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UNITED STATES DISTRICT COURT 

FOR THE MIDDLE DISTRlCT OF FLORIDA 

FEDERAL TRADE corvnvnsSION, 

Plaintiff, 

vs. 

BENEFYTT TECHNOLOGIES, INC., f/k/a 

HEALTH INSURANCE INNOVATIONS, 

INC.; 

HEALTH PLAN INTERMEDIARIES 

HOLDINGS, LLC; 

HEAL THPOCK.ET, INC., d/b/a 

AGILEHEAL THINSURANCE; 

GA VIND. SOUTHWELL, individually and 

as a former officer, director, and manager of 

Benefytt Technologies, Inc., Health Plan 

Intermediaries Holdings, LLC,- and 

HealthPocket, Inc.; and 

AMYE. BRADY, individually and as a 

former vice president and manager of 

Benefytt Technologies, Inc. and Health Plan 

Intermediaries Holdings, LLC. 

Defendants. 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION, 

MONETARY JUDGMENT,AND 

OTHER RELIEF AGAINST 

DEFENDANTSBENEFYTT 

TECHNOLOGIES, INC., 

HEALTH PLAN 

INTERMEDIARIES 

HOLDINGS, LLC, AND 

HEALTHPOCKET, INC. 

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

Complaint for Permanent Injunction, Monetary Relief, and Other Relief 

("Complaint") in this matter, pursuant to Sections 5(a)(l), S(m)(l)(A), 13(b), and 

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19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(a)(l), 

45(m)(l )(A), 53(b ), 57b, the Telemarketing and Consumer Fraud and Abuse Act 

("Telemarketing Act"), 15 U.S.C. §§ 6101-6108, and Section 5 of the Restore 

Online Shoppers' Confidence Act ("ROSCA"), 15 U.S.C. § 8404. The 

Commission and Defendants Benefytt Technologies, Inc., Health Plan 

Intennediaries Holdings, LLC, and HealthPocket, Inc. ("Corporate Defendants") 

stipulate to the entry of this Stipulated Order for Pennanent Injunction, Monetary 

Judgment, and Other Relief {°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, unfair, and 

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

the FTC's Telemarketing Sales Rule ("TSR"), 16 C.F.R. Part 310, as amended, and 

Section 4 of ROSCA, 15 U.S.C. § 8403, in connection with the advertising, 

marketing, telemarketing, promoting, offering for sale, or sale of association 

memberships and related health products, including short-term medical plans, 

limited benefit plans, and medical discount plans. 

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3. Corporate 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, Corporate Defendants admit the facts necessary to establish jurisdiction. 

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

Access to 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. Corporate Defendants 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. "ACA" means the Patient Protection and Affordable Care Act of 2010, 

Pub. L. No 111-148, 124 Stat..119. 

B. ''Billing Information1

' means any data that enables any person to 

access a customer's accom1t, such as a credit card, checking, savings, share or 

similar account, utility bill, mo~gage loan account, or debit card. 

C. "Charge," "Charged," or "Charging" means any attempt to collect 

money or other consideration from a consumer, including causing Billing 

Information to be submitted for payment, including against the consumer's credit 

card, debit card, bank account, telephone bill, or other account. 

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D. "Clear(ly) and conspicuous(ly)" means that a required disclosure is 

difficult to miss (i.e., easily noticeable) and easily understandable by ordinary 

consumers, including in all of the following ways: 

l. In any communication that is solely visual or solely audible, the 

disclosure must be made through the same means through which the 

communication is presented. In any communication made through both visual and 

audible means, such as a television advertisement, the disclosure must be presented 

simultaneously in both the visual and audible portions of the communication even if 

the representation requiring the disclosure is made in only one means. 

2. A visual disclosure, by its size, contrast, location, the length of 

time it appears, and other characteristics, must stand out from any accompanying 

text or other visual elements so that it is easily noticed, read, and understood. 

3. An audible disclosure, including by telephone or streaming 

video, must be delivered in a volume, speed, and cadence sufficient for ordinary 

consumers to easily hear and understand it. 

4. In any communication using an interactive electronic medium, 

such as the Internet or software, the disclosure must be unavoidable. 

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5. The disclosure must use diction and syntax understandable to 

ordinary consumers and must appear in each language in which the representation 

that requires the disclosure appears. 

6. The disclosure must comply with these requirements in each 

medium through which it is received, including all electronic devices and face-toface communications. 

7. The disclosure must not be contradicted or mitigated by, or 

inconsistent with, anything else in the communication. 

8. When the representation or sales practice targets a specific 

audience, such as children, the· elderly, or the terminally ill, "ordinary consumers" 

includes reasonable members of that group. 

E. "Covered Information" means information from or about an 

individual consumer, including_ (a) first and last name; (b) a home or other physical 

address; ( c) an email address or other online contact information, such as an instant 

messaging user identifier or a screen name; (d) a telephone number; (e) a Social 

Security number; (f) a driver's license or other government-issued identification 

nwnber; (g) a financial institution account number; (h) credit or debit card 

information; (i) precise geolocation data of an individual or mobile device, 

including OPS-based, WiFi-based, or cell-based location information; or 0) an 

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authentication credential, such as a username or password. 

F. "Defendants" means all of the Individual Defendants and the 

Corporate Defendants, individually, collectively, or in any combination. 

1. "Corporate Defendants" means Benefytt Technologies, Inc., 

f/k/a Health Insurance Innovations, Inc., Health Plan Intermediaries Holdings, LLC, 

HealthPocket, Inc. d/b/a AgileHealthlnsurance, and their successors and assigns. 

2. "Individual Defendants" means Gavin D. Southwell and Amy 

E. Brady. 

G. "Distributor" means any person who advertises, markets, provides, 

offers to provide, or arranges for others to provide any good or service to a 

customer in exchange for consideration. 

H. "Lead Generation" means (a) using marketing techniques to identify 

or attract prospective customers' interest in a third party's product or service; (b) 

obtaining, or assisting others in obtaining, Covered Information of prospective 

customers for a third-party's product or service; or ( c) providing any such Covered 

Information of prospective customers to a third party. 

I. "Lead Generator" means any person who offers or has provided, in 

exchange for consideration, Covered lnfonnation to a Defendant or Distributor, or 

who assists others in providing such information to a Defendant or Distributor. 

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J. "Negative Option Feature" means, in an offer or agreement to sell or 

provide any good or service, a provision under which the consumer's silence or 

failure to take affirmative action to reject a good or service or to cancel the 

agreement is inteipreted by the seller or provider as acceptance or continuing 

acceptance of the offer. 

K. "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. 

L. "Seller" means any person who, in connection with a Telemarketing 

transaction, provides, offers to provide, or arranges for others to provide goods or 

services to the customer in exchange for consideration whether or not such person is 

under the jurisdiction of the Commission. 

M. "Telemarketer" means any person who, in connection with 

Telemarketing, initiates or receives telephone calls to or from a customer or donor, 

whether or not such person is under the jurisdiction of the Commission. 

N. "Telemarketing" means a plan, program, or campaign which is 

conducted to induce the purchase of goods or services or a charitable contribution, 

by use of one or more telephones and which involves more than one interstate 

telephone call, whether or not covered by the Telemarketing Sales Rule. 

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ORDER 

I. PROHIBITED BUSINESS PRACTICES 

IT IS ORDERED that Corporate Defendants, Corporate 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 advertising, marketing, promoting, 

or offering for sale any good or service, are permanently restrained and enjoined 

from: 

A. Misrepresenting or assisting others in misrepresenting, expressly or by 

implication: 

1. any cost to the consumer to purchase, receive, use, or return the 

good or service; 

2. that any good or service is included at no additional cost with 

the purchase of another good or service; 

3. that any good or service is a qualified health plan under the 

ACA or is "Obamacare"; 

4. that any good or service provides benefits equivalent to a 

qualified health plan under the ACA; 

5. that any good or service is comprehensive health insurance or 

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major medical insurance, or provides benefits equivalent to such 

insurance; or 

6. any other fact material to consumers concerning any good or 

service, such as: the total costs; any material restrictions, limitations, 

or conditions; or any material aspect of its performance, efficacy, 

nature, or central characteristics; 

B. Making any representation, or assisting others in making any 

representation, expressly or by implication, unless the representation is 

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

possess and rely upon competent and reliable evidence that is sufficient in quality 

and quantity to substantiate that the representation is true, regarding any good or 

service; 

C. Failing to disclose, or assisting others in failing to disclose, Clearly and 

Conspicuously, before requesting any Billing Information from a consumer: 

1. the complete name of each good or service to be purchased, the 

name of the seller or provider of each good or service to be purchased, 

and, if the name of the seller or provider will not appear on billing 

statements, the billing descriptor that will appear on such statements; 

2. a description of each good or service; 

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3. all costs and fees, itemized by each good or service to be 

purchased; 

4. all applicable exclusions, limitations, or waiting periods related 

to the use of any good or service; 

5. the terms of any refund, cancellation, exchange, or repurchase 

policy for any good or service, including the extent to which the 

consumer must take affirmative action to avoid any Charges; and 

6. the simple cancellation method to stop any recurring Charges, as 

required by Subsection I.G; 

D. Causing any consumer to be billed for any good or service without 

having previously obtained the consumer's express informed consent; 

E. Failing to send the consumer: 

1. Immediately after the consumer's submission of an online order, 

written confirmation of the transaction by email if Corporate 

Defendants are in possession of the consumer's email address. The 

email must Clearly and Conspicuously disclose all the information 

required by Subsection LC, and contain a subject line reading "Order 

Confirmation" along with the name of the good(s) or service(s), and no 

additional information. If Corporate Defendants are not in possession 

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of the consumer's email address, Corporate Defendants must provide 

confirmation to online purchasers or cancel the transaction as set forth 

in Subsection I.E.2; or 

2. Within 2 days after receipt of the consumer's order by mail or 

telephone, or where a consumer who submitted an order online did not 

provide Corporate Defendants with an email address, a written 

confinnation of the transaction, either by email or first class mail. 

The email or letter must Clearly and Conspicuously disclose all the 

information required by Subsection LC. The subject line of the email 

must Clearly and Conspicuously state "Order Confirmation" along 

with the name of the good(s) or service(s), and nothing else. The 

outside of the envelope must Clearly and Conspicuously state "Order 

Confirmation" along with "Important Information About Your Recent 

Purchase and Enrollment," and no additional information other than 

the consumer's address, the sending Defendant's return address, and 

postage. Provided, however, that if Corporate Defendants are not in 

possession of either an email address or a physical address for a 

consumer and cannot obtain such information and send confirmation of 

the purchase within 2 days after receipt of an order pursuant to this 

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Subsection, Corporate Defendants must immediately cancel the 

consumer's purchase and refund all charges; 

F. Representing directly or indirectly, expressly or by implication, that 

any good or service that includes a Negative Option Feature is being offered on a 

free, trial, no obligation, reduced, or discounted basis, without disclosing Clearly 

and Conspicuously: 

1. The extent to which the consumer must take any affirmative 

action to avoid any Charges: a) for the offered good or service, b} of an 

increased amount after the trial or promotional period ends, and c) on a 

recurring basis; 

2. The total cost ( or range of costs) the consumer will be Charged 

and, if applicable, the frequency of such Charges unless the consumer 

timely takes steps to prevent or stop such Charges; and 

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges. 

G. Failing to provide a simple and easy-to-use method by which 

consumers can cancel the Charge for any good or service; such method must not be 

difficult, costly, confusing, or time consuming, and must be at least as simple as the 

method the consumer used to initiate the Charge(s); 

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H. Failing to promptly cancel a consumer's purchase of any good or 

service after receiving the consumer's cancellation request; or 

I. Causing a consumer, after the consumer requests to cancel any good or 

service, to continue being billed for any other good or service without obtaining that 

consumer's express informed consent. 

