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VALENTINE) Tj 0 -12.72 TD (General Counsel) Tj T* (麻豆传媒 Trade Commission) Tj 0 -25.44 TD (CONSTANCE VECELLIO) Tj 0 -12.72 TD (PABLO M. ZYLBERGLAIT) Tj T* (SARAH L. KNAPP, CA Bar No. 200694) Tj T* (麻豆传媒 Trade Commission) Tj T* (Division of 麻豆传媒) Tj T* (600 Pennsylvania Ave., N.W.) Tj T* (Washington, D.C. 20580) Tj T* (\(202\) 326-2966 voice 326-2558 fax) Tj 0 -25.44 TD (KENNETH ABBE, CA Bar No. 172416) Tj 0 -12.72 TD (Local counsel) Tj T* (麻豆传媒 Trade Commission) Tj T* (10877 Wilshire Blvd., Suite 700) Tj T* (Los Angeles, CA 90024) Tj T* (\(310\) 824-4318 or 824-4325 voice) Tj T* (\(310\) 824-4380 fax) Tj 0 -25.44 TD (Attorneys for Plaintiff) Tj 126 -38.16 TD (UNITED STATES DISTRICT COURT) Tj -7.2 -12.72 TD (CENTRAL DISTRICT OF CALIFORNIA) Tj -112.8 -44.16 TD (FEDERAL TRADE COMMISSION,) Tj 144 -25.44 TD (Plaintiff,) Tj -72 -12.72 TD (v.) Tj -72 -25.44 TD (NATIONAL SUPPLY & DISTRIBUTION CENTER, INC., ) Tj 0 -12.72 TD (a corporation,) Tj 180 0 TD ( ) Tj -180 -12.72 TD (DATA DISTRIBUTION SERVICES, INC.,) Tj 0 -12.72 TD ( a corporation,) Tj T* (STEVEN RAYMAN,) Tj T* ( individually and as an officer of the ) Tj T* (corporate defendants,) Tj T* (LARRY ELLIS, individually,) Tj T* (LEE SIEGEL, individually, and) Tj T* (SCOTT EARL, individually,) Tj 0 -25.44 TD ( Defendants. ) Tj 342.72 190.8 TD (CV\22699-12828) Tj 0 -12.72 TD (HLH \(AJWx\)) Tj 0 -25.44 TD (SECOND AMENDED) Tj 0 -12.72 TD (COMPLAINT FOR) Tj T* (INJUNCTION AND) Tj T* (OTHER) Tj T* (EQUITABLE) Tj T* (RELIEF) Tj -312.72 -142.8 TD (Plaintiff, the 麻豆传媒 Trade Commission \(\223Commission\224\), by) Tj -36 -25.44 TD (its undersigned attorneys, alleges:) Tj ET endstream endobj 9 0 obj 6214 endobj 4 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 8 0 R >> endobj 13 0 obj << /Length 14 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 2 \226) Tj -172.8 660.48 TD (1.) Tj 36 0 TD (This is an action under Sections 13\(b\) and 19 of the) Tj -72 -25.44 TD (麻豆传媒 Trade Commission Act \(\223FTC Act\224\), 15 U.S.C. \247\247 53\(b\)) Tj 0 -25.44 TD (and 57b, and the Telemarketing and Consumer Fraud and Abuse) Tj T* (Prevention Act \(\223Telemarketing Act\224\), 15 U.S.C. \247\247 6101) Tj 0 -26.16 TD /F1 12 Tf (et seq.) Tj 50.4 0 TD /F0 12 Tf (, to secure preliminary and permanent injunctive relief,) Tj -50.4 -26.16 TD (rescission of contracts, restitution, disgorgement, and other) Tj 0 -25.44 TD (equitable relief for defendants\222 deceptive acts or practices) Tj T* (in violation of Section 5\(a\) of the FTC Act, 15 U.S.C. \247 45\(a\),) Tj T* (and the FTC\222s Trade Regulation Rule entitled \223Telemarketing) Tj T* (Sales Rule,\224 16 C.F.R. Part 310, in connection with the sale of) Tj T* (nondurable office supplies.) Tj 147.6 -25.92 TD /F2 12 Tf (JURISDICTION AND VENUE) Tj -111.6 -26.4 TD /F0 12 Tf (2.) Tj 36 0 TD (This Court has jurisdiction over this matter pursuant) Tj -72 -25.44 TD (to 15 U.S.C. \247\247 45\(a\), 53\(b\), 57b, 6102\(c\) and 6105\(b\), and 28) Tj 0 -25.44 TD (U.S.C. \247\247 1331, 1337\(a\) and 1345.) Tj 36 -25.44 TD (3.) Tj 36 0 TD (Venue in the United States District Court for the) Tj -72 -25.44 TD (Central District of California is proper under 15 U.S.C.) Tj 0 -25.44 TD (\247 53\(b\), and 28 U.S.C. \247\247 1391\(b\) and \(c\).) Tj 194.4 -25.92 TD /F2 12 Tf (PLAINTIFF) Tj -158.4 -26.4 TD /F0 12 Tf (4.) Tj 36 0 TD (Plaintiff 麻豆传媒 Trade Commission is an independent) Tj -72 -25.44 TD (agency of the United States Government created by statute. ) Tj 0 -25.44 TD (15 U.S.C. \247\247 41-58. The Commission enforces Section 5\(a\) of) Tj T* (the FTC Act, 15 U.S.C. \247 45\(a\), which prohibits unfair or) Tj T* (deceptive acts or practices in or affecting commerce. The) Tj T* (Commission also