Federal Trade Commission v. Itmedia Solutions LLC et al

Filing 12

STIPULATED ORDER FOR PERMANENT INJUNCTION 8 AND JUDGMENT by Judge Dale S. Fischer is entered in favor of the Plaintiff against Individual Defendants and Corporate Defendants, jointly and severally. Defendants are ordered to pay to Plaintiff $1,500,000.00. (MD JS-6, Case Terminated). See Judgment for specifics. (jp)

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JS-6 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT FOR CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION 9 10 11 12 13 FEDERAL TRADE COMMISSION, Case No. 2:22-cv-00073 DSF Plaintiff, vs. 14 15 16 17 18 19 20 21 22 23 ITMEDIA SOLUTIONS LLC, DEV.XYZ LLC, TEAM.XYZ LLC, 123 LLC, XYZ LLC, GREAT LLC, General LLC, MEDIA LLC, ADV MARKET DIRECT LLC, Direct Ad Sales LLC, MARKETING SOLUTIONS 33 LLC, DEC MKT LLC, Ads Full3 LLC, Sunset Marketing Services LLC, Arrow Eagle, LLC, Arrow Hawk, LLC, Gen Ads, LLC, Michael Ambrose, Daniel Negari, Jason Ramin, Grant Carpenter, Anisha Hancock, and Sione Kaufusi. STIPULATED ORDER FOR PERMANENT INJUNCTION AND JUDGMENT Defendants. 24 Page 1 of 20 1 Plaintiff, the Federal Trade Commission (“Commission” or “Plaintiff”), filed 2 its Complaint for Civil Penalties, Permanent Injunction, and Other Equitable Relief 3 ( “Complaint”), for a permanent injunction, civil penalties, and other equitable 4 relief in this matter, pursuant to Sections 13(b) and 16(a)(1) of the Federal Trade 5 Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 56(a)(1). Plaintiff and 6 Defendants stipulated to the entry of this Stipulated Order for Permanent 7 Injunction and Judgment (“Order”) to resolve all matters in dispute in this action 8 between them. 9 THEREFORE, IT IS ORDERED as follows: 10 FINDINGS 11 1. This Court has jurisdiction over this matter. 12 2. The Complaint charges that Defendants participated in deceptive, unfair, and 13 unlawful acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 14 § 45(a); and Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. 15 §§ 1681b and 1681e, in the course of their lead generation activities. 16 3. 17 except as specifically stated in this Order. Only for purposes of this action, 18 Defendants admit the facts necessary to establish jurisdiction. 19 4. 20 Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through 21 the date of this Order, and agree to bear their own costs and attorney fees. 22 5. 23 contest the validity of this Order. Defendants neither admit nor deny any of the allegations in the Complaint, Defendants waive any claim that they may have under the Equal Access to Defendants and Plaintiff waive all rights to appeal or otherwise challenge or 24 Page 2 of 20 1 DEFINITIONS 2 For the purpose of this Order, the following definitions apply: 3 A. 4 any information by a Consumer Reporting Agency bearing on a consumer’s credit 5 worthiness, credit standing, credit capacity, character, general reputation, personal 6 characteristics, or mode of living which is used or expected to be used or collected 7 in whole or in part for the purpose of serving as a factor in establishing the 8 consumer’s eligibility for 9 “Consumer Report” means any written, oral, or other communication of 1. 10 credit or insurance to be used primarily for personal, family, or household purposes; 11 2. employment purposes; or 12 3. any other Permissible Purpose. 13 B. 14 fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in 15 part in the practice of assembling or evaluating consumer credit information or 16 other information on consumers for the purpose of furnishing Consumer Reports to 17 third parties, and which uses any means or facility of interstate commerce for the 18 purpose of preparing or furnishing Consumer Reports. 19 C. 20 Defendants, individually, collectively, or in any combination. 21 “Consumer Reporting Agency” means any Person which, for monetary “Defendants” means all of the Individual Defendants and the Corporate 1. “Corporate Defendants” means ITMEDIA SOLUTIONS LLC, 22 DEV.XYZ LLC, TEAM.XYZ LLC, 123 LLC, XYZ LLC, GREAT 23 LLC, General LLC, MEDIA LLC, ADV MARKET DIRECT LLC, 24 Direct Ad Sales LLC, MARKETING SOLUTIONS 33 LLC, DEC Page 3 of 20 1 MKT LLC, Ads Full3 LLC, Sunset Marketing Services LLC, Arrow 2 Eagle, LLC, Arrow Hawk, LLC, Gen Ads, LLC, and their successors 3 and assigns. 2. 4 “Individual Defendants” means Michael Ambrose, Daniel Negari, Grant Carpenter, Jason Ramin, Anisha Hancock, and Sione Kaufusi. 5 6 D. “Financial Product or Service” means any product, service, plan, or 7 program represented, expressly or by implication, to 1. 8 provide any consumer, arrange for any consumer to receive, or assist any consumer in receiving a loan or other extension of credit; 9 2. 10 provide any consumer, arrange for any consumer to receive, or assist any consumer in receiving credit, debit, or stored value cards; 11 3. 12 improve, repair, or arrange to improve or repair any consumer’s credit record, credit history, or credit rating; or 13 4. 14 provide information about or provide assistance to improve any consumer’s credit record, credit history, or credit rating. 