UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF UTAH, CENTRAL DIVISION 

FEDERAL TRADE COMMISSION, and 

UTAH DIVISION OF CONSUMER 

PROTECTION, 

Plaintiffs, 

vs. 

ZURIXX, LLC, et al. 

Defendants. 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

MONET ARY JUDGMENT 

Case No. 2:19-CV-00713-DAK-DAO 

District Judge Dale A. Kimball 

Magistrate Judge Daphne A. Oberg 

Plaintiffs, the Federal Trade Commission ("Commission" or "FTC") and the Utah 

Division of Consumer Protection ("Division") ( collectively "Plaintiffs"), filed their Complaint for 

Permanent Injunction and Other Equitable Relief, subsequently amended as Second Amended 

Complaint for Permanent Injunction and Other Equitable Relief, (as amended, "Complaint") 

pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 

§§ 53(b) and 57b, the Consumer Review Fairness Act ("CRFA"), 15 U.S.C. § 45b, the 

Telemarketing and Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"), 15 U.S.C. 

§§ 6101-6108, the Telemarketing Sales Rule ("TSR"), 16 C.F.R. Part 310, the Utah Consumer 

Sales Practices Act ("UCSPA"), Utah Code § 13-11-1 et seq., the Business Opportunity 

Disclosure Act ("BODA"), Utah Code§ 13-15-1 et seq., and the Telephone Fraud Prevention Act 

("TFPA"), Utah Code§ 13-26-1 et seq. Plaintiffs and Defendants stipulate to the entry of this 

Stipulated Order for Permanent Injunction and Monetary Judgment ("Order") to resolve all 

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matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint alleges that Corporate Defendants and Individual Defendants participated 

in deceptive and unlawful acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a), the CRF A, 15 U.S.C. § 45, the Telemarketing Sales Rule ("TSR"), 16 C.F.R. Part 310, 

the UCSPA, Utah Code§ 13-11-1 et seq., the BODA, Utah Code§ 13-15-1 et seq., and the 

TFPA, Utah Code § 13-26-1 et seq., in the marketing and sale ofreal estate investment products 

and services. The Complaint further alleges that Relief Defendant was unjustly enriched when 

she received ill-gotten proceeds derived from the deceptive and unlawful acts or practices alleged 

in the Complaint. 

3. Defendants neither admit nor deny any of the allegations in the Complaint, except as 

specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to Justice Act, 28 

U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and agree 

to bear their own costs and attorney fees. 

5. Defendants and Plaintiffs 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: 

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A. "Business Coaching Program" means any product or service, including any program or 

plan, that is represented, expressly or by implication, to train or teach a consumer how to 

establish, operate, or improve a business. 

B. "Covered Communication" means a written, oral, or pictorial review, performance 

assessment, or other similar analysis of goods or services, including conduct related to the goods 

or services. 

C. "Defendants" means all of the Individual Defendants, the Corporate Defendants, the 

Relief Defendant, the JSS Trustee Defendant individually, collectively, or in any combination. 

1. "Corporate Defendants" means Zurixx, LLC, Brand Management Holdings, 

LLC, CAC Investment Ventures, LLC-Utah, CAC Investment Ventures, LLC-Puerto 

Rico, Carlson Development Group, LLC-Utah, Carlson Development Group, LLC-Puerto 

Rico, CJ Seminar Holdings, LLC, Dorado Marketing and Management, LLC, Zurixx 

Financial, LLC-Utah, Zurixx Financial, LLC-Puerto Rico, JSS Investment Ventures, LLC, 

JSS Trust, and their subsidiaries, successors and assigns. 

2. "Individual Defendants" means Cristopher A. Cannon, James M. Carlson, and 

Jeffrey D. Spangler. 

3. "Relief Defendant" means Stephenie J. Spangler. 

4. "JSS Trustee Defendant" means Gerald D. Spangler, as Trustee for the JSS Trust. 