enforces the Telemarketing Sales Rule,) Tj ET endstream endobj 14 0 obj 2441 endobj 10 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 13 0 R >> endobj 18 0 obj << /Length 19 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 3 \226) Tj -208.8 660.48 TD (16 C.F.R. Part 310, which prohibits deceptive or abusive) Tj 0 -25.44 TD (telemarketing practices. The Commission may initiate federal) Tj T* (district court proceedings by its own attorneys to enjoin) Tj T* (violations of the FTC Act and the Telemarketing Sales Rule and) Tj T* (to secure such equitable relief as may be appropriate in each) Tj T* (case, including restitution for injured consumers. 15 U.S.C.) Tj T* (\247\247 53\(b\), 57b and 6105\(b\).) Tj 190.8 -25.92 TD /F2 12 Tf (DEFENDANTS) Tj -154.8 -26.4 TD /F0 12 Tf (5.) Tj 36 0 TD (Defendant National Supply & Distribution Center,) Tj -72 -25.44 TD (Inc., \("NSDC"\), is a Nevada corporation with its offices and) Tj 0 -25.44 TD (principal place of business located at 7318 Topanga Canyon) Tj T* (Boulevard, Suite 200, Canoga Park, California. Defendant NSDC) Tj T* (transacts or has transacted business in the Central District of) Tj T* (California.) Tj 36 -25.44 TD (6.) Tj 36 0 TD (Defendant Data Distribution Services, Inc., \("DDS"\),) Tj -72 -25.44 TD (is a Nevada corporation with its offices and principal place of) Tj 0 -25.44 TD (business located at 22122 Sherman Way, Suite #105, Canoga Park) Tj T* (CA 91303. Defendant DDS transacts or has transacted business) Tj T* (in the Central District of California.) Tj 36 -25.44 TD (7.) Tj 36 0 TD (Defendant Steven Rayman is an owner and president of) Tj -72 -25.44 TD (NSDC and DDS. Individually or in concert with others, he has) Tj 0 -25.44 TD (formulated, directed, controlled or participated in the acts) Tj T* (and practices of the corporate defendants, including the) Tj T* (various acts and practices set forth herein. He resides in, and) Tj ET endstream endobj 19 0 obj 2179 endobj 17 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 18 0 R >> endobj 21 0 obj << /Length 22 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 4 \226) Tj -208.8 660.48 TD (transacts or has transacted business in, the Central District) Tj 0 -25.44 TD (of California.) Tj 36 -25.44 TD (8.) Tj 36 0 TD (Defendant Larry Ellis is an owner of NSDC and DDS. ) Tj -72 -25.44 TD (He is listed on the Telephonic Seller Registrations filed by) Tj 0 -25.44 TD (NSDC and DDS with the California Attorney General\222s office as) Tj T* (\223an individual who will solicit\224 on their behalf. In his) Tj T* (dealings with third parties on behalf of the corporations he) Tj T* (represents, or has represented, that he is the president of DDS) Tj T* (and general manager of both NSDC and DDS. His duties at NSDC) Tj T* (and DDS include collections and responding to consumer) Tj T* (complaints. Defendant Ellis exercises a degree of control over) Tj T* (the corporate defendants equivalent to that of a corporate) Tj T* (officer and he and defendant Siegel and defendant Rayman) Tj T* (receive approximately equal compensation for their work on) Tj T* (behalf of the corporations. Individually or in concert with) Tj T* (others, he has formulated, directed, controlled or participated) Tj T* (in the acts and practices of the corporate defendants,) Tj T* (including the various acts and practices set forth herein. He) Tj T* (resides in, and transacts or has transacted business in, the) Tj T* (Central District of California.) Tj 36 -25.44 TD (9.) Tj 36 0 TD (Defendant Lee Siegel is an owner of NSDC and DDS. He) Tj -72 -25.44 TD (is listed on the Telephonic Seller Registrations filed by NSDC) Tj 0 -25.44 TD (and DDS with the California Attorney General\222s office as \223an) Tj T* (individual who will