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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

AMERICAN YELLOW BROWSER, INC., 

et al., 

Defendants. 

) 

) 

) 

) CaseNo. 15-cv-2047 

) 

) Judge Norgle 

) 

) Magistrate Judge Cole 

) 

) 

) 

_________________________________) 

DEFAULT JUDGMENT AND ORDER FOR PERMANENT 

INJUNCTION AND MONETARY RELIEF 

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

for Permanent Injunction and Other Equitable Relief ("Complaint") in this matter pursuant to 

Section 13(b) ofthe Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b). The FTC 

now having filed its Motion for Default Judgment and Order for Permanent Injunction and 

Monetary Relief ("Motion"), and the Court having considered the FTC's Motion, and supporting 

exhibits, and the entire record, the FTC's Motion is hereby granted, and IT IS HEREBY 

ORDERED, ADJUDGED, AND DECREED as follows: 

FINDINGS 

1. This is an action by the Commission instituted under Sections 5(a) and 13(b) of 

the FTC Act, 15 U.S.C. §§ 45(a) and 53(b). The Complaint seeks permanent injunctive relief 

against Defendants in connection with the marketing, promotion, offering for sale, or sale of 

business directory listings. Pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), the 

Commission has the authority to seek the relief contained herein. 
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2. This Court has jurisdiction over the subject matter of this case and personal 

jurisdiction over the parties hereto. 

3. The Commission's Complaint states claims upon which relief may be granted 

under Sections 5(a) and 13(b) of the FTC Act, 15 U.S.C. §§ 45(a) and 53(b). 

4. Venue in the United States District Court for the Northern District of Illinois is 

proper pursuant to 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(b), (c), and (d). 

5. The activities of Defendants are "in or affecting commerce" as "commerce" is 

defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

6. Defendants were properly served with the Summons and Complaint in this matter. 

All Defendants thereafter failed to file any responsive pleading as required by Rule 12(a) of the 

Federal Rules of Civil Procedure, Fed. R. Civ. P. 12(a). On August 21,2015, the Court entered 

an order of default as to all Defendants. 

7. The factual allegations in the Commission's Complaint are taken as true against 

Defendants. Those allegations and the evidence supporting them establish that Defendants 

violated Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a). 

8. The Court now finds that, in connection with the marketing, promotion, offering 

for sale, or sale of business directory listings, Defendants have violated Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), by falsely representing, directly or indirectly, expressly or by implication, 

that consumers have agreed to purchase a listing in Defendants' business directory. 

9. The Court further finds that, in connection with the marketing, promotion, 

offering for sale, or sale of business directory listings, Defendants have violated Section 5(a) of 

the FTC Act, 15 U.S.C. § 45(a), by falsely representing, directly or indirectly, expressly or by 

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implication, that consumers owe money to Defendants for a listing in Defendants' business 

directory. 

10. It is proper to enter a permanent injunction to prevent a recurrence of Defendants' 

violations ofthe FTC Act, 15 U.S.C. § 45, and to enter equitable monetary relief against 

Defendants. 

11. Defendants' net sales (total sales minus refunds, returns, and chargebacks) 

amount to at least one million two hundred forty-one thousand seven hundred forty 

United States Dollars ("USD") ($1,241,740 USD) from the conduct alleged in the Complaint. 

12. The Commission is therefore entitled to equitable monetary relief against 

Defendants in the amount of one million two hundred forty-one thousand seven hundred forty 

USD ($1,241,740 USD), for which Defendants are jointly and severally liable. 

13. This Order is in addition to, and not in lieu of, any other civil or criminal remedies 

that may be provided by law. 

14. Entry of this Order is in the public interest. 

DEFINITIONS 

For purposes of this Order, the following definitions apply: 

1. "Consumer" includes any individual, group, unincorporated association, limited 

or general partnership, corporation, or other business entity. 

