Case 1:20-mi-99999-UNA Document 1151-4 Filed 04/20/20 Page 1 of 19 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF GEORGIA 

ATLANTA DIVISION 

FEDERAL TRADE COMMISSION, 

Case No. 

Plaintiff, 

v. 

PROG LEASING, LLC, a limited liability 

company, also d/b/a Progressive Leasing, 

Defendant. 

STIPULATED ORDER FOR PERMANENT INJUNCTION AND 

MONETARY JUDGMENT 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), 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 Commission and Defendant stipulate to the entry of this Stipulated 

Order for Permanent Injunction and Monetary Judgment (“Order”) to resolve all 

matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

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FINDINGS 

1. This Court has jurisdiction over this matter. 

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

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

marketing, offering for sale, or sale of Rent-to-Own products. 

3. Defendant neither admits nor denies any of the allegations in the Complaint, 

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

Defendant admits the facts necessary to establish jurisdiction. 

4. Defendant waives any claim that it 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 agrees to bear its own costs and attorney fees. 

Defendant waives and releases any claims that it may have against the Commission 

and its agents that relate to this action. 

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

challenge or contest the validity of this Order. 

DEFINITIONS 

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

A. “Clear(ly) and Conspicuous(ly)” means that a required disclosure is 

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

ordinary consumers, including in all of the following ways: 

1. 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-to-face 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. 

B. “Defendant” means Prog Leasing, LLC, d/b/a Progressive Leasing, and its 

successors and assigns. 

C. “Express, Informed Consent” means an affirmative act communicating 

unambiguous assent to be charged, made after receiving and in close 

proximity to a Clear and Conspicuous disclosure of all material information 

related to the charge(s), including the following: (1) the number, amount, 

and timing of the charge(s); (2) if ownership of the item(s) for which the 

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charge(s) are being incurred is a possibility, the total cost to own if the 

consumer were to incur all scheduled charges; and (3) if ownership is not a 

possibility, that fact. 

D. “Person” means a natural person, organization, or other legal entity, 

including a corporation, partnership, proprietorship, association, cooperative, 

or any other group or combination acting as an entity. 

E. “Rent-to-Own” means the purchase or rental of any good or service with 

payments over time and the option to purchase the good or service. 

ORDER 

I. PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS ORDERED that Defendant, Defendant’s 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 marketing, offering for sale, or sale of Rent-to-Own goods 

and services are permanently restrained and enjoined from: 

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

implication: 

1. costs, including the total cost to own any item; fees; charges; or 

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interest, including that there is no interest without Clearly and 

Conspicuously disclosing the total cost; 

2. the nature of the good or service, including whether the good or 

service is financing or leasing; 

3. the availability of any options to own, rent, or lease; which option, if 

any, the consumer is enrolled in; when each option is available; and 

how each option may be exercised; and 

4. any other material fact, such as: any material restrictions, limitations, 

or conditions; or any material aspect of the Rent-to-Own good or 

service. 

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

expressly or by implication, regarding any option to own, rent, lease, or 

finance, or about any term related to any option to own, rent, lease, or 

finance, unless Defendant discloses Clearly and Conspicuously, and in close 

proximity to the representation, the following: 

1. the steps the consumer must take to exercise the option; 

2. if ownership is a possibility under the option, the total cost to own 

under the option; and 

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3. if ownership is not a possibility under the option, that fact; 

and the claim is not otherwise misleading. 

II. PROMOTIONAL AND OTHER MATERIALS 

IT IS FURTHER ORDERED that Defendant, directly or through any 

corporation, subsidiary, division, trade name, or other device, in connection with 

the marketing, offering for sale, or sale of Rent-to-Own goods and services shall 

not provide to others any information, including any advertising, labeling, 

promotional, or training materials, with which to engage in any conduct prohibited 

by this Order. 

III. VETTING AND MONITORING REQUIREMENTS 

IT IS FURTHER ORDERED that Defendant, Defendant’s 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 the marketing, offering for sale, or sale of Rent-to-Own goods and 

services, shall: 

A. Vet and monitor the acts and practices of any business, entity, or other 

organization that offers or will offer Defendant’s Rent-to-Own goods or 

services to consumers, including marketing materials, training materials, and 

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communications with consumers in the marketing, offering for sale, or sale 

of Defendant’s Rent-to-Own goods and services, to ensure compliance with 

this Order; and 

B. Promptly and completely investigate any complaints, legal actions, or other 

materials regarding acts or practices prohibited by this Order. 

IV. EXPRESS, INFORMED CONSENT TO CHARGES 

IT IS FURTHER ORDERED that Defendant and its officers, agents, and 

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, 

are restrained and enjoined from billing a consumer for any charge for 

Rent-to-Own goods or services without having obtained Express, Informed 

Consent to bill the consumer for the charge. 

V. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of One Hundred Seventy Five Million Dollars 

($175,000,000) is entered in favor of the Commission against Defendant as 

equitable monetary relief. 