15 16 E. 17 including a corporation, partnership, proprietorship, association, cooperative, or 18 any other group or combination acting as an entity. 19 F. 20 “Person” means a natural person, organization, or other legal entity, “Permissible Purpose” means 1. in connection with a credit transaction involving the consumer on 21 whom the information is to be furnished and involving the extension 22 of credit to, or review or collection of an account of, the consumer; or 23 2. for employment purposes; or 24 Page 4 of 20 1 3. 2 in connection with the underwriting of insurance involving the consumer; or 3 4. in connection with a determination of the consumer’s eligibility for a 4 license or other benefit granted by a governmental instrumentality 5 required by law to consider an applicant’s financial responsibility or 6 status; or 7 5. 8 in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or 6. 9 otherwise in connection with a legitimate business need for the 10 information 11 i. in connection with a business transaction that is initiated by the consumer; or 12 ii. 13 to review an account to determine whether the consumer continues to meet the terms of the account. 14 15 G. “Personal Information” means information from or about an individual 16 consumer including but not limited to the following: (1) a first name and last 17 name; (2) a home or other physical address, including street name and name of city 18 or town; (3) an email address or other online contact information; (4) a telephone 19 number; (5) a Social Security number; (6) a driver’s license number or other 20 government-issued identification number; (7) a financial institution account 21 number; (8) credit or debit card information; (9) precise geolocation data of an 22 individual or mobile device, including but not limited to GPS-based, WiFi-based, 23 or cell-based location information; or (10) an authentication credential, such as a 24 username and password. Page 5 of 20 1 H. 2 consumer: (1) a Social Security number; (2) financial institution account number; 3 (3) credit or debit card information; (4) taxpayer identification number; 4 (5) passport number; (6) a driver’s license number or other government-issued 5 identification number; (7) date of birth (other than year); (8) any other information 6 by which a consumer’s financial account can be accessed, or by which a consumer 7 might be charged for goods or services, including through third parties such as 8 telecommunications carriers. “Sensitive Personal Information” means any of the following about a 9 ORDER 10 I. PROHIBITED MISREPRESENTATIONS 11 IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, 12 and attorneys, and all other persons in active concert or participation with any of 13 them, who receive actual notice of this Order, whether acting directly or indirectly, 14 in connection with the advertising, marketing, promotion, offering for sale, or 15 selling of any product or service, are permanently restrained and enjoined from: 16 A. 17 implication, 18 misrepresenting or assisting others in misrepresenting, expressly or by 1. the entities and types of entities with which Defendants will share consumers’ Personal Information, and for what purpose; 19 20 2. that Defendants will assist consumers in obtaining a loan; 21 3. that a product or service is available without regard for a consumer’s 22 credit score or history; or 23 24 Page 6 of 20 4. 1 any other fact material to consumers, such as the total costs; any material restrictions, limitations, or conditions; or any material aspect 2 of the product or service’s performance, efficacy, nature, or central 3 characteristics; and 4 B. making any representation, expressly or by implication, unless the 5 representation is non-misleading, and, at the time such representation is made, 6 Defendants possess and rely upon competent and reliable evidence that is sufficient 7 to substantiate that the representation is true. 8 II. INJUNCTION CONCERNING THE SALE, TRANSFER, OR DISCLOSURE OF SENSITIVE PERSONAL INFORMATION 9 10 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 11 employees, and attorneys, and all other persons or entities in active concert or 12 participation with any of them, who receive actual notice of this Order, whether 13 acting directly or indirectly, are permanently restrained and enjoined from, or 14 assisting others in, selling, transferring, or otherwise disclosing a consumer’s 15 Sensitive Personal Information to any Person, unless the consumer has requested a 16 Financial Product or Service; and 17 A. the sale, transfer, or disclosure is necessary for a third party to provide the 18 requested Financial Product or Service; 19 B. Defendants have the consumer’s express, informed consent for the sale, 20 transfer, or disclosure; and 21 C. Defendants have complied with Section III.A and Section III.B for that 22 Person. 