2. "Corporate Defendants" means American Yell ow Browser, Inc., American 

Yellow Group Inc., Distribution H.E.P. Inc., also doing business as American Yellow 

Distribution and Medical Yell ow Directories Inc., Official Yell ow Guide Inc., Publication 

A.A.P. Inc., also doing business as All American Pages and Official Yell ow Guide, Publication 

A.Y.B. Inc., also doing business as American Yellow Browser Inc., American Yellow Group 

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Inc., and All American Pages Inc., and Publications A.Y.D. Inc., and their successors and 

assigns, as well as any fictitious business entities or business names created or used by these 

entities, or any of them. 

3. "Defendants" means all ofthe Individual Defendants and the Corporate 

Defendants, individually, collectively, or in any combination. 

4. "Individual Defendants" means Ivan Chemev and German Lebedev, and by 

whatever other names each may be known. 

5. "Person" or "persons" includes a natural person, an organization or other legal 

entity, including a corporation, partnership, sole proprietorship, limited liability company, 

association, cooperative, or any other group or combination acting as an entity. 

6. "Plaintiff' means the Federal Trade Commission 

ORDER 

I. 

BAN ON CERTAIN ACTIVITIES 

IT IS ORDERED that Defendants, whether acting directly or indirectly, are permanently 

restrained and enjoined from engaging in, participating in, or assisting others in the advertising, 

marketing, promotion, offering for sale, or sale of business directories and/or listings in business 

directories in any format. 

II. 

PROHIBITED BUSINESS PRACTICES 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, in connection with the 

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advertising, marketing, promotion, offering for sale, or sale of any good or service, are 

permanently restrained and enjoined from misrepresenting, or assisting others in 

misrepresenting, expressly or by implication, any material fact, including, but not limited to: 

A. That consumers have agreed to purchase a good or service from Defendants; 

B. That consumers owe money to Defendants for any good or service; 

C. The nature of Defendants' relationship with consumers, and the purpose oftheir 

communication with consumers; 

D. The total cost to purchase, receive, or use the good or service; 

E. Any material restrictions, limitations, or conditions to purchase, receive, or use 

the good or service; 

F. Any material aspect of the performance, efficacy, nature, or central characteristics 

of the good or service; or 

G. Any material aspect of the nature or terms of a refund, cancellation, exchange, or 

repurchase policy for the good or service. 

III. 

MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of one million two hundred forty-one thousand seven 

hundred forty United States Dollars ($1,241,740 USD) is entered in favor of the Commission 

against Defendants, jointly and severally, as equitable monetary relief 

B. Defendants are ordered to pay to the Commission one million two hundred fortyone thousand seven hundred forty United States Dollars ($1,241,740 USD). Such payment must 

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be made within seven (7) days of entry of this Order by electronic funds transfer in accordance 

with instructions previously provided by a representative of the Commission. 

C. All money paid to the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for equitable relief, including 

consumer redress and any attendant expenses for the administration of any redress fund. If a 

representative of the Commission decides that direct redress to consumers is wholly or partially 

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

remaining money for such other equitable relief (including consumer information remedies) as it 

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

money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

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

take pursuant to this Subsection. 

IV. 

TURNOVER OF ASSETS HELD BY THIRD PARTIES 

IT IS FURTHER ORDERED that, in order to partially satisfy the monetary judgment 

set forth in Section III above, any financial institution, business entity, or person that holds, 

controls, or maintains custody of any account or asset of any Defendant, or any account or asset 

held on behalf of, or for the benefit of, any Defendant, or any account or asset frozen pursuant to 

(a) the Ex Parte Temporary Restraining Order with Asset Freeze, Other Equitable Relief, and 

Order to Show Cause Why a Preliminary Injunction Should Not Issue ("TRO"), entered in this 

matter on March 10,2015, and/or (b) the Preliminary Injunction, entered in this matter on March 

24,2015, shall tum over such account or asset to the Commission, by wire transfer pursuant to 

directions provided by counsel for the Commission, or as otherwise agreed to in writing by 

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counsel for the Commission, within ten (1 0) days of receiving notice of this Order by any means, 

including, but not limited to, via facsimile. 

v. 

