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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.209 Page 1 of 20 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

v. 

INSTANT CHECKMATE, LLC; 

TRUTHFINDER, LLC; THE CONTROL 

GROUP MEDIA COMPANY, LLC; 

INTELICARE DIRECT, LLC; and 

PUBREC, LLC, 

Defendants. 

Case No.: 23-CV-1674 TWR (MSB) 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION, CIVIL 

PENALTY JUDGMENT, AND 

OTHER RELIEF AS TO 

DEFENDANTS INSTANT 

CHECKMATE, LLC, 

TRUTHFINDER, LLC, THE 

CONTROL GROUP MEDIA 

COMPANY, LLC, INTELICARE 

DIRECT, LLC, AND PUBREC, LLC 

(ECF No. 7) 

Presently before the Court is the Joint Motion for Entry of Stipulated Order for 

Permanent Injunction, Monetary Judgment, and Other Relief (ECF No. 7, “Joint Mot.”) 

filed by Plaintiff the Federal Trade Commission (the “Commission” or “FTC”) and the 

Settling Defendants Instant Checkmate, LLC; TruthFinder, LLC; The Control Group 

Media Company, LLC; Intelicare Direct, LLC; and PubRec LLC. On September 11, 2023, 

the Commission filed its Complaint for Permanent Injunction, Other Equitable Relief, and 

Civil Penalties and Demand for Jury Trial (ECF No. 1, “Complaint”) pursuant to Sections 

13(b) and 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b) 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.210 Page 2 of 20 

and 56(a)(1), and Section 621(a) of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. 

§ 1681s(a). The Settling Defendants waived service of the Summons and the Complaint. 

Through counsel, the Commission and the Settling Defendants have stipulated to the entry 

of this Stipulated Order for Permanent Injunction, Civil Penalty Judgment, and Other 

Relief (the “Stipulated Order”) to resolve all matters in dispute in this action between them. 

Having reviewed the Parties’ filings and pursuant to the Parties’ Stipulation, the Court 

GRANTS the Joint Motion and ORDERS as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive and unfair 

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

of the FCRA, 15 U.S.C. §§ 1681–1681x, in the promotion and sale of background reports. 

3. The Settling Defendants neither admit nor deny any of the allegations in the 

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

action, the Settling Defendants admit the facts necessary to establish jurisdiction. 

4. The Settling 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 Stipulated Order, and agree to bear their own costs and attorneys’ fees. 

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

otherwise challenge or contest the validity of this Stipulated Order. 

DEFINITIONS 

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

A. “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: 

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, 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.211 Page 3 of 20 

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. 

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. “Close Proximity” means that the disclosure is very near the triggering 

representation. For example, a disclosure made through a hyperlink, pop-up, interstitial, 

or other similar technique is not in close proximity to the triggering representation. 

C. “Consumer Report” means any written, oral, or other communication of any 

information by a Consumer Reporting Agency bearing on a consumer’s credit worthiness, 

credit standing, credit capacity, character, general reputation, personal characteristics, or 

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mode of living, which is used or expected to be used or collected in whole or in part for a 

Permissible Purpose. 

D. “Consumer Reporting Agency” means any Person which, for monetary fees, 

dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the 

practice of assembling or evaluating consumer credit information or other information on 

consumers for the purpose of furnishing Consumer Reports to third parties, and which uses 

any means or facility of interstate commerce for the purpose of preparing or furnishing 

Consumer Reports. 

E. “Covered Record” means any written or oral communication that includes 

any of the following information from or about an individual consumer: (1) sex offender 

status, (2) arrest records, (3) bankruptcy records, (4) liens, (5) eviction records, (6) civil 

and criminal court record information, and (7) traffic tickets or citations. 

F. “Covered Report” means any written, oral, or other communication of any 

information on consumers that is assembled or evaluated in whole or in part by any Person 

that bears on a consumer’s credit worthiness, credit standing, credit capacity, character, 

general reputation, personal characteristics, or mode of living. 

