1 WILLIAMBLUMENTKAL 

General Counsel I I 

2 

KAREN JAGlELSKI 

3 MALINIMITHAL 

Federal Trade Comraission 

...-

7 

RAYMOND E. MCKOWN, Bar # 150975 

8 Federal Trade Cominission 

10877 Wilshire Blvd. Ste. 700 

9 Los An eles CA 90624 

310 824-4j25 voice) 10 b10) 824-4380 tfacsimile) ' 

mckown@ftc.gov 

UNITED STATES DISTRICT COURT 


CENTRAL DISTNCT OF CALIFORNfA 


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COMMISSION, 

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CONS~~O.COM,lNC.,a . 

l9: corporaixon, SUPPLEMENTAL STIPULATED JUDGMENTAND ORDER FOR 

20 , doing business as PERMANENT INJUNCmONAND * MONETARY RELEF 

21 . EXPERIAN CONSUMER DIRECT, . a QSPACE, INC., and IPLACE, INC. 22 


Defendant.
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 Plaintiff Federal Trade Commission C'FTC' or ccCommission") and Defendant 

26 Consumerinfo.com, Inc., doing business as Experian Consumer Direct, Qspace, 

27 Inc.,and Iplace, Inc., jointly sti$ulate to this Supplemental Stipulated Judgment 

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and Order for Permanent litjunction and Monetary Relief ("Supplemental 

Order'"), which resolves the FTC3s allegation that Defendant violated the 

StipulatedFernanent ~mc'cion ('Tina1 Order") entered by this Court on ~ugust 

31,2005. 

NOW TECEREFOREIT IS HEREBY ORDERED AS FOLLOWS: 

' FINDINGS OF FACT AND CONCLUSIONS OF LAW 

A. 	 This Court has jurisdiction over the subject matter of this case and. over 

Defendant. 

B. 	 Venue in this district is proper under 28 U.S.C. 5 1391(b) and (c), and 15 

U.S.C.. gj 530). 

C. 	 The acts andprnctices of ~efkndant are in or affecting commerce, as 

"comm&rce"is defined in Section 4 of the FTC Act, 15 U.S.C. 5 44. 

D. 	 The FinalOrder, inter nlia,requires Defendant to make certain 

disclosures in connection with the marlceti-g of Defendant's credit repo&s 

- and credit monitoring program. 

E. 	 All provisions of the Final Order remain in fullforce and eEect except as 

otherwise stated jnthis Supplemental Order. 

F. 	 Defendant ran television advertisements regarding its credit monitoring 

program in September and October 2005. The FTC alleges that these 

advertisements violated the Final :Orderby failing to mdce certain' 

required disclosures. 

3, 	 Defendant agrees to the enby of this Supplemental Order without any 

finding or admission of liability as to any violation of the Final Order. 

3. 	 Defendant waives: (a) all rights to seek appellate review or otherwise 

challenge or contest the validity of this Supplemental Order; (b) any claim 

Defendant may have against the Co.mrnission, its employees, 

- ~epresentatives,or agents that relate to the matter stated herein; (c) all 

claims under .the Equal Access to Justice Act, 28 U.S.C. 5 2412, as . . 
2 rights to attorney's fees that may arise under said provision of law. 


3 I. Enky of "&s Supplemental Order is in the public interest. 


4 I. PROHIBITEDBUSllYESS ACTMTIES 


5 IT IS ORDERED that Defendant and Defendant's successors, assigns, 


6 officers, agents, and all other persons or entities within the scope of Fed. R Civ. 


7 P. 65, whether acting directly or through any sole proprietorship, partnership, 


8 limited liability company, corporation, subsidiary, branch, division, or other 


9 entity, including all other persons or entities in active concert or participation 


10 with them, who receive actual notice of this Supplemental Order by personal . . 

I1 service or otherwise, in connection with the advertising, promoting,. offering for 

12 IIsale, or sale of consumer reports, .credit scores, credit monitoring programs, or .. 

13 Itany .otherproituct, program, or se~ce rlating to consumer reports, are hereby 

14 permanently restriiined and enjoined from misrepresenting, or assisting others in 

15 misrepresenting, expressly or by implication, Defendant's afliliation with the 

16 annual credit report available to consumers under the Fair Credit Reporting Act, 

17. 15U.S;C. $168lj, or any other federal law. 

18 II. MONETARYRELEF 


19 ZT =puRTaER ORDERED that: 


20 : Defendant is ordered to pay THREE HUNDRED ;THOUSANDDOLLARS 

21: ($300,000.00) to the Commission, within five (5) days of entry of this 


22 , Supplemental Order, pursuaflt to payment @structions provided by the 


, 24 '11 A. All funds paid pursuant to Ms Paragraph shall be deposited intb a fimd

administered by the Comniission or its agent to be used for equitable 

relief, including but not limited to consumer redress and any attendant 

expenses for the administration of any redress fund. Inthe event that 

direct redress to cogsumers is wholly or partially impracticable or fimds 

. . 
remain after redress is completed, the Commission may apply any . 

remaining bds for such other equitable relief (including consumer 

Sormatioa remedies) as it determines to be reasonably related to 

Defendant's alleged violatigns of the Final Order. Any funds not used for 

such equitable relief shall be deposited to the United States ~reasur~ as 

equitable disgorgement. Defendant shall have no right to challenge the 

Commission's choice of remedies or the manner of distribution. . . 