II. INJUNCTION CONCERNING DUE DILIGENCE AND MONITORING 

IT IS FURTHER ORDERED that Corporate Defendants, Corporate 

Defendants' officers, agents, employees, 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 advertising, marketing, promoting 

or offering for sale any good or service, are hereby restrained and enjoined from: 

A. Failing to, as a condition of doing business with any Distributor or 

Lead Generator: (a) provide each such Distributor or Lead Generator a copy of 

this Order within 7 days of entry of this Order; (b) Clearly and Conspicuously 

disclose in writing that engaging in acts and practices prohibited by the Order will 

result in immediate termination of any Distributor or Lead Generator and forfeiture 

of all monies owed to such Distributor or Lead Generator; and ( c) either (i) obtain 

from each such Distributor or Lead Generator, within 3 0 days of entry of this Order, 

a signed and dated statement acknowledging receipt of this Order and expressly 

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agreeing to comply with this Order or (ii) cease doing business with each such 

Distributor or Lead Generator until such time as the Distributor or Lead Generator 

has provided a signed and dated statement acknowledging receipt of this Order and 

expressly agreeing to comply with this Order; 

B. Failing to require that each Distributor or Lead Generator, before 

using any material to advertise,. market, promote, offer for sale, or sell any good or 

service on Corporate Defendants' behalf, provide Corporate Defendants with the 

following information: (a) copies of all such material, including sales scripts or 

marketing text, graphics, videos, audio, and photographs; (b) the location where any 

such material is to be displayed online, as denoted by a unique URL; ( c) the URL of 

any hyper link contained in such material; and ( d) the range of dates the material is 

to be used; 

C. Prior to the use of any materials submitted to Corporate Defendants 

pursuant to Subsection II.B above, failing to review the materials for compliance 

with this Order. If such material does not comply with this Order, Corporate 

Defendants must inform the Distributor or Lead Generator in writing that approval 

for its use is denied, and Corporate Defendants must not pay any amounts to the 

Distributor or Lead Generator related to the creation or use of such material; 

D. Failing to monitor any sales campaign conducted by any Distributor or 

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Lead Generator on Corporate Defendants' behalf to determine whether such 

Distributor or Lead Generator is engaging in acts or practices prohibited by this 

Order. Such monitoring must, at minimum, include, on at least a weekly basis, 

obtaining and reviewing all sales scripts> obtaining and listening to audio, video, or 

other recordings of a statistically significant sample of randomly selected 

interactions between the Distributor or Lead Generator and consumers, obtaining 

and reviewing copies of any material identified in Subsection 11.B of this Order that 

Corporate Defendants have not yet obtained and verified pursuant to Subsection 

II.C of this Order, reviewing all consumer reviews and complaints Corporate 

Defendants receive regarding the Distributor or Lead Generator, obtaining and 

reviewing the Distributor or Lead Generator's sales and compliance policies and 

procedures, and conducting due diligence regarding any prior law enforcement 

actions or Telemarketing-related legal proceedings initiated against the Distributor 

or Lead Generator; 

E. Failing to promptly and completely investigate any complaints or other 

information that any Corporate Defendant receives concerning whether a 

Distributor or Lead Generator is engaging in acts or practices prohibited by this 

Order; or 

F. Failing to promptly and permanently terminate business with and 

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refuse to pay any monies owed to any Distributor or Lead Generator that has 

committed fraud or engaged in acts or practices prohibited by this Order. 

Corporate Defendants must also promptly notify any affected customer who is 

enrolled in any of Corporate Defendants' products or services of the termination, 

offer and then issue any requested refund to the customer, and obtain express, 

informed consent to continue billing the customer thereafter. 

ID. PROHIBITION AGAINST ABUSIVE TELEMARKETING PRACTICES 

IT IS FURTHER ORDERED that Corporate Defendants, Corporate 

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, are permanently restrained and 

enjoined from engaging in, or assisting and facilitating others in engaging in, any of 

the following practices: 

A. Initiating any Outbound Telephone Call, or causing others to initiate 

any Outbound Telephone Call, in which the Telemarketer fails to disclose 

truthfully, promptly, and in a Clear and Conspicuous manner to the person 

receiving a call: 

1. the identity of the Seller; 

2. that the purpose of the call is to sell goods or services; and 

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3. the nature of the goods or services; 

B. Abandoning, or causing others to abandon, any Outbound Telephone 

Call to a person by failing to connect the call to a live operator within 2 seconds of 

the person's completed greeting, unless the Seller or Telemarketer proves that the 

following 4 conditions are met: 

1. the Seller or Telemarketer employs technology that ensures 

abandonment of no more than 3 percent of all calls answered by a 

person, measured over the duration of a single calling campaign, if less 

than 3 0 days, or separately over each successive 30-day period or 

portion thereof that the campaign continues; 

2. the Seller or Telemarketer, for each Telemarketing call placed, 

allows the telephone to ring for at least 15 seconds or 4 rings before 

disconnecting an unanswered call; 

3. whenever a live operator is not available to speak with the 

person answering the call within 2 seconds after the person's 

completed greeting, the Seller promptly plays a recorded message-that 

states the Seller's name and telephone number; and 

4. the Seller retains records establishing compliance with the 

preceding 3 conditions; 

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C. Initiating any Outbound Telephone Calls, or causing others to initiate 

any Outbound Telephone Calls, that delivers a prerecorded message, other than a 

prerecorded message permitted for compliance with Subsection 111.B.3 of this 

Order, unless the Seller or Telemarketer proves that: 

1. Before making any such call to induce the purchase of any good 

or service, the Seller has obtained from the recipient of the call an 

express agreement, in writing, that: 

a. the Seller obtained only after a Clear and Conspicuous 

disclosure that the purpose of the agreement is to authorize the 

Seller to place prerecorded calls to such person; 

b. the Seller obtained without requiring, directly or indirectly, 

that the agreement be executed as a condition of purchasing any 

good or service; 

c. evidences the willingness of the recipient of the call to 

receive ca_lls that deliver prerecorded messages by or on behalf 

of the specific Seller; and 

d. includes such person's telephone number and signature; and 

2. In any such call to induce the purchase of any good or service, 

the Seller or Telemarketer: 

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a. allows the telephone to ring for at least 15 seconds or 4 

rings before disconnecting an unanswered call; and 

b. within 2 seconds after the completed greeting of the 

person called, plays a prerecorded message that promptly 

discloses the Seller's identity, that the purpose of the call is to 

sell goods or services, and the nature of the goods or services, 

followed immediately by a disclosure of one or both of the 

following: 

1. in the case of a call that could be answered in 

person by a conswner, that the person called can use an 

automated interactive voice and/or keypress-activated optout 1nechanism to asse1t a do-not-call request at any time 

during the message. The mechanism must: 

( a) automatically add the number called to the 

Seller's Entity-Specific Do Not Call List; 

(b) once invoked, immediately disconnect the 

. call; and 

( c) be available for use at any time during the 

message; and 

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11. in the case of a call that could be answered by an 

answering machine or voicemail service, that the person 

called can use a toll free-number to assert a do-not-call 

request. The number provided must connect directly to 

an automated interactive voice or keypress-activated optout mechanism that: 

(a) automatically adds the number called to the 

Seller's Entity-Specific Do Not Call List; 

(b) immediately thereafter disconnects the call; 

and 

( c) is accessible at any time throughout the 

duration of the Telemarketing campaign; 

D. Initiating any Out]?ound Telephone Calls, or causing others to initiate 

Outbound Telephone Calls, to any person's telephone number on the National Do 

Not Call Registry, unless the Seller or Telemarketer proves that: 

1. the Seller has obtained the express agreement, in w1iting, of 

such person to place calls to that person. Such written agreement 

must clearly evidence such person's authorization that calls made by or 

on behalf of the Seller may be placed to that person, and must include 

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the telephone nwnber to which the calls may be placed and the 

signature of that person; or 

2. the Seller has an Established Business Relationship with such 

person, and that person has not previously stated that he or she does 

not wish to receive Outbound Telephone Calls made by or on behalf of 

the Seller; 

E. Initiating Outbound Telephone Calls, or causing another to initiate 

Outbound Telephone Calls, to a person who has previously stated that he or she 

does not wish to receive an Outbound Telephone Call made by or on behalf of the 

Seller; 

F. Initiating Outbound Telephone Calls, or causing others to initiate 

Outbound Telephone Calls, to ~ telephone number within a given area code when 

the Seller has not, either directly or through another person, paid the required 

annual fee for access to the telephone numbers within that area code that are 

included in the National Do Not Call Registry unless the telephone call is: 

1. a solicitation to induce charitable contributions; 

2. to a business; 

3. to persons who have given the Seller their express agreement, in 

writing and signed, to receive calls from Seller; or 

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4. to persons who have an Established Business Relationship with 

Seller; or 

G. Violating the Telemarketing Sales Rule, 16 C.F .R. Part 310, attached 

as Appendix A to this Order. 

IV. CUSTOMER NOTIFICATION AND CANCELLATION 

IT IS FURTHER ORDERED that Corporate Defendants must: 

A. Within 30 days after entry of this Order, notify each customer who as 

of the date of entry of this Order is enrolled in any of Corporate Defendants' shortterm medical plans, limited/health benefit plans, or any products or services 

Corporate Defendants have sold as a supplement for, ancillary to, or 

contemporaneously with the sale of a short-term medical plan or limited/health 

benefit plan, using the notification provided as Appendix B to this Order. 

Notification must be given: 

1. By electronic mail from the same email address used to provide 

the customer with any post-purchase product or Billing Information to 

each email addres·s of the customer known to Corporate Defendants. 

Corporate Defendants must track and record customers' engagement 

with such emailed notices, including whether notice sent to each email 

address could be delivered, whether an email was opened, whether a 

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person clicked through any link in the email, and any other inf01mation 

required to submit the declaration pursuant to Subsection IV .C. Five 

days after emailing initial notice to a customer pursuant to this 

Subsection, Corporate Defendants must send to each customer whose 

initial email notice could not be delivered or remains unopened a 

second email notice with "REMINDER,, in the subject line and in a 

form otherwise identical to the initial notice; 

2. By written notice on Corporate Defendants' letterhead sent to 

the most recent address of the customer known to Corporate 

Defendants, or any other address that Corporate Defendants determine 

is current. Corporate Defendants must conduct an address trace for 

each written notice that is returned undelivered. For each customer 

whose address is updated or confirmed by the address trace, Corporate 

Defendants must send supplemental notice in a form identical to the 

original notice to the customer's updated or confirmed address; and 

3. Beginning 45 days after entry of this Order, and in no event later 

than 60 days after entry of this Order, for each customer who has not 

contacted Corporate Defendants in response to a written notice sent 

pursuant to Subsection IV .A.2 and whose email notices could not be 

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delivered or remain unopened, Corporate Defendants must attempt to 

provide the information set forth in Appendix B by calling the 

customer using the most current telephone number(s) known to 

Corporate Defendants. If any such call to a customer goes 

unanswered, Corporate Defendants must leave a message if possible. 