G. “Permissible Purpose” means: 

1. In response to the order of a court having jurisdiction to issue such an 

order or a subpoena issued in connection with proceedings before a Federal grand 

jury; or 

2. In accordance with the written instructions of the consumer to whom it 

relates; or 

3. To a Person that the Consumer Reporting Agency has reason to believe: 

a. intends to use the information in connection with a credit 

transaction involving the consumer on whom the information is to be 

furnished and involving the extension of credit to, or review or collection of 

an account of, the consumer; or 

b. intends to use the information for employment purposes; or 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.213 Page 5 of 20 

c. intends to use the information in connection with the 

underwriting of insurance involving the consumer; or 

d. intends to use the information in connection with a determination 

of the consumer’s eligibility for a license or other benefit granted by a 

governmental instrumentality required by law to consider an applicant’s 

financial responsibility or status; or 

e. intends to use the information, as a potential investor or servicer, 

or current insurer, in connection with a valuation of, or an assessment of the 

credit or prepayment risks associated with, an existing credit obligation; or 

f. otherwise has a legitimate business need for the information: 

i. in connection with a business transaction that is initiated 

by the consumer, including tenant screening; or 

ii. to review an account to determine whether the consumer 

continues to meet the terms of the account; or 

g. executive departments and agencies in connection with the 

issuance of government-sponsored individually billed travel charge cards; or 

4. In response to a request by the head of a State or local child support 

enforcement agency (or a State or local government official authorized by the head 

of such an agency), if the Person making the request certifies to the Consumer 

Reporting Agency that: 

a. the Consumer Report is needed for the purpose of establishing 

an individual’s capacity to make child support payments; determining the 

appropriate level of such payments; or enforcing a child support order, award, 

agreement, or judgment; 

b. the parentage of the consumer for the child to which the 

obligation relates has been established or acknowledged by the consumer in 

accordance with State laws under which the obligation arises (if required by 

those laws); and 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.214 Page 6 of 20 

c. the Consumer Report will be kept confidential, will be used 

solely for a purpose described in subparagraph 4(a). above, and will not be 

used in connection with any other civil, administrative, or criminal 

proceeding, or for any other purpose; or 

5. To an agency administering a State plan under Section 454 of the Social 

Security Act, 42 U.S.C. § 654, for use to set an initial or modified child support 

award; or 

6. To the Federal Deposit Insurance Corporation or the National Credit 

Union Administration as part of its preparation for its appointment or as part of its 

exercise of powers, as conservator, receiver, or liquidating agent for an insured 

depository institution or insured credit union under the Federal Deposit Insurance 

Act or the Federal Credit Union Act, or other applicable Federal or State law, or in 

connection with the resolution or liquidation of a failed or failing insured depository 

institution or insured credit union, as applicable. 

H. “Person” means any individual, partnership, corporation, trust, estate, 

cooperative, association, government or governmental subdivision or agency, or other 

entity. 

I. “Settling Defendants” means Instant Checkmate, LLC, TruthFinder, LLC, 

The Control Group Media Company, LLC, Intelicare Direct, LLC, and PubRec, LLC, 

individually, collectively, or in any combination, and their successors and assigns. 

J. “Unexpected Material Connection” means any relationship that might 

materially affect the weight or credibility of a review or endorsement and that would not 

reasonably be expected by consumers. 