solicit\224 on their behalf. At various) Tj T* (times, he represents or has represented himself as the general) Tj ET endstream endobj 22 0 obj 2239 endobj 20 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 21 0 R >> endobj 24 0 obj << /Length 25 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 5 \226) Tj -208.8 660.48 TD (manager or vice-president in charge of sales of NSDC or DDS. ) Tj 0 -25.44 TD (He has control over the day-to-day functions of the) Tj T* (corporations including, but not limited to, sales, marketing) Tj T* (and operations. He is an authorized signatory on the corporate) Tj T* (bank accounts. Defendant Siegel exercises a degree of control) Tj T* (over the corporate defendants equivalent to that of a corporate) Tj T* (officer and he and defendant Ellis and defendant Rayman receive) Tj T* (approximately equal compensation for their work on behalf of) Tj T* (the corporations. Individually or in concert with others, he) Tj T* (has formulated, directed, controlled or participated in the) Tj T* (acts and practices of the corporate defendants, including the) Tj T* (various acts and practices set forth herein. He resides in,) Tj T* (and transacts or has transacted business in, the Central) Tj T* (District of California.) Tj 36 -25.44 TD (10.) Tj 36 0 TD (Defendant Scott Earl is a manager of NSDC and DDS. ) Tj -72 -25.44 TD (Individually or in concert with others, he has formulated,) Tj 0 -25.44 TD (directed, controlled or participated in the acts and practices) Tj T* (of the corporate defendants, including the various acts and) Tj T* (practices set forth herein. He resides in, and transacts or has) Tj T* (transacted business in, the Central District of California.) Tj 198 -25.92 TD /F2 12 Tf (COMMERCE) Tj -162 -26.4 TD /F0 12 Tf (11.) Tj 36 0 TD (At all times material hereto, defendants have been) Tj -72 -25.44 TD (engaged in the business of offering for sale and selling,) Tj 0 -25.44 TD (through telemarketers, nondurable office supplies, including) Tj ET endstream endobj 25 0 obj 2179 endobj 23 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 24 0 R >> endobj 27 0 obj << /Length 28 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 6 \226) Tj -208.8 660.48 TD (photocopier toner, in or affecting commerce, as \223commerce\224 is) Tj 0 -25.44 TD (defined in Section 4 of the FTC Act, 15 U.S.C. \247 44.) Tj 115.2 -25.92 TD /F2 12 Tf (DEFENDANTS\222 BUSINESS ACTIVITIES) Tj -79.2 -26.4 TD /F0 12 Tf (12.) Tj 36 0 TD (Since at least 1997 and continuing thereafter,) Tj -72 -25.44 TD (defendants Steve Rayman, Larry Ellis, Lee Siegel, Scott Earl) Tj 0 -25.44 TD (and NSDC have engaged in a plan, program or campaign to sell) Tj T* (nondurable office supplies, including photocopier toner,) Tj T* (through interstate telephone calls throughout the United) Tj T* (States.) Tj 36 -25.44 TD (13.) Tj 36 0 TD (Since at least 1998 and continuing thereafter,) Tj -72 -25.44 TD (defendants Steve Rayman, Larry Ellis, Lee Siegel, Scott Earl) Tj 0 -25.44 TD (and DDS have engaged in a plan, program or campaign to sell) Tj T* (nondurable office supplies, including photocopier toner,) Tj T* (through interstate telephone calls throughout the United) Tj T* (States.) Tj 36 -25.44 TD (14.) Tj 36 0 TD (Defendants, directly or through sales) Tj -72 -25.44 TD (representatives, have contacted various organizations by) Tj 0 -25.44 TD (telephone, and in numerous instances, have obtained by) Tj T* (telephone the name of the person responsible for ordering) Tj T* (office supplies, then have shipped unordered merchandise and an) Tj T* (invoice to the organization, listing as "buyer" the name of the) Tj T* (person responsible for ordering office supplies.) Tj 36 -25.44 TD (15.) Tj 36 0 TD (After receiving an invoice from