The introduction for such calls that are answered and any message left 

if such calls go unanswered must be scripted, and must conform to the 

requirements of Subsection IV.B; 

B. Use only scripts, FAQs, or similar guidance provided to and approved 

by staff of the FTC when interacting with customers regarding the notification 

required by Subsection IV.A; 

C. Ninety days after entry of this Order, provide to the Commission a 

signed declaration sworn under penalty of perjury containing the following 

information: 

I. The name of each customer required to be notified, and each 

customer's: (i) mailing address; (ii) email address(es); and (iii) 

telephone number(s); 

2. Regarding the email notices required pursuant to Subsection 

IV .A. l: (i) the number of unique customers who were sent an initial 

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email notice and the number of those customers who were sent a 

second email notice; (ii) the number of undeliverable emails in the 

initial round of email notice and the number of undeliverable emails in 

any second round of email notice; (iii) the number of unique customers 

for whom email notices were delivered, but all email notices sent 

remain unopened; .(iv) the number of unique customers who clicked 

through any link in an email notice; and (v) the name of each customer 

for whom all email notices were w1deliverable or have not been 

opened; 

3. Regarding the mailed notice required pursuant to Subsection 

IV.A.2, the name of each customer for whom all notices sent were 

returned undelivered; and 

4. The name of each customer Corporate Defendants called 

pursuant to Subsection IV.A.3, and for each such customer, whether 

Corporate Defendants left a message, spoke with the customer, or were 

not able to reach the customer by phone; 

D. Within 14 days after receiving any request for cancellation from a 

customer who was sent the notification specified in Subsection IV.A, cancel any 

such good or service and any future Charges for such good or service. For each 

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such cancellation request that Corporate Defendants receive within 105 days of 

entry of this Order, Corporate Defendants must also refund all Charges incurred by 

the customer on or after the date of entry of this Order for that good or service. 

Corporate Defendants must issue such refunds within 14 days after receiving the 

customer's cancellation request to the source of the initial Charge (such as credit or 

debit card) or, if that option is not available, issue a check to the customer by first 

class mail; and 

E. Within 14 days after receiving a request for cancellation from any 

consumer who was sent the notification specified in Subsection IV.A, provide the 

Commission with documentation sufficient to show the customer's name, contact 

information, each good or service in which the customer was enrolled, the total 

amount of all Charges incurred by the customer, the amount of Charges incurred by 

the customer on or after the entry of this Order, and the amount refunded to the 

customer. 

V. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of One Hundred Million Dollars 

($100,000,000} is entered in favor of the Commission against Corporate 

Defendants, jointly and severally, as monetary relief. 

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B. Corporate Defendants are ordered to pay to the Commission One 

Hundred Million Dollars ($100,000,000) as monetary relief, as follows: 

1. Corporate Defendants stipulate that Five Million Dollars ($5,000,000) 

is being held in a third.party escrow account for no purpose other than 

payment to the Commission. Corporate Defendants must pay the 

Commission Five Million Dollars ($5,000,000) within 7 days of entry of this 

Order by electronic fund transfer in accordance with instructions previously 

provided by a representative of the Commission. 

2. Corporate Defendants must pay to the Commission an additional 

Forty-Five Million Dollars ($45,000,000) by the later of June 1, 2022 and 7 

days of entry of this Order, by electronic fund transfer in accordance with 

instructions previously provided by a representative of the Commission. 

3. In addition to the payment required by Subsection V.B.2., Corporate 

Defendants must also pay to the Commission an additional Fifty Million 

Dollars ($50,000,000) by the later of June 1, 2022 and 7 days of entry of this 

Order, by electronic fund transfer in accordance with instructions previously 

provided by a representative of the Commission. Provided, however, that if 

Corporate Defendants submit to a representative of the FTC a declaration 

from Benefytt Technologies, Inc.'s Chief Executive Officer or Chief 

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Financial Officer sworn under penalty of perjury stating that Corporate 

Defendants sought in good faith but failed to obtain third-party financing 

sufficient to make the full payment required under this Subsection and 

continue operating: 

a. Corporate Defendants must pay the Commission an additional 

Fifty Million Dollars ($50,000,000) in ten (10) installments as follows: 

Beginning on the later of September 1, 2022 and 7 days after entry of 

this Order, and at each 30-day interval thereafter, including and until 

300 days after the date of the first of any such installment payments, 

Corporate Defendants shall pay the Commission Five Million Dollars 

($5,000,000) by electronic fund transfer in accordance with 

instructions previously provided by a representative of the 

Commission; 

b. If an installment due date required under Subsection V.B.3.a 

falls on a weekend or federal holiday, that payment shall be deemed 

timely if made no later than the next business day thereafter, but shall 

not affect any subsequent payment due dates. The same day 

Corporate Defendants make each electronic fund transfer required 

pursuant to Subsection V.B.3.a other than the final payment, Corporate 

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Defendants must submit to a representative of the FTC a declaration 

from Benefytt Technologies, Inc.'s Chief Executive Officer or Chief 

Financial Officer sworn under penalty of perjury stating that Corporate 

Defendants are unable to pay the balance owed under Subsection 

V .B.3 and continue operating. Corporate Defendants must continue to 

seek in good faith sufficient third-party financing to pay the balance 

owed under Subsection V.B.3. Until Corporate Defendants pay in full 

the Fifty Million Dollars ($50,000,000) required pursuant to 

Subsection V.B.3, Corporate Defendants must submit to a 

representative of the FTC condensed quarterly fmancial statements 

within 30 days after the close of the preceding financial quarter; 

c. If Corporate Defendants fail to make a required payment when 

due under Subsection V.B.3.a, or the Commission is not allowed to 

retain any such payment, the entire judgment amount ($100,000,000), 

less any amount previously paid by Corporate Defendants, shall 

immediately become due and payable by Corporate Defendants. 

Interest computed at the rate prescribed under 28 U .S.C. § 1961, as 

amended, shall immediately begin to accrue on the unpaid balance. 

Time is of the essence for all installment payments specified in 

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Subsection V.B.3.a; and 

d. Notwithstanding the foregoing, Corporate Defendants shall have 

the right to prepay at any time, and without penalty, the remaining 

balance, or any part thereof, due the Commission under this 

Subsection. Any such prepayment made prior to an installment due 

date shall be credited as if made on the next installment due date, and 

Corporate Defendants shall be relieved of making any further 

payments on the installment due date for any prepayments to the extent 

of such prepayment. Nothing herein shall be construed to relieve 

Corporate Defendants of their obligations to make timely payment for 

any installments as they become due that have not otherwise fully been 

paid in advance. 

C. Corporate 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. 

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

further 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 

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case. 

E. 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. 

F. Corporate Defendants acknowledge that their Taxpayer Identification 

Numbers (Social Security Numbers or Employer Identification Numbers), which 

Corporate Defendants must submit 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. 

G. All money received by the Commission pursuant to this Order may be 

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

consumer relief, such as 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 impracticabl~ or money remains after 

such redress is completed, the Commission may apply any remaining money for 

such related relief (including consumer information remedies) as it determines to be 

reasonably related to Defendants' practices alleged in the Complaint. Any money 

not used for relief is to be deposited to the U.S. Treasucy. Corporate Defendants 

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have no right to challenge any· actions the Commission or its representatives may 

take pursuant to this Subsection. 

VI. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Corporate Defendants are permanently 

restrained and enjoined from directly or indirectly: 

A. failing to provide sufficient customer information to enable the 

Commission to efficiently administer consumer redress. Corporate 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, Corporate Defendants must provide it, in the form prescribed by the 

Commission, within 14 days; or 

B. disclosing, using, or benefitting from customer information that any 

Defendant obtained prior to entry of this Order, provided that the Corporate 

Defendants may use such information as needed for customers who opt to remain 

enrolled in any good or service through the Corporate Defendants, to effectuate 

customers' cancellation and refund requests, or to otherwise comply with the terms 

of this Order. Such customer information includes the name, address, telephone 

number, email address, Social Security number, other identifying information, 

sensitive health information, or any data that enables access to a customer's account 

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(including a credit card, bank account, or other financial account). 

VTI. COOPERATION 

IT IS FURTHER ORDERED that Corporate Defendants must fully cooperate 

with representatives of the Commission in this case and in any investigation related 

to or associated with the transactions or the occurrences that are the subject of the 

Complaint. Corporate Defendants must provide truthful and complete information, 

evidence, and testimony, and "must cause Defendants' officers, employees, 

representatives, or agents to appear" for interviews, discovery, hearings, trials, and 

any other proceedings that a Commission representative may reasonably request 

upon 5 days written notice, or other reasonable notice, at such places and times as a 

Commission representative may designate, without the service of a subpoena. 

vm. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Corporate Defendants obtain 

acknowledgments of receipt of this Order: 

A. Each Corporate 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 20 years after entry of this Order, each Corporate Defendant must 

deliver a copy of this Order to: (1) all principals, officers, directors, and LLC 

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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. 

IX. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Corporate Defendants make timely 

submissions to the Commission: 

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

submit a compliance report, sworn under penalty of perjury: 

1. Each Corporate 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 

that Defendant; (b) identify all of that Defendant's businesses by all of their names, 

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

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

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

( 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. 

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

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

change in the following: 

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

designated point of contact; or (b) the structure of any 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. 

C. Each Corporate 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 othe1wise 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: 

Asso.ciate Director for Enforcement, Bureau of Consumer Protection, Federal Trade 

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

line must begin: FTC v. Benefytt Technologies, Inc., Matter No. 1923141. 

X. RECORDKEEPING 

IT IS FURTHER ORDERED that Corporate Defendants must create certain 

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

Specifically, Corporate Defendants 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 

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

termination; 

C. records of all consumer complaints concerning the subject matter of 

the Order 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; 

E. for express, informed consent obtained in writing, documentation that 

shows such consent, including the date and the consumer's name, telephone 

number, and Billing Information; 

F. for express, informed consent obtained orally, an unedited voice 

recording that contains such consent, retrievable by date; 

G. all call recordings, logs, and electronic or paper correspondence, with 

consumers who contact Corporate Defendants as a result of receiving the 

Notification required by Section IV of this Order; 

H. copies of all material collected pursuant to Subsections II.Band II.D of 

this Order; and 

I. a copy of all advertisements or other marketing material related to any 

good or service sold. 

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XI. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Corporate 

Defendants' compliance with this Order and any failure to transfer any assets as 

required by this Order: 

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

the Commission, each Corporate Defendant must: submit additional compliance 

reports or other requested info11nation, 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 Corporate Defendant. Corporate Defendants must 

permit representatives of the Commission to interview any employee or other 

person affiliated with any Corporate 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 Corporate Defendants or any individual or entity affiliated with Corporate 

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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 ofthe FTCAct, 15 U.S.C. §§ 49, 57b-1. 

XII. 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. 

SO ORDERED this J I t11 day of A:ve V 5fz , 2022. 

Page 39 of 41 

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SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

Isl Matthew G. Schiltz 

Matthew G. Schiltz 

Claire E.W. Stewart 

Elizabeth C. Scott 

Federal Trade Commission, Midwest Region 

230 S. Dearborn Street, Suite 3030 

Chicago, Illinois 60604 

312.960.5619 

Date: 8/8/2022 

mschiltz@ftc.gov; cstewart@ftc.gov; escott@ftc.gov 

Attorneys for Plaintiff 

Federal Trade Commission 

FOR CORPORATE DEFENDANTS: 

Mark H. Hamer 

William V. Roppolo 

Teisha C. Johnson 

Ashley Eickhof 

Baker & McKenzie LLP 

815 Connecticut Avenue, N.W. 

Washington, DC 20006-4078 · 

202.452.7077 

mark.hamer@bakermckenzie.com 

william.roppolo@bakermckenzie.com 

teisha.johnson@bakermckenzi~.com 

ashley.eickhof@bakermckenzie.com 

Date: 3/27/2022 

Attorneys for Defendants Benefytt Technologies, Inc., 

Health Plan Intermediaries Holdings, LLC, and 

HealthPocket, Inc. 

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CORPORA TE DEFENDANTS: Benefytt Technologies, Inc., 

Health Plan Intermediaries Holdings, LLCt and 

HealthPocket, Inc. 

Domenick C. DiCicco Jr., as an 

officer ofBenefytt Technologies, Inc. 

Domenick C. DiCicco Jr., as an 

officer of Health Plan Intermediaries Holdings, LLC 

Domenick C. DiCicco Jr., as an 

officer of HealthPocket, Inc. 

Page 41 of 41 

Date: 03.27.2022 

Date: 03.27.2022 

Date: 03.27.2022 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 41 of 61 PageID 360 
Federal Trade Commission 

PART 310-TELEMARKETING SALES 

RULE 

Sec. 