ORDER 

I. FAIR CREDIT REPORTING ACT MONITORING PROGRAM 

IT IS ORDERED that the Settling Defendants must not advertise, market, promote, 

or offer for sale any Covered Report unless they first establish and implement, and 

thereafter maintain, a comprehensive monitoring program (hereinafter, the “Monitoring 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.215 Page 7 of 20 

Program”) to regularly review, assess, and determine the extent to which each Settling 

Defendant is operating in whole or in part as a Consumer Reporting Agency, and, if so, to 

regularly review, assess, and determine the extent to which the Settling Defendant is 

engaged in business activities prohibited by Section II of this Stipulated Order, entitled 

“Prohibited Business Activities.” To satisfy this requirement, each Settling Defendant or 

the Settling Defendants together must, at a minimum: 

A. Document in writing the content, implementation, and maintenance of the 

Monitoring Program; 

B. Designate a qualified employee or employees to coordinate and be responsible 

for the Monitoring Program; 

C. Assess and document, prior to the inception of the Monitoring Program and 

at least once every twelve (12) months thereafter, the extent to which the Covered Reports 

promoted or offered for sale by the Settling Defendants are Consumer Reports, and the 

extent to which the Settling Defendants are acting as a Consumer Reporting Agency, 

including the extent to which users regularly use Covered Reports provided by the Settling 

Defendants for Permissible Purposes. Such assessment shall include, at a minimum, a 

review of: 

1. All products and services offered or sold; 

2. Marketing and advertising materials used to promote, offer, or sell 

those products and services (including but not limited to any website content, 

advertisements, blog posts, testimonials, published statements, customer service 

scripts, search engine advertising keywords, push notifications, and any method or 

device used to direct Persons to a website); 

3. Any measures to prevent users from using a Settling Defendant’s 

products or services for Permissible Purposes (e.g., disclaimers, certifications, 

account terminations, user verification, or blocking) and available evidence or 

information relating to the effectiveness of those measures; 

/ / / 

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Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.216 Page 8 of 20 

4. All users whom the Settling Defendants have reason to believe have 

used or intended to use one or more Covered Reports for a Permissible Purpose, all 

actions taken by the Settling Defendants to permanently prevent each such user from 

accessing Covered Reports, and the dates on which such actions were effective; and 

5. Any evidence of or information about how users of the Settling 

Defendants’ products or services use, intend to use, or expect to use those products 

or services (including but not limited to consumer correspondence, consumer 

reviews, consumer complaints, and consumer testimonials); 

D. Design, implement, maintain, and document compliance with safeguards to 

assure that the Settling Defendants do not sell, offer, or make available Covered Reports 

for a Permissible Purpose, unless the requirements of this Stipulated Order that would 

apply to a Consumer Report are satisfied as to that product or service. Such safeguards 

must include, at a minimum: 

1. Training of all officers, employees, and advertising affiliates, and all 

agents and independent contractors to the extent that their job duties are relevant to 

the content of this Stipulated Order, at onboarding and at least every twelve (12) 

months thereafter, on this Stipulated Order’s requirements, activities that would 

violate those requirements, and relevant specific job duties relating to compliance 

with this Stipulated Order; 

2. Refraining from advertising, marketing, promoting, describing, or 

offering for sale any product or service that involves Covered Reports as suitable or 

appropriate for any Permissible Purpose, unless the requirements of this Stipulated 

Order that would apply to a Consumer Report are satisfied as to that product or 

service; 

3. Reviewing, prior to their publication or implementation, of all 

marketing and advertising materials used by the Settling Defendants to offer, 

promote, or sell those products and services (including but not limited to any 

advertisements, blog posts, testimonials, published statements, customer service 

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scripts, search engine advertising keywords, push notifications, and any method or 

device used to direct Persons to a website); 

4. Requiring affiliate marketing partners by contract to obtain prior 

written approval from the Settling Defendants for all unique advertising and 

marketing copy used to offer, promote, or sell Covered Reports; 

5. Clearly and Conspicuously disclosing permissible and impermissible 

uses of any Covered Reports under this Stipulated Order; 

6. Clearly and Conspicuously requiring each user, before the purchase of 

any product or service, prior to running any people search or background report 

search, and annually thereafter, to certify: 

i. that the user will not use Covered Reports to make decisions 

about or in connection with hiring, promoting, reassigning, or continuing to 

employ any person, including current or potential volunteers and household 

employees such as childcare workers, contractors, or home health aides; 

ii. that the user will not use Covered Reports to make decisions 

about or in connection with renting or selling a house, apartment, or other 

residential property to any person; 

iii. that the user will not use Covered Reports to make decisions 

about or in connection with lending money or extending credit to any person; 

iv. that the user will not use Covered Reports in connection with the 

underwriting of insurance; and 

v. that the user will not use Covered Reports for any purpose related 

to any eligibility determination about a person. 

