Case: 5:18-cv-00064 Doc #: 1 Filed: 01/10/18 1 of 7. PageID #: 1 

UNITED STATES DISTRICT COURT
 

NORTHERN DISTRICT OF OHIO
 

Case Number: 5:18-cv-64 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

INFOCISION, INC., a Delaware 

corporation, 

Defendant. 

COMPLAINT FOR CIVIL PENALTIES,
 

PERMANENT INJUNCTION, AND OTHER RELIEF
 

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission (“FTC” or “Commission”), pursuant to 

Section 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 56(a)(1), for its 

complaint alleges: 

1. Plaintiff brings this action under Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the 

FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a), and Section 6 of the Telemarketing 

and Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. § 6105, to 

obtain monetary civil penalties, a permanent injunction, and other relief for Defendant’s 

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violations of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and the FTC’s Telemarketing Sales 

Rule (“TSR” or “Rule”), as amended, 16 C.F.R Part 310. 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. 

§§ 1331, 1337(a), 1345, and 1355, and 15 U.S.C. §§ 45(m)(1)(A), 53(b), and 56(a). This action 

arises under 15 U.S.C. § 45(a). 

3. Venue is proper in this District under 28 U.S.C. §§ 1391(b)-(c) and 1395(a), and 

15 U.S.C. § 53(b). Defendant resides and transacts business in this District. 

DEFENDANT 

4. Defendant, InfoCision, Inc. (“InfoCision”), is a for-profit Delaware corporation 

with its principal place of business at 325 Springside Drive, Akron, OH, 44333. InfoCision is a 

telemarketer that initiates outbound telephone calls on behalf of charitable organizations to 

induce consumers to make charitable contributions. InfoCision transacts or has transacted 

business in this District and throughout the United States. 

5. At all times relevant to this Complaint, InfoCision has maintained a substantial 

course of trade or business in soliciting charitable contributions via the telephone, in or affecting 

commerce, as “commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

THE TELEMARKETING SALES RULE 

6. Congress directed the Commission to prescribe rules prohibiting abusive and 

deceptive telemarketing acts or practices pursuant to the Telemarketing Act, 15 U.S.C. §§ 6101-

6108. The Commission adopted the original TSR in 1995, extensively amended it in 2003, and 

amended certain provisions thereafter. 16 C.F.R. Part 310. 

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7. Section 1011 of the USA Patriot Act, codified in relevant part at 15 U.S.C. 

§§ 6102 and 6106, amended the Telemarketing Act to cover “charitable solicitations.” It 

directed the FTC to expand the scope of the TSR to cover calls made to solicit charitable 

contributions. In 2002, the FTC amended the TSR to modify the definition of telemarketing to 

(1) include interstate calls made by for-profit telemarketers to solicit charitable contributions, (2) 

require for-profit telemarketers calling to solicit such contributions to promptly disclose the 

name of the organization making the request and that the purpose of the call is to ask for a 

charitable contribution, and (3) prohibit for-profit telemarketers from making a false or 

misleading statement to induce any person to make a charitable contribution. These 

requirements ensure that for-profit telemarketers that solicit charitable contributions are truthful 

about the purpose of the call and that consumers receive material information so that they can 

make informed choices about whether to engage with the telemarketers and give a charitable 

contribution. 

8. Under the TSR, a “telemarketer” means “any person who, in connection with 

telemarketing, initiates or receives telephone calls to or from a customer or donor.” 16 C.F.R. § 

310.2(ff). A “donor” means “any person solicited to make a charitable contribution,” 16 C.F.R. 

§ 310.2(p), and a “charitable contribution” means “any donation or gift of money or any other 

thing of value.” 16 C.F.R. § 310.2(h). 

9. Under the TSR, an “outbound” telephone call means “a telephone call initiated by 

a telemarketer to induce the purchase of goods or services or to solicit a charitable contribution.” 

16 C.F.R. § 310.2(x). 

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10. The TSR prohibits telemarketers from “[m]aking . . . false or misleading 

statement[s] to induce any person to pay for goods or services or to induce a charitable 

contribution.” 16 C.F.R § 310.3(a)(4). 