310.1 Scape of 1·egulations In this part. 

310.2 Definitions. 310.3 Deceptive telemarketing acts or practices. 

310.4 Abusive telemarketing acts or practices. 

310.5 Recordkeeping requirements. 

310.6 Exemptions. 310.7 Actions by states and private persons. 

310.8 Fee for access to the National Do Not 

Call Registry. 

310.9 Severability. 

AUTHORITY: 15 U.S.C. 6101-6108. 

SOURCE: 75 FR 48516, Aug. 10, 2010. unless 

otherwise noted. 

§310.2 

§ 310. l Scope of regulations in this 

part. 

This part implements the Telemarketing and Consumer Fraud and 

Abuse Prevention Act, 15 U.S.C. 6101-

6108, as amended. 

§310.2 Definmons. 

(a) Acquil'er means a business organization, financial institution, or an 

agent of a business organization or financial institution that has authority 

from an organization that operates or 

licenses a credit card system to authorize merchants to accept, transmit, or process payment by credit card 

through the credit card system for 

money, goods or services, or anything 

else of value . 

385 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 42 of 61 PageID 361 
§310.2 

(b) Attorney General means the chief 

legal officer of a state. 

(c) Billing information means any data 

that enables any person to access a customer's or donor's account, such as 

a credit card, checking, savings, sha1·e or similar account, utility bill, mortgage loan account, or debit card. 

(d) Caller identification sernice means a service that allows a telephone subscriber to have the telephone number, 

and, where available, name of the calling party transmitted contemporaneously with t11e telephone call, and 

displayed on a device in or connected 

to the subscriber's telephone. 

(el Cardholder means a person to 

whom a credit card is issued or who is 

authorized to use a credit card on behalf of or in addition to the person to 

whom the credit card is issued. 

(f) Cash-to-cash money transfer means the electronic (as defined in section 

106(2) of the Electronic Signatures in 

Global and National Commerce Act (15 

U.S.C. 7006(2)) transfer of the value of 

cash received from one person to an­ other person in a different location 

that is sent by a money transfer provider and received in the form of cash. 

For purposes of this definition, money 

transfer provider means any person or financial institution that provides 

cash-to-cash money transfers for a person in the normal course of its busi­ ness, whether or not the person holds an account with such person or financial institution. The term cash-to-cash 

money transfer includes a remittance 

transfer, as defined in section 919(g)(2l 

of the Electronic Fund Transfer Act 

("EFTA"), 15 U.S.C. 1693a, that is a cash-to-cash transaction; however it 

does not include any transaction that 

is: 

(1) An electronic fund transfer as defined in section 903 of the EFTA; 

(2) Covered by Regulation E, 12 CFR 

1005.20, pertaining to gift cards; or (3) Subject to the Truth in Lending 

Act, 15 U .S.C. 1601 et seq. 

(g) Cash reload mechanism is a device, 

authorization code, personal identification number, or other security measure that makes it possible for a person to 

convert cash into an electronic (as defined in section 106(2) of the Electronic Signatures in Global and National 

Commerce Act (15 U.S.C. 7006(2)) form 

16 CFR Ch. I (1-1-21 Edition) 

that can be used to add funds to a general-use prepaid card, as defined in 

Regulation E, 12 CFR 1005.2, or an account with a payment intermediary. 

Fol' purposes of this definition, a cash 

reload mechanism is not itself a general-use prepaid debit card or a swipe 

reload process or similar method in 

which funds are added directly onto a 

person's own general-use prepaid card 

or account with a payment intermediary. 

(h) Charitable contribution means any 

donation or gift of money or any other 

thing of value. 

(i) Commission means the Federal 

Trade Commission. 

(j) Credit means the right granted by a creditor to a debtor to defer payment 

of debt or to incur debt and defer its 

payment. 

(k) Credit card means any card, plate, 

coupon book, or other credit device ex­ isting for the purpose of obtaining 

money, property, labor, or services on credit. 

(1) Credit card sales draft means any 

record or evidence of a credit card 

transaction. 

(m ) Credit card system means any 

method or procedure used to process credit card transactions involving credit cards issued or licensed by the operator of that system. 

(n ) Customer means any person who is 

or may be required to pay for goods or services offered through telemarketing. 

(o) Debt relief service means any program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt be­ tween a person and one or more unse­ cured creditors or debt collectors, including, but not limited to, a reduction 

in the balance, interest rate, or fees 

owed by a person to an unsecured creditor or debt collector. 

(p) Donor means any person solicited 

to make a charitable contribution. 

(q) Established business relationship 

means a relationship between a seller 

and a consumer based on: 

(1) the consumer's purchase, rental, or lease of the seller's goods or services or a financial transaction between the 

386 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 43 of 61 PageID 362 
Federal Trade Commission 

consumer and seller, within the eight­ een (18) months immediately preceding 

the date of a telemarketing call; or (2) the consumer's inquiry or application regarding a product or service offered by the seller, within the three (3) 

months immediately preceding the 

date of a telemarketing call. 

(r) Free-to-pay conversion means, in an offer or agreement to sell or provide 

any goods or services, a provision 

under which a customer receives a 

product or service for free for an initial 

period and will incur an obligation to 

pay for the product or service if he or she does not take affirmative action to 

cancel before the end of that period. 

(s) Investment opportunity means anything, tangible or intangible, that is offered, offered for sale, sold, or traded 

based wholly or in part on representations, either express or implied, about 

past, present, or future income, profit, or appreciation. 

(t) Material means likely to affect a person's choice of, or conduct regarding, goods or services or a charitable 

contribution. 

(u) Merchant means a person who is 

authorized under a written contract 

with an acquirer to honor or accept 

credit cards, or to transmit or process 

for payment credit card payments, for 

the purchase of goods or services or a charitable contribution. 

(v) Merchant agreement means a written contract between a merchant and an acquirer to honor or accept credit 

cards, or to transmit or process for 

payment credit card payments, for the 

purchase of goods or services or a charitable contribution. 

(w) Negative option feature means, in an offer or agreement to sell or provide 

any goods or services, · a provision 

under which the customer's silence or failure to take an affirmative action to 

reject goods or services or to cancel the 

agreement is interpreted by the seller as acceptance of the offer. 

(x) Outbound telephone call means a t elephone call initiated by a tele­ marketer to induce the. purchase of 

goods or services or to solicit a charitable contribution. 

(y) Person means any individual, group, unincorporated association, limited or general partnership, corporation, or other business entity. 

§310.2 

(z) Preacquired account information 

means any information that enables a seller or telemarketer to cause a charge to be placed against a cus­ tomer's or donor's account without obtaining the account number directly 

from the customer or donor during the 

telemarketing transaction pursuant to 

which the account will be charged. 

(aa) Prize means anything offered, or purportedly offered, and given, or purportedly given, to a person by chance. 

For purposes of this definition, chance 

exists if a person is guaranteed to receive an item and, at the time of the 

offer or purported offer, the telemarketer does not identify the specific 

item that the person will receive. (bb) Prize promotion means: 

(1) A sweepstakes or other game of 

chance;or 

(2) An oral or written express or im­ plied representation that a person has 

won, has been selected to receive, or 

may be eligible to receive a prize or purported prize. 

(cc) Remotely created payment order 

means any payment instruction or order drawn on a person's account that 

is created by the payee or the payee's agent and deposited into or cleared 

through the check clearing system. 

The term includes, without limitation, a " remotely created check," as defined 

in Regulation CC, Availability of 

Funds and Collection of Checks, 12 CFR 

229.2(fff), but does not include a payment order cleared through an Automated Clearinghouse (ACH) Network or subject to the Truth in Lending Act, 15 

U.S.C. 1601 et seq., and Regulation Z, 12 

CFR part 1026. 

(dd) Seller means any person who, in 

connection with a telemarketing transaction, provides, offers to provide, or arranges for others to provide goods or services to the customer in exchange 

for consideration. 

(ee) State means any state of the United States, the District of Columbia, Puerto Rico, the Northern Mariana 

Islands, and any territory or possession 

of the United States. 

(ff) Telemarketer means any person 

who, in connection with telemarketing, initiates or receives telephone calls to or from a customer or donor. 

(gg) Telemarketing means a plan, program, or campaign which is conducted 

387 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 44 of 61 PageID 363 
§310.3 

to induce the purchase of goods or serv­ ices or a charitable contribution, by 

use of one or more telephones and 

which involves more than one interstate telephone call. The term does not 

include the solicitation of sales 

through the mailing of a catalog 

which: contains a written description or illustration of the goods or services 

offered for sale; includes the business 

address of the seller; includes multiple 

pages of written material or illustrations; and has been issued not less frequently than once a year, when the 

person making the solicitation does 

not solicit customers by telephone but 

only receives calls initiated by cus­ tomers in response to the catalog and 

during those calls takes orders only 

without further solicitation. For purposes of the previous sentence, the 

term "further solicitation" does not 

include providing the customer with 

information about, or attempting to 

sell, any other item included in the same catalog which prompted the customer's call or in a substantially similar catalog. 

(hh) Upselling means soliciting the 

purchase of goods or services following an initial transaction during a single 

telephone call. The upsell is a separate 

telemarketing transaction, not a con­ tinuation of the initial transaction. An 

"external upsell" is a solicitation 

made by or on behalf of a seller different from the seller in the initial 

transaction, regardless of whether the 

initial transaction and the subsequent 

solicitation are made by the same telemarketer. An "internal upsell" is a so­ licitation made by or on behalf of the same seller as in the initial transaction, regardless of whether the initial transaction and subsequent solicitation are made by the same telemarketer. 

[75 FR 48516, Aug. 10, 2010, as amended at BO 

FR 77557, Dec. 14, 2015] 

§ 310.3 Deceptive telemarketing acts or practices. 

(a) Prohibited deceptive telemarketing 

acts or practices. It is a deceptive tele­ marketing act or practice and a violation of this Rule for any seller or telemarketer to engage in the following 

conduct: 

16 CFR Ch. I (1-1-21 Edition) 

( 1) Before a customer consents to 

pay 659 for goods or services offered, 

failing to disclose truthfully. in a clear 

and conspicuous manner, the following 

material information: 

(i ) The total costs to purchase, receive, or use, and the quantity of, any 

goods or services that are the subject 

of the sales offer; 6 60 

(ill All material restrictions, limitations, or conditions to purchase, re­ ceive, or use the goods or services that 

are the subject of the sales offer; 

(iii) If the seller has a policy of not 

making refunds, cancellations, ex­ changes, or repurchases, a statement 

informing the customer that this is the 

selle1·'s policy; or, if the seller or telema1·keter makes a representation 

about a refund, cancellation, exchange, 

or repurchase policy, a statement of all 

material terms and conditions of such 

policy; 

(iv) In any prize promotion, the odds 

of being able to receive the prize, and, 

if the odds are not calculable in advance, the factors used in calculating 

the odds; that no purchase or payment 

is required to win a prize or to participate in a prize promotion and that any 

purchase or payment will not increase 

the person's chances of winning; and 

the no-purchase/no-payment met hod of 

participating in the prize promotion 

with either instructions on how to participate or an address or local or tollfree telephone number to which customers may write or call for information on how to participate; 

658 When a seller or telemarketer uses. or 

direc ts a customer to use. a courier to transport payment, the seller or telemarketer 

must make the disclosures required by 

§310.3(al(l) before sending a. courier to pick 

up payment or authorization for payment, or 

direc ting a customer to ha.ve a courier pick 

up payment or authorization for payment. In 

the ca,se of debt relief services. the selle1• or 

telemarketer must make the disclosures re­ quired by §310.3(a)(l) before the consumer enrolls in an offered program. 660 For offers of consumer credit products 

subject to the Truth in Lending Act, 15 

u.s.c. 1601 et seq., and Regulation Z, 12 CFR 

226. compliance with the disclosui-e requir e­ ments under the Truth in Lending Act and 

Regulation Z shall constitute compliance 

with §310.3(a)(l)(l) of this Rule. 