23 24 Page 7 of 20 1 Provided, however, that this Section II shall not place conditions on Defendants 2 transferring or otherwise disclosing a consumer’s Sensitive Personal Information to 3 the extent necessary to process payment for any product or service sold by 4 Defendants directly to that consumer and for which Defendants have the 5 consumer’s express, informed consent for that sale. 6 III. REQUIRED SCREENING OF RECIPIENTS OF SENSITIVE PERSONAL INFORMATION 7 8 IT IS FURTHER ORDERED that Defendants shall establish, implement, 9 and maintain procedures to verify the legitimate need for and monitor the use of 10 consumers’ Sensitive Personal Information by any Person to whom Defendants 11 sell, transfer, or disclose such information, including: 12 A. 13 Obtaining from each Person a signed and dated certification stating 1. the name and nature of the Person’s business(es), including the 14 purpose(s) for obtaining consumers’ Sensitive Personal Information; 15 the Person’s physical address(es) for conducting business; trade 16 names; online sites and profiles; and licenses or registrations; 17 2. a confirmation that the Person will not use, sell, transfer, or otherwise 18 disclose the Sensitive Personal Information it receives from 19 Defendants for any purpose other than to provide the Financial 20 Product or Service requested by the consumer; 21 3. a description of any individuals or entities to which the Person will or 22 may sell, transfer, or otherwise disclose consumers’ Sensitive 23 Personal Information that includes: (i) any and all purposes for which 24 those individuals or entities may use the such information; and Page 8 of 20 1 (ii) measures implemented by those individuals or entities for 2 safeguarding Sensitive Personal Information, including secure 3 transmission and storage. 4 Defendants must obtain from each Person a new certification annually and 5 upon any material change in the nature of the Person’s business or of the 6 purpose(s) for which the Person would use consumers’ Sensitive Personal 7 Information. 8 B. 9 certification described in Subsection A, including reviewing and confirming the Conducting reasonable procedures to verify the information provided in the 10 Person’s physical addresses, online sites and profiles, and licenses and 11 registrations; and that the Person’s identity, advertising, lines(s) of business, and 12 purpose(s) for obtaining consumers’ Sensitive Personal Information relate to 13 providing Financial Products or Services. 14 C. 15 whom Defendants sell, transfer, or disclose a consumer’s Sensitive Personal 16 Information is using it solely to provide the consumer with a Financial Product or 17 Service, including by conducting periodic audits that involve examining 18 information and documents from the Person and third parties to which the Person 19 will or may sell, transfer, or otherwise disclose consumers’ Sensitive Personal 20 Information to verify the ongoing accuracy of the certification described in 21 Subsection A, and investigating any legal actions, complaints, or reports of which 22 Defendants have notice and that indicate misuse of Sensitive Personal Information. Conducting reasonable ongoing procedures to monitor that each Person to 23 24 Page 9 of 20 1 D. 2 Information to the Person if Defendants receive information, pursuant to 3 procedures required by this Order, or otherwise, indicating that: 4 Immediately desisting from disclosing any consumer’s Sensitive Personal 1. 5 6 a certification provided by the Person was false, misleading, or materially erroneous; 2. the Person has used Sensitive Personal Information for any purpose 7 other than to provide a consumer with a Financial Product or Service; 8 or 9 10 3. the Person will not use the Sensitive Personal Information solely to provide the consumer with a Financial Product or Service. 11 Provided, however, that this Section III does not apply to Persons to whom 12 Defendants disclose a consumer’s Sensitive Personal Information solely for the 13 purpose of processing a payment for a product or service sold by the Defendants 14 directly to that consumer and for which the Defendants have the consumer’s 15 express, informed consent for that sale. 16 Provided further that Section III.D does not prohibit Defendants from resuming 17 disclosure of Sensitive Personal Information to a Person if a reasonable 18 investigation determines (i) the information that required Defendants to 19 immediately desist disclosure was inaccurate or (ii) the Person used Sensitive 20 Personal Information for any purpose other than to provide a consumer with a 21 Financial Product or Service because of (a) an inadvertent error that the Person has 22 demonstrated was unintentional and occurred notwithstanding the maintenance of 23 procedures reasonably designed to avoid such errors and prevent the recurrence of 24 similar errors; or (b) the conduct of an individual acting without the Person’s Page 10 of 20 1 authorization and the Person has implemented reasonable and appropriate 2 procedures to prevent a similar unauthorized action from recurring. 