11. Pursuant to Section 3(c) of the Telemarketing Act, 15 U.S.C. § 6102(c), and 

Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), a violation of the TSR constitutes an 

unfair or deceptive act or practice in or affecting commerce, in violation of Section 5(a) of the 

FTC Act, 15 U.S.C. § 45(a). 

DEFENDANT’S BUSINESS PRACTICES 

12. InfoCision is a “telemarketer” engaged in “telemarketing” as those terms are 

defined in the TSR. 

13. InfoCision initiates outbound telephone calls to consumers in the United States to 

induce consumers to make charitable contributions to hundreds of various charitable 

organizations. 

14. InfoCision has engaged in telemarketing by a plan, program, or campaign 

conducted to induce consumers to make charitable contributions to these charitable organizations 

by the use of one or more telephones and which involves more than one interstate telephone call. 

15. Since at least 2013, InfoCision has conducted hundreds of telemarketing 

campaigns on behalf of these charitable organizations, involving millions of telephone calls to 

consumers. 

16. In some of these telemarketing campaigns, InfoCision’s telemarketers called 

consumers and told them at the beginning of the call that the purpose of the call was not to ask 

for a donation. In such calls, InfoCision’s telemarketers subsequently asked consumers to mail 

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or hand-deliver to family, friends, or neighbors materials asking for monetary donations on 

behalf the charitable organization. In numerous instances in those same calls, contrary to 

InfoCision’s initial representations and claims, InfoCision’s telemarketers also asked consumers 

to make a monetary donation, often in amounts of $10, $25, or $50. 

VIOLATIONS OF THE TELEMARKETING SALES RULE
 

Count I
 

False or Misleading Statements to Induce a Charitable Contribution
 

17. As described in Paragraphs 12 through 16 above, in numerous instances in 

connection with telemarketing, Defendant has made, or caused others to make, false and 

misleading statements in outbound telephone calls to consumers to induce a charitable 

contribution in violation of the TSR. 16 C.F.R § 310.3(a)(4). 

CONSUMER INJURY 

18. Consumers in the United States have suffered and will suffer injury as a result of 

Defendant’s violations of the TSR. Absent injunctive relief by this Court, Defendant is likely to 

continue to injure consumers and harm the public interest. 

THIS COURT’S POWER TO GRANT RELIEF 

19. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant 

injunctive and other ancillary relief to prevent and remedy any violation of any provision of law 

enforced by the FTC. 

20. Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A), as modified by 

Section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. § 2461, as 

amended, and as implemented by 16 C.F.R. § 1.98(d), authorizes this Court to award monetary 

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civil penalties. In 2013, the Court was authorized to award a penalty of not more than $16,000 

for each violation of the TSR. See 16 C.F.R. § 1.98(d) (2009). The maximum penalty amount 

was adjusted to $40,000 per violation as of August 1, 2016, and further adjusted to $40,654 per 

violation as of January 24, 2017, pursuant to the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, Pub. L. 114-74 § 701 (further amending the Federal Civil Penalties 

Inflation Adjustment Act of 1990), and 16 C.F.R. § 1.98, 81 Fed. Reg. 42,476 (June 30, 2016); 

82 Fed. Reg. 8135 (January 24, 2017). 

21. Defendant’s violations of the TSR were committed with the knowledge required 

by Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

22. This Court, in the exercise of its equitable jurisdiction, may award ancillary relief 

to remedy injury caused by Defendant’s violations of the TSR and the FTC Act. 

PRAYER FOR RELIEF 

WHEREFORE, Plaintiff requests that this Court, as authorized by Sections 5(a), 

5(m)(1)(A), and 13(b) of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), and 53(b), and pursuant 

to its own equitable powers: 

A. Enter judgment against Defendant and in favor of Plaintiff for each violation 

alleged in this complaint; 

B. Award Plaintiff monetary civil penalties from the Defendant for every violation of 

the TSR; 

C. Enter a permanent injunction to prevent future violations of the TSR and the FTC 

Act by Defendant; and 

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D. Award Plaintiff the costs of bringing this action, as well as such other and 

additional relief as the Court may determine to be just and proper. 