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(v) All material costs or conditions 

to receive or redeem a prize that is the 

subject of the prize promotion; 

(vi) In the sale of any goods or serv­ ices represented to protect, insure, or otherwise limit a customer's liability 

in the event of unauthorized use of the 

customer's credit card, the limits on a cardholder's liability for unauthorized use of a credit card pursuant to 15 

u.s.c. 1643; 

(vii) If the offer includes a negative 

option feature, all material terms and 

conditions of the negative option feature, including, but not limited to, the 

fact that the customer's account will 

be charged unless the customer takes 

an affirmative action to avoid the 

charge(s), the date(s) the charge(s) will 

be submitted for payment, and the specific steps the customer must take to 

avoid the charge(s); and · (viii) In the sale of any debt relief 

service: 

(A) the amount of time necessary to 

achieve the represented results, and to 

the extent that the service may include a settlement offer to any of the customer's creditors or debt collectors, 

the time by which the debt relief service provider will make a bona fide settlement offer to each of them; 

(B) to the extent that the service 

may include a settlement offer to any 

of the customer's creditors or debt collectors, the amount of money or the 

percentage of each outstanding debt 

that the customer must accumulate before the debt relief service provider 

will make a bona fide settlement offer 

to each of them; 

(C) to the extent that any aspect of 

the debt relief service relies upon or re­ sults in the customer's failure to make 

timely payments to creditors or debt 

collectors, that the use of the debt re­ lief service will likely adversely affect 

the customer's creditworthiness, may 

result in the customer being subject to 

collections or sued by creditors or debt 

collectors, and may increase the 

amount of money the customer owes due to the accrual of fees and interest; 

and 

(D) to the extent that the debt relief 

service requests or requires the cus­ tomer to place funds in an account at an insured financial institution, that 

the customer owns the funds held in 

§310.3 

the account, the customer may withdraw from the debt relief service at any 

time without penalty, and, if the customer withdraws, the customer must 

receive all funds in the account, other 

than funds earned by the debt relief 

service in compliance with 

§ 310.4(a)(5)(i)(A) through (Cl. 

(2) Misrepresenting, directly or by 

implication, in the sale of goods or 

services any of the following material 

information: 

(i) The total costs to purchase, receive, or use, and the quantity of, any 

goods or services that are the subject 

of a sales offer; 

(ii) Any material restriction, limitation, or condition to purchase, receive, or use goods or services that are the 

subject of a sales offer; 

(iii) Any material aspect of the performance, efficacy, nature, or central 

characteristics of goods or services 

that are the subject of a sales offer; 

(iv) Any material aspect of the nature or terms of the seller's refund, 

cancellation, exchange, or repurchase 

policies; 

(v) Any material aspect of a prize 

promotion including, but not limited 

to, the odds of being able to receive a 

prize, the nature or value of a prize, or that a purchase or payment is required 

to win a prize or to participate in a prize promotion; 

(vi) Any material aspect of an investment opportunity including, but not 

limited to, risk, liquidity, ea1,iings potential, or profitability; 

(vii) A seller's or telemarketer's affiliation with, or endorsement or sponsorship by, any person or government 

entity; 

(viii) That any customer needs offered goods or services to provide protections a customer already has pursuant to 15 U.S.C. 1643; 

(ix) Any material aspect of a negative option feature including, but not 

limited to, the fact that the customer's 

account will be charged unless the customer takes an affirmative action to 

avoid the charge(s), the date(s) the 

charge(s) will be submitted for payment, and the specific steps the customer must take to avoid the 

charge(s); or 

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§310.3 

(x) Any material aspect of any debt 

relief service, including, but not limited to, the amount of money or the 

percentage of the debt amount that a customer may save by using such serv­ ice; the amount of time necessary to achieve the represented results; the 

amount of money or the percentage of 

each outstanding debt that the cus­ tomer must accumulate before the provider of the debt relief service will initiate attempts with the customer's 

creditors or debt collectors or make a 

bona fide offer to negotiate, settle, or modify the terms of the customer's 

debt; the effect of the service on a cus­ tomer's creditworthiness; the effect of 

the service on collection efforts of the customer's creditors or debt collectors; 

the percentage or number of customers who attain the represented results; and 

whether a debt relief service is offered or provided by a non-profit entity. 

(3) Causing billing information to be 

submitted for payment, or collecting or attempting to collect payment for 

goods or services or a charitable con­ tribution, directly or indirectly, without the customer's or donor's express 

verifiable authorization, except when 

the method of payment used is a credit 

card subject to protections of the 

Truth in Lending Act and Regulation 

Z,661 or a debit card subj ect t o the pro­ t ections of the Electronic Fund Trans­ fer Act and Regulation E.662 Such au­ thorization shall be deemed verifiable 

if any of the following means is em­ ployed: 

(i) Express written authorization by 

the customer or donor, which includes 

the customer's or donor's signature;663 

(ii) Express oral authorization which 

is audio-recorded and made available 

upon request to the customer or donor, 

and the customer's or donor's bank or other billing entity, and which evi­ dences clearly both the customer's or 

661 Truth in Lending Act, 15 U .s.c. 1601 et 

seq. , and Regulation z, 12 CFR part 226. 662 Electronic Fund Transfer Act, 15 U.S.C. 

1693 et seq. , and Regulation E, 12 CFR pa.rt 

205. 683 For purposes of this Rule, the term 

"signature·• shall Include an electronic or 

digital form of signature, to the eJ<tent that such form of signature is recognized as a valld signature under applicable federal law 

or state contract law. 

16 CFR Ch. I (1-1-21 Edition) 

donor's authorization of payment for the goods or services or charitable con­ tribution that are the subject of the 

telemarketing transaction and the customer's or donor's receipt of all of the 

following information: 

(A) An accurate description, clearly 

and conspicuously stated, of the goods or services or charitable contribution 

for which payment authorization is sought; 

(B) The number of debits, charges, or payments (if more than one); 

(C) The date(s) the debit(s), charge(s), or payment(s) will be submitted for 

payment; 

(D) The amount(s) of the debit(s), 

charge(s), or payment(sJ; 

(El The customer·s or donor's name; 

(F ) The customer·s or donor's billing 

information, identified with sufficient 

specificity such that t he customer or donor understands what account will 

be used to collect payment for the 

goods or services or charitable con­ tribution that are the subject of the 

telemarketing transaction: 

(G) A telephone number for cust omer or donor inquiry that is answered dur­ ing normal business hours; and 

(H) The date of the customer's or dono1•'s oral authorization; or 

(iii) Written confirmation of the 

transaction, identified in a clear and conspicuous manner as such on the 

outside of the envelope, sent to the 

customer or donor via first class mail 

prior to the submission for payment of 

the customer's or donor's billing information, and that includes all of the information contained in §§310.3(a)(3)(ii)(A)-(G) and a clear and 

conspicuous statement of the proce­ dures by which the customer or donor can obtain a refund from the seller or telemarketer or charitable organization in the event the confirmation is 

inaccurate; provided, however, that 

this means of authorization shall not 

be deemed verifiable in instances in 

which goods or services are offered in a transaction involving a free-to-pay 

conversion and preacquired account information. 

(4) Making a false or misleading 

statement to induce any person to pay 

for goods or services or to induce a charitable contribution. 

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(b) Assisting and facilitating. It is a deceptive telemarketing act or practice 

and a violation of this Rule for a person to provide substantial assistance or support to any seller or telemarketer 

when that person knows or consciously 

avoids knowing that the seller or telemarketer is engaged in any act or practice that violates §§310.3(a), (c) or (d), 

or §310.4 of this Rule. 

(c) Credit card laundering. Except as expressly permitted by the applicable 

credit card system, it is a deceptive 

telemarketing act or practice and a 

violation of this Rule for: 

(1) A merchant to present to or deposit into, or cause another to present 

to or deposit into, the credit card system for payment, a credit card sales 

draft generated by a telemarketing 

transaction that is not the result of a telemarketing credit card transaction 

between the cardholder and the mer­ chant; 

(2) Any person to employ, solicit, or otherwise cause a merchant, or an em­ ployee, representative, or agent of the 

merchant, to present to or deposit into 

the credit card system for payment, a credit card sales draft generated by a telemarketing transaction that is not 

the result of a telemarketing credit 

card transaction between the cardholder and the merchant; or (3) Any person to obtain access to the 

credit card system through the use of a business relationship or an affiliation 

with a merchant, when such access is 

not authorized by the merchant agreement or the applicable credit card system. 

(d) Prohibited deceptive acts or practices in the solicitation of charitable contributions. It is a fraudulent charitable 

solicitation, a deceptive telemarketing 

act or practice, and a violation of this 

Rule for any telemarketer soliciting 

charitable contributions to misrepresent, directly or by implication, any of 

the following material information: 

(1) The nature, purpose, or mission of 

any entity on behalf of which a chari­ table contribution is being requested; 

(2) That any charitable contribution 

is tax deductible in whole or in part; 

(3) The purpose for which any charitable contribution will be used; 

(4) The percentage or amount of any 

charitable contribution that will go to 

§310.4 

a charitable organization or to any 

particular charitable program; 

(5) Any material aspect of a prize 

promotion including, but not limited 

to: the odds of being able to receive a 

prize; the nature or value of a prize; or that a charitable contribution is re­ quired to win a prize or to participate 

in a prize promotion; or 

(6) A charitable organization's or telemarketer's affiliation with, or en­ dorsement or sponsorship by, any per­ son or government entity. 

[75 FR 48516, Aug. 10, 2010, as amended at 80 

FR 77558. Dec. 14, 2015] 

§310.4 Abusive telemarketing acts or practices. 

(a) Abusive conduct generally. It is an 

abusive telemarketing act or practice 

and a violation of this Rule for any 

seller or telemarketer to engage in the 

following conduct: 

(l} Threats, intimidation, or the use of profane or obscene language; 

(2} Requesting or receiving payment 

of any fee or consideration for goods or services represented to remove derogatory information from, or improve, a person's credit history, credit record, or credit rating until: 

(i) The time frame in which the seller 

has represented all of the goods or 

services will be provided to that person 

has expired; and 

(ii) The seller has provided the person 

with documentation in the form of a consumer report from a consumer re­ porting agency demonstrating that the 

promised results have been achieved, 

such report having been issued more than six months after the 1·esults were achieved. Nothing in this Rule should 

be construed to affect the requirement 

in the Fair Credit Reporting Act, 15 

U.S.C. 1681, that a consumer report 

may only be obtained for a specified 

permissible purpose; 

(3) Requesting or receiving payment 

of any fee or consideration from a per­ son for goods or services represented to recover or otherwise assist in the re­ turn of money or any other item of 

value paid for by, or promised to , that 

person in a previous transaction, until seven (7) business days after such 

money or other item is delivered to 

that person. This provision shall not 

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§310.4 

apply to goods or services provided to a person by a licensed attorney; 

(4) Requesting or receiving payment 

of any fee or consideration in advance 

of obtaining a loan or other extension 

of credit when the seller or telemarketer has guaranteed or represented a high likelihood of success in 

obtaining or arranging a loan or other 

extension of credit for a person; 

(5)(0 Requesting or receiving payment of any fee or consideration for 

any debt relief service until and unless: 

(A) The seller or telema rke ter has re­ negotiated, settled, reduced, or otherwise altered the terms of at least one 

debt pursuant to a settlement agreement, debt management plan, or other 

such valid contractual agreement exe­ cuted by the customer; 

(B) The customer has made at least one payment pursuant to that settlement agreement, debt management 

plan, or other valid contractual agreement between the customer and the 

creditor or debt collector; and 

(C) To the extent that debts enrolled 

in a service are renegotiated, settled, 

reduced, or otherwise alt ered individually, the fee or considera'tion either: 

{J) Bears the same proportional relationship to the total fee for renegotiating, settling, reducing, or altering 

the terms of the entire debt balance as the individual debt amount bears to 

the entire debt amount. The individual 

debt amount and the entire debt 

amount are those owed at the time the 

debt was enrolled in the service; or 

(2) Is a percentage of the amount 

saved as a result of the renegotiation, settlement, reduction, or alteration. 