D. "Document" is synonymous in meaning and equal in scope to the usage of "document" 

and "electronically stored infonnation" in Federal Rule of Civil Procedure 34(a), and includes 

writings, drawings, graphs, charts, photographs, sound and video recordings, images, Internet 

sites, web pages, websites, electronic correspondence, including e-mail and instant messages, 

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contracts, accounting data, advertisements, FTP Logs, Server Access Logs, books, written or 

printed records, handwritten notes, telephone logs, telephone scripts, receipt books, ledgers, 

personal and business canceled checks and check registers, bank statements, appointment books, 

computer records, customer or sales databases and any other electronically stored information, 

including Documents located on remote servers or cloud computing systems, and other data or 

data compilations from which infonnation can be obtained directly or, if necessary, after 

translation into a reasonably usable form. A draft or non-identical copy is a separate document 

within the meaning of the term. 

E. "Earnings Claim" means any representation, specific or general, about income, revenues, 

financial gains, percentage gains, profit, net profit, gross profit, or return on investment. 

F. "Person" means any natural person or any entity, corporation, partnership, or association 

of persons. 

G. "Real Estate Coaching Program" means any product or service, including any program 

or plan, that is represented, expressly or by implication, to train or teach a consumer how to make 

money through investing in or buying and selling real estate. 

H. "Receiver" means the equity receiver David Broadbent and any deputy receivers that shall 

be named by the Receiver. 

I. "Review-Limiting Contract Term" means a standardized contract term that: prohibits or 

restricts the ability of a person who is a party to the contract to engage in a Covered 

Communication; imposes or threatens to impose a penalty or fee against a person who is a party 

to the contract for engaging in a Covered Communication; or transfers, or requires a person who 

is a party to the contract to transfer, to any other person any intellectual property rights in a 

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Covered Communication, with the exception of a non-exclusive license to lawfully use a Covered 

Communication about a Defendant's goods or services. 

J. "Telemarketing" means any plan, program, or campaign which is conducted to induce 

the purchase of goods or services by use of one or more telephones, and which involves a 

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

ORDER 

I. BAN ON MARKETING OR SELLING REAL ESTATE COACHING PROGRAMS 

AND BUSINESS COACIDNG PROGRAMS 

IT IS ORDERED that the Corporate Defendants and Individual Defendants are 

pennanently restrained and enjoined from advertising, marketing, distributing, promoting, 

offering for sale, or selling, or assisting in the advertising, marketing, distributing, promoting, 

offering for sale, or selling, of any Real Estate Coaching Program or any Business Coaching 

Program. 

II. PROHIBITIONS REGARDING TELEMARKETING 

IT IS FURTHER ORDERED that the Corporate Defendants and Individual Defendants, 

their officers, agents, employees, attorneys, and all other Persons in active concert or participation 

with them, who receive actual notice of this Order by personal service or otherwise, whether 

acting directly or indirectly, in connection with Telemarketing of any goods or services are 

permanently restrained and enjoined from: 

A. misrepresenting risk, liquidity, earnings potential, or profitability of goods or services 

that are the subject of a sales offer; 

B. misrepresenting any material aspect of the performance, efficacy, nature, or central 

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characteristics of goods or services that are the subject of a sales offer; 

C. making a false or misleading statement to induce any person to pay for goods or 

services; and 

D. violating any provision of the TSR, 16 C.F .R. Part 310, a copy of which is attached as 

Attachment A, and the Telephone Fraud Prevention Act ("TFPA"), Utah Code,§ 13-

26-1 et seq., a copy of which is attached as Attachment B. 

III. PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS FURTHER ORDERED that the Corporate Defendants and Individual Defendants, 

their officers, agents, employees, attorneys, and all other Persons in active concert or participation 

with them, who receive actual notice of this Order by personal service or otherwise, whether 

acting directly or indirectly, in co1mection with the advertising, marketing, promoting, offering 

for sale, or sale, of any goods or services, are permanently restrained and enjoined from: 

A. Making any Earnings Claim, unless the Earnings Claim is truthful and not 

misleading, and, at the time such claim is made, Corporate Defendants and Individual 

Defendants: (1) have a reasonable basis for the claim; (2) have in their possession written 

materials that substantiate the claim; and (3) make the written substantiation available upon 

request to the consumer, potential purchaser or investor, the Receiver, and Plaintiffs; 

B. Misrepresenting or assisting others in misrepresenting, expressly or by implication, 

any other fact material to consumers concerning any good or service, such as: the total costs; 

associated financing or credit; refund policy; any material restrictions, limitations, or conditions; 

or any material aspect of its performance, efficacy, nature, or central characteristics. 

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C. Violating any provision of the BODA, Utah Code§ 13-15-1 et seq., a copy of 

which is attached as Attachment C. 

IV. INJUNCTION AGAINST SUPPRESSING COVERED 

COMMUNICATIONS THROUGH CONTRACT TERMS 

IT IS FURTHER ORDERED that the Corporate Defendants and Individual Defendants, 

their officers, agents, employees, attorneys, and all other Persons in active concert or participation 

with them, who receive actual notice of this Order by personal service or otherwise, whether 

acting directly or indirectly, in connection with the advertising, marketing, promoting, offering 

for sale, or sale of any goods or services, are permanently restrained and enjoined from offering, 

attempting to enforce, or asserting the validity of, any Review-Limiting Contract Term. 

Provided, however, that nothing in this Section shall: require a Defendant to publish or 

host the content of any person; affect any other legal duty of a party to a contract; or affect any 

cause of action arising from the breach of such duty. 

V. PROHIBITION ON RELEASE OF CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that the Corporate Defendants and Individual Defendants, 

their officers, agents, employees, 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 hereby permanently restrained and enjoined from directly or indirectly: 

A. Selling, renting, leasing, transferring, or otherwise disclosing, customer 

information including the name, address, birth date, telephone number, email address, payment 

card number, bank account number, Social Security number, or other financial or identifying 

information of any person that any Defendant obtained in connection with any activity that 

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pertains to the subject matter of this Order; 

B. Benefitting from or using the name, address, birth date, telephone number, email 

address, credit card number, bank account number, Social Security number, or other financial or 

identifying information or any data that enables access to a customer's account (including a credit 

card, bank account, or other financial account) of any person that any Defendant obtained prior to 

entry of this Order in connection with any activity that pe1iains to the subject matter of this Order; 

and 

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

custody, or control within fifteen (15) calendar days after entry of this Order. 

Provided, however, that customer information need not be disposed of, and may be 

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

order. 

VI. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of One Hundred Four Million Seven Hundred Thousand Dollars 

($104,700,000), consisting of Sixty-Eight Million Two Hundred Thousand Dollars ($68,200,000) 

in favor of the Commission, and Thirty-Six Million Five Hundred Thousand Dollars 

($36,500,000) in favor of the Division, is entered against Zurixx, LLC, Brand Management 

Holdings, LLC, CJ Seminar Holdings, LLC, Dorado Marketing and Management, LLC, Zurixx 

Financial, LLC-Utah, and Zurixx Financial, LLC-Puerto Rico, jointly and severally, as monetary 

relief. 

B. Judgment in the amount of Two Million Three Hundred Thirty-Three Thousand Three 

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Hundred Thirty-Three and 33/100 Dollars ($2,333,333.33) is entered in favor of Plaintiffs against 

Cristopher A. Cannon ("Cannon"), CAC Investment Ventures, LLC-Utah, and CAC Investment 

Ventures, LLC-Puerto Rico, jointly and severally, as monetary relief. 

C. Judgment in the amount of Two Million Three Hundred Thirty-Three Thousand Three 

Hundred Thirty-Three and 33/100 Dollars ($2,333,333.33) is entered in favor of Plaintiffs against 

James M. Carlson ("Carlson"), Carlson Development Group, LLC-Utah, and Carlson 

Development Group, LLC-Puerto Rico, jointly and severally, as monetary relief. 