Respectfully submitted, 

FOR THE FEDERAL TRADE 

COMMISSION: 

CHARLES A. HARWOOD 

Regional Director 

Northwest Region 

TINA E. KONDO 

Assistant Regional Director 

Northwest Region 

NADINE S. SAMTER 

SARAH A. SHIFLEY 

Attorneys 

Northwest Region 

Federal Trade Commission 

915 Second Avenue, Suite 2896 

Seattle, WA 98174 

(206) 220-6350 (voice) 

(206) 220-6366 (fax) 

nsamter@ftc.gov 

sshifley@ftc.gov 

FOR PLAINTIFF 

THE UNITED STATES OF AMERICA: 

CHAD A. READLER 

Acting Assistant Attorney General 

Civil Division 

U.S. Department of Justice 

ETHAN DAVIS 

Deputy Assistant Attorney General 

Civil Division 

GUSTAV W. EYLER 

Acting Director 

Consumer Protection Branch 

By: s/ Kathryn A. Schmidt_________ 

KATHRYN A. SCHMIDT 

Trial Attorney 

Consumer Protection Branch 

450 Fifth Street NW, 6th Floor South 

Washington, DC 20001 

(202) 598-8697 (voice) 

(202) 514-8742 (fax) 

kathryn.a.schmidt@usdoj.gov 

JUSTIN E. HERDMAN 

United States Attorney 

MICHELLE L. HEYER (0065723) 

Assistant U.S. Attorney 

801 West Superior Avenue, Suite 400 

Cleveland OH 44113 

(216) 622-3686 (voice) 

(216) 522-2404 (fax) 

michelle.heyer@usdoj.gov 

Dated: January 10, 2018 

InfoCision Complaint – Page 7 
 

JS 44 (Rev. 06/17) CIVIL COVER SHEET Case: 5:18-cv-00064 Doc #: 1-1 Filed: 01/10/18 1 of 2. PageID #: 8 

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as

provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the

purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) 

I. (a)	 PLAINTIFFS DEFENDANTS InfoCision, Inc., a Delaware corporation 

United States of America 

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant Summit County 

(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY) 

NOTE:	 IN LAND CONDEMNATION CASES, USE THE LOCATION OF

THE TRACT OF LAND INVOLVED. 

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)

Kathryn A. Schmidt, Consumer Protection Branch, U.S. Department of Terry Brennan and Michael Meuti, Baker Hostetler 

Justice, P.O. Box 386, Washington DC 20044 

u

II. BASIS OF JURISDICTION (Place an “X” in One Box Only) 

1 U.S. Government u 3 Federal Question

Plaintiff (U.S. Government Not a Party) 

III. CITIZENSHIP OF PRINCIPA

(For Diversity Cases Only)

 PTF DEF

Citizen of This State u 1 u 1 

L PARTIES (Place an “X” in One Box for Plaintiff 

and One Box for Defendant) 

PTF DEF 

Incorporated or Principal Place u 4 u 4

 of Business In This State 

u 2 U.S. Government 

Defendant 

u 4 Diversity 

(Indicate Citizenship of Parties in Item III) 

Citizen of Another State u 2 u 2 Incorporated and Principal Place 

of Business In Another State 

u 5 u 5 

Citizen or Subject of a 

Foreign Country 

u 3 u 3 Foreign Nation u 6 u 6

IV. NATURE OF SUIT (Place an “X” in One Box Only)	 Click here for: Nature of Suit Code Descriptions. 

CONTRACT 

u 110 Insurance

u 120 Marine 

u 130 Miller Act 

u 140 Negotiable Instrument

u 150 Recovery of Overpayment 

 & Enforcement of Judgment

u 151 Medicare Act 

u 152 Recovery of Defaulted

 Student Loans 

(Excludes Veterans) 

