[Federal Register Volume 61, Number 45 (Wednesday, March 6, 1996)]
[Notices]
[Pages 8936-8939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5225]
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FEDERAL TRADE COMMISSION
[File No. 952-3388]
Georgetown Publishing House Limited Partnership; Georgetown
Publishing, Inc.; Daniel Levinas; Consent Agreement With Analysis To
Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Consent agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
prohibit the Washington, D.C.-based publishing firm from
misrepresenting that an advertisement is an independent review or
article, or that it is not a paid advertisement. The consent agreement
settles allegations that Georgetown used
[[Page 8937]]
deceptive advertising practices to promote the sale of a book titled
The American Speaker: Your Guide to Successful Speaking.
DATES: Comments must be received on or before May 6, 1996.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th Street and Pennsylvania Avenue NW., Washington, D.C.
20580.
FOR FURTHER INFORMATION CONTACT: Joel Winston, Federal Trade
Commission, S-4002, 6th and Pennsylvania Avenue NW., Washington, DC
20580. (202) 326-3153. Lesley Anne Fair, Federal Trade Commission, S-
4002, 6th and Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-
3081.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the following consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of sixty (60) days. Public comment is invited. Such
comments or views will be considered by the Commission and will be
available for inspection and copying at its principal office in
accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of
Practice (16 CFR 4.9(b)(6)(ii)).
In the matter of: Georgetown Publishing House Limited
Partnership, a limited partnership; Georgetown Publishing House,
Inc., a corporation; and Daniel Levinas, individually and as an
officer of said corporation.
File No. 952-3388.
Agreement Containing Consent Order To Cease and Desist
The Federal Trade Commission having initiated an investigation of
certain acts and practices of Georgetown Publishing House Limited
Partnership, a limited partnership; Georgetown Publishing House, Inc.,
a corporation; and Daniel Levinas, individually and as an officer of
Georgetown Publishing House, Inc. (``proposed respondents''); and it
now appearing that proposed respondents are willing to enter into an
agreement containing an order to cease and desist from the use of the
acts and practices being investigated,
It is hereby agreed by and between Georgetown Publishing House
Limited Partnership, by its duly authorized General Partner; Georgetown
Publishing House, Inc., by its duly authorized officer; and Daniel
Levinas, individually and as an officer of Georgetown Publishing House,
Inc.; and counsel for the Federal Trade Commission that:
1. Proposed respondent Georgetown Publishing House Limited
Partnership is a limited partnership organized, existing, and doing
business under and by virtue of the laws of the District of Columbia,
with its principal office or place of business at 1101 30th Street NW.,
Washington, D.C. 20007.
Proposed respondent Georgetown Publishing House, Inc. is a
corporation organized, existing, and doing business under and by virtue
of the laws of the District of Columbia, with its principal office or
place of business at 1101 30th Street NW., Washington, D.C. 20007.
Georgetown Publishing House, Inc., is General Partner of Georgetown
Publishing House Limited Partnership.
Proposed respondent Daniel Levinas is an officer of Georgetown
Publishing House, Inc. Individually or in concert with others, he
formulates, directs and controls the policies, acts and practices of
said corporation and his address is the same as that of said
corporation.
2. Proposed respondents admit all the jurisdictional facts set
forth in the draft of complaint here attached.
3. Proposed respondents waive:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify the proposed respondents, in which
event it will take such action as it may consider appropriate, or issue
and serve its complaint (in such form as the circumstances may require)
and decision, in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by proposed respondents that the law has been
violated as alleged in the draft of complaint here attached, or that
the facts as alleged in the draft complaint, other than the
jurisdictional facts, are true.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Section 2.34 of the
Commission's Rules, the Commission may, without further notice to
proposed respondents, (1) issue its complaint corresponding in form and
substance with the draft of complaint here attached and its decision
containing the following order to cease and desist in disposition of
the proceeding and (2) make information public in respect thereto. When
so entered, the order to cease and desist shall have the same force and
effect and may be altered, modified, or set aside in the same manner
and within the same time provided by statute for other orders. The
order shall become final upon service. Delivery by the U.S. Postal
Service of the complaint and decision containing the agreed-to-order to
proposed respondents' address as stated in this agreement shall
constitute service. Proposed respondents waive any right they may have
to any other manner of service. The complaint may be used in construing
the terms of the order, and no agreement, understanding,
representation, or interpretation not contained in the order or the
agreement may be used to vary or contradict the terms of the order.
7. Proposed respondents have read the proposed complaint and order
contemplated hereby. They understand that once the order has been
issued, they will be required to file one or more compliance reports
showing that they have fully complied with the order. Proposed
respondents further understand that they may be liable for civil
penalties in the amount provided by law for each violation of the order
after it becomes final.
Order
I
It is ordered that respondents Georgetown Publishing House Limited
Partnership, a limited partnership, and its successors and assigns;
Georgetown Publishing House, a corporation, its successors and assigns,
and its officers; and Daniel Levins, individually and as an officer of
said corporation; and respondents' agents, representatives, and
employees, directly or through any corporation, subsidiary, division or
other device, in connection with the advertising, promotion, offering
for sale, sale, or distribution of any product in or affecting
commerce, as ``commerce'' is defined in the Federal Trade Commission
Act, do forthwith cease and desist from:
[[Page 8938]]
A. Misrepresenting, directly or indirectly, that such product has
been independently reviewed or evaluated;
B. Misrepresenting, directly or indirectly, that an advertisement
is an independent review or article or is not a paid advertisement.