7. Procedures to onboard users, including requiring users to agree to 

contracts or terms and conditions prohibiting the use of Covered Reports provided 

by the Settling Defendants for any Permissible Purpose and Clear and Conspicuous 

disclosure of such terms and conditions; 

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8. Implementing user access controls, such as controls on the number of 

Covered Reports obtained per day and investigation of accounts with excessive or 

suspicious patterns of obtaining Covered Reports; 

9. Conducting ongoing reviews, tests, or audits of: 

i. the ways that users use or expect to use the Settling Defendants’ 

products or services; 

ii. the extent to which each Settling Defendant’s officers, 

employees, agents, advertising affiliates, and independent contractors have 

implemented and are complying with the Monitoring Program; and 

iii. the effectiveness of the Monitoring Program at detecting and 

preventing use of Covered Reports for Permissible Purposes; and 

10. Implementing and complying with procedures to actively identify and 

investigate users who are using, have used, or likely intend to use Covered Reports 

for one or more Permissible Purposes and to permanently prevent those users from 

accessing Covered Reports within three (3) business days after a Settling Defendant 

becomes aware of the user’s use of Covered Reports for a Permissible Purpose; and 

E. Evaluate and adjust the Monitoring Program in light of any changes to a 

Settling Defendant’s operations or business arrangements, or any other circumstance that 

the Settling Defendants know or have reason to know may materially affect the Monitoring 

Program’s effectiveness. At a minimum, each Settling Defendant must evaluate the 

Monitoring Program every twelve (12) months and implement modifications based on the 

results; and 

F. At least once every twelve (12) months, provide: (1) the written program 

required by Subsection I.A and any evaluations thereof or updates thereto; and (2) the 

assessments and documentation required by Subsection I.C to the Settling Defendants’ 

board of directors or governing body or, if no such board or equivalent governing body 

exists, to a senior officer responsible for regulatory compliance. 

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II. PROHIBITED BUSINESS ACTIVITIES 

IT IS FURTHER ORDERED that the Settling Defendants; their officers, agents, 

employees; and all other Persons in active concert or participation with any of them, who 

receive actual notice of this Stipulated Order, whether acting directly or indirectly, in 

connection with operating as a Consumer Reporting Agency, are HEREBY 

PERMANENTLY RESTRAINED AND ENJOINED FROM: 

A. Failing to maintain reasonable procedures designed to limit the furnishing of 

Consumer Reports to Persons with Permissible Purposes to receive them. Such reasonable 

procedures shall require that: (1) prospective users of the information identify themselves, 

certify the purposes for which the information is sought, and certify that the information 

will be used for no other purpose; and (2) the Settling Defendants make a reasonable effort 

to verify the identity of a new prospective user and the uses certified by such prospective 

user prior to furnishing such user a Consumer Report; 

B. Failing to maintain reasonable procedures to assure the maximum possible 

accuracy of the information concerning the individual about whom the report relates; 

C. Failing to provide a FCRA notice to users of Consumer Reports (attached 

hereto as Attachment A to this Stipulated Order) to any person to whom a Consumer 

Report is provided by the Settling Defendants; 

D. In offering, selling, publishing, or making available Consumer Reports for 

employment purposes, failing to: 

1. obtain a certification that the user has complied with consumer notice 

requirements, including: (i) the user has provided a standalone written disclosure to the 

consumer that a Consumer Report may be obtained; (ii) obtained the written consent of the 

consumer to obtain a Consumer Report; and, (iii) prior to taking any adverse action based 

in whole or in part on the report, will provide the consumer with a copy of the Consumer 

Report and a written description of the consumer’s rights under the FCRA (attached hereto 

as Attachment B to this Stipulated Order); 

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2. obtain a certification that the user will not use the information from the 

Consumer Report in violation of any applicable Federal or State equal employment 

opportunity law or regulation; and 

3. provide with the Consumer Report, unless it has been previously 

provided, a summary of the consumer’s rights under the FCRA (attached hereto as 

Attachment B to this Stipulated Order). 