defendants,) Tj -72 -25.44 TD (recipients have, in numerous instances, paid the invoice,) Tj 0 -25.44 TD (mistakenly believing that someone in their organization has) Tj ET endstream endobj 28 0 obj 2225 endobj 26 0 obj << /Type /Page /Parent 5 0 R /Resources <> /ProcSet 2 0 R >> /Contents 27 0 R >> endobj 31 0 obj << /Length 32 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 7 \226) Tj -208.8 660.48 TD (ordered supplies from defendants. The prices of defendants') Tj 0 -25.44 TD (products, reflected on the invoices, are substantially higher) Tj T* (than prices for similar products available on the market.) Tj 36 -25.44 TD (16.) Tj 36 0 TD (In numerous instances, when a recipient contends it) Tj -72 -25.44 TD (has not ordered the supplies or attempts to return the) Tj 0 -25.44 TD (unordered supplies, defendants, directly or through their) Tj T* (representatives, represent that the recipient has authorized) Tj T* (the purchase and is legally obliged to pay for it and attempt) Tj T* (to obtain payment by refusing to cancel an invoice or to accept) Tj T* (the return of supplies unless the recipient pays a substantial) Tj T* ("restocking" fee. ) Tj 36 -25.44 TD (17.) Tj 36 0 TD (In numerous instances, defendants, directly or) Tj -72 -25.44 TD (through sales representatives, have contacted various) Tj 0 -25.44 TD (organizations by telephone and have represented, expressly or) Tj T* (by implication, that \(a\) they are, or are associated with, the) Tj T* (consumer's regular supplier of photocopier toner, and that \(b\)) Tj T* (they are giving the consumers the opportunity to purchase toner) Tj T* (at a special price. Often in making such calls, defendants) Tj T* (have failed to disclose promptly and in a clear and conspicuous) Tj T* (manner their identity or the sales purpose of the call.) Tj 36 -25.44 TD (18.) Tj 36 0 TD (In numerous instances, consumers have placed orders) Tj -72 -25.44 TD (for toner with defendants' sales representatives, believing) Tj 0 -25.44 TD (them to be associated with the consumers' regular suppliers of) Tj T* (toner and believing that the price would be the same as or) Tj ET endstream endobj 32 0 obj 2227 endobj 29 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 31 0 R >> endobj 34 0 obj << /Length 35 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 8 \226) Tj -208.8 660.48 TD (lower than that charged by the regular supplier in the recent) Tj 0 -25.44 TD (past.) Tj 36 -25.44 TD (19.) Tj 36 0 TD (In numerous instances, when a recipient contends it) Tj -72 -25.44 TD (was misled as to the identity of the supplier when it ordered) Tj 0 -25.44 TD (the supplies or attempts to return the supplies because it was) Tj T* (misled as to the identity of the supplier, defendants, directly) Tj T* (or through their representatives, represent that the recipient) Tj T* (has authorized the purchase and is legally obliged to pay for) Tj T* (it and attempt to obtain payment by refusing to cancel an) Tj T* (invoice or to accept the return of supplies unless the) Tj T* (recipient pays a substantial "restocking" fee. ) Tj 93.6 -25.92 TD /F2 12 Tf (VIOLATIONS OF SECTION 5\(a\) OF FTC ACT) Tj 108 -26.88 TD (COUNT I) Tj -165.6 -26.4 TD /F0 12 Tf (20.) Tj 36 0 TD (In numerous instances, in connection with the sale,) Tj -72 -25.44 TD (offering for sale, or distribution of nondurable office) Tj 0 -25.44 TD (supplies, including photocopier toner, defendants have) Tj 0 -26.16 TD (represented, expressly or by implication through, ) Tj 360 0 TD /F1 12 Tf (inter alia) Tj 72 0 TD /F0 12 Tf (,) Tj -432 -26.16 TD (telephone calls, letters, invoices, packing slips and/or) Tj 0 -25.44 TD (shipment of toner, that businesses and other entities ordered) Tj T* (the office supplies that were shipped and/or billed