DISPOSITION OF UNCASHED CHECKS 

IT IS FURTHER ORDERED that Defendants waive and release all rights, claims, and 

interests in all uncashed checks and other negotiable instruments previously and hereafter sent by 

consumers in response to Defendants' invoices and/or collection activities related to business 

directories and/or listings in business directories. Said uncashed checks and negotiable 

instruments, held by the Commission pursuant to the TRO and Preliminary Injunction issued in 

this action, shall not be cashed, but shall be returned to their makers by the Commission or its 

agent; and the Commission or its agent is authorized for this purpose to open any mail addressed 

to any Defendant that is or has been forwarded to the Commission and to dispose of such mail as 

the Commission, in its sole discretion, determines to be appropriate. In the event that the makers 

of the uncashed checks or negotiable instruments cannot be located, or the Commission, in its 

sole discretion, determines that the return of checks or negotiable instruments is otherwise 

impracticable, the Commission or its agent shall destroy the checks or negotiable instruments. 

Third parties receiving any such additional uncashed checks and negotiable instruments 

on behalf of any Defendant, shall, after receiving notice of this Order, forward such additional 

uncashed checks and negotiable instruments by overnight courier to: Federal Trade 

Commission, Midwest Region, 55 West Momoe Street, Suite 1825, Chicago, Illinois 60603, or 

as otherwise agreed to in writing by counsel for the Commission. The Commission shall dispose 

of any such additional uncashed checks and negotiable instruments pursuant to this Section. 

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VI. 

PROHIBITIONS REGARDING CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, are permanently 

restrained and enjoined from directly or indirectly: 

A. Disclosing, selling, renting, leasing, transferring, using, or benefiting from 

customer information, including the name, address, telephone number, email address, social 

security number, other identifying information, or any data that enables access to a customer's 

account (including a credit card, bank account, or other financial account), that any Defendant 

obtained prior to entry of this Order in connection with the advertising, marketing, promotion, 

offering for sale, or sale of business directory listings; and 

B. Failing to destroy such customer information in all forms in their possession, 

custody, or control within thirty (30) days after receipt of written direction to do so from a 

representative of the Commission. 

Provided, however, that customer information need not be destroyed, and may be 

disclosed, to the extent requested by a government agency or required by a law, regulation, or 

court order. 

VII. 

PROHIBITION ON COLLECTING ON ACCOUNTS 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, are permanently 

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restrained and enjoined from attempting to collect or collecting payment for any listing in any 

business directory, and from selling, assigning, or otherwise transferring any right to collect 

payment for any listing in any business directory. 

Any other person who purportedly has purchased, been assigned, or otherwise received 

from any Defendant the right to collect payment for any listing in any business directory shall 

similarly be prohibited from attempting to collect or collecting payment for such listings if such 

person has actual notice of this Order. 

VIII. 

ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

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

Commission an acknowledgment of receipt ofthis Order sworn under penalty of perjury. 

B. For five (5) years after entry of this Order, each Individual Defendant for any 

business that such Defendant, individually or collectively with any other Defendant, is the 

majority owner or controls directly or indirectly, and each Corporate Defendant, must deliver a 

copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; 

(2) all employees, 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 seven (7) days of 

entry of this Order for current personnel. For all others, delivery must occur before they assume 

their responsibilities. 

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

Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment 

of receipt of this Order. 

IX. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

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

report, sworn under penalty of perjury: 

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

address and telephone number, as designated points of contact, which representatives of the 

Commission may use to communicate with Defendant; (b) identify all of that Defendant's 

businesses by all of their names, telephone numbers, and physical, postal, email, and Internet 

addresses; (c) describe the activities of each business, including the goods and services offered, 

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

(which Individual Defendants must describe if they know or should know due to their own 

involvement); (d) describe in detail whether and how that Defendant is in compliance with each 

Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant 

to this Order, unless previously submitted to the Commission. 

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

numbers and all physical, postal, email and Internet addresses, including all residences; (b) 

identify all business activities, including any business for which such Defendant performs 

services whether as an employee or otherwise and any entity in which such Defendant has any 

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ownership interest; and (c) describe in detail such Defendant's involvement in each such 

business, including title, role, responsibilities, participation, authority, control, and any 

ownership. 

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

compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in 

the following: 

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

contact; or (b) the structure of 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. 

