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102 3064

UNITED STATES OF AMERICA 

FEDERAL TRADE COMMISSION

COMMISSIONERS: Jon Leibowitz, Chairman

William E. Kovacic

J. Thomas Rosch

Edith Ramirez

Julie Brill

 

)

In the Matter of )

)

NONPROFIT MANAGEMENT LLC, )

a limited liability corporation, )

also doing business as Tested Green, )

and )

) DOCKET NO. C-4315

JEREMY RYAN CLAEYS,also doing )

business as Tested Green, individually )

and as an officer and member of )

Nonprofit Management LLC. )

 )

DECISION AND ORDER

The Federal Trade Commission (“Commission”) having initiated an investigation of

certain acts and practices of the Respondents named in the caption hereof, and the Respondents

having been furnished thereafter with a copy of a draft complaint that the Bureau of Consumer

Protection proposed to present to the Commission for its consideration and which, if issued by

the Commission, would charge the Respondents with violation of the Federal Trade Commission

Act, 15 U.S.C. § 45 et seq.; and

The Respondents and counsel for the Commission having thereafter executed an

agreement containing a consent order (“consent agreement”), an admission by the Respondents

of all the jurisdictional facts set forth in the aforesaid draft complaint, and waivers and other

provisions as required by the Commission’s Rules; and

The Commission having thereafter considered the matter and having determined that it

has reason to believe that the Respondents have violated the said Act, and that a complaint

should issue stating its charges in that respect, and having thereupon accepted the executed

consent agreement and placed such consent agreement on the public record for a period of thirty

(30) days for the receipt and consideration of public comments, now in further conformity with
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the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its

complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Nonprofit Management LLC, also doing business as Tested Green, is a

Delaware limited liability corporation with a principal office at 1250 Connecticut Avenue, NW,

Suite 200, Washington, DC 20036.

2. Respondent Jeremy Ryan Claeys, also doing business as Tested Green, is an officer and

member of Nonprofit Management LLC. Individually, or in concert with others, he formulates,

directs, controls, or participates in the policies, acts, or practices of Nonprofit Management LLC. 

His principal office, doing business as Tested Green, is at 1250 Connecticut Avenue, NW, Suite

200, Washington, DC 20036.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding

and of the Respondents, and the proceeding is in the public interest.

ORDER

DEFINITIONS

For purposes of this order, the following definitions shall apply:

1. Unless otherwise specified, “Respondents” shall mean Nonprofit Management LLC, also

doing business as Tested Green, its successors and assigns; and Jeremy Ryan Claeys,

individually, also doing business as Tested Green, and as an officer and member of Nonprofit

Management LLC.

2. “Certification” shall include any seal, logo, emblem, shield, or other insignia that

expresses or implies approval or endorsement of any product, package, service, practice, or

program, or any attribute thereof.

3. “Clearly and prominently” shall mean:

A. In textual communications (e.g., printed publications or words displayed on the

screen of a computer), the required disclosures are of a type, size, and location

sufficiently noticeable for an ordinary consumer to read and comprehend them, in

print that contrasts with the background on which they appear;

B. In communications disseminated orally or through audible means (e.g., radio or

streaming audio), the required disclosures are delivered in a volume and cadence

sufficient for an ordinary consumer to hear and comprehend them;

C. In communications disseminated through video means (e.g., television or

streaming video), the required disclosures are in writing in a form consistent with

subparagraph (A) of this definition and shall appear on the screen for a duration
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sufficient for an ordinary consumer to read and comprehend them, and in the

same language as the predominant language that is used in the communication;

D. In communications made through interactive media, such as the Internet, online

services, and software, the required disclosures are unavoidable and presented in

a form consistent with subparagraph (A) of this definition, in addition to any

audio or video presentation of them; and

E. In all instances, the required disclosures are presented in an understandable

language and syntax, and with nothing contrary to, inconsistent with, or in

mitigation of the disclosures used in any communication of them.

4. “Endorsement” means any advertising message (including verbal statements,

demonstrations, or depictions of the name, signature, likeness or other identifying personal

characteristics of an individual or the name or seal of an organization) that consumers are likely

to believe reflects the opinions, beliefs, findings, or experiences of a party other than the

sponsoring advertiser, even if the views expressed by that party are identical to those of the

sponsoring advertiser. The party whose opinions, beliefs, findings, or experience the message

appears to reflect will be called the endorser and may be an individual, group, or institution.

5. “Environmental certification” shall mean any certification that expresses or implies that a

product, package, service, practice, or program is environmentally friendly, environmentally

superior, or environmentally preferable to other products, packages, services, practices, or

programs; or expresses or implies other environmental attributes or benefits.

6. “Material connection” shall mean any relationship that materially affects the weight or

credibility of any endorsement and that would not be reasonably expected by consumers.

7. “Tested Green Certification” shall refer to the certification issued by Respondents that is

depicted below:

I.

[Making Misrepresentations]

IT IS HEREBY ORDERED that Respondents, directly or through any corporation,

partnership, subsidiary, division, trade name, or other device, and their officers, agents, servants,

employees, and all persons or entities in active concert or participation with them who receive

actual notice of this order, by personal service or otherwise, in connection with the labeling,

advertising, marketing, promotion, offering for sale, sale, or distribution of any product,

package, certification, service, practice, or program, are permanently restrained and enjoined

from making or assisting others in making, expressly or by implication, orally or in writing, any

misrepresentation, including misrepresenting:
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A. the fact that, or degree to which, Respondents have, or a third party has, evaluated

a product, package, service, practice, or program based on its environmental

benefits or attributes;

B. that Respondents have, or a third party has, the appropriate expertise to evaluate

the environmental benefits or attributes of a product, package, service, practice, or

program;

C. the number of certifications issued by Respondents; or

D. that a product, package, certification, service, practice, or program is endorsed by

an independent person or organization.