E. Furnishing a Consumer Report to any Person whom the Settling Defendants 

do not have reason to believe has a Permissible Purpose to receive the Consumer Report; 

and 

F. Failing to conduct a reasonable reinvestigation, free of charge, if a consumer 

disputes the completeness or accuracy of any item of information contained in a Consumer 

Report about that consumer that is offered, sold, published, or made available by the 

Settling Defendants and record the current status of the disputed information in, or delete 

the disputed information from, any Consumer Report that is offered, sold, published, or 

made available by the Settling Defendants before the end of the 30-day period beginning 

on the date on which the Settling Defendants receive notice of the dispute. 

III. PROHIBITION AGAINST MISREPRESENTATIONS TO CONSUMERS 

REGARDING COVERED REPORTS 

IT IS FURTHER ORDERED that the Settling Defendants; their officers, agents, 

employees; and all other Persons in active concert or participation with any of them, who 

receive actual notice of this Stipulated Order, whether acting directly or indirectly, in 

connection with advertising, marketing, promoting, or offering any product or service, are 

PERMANENTLY RESTRAINED AND ENJOINED from misrepresenting, expressly 

or by implication: 

A. The effect of utilizing any mechanism to remove or flag as inaccurate certain 

items of information in Covered Reports; 

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B. The extent to which, or the probability that, any consumer has or may have 

Covered Records, the Settling Defendants have found Covered Records, or that there are 

possible or probable Covered Records; 

C. The accuracy or completeness of the information contained in the Covered 

Reports; 

D. That a traffic ticket or a traffic citation in a Covered Report is a criminal or 

arrest record; or 

E. Any other fact concerning Covered Records or Covered Reports or any of the 

information therein, such as their accuracy, nature, characteristics, or content; or any 

restrictions, limitations, or conditions on users’ ability to access, alter, use, correct, or 

delete them. 

IV. INJUNCTION CONCERNING MISREPRESENTATIONS IN VIOLATION 

OF SECTION 5 OF THE FTC ACT 

IT IS FURTHER ORDERED that the Settling Defendants; their officers, agents, 

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

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

indirectly, in connection with promoting or offering for sale any good or service are 

PERMANENTLY RESTRAINED AND ENJOINED from making, or assisting others 

in making, any misrepresentation, expressly or by implication, about 

A. What a user can do or achieve with the product or service; or 

B. The status of any person providing a review or endorsement of a good or 

service, including a misrepresentation that the reviewer or endorser is an unbiased or 

ordinary user of the good or service. 

V. REQUIRED DISCLOSURES OF UNEXPECTED MATERIAL 

CONNECTIONS 

IT IS FURTHER ORDERED that the Settling Defendants; their officers, agents, 

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

receive actual notice of this Stipulated Order, whether acting directly or indirectly, in 

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connection with promoting or offering for sale any Covered Report or related good or 

service, are PERMANENTLY RESTRAINED AND ENJOINED from making, or 

assisting others in making, any representation, expressly or by implication, about any 

reviewer or endorser of such good or service without disclosing, Clearly and 

Conspicuously, and in Close Proximity to that representation, any Unexpected Material 

Connection between such reviewer or endorser and (1) the Settling Defendants; or (2) any 

other individual or entity affiliated with the good or service. 