u 153 Recovery of Overpayment

 of Veteran’s Benefits 

u 160 Stockholders’ Suits 

u 190 Other Contract

u 195 Contract Product Liability 

u 196 Franchise

TORTS 

PERSONAL INJURY PERSONAL INJURY 

u 310 Airplane u 365 Personal Injury -

u 315 Airplane Product Product Liability 

Liability u 367 Health Care/ 

u 320 Assault, Libel & Pharmaceutical 

Slander Personal Injury 

u 330 Federal Employers’ Product Liability 

Liability u 368 Asbestos Personal 

u 340 Marine Injury Product

u 345 Marine Product Liability 

Liability PERSONAL PROPERTY 

u 350 Motor Vehicle u 370 Other Fraud 

u 355 Motor Vehicle u 371 Truth in Lending

 Product Liability u 380 Other Personal 

u 360 Other Personal Property Damage

 Injury u 385 Property Damage 

u 362 Personal Injury - Product Liability 

 Medical Malpractice

FORFEITURE/PENALTY 

u 625 Drug Related Seizure 

 of Property 21 USC 881 

u 690 Other

LABOR 

BANKRUPTCY 

u 422 Appeal 28 USC 158 

u 423 Withdrawal 

28 USC 157

PROPERTY RIGHTS 

u 820 Copyrights 

u 830 Patent 

u 835 Patent - Abbreviated 

New Drug Application 

u 840 Trademark

SOCIAL SECURITY 

u 861 HIA (1395ff) 

u 862 Black Lung (923) 

u 863 DIWC/DIWW (405(g))

u 864 SSID Title XVI 

u 865 RSI (405(g)) 

OTHER STATUTES 

u 375 False Claims Act 

u 376 Qui Tam (31 USC 

3729(a)) 

u 400 State Reapportionment 

u 410 Antitrust

u 430 Banks and Banking 

u 450 Commerce 

u 460 Deportation

u 470 Racketeer Influenced and

 Corrupt Organizations 

u 480 Consumer Credit

u 490 Cable/Sat TV 

u 850 Securities/Commodities/ 

Exchange 

u 890 Other Statutory Actions 

u 891 Agricultural Acts 

u 893 Environmental Matters

u 895 Freedom of Information

 Act 

u 896 Arbitration 

u 899 Administrative Procedure 

Act/Review or Appeal of 

 Agency Decision 

u 950 Constitutionality of 

 State Statutes

u 710 Fair Labor Standards 

Act 

u 720 Labor/Management 

Relations 

u 740 Railway Labor Act 

u 751 Family and Medical 

 Leave Act 

u 790 Other Labor Litigation 

u 791 Employee Retirement 

 Income Security Act

IMMIGRATION

u 462 Naturalization Application 

u 465 Other Immigration

 Actions 

REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS FEDERAL TAX SUITS

u 210 Land Condemnation 

u 220 Foreclosure 

u 230 Rent Lease & Ejectment 

u 240 Torts to Land 

u 245 Tort Product Liability

u 290 All Other Real Property 

u 440 Other Civil Rights 

u 441 Voting 

u 442 Employment 

u 443 Housing/

 Accommodations 

u 445 Amer. w/Disabilities -

 Employment 

u 446 Amer. w/Disabilities -

Other 

u 448 Education 

Habeas Corpus: 

u 463 Alien Detainee

u 510 Motions to Vacate 

Sentence

u 530 General 

u 535 Death Penalty 

Other: 

u 540 Mandamus & Other 

u 550 Civil Rights

u 555 Prison Condition 

u 560 Civil Detainee -

Conditions of 

 Confinement 

u 870 Taxes (U.S. Plaintiff 

or Defendant) 

u 871 IRS—Third Party

 26 USC 7609

V. ORIGIN (Place an “X” in One Box Only) 

u 1 Original u 2 Removed from u 3 Remanded from u 4 Reinstated or u 5 Transferred from u 6 Multidistrict u 8 Multidistrict

Proceeding State Court Appellate Court Reopened Another District Litigation - Litigation -

(specify) Transfer Direct File 

Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): 