The percentage charged cannot change 

from one individual debt to another. 

The amount saved is the difference between the amount owed at the time the 

debt was enrolled in the service and the 

amount actually paid to satisfy the 

debt. 

(ii) Nothing in §310.4(a)(5)(i) prohibits requesting or requiring the customer 

to place funds in an account to be used 

for the debt relief provider's fees and 

for payments to creditors or debt collectors in connection with the renegotiation, settlement, reduction, or other 

alteration of the terms of payment or other terms of a debt, provided that: 

16 CFR Ch. I (1-1-21 Edition) 

(A) The funds are held in an account 

at an insured financial institution; 

(B) The customer owns the funds held 

in the account and is paid accrued interest on the account, if any; 

{C) The entity administering the ac­ count is not owned or controlled by, or in any way affiliated with, the debt re­ lief service; 

(D) The entity administering the ac­ count does not give or accept any 

money or other compensation in ex­ change for referrals of business involving the debt relief service; and 

(E) The customer may withdraw from 

the debt relief service at any time 

without penalty, and must receive all 

funds in the account, other than funds 

earned by the debt relief service in compliance with §310.4(a )(5)(i)(A) 

through (C), within seven (7) business days of the customer's request. 

(6) Disclosing or receiving, for consideration, unencrypted consumer ac­ count numbers for use in tele­ marketing; provided, however, that 

this paragraph shall not apply to the 

disclosure or receipt of a customer's or donor's billing information to process a payment for goods or services or a cha1•itable contribution pursuant to a transaction; 

(7) Causing billing information to be 

submitted for payment, directly or indirectly, without the express informed 

consent of the customer or donor. In any telemarketing transaction, the 

seller or t elemarket er must obt ain the 

express informed consent of the cus­ tomer or donor to be charged for the 

goods or services or charitable contribution and to be charged using the 

identified account. In any telemarketing transaction involving 

preacquired account information, the 

requirements in paragraphs (a )(7)(i) 

through (ii) of this section must be met 

to evidence express informed consent. 

(i) In any telemarketing transaction 

involving preacquired account information and a free-ta-pay conversion fea­ ture, the seller or t elemarketer must: 

(A) Obtain from the customer, at a minimum, the last four (4) digits of t he 

account number to be charged; 

(B) Obtain from the customer his or her express agreement to be charged 

for the goods or services and to be 

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charged using the account number pursuant to paragraph (a)(7)(i)(A) of this 

section; and, 

(C) Make and maintain an audio re­ cording of the entire telemarketing 

transaction. 

(ii) In any other telemarketing transaction involving preacquired account 

information not described in paragraph 

(a)(7)(i) of this section, the seller or 

telemarketer must: 

(A) At a minimum, identify the account to be charged with sufficient 

specificity for t he customer or donor to 

understand what account will be 

charged; and 

(B) Obtain from the customer or donor his or her express agreement to 

be charged for the goods or services 

and to be charged using· the account 

number identified pursuant to para­ graph (a)(7)(ii)(A) of this section; 

(8) Failing to transmit or cause to be 

transmitted the telephone number, 

and, when made available by the telemarketer's carrier, the name of the 

telemarketer, to any caller identification service in use by a recipient of a telemarketing call; provided that it 

shall not be a violation to substitute 

(for the name and phone number used 

in, or billed for, making the call) the name of the selle1· or charitable organization on behalf of which a telemarketing call is placed, and the seller's or charitable organization's cus­ tomer or donor service telephone num­ ber, which is answered during regular 

business hours; 

(9) Creating or causing to be created, 

directly or indirectly, a remotely cre­ ated payment order as payment for 

goods or services offered or sold 

through telemarketing or as a charitable contribution solicited or sought 

through telemarketing; or 

(10) Accepting from a customer or donor, directly or indirectly, a cash-tocash money transfer or cash reload 

mechanism as payment for goods or services offered or sold through telemarketing or as a charitEJ,ble contribution solicited or sought through telemarketing. 

(b) Pattern of calls. (1) It is an abusive 

telemarketing act or practice and a violation of this Rule for a telemarketer to engage in, or for a seller 

§310.4 

to cause a telemarketer to engage in, 

the following conduct: 

(i) Causing any telephone to ring, or engaging any person in telephone con­ versation, repeatedly or continuously 

with intent to annoy, abuse, or harass 

any person at the called number; 

(ii) Denying or interfering in any 

way, directly or indirectly, with a per­ son's right to be placed on any registry 

of names and/or telephone numbers of 

persons who do not wish to receive outbound telephone calls established to 

comply with paragraph (b)(l)(iii)(AJ of 

this section, including, but not limited 

to, harassing any person who makes 

such a request; hanging up on that person; failing to honor the request; re­ quiring the person to listen to a sales 

pitch before accepting the request; as­ sessing a charge or fee for honoring the 

request; requiring a person to call a different number to submit the re­ quest; and requiring the person to identify the seller making the call or on whose behalf the call is made; 

(iii) Initiating any outbound telephone call to a person when: 

(Al That person previously has stated 

that he or she does not wish to receive an outbound telephone call made by or on behalf of the seller whose goods or services are being offered or made on behalf of the charitable organization 

for which a charitable contribution is 

being solicited; or (B) That person's telephone number 

is on the "do-not-call" registry, maintained by the Commission, of pe1·sons 

who do not wish to receive outbound 

telephone calls to induce the purchase 

of goods or services unless the seller or 

telemarketer: 

(1) Can demonstrate t hat the seller 

has obtained the express agreement, in 

writing, of such person to place calls to 

that person. Such written agreement shall clearly evidence such person's au­ thorization that calls made by or on behalf of a specific party may be placed 

to that person, and shall include the 

telephone number to which the calls 

may be placed and the signature 604 of 

that person; or 

664 For purposes of this Rule. the term 

"signature" shall include an electronic or digital form of signature, to the extent that 

such form of signature is recognized as a Continued 

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§310.4 

(2) Can demonstrate that the seller 

has an established business relationship with sucl1 person, and that person 

has not stated that he or she does not 

wish to receive outbound telephone 

calls under paragraph (b)(l)(iii)(A) of 

this section; or (iv) Abandoning any outbound telephone call. An outbound telephone call 

is "abandoned" under this section if a person answers it and the telemarketer 

does not connect the call to a sales representative within two (2) seconds of 

the person's completed greeting. 

(v) Initiating any outbound telephone 

call that delivers a prerecorded mes­ sage, other than a prerecorded message 

permitted for compliance with the call 

abandonment safe harbor in 

§ 310.4{b)(4)(iii), unless: 

(A) In any such call to induce the 

purchase of any good or service, the 

seller has obtained from the recipient 

of the call an express agreement, in 

writing, that: 

(i) The seller obtained only after a clear and conspicuous disclosure that 

the purpose of the agreement is to au­ thorize the seller to place prerecorded 

calls to such person; 

(ii) The seller obtained without re­ quiring, directly or indirectly, that the 

agreement be executed as a condition 

of purchasing any good or service: 

(iii) Evidences the willingness of the 

recipient of the call to receive calls 

that deliver prerecorded messages by or on behalf of a specific seller; and 

(iv) Includes such person's t elephone 

number and signature;665 and 

(B) In any such call to induce the 

purchase of any good or service, or to 

induce a charitable contribution from a member of, or previous donor to, a non­ profit charitable organization on whose 

behalf the call is made, the seller or 

telemarketer: 

(i) Allows the telephone to ring for at 

least fifteen (15) seconds or four (4) 

rings before disconnecting an unanswered call; and 

valid signature under applicable federal law 

or state contract law. 665 For purposes of this J;l,ule, the term 

"signature" shall include an electronic or digital form of signature, to the extent that 

su ch form of signature ls r ecognized as a valid signature under a p plicable federal law 

or state contract law. 

16 CFR Ch. I (1-1-21 Edition) 

(ii) Within two (2) seconds after the 

completed greeting of the person 

called, plays a prerecorded message 

that promptly provides the disclosures 

required by § 310.4( d) or (e), followed 

immediately by a disclosure of one or both of the following: 

(A) In the case of a call that could be 

answered in person by a consumer, that 

the person called can use an automated 

interactive voice and/or keypress-activated opt-out mechanism to assert a Do Not Call request pursuant to 

§310.4(b)(l)(iii)(A) at any time during 

the message. The mechanism must : (1) Automatically add the number cal1ed to the seller's entity-specific Do 

Not Call list; 

(2) Once invoked, immediately dis­ connect the call; and 

(3) Be available for use at any time 

during the message; and 

(B) In the case of a call that could be 

answered by an answering machine or voicemail service, that the person 

called can use a toll-free telephone 

number to assert a Do Not Call request 

pursuant to §310.4(b)(l)(iii)(A). The 

number provided must connect directly 

to an automated interactive voice or keypress-activated opt-out mechanism 

that: 

(1) Automatically adds the number 

called to the seller's entity-specific Do Not Call list; 

(2) Immedia tely thereafter disconnects the call; and 

(3) Is accessible at any time through­ out the duration of the telemarketing campaign; and 

(iii) Complies with all other require­ m ents of this part and other applicable 

federal and state laws. 

(C) Any call that complies with all 

applicable requirements of this para­ graph (v) shall not be deemed to violate 

§310.4(b)(l)(iv} of this part. 

(D) This paragraph (v) shall not apply 

to any outbound telephone call that delivers a prerecorded healthcare message made by, or on behalf of, a covered 

entity or its business associate, as those terms are defined in the HIP AA 

Privacy Rule, 45 CFR 160.103. 

(2) It is an abusive telemarket ing act or practice and a violation of this Rule 

for an y person to sell, rent, lease, pur­ chase, or use any list established t o comply with §310.4(b)(l)(iii)(A), or 

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maintained by the Commission pursuant to §310.4(b)(l)(iii)(B), for any purpose except compliance with the provisions of this Rule or otherwise to prevent telephone calls to telephone num­ bers on such lists. 

(3) A seller or telemarketer will not 

be liable for violating § 310.4(b )(1 )(ii) 

and (iii) if it can demonstrate that, as part of the selle1•'s or telemarketer's 

routine business practice: 

(i) It has established and implemented written procedures to comply 

with §310.4(b)(l)(ii) and (iii); 

(ii) It has trained its personnel, and 

any entity assisting in its compliance, 

in the procedures established pursuant 

to § 310.4(b)(3)(i); 

(iii) The seller, or a telemarketer or another person acting on behalf of the 

seller or charitable organization, has 

maintained and recorded a list of telephone numbers the seller or charitable 

organization may not contact, in com­ pliance with §310.4(b)(l)(iii)(A); 

(iv) The seller or a telemarketer uses a process to prevent telemarketing to 

any telephone number on any list es­ tablished pursuant to § 310.4(b)(3)(iii) or 310.4(b)(l)(iii)(B), employing a version 

of the "do-not-call" registry obtained 

from the Commission no more than 

thirty-one (31) days prior to the date 

any call is made, and maintains 

records documenting this process; 

(v) The seller or a telemarketer or 

another person acting on behalf of the 

seller or charitable organization, mon­ itors and enforces compliance with the 

procedures established pursuant t o 

§310.4(b)(3)(i); and 

(vi) Any subsequent call otherwise 

violating paragraph (b)(l)(ii) or (iii) of 

this section is the result of error and 

not of failure to obtain any information necessary to comply with a re­ quest pursuant to paragraph 

(b)(l)(iii){A) of this section not to receive further calls by or on behalf of a seller or charitable organization. 