3 IV. PROHIBITIONS CONCERNING CONSUMER REPORTS 4 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 5 6 employees, and attorneys, and all other persons or entities in active concert or 7 participation with any of them, who receive actual notice of this Order, whether 8 acting directly or indirectly, are permanently restrained and enjoined from: 9 A. using or obtaining a Consumer Report for a purpose other than a Permissible 10 Purpose; 11 B. 12 the Consumer Report or any information in the Consumer Report, failing to 13 disclose to the Consumer Reporting Agency that originally furnishes the Consumer 14 Report: 15 for any Consumer Report that Defendants procure for purposes of reselling 1. 16 the identity of the end-user of the Consumer Report (or information); and 17 2. each Permissible Purpose for which the Consumer Report (or 18 information) is furnished to the end-user of the Consumer Report (or 19 information); 20 C. 21 ensure that a Consumer Report or any information in the Consumer Report is 22 resold only for a Permissible Purpose including by requiring that each person to 23 which the Consumer Report or any information in the Consumer Report is resold: 24 (i) identifies each end user of the resold Consumer Report (or information); failing to establish and comply with reasonable procedures designed to Page 11 of 20 1 (ii) certifies each purpose for which the Consumer Report (or information) will be 2 used; (iii) certifies that the Consumer Report (or information) will be used for no 3 other purpose; and 4 D. 5 Report, failing to make reasonable efforts to verify the identifications and 6 certifications described in Paragraph IV.C including, if the Consumer Report or 7 information is sold to a Person to provide a Financial Product or Service to the 8 Consumer, failing to conduct the procedures described in Section III.A and 9 Section III.B for that identified end user. before reselling any Consumer Report or any information in the Consumer 10 Provided, however, that this Section IV does not apply to a consumer’s self- 11 reported account of the consumer’s credit score or score range. 12 V. MONETARY JUDGMENT FOR CIVIL PENALTY 13 IT IS FURTHER ORDERED that: 14 A. 15 ($1,500,000) is entered in favor of the Plaintiff against Individual Defendants and 16 Corporate Defendants, jointly and severally. 17 B. 18 Thousand Dollars ($1,500,000), which, as Defendants stipulate, their undersigned 19 counsel holds in escrow for no purpose other than payment to Plaintiff. Such 20 payment must be made within 7 days of entry of this Order by electronic fund 21 transfer in accordance with instructions previously provided by a representative of 22 Plaintiff. Judgment in the amount of One Million Five Hundred Thousand Dollars Defendants are ordered to pay to Plaintiff One Million Five Hundred 23 24 Page 12 of 20 1 VI. ADDITIONAL MONETARY PROVISIONS 2 IT IS FURTHER ORDERED that: 3 A. 4 interest in all assets transferred pursuant to this Order and may not seek the return 5 of any assets. 6 B. 7 proof, in any subsequent civil litigation by or on behalf of the Commission in a 8 proceeding to enforce its rights to any payment or monetary judgment pursuant to 9 this Order. Defendants relinquish dominion and all legal and equitable right, title, and The facts alleged in the Complaint will be taken as true, without further 10 C. 11 an action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy 12 Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect 13 for such purposes. 14 D. 15 government of the United States, is not compensation for actual pecuniary loss, 16 and, therefore, as to the Individual Defendants, it is not subject to discharge under 17 the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7). 18 E. 19 Security Numbers or Employer Identification Numbers), which Defendants must 20 submit to the Commission, may be used for collecting and reporting on any 21 delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701. 22 VII. CUSTOMER INFORMATION 23 24 The facts alleged in the Complaint establish all elements necessary to sustain Defendants agree that the judgment represents a civil penalty owed to the Defendants acknowledge that their Taxpayer Identification Numbers (Social IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons or entities in active concert or Page 13 of 20 1 participation with any of them, who receive actual notice of this Order, are 2 permanently restrained and enjoined from directly or indirectly: 3 A. 4 that any Defendant obtained prior to entry of this Order in connection with lead 5 generation activities; and 6 B. 7 custody, or control within 30 days after entry of this Order. The information shall 8 be destroyed by a means that protects against the unauthorized access to the 9 information, such as by burning, pulverizing, or shredding any papers, and by disclosing, using, or benefitting from Personal Information of any Person failing to destroy such Personal Information in all forms in their possession, 10 erasing or destroying any electronic media, to ensure that the information cannot 11 practicably be read or reconstructed; 12 C. 13 received Personal Information that Defendants distributed in connection with lead 14 generation activities prior to entry of this Order to (i) destroy any such Personal 15 Information in the entity’s possession, custody, or control by a means that protects 16 against the unauthorized access to the information; and (ii) notify Defendants 17 within 30 days after receiving such instruction that such Personal Information was 18 destroyed or explain why the entity did not destroy the Personal Information. 