15 U.S.C. 45 VI. CAUSE OF ACTION Brief description of cause: 

Violation of the Federal Trade Commission's Telemarketing Sales Rule and the Federal Trade Commission Act 

VII. REQUESTED IN u CHECK IF THIS IS A CLASS ACTION DEMAND $ CHECK YES only if demanded in complaint: 

COMPLAINT: UNDER RULE 23, F.R.Cv.P. JURY DEMAND: u Yes u No 

VIII. RELATED CASE(S)

(See instructions): IF ANY JUDGE	 DOCKET NUMBER 

DATE	 SIGNATURE OF ATTORNEY OF RECORD 

01/10/2018	 /s/ Kathryn A. Schmidt 

FOR OFFICE USE ONLY 

RECEIPT # AMOUNT	 APPLYING IFP JUDGE MAG. JUDGE 
 

I. Civil Categories: (Please check one category only). 

1. ✔ General Civil

 2. Administrative Review/Social Security

 3. Habeas Corpus Death Penalty 

*If under Title 28, §2255, name the SENTENCING JUDGE:

Case: 5:18-cv-00064 Doc #: 1-1 Filed: 01/10/18 2 of 2. PageID #: 9 

UNITED STATES DISTRICT COURT
 

NORTHERN DISTRICT OF OHIO
 

 CASE NUMBER: 

II. RELATED OR REFILED CASES. See LR 3.1 which provides in pertinent part: "If an action is filed or removed to this Court 

and assigned to a District Judge after which it is discontinued, dismissed or remanded to a State court, and 

subsequently refiled, it shall be assigned to the same Judge who received the initial case assignment without regardfor 

the place of holding court in which the case was refiled. Counsel or a party without counsel shall be responsible for 

bringing such cases to the attention of the Court by responding to the questions included on the Civil Cover Sheet." 

This action LVRELATED to another PENDINGcivil case LVDREFILEDFDVH ZDV35(9,286/<5(0$1'('

If applicable, please indicate on page 1 in section VIII, the name of the Judge and case number. 

III. In accordance with Local Civil Rule 3.8, actions involving counties in the Eastern Division shall be filed at any of the 

divisional offices therein. Actions involving counties in the Western Division shall be filed at the Toledo office. For the 

purpose of determining the proper division, and for statistical reasons, the following information is requested. 

ANSWER ONE PARAGRAPH ONLY. ANSWER PARAGRAPHS 1 THRU 3 IN ORDER. UPON FINDING WHICH 

PARAGRAPH APPLIES TO YOUR CASE, ANSWER IT AND STOP. 

(1) Resident defendant. If the defendant resides in a county within this district, please set forth the name of such 

county 

COUNTY: Summit County 
 

Corporation For the purpose of answering the above, a corporation is deemed to be a resident of that county in which
 

it has its principal place of business in that district.
 

(2)	 Non-Resident defendant. If no defendant is a resident of a county in this district, please set forth the county 

wherein the cause of action arose or the event complained of occurred. 

COUNTY: 

(3)	 Other Cases. If no defendant is a resident of this district, or if the defendant is a corporation not having a principle 

place of business within the district, and the cause of action arose or the event complained of occurred outside 

this district, please set forth the county of the plaintiff's residence. 

COUNTY: 

IV. The Counties in the Northern District of Ohio are divided into divisions as shown below. After the county is 

determined in Section III, please check the appropriate division. 

EASTERN DIVISION

✔ AKRON (Counties: Carroll, Holmes, Portage, Stark, Summit, Tuscarawas and Wayne)

 CLEVELAND (Counties: Ashland, Ashtabula, Crawford, Cuyahoga, Geauga, Lake, 

Lorain, Medina and Richland) 

YOUNGSTOWN (Counties: Columbiana, Mahoning and Trumbull) 

WESTERN DIVISION

 TOLEDO (Counties: Allen, Auglaize, Defiance, Erie, Fulton, Hancock, Hardin, Henry, 

Huron, Lucas, Marion, Mercer, Ottawa, Paulding, Putnam, Sandusky, Seneca

 VanWert, Williams, Wood and Wyandot)