DEBRA VALENTINE
General Counsel

DAVID M. NEWMAN (Calif. State Bar No. 54218)
SYLVIA KUNDIG (Calif. Bar No. 172488)
Federal Trade Commission
901 Market Street, Suite 570
San Francisco, CA 94103
(415) 356-5270

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT
DISTRICT OF KANSAS

FEDERAL TRADE COMMISSION, Plaintiff,

v.

PARADE OF TOYS, INC. et al., Defendants.

Case No. 97-2367-GTV

CONSENT ORDER CONTAINING
PERMANENT INJUNCTION RE: DEFENDANTS
PARADE OF TOYS, INC., AND ROBERT E. BOUCKHOUT

WHEREAS Plaintiff, the Federal Trade Commission, has commenced this action by filing the Complaint herein; defendants Parade of Toys, Inc., and Robert E. Bouckhout have been served with the Summons and Complaint; the parties have been represented by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this action upon the following terms and conditions, without adjudication of any issue of fact or law and without defendants admitting liability for any of the matters alleged in the Complaint;

THEREFORE, on the joint motion of plaintiff and defendants Parade of Toys, Inc., and Robert E. Bouckhout, it is hereby ORDERED, ADJUDGED, and DECREED as follows:

DEFINITIONS

For the purposes of this Consent Judgment and Order, the following definitions shall apply:

"Franchise" is defined in Section 436.2(a) of the Commission's Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures," 16 C.F.R. Part 436 (hereinafter the "Franchise Rule"). The term "franchise" in this Consent Judgment and Order shall encompass any successor definition in any later trade regulation rule promulgated by the Commission.

"Business venture" is defined as any written or oral arrangement, however denominated, whether or not covered by the Franchise Rule, which consists of the payment of any consideration for:

a. the right or means to offer, sell or distribute goods or services (whether or not identified by a trademark, service mark, trade name, advertising or other commercial symbol); and
 
b. more than nominal assistance to any person or entity in connection with or incident to the establishment , maintenance, or operation of a new business or the entry of an existing business into a new line or type of business.

FINDINGS

1. This Court has jurisdiction of the subject matter and of the parties, and venue is proper in this District.

2. The Complaint states a claim upon which relief may be granted against the defendants under Sections 5(a)(1), 13(b) and 19 of the Federal Trade Commission Act, 15 U.S.C.  45(a)(1), 53(b) and 57b.

I.

BAN ON THE SALE OF FRANCHISE OR BUSINESS VENTURE

IT IS HEREBY ORDERED that defendants Parade of Toys, Inc., a corporation, and Robert E. Bouckhout, individually,whether acting directly or through any business entity, corporation, subsidiary, division or other device, are hereby permanently enjoined and restrained from

A. Advertising, promoting, offering for sale or selling any franchise or business venture; or

B. Encouraging, advising, or assisting any other person or firm to advertise, promote, offer for sale or sell any franchise or business venture.

II.

PROVISIONS RELATED TO CONSUMER REDRESS

IT IS FURTHER ORDERED that defendants Parade of Toys, Inc., and Robert E. Bouckhout shall pay redress, at such times, in such amounts, and to such persons, or to any fund for the benefit of such persons, for which they are held liable to pay redress in the action entitled State of Kansas, ex rel. Carla J. Stovall, Attorney General v. Parade of Toys, Inc., et al., Case No. 97C5099 (Dist. Ct. Johnson County, Kansas) (hereinafter the "Kansas action"); for the purposes of this section "redress" shall include, but not be limited to, restitution, and rescission, disgorgement, refunds, consumer redress or any other order or directive from said court that said defendants pay any amounts of money to or for the benefit of persons who made purchases from them; and it is further

ORDERED that, upon entry of a final order or judgment providing for payment of redress by defendants Parade of Toys, Inc. and Robert E. Bouckhout, or either of them, in the Kansas action, the Federal Trade Commission may reopen this proceeding to apply for entry of judgment in an amount equal to the amount for which each defendant is held liable by the court in the Kansas action; and it is further

ORDERED that the Federal Trade Commission shall cause all funds collected pursuant to any such redress judgment entered by this Court to be distributed on a pro rata basis, unless otherwise directed by the court in the Kansas action, to those persons to whom defendants Parade of Toys, Inc., and Robert E. Bouckhout, or either of them, are ordered to pay redress in the Kansas action; provided, however, that satisfaction by either defendant of any judgment or order for payment of redress entered in the Kansas action shall constitute satisfaction by that defendant of Part II of this Consent Order and any redress judgment entered by this Court pursuant to this Consent Order; and it is further

ORDERED that, in any future action for the interpretation or enforcement of this Order, the findings of the court in the Kansas action shall be binding on all parties to this action with respect to the amounts of money to be paid by the defendants Parade of Toys, Inc. and Robert E. Bouckhout, or either of them, to any person, or to any fund for the benefit of such persons, and the times at which such payments must be made, in whole or part.