to them by) Tj T* (defendants.) Tj 36 -25.44 TD (21.) Tj 36 0 TD (In truth and in fact, businesses and other entities) Tj -72 -25.44 TD (did not order the photocopier toner that was shipped and/or) Tj 0 -25.44 TD (billed to them by defendants.) Tj ET endstream endobj 35 0 obj 2181 endobj 33 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 34 0 R >> endobj 37 0 obj << /Length 38 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 291.6 50.16 TD (\226 9 \226) Tj -172.8 660.48 TD (22.) Tj 36 0 TD (Therefore, the representations set forth in paragraph) Tj -72 -25.44 TD (20 are false and misleading and constitute deceptive acts or) Tj 0 -25.44 TD (practices in violation of Section 5\(a\) of the FTC Act,) Tj T* (15 U.S.C. \247 45\(a\).) Tj 198 -25.92 TD /F2 12 Tf (COUNT II) Tj -162 -26.4 TD /F0 12 Tf (23.) Tj 36 0 TD (In numerous instances, in connection with the sale,) Tj -72 -25.44 TD (offering for sale, or distribution of nondurable office) Tj 0 -25.44 TD (supplies, including photocopier toner, when a business or other) Tj T* (entity receives office supplies from defendants that it did not) Tj T* (order or that it ordered only because it believed, based on) Tj T* (defendants' representations, that defendants were its regular) Tj T* (supplier and would charge the same price it had been paying for) Tj T* (office supplies, defendants have represented, expressly or by) Tj 0 -26.16 TD (implication, through, ) Tj 158.4 0 TD /F1 12 Tf (inter alia) Tj 72 0 TD /F0 12 Tf (, telephone calls, letters,) Tj -230.4 -26.16 TD (invoices, packing slips, and/or shipment of office supplies) Tj 0 -25.44 TD (that the recipient has an obligation to pay a restocking fee) Tj T* (before returning the office supplies. ) Tj 36 -25.44 TD (24.) Tj 36 0 TD (In truth and in fact, the recipient has no obligation) Tj -72 -25.44 TD (to pay a restocking fee before returning office supplies) Tj 0 -25.44 TD (received from defendants. ) Tj 36 -25.44 TD (25.) Tj 36 0 TD (Therefore, the representations set forth in paragraph) Tj -72 -25.44 TD (23 are false and misleading and constitute deceptive acts or) Tj 0 -25.44 TD (practices in violation of Section 5\(a\) of the FTC Act,) Tj T* (15 U.S.C. \247 45\(a\).) Tj ET endstream endobj 38 0 obj 2239 endobj 36 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 37 0 R >> endobj 40 0 obj << /Length 41 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 10 \226) Tj -129.6 660 TD /F2 12 Tf (VIOLATIONS OF THE TELEMARKETING SALES RULE) Tj -39.6 -27.12 TD /F0 12 Tf (26.) Tj 36 0 TD (In the Telemarketing Act, 15 U.S.C. \247 6101 ) Tj 309.6 0 TD /F1 12 Tf (et seq.) Tj 50.4 0 TD /F0 12 Tf (,) Tj -432 -26.16 TD (Congress directed the Commission to prescribe rules prohibiting) Tj 0 -25.44 TD (deceptive and abusive telemarketing acts or practices. On) Tj T* (August 16, 1995, the Commission promulgated the Telemarketing) Tj T* (Sales Rule, 16 C.F.R. Part 310, with a Statement of Basis and) Tj T* (Purpose, 60 Fed. Reg. 43842 \(August 23, 1995\). The) Tj T* (Telemarketing Sales Rule became effective December 31, 1995,) Tj T* (and since then has remained in full force and effect. ) Tj 36 -25.44 TD (27.) Tj 36 0 TD (Telephone calls between a telemarketer and a business) Tj -72 -25.44 TD (that involve the retail sale of nondurable office supplies are) Tj 0 -25.44 TD (subject to the Telemarketing Sales Rule\222s prohibitions against) Tj T* (deceptive and abusive telemarketing acts or practices. ) Tj T* (16 C.F.R. \247 310.6\(g\). In its Statement of Basis and Purpose) Tj T* (for the Telemarketing Sales Rule, the Commission stated that:) Tj 72 -25.44 TD (. . . the Commission\222s enforcement experience) Tj 0 -25.44 TD (against deceptive telemarketers indicates that) Tj T* (office and cleaning supplies have been