19 Provided, however, that customer information need not be disposed of, and may be 20 disclosed, to the extent requested by a government agency or required by law, 21 regulation, or court order. 22 23 24 failing, within 30 days after entry of this Order, to instruct each entity that VIII. ORDER ACKNOWLEDGMENTS IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this Order: Page 14 of 20 1 A. 2 Commission an acknowledgment of receipt of this Order sworn under penalty of 3 perjury. 4 B. 5 business that such Defendant, individually or collectively with any other 6 Defendants, is the majority owner or controls directly or indirectly, and each 7 Corporate Defendant, must deliver a copy of this Order to: (1) all principals, 8 officers, directors, and LLC managers and members; (2) all employees having 9 managerial responsibilities for conduct related to the subject matter of the Order Each Defendant, within 7 days of entry of this Order, must submit to the For 10 years after entry of this Order, each Individual Defendant for any 10 and all agents and representatives who participate in conduct related to the subject 11 matter of the Order; and (3) any business entity resulting from any change in 12 structure as set forth in the Section titled Compliance Reporting. Delivery must 13 occur within 7 days of entry of this Order for current personnel. For all others, 14 delivery must occur before they assume their responsibilities. 15 C. 16 Order, that Defendant must obtain, within 30 days, a signed and dated 17 acknowledgment of receipt of this Order. From each individual or entity to which a Defendant delivered a copy of this 18 IX. COMPLIANCE REPORTING 19 IT IS FURTHER ORDERED that Defendants make timely submissions to 20 the Commission: 21 A. 22 report, sworn under penalty of perjury, describing in detail their compliance with 23 the Section titled Customer Information. The report shall include the identity of 24 each entity that Defendants instructed to delete Personal Information in accordance Ninety days after entry of this Order, Defendants must submit a compliance Page 15 of 20 1 with Section VIII.C, and a statement setting forth in detail such entity’s response to 2 Defendants, if any, including, but not limited to, whether such entity deleted the 3 Personal Information and, if not, any explanation provided for why the entity did 4 not delete the Personal Information it obtained from Defendants. 5 B. 6 report, sworn under penalty of perjury: 7 1. 8 address and telephone number, as designated points of contact, which 9 representatives of the Commission may use to communicate with Defendant; (b) One year after entry of this Order, each Defendant must submit a compliance Each Defendant must: (a) identify the primary physical, postal, and email 10 identify all of that Defendant’s businesses by all of their names, telephone 11 numbers, and physical, postal, email, and Internet addresses; (c) describe the 12 activities of each business, including the goods and services offered, the means of 13 advertising, marketing, and sales, and the involvement of any other Defendant 14 (which Individual Defendants must describe if they know or should know due to 15 their own involvement); (d) describe in detail whether and how that Defendant is in 16 compliance with each Section of this Order; and (e) provide a copy of each Order 17 Acknowledgment obtained pursuant to this Order, unless previously submitted to 18 the Commission. 19 2. 20 numbers and all physical, postal, email, and Internet addresses, including all 21 residences; (b) identify all business activities, including any business for which 22 such Defendant performs services whether as an employee or otherwise and any 23 entity in which such Defendant has any ownership interest; and (c) describe in Additionally, each Individual Defendant must: (a) identify all telephone 24 Page 16 of 20 1 detail such Defendant’s involvement in each such business, including title, role, 2 responsibilities, participation, authority, control, and any ownership. 3 C. 4 compliance notice, sworn under penalty of perjury, within 14 days of any change 5 in the following: 6 1. 7 contact; or (b) the structure of any Corporate Defendant or any entity that 8 Defendant has any ownership interest in or controls directly or indirectly that may 9 affect compliance obligations arising under this Order, including: creation, merger, 10 sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages 11 in any acts or practices subject to this Order. 12 2. 13 (a) name, including aliases or fictitious name, or residence address; or (b) title or 14 role in any business activity, including any business for which such Defendant 15 performs services whether as an employee or otherwise and any entity in which 16 such Defendant has any ownership interest, and identify the name, physical 17 address, and any Internet address of the business or entity. 18 D. 19 bankruptcy petition, insolvency proceeding, or similar proceeding by or against 20 such Defendant within 14 days of its filing. 