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

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

business activity, including any business for which such Defendant performs services whether as 

an employee or otherwise and any entity in which such Defendant has any ownership interest, 

and identify the name, physical address, and any Internet address of the business or entity. 

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

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

within 14 (fourteen) days of its filing. 

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

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that the foregoing is true and correct. Executed on: __ " and supplying the date, signatory's 

full name, title (if applicable), and signature. 

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

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: FTC v. American Yellow Browser, Inc., 

FTC Matter No. X150026. 

X. 

RECORD KEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for twenty 

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

Corporate Defendants and each Individual Defendant for any business that such Defendant, 

individually or collectively with any other Defendant, is a majority owner or controls directly or 

indirectly, must create and retain the following records: 

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

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

employee or otherwise, that person's: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

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

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

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

Order, including all submissions to the Commission; and 

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

XI. 

COMPLIANCE MONITORING 

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

compliance with this Order and any failure to transfer any assets as required by this Order: 

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

the Commission, each Defendant must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission is also authorized to obtain discovery, 

without further leave of court, using any of the procedures prescribed by Federal Rules of Civil 

Procedure 29,30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

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

directly with each Defendant. Defendant must permit representatives of the Commission to 

interview any employee or other person affiliated with any Defendant who has agreed to such an 

interview. The person interviewed may have counsel present. 

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

representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission's lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

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

reporting agency must furnish consumer reports concerning Individual Defendants, pursuant to 

Section 604(a)(l) ofthe Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(l). 

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XII. 

LIFTING OF ASSET FREEZE 

IT IS FURTHER ORDERED that the freeze on the assets of Defendants shall remain in 

effect until the Commission has received the total amount required by Section III above, 

provided, however, that Defendants may transfer funds to the extent necessary to make all 

payments required by Section III. Upon payment to the Commission of the total amount 

required by Section III above, the freeze against the assets of Defendants shall be lifted 

permanently. 

XIII. 

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 __ day of ________ , 2015. 

Honorable Charles R. Norgle, Sr. 

United States District Judge 

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

AMERICAN YELLOW BROWSER, INC., 

et al., 

Defendants. 

) 

) 

) 

) Case No. 15-cv-2047 

) 

) Judge Norgle 

) 

) Magistrate Judge Cole 

) 

) 

) 

_________________________________ ) 

DEFAULT JUDGMENT AND ORDER FOR PERMANENT 

INJUNCTION AND MONETARY RELIEF 

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

for Permanent Injunction and Other Equitable Relief ("Complaint") in this matter pursuant to 

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

now having filed its Motion for Default Judgment and Order for Permanent Injunction and 

Monetary Relief ("Motion"), and the Court having considered the FTC's Motion, and supporting 

exhibits, and the entire record, the FTC's Motion is hereby granted, and IT IS HEREBY 

ORDERED, ADJUDGED, AND DECREED as follows: 

FINDINGS 

1. This is an action by the Commission instituted under Sections 5(a) and 13(b) of 

the FTC Act, 15 U.S.C. §§ 45(a) and 53(b). The Complaint seeks permanent injunctive relief 

against Defendants in connection with the marketing, promotion, offering for sale, or sale of 

business directory listings. Pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), the 

Commission has the authority to seek the relief contained herein. 
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2. This Court has jurisdiction over the subject matter of this case and personal 

jurisdiction over the parties hereto. 

3. The Commission's Complaint states claims upon which relief may be granted 

under Sections 5(a) and 13(b) of the FTC Act, 15 U.S.C. §§ 45(a) and 53(b). 

4. Venue in the United States District Court for the Northern District of Illinois is 

proper pursuant to 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(b), (c), and (d). 

5. The activities of Defendants are "in or affecting commerce" as "commerce" is 

defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

6. Defendants were properly served with the Summons and Complaint in this matter. 

All Defendants thereafter failed to file any responsive pleading as required by Rule 12(a) of the 

Federal Rules of Civil Procedure, Fed. R. Civ. P. 12(a). On August 21,2015, the Court entered 

an order of default as to all Defendants. 