by far) Tj T* (the most significant business-to-business) Tj T* (problem area: such telemarketing falls within) Tj T* (the Commission\222s definition of deceptive) Tj T* (telemarketing acts or practices.) Tj -72 -25.44 TD (60 Fed. Reg. 43842, 43861 \(Aug. 23, 1995\).) Tj 36 -25.44 TD (28.) Tj 36 0 TD (The Telemarketing Sales Rule prohibits sellers and) Tj -72 -25.44 TD (telemarketers from making a false or misleading statement to) Tj ET endstream endobj 41 0 obj 2288 endobj 39 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 40 0 R >> endobj 43 0 obj << /Length 44 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 11 \226) Tj -205.2 660.48 TD (induce any person to pay for goods or services. 16 C.F.R.) Tj 0 -25.44 TD (\247 310.3\(a\)\(4\).) Tj 36 -25.44 TD (29.) Tj 36 0 TD (The Telemarketing Sales Rule requires telemarketers) Tj -72 -25.44 TD (in outbound telephone calls to disclose promptly and in a clear) Tj 0 -25.44 TD (and conspicuous manner the identity of the seller. 16 C.F.R.) Tj T* (\247 310.4\(d\)\(1\).) Tj 36 -25.44 TD (30.) Tj 36 0 TD (The Telemarketing Sales Rule also requires) Tj -72 -25.44 TD (telemarketers in outbound telephone calls to disclose promptly) Tj 0 -25.44 TD (and in a clear and conspicuous manner that the purpose of the) Tj T* (call is to sell goods and services. 16 C.F.R. \247 310.4\(d\)\(2\).) Tj 36 -25.44 TD (31.) Tj 36 0 TD ( The Commission addressed the issue of what) Tj -72 -25.44 TD (constitutes a \223prompt\224 disclosure in its Statement of Basis and) Tj 0 -25.44 TD (Purpose for the Telemarketing Sales Rule, stating that it:) Tj 72 -26.16 TD (\223 . . .intends that [the TSR] ) Tj 216 0 TD /F1 12 Tf (not) Tj 21.6 0 TD /F0 12 Tf ( permit) Tj -237.6 -26.16 TD (the disclosure of the identity of the) Tj 0 -25.44 TD (seller and the promotional purpose of the) Tj T* (call at the end of the sales pitch. At a) Tj T* (minimum . . . disclosures should be made) Tj T* (prior to the time any substantive) Tj T* (information about a prize, product or) Tj T* (service is conveyed to the consumer.\224) Tj -72 -25.44 TD (60 Fed. Reg. 43842, 43856 \(Aug. 23, 1995\).) Tj 36 -25.44 TD (32.) Tj 36 0 TD (Pursuant to Section 3\(c\) of the Telemarketing Act,) Tj -72 -25.44 TD (15 U.S.C. \247 6102 \(c\), and Section 18\(d\)\(3\) of the FTC Act,) Tj 0 -25.44 TD (15 U.S.C. \247 57a\(d\)\(3\), violations of the Telemarketing Sales) Tj ET endstream endobj 44 0 obj 2247 endobj 42 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 43 0 R >> endobj 46 0 obj << /Length 47 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 12 \226) Tj -205.2 660.48 TD (Rule constitute unfair or deceptive acts or practices in or) Tj 0 -25.44 TD (affecting commerce, in violation of Section 5\(a\) of the) Tj T* (FTC Act, 15 U.S.C. \247 45\(a\).) Tj 36 -25.44 TD (33.) Tj 36 0 TD (Defendants are \223telemarketers\224 or \223sellers\224 engaged) Tj -72 -25.44 TD (in \223telemarketing\224 as those terms are defined in the) Tj 0 -25.44 TD (Telemarketing Sales Rule, 16 C.F.R. \247 310.2\(r\), \(t\) and \(u\).) Tj 194.4 -25.92 TD /F2 12 Tf (COUNT III) Tj -144 -26.88 TD (FALSE AND MISLEADING STATEMENTS TO INDUCE PAYMENT) Tj -14.4 -26.4 TD /F0 12 Tf (34.) Tj 36 0 TD (In numerous instances, in connection with the) Tj -72 -25.44 TD (telemarketing of nondurable office supplies, including) Tj 0 -25.44 TD (photocopier toner, defendants have made false or misleading) Tj T* (statements to induce the consumer to pay for photocopier toner,) Tj T* (including, but not limited to, misrepresenting directly or by) Tj T* (implication that \(a\) they are the consumer\222s regular supplier) Tj T* (or that they are associated with the photocopier manufacturer;) Tj T* (\(b\) the price of the photocopier toner used by the consumer is) Tj