21 E. 22 penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, 23 such as by concluding: “I declare under penalty of perjury under the laws of the 24 United States of America that the foregoing is true and correct. Executed For 10 years after entry of this Order, each Defendant must submit a Each Defendant must report any change in: (a) any designated point of Additionally, each Individual Defendant must report any change in: Each Defendant must submit to the Commission notice of the filing of any Any submission to the Commission required by this Order to be sworn under Page 17 of 20 1 on: _____” and supplying the date, signatory’s full name, title (if applicable), and 2 signature. 3 F. 4 submissions to the Commission pursuant to this Order must be emailed to 5 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 6 Associate Director for Enforcement, Bureau of Consumer Protection, Federal 7 Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC, 20580. The 8 subject line must begin: FTC v. ITMEDIA SOLUTIONS LLC, et al. Unless otherwise directed by a Commission representative in writing, all 9 X. RECORDKEEPING 10 IT IS FURTHER ORDERED that Defendants must create certain records for 11 10 years after entry of the Order, and retain each such record for 5 years. 12 Specifically, Corporate Defendants, in connection with the collection or sale of 13 Personal Information or providing a Financial Product or Service, and each 14 Individual Defendant for any business that such Defendant, individually or 15 collectively with any other Defendants, is a majority owner or controls directly or 16 indirectly, must create and retain the following records: 17 A. 18 disclosure of that consumer’s Sensitive Personal Information, which shows the 19 consumer’s name and contact information; and the time, place, and method of 20 consent; 21 B. 22 costs incurred in generating those revenues, and the resulting net profit or loss; 23 C. 24 an employee or otherwise, that Person’s: name; addresses; telephone numbers; proof of each consumer’s express, informed consent to the sale, transfer, or accounting records showing the revenues from all goods or services sold, all personnel records showing, for each Person providing services, whether as Page 18 of 20 1 job title or position; dates of service; and (if applicable) the reason for termination; 2 D. 3 promotion, offering for sale, or selling of a Financial Product or Service, whether 4 received directly or indirectly, such as through a third party, and any response; 5 E. 6 this Order, including all certifications and other documentation related to 7 Section III, and all submissions to the Commission; and 8 F. 9 advertising, marketing, promotion, offering for sale, or selling of a Financial 10 complaints and refund requests relating to advertising, marketing, all records necessary to demonstrate full compliance with each provision of a copy of each unique advertisement or other marketing material relating to Product or Service. 11 XI. COMPLIANCE MONITORING 12 IT IS FURTHER ORDERED that, for the purpose of monitoring 13 Defendants’ compliance with this Order and any failure to transfer any assets as 14 required by this Order: 15 A. 16 Commission each Defendant must: submit additional compliance reports or other 17 requested information, which must be sworn under penalty of perjury; appear for 18 depositions; and produce documents for inspection and copying. The Commission 19 is also authorized to obtain discovery, without further leave of court, using any of 20 the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including 21 telephonic depositions), 31, 33, 34, 36, 45, and 69. 22 B. 23 communicate directly with each Defendant. Defendant must permit 24 representatives of the Commission to interview any employee or other person Within 14 days of receipt of a written request from a representative of the For matters concerning this Order, the Commission is authorized to Page 19 of 20 1 affiliated with any Defendant who has agreed to such an interview. The person 2 interviewed may have counsel present. 3 C. 4 its representatives as consumers, suppliers, or other individuals or entities, to 5 Defendants or any individual or entity affiliated with Defendants, without the 6 necessity of identification or prior notice. Nothing in this Order limits the 7 Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of 8 the FTC Act, 15 U.S.C. §§ 49, 57b-1. 9 D. The Commission may use all other lawful means, including posing, through Upon written request from a representative of the Commission, any 10 Consumer Reporting Agency must furnish Consumer Reports concerning 11 Individual Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 12 15 U.S.C. §1681b(a)(1). 13 XII. RETENTION OF JURISDICTION 14 IT IS FURTHER ORDERED that this Court retains jurisdiction of this 15 matter for purposes of construction, modification, and enforcement of this Order. 16 17 18 DATED: January 10, 2022 Honorable Dale S. Fischer UNITED STATES DISTRICT JUDGE 19 20 21 22 23 24 Page 20 of 20

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