CHARLES A. HARWOOD
ATTORNEYS FOR PLAINTIFF
Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), has filed a complaint for a permanent injunction and other relief pursuant to Section 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 53(b) and 57b, and the Telemarketing and Consumer Fraud and Abuse Prevention Act (Telemarketing Act), 15 U.S.C. § 6101 et seq., naming as defendants Konrad King and Konrad King, Inc., and alleging violations of the Telemarketing Sales Rule, 16 C.F.R. Part 310 ("the Rule").
Defendants Konrad King and Konrad King, Inc., and the Commission, by and through their respective counsel, have agreed to entry of this Order by this Court in order to resolve all matters in dispute between them in this action. These defendants have consented to the entry of this Order without trial or adjudication of any issue of law or fact herein, and this Decree shall not constitute an admission of liability by defendants nor constitute evidence of liability against defendants in any matter relating to the facts alleged in the Commissions Complaint. NOW, THEREFORE, these defendants and the Commission having requested the Court to enter this Order, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows:
For the purpose of this Order, the following definitions shall apply:
IT IS THEREFORE ORDERED that defendants are hereby permanently restrained and enjoined from:
II. MAINTENANCE OF RECORDS
IT IS FURTHER ORDERED that, for a period of three years from the date of entry of this Order, defendants are hereby restrained and enjoined from failing to create, maintain and make available to representatives of the Commission, upon reasonable notice:
III. ACCESS TO RECORDS
IT IS FURTHER ORDERED that for purposes of determining or securing compliance with this Order, defendants shall permit, for a period of three years from the date of entry of this Order, and upon reasonable written notice to defendants, representatives of the Federal Trade Commission:
IV. NOTICE TO RELATED PERSONS AND ENTITIES
IT IS FURTHER ORDERED that defendants shall immediately provide a copy of this Order to each affiliate, subsidiary, division, sales entity, successor, assign, officer, director, employee, independent contractor, agent, and representative, and shall, within ten (10) days from the date of entry of this Order, provide plaintiff with a sworn statement that defendants have complied with this provision of the Order, which statement shall include the names and addresses of each such person or entity who received a copy of the Order.
V. NEW EMPLOYMENT
IT IS FURTHER ORDERED that for a period of three years from the date of entry of this Order, defendant Konrad King shall notify the FTC in writing of any affiliation or employment with any company that engages in telemarketing or provides services of any kind to telemarketers, in commerce, as commerce is defined in the FTC Act, within twenty-one (21) days of the commencement of that affiliation. Each notice shall include the defendants then- current business and home address and phone number, and a statement of the nature of the new business or employment along with a description of his or her interest, duties, and responsibilities in the business or employment.
VI. CORPORATE CHANGES
IT IS FURTHER ORDERED that for a period of three years from the date of entry of this Order, defendant Konrad King, Inc., shall notify the FTC at least thirty (30) days prior to the effective date of any proposed change in its corporate structure, such as dissolution, assignment, or sale resulting in the emergence of any successor corporation, the creation or dissolution of any subsidiaries, or any other changes in the corporation that may affect compliance obligations arising out of this Order.
VII. COMPLIANCE REPORT
IT IS FURTHER ORDERED that defendants shall, within 180 days after the date of entry of this Order, file with the Federal Trade Commission a report, in writing, setting forth the manner and form in which they have complied with this Order.
IT IS FURTHER ORDERED that all notices and reports required of defendants by this Order shall be made to the following address:
IV. RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes.
SO ORDERED, this _____ day of ___________________, 1998.
The parties hereby consent to the terms and conditions set forth above and consent to entry of this Order without further notice to the parties. Defendants waive any rights that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412.
FEDERAL TRADE COMMISSION
FOR THE DEFENDANTS