II.

[Means and Instrumentalities]

IT IS FURTHER ORDERED that Respondents, directly or through any corporation,

partnership, subsidiary, division, trade name, or other device, and their officers, agents, servants,

employees, and all persons or entities in active concert or participation with them who receive

actual notice of this order, by personal service or otherwise, in connection with the labeling,

advertising, marketing, promotion, offering for sale, sale, or distribution of any product,

package, certification, service, practice, or program, are permanently restrained and enjoined

from providing to others the means and instrumentalities to make, expressly or by implication,

orally or in writing, any false or misleading statement.

III.

[Disclosure of Material Connection between Endorser and Endorsed Person or Entity]

IT IS FURTHER ORDERED that Respondents, directly or through any corporation,

partnership, subsidiary, division, trade name, or other device, and their officers, agents, servants,

employees and all persons or entities in active concert or participation with them who receive

actual notice of this order, by personal service or otherwise, in connection with the labeling,

advertising, marketing, promotion, offering for sale, sale, or distribution of any product,

package, certification, service, practice, or program, shall not make any representation, in any

manner, expressly or by implication, about any user or endorser of such product, package,

certification, service, practice, or program unless they disclose, clearly and prominently, a

material connection, when one exists, between such user or endorser and the Respondents or any

other individual or entity labeling, advertising, marketing, promoting, offering for sale, selling,

or distributing such product, package, certification, service, practice, or program.

IV.

IT IS FURTHER ORDERED that Respondent Nonprofit Management LLC, and its

successors and assigns, and Respondent Jeremy Ryan Claeys shall, for five (5) years after the
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last date of dissemination of any representation covered by this order, maintain and upon request

make available to the Commission for inspection and copying:

A. All advertisements, labeling, packaging and promotional materials containing the

representation;

B. All materials that were relied upon in making and disseminating the

representation;

C. All tests, reports, studies, surveys, demonstrations, or other evidence in their

possession or control that contradict, qualify, or call into question the

representation, or the basis relied upon for the representation, including

complaints and other communications with consumers or with governmental or

consumer protection organizations; and

D. All acknowledgments of receipt of this order, obtained pursuant to Part V.

V.

IT IS FURTHER ORDERED that Respondent Nonprofit Management LLC, and its

successors and assigns, and Respondent Jeremy Ryan Claeys, shall deliver a copy of this order to

all current and future principals, members, officers, directors, and managers; and all current and

future employees, agents, and representatives having responsibilities with respect to the subject

matter of this order. Respondents shall secure from each such person a signed and dated

statement acknowledging receipt of the order, with any electronic signatures complying with the

requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq. Respondents shall deliver this order to

current personnel within thirty (30) days after the date of service of this order, and to future

personnel within thirty (30) days after the person assumes such position or responsibilities.

VI.

IT IS FURTHER ORDERED that Respondent Nonprofit Management LLC, and its

successors and assigns, shall notify the Commission at least thirty (30) days prior to any change

in the corporation or any business entity that the corporation directly or indirectly controls, or

has an ownership interest in, that may affect compliance obligations arising under this order,

including but not limited to formation of a new business entity; a dissolution, assignment, sale,

merger, or other action that would result in the emergence of a successor entity; the creation or

dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this

order; the proposed filing of a bankruptcy petition; or a change in the business or corporate name

or address. Provided, however, that, with respect to any proposed change about which the

Respondent learns less than thirty (30) days prior to the date such action is to take place,

Respondent shall notify the Commission as soon as is practicable after obtaining such

knowledge. Unless otherwise directed by a representative of the Commission, all notices

required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the

Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade
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Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580, Re: FTC v. Nonprofit

Management LLC and Jeremy Ryan Claeys, FTC Docket No. C-4315. Provided, however, that,

in lieu of overnight courier, notices may be sent by first-class mail, but only if electronic

versions of such notices are contemporaneously sent to the Commission at Debrief@ftc.gov.

VII.

IT IS FURTHER ORDERED that Respondent Jeremy Ryan Claeys, for a period of ten

(10) years after the date of issuance of this order, shall notify the Commission of the

discontinuance of his current business or employment, or of his affiliation with any new business

or employment. The notice shall include Respondent’s new business address and telephone

number and a description of the nature of the business or employment and his duties and

responsibilities. Unless otherwise directed by a representative of the Commission, all notices

required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the

Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade

Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580, Re: FTC v. Nonprofit

Management LLC and Jeremy Ryan Claeys, FTC Docket No. C-4315. Provided, however, that,

in lieu of overnight courier, notices may be sent by first-class mail, but only if electronic

versions of such notices are contemporaneously sent to the Commission at Debrief@ftc.gov.

VIII.

IT IS FURTHER ORDERED that Respondent Nonprofit Management LLC, and its

successors and assigns, and Respondent Jeremy Ryan Claeys, within sixty (60) days after the

date of service of this order, shall each file with the Commission a true and accurate report, in

writing, setting forth in detail the manner and form in which Respondents have complied with

this order. Within ten (10) days of receipt of written notice from a representative of the

Commission, Respondents shall submit additional true and accurate written reports. 

IX.

This order will terminate on February 23, 2031, or twenty (20) years from the most

recent date that the United States or the 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 Part in this order that terminates in less than twenty (20) 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

Part.
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Provided, further, that if such complaint is dismissed or a federal court rules that the

Respondents 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 Part as though the

complaint had never been 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.

By the Commission.

Donald S. Clark

Secretary 

SEAL

ISSUED: February 23, 2011