(4) A seller or telemarketer will not 

be liable for violating§ 310.4(b)(I)(iv) if: 

(i) The seller or telemarketer em­ ploys technology that ensures abandonment of no more than three (3) per­ cent of all calls answered by a person, 

measured over the duration of a single 

calling campaign, if less than 30 days, or separately over each successive 30-

§310.4 

day period or portion thereof that the 

campaign continues. 

(ii) The seller or telemarketer, for 

each telemarketing call placed, allows 

the telephone to ring for at least fifteen (15) seconds or four (4) rings before 

disconnecting an unanswered call; 

(iii) Whenever a sales representative 

is not available to speak with the per­ son answering t he call within two (2) 

seconds after t he person ·s completed 

greeting, the seller or telemarketer 

promptly plays a recorded message 

that states the name and telephone 

number of the seller on whose behalf 

the call was placed666; and 

(iv) The seller or telemarketer, in ac­ cordance with §310.S(b)-(d), retains 

records establishing compliance with 

§ 310.4(b)( 4)(il-(iii ). 

(c) Calling time restrictions. Without 

the prior consent of a person, it is an abusive telemarketing act or practice 

and a violation of this Rule for a tele­ markete1• to engage in outbound tele­ phone calls to a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. local time at the called 

person's location. 

(d) Required oral disclosures in the sale 

of goods or services. It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer in an outbound telephone call or internal or external upsell to induce the purchase of goods or services to fail to disclose truthfully, promptly, and in a clear and conspicuous manner to the 

person receiving the call, the following 

information: 

(1 ) The identity of the seller: (2) That the purpose of the call is to 

sell goods or services; 

(3) The nature of the goods or services; and 

(4) That no purchase or payment is 

necessary to be able to win a prize or participate in a prize promotion if a prize promotion is offered and that any 

purchase or payment will not increase 

the person's chances of winning. This disclosure must be made before or in 

conjunction with the description of the 

prize to the person called. If requested 

668 This provision does not a ffect any selle r's or telemarketer·s obligation t o comply 

with relevant state and federal laws, including but not limited to the TCPA, 47 U.S.C. 

227. and 47 CFR part 64.1200. 

395 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 52 of 61 PageID 371 
§310.5 

by that person, the telemarketer must 

disclose the no-purchase/no-payment 

entry method for the prize promotion; 

provided, however, that, in any internal upsell for the sale of goods or serv­ ices, the seller or telemarketer must 

provide the disclosures listed in this 

section only to the extent that the information in the upsell differs from the 

disclosures provided in the initial telemarketing transaction. 

(e) Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer, in an outbound telephone call to induce a charitable contribution, to fail to disclose truthfully, promptly, and in a clear and conspicuous manner to the 

person receiving the call, the following 

information: 

(1) The identity of the charitable or­ ganization on behalf of which the re­ quest is being made; and 

(2) That the purpose of the call is to 

solicit a charitable contribution. 

[75 FR 48516, Aug. 10, 2010, as amended at 76 

FR 58716, Sept. 22, 2011; 80 FR 77559, Dec. 14, 

20151 

§ 310,5 Recordkeeping requirements. 

(a) Any seller or telemarketer shall 

keep, for a period of 24 months from 

the date the record is produced, the following records relating to its telemarketing activities: 

(1) All substantially different advertising, brochures, telemarketing 

scripts, and promotional materials; 

(2) The name and last known address 

of each prize recipient and the prize 

awarded for prizes that are represented, directly or by implication, to 

have a value of $25 .00 or more; 

(3) The name and last known address 

of each customer, the goods or services purchased, the date such goods or serv­ ices were shipped or provided, and the 

amount paid by the customer for the 

goods or services;667 

(4) The name, any fictitious name used, the last known home address and 

667 For offers of cousume1· credit products 

subject to the Trnth in Lending Act, 15 

U.S.C. 1601 et seq., and Regulation Z, 12 CFR 

226, compliance with the record.keeping re­ quirements under the Truth in Lending Act, 

and Regulation Z, shall con stitute compli­ ance with § 310.5(a)(3) of this Rule. 

16 CFR Ch. I (1-1-21 Edition) 

telephone number, and the job title(s) 

for all current and former employees 

directly involved in telephone sales or solicitations; provided, however, that if 

the seller or telemarketer permits fictitious names to be used by employees, 

each fictitious name must be traceable 

to only one specific employee; and 

(5) All verifiable authorizations or records of express informed consent or 

express agreement required to be provided or received under this Rule. 

(b) A seller or telemarketer may 

keep the records required by §310.5(a) 

in any form, and in the same manner, 

format, or place as they keep such 

records in the ordinary course of busi­ ness. Failure to keep all records re­ quired by § 310.5(a) shall be a violation 

of this Rule. 

(c) The seller and the telemarketer 

calling on behalf of the seller may, by 

written agreement, allocate responsibility between themselves for the rec­ ordkeeping required by this Section. 

When a seller and telemarketer have 

entered into such an agreement, the 

terms of that agreement shall govern, 

and the seller or telemarketer, as the 

case may be, need not keep records that duplicate those of t he other. If the 

agreement is unclear as to who must 

maintain any required record(s), or if 

no such agreement exists, the seller 

shall be responsible for complying with 

§§ 310.5(a)(l )-(3) and C5l; the telemarketer shall be responsible for com­ plying with§ 310.5(a)(4). 

(d) In the event of any dissolution or termination of the seller's or telemarketer's business, the p1·incipal of 

that seller or telemarketer shall maintain all records as required under this 

section. In the event of any sale, assignment, or other change in ownership 

of the seller's or telemarketer's business, the successor business shall maintain all records required under this sec­ tion. 

§ 310.6 Exemptions. 

(a) Solicitations to induce charitable 

contributions via outbound telephone 

calls are not covered by 

§ 310.4(b)(l)(iii)(B) of this Rule. 

(b) The following acts or practices are exempt from this Rule: 

396 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 53 of 61 PageID 372 
Federal Trade Commission 

(1) The sale of pay-per-call services 

subject to the Commission's Rule entitled "Trade Regulation Rule Pursuant 

to the Telephone Disclosure and Dispute Resolution Act of 1992," 16 CFR 

part 308, provided, however, that this 

exemption does not apply to the re­ quirements of §§ 310.4(a)(l), (a)(7), (b), 

and (c); 

(2) The sale of franchises subject to 

the Commission's Rule entitled " Disclosure Requirements and Prohibitions 

Concerning Franchising," ("Franchise 

Rule") 16 CFR part 436, and the sale of 

business opportunities subject to the 

Commission's Rule entitled "Disclo­ sure Requirements and Prohibitions 

Concerning Business Opportunities," 

("Business Opportunity Rule") 16 CFR 

part 437, provided, however, that this 

exemption does not apply to the re­ quirements of §§310.4(a)(l), (a)(7), (bl, and (c); 

(3) Telephone calls in which the sale of goods or services or charitable solicitation is not completed, and payment or authorization of payment is not re­ quired, until after a face-to-face sales or donation presentation by the seller or charitable organization, provided, 

however, that this exemption does not 

apply to the requirements of 

§§310.4(a)(l), (a)(7), (bl, and (c); 

(4) Telephone calls initiated by a customer or donor that are not the result 

of any solicitation by a seller, charitable organization, or telemarketer, 

provided, however, that this exemption 

does not apply to any instances of 

upselling included in such telephone 

calls; 

(5) Telephone calls initiated by a cus­ tomer or donor in response to an advertisement through any medium, other 

than direct mail solicitation, provided, 

however, that this exemption does not 

apply to: 

(i) Calls initiated by a customer or 

donor in response to an advert isement 

relating to investment opportunities, debt relief services, business opportunities other than business arrangements covered by the Franchise Rule or Busi­ ness Opportunity Rule, or advertisements involving offers for goods or services described in § 310.3(a)(l)(vi) 01· 

§310.4(a)(2) through (4); 

(ii) The requirements of §310.4(a)(9) or (10); or 

§310.7 

(iii) Any instances of upselling included in such telephone calls; 

(6) Telephone calls initiated by a cus­ tomer or donor in response to a direct 

mail solicitation, including solicitations via the U.S. Postal Service, facsimile transmission, electronic mail, and other similar methods of delivery 

in which a solicitation is directed to 

specific address(es) or person(s), that 

clearly, conspicuously, and truthfully 

discloses all material information list­ ed in §310.3(a)(l), for any goods or serv­ ices offered in the direct mail solicitation, and that contains no material 

misrepresentation regarding any item contained in § 310.3(d) for any requested 

charitable contribution; provided, however, that this exemption does not 

apply to: 

(i) Calls initiated by a customer in response to a direct mail solicitation 

relating to prize promotions, investment opportunities, debt relief serv­ ices, business opportunities other than 

business arrangements covered by the 

Franchise Rule or Business Opportunity Rule, or goods or services described in § 310.3(a)(l)(vi) or § 310.4(a )(2) 

through (4); 

(ii) The requirements of § 310.4(a)(9) 

or (10); or (iii) Any instances of upselling included in such telephone calls; and 

(7) Telephone calls between a telemarketer and any business to induce 

the purchase of goods or services or a 

charitable contribution by the business, except calls to induce the retail 

sale of nondurable office or cleaning 

supplies; provided, however, that 

§§310.4(b)(l)(iii)(B) and 310 .5 shall not 

apply to sellers or telemarketers of 

nondurable office or cleaning supplies. 

[75 FR 48516. Aug. 10, 2010, a s amended a t 80 

FR 77559, Dec. 14, 2015] 

§310.7 Actions by states and private 

persons. 

(a) Any attorney general or other of­ ficer of a state authorized by the state 

to bring an action under the Telemarketing and Consumer Fraud and 

Abuse P revention Act, and any private 

person who brings an action under that 

Act, shall seL·ve written notice of its action on the Commission. if feasible, prior t o its init iat ing an action under 

this Rule. The notice shall be sent to 

397 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 54 of 61 PageID 373 
§310.8 

the Office of the Director, Bureau of 

Consumer Protection, Federal Trade 

Commission, Washington, DC 20580, and 

shall include a copy of the state's or private person's complaint and any 

other pleadings to be filed with the 

court. If prior notice is not feasible, 

the state or private person shall serve the Commission with the required no­ tice immediately upon instituting its 

action. 

(b) Nothing contained in this Section 

shall prohibit any attorney general or 

other authorized state official from 

proceeding in state court on the basis 

of an alleged violation of any civil or criminal statute of such state. 

§ 310,8 Fee for access to the National 

Do Not Call Registry. 

(a) It is a violation of ·this Rule for any seller to initiate, or cause any 

telemarketer to initiate, an outbound 

telephone call to any person whose 

telephone number is within a given 

area code unless such seller, either directly or through another person, first 

has paid the annual fee, required by 

§310.S(c), for access to telephone num­ bers within that area code that are included in the National Do Not Call 

Registry maintained by the Commis­ sion under § 310.4(b)(l)(iii)(BJ; provided, 

however, that such payment is not nec­ essary if the seller initiates, or causes a telemarketer to initiate, calls solely 

to persons pursuant to 

§§310.4(b)(l)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

Not Call Registry for any other pur­ pose. 

(b) It is a violation of this Rule for an...v telemarketer, on behalf of any seller, to initiate an outbound telephone 

call to any person whose telephone 

number is within a given area code un­ less that seller, either directly or through another person, first has paid 

the annual fee, required by §310.S(c), 

for access to the telephone numbers 

within that area code that are included 

in the National Do Not Call Registry; 

provided, however, that such payment 

is not necessary if the seller initiates, or causes a telemarketer to initiate, 

calls solely to persons pursuant to 

§§ 310.4(b)(l)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

16 CFR Ch. I (1-1-21 Edition) 

Not Call Registry for any other purpose. 