III.

PERSONS AFFECTED; CONTINUING JURISDICTION

IT IS FURTHER ORDERED that defendant Parade of Toys, Inc., its successors and assigns, shall within thirty (30) days of the entry of this Consent Order, provide a copy of this Consent Order to its officers, directors, agents, servants, employees and attorneys, and secure from each such person a signed statement acknowledging receipt of a copy of this Consent Order, and shall, within ten (10) days of complying with this paragraph, file an affidavit with the Court and serve the Federal Trade Commission, by mailing a copy thereof to the Regional Director, San Francisco Regional Office, Federal Trade Commission, 901 Market Street, Suite 570, San Francisco, CA 94103, setting forth the fact and manner of such compliance, including the name and title of each person to whom a copy of this Consent Order has been provided; and it is further

ORDERED that defendant Robert E. Bouckhout shall within thirty (30) days of the entry of this Consent Order, provide a copy of this Consent Order to the officers, directors, agents, servants, employees and attorneys of any firm of which he is an officer, director, owner or shareholder of an interest greater than ten percent or for which he exercises any management or supervisory responsibility, and secure from each such person a signed statement acknowledging receipt of a copy of this Consent Order, and shall, within ten (10) days of complying with this paragraph, file an affidavit with the Court and serve the Federal Trade Commission, by mailing a copy thereof to the Regional Director, San Francisco Regional Office, Federal Trade Commission, 901 Market Street, Suite 570, San Francisco, CA 94103, setting forth the fact and manner of such compliance, including the name and title of each person to whom a copy of this Consent Order has been provided; and it is further

ORDERED that, for a period of five (5) years from the date of entry of this Consent Order, defendants Parade of Toys, Inc., and Robert E. Bouckhout, their successors and assigns, shall maintain and make available to the Federal Trade Commission, within seven (7) days of the date receipt of a written request, business records demonstrating compliance with the terms and provisions of this Consent Order, including but not limited to all promotional materials (including written materials and scripts, recording or transcriptions of oral presentations) and any materials upon which defendants rely as the basis for any claims made in any promotional material; and it is further

ORDERED that for seven (7) years after the date of entry of this Consent Order, defendant Robert E. Bouckhout shall notify the Federal Trade Commission within thirty (30) days whenever he changes or discontinues his then-current business or employment; and it is further

ORDERED that for seven (7) years after the date of entry of this Consent Order, defendant Parade of Toys, Inc., shall notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the corporate defendant such as dissolution, assignment, sale resulting in the emergence of a successor corporation, or the creation or dissolution of subsidiaries or any other change in the corporation that may affect compliance obligations arising out of this Consent Order; and it is further

ORDERED that this action, and the relief awarded herein, is in addition to and not in lieu of other remedies as may be provided by law, including other proceedings the plaintiff may initiate to enforce this Consent Order, or other civil or criminal remedies; and it is further

ORDERED that this Court shall retain jurisdiction of this matter for the purposes of enabling any of the parties to this Consent Order to apply to the Court at any time for such further orders or directives as may be necessary or appropriate for the interpretation or modification of this Consent Order, for the enforcement of compliance therewith, or for the punishment of violations thereof.

THERE BEING NO JUST REASON FOR DELAY, the Clerk of the Court is directed to enter this Consent Order forthwith.

Dated this _____________ day of _____________, 19____.

G. Thomas Van Bebber, Chief
United States District Court Judge

The Federal Trade Commission, by its counsel, and defendants and their counsel, hereby consent to the terms and conditions of the Consent Order as set forth above and consent to the entry thereof. Defendants waive any rights that may arise under the Equal Access to Justice Act, 28 U.S.C.  2412.

Defendant Parade of Toys, Inc., by
Robert E. Bouckhout, President

Robert E. Bouckhout, individually

Ronald D. Lee
Wyrsch, Hobbs, Mirakian & Lee
1300 Mercantile Tower
1101 Walnut
Kansas City, MO 64106-2122

Attorney for Defendants Parade of Toys, Inc., and Robert E. Bouckhout

For the Federal Trade Commission
David M. Newman
Federal Trade Commission
901 Market Street, Suite 570
San Francisco, CA 94103
(415) 356-5270

Attorney for Plaintiff