Commission Authorizes Filing of Final Monetary Judgment in Matter of Verity International; FTC Approves Federal Register Notice Seeking Comment on Petition for Generic Fiber Subclass in Textile Rule

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Commission authorization of final monetary judgment order: The Commission has authorized the filing of a stipulated final monetary judgment for over $1.6 million in the matter of FTC v. Verity International, Ltd. (FTC File No X010001, Civ. No. 00 Civ. 7422-LAK (S.D.N.Y. 2000)), resolving all issues remaining on remand from the Second Circuit. On appeal, the Second Circuit affirmed the defendants’ liability for deceptively and unfairly billing consumers’ telephone bills for access to the defendants’ adult Web sites; upheld the injunctive relief ordered, which permanently bans the defendants from billing for or offering such services to U.S. consumers; and remanded the case for a recalculation of the appropriate monetary award. As a result, the defendants have agreed to resolve the issue of monetary relief by giving up all claims to more than $1.6 million, which is currently held in the court registry.

The FTC vote authorizing the filing of the stipulated final monetary judgment on remand as to defendants Verity International, Ltd., Automatic Communications, Ltd., Robert Green, and Marilyn Shein was 5-0. The judgment resolves all issues remaining in this matter, following the Second Circuit’s remand of the case to the district court for a recalculation of the appropriate monetary judgment. (FTC File No X010001, Civ. No. 00 Civ. 7422-LAK; the staff contact is Lawrence Hodapp, Bureau of Consumer Protection, 202-326-3105; see press releases dated October 5, 2000 and September 27, 2004.)

Commission approval of Federal Register notice: The Commission has approved the publication of a Federal Register notice seeking public comment on a petition submitted to the FTC pursuant to the Textile Rules and Regulations Under the Textile Fiber Products Identification Act (Textile Rules). As detailed in the notice, which can be found on the FTC’s Web site and as a link to this press release, in response to a petition filed by Mohawk Industries, Inc. (Mohawk), E. I. du Pont de Nemours and Company (DuPont), and PTT Poly Canada (PTT Canada), the FTC is soliciting comments on whether it should amend Rule 7(c) of the Textile Rules to establish a new generic fiber subclass name and definition within the existing definition of “polyester” for a subclass of fibers made from poly(trimethylene terephthalate), or PTT.

According to the petitioners, the PTT fiber, while having the general chemical composition of polyester, has distinctive features related to durability, resilience, softness, and ability to stretch with recovery that make it more suitable than conventional polyester for carpet and apparel. The notice also seeks comments on whether Rule 7(c) should be broadened to clarify its definition of polyester to more accurately describe the molecular structure and physical characteristics of PTT and any similar fibers, in the event that the petition does not warrant the establishment of a new fiber subclass.

The Commission vote approving the publication of the Federal Register notice was 5-0. The FTC is accepting comments on the petition for 75 days after the publication of the Federal Register notice, through November 12, 2007. (FTC File No P074201; the staff contact is Janice Podoll Frankle, Bureau of Consumer Protection, 202-326-3022.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

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