7. The factual allegations in the Commission's Complaint are taken as true against 

Defendants. Those allegations and the evidence supporting them establish that Defendants 

violated Section 5(a) ofthe FTC Act, 15 U.S.C. § 45(a). 

8. The Court now finds that, in connection with the marketing, promotion, offering 

for sale, or sale of business directory listings, Defendants have violated Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), by falsely representing, directly or indirectly, expressly or by implication, 

that consumers have agreed to purchase a listing in Defendants' business directory. 

9. The Court further finds that, in connection with the marketing, promotion, 

offering for sale, or sale of business directory listings, Defendants have violated Section 5(a) of 

the FTC Act, 15 U.S.C. § 45(a), by falsely representing, directly or indirectly, expressly or by 

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implication, that consumers owe money to Defendants for a listing in Defendants' business 

directory. 

10. It is proper to enter a permanent injunction to prevent a recurrence of Defendants' 

violations of the FTC Act, 15 U.S.C. § 45, and to enter equitable monetary relief against 

Defendants. 

11. Defendants' net sales (total sales minus refunds, returns, and chargebacks) 

amount to at least one million two hundred forty-one thousand seven hundred forty 

United States Dollars ("USD") ($1,241,740 USD) from the conduct alleged in the Complaint. 

12. The Commission is therefore entitled to equitable monetary relief against 

Defendants in the amount of one million two hundred forty-one thousand seven hundred forty 

USD ($1,241,740 USD), for which Defendants are jointly and severally liable. 

13. This Order is in addition to, and not in lieu of, any other civil or criminal remedies 

that may be provided by law. 

14. Entry ofthis Order is in the public interest. 

DEFINITIONS 

For purposes of this Order, the following definitions apply: 

1. "Consumer" includes any individual, group, unincorporated association, limited 

or general partnership, corporation, or other business entity. 

2. "Corporate Defendants" means American Yell ow Browser, Inc., American 

Yellow Group Inc., Distribution H.E.P. Inc., also doing business as American Yellow 

Distribution and Medical Yell ow Directories Inc., Official Yell ow Guide Inc., Publication 

A.A.P. Inc., also doing business as All American Pages and Official Yell ow Guide, Publication 

A. Y.B. Inc., also doing business as American Yell ow Browser Inc., American Yell ow Group 

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Inc., and All American Pages Inc., and Publications A.Y.D. Inc., and their successors and 

assigns, as well as any fictitious business entities or business names created or used by these 

entities, or any of them. 

3. "Defendants" means all of the Individual Defendants and the Corporate 

Defendants, individually, collectively, or in any combination. 

4. "Individual Defendants" means Ivan Chemev and German Lebedev, and by 

whatever other names each may be known. 

5. "Person" or "persons" includes a natural person, an organization or other legal 

entity, including a corporation, partnership, sole proprietorship, limited liability company, 

association, cooperative, or any other group or combination acting as an entity. 

6. "Plaintiff' means the Federal Trade Commission 

ORDER 

I. 

BAN ON CERTAIN ACTIVITIES 

IT IS ORDERED that Defendants, whether acting directly or indirectly, are permanently 

restrained and enjoined from engaging in, participating in, or assisting others in the advertising, 

marketing, promotion, offering for sale, or sale of business directories and/or listings in business 

directories in any format. 

II. 

PROHIBITED BUSINESS PRACTICES 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, in connection with the 

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advertising, marketing, promotion, offering for sale, or sale of any good or service, are 

permanently restrained and enjoined from misrepresenting, or assisting others in 

misrepresenting, expressly or by implication, any material fact, including, but not limited to: 

A. That consumers have agreed to purchase a good or service from Defendants; 

B. That consumers owe money to Defendants for any good or service; 

C. The nature of Defendants' relationship with consumers, and the purpose of their 

communication with consumers; 

D. The total cost to purchase, receive, or use the good or service; 

E. Any material restrictions, limitations, or conditions to purchase, receive, or use 

the good or service; 

F. Any material aspect of the performance, efficacy, nature, or central characteristics 

of the good or service; or 

G. Any material aspect of the nature or terms of a refund, cancellation, exchange, or 

repurchase policy for the good or service. 

