United States District Court 

for the 

Southern District of Florida 

Federal Trade Commission, 

Plaintiff, 

v. 

Truly Organic Inc. and others, 

Defendants. 

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Civil Action No. 19-23832-Civ-Scola 

Stipulated Order for Permanent Injunction 

and Monetary Judgment; Order Closing Case 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its 

Complaint for Permanent Injunction and Other Equitable Relief (“Complaint”), for 

a permanent injunction and other equitable relief in this matter, pursuant to 

Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). 

Through counsel, having filed a joint motion, the Commission and Defendants 

stipulate to the entry of this Stipulated Order for Permanent Injunction and 

Monetary Judgment (“Order”) to resolve all matters in dispute in this action 

between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive acts or 

practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, in connection 

with the advertising, labeling, and offering for sale of personal care and household 

cleaning products as wholly organic or certified organic in compliance with the 

USDA NOP, and vegan. 

3. Defendants neither admit nor deny any of the allegations in the Complaint, 

except as specifically stated in this Order. Only for purposes of this action, 

Defendants admit the facts necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to 

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Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through 

the date of this Order, and agree to bear their own costs and attorney fees. 

5. Defendants and the Commission waive all rights to appeal or otherwise 

challenge or contest the validity of this Order. 

DEFINITIONS

For the purpose of this Order, the following definitions apply: 

A. “Defendants” means the Individual Defendant and the Corporate 

Defendant, individually, collectively, or in any combination. 

1. “Corporate Defendant” means Truly Organic Inc. and its successors 

and assigns. 

2. “Individual Defendant” means Maxx Harley Appelman, a/k/a Maxx 

Harley. 

B. “USDA NOP” means the United States Department of Agriculture’s National 

Organic Program. 

ORDER

I. PROHIBITION AGAINST DECEPTIVE CLAIMS, INCLUDING FALSE 

AND/OR UNSUBSTANTIATED CLAIMS 

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, 

and attorneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, whether acting directly or indirectly, 

in connection with the sale of any good or service, are permanently restrained 

and enjoined from: 

 A. Making any misrepresentation, expressly or by implication, including 

through use of a product name, that such good or service: 

1. Is wholly or partially organic; 

2. Contains or uses organic ingredients; 

3. Is certified organic; 

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4. Is vegan; or 

5. Has been evaluated by any third party, including any third 

party affiliated with the USDA NOP, based on its environmental 

or health benefits or attributes. 

B. Making any representation, expressly or by implication, about the 

environmental or health benefits of any good or service, unless the representation 

is non-misleading, and, at the time such representation is made, Defendants 

possess and rely upon competent and reliable scientific evidence that is sufficient 

in quality and quantity based on standards generally accepted in the relevant 

scientific fields, when considered in light of the entire body of relevant and reliable 

scientific evidence, to substantiate that the representation is true. 

II. MEANS AND INSTRUMENTALITIES 

 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation 

with any of them, who receive actual notice of this Order, whether acting directly 

or indirectly, in connection with the sale of any good or service, are permanently 

enjoined from providing to others the means and instrumentalities with which to 

make any representation prohibited by Section I above. 

III. MONETARY JUDGMENT

IT IS FURTHER ORDERED that judgment in the amount of One Million, 

Seven Hundred Sixty Four Thousand, and Four Hundred Fifty One Dollars 

($1,764,451) is entered in favor of the Commission against the Individual 

Defendant and Corporate Defendant, jointly and severally, as equitable monetary 

relief. 

IV. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendants relinquish dominion and all legal and equitable right, title, and 

interest in all assets transferred pursuant to this Order and may not seek the 

return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further 

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proof, in any subsequent civil litigation by or on behalf of the Commission, 

including in a proceeding to enforce its rights to any payment or monetary 

judgment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to 

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral 

estoppel effect for such purposes. 

D. Defendants acknowledge that their Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendants 

previously submitted to the Commission, may be used for collecting and reporting 

on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. 

§7701. 

E. All money paid to the Commission pursuant to this Order may be 

deposited into a fund administered by the Commission or its designee to be used 

for equitable relief, including consumer redress and any attendant expenses for 

the administration of any redress fund. If a representative of the Commission 

decides that direct redress to consumers is wholly or partially impracticable or 

money remains after redress is completed, the Commission may apply any 

remaining money for such other equitable relief (including consumer information 

remedies) as it determines to be reasonably related to Defendants’ practices 

alleged in the Complaint. Any money not used for such equitable relief is to be 

deposited to the U.S. Treasury as disgorgement. Defendants have no right to 

challenge any actions the Commission or its representatives may take pursuant 

to this Subsection. 

V. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation 

with any of them, who receive actual notice of this Order, are permanently 

restrained and enjoined from directly or indirectly failing to provide sufficient 

customer information to enable the Commission to efficiently administer 

consumer redress. Defendants represent that they have provided this redress 

information to the Commission. If a representative of the Commission requests 

in writing any information related to redress, Defendants must provide it, in the 

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form prescribed by the Commission, within 14 days. 

