NOTE: Here is where you can find advertising law information based on news briefs that appeared in past issues of Advertising Compliance Service.
FOURTH WEDDING GOWN MANUFACTURER SETTLES CARE LABELING CHARGES
The Commission vote to file the complaint and the proposed settlement was 4-0. The complaint and settlement were filed at the FTC's request by the Department of Justice in the U.S. District Court for the Southern District of New York on September 1, 1999. The consent decree is subject to court approval.
NOTE: Consent decrees are for settlement purposes only and do not constitute an admission by the defendants of a law violation. Consent decrees have the force of law when signed by the judge.(Milady Bridals, Inc., FTC File No. 982 3188, September 1, 1999.)
$800,000 CIVIL PENALTY FOR ALLEGED VIOLATIONS OF FTC RULE
A federal district court granted FTC's request to modify a 1996 consent decree that bars Telebrands Corporation and its president, Ajit Khubani, from violating FTC's Mail or Telephone Order Rule. The modified order resolves FTC allegations that the defendants violated the rule and the 1996 order in many sales transactions after January 1, 1997, and routinely failed to comply with the recordkeeping provisions of the 1996 order.
The modified consent decree supersedes the 1996 order. Among other things, it bars defendants from violating the Mail Order Rule in the future and requires them to pay $800,000 in civil penalties. Telebrands and Khubani agreed to the modified order without admitting wrongdoing.The Mail or Telephone Order Merchandise Rule requires a company that takes orders for merchandise by mail, telephone or computer to ship ordered merchandise within the time stated in its advertising. If no time is stated, the company must send the merchandise within 30 days of receiving the properly completed order. FTC's court pleading alleges that the defendants repeatedly violated the rule and the recordkeeping provisions of the 1996 order in the processing and selling of their products, such as the Static Duster, the Moving Train Watch, the Sky Glider (a glider type indoor exerciser), the Fuji Pillow, and Total Perfection (an electric depilatory device). The company advertised these products nationally on TV and in print ads in publications such as TV Guide, USA Today, Family Circle and newspapers such as the Chicago Tribune, St. Louis Post- Dispatch and the Denver Post. FTC alleged that the defendants violated the Mail or Telephone Order by sending delay notices late, delaying shipment without getting the consumer's agreement to do so, or shipping merchandise after the revised shipment date and without the consumer's consent to further the delay. The Commission vote to authorize the Department of Justice to file the modified consent decree on behalf of the FTC was 4-0. The modified consent decree was filed on September 1, 1999 in the U.S. District Court for the Western District of Virginia, Roanoke Division, and signed by Judge James C. Turk. NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the defendants of a law violation. Consent decrees have the force of law when signed by the judge. (Telebrands Corporation, et al., FTC Matter No. 982 3106, Civil Action No. 96-0827-R, September 2, 1999.) INTERNET MATERIALS: Materials relating to these FTC matters are available on the Internet at FTC's World Wide Web site at: http://www.ftc.gov.
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