III. 

MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of one million two hundred forty-one thousand seven 

hundred forty United States Dollars ($1,241,740 USD) is entered in favor ofthe Commission 

against Defendants, jointly and severally, as equitable monetary relief. 

B. Defendants are ordered to pay to the Commission one million two hundred fortyone thousand seven hundred forty United States Dollars ($1,241,740 USD). Such payment must 

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be made within seven (7) days of entry of this Order by electronic funds transfer in accordance 

with instructions previously provided by a representative of the Commission. 

C. All money paid to the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for equitable relief, including 

consumer redress and any attendant expenses for the administration of any redress fund. If a 

representative of the Commission decides that direct redress to consumers is wholly or partially 

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

remaining money for such other equitable relief (including consumer information remedies) as it 

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

money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

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

take pursuant to this Subsection. 

IV. 

TURNOVER OF ASSETS HELD BY THIRD PARTIES 

IT IS FURTHER ORDERED that, in order to partially satisfy the monetary judgment 

set forth in Section III above, any financial institution, business entity, or person that holds, 

controls, or maintains custody of any account or asset of any Defendant, or any account or asset 

held on behalf of, or for the benefit of, any Defendant, or any account or asset frozen pursuant to 

(a) the Ex Parte Temporary Restraining Order with Asset Freeze, Other Equitable Relief, and 

Order to Show Cause Why a Preliminary Injunction Should Not Issue ("TRO"), entered in this 

matter on March 10,2015, and/or (b) the Preliminary Injunction, entered in this matter on March 

24, 2015, shall tum over such account or asset to the Commission, by wire transfer pursuant to 

directions provided by counsel for the Commission, or as otherwise agreed to in writing by 

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counsel for the Commission, within ten (1 0) days of receiving notice of this Order by any means, 

including, but not limited to, via facsimile. 

v. 

DISPOSITION OF UNCASHED CHECKS 

IT IS FURTHER ORDERED that Defendants waive and release all rights, claims, and 

interests in all uncashed checks and other negotiable instruments previously and hereafter sent by 

consumers in response to Defendants' invoices and/or collection activities related to business 

directories and/or listings in business directories. Said uncashed checks and negotiable 

instruments, held by the Commission pursuant to the TRO and Preliminary Injunction issued in 

this action, shall not be cashed, but shall be returned to their makers by the Commission or its 

agent; and the Commission or its agent is authorized for this purpose to open any mail addressed 

to any Defendant that is or has been forwarded to the Commission and to dispose of such mail as 

the Commission, in its sole discretion, determines to be appropriate. In the event that the makers 

of the uncashed checks or negotiable instruments cannot be located, or the Commission, in its 

sole discretion, determines that the return of checks or negotiable instruments is otherwise 

impracticable, the Commission or its agent shall destroy the checks or negotiable instruments. 

Third parties receiving any such additional uncashed checks and negotiable instruments 

on behalf of any Defendant, shall, after receiving notice of this Order, forward such additional 

uncashed checks and negotiable instruments by overnight courier to: Federal Trade 

Commission, Midwest Region, 55 West Monroe Street, Suite 1825, Chicago, Illinois 60603, or 

as otherwise agreed to in writing by counsel for the Commission. The Commission shall dispose 

of any such additional uncashed checks and negotiable instruments pursuant to this Section. 

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VI. 

PROHIBITIONS REGARDING CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, are permanently 

restrained and enjoined from directly or indirectly: 

A. Disclosing, selling, renting, leasing, transferring, using, or benefiting from 

customer information, including the name, address, telephone number, email address, social 

security number, other identifying information, or any data that enables access to a customer's 

account (including a credit card, bank account, or other financial account), that any Defendant 

obtained prior to entry of this Order in connection with the advertising, marketing, promotion, 

offering for sale, or sale of business directory listings; and 

B. Failing to destroy such customer information in all forms in their possession, 

custody, or control within thirty (30) days after receipt of written direction to do so from a 

representative ofthe Commission. 

