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NOTE: This website is where you can find advertising law information based on archived news briefs from past issues of Advertising Compliance Service. These archived news briefs were published in Advertising Compliance Service in November 2001.





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Career Network, Inc. (CNI), and its principals, Walter Turulis and Kathleen Key, are permanently banned from promoting or selling any employment good or service as part of settlements with FTC. Also, the settlement with CNI and Turulis requires them to pay a $25,000 judgment. In April 2001, Kathleen Key entered into a settlement with FTC that also required her to pay $25,000.

The case against CNI was filed in January 2001 as part of Project "Stamp Out Job Fraud." This case is a joint effort between FTC and the U.S. Postal Service (USPS) to stop the fraudulent sale of employment services. According to FTC's complaint, the defendants misrepresented:

that postal or government conservation positions were locally and currently available;

that consumers were likely to obtain postal or government conservation positions using their materials; and

their refund policy.

The court issued a temporary restraining order against the defendants, froze their assets, and appointed a receiver over CNI.

The settlements, which required the court's approval, permanently ban the defendants from promoting or selling any employment good or service; engaging in telemarketing; or assisting others in selling employment goods or services or telemarketing in the future.

Also, the settlements bar defendants, in connection with the advertising, promoting, offering for sale or sale of any item, product, good, service, investment opportunity, business opportunity, partnership interest, trust interest or other beneficial interest, from misrepresenting:

that employment positions are available in particular geographic areas;

that consumers who purchase any employment good or service will be able to obtain employment positions;

the salaries and qualifications for any employment position;

the terms of and conditions of refund policies; and any material fact regarding any item, product, good, or service sold, or offered for sale.

The settlements also bar defendants from:

failing to disclose in a clear and conspicuous manner, prior to charging a consumer for any good or service, all material terms, conditions, and limitations of any refund policy;

violating any provision of the Telemarketing Sales Rule, or assisting others who violate its provisions;

and selling their customer lists.

The settlement with Kathleen Key was entered by the U.S. District Court, Northern District of Indiana, Hammond Division, on April 12, 2001. The CNI/Turulis settlement was filed on October 15, 2001, and entered by the court on October 17, 2001.

NOTE: The Stipulated Final Orders for Permanent Injunction are for settlement purposes only and do not constitute an admission by the defendants of a law violation. The Stipulated Final Orders have the force of law when signed by the judge.

(Career Network, Inc., et al., FTC File No. X010018, Civil Action No. 2:01-CV-001-JM, November 1, 2001.)


On November 5, 2001, James R. Guthrie, President, National Advertising Review Council, Inc. (NARC), announced the due process posting of the proposed expedited National Advertising Division (NAD) procedures on NAD's "We want to allow all interested parties to participate in the self-regulatory process as we revise our NAD Procedures. The proposed revisions are intended to expedite the NAD case-handling process and have been developed by the NARC Board and the Task Force appointed by the Board. After 90 days' posting, the comments will be synthesized and the Board will finalize the revised Procedures."

(NARC News Release, November 5, 2001.)
















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