VI. MONITORING OF ENDORSERS 

IT IS FURTHER ORDERED that within ninety (90) days of the date of entry of 

this Stipulated Order, the Settling Defendants; their officers, agents, employees, and 

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

receive actual notice of this Stipulated Order, whether acting directly or indirectly, in 

connection with promoting or offering for sale any Covered Report or related good or 

service, must take steps sufficient to ensure compliance with Subsection B of the Section 

of this Stipulated Order titled Injunction Concerning Misrepresentations in Violation of 

Section 5 of the FTC Act and the Section of this Stipulated Order titled Required 

Disclosures of Unexpected Material Connections. Such steps shall include, at a minimum: 

A. Providing each reviewer or endorser of any Covered Report or related good 

or service with a clear statement of his or her responsibilities to disclose Clearly and 

Conspicuously and in Close Proximity to the endorsement, in any review, online video, 

social media posting, or other communication endorsing the good or service, the reviewer 

or endorser’s Unexpected Material Connection to the Settling Defendants, or any other 

individual or entity affiliated with the good or service; and obtaining from each such 

reviewer or endorser a signed and dated statement acknowledging receipt of that statement 

and expressly agreeing to comply with it. For the purpose of this subsection, the term 

“signed” may include a verifiable electronic or digital form of signature, to the extent that 

such form of signature is recognized as a valid signature under applicable Federal law or 

State contract law; 

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A. 

B. 

Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.223 Page 15 of 20 

B. Establishing, implementing, and thereafter maintaining a system to monitor 

and review the representations and disclosures of reviewers and endorsers with any 

Unexpected Material Connection to the Settling Defendants, or any other individual or 

entity affiliated with the good or service to ensure compliance with the Subsection B of the 

Section of this Stipulated Order titled Injunction Concerning Misrepresentations in 

Violation of Section 5 of the FTC Act and the Section of this Stipulated Order titled 

Required Disclosures of Unexpected Material Connections. The system shall include, at a 

minimum, monitoring and reviewing the endorsers’ reviews, online videos, and social 

media postings; 

C. In the event an Unexpected Material Connection is not disclosed, contacting 

each reviewer or endorser to request such a disclosure. If such disclosure is not made or 

the review or endorsement is not removed, the Settling Defendants shall contact the 

platform on which the review or endorsement appears requesting its removal; and 

D. Creating reports showing the results of the monitoring required by 

Subsections B and C of this Section. 

VII. MONETARY JUDGMENT FOR CIVIL PENALTY 

IT IS FURTHER ORDERED that: 

Judgment in the amount of Five Million, Eight Hundred Thousand, Dollars 

($5,800,000) is entered in favor of the Commission against the Settling Defendants, jointly 

and severally, as a civil penalty. 

The Settling Defendants are ordered to pay to the Commission, by making 

payment to the Treasurer of the United States, Five Million, Eight Hundred Thousand, 

Dollars ($5,800,000), which, as the Settling Defendants stipulate, their undersigned 

counsel holds in escrow for no purpose other than payment to the Commission. Such 

payment must be made within seven (7) days of entry of this Stipulated Order by electronic 

fund transfer in accordance with instructions previously provided by a representative of the 

Commission. 

/ / / 

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A. 

B. 

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VIII. ADDITIONAL MONETARY PROVISIONS 

A. The Settling Defendants relinquish dominion and all legal and equitable right, 

title, and interest in all assets transferred pursuant to this Stipulated Order and may not seek 

the return of any assets. 

B. The Settling Defendants acknowledge that their Taxpayer Identification 

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

Settling Defendants must submit to the Commission, may be used for collecting and 

reporting on any delinquent amount arising out of this Stipulated Order, in accordance with 

31 U.S.C. § 7701. 

IX. COOPERATION 

IT IS FURTHER ORDERED that the Settling 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. 

Such Settling Defendants must provide truthful and complete information, evidence, and 

testimony. Such Settling Defendants must cause the 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 five (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. 

X. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that the Settling Defendants obtain 

acknowledgments of receipt of this Stipulated Order: 

Each Defendant, within seven (7) days of entry of this Stipulated Order, must 

submit to the Commission an acknowledgment of receipt of this Stipulated Order sworn 

under penalty of perjury. 

For fifteen (15) years after entry of this Stipulated Order, each Settling 

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

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

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C. 

A. 

B. 

Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.225 Page 17 of 20 

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

agents and representatives who participate in conduct related to the subject matter of the 

Stipulated 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 Stipulated Order for current personnel. For all others, delivery must 

occur before they assume their responsibilities. 

From each individual or entity to which a Settling Defendant delivered a copy 

of this Stipulated Order, that Defendant must obtain, within thirty (30) days, a signed and 

dated acknowledgment of receipt of this Stipulated Order. 

XI. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that the Settling Defendants make timely 

submissions to the Commission: 

One (1) year after entry of this Stipulated Order, each Settling Defendant must 

submit a compliance report, sworn under penalty of perjury: 

1. Each Settling 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; (d) describe in detail whether and how that Defendant 

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

Order Acknowledgment obtained pursuant to this Stipulated Order, unless previously 

submitted to the Commission. 

For fifteen (15) years after entry of this Stipulated Order, each Settling 

Defendant must submit a compliance notice, sworn under penalty of perjury, within 

fourteen (14) days of any change in the following: 

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C. 

D. 

E. 

Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.226 Page 18 of 20 

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

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

ownership interest in or controls directly or indirectly that may affect compliance 

obligations arising under this Stipulated 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 Stipulated Order. 

Each Settling 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 fourteen (14) days of its filing. 

Any submission to the Commission required by this Stipulated 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. 

Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Stipulated 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: “Federal Trade Commission v. Instant Checkmate, LLC et 

al.” 

XII. RECORDKEEPING 

IT IS FURTHER ORDERED that the Settling Defendants must create certain 

records for fifteen (15) years after entry of the Stipulated Order, and retain each such record 

for five (5) years. Specifically, the Settling Defendants must create and retain the following 

records: 

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A. 

B. 

C. 

D. 

E. 

F. 

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

Personnel records showing, for each person providing services in relation to 

any aspect of this Stipulated Order, 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; 

Records of all consumer complaints and refund requests related to the subject 

matter of this Stipulated Order, whether received directly or indirectly, such as through a 

third party, and any response; 

All unique sales or customer service scripts, form letters or emails, 

advertisements, or other marketing materials related to the subject matter of this Stipulated 

Order; 

All employee manuals and training materials related to the subject matter of 

this Stipulated Order; and 

All records necessary to demonstrate full compliance with each provision of 

this Stipulated Order, including all submissions to the Commission. 

XIII. COMPLIANCE MONITORING 

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

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

required by this Stipulated Order: 

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

of the Commission, each Settling 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 the 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 Stipulated Order, the Commission is authorized 

to communicate directly with each Settling Defendant. The Settling Defendants must 

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~l~'i°4~ 

Honorable Todd W. Robinson 

United StaJtes District Judge 

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permit representatives of the Commission to interview any employee or other Person 

affiliated with any Settling 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 the Settling 

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

necessity of identification or prior notice. Nothing in this Stipulated 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. 

XIV. RETENTION OF JURISDICTION 

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

purposes of construction, modification, and enforcement of this Stipulated Order. 

Specifically, in accordance with the Parties’ Consent to Jurisdiction by a United States 

Magistrate Judge and Order of Reference, (see ECF No. 16), the Honorable Michael S. 

Berg, United States Magistrate Judge, SHALL RETAIN continuing and exclusive 

jurisdiction over the Parties and all matters relating to the litigation and settlement 

agreement, including the administration, interpretation, construction, effectuation, 

enforcement, and consummation of the agreement and this Stipulated Order. 

IT IS SO ORDERED. 

Dated: October 11, 2023 

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