T* (about to increase substantially; \(c\) they will continue) Tj T* (charging for photocopier toner the price the consumer has been) Tj T* (paying; \(d\) the consumer ordered the toner that was shipped) Tj T* (and/or billed to the consumer by the defendants; and \(e\) if the) Tj T* (consumer wants to return a shipment, the consumer has an) Tj T* (obligation to pay a restocking fee; thereby violating 16 C.F.R.) Tj T* (\247 310.3\(a\)\(4\).) Tj ET endstream endobj 47 0 obj 2110 endobj 45 0 obj << /Type /Page /Parent 30 0 R /Resources <> /ProcSet 2 0 R >> /Contents 46 0 R >> endobj 50 0 obj << /Length 51 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 13 \226) Tj -7.2 660 TD /F2 12 Tf (COUNT IV) Tj -118.8 -26.88 TD (FAILURE TO DISCLOSE SALES PURPOSE OF CALL) Tj -43.2 -26.4 TD /F0 12 Tf (35.) Tj 36 0 TD (In numerous instances, in connection with the) Tj -72 -25.44 TD (telemarketing of nondurable office supplies, including) Tj 0 -25.44 TD (photocopier toner, representatives of NSDC and DDS who call) Tj T* (consumers say or imply that they are checking information about) Tj T* (the consumer\222s photocopy machine, confirming the person who) Tj T* (orders office supplies, verifying the consumer\222s standing) Tj T* (order, or otherwise fail to disclose that the reason they are) Tj T* (calling is to sell office supplies or wait until the end of the) Tj T* (call to disclose its sales purpose. ) Tj 36 -25.44 TD (36.) Tj 36 0 TD ( Thus, defendants have failed to disclose promptly) Tj -72 -25.44 TD (and in a clear and conspicuous manner to the person receiving ) Tj 0 -25.44 TD (\223outbound telephone calls,\224 as that term is defined in the) Tj T* (Telemarketing Sales Rule, 16 C.F.R. \247 310.2\(n\), that the) Tj T* (purpose of the call is to sell goods, in violation of 16 C.F.R.) Tj T* (\247 310.4\(d\)\(2\).) Tj 201.6 -25.92 TD /F2 12 Tf (COUNT V) Tj -140.4 -26.88 TD (FAILURE TO DISCLOSE THE IDENTITY OF THE SELLER) Tj -25.2 -26.4 TD /F0 12 Tf (37.) Tj 36 0 TD (In numerous instances, in connection with the) Tj -72 -25.44 TD (telemarketing of nondurable office supplies, including) Tj 0 -25.44 TD (photocopier toner, representatives of NSDC and DDS who call) Tj T* (consumers say or imply that they are that consumer\222s regular) Tj T* (supplier, that they are affiliated with the manufacturer of the) Tj T* (consumer\222s photocopier, or otherwise fail to disclose their) Tj ET endstream endobj 51 0 obj 2227 endobj 48 0 obj << /Type /Page /Parent 49 0 R /Resources <> /ProcSet 2 0 R >> /Contents 50 0 R >> endobj 53 0 obj << /Length 54 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 14 \226) Tj -205.2 660.48 TD (affiliation with NSDC and DDS, or wait until the end of the) Tj 0 -25.44 TD (call to disclose their identity. ) Tj 36 -25.44 TD (38.) Tj 36 0 TD (Thus, in \223outbound telephone calls,\224 as that term is) Tj -72 -25.44 TD (defined in the Telemarketing Sales Rule, 16 C.F.R. \247 310.2\(n\), ) Tj 0 -25.44 TD (defendants have failed to disclose promptly and in a clear and) Tj T* (conspicuous manner their identity to the person receiving the) Tj T* (call, thereby violating 16 C.F.R. \247 310.4\(d\)\(1\).) Tj 172.8 -25.92 TD /F2 12 Tf (CONSUMER INJURY) Tj -136.8 -26.4 TD /F0 12 Tf (39.) Tj 36 0 TD (Consumers throughout the United States have suffered) Tj -72 -25.44 TD (substantial monetary loss as a result of defendants\222 unlawful) Tj 0 -25.44 TD (acts or practices. In addition, defendants have been unjustly) Tj T* (enriched as a result of their unlawful practices. Absent) Tj T* (injunctive relief by this Court, defendants are likely to) Tj T* (continue to injure consumers and harm the public interest.) Tj 104.4 -25.92 TD /F2 12 Tf (THIS COURT\222S POWER TO GRANT RELIEF) Tj -68.4 -26.4 TD /F0 12 Tf (40.) Tj 