II
It is further ordered that respondents Georgetown Publishing House
Limited Partnership and Georgetown Publishing House, Inc., their
successors and assigns, shall for a period of five (5) years from the
date of entry of this Order maintain and make available to the Federal
Trade Commission within seven (7) business days of the date of the
receipt of a written request, business records demonstrating compliance
with the terms and provisions of this order.
III
It is further ordered that respondents Georgetown Publishing House
Limited Partnership and Georgetown Publishing House, Inc., their
successors and assigns, shall:
A. Within thirty (30) days after service of this order, provide a
copy of this order to each of its current principals, officers,
directors, and managers, and to all personnel, agents, and
representatives having sales, advertising, or policy responsibility
with respect to the subject matter of this order; and
B. For a period of ten (10) years from the date of entry of this
order, provide a copy of this order to each of its future principals,
officers, directors, and managers, and to all personnel, agents, and
representatives having sales, advertising, or policy responsibility
with respect to the subject matter of this order within three (3) days
after the person commences his or her responsibilities.
IV
It is further ordered that respondents Georgetown Publishing House
Limited Partnership and Georgetown Publishing House, Inc., their
successors and assigns, shall notify the Federal Trade Commission at
least thirty (30) days prior to any proposed change in structure,
including but not limited to dissolution, assignment, or sale resulting
in the emergence of a successor corporation or partnership, the
creation or dissolution of subsidiaries or affiliates, the planned
filing of a bankruptcy petition, or any other change in the corporation
or partnership that may affect compliance obligations arising out of
this order.
V
It is further ordered that respondent Daniel Levinas shall, for a
period of five (5) years from the date of entry of this order, notify
the Commission within thirty (30) days of the discontinuance of his
present business or employment and of his affiliation with any new
business or employment which involves the sale of consumer products.
Each notice of affiliation with any new business or employment shall
include the respondent's new business address and telephone number,
current home address, and a statement describing the nature of the
business or employment and his duties and responsibilities.
VI
It is further ordered that this order will terminate twenty years
from the date of its issuance, or twenty years from the most recent
date that the United States or the Federal Trade Commission files a
complaint (with or without an accompanying consent decree) in federal
court alleging any violation of the order, whichever comes later;
provided, however, that the filing of such a complaint will not affect
the duration of:
A. Any paragraph in this order that terminates in less than twenty
years;
B. This order's application to any respondent that is not named as
a defendant in such complaint; and
C. This order if such complaint is filed after the order has
terminated pursuant to this paragraph.
Provided further, that if such complaint is dismissed or a federal
court rules that the respondent did not violate any provision of the
order, and the dismissal or ruling is either not appealed or upheld on
appeal, then the order will terminate according to this paragraph as
though the complaint was never filed, except that the order will not
terminate between the date such complaint is filed and the later of the
deadline for appealing such dismissal or ruling and the date such
dismissal or ruling is upheld on appeal.
VII
It is further ordered that respondents shall, within sixty (60)
days after service of this Order, and at such other times as the
Federal Trade Commission may require, file with the Commission a
report, in writing, setting forth in detail the manner and form in
which they have complied with this order.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement to a proposed consent order from Georgetown
Publishing House Limited Partnership; Georgetown Publishing House,
Inc.; and Daniel Levinas, the president of Georgetown Publishing House.
The respondents sell various business publications, including The
American Speaker: Your Guide to Successful Speaking, which are
advertised through direct mail promotions to consumers.
The proposed consent order has been placed on the public record for
sixty (60) days for receipt of comments by interested persons. Comments
received during this period will become part of the public record.
After sixty (60) days, the Commission will again review the agreement
and the comments received and will decide whether it should withdraw
from the agreement and take other appropriate action, or make final the
proposed order contained in the agreement.
In this case, proposed respondents sent direct mail solicitations
to consumers for The American Speaker: Your Guide to Successful
Speaking. The solicitation was headed with the word ``REVIEW'' and was
printed on glossy paper with a torn left margin, similar in appearance
to an article torn out of a magazine. The bottom of the page included
the words ``page 17'' and ``November 1994,'' suggesting that the
``review'' had appeared on that page of a monthly magazine. The second
page of the ``review'' included the carry-over conclusion of an
unrelated article crossed out by hand that was purportedly ``continued
from page 12.'' Attached to the purported ``review'' was a post-it note
containing the handwritten notation:
[Recipient's name],
Try this.
It works!
J
The Commission's complaint in this matter charges the proposed
respondents with falsely representing that the direct mail solicitation
was a book review written by an independent journalist and reviewer and
had been disseminated in a magazine or other independent publication.
In fact, according to the complaint, the clipping was not an
independent review from a magazine sent by an acquaintance. Rather it
was an advertisement written and sent by the proposed respondents.
The proposed order contains provisions designed to remedy the
alleged violations. Part I of the proposed order prohibits the proposed
respondents from misrepresenting that any product has been
independently reviewed or evaluated. In addition, Part
[[Page 8939]]
I prohibits the proposed respondents from misrepresenting that an
advertisement is an independent article or review or is not a paid
advertisement. The proposed order also contains standard recordkeeping
and reporting requirements, including a provision sunsetting the order
after twenty years under certain circumstances.
The purpose of this analysis is to facilitate public comment on the
proposed order. It is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-5225 Filed 3-5-96; 8:45 am]
BILLING CODE 6750-01-M