Defendant acknowledges qd a'grees that all money paid pursuant to this 

Supplemental Order is irrevocably paid to the Commission for purposes 

of settlement between the parties, and Defendant relinquishes all rights, 

title, gd interest to such money. Defendant shall make no claim or 

demand for the rem of the funds, directly or &directly, through counsel 

or otherwise, and in the event of banlu-uptcy. of Defendant1 Defendant 

aclcnowledges that the funds are not part of the debtor's estate, nor does . 

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16 : C. 

.the estate have any claim or interest therein. 

The monetary relief entered pursuant to this Paragraph is equitable 

17. monetary relief, solely remedial in nature, and not a hey penaltyy punitive 

18 1 .assessment, or forfeiture. Defendant's payment of the monetaryrelief 

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shallbe deemed to satisfy completely the monetary relief for the alleged 

is;iolation of .the FindOrder. 

21 m. CHANGE OF NOT~CATIONADDRESS 

22 i IT,XS F.U;RTElER.ORDEREDthat the address for all written notiscations 

23 :to the Commission shall be changed firom the address listed in SubparagraphV.C. 

24 of the F.inal Order to the following address: 

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27. 

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Associate Director 

Division of Enforcement 

Federal Trade Commission 

600 Pennsylvania Avenue, N.W., Room NJ-2 122 

Washin on, D.C. 20580 

RE: F& v. Consumerinfo. com, Inc. 

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1 W. RECORD KEEPING 

2 IT IS FWU'HER ORDERED that, for a period of six (6) years fiom the date I 

3 of entry of this Supplemental Order, ii~comection with any business where 

4 Defendant is the majority owner of the business or directly or indirectly manages 

5 or controls the business, Defendant and its agents, employees, officers, 

6 corporations, suc'cessors, and.assigns, and those persons in active concert or 

7 participation with them who receive actual notice of this Supplemental Order by 

8 personal service or otherwise, are hereby reshined and enjoined from failing to 

'9 create and retain the following records: 

10 A. Accounting records that reflect the cost of goods or services sold, 


11 revenues generated, and the disbursement of such revenues. 
 . . 

12 B. Personnel records accurately reflecting: the name, address, and telephone 

13 number of each person employed in any capacity by such business; that person's 

14 job title or position; the date upon which the person commenced work; and the 

15 date .and reason for the person's termination, if applicable. 

16 C. Customer files containjag the names, addresses, phone numbers, dollar 

17 ' amounts paid, quantity of items or services purchased, and description of items or

18 services purchased, to the extent such information is obtained in the ordinary 

19 . course of business. 


20 , D. Complaints .and refund requests .(whether received directly, indirectly or 


21 through any.thkB$asty) and any responses to those complaints' or requests. 


22 , E. Copies oFall sales scripts, training materials, advertisements, or other . 


23 marketing materials. 


24. .I?. All records and documents necessary to demonstrate full cornplla.de with 


25 each provision of this Supplemental Orderrincluding but not limited to, copies of 


26 acknowledgments of receipt of this Supplemental Order, required by paragraph 


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V. DISTRIBUTION OF SUPPLEMENTAL ORDER BY DEFENDANT ' 

IT IS FmmW ORDERED that, for a period of three (3) years fiom the 

date of entry of this Supp1emental Order, Defendant. shall deliver a copy of this 

Supplemental Order to allof its principals, officers,. and directors, and to all 

managers who have responsibility directly or indirectly. for any matters covered 

by this Supplemental Order. Defendant also shall deliver an accurate surnm;uy of 

this Supplemental Order to all of its employees who are engaged in conduct 

related to the advertising, marketing, sale, or delivery of, or who respond to 

consumer complaints or inquiries regarding consumer reports, credit scores, or 

: any credit monitoring program. For current personnel, delivery shall be within 

five (5) days of service of this Supplemental Order upon Defendant 'For new -. 

' personnel, delivery shall occur priar to their assuming their responsibilities. . . 

Defendant must secure a signed and dated statement acknowledging receipt of 


this Supplemental Order, within thirty (30) days of delivery, fiom all persons 


receiving a copy of this Sucplemental Order pursuant to this Paragraph.V. 


, 

VI. RETENTION OF JURISDICTION 

' IT IS l?URTECERORDERED that this Court shall retain jurisdiction of this 


matter for Purposes of construction, modification, and enforcement of this . 


: Supplemental .Order. 

'

m..COST$Am ATTORNEY'S @EES , . . . 

21:' XTgS R ORDERED that each party shall bear its own costs and 

22 attorney's fees incurred inconnection with this action. ; . . . . . , . 

I 
AL!CEPdPPR!EH. STU-FLER 

CHIEF U.S. DISTRICT JUDGE