36 0 TD (Section 13\(b\) of the FTC Act, 15 U.S.C. \247 53\(b\),) Tj -72 -25.44 TD (empowers the Court to grant injunctive and other equitable) Tj 0 -25.44 TD (ancillary relief, including consumer redress, disgorgement, and) Tj T* (restitution, to prevent and remedy violations of any provision) Tj T* (of law enforced by the Commission.) Tj 36 -25.44 TD (41.) Tj 36 0 TD (Section 19 of the FTC Act, 15 U.S.C. \247 57b,) Tj -72 -25.44 TD (authorizes this Court to award such relief as is necessary to) Tj 0 -25.44 TD (redress the injury to consumers or others resulting from) Tj T* (defendants\222 violations of the Telemarketing Sales Rule,) Tj ET endstream endobj 54 0 obj 2285 endobj 52 0 obj << /Type /Page /Parent 49 0 R /Resources <> /ProcSet 2 0 R >> /Contents 53 0 R >> endobj 56 0 obj << /Length 57 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 15 \226) Tj -205.2 660.48 TD (including the rescission and reformation of contracts and the) Tj 0 -25.44 TD (refund of monies.) Tj 36 -25.44 TD (42.) Tj 36 0 TD (The Court, in the exercise of its equitable) Tj -72 -25.44 TD (jurisdiction, may award other ancillary relief to remedy injury) Tj 0 -25.44 TD (caused by defendants\222 violations.) Tj 165.6 -25.92 TD /F2 12 Tf (PRAYER FOR RELIEF) Tj -129.6 -26.4 TD /F0 12 Tf (Wherefore, Plaintiff requests that this Court, as) Tj -36 -25.44 TD (authorized by Sections 13\(b\) and 19 of the FTC Act, 15 U.S.C.) Tj 0 -25.44 TD (\247\247 53\(b\) and 57b, and Section 6\(b\) of the Telemarketing and) Tj T* (Consumer Fraud and Abuse Prevention Act, 15 U.S.C. \247 6105\(b\),) Tj T* (and pursuant to its own equitable powers:) Tj 36 -25.44 TD (1.) Tj 36 0 TD (Award plaintiff such temporary preliminary injunctive) Tj -72 -25.44 TD (and ancillary relief as may be necessary to avert the) Tj 0 -25.44 TD (likelihood of consumer injury during the pendency of this) Tj T* (action, and to preserve the possibility of effective final) Tj T* (relief;) Tj 36 -25.44 TD (2.) Tj 36 0 TD (Permanently enjoin the defendants from violating the) Tj -72 -25.44 TD (Telemarketing Sales Rule and the FTC Act, as alleged herein;) Tj 36 -25.44 TD (3.) Tj 36 0 TD (Award such relief as the Court finds necessary to) Tj -72 -25.44 TD (redress injury to consumers resulting from the defendants\222) Tj 0 -25.44 TD (violations of the Telemarketing Sales Rule and the FTC Act,) Tj T* (including, but not limited to, rescission of contracts, the) Tj T* (refund of monies paid, and the disgorgement of ill-gotten) Tj T* (monies; and) Tj T* (//) Tj ET endstream endobj 57 0 obj 2146 endobj 55 0 obj << /Type /Page /Parent 49 0 R /Resources <> /ProcSet 2 0 R >> /Contents 56 0 R >> endobj 59 0 obj << /Length 60 0 R >> stream BT 64.8 710.64 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (1) Tj 0 -25.44 TD (2) Tj T* (3) Tj T* (4) Tj T* (5) Tj T* (6) Tj T* (7) Tj T* (8) Tj T* (9) Tj -7.2 -25.44 TD (10) Tj 0 -25.44 TD (11) Tj T* (12) Tj T* (13) Tj T* (14) Tj T* (15) Tj T* (16) Tj T* (17) Tj T* (18) Tj T* (19) Tj T* (20) Tj T* (21) Tj T* (22) Tj T* (23) Tj T* (24) Tj T* (25) Tj T* (26) Tj ET 74.16 18 0.96 756 re f 76.08 18 0.96 756 re f 545.52 18 0.96 756 re f BT 288 50.16 TD (\226 16 \226) Tj -169.2 660.48 TD (4.) Tj 36 0 TD (Award plaintiff the costs of bringing this action, as) Tj -72 -25.44 TD (well as such other and additional equitable relief as the Court) Tj 0 -25.44 TD (may determine to be just and proper.) Tj -0.48 -31.44 TD (DATE: ) Tj ET 125.52 626.4 121.44 0.72 re f BT 268.8 628.32 TD (Respectfully submitted,) Tj 0 -25.44 TD (DEBRA A. VALENTINE) Tj 0 -12.72 TD (General Counsel) Tj ET 268.8 550.08 261.6 0.72 re f BT 268.8 539.28 TD (CONSTANCE M. VECELLIO) Tj 0 -12.72 TD (PABLO M. ZYLBERGLAIT) Tj T* (SARAH L. 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