Provided, however, that customer information need not be destroyed, and may be 

disclosed, to the extent requested by a government agency or required by a law, regulation, or 

court order. 

VII. 

PROHIBITION ON COLLECTING ON ACCOUNTS 

IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees, 

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

receive actual notice of this Order, whether acting directly or indirectly, are permanently 

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restrained and enjoined from attempting to collect or collecting payment for any listing in any 

business directory, and from selling, assigning, or otherwise transferring any right to collect 

payment for any listing in any business directory. 

Any other person who purportedly has purchased, been assigned, or otherwise received 

from any Defendant the right to collect payment for any listing in any business directory shall 

similarly be prohibited from attempting to collect or collecting payment for such listings if such 

person has actual notice of this Order. 

VIII. 

ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

A. Each Defendant, within seven (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 five (5) years after entry of this Order, each Individual Defendant for any 

business that such Defendant, individually or collectively with any other Defendant, is the 

majority owner or controls directly or indirectly, and each Corporate Defendant, must deliver a 

copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; 

(2) all employees, 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 seven (7) days of 

entry of this Order for current personnel. For all others, delivery must occur before they assume 

their responsibilities. 

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

Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment 

of receipt of this Order. 

IX. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

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

report, sworn under penalty of perjury: 

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

address and telephone number, as designated points of contact, which representatives of the 

Commission may use to communicate with Defendant; (b) identify all ofthat Defendant's 

businesses by all of their names, 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 

(which Individual Defendants must describe if they know or should know due to their own 

involvement); (d) describe in detail whether and how that Defendant is in compliance with each 

Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant 

to this Order, unless previously submitted to the Commission. 

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

numbers and all physical, postal, email and Internet addresses, including all residences; (b) 

identify all business activities, including any business for which such Defendant performs 

services whether as an employee or otherwise and any entity in which such Defendant has any 

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ownership interest; and (c) describe in detail such Defendant's involvement in each such 

business, including title, role, responsibilities, participation, authority, control, and any 

ownership. 

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

compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in 

the following: 

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

contact; or (b) the structure of 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. 

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

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

business activity, including any business for which such Defendant performs services whether as 

an employee or otherwise and any entity in which such Defendant has any ownership interest, 

and identify the name, physical address, and any Internet address of the business or entity. 

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

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

within 14 (fourteen) days of its filing. 

D. Any submission to the Commission required by this Order to be sworn 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 ofthe United States of America 

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that the foregoing is true and correct. Executed on: __ " and supplying the date, signatory's 

full name, title (if applicable), and signature. 

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

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: FTC v. American Yellow Browser, Inc., 

FTC Matter No. X150026. 

X. 

RECORD KEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for twenty 

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

Corporate Defendants and each Individual Defendant for any business that such Defendant, 

individually or collectively with any other Defendant, is a majority owner or controls directly or 

indirectly, must create and retain the following records: 

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

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

employee or otherwise, that person's: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination; 

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

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

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

Order, including all submissions to the Commission; and 

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

XI. 

COMPLIANCE MONITORING 

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

compliance with this Order and any failure to transfer any assets as required by this Order: 

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

the Commission, each Defendant must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission is also authorized to obtain discovery, 

without further leave of court, using any of the procedures prescribed by Federal Rules of Civil 

Procedure 29,30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

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

directly with each Defendant. Defendant must permit representatives of the Commission to 

interview any employee or other person affiliated with any Defendant who has agreed to such an 

interview. The person interviewed may have counsel present. 

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

representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission's lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

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

reporting agency must furnish consumer reports concerning Individual Defendants, pursuant to 

Section 604(a)(l) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(l). 

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XII. 

LIFTING OF ASSET FREEZE 

IT IS FURTHER ORDERED that the freeze on the assets of Defendants shall remain in 

effect until the Commission has received the total amount required by Section III above, 

provided, however, that Defendants may transfer funds to the extent necessary to make all 

payments required by Section III. Upon payment to the Commission of the total amount 

required by Section III above, the freeze against the assets of Defendants shall be lifted 

permanent! y. 

XIII. 

RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

Honorable Charles R. Norgle r. 

United States District Judg 

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