B. Defendant is ordered to pay to the Commission One Hundred Seventy Five 

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Million Dollars ($175,000,000), which, as Defendant stipulates, its 

undersigned counsel holds in escrow for no purpose other than payment to 

the Commission. Such payment must be made within 7 days of entry of 

this Order by electronic fund transfer in accordance with instructions 

previously provided by a representative of the Commission. 

VI. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendant relinquishes dominion and all legal and equitable right, title, and 

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

return of any assets. 

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

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

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

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

bankruptcy case. 

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

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

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

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collateral estoppel effect for such purposes. 

D. Defendant acknowledges that its Taxpayer Identification Number, which 

Defendant previously submitted to the Commission, may be used for 

collecting and reporting on any delinquent amount arising out of this Order, 

in accordance with 31 U.S.C. § 7701. 

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

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

equitable relief, including consumer redress and any attendant expenses for 

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

Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission 

may apply any remaining money for such other equitable relief (including 

consumer information remedies) as it determines to be reasonably related to 

Defendant’s practices alleged in the Complaint. Any money not used for 

such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Defendant has no right to challenge any actions the Commission or its 

representatives may take pursuant to this Subsection. 

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VII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, 

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

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

restrained and enjoined from directly or indirectly failing to provide sufficient 

customer information to enable the Commission to efficiently administer consumer 

redress. Defendant represents that it has provided this redress information to the 

Commission. If a representative of the Commission requests in writing any 

information related to redress, Defendant must provide it, in the form prescribed by 

the Commission, within 14 days. 

VIII. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendant obtains acknowledgments of 

receipt of this Order: 

A. 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 3 years after entry of this Order, Defendant must deliver a copy of this 

Order to: (1) all principals, officers, directors, and LLC managers and 

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members; (2) all employees, agents, and representatives with managerial 

responsibilities for 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 Defendant delivered a copy of this 

Order, Defendant must obtain, within 60 days, a signed and dated 

acknowledgment of receipt of this Order. 

IX. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendant makes timely submissions to 

the Commission: 

A. 180 days after entry of this Order, Defendant must submit a compliance 

report, sworn under penalty of perjury. 

1. 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 Defendant’s businesses by all of their 

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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; (d) describe in detail whether and how 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 10 years after entry of this Order, Defendant must submit a compliance 

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

following: 

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

contact; or (b) the structure of 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. Defendant must submit to the Commission notice of the filing of any 

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bankruptcy petition, insolvency proceeding, or similar proceeding by or 

against Defendant within 14 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 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. Prog Leasing, LLC. 

X. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendant must create certain records for 

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

Specifically, Defendant for any business that Defendant is a majority owner or 

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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 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 all submissions to the Commission; 

E. a copy of each unique advertisement, sales script, or other marketing 

material; 

F. a copy of each unique application version; 

G. a copy of each unique version of consumer contracts or agreements; 

H. copies of any internal compliance policies and procedures concerning the 

subject matter of the Order; 

I. copies of any internal compliance reports concerning the subject matter of 

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the Order, including any compliance cases, field examination surveys, and 

forensic testing results; and 

J. copies of any reports showing the results of any vetting and monitoring, 

including the vetting and monitoring required by Section III of this Order. 

XI. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Defendant’s compliance with this Order, including 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, 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 Defendant. Defendant must permit 

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representatives of the Commission to interview any employee or other 

person affiliated with 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 

Defendant or any individual or entity affiliated with Defendant, 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. 

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 day of , 2020. 

UNITED STATES DISTRICT JUDGE 

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SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

_/s/ Thomas Widor_________________ Date: _4/20/20_________ 

Thomas J. Widor, Esq. 

Miya Tandon, Esq. 

Samuel Jacobson, Esq. 

Brittany Frassetto, Esq. 

Federal Trade Commission 

600 Pennsylvania Avenue, NW 

Mail Drop CC-10232 

Washington, DC 20580 

Phone: 202-326-3039; 202-326-2351; 202-326-3251; 202-326-2774 

Fax: 202-326-3768 

Email: twidor@ftc.gov; mtandon@ftc.gov; sjacobson@ftc.gov; bfrassetto@ftc.gov 

__/s/ Robin Rock____________________ Date: __4/20/20________ 

Robin L. Rock, Esq., GA Bar No. 632529 

Federal Trade Commission 

225 Peachtree Street, NE, Suite 1500 Atlanta, 

GA 30303 

Phone: (404) 656-1368 

Fax: (404) 656-1379 

Email: rrock@ftc.gov 

ATTORNEYS FOR PLAINTIFF FEDERAL 

TRADE COMMISSION 

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FOR DEFENDANT: 

Norman Armstrong, Jr., Esq. 

King & Spaulding, LLP 

1 700 Pennsylvania A venue, NW 

Suite 200 

Washington, D.C. 20006 

COUNSEL FOR DEFENDANT 

PROG LEASING, LLC 

Marvin Fentress 

Date: I/ 2~ /LO 

Date: 

CHIEF COMPLIANCE OFFICER and GENERAL COUNSEL 

PROG LEASING, LLC 

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