FOR RELEASE: APRIL 30, 1992
FTC CHARGES COMPANY THAT SELLS MAZAGINES
WITH VIOLATING DOOR-TO-DOOR SALES RULE
The Federal Trade Commission has charged Houston-based Tork
& Associates, Inc., doing business as Aristocrat Sales, Torque
Power Sales, and ATM Sales, and its president, Jonathan Tork,
with violating the FTC's Cooling-Off Rule in connection with the
door-to-door sale of magazines. The FTC asked a federal court to
issue a permanent injunction prohibiting the defendants from
violating the rule in the future and to order them to pay civil
penalties.
Under the FTC's Cooling-Off Rule, consumers can cancel
purchases of $25 or more made door-to-door, or at places other
than the seller's usual place of business, within three business
days of the purchase. The seller must inform consumers of their
right to cancel at the time of sale and provide a full refund
within 10 days of cancellation.
According to the FTC, Tork and Associates, Inc. and its
president (collectively "Tork"), sold magazine subscriptions
door-to-door in numerous states. They allegedly violated the
Cooling-Off Rule by failing to provide a duplicate copy of the
"Notice of Right to Cancel;" misrepresenting the buyer's right to
cancel by telling consumers that the purchase price had to be $25
or more, not including the service charge; and by otherwise
misrepresenting consumers' right to cancel, the FTC charged.
Under the rule, magazine buyers only need to notify the
seller in writing of their desire to cancel. Tork, however,
misrepresented that the buyer must provide a copy of the receipt,
a photocopy of any cancelled check, the salesperson's name, the
- more -
Tork & Associates--04/30/92)
magazine name, the date of the transaction, and the total cost of
the purchase, the FTC alleged. The rule also requires that two
copies of a Notice of Cancellation be included in every door-to-
door sales contract (instead of the one copy allegedly provided
by Tork), and specifies the required language of that Notice.
The FTC's Denver Regional Office handled the investigation.
At the FTC's request, the Department of Justice filed the com-
plaint on April 24, in the U.S. District Court for the Southern
District of Texas, Houston Division.
NOTE: The Commission files a complaint when it has "reason to
believe" that the law has been or is being violated, and it
appears to the Commission that a proceeding is in the public
interest. The complaint is not a finding or ruling that the
defendants have actually violated the law. The case will be
decided by the court.
The FTC has a fact sheet for consumers called "The Cooling-
Off Rule," which describes when consumers can cancel a purchase
and how they can protect themselves. Copies are available free
of charge from the FTC's Public Reference Branch, Room 130, 6th
St. and Pennsylvania Ave., N.W., Washington, D.C. 20580.
Copies of the complaint will be available shortly from the
FTC's Public Reference Branch, same address as above; 202-326-
2222; TTY 1-866-653-4261.
# # #
MEDIA CONTACT: Brenda A. Mack, Office of Public Affairs
202-326-2180
STAFF CONTACT: Jonathan L. Kessler, Denver Regional Office
1405 Curtis Street, Suite 2900
Denver, CO 80202-2393
308-844-2271
(FTC File No. 892-3209)
(Civil Action No. H 92 1280)
(TORK)