTED KEY WORDS
CONSENT DECREE FEDERAL TRADE ATTORNEY FEDERAL TRADE COMMISSION MAIL ORDER UNITED STATES MAIL ORDER RULE CONSUMER ENFORCEMENT ENTRY JERSEY CIVIL BUSINESS LLC PARTIES MERCHANDISE SUCCESSORS PAYMENT COMPLIANCE BUREAU CONSUMER PROTECTION PLAINTIFF COMPLAINT HEREBY PURPOSES PURSUANT JUSTICE WASHINGTON STATEMENT SETTING |
ROBERT J. CLEARY
United States Attorney
By:
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, New Jersey 07102
(973) 645-2700
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA,
Plaintiff
v.
TOYSRUS.COM, LLC, AND
TOYSRUS.COM, INC.,
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"
means the Federal Trade Commission's Trade Regulation Rule Concerning
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