(c) The annual fee, which must be 

paid by any person prior to obtaining access to the National Do Not Call 

Registry, is $66 for each area code of 

data accessed, up to a maximum of 

$18,044; provided, however, that there 

shall be no charge to any person for ac­ cessing the first five area codes of data, and provided further, that there shall be no charge to any person engaging in or causing others t o engage in outbound 

telephone calls to consumers and who 

is accessing area codes of data in the 

National Do Not Call Registry i( the 

person is permitted to access, but is 

not required to access, the National Do 

Not Call Registry under this Rule, 47 

CFR 64.1200, or any other Federal regulation or law. No person may participate in any arrangement to share the 

cost of accessing the National Do Not 

Call Registry, including any arrangement with any telemarketer or service 

provider to divide the costs to access the registry among various clients of 

that telemarketer or service provider. 

(d) Each person who pays, either directly or through another person, the 

annual fee set forth in paragraph (c) of 

this section, each person excepted 

under paragraph (c) from paying the 

annual fee, and each person excepted 

fl•om paying an annual fee under 

§310.4(b)(l)(iii)(B), will be provided a unique account number that will allow 

that person to access the registry data 

for the selected area codes at any time 

for the twelve month period beginning on the first day of the month in which 

the person paid the fee ("the annual period"). To obtain access to additional area codes of data during the first six 

months of the annual period, each per­ son required t o pay the fee under paragraph (c) of this section must first pay 

$66 for each additional area code of 

data not initially selected. To obtain access to additional area codes of data 

during the second six months of the an­ nual period, each person required to 

pay the fee under paragraph (c) of this 

section must first pay $33 for each additional area code of data not initially 

selected. The payment of the additional fee will permit the person to ac­ cess the additional area codes of data 

for the remainder of the annual period. 

398 

APPENDIX A 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 55 of 61 PageID 374 
Federal Trade Commission 

(e) Access to the National Do Not 

Call Registry is limited to telemarketers, sellers, others engaged in or causing others to engage in telephone 

calls to consumers, service providers 

acting on behalf of such persons, and 

any government agency that has law 

enforcement authority. Prior to access­ ing the National Do Not Call Registry, 

a person must provide the identifying 

information required by the operator of 

the registry to collect the fee, and 

must certify, under penalty of law, 

that the person is accessing the registry solely to comply with the provisions of this Rule or to otherwise prevent t elephone calls to telephone num­ bers on the registry. If the person is a c­ cessing the registry on behalf of sellers, that person also must identify 

each of the sellers on whose behalf it is 

accessing the registry, must provide 

each seller's unique account number 

for access to the national registry, and 

must certify, under penalty of law, 

that the sellers will be using the information gathered from the registry 

solely to comply with the provisions of 

this Rule or otherwise to prevent telephone calls to telephone numbers on the registry. 

[75 FR 48516, Aug. 10, 2010; 75 FR 51934, Aug. 24, 2010, as amended at 77 FR 51697, Aug. 27, 

2012; 78 FR 53643, Aug. 30, 2013; 79 FR 51478, 

Aug. 29, 2014; 80 FR 77560, Dec. 14, 2016; Bl FR 

59845, Aug. 31, 2016; 82 FR 39534, Aug. 21, 2017; 

83 FR 46640, Sept. 14, 2018; 84 FR 44687, Aug. 

27, 2019; 85 FR 62597, Oct. o, 2020] 

§ 310.9 Severability. 

The pr ovisions of this Rule are separate and severable from one another. If 

any provision is stayed or det ermined 

to be invalid, it is the Commission's intention that the remaining provisions 

shall continue in effect. 

399 

APPENDIX A 

§ 311.3 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 56 of 61 PageID 375 
NOTICE TO BENEFYTT CUSTOMERS 

FROM: support@mybk.com 

EMAIL SUBJECT LINE: Settlement of Federal Trade Commission Lawsuit against Benefytt. 

Decision required. 

EMAIL PREVIEW TEXT: You have the opportunity to enroll in the Health Insurance 

Marketplace® because of this settlement. 

TEXT: 

Dear [customer's full name]: 

Our records show you' re paying for [ name at least one Benefytt product the consumer will 

recognize, followed by "and other products" wherever applicable, which you bought from [ name 

ofBenefytt company/affiliate the consumer will recognize]. You were billed for these products 

by Benefytt or MyBenefitsKeeper, which is a name used by Benefytt. 

The Federal Trade Commission (FTC), the nation's consumer protection agency, sued us, 

claiming that we deceived our customers, and we agreed to settle the lawsuit. The lawsuit says 

that many of the healthcare products we sell don't cover people's medical needs, and that we've 

charged consumers for things they didn't agree to buy. 

That means: 

• You may have to pay almost all your medical bills if you get sick or have to go to the 

hospital. 

• You may be paying for products you didn't agree to buy. 

You are making monthly payments for the following products: 

[Insert chart tailored to each customer, starting with short-term and/or limited medical plan, 

with corresponding charge, frequency, and duration for each product, as shown in the following 

example: 

Product: 

name of short-term medical 

name of assoc. mem 

name of telemedicine 

1 

$119.12 

$40.00 

$67.40 

Total Monthly 

Char es: $266.50 

APPENDIXB 

You'll k 

Automatic 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 57 of 61 PageID 376 
I 

Can I cancel the products I'm paying for? 

Yes. Visit Here [hyperlink] or call 855-476-6009 as soon as possible to cancel your coverage. 

You can cancel some or all of the products you have. We'll cancel your coverage and stop billing 

you immediately. If you select this option, your coverage will end the same day. If your last 

monthly payment was before (date of order entry], we will partially refund that payment based 

on the date you cancel. If you made any monthly payments after [date of order entry] and cancel 

by [date certain- 105 days from order entry], we'll refund all charges you paid since [date of 

order entry]. 

If you want to keep your current products, you don't have to do anything. We'll keep billing 

you for the products you have. Important: You might not have comprehensive health insurance, 

so you may have to pay almost all your medical bills if you get sick or have to go to the hospital. 

You have a Special Enrollment Period to get comprehensive health 

coverage through HealthCare.gov, the federal Health Insurance 

Marketplace®. 

This special opportunity ends [SEP end date- 65 days from notice mail date]. Take action 

now to reduce any gap in your health coverage until your Marketplace coverage starts. 

When you apply for the Marketplace, they will check if you qualify for lower premiums and 

other costs, or for free or low-cost coverage through Medicaid or the Children's Health Insurance 

Program (CHIP), based on your income. 

Steps to get Marketplace coverage: 

1. Visit HealthCare.gov/get-coverage. Select your state to create an account and fill out 

an application. Use your MyBenefitsKeeper member email address when creating your 

Marketplace account. 

NOTE: Ignore a message if it says that you aren't eligible to enroll in a plan because 

the Open Enrollment Period for 2022 ended. Because of your situation, you're still 

able to enroll now. 

2. Within 1-2 days, the Marketplace will process your application and send you a 

notice about your eligibility with directions on how to get coverage during the 

Special Enrollment Period. You'll have 60 days to select a plan through 

HealthCare.gov. 

NOTE: The notice about your eligibility will be available in your Marketplace 

account. Depending on what you picked for communication preferences, you may 

APPENDIX B 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 58 of 61 PageID 377 
also get an email alert, or get a copy in the mail. 

3. Log into your Marketplace account. Return to your Marketplace application to select a 

new plan for 2022 health coverage. 

Need hef p enrolling in the Marketplace? 

Call the Marketplace Call Center at 1-800-318-2596. TTY users can call 1-855-889-4325. 

• Be sure to say that you're a "Benefytt" customer who bought a plan that's covered by the 

settlement agreement. Mention the "Federal Trade Commission" or "FTC" case against 

Benefytt. 

• Share with us the email address and phone number you used when you first signed up for 

your Benefytt plan. 

MyBenefitsKepper (Benefytt) shared this information with the Marketplace, so they know who 

you are and can confirm that you qualify for this Special Enrollment Period. 

When will my Marketplace coverage begin? 

Your Marketplace coverage will start the month after you select a plan through HealthCare.gov. 

You can also request an earlier coverage start date by calling the Marketplace Call Center. 

For more help: 

• For questions about the Marketplace, visit HealthCare.gov, or call the Marketplace Call 

Center at 1-800-318-2596. TTY users can call 1-855-889-4325. You can also make an 

appointment with someone in your area who can help you. Information is available at 

LocalHelp.HealthCare.gov. 

• Call the Marketplace Call Center to get this information in an accessible format, like 

large print, Braille, or audio, at no cost to you. 

Visit ftc.gov/[insert] for more information about the FTC's lawsuit against Benefytt. 

Sincerely, 

Todd Baxter 

Chief Executive Officer, Benefytt 

APPENDIXB 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 59 of 61 PageID 378 
NOTICE TO BENEFYTT CUSTOMERS 

FROM: support@mybk.com 

EMAIL SUBJECT LINE: Settlement of Federal Trade Commission Lawsuit against Benefytt. 

Decision required. 

EMAIL PREVIEW TEXT: You have the opportunity to enroll in your state's health insurance 

marketplace because of this settlement. 

TEXT: 

Dear [customer's full name]: 

Our records show you're paying for [name at least one Benefytt product the consumer will 

recognize, followed by "and other products" wherever applicable, which you bought from [name 

ofBenefytt company/affiliate the consumer will recognize]. You were billed for these products 

by Benefytt or MyBenefitsKeeper, which is a name used by Benefytt. 

The Federal Trade Commission (FTC), the nation's consumer protection agency, sued us, 

claiming that we deceived our customers, and we agreed to settle the lawsuit. The lawsuit says 

that many of the healthcare products we sell don't cover people's medical needs, and that we've 

charged consumers for things they didn't agree to buy. 

That means: 

• You may have to pay almost all your medical bills if you get sick or have to go to the 

hospital. 

• You may be paying for products you didn't agree to buy. 

You are making monthly payments for the following products: 

/Insert chart tailored to each customer, starting with short-term and/or limited medical plan, 

with corresponding charge, frequency, and duration for each product, as shown in the following 

example: 

Product: 

name of short-term medical 

j 

$119.12 

$40.00 

$67.40 

$19.99 

Total Monthly 

Charoes: $266.50 

APPENDIX B 

Until date 

Automaticall ou cancel 

Automaticall ou cancel 

ou cancel 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 60 of 61 PageID 379 
Can I cancel the products I'm paying for? 

Yes. Visit Here (hyperlink] or call 855-476-6009 as soon as possible to cancel your coverage. 

You can cancel some or all of the products you have. We'll cancel your coverage and stop billing 

you immediately. If you select this option, your coverage will end the same day. If your last 

monthly payment was before [ date of order entry], we will partially refund that payment based 

on the date you cancel. If you made any monthly payments after [ date of order entry] and cancel 

by [date certain- 105 days from order entry], we'll refund all charges you paid since [date of 

order entry]. 

If you want to keep your current products, you don't have to do anything. We'll keep billing 

you for the products you have. Important: You might not have comprehensive health insurance, 

so you may have to pay almost all your medical bills if you get sick or have to go to the hospital. 

[Insert if member lives in CA, CO, CT, DC, ID, KY, MA, ME, MD, MN, NJ, NV, NM, NY, PA, RI, 

VT, or WA:} 

How do I get comprehensive health coverage? 

You may be able to get health coverage through your state's health insurance marketplace. 

They'll let you know if you qualify for a Special Enrollment Period through the [state] 

marketplace and how to apply. 

Get more details about buying a comprehensive health insurance plan: 

• Call your state's marketplace Call Center at [insert consumer's state's exchange phone 

number]. TTY users can call [insert state's exchange TTY number]. 

• You can tell them you're a "Benefytt" customer who bought a plan that's covered by the 

settlement agreement. You may have to send this notice to them. 

Visit ftc.gov/[insert] for more information about the FTC's lawsuit against Benefytt. 

Sincerely, 

Todd Baxter 

Chief Executive Officer, Benefytt 

APPENDIX B 

Case 8:22-cv-01794-TPB-JSS Document 13 Filed 08/11/22 Page 61 of 61 PageID 380