VI. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of 

receipt of this Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of 

perjury. 

B. For 10 years after entry of this Order, Individual Defendant for any 

business that such Defendant, individually or collectively with any other 

Defendants, is the majority owner or controls directly or indirectly, and Corporate 

Defendant, must deliver a copy of this Order to: (1) all principals, officers, 

directors, and LLC managers and members; (2) all employees having managerial 

responsibilities for conduct related to the subject matter of the Order and all 

agents and representatives who participate in conduct related to the subject 

matter of the Order; and (3) any business entity resulting from any change in 

structure as set forth in the Section titled Compliance Reporting. Delivery must 

occur within 7 days of entry of this Order for current personnel. For all others, 

delivery must occur before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this 

Order, that Defendant must obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

VII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendants make timely submissions to 

the Commission: 

A. One year after entry of this Order, each Defendant must submit a 

compliance report, sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and 

email address and telephone number, as designated points of contact, which 

representatives of the Commission may use to communicate with Defendant; (b) 

identify all of that Defendant’s businesses by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe the 

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activities of each business, including the goods and services offered, the means 

of advertising, marketing, and sales, and the involvement of any other Defendant 

(which Individual Defendant must describe if he knows or should know due to 

his own involvement); (d) describe in detail whether and how that Defendant is in 

compliance with each Section of this Order; and (e) provide a copy of each Order 

Acknowledgment obtained pursuant to this Order, unless previously submitted 

to the Commission. 

2. Additionally, Individual Defendant must: (a) identify all telephone 

numbers and all physical, postal, email and Internet addresses, including all 

residences; (b) identify all business activities, including any business for which 

such Defendant performs services whether as an employee or otherwise and any 

entity in which such Defendant has any ownership interest; and (c) describe in 

detail such Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership. 

B. For 20 years after entry of this Order, each Defendant must submit a 

compliance notice, sworn under penalty of perjury, within 14 days of any change 

in the following: 

1. Each Defendant must report any change in: (a) any designated point 

of contact; or (b) the structure of Corporate Defendant or any entity that 

Defendant has any ownership interest in or controls directly or indirectly that 

may affect compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this Order. 

2. Additionally, Individual Defendant must report any change in: (a) 

name, including aliases or fictitious name, or residence address; or (b) title or 

role in any business activity, including any business for which such Defendant 

performs services whether as an employee or otherwise and any entity in which 

such Defendant has any ownership interest, and identify the name, physical 

address, and any Internet address of the business or entity. 

C. Each Defendant must submit to the Commission notice of the filing of any 

bankruptcy petition, insolvency proceeding, or similar proceeding by or against 

such Defendant within 14 days of its filing. 

D. Any submission to the Commission required by this Order to be sworn 

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under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 

1746, such as by concluding: “I declare under penalty of perjury under the laws 

of the United States of America that the foregoing is true and correct. Executed 

on: _____” and supplying the date, signatory’s full name, title (if applicable), and 

signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to 

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 

Associate Director for Enforcement, Bureau of Consumer Protection, Federal 

Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The 

subject line must begin: FTC v. Truly Organic Inc. 

VIII. RECORDKEEPING

IT IS FURTHER ORDERED that Defendants must create certain records 

for 20 years after entry of the Order, and retain each such record for 5 years. 

Specifically, Corporate Defendant and Individual Defendant for any business that 

such Defendant, individually or collectively with any other Defendants, is a 

majority owner or controls directly or indirectly, must create and retain the 

following records: 

A. Accounting records showing the revenues from all goods or services sold; 

B. Personnel records showing, for each person providing services, whether as 

an employee or otherwise, that person’s: name; addresses; telephone numbers; 

job title or position; dates of service; and (if applicable) the reason for termination; 

C. Records of all consumer complaints and refund requests, whether received 

directly or indirectly, such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with each provision 

of this Order, including all submissions to the Commission; and 

E. A copy of each unique advertisement or other marketing material. 

IX. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’ 

compliance with this Order, including any failure to transfer any assets as 

required by this Order: 

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A. Within 14 days of receipt of a written request from a representative of the 

Commission, each Defendant must: submit additional compliance reports or 

other requested information, which must be sworn under penalty of perjury; 

appear for depositions; and produce documents for inspection and copying. The 

Commission is also authorized to obtain discovery, without further leave of court, 

using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to 

communicate directly with each Defendant. Defendant must permit 

representatives of the Commission to interview any employee or other person 

affiliated with any Defendant who has agreed to such an interview. The person 

interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, through 

its representatives as consumers, suppliers, or other individuals or entities, to 

Defendants or any individual or entity affiliated with Defendants, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 

of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

D. Upon written request from a representative of the Commission, any 

consumer reporting agency must furnish consumer reports concerning Individual 

Defendant, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. 

§1681b(a)(1). 

X. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

The Clerk is directed to close this case. 

Done and ordered in chambers at Miami, Florida on September 18, 2019. 

 ________________________________ 

 Robert N. Scola, Jr. 

 United States District Judge 

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