D. Judgment in the amount of Two Million Three Hundred Thirty-Three Thousand Three 

Hundred Thirty-Three and 34/100 Dollars ($2,333,333.34) is entered in favor of Plaintiffs against 

Jeffrey D. Spangler ("Spangler"), JSS Investment Ventures, LLC, JSS Trust, and Relief 

Defendant, jointly and severally, as monetary relief. 

E. Immediately upon entry of this Order, Defendants are ordered to surrender to Plaintiffs all 

control, title, dominion, and interest each has to the following assets: 

1. All funds in any accounts in the name of Zurixx, LLC, Brand Management 

Holdings, LLC, CJ Seminar Holdings, LLC, Dorado Marketing and Management, LLC, 

Zurixx Financial, LLC-Utah, Zurixx Financial, LLC-Puerto Rico, and RE Cash Source, 

LLC ("Turnover Entities"); 

2. All cash and assets held by Receiver; and 

3. All assets owned by the Turnover Entities or held by the Receiver, including any 

real, personal, or intellectual property, chattel, goods, instruments, equipment, fixtures, 

general intangibles, effects, leaseholds, contracts, mail, or other deliveries, shares or stock, 

securities, inventory, checks, notes, accounts, credits, receivables, insurance policies, lines 

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of credit, cash, trusts (including asset protection trusts), lists of consumer names and 

reserve funds or any other accounts associated with any payments processed by, or on 

behalf of, any Turnover Entity. 

F. Cannon, CAC Investment Ventures, LLC-Utah, and CAC Investment Ventures, LLCPuerto Rico are ordered to pay to the Plaintiffs Two Million Three Hundred Thirty-Three 

Thousand Three Hundred Thirty-Three and 33/100 Dollars ($2,333,333.33). Such payment must 

be made within 90 days of entry of this Order by electronic fund transfer in accordance with 

instructions previously provided by a representative of the Commission. 

G. Carlson, Carlson Development Group, LLC-Utah, and Carlson Development Group, LLCPuerto Rico are ordered to pay to the Plaintiffs Two Million Three Hundred Thirty-Three 

Thousand Three Hundred Thirty-Three and 33/100 Dollars ($2,333,333.33). Such payment must 

be made within 90 days of entry of this Order by electronic fund transfer in accordance with 

instructions previously provided by a representative of the Commission. 

H. Spangler, JSS Investment Ventures, LLC, JSS Trust, and Relief Defendant are ordered to 

pay to the Plaintiffs Two Million Three Hundred Thirty-Three Thousand Three Hundred ThirtyThree and 34/100 Dollars ($2,333,333.34). Such payment must be made within 90 days of entry 

of this Order by electronic fund transfer in accordance with instructions previously provided by a 

representative of the Commission. 

I. Defendants shall deliver or transfer the assets identified in Subsection E above to the 

Receiver's possession within 7 days of the entry of this Order. 

J. The Receiver shall, as soon as practicable, commence the sale of the unliquidated assets 

identified in Subsections E.3 and surrendered pursuant to this Order using a commercially 

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reasonable procedure. The Receiver shall hold the surrendered assets, and the proceeds from the 

income produced by, and sale of, the unliquidated assets for future transfer to the Plaintiffs in 

accordance with further instructions from the Court. The Receiver is authorized to abandon any 

unliquidated asset that the Receiver detennines is not economically viable or is otherwise not 

practical to liquidate. 

K. Defendants relinquish dominion and all legal and equitable right, title, and interest in all 

assets transferred pursuant to this Order and may not seek the return of any assets. 

L. 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 Plaintiffs, including in a proceeding to enforce its 

rights to any payment or monetary judgment pursuant to this Order, such as a nondischargeability 

complaint in any bankruptcy case. The facts alleged in the Complaint will not be considered true 

or established for any purpose or for any party other than Plaintiffs as set forth in this Subsection 

and Subsection M below. 

M. The facts alleged in the Complaint establish all elements necessary to sustain an action 

by the Plaintiffs pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

N. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security 

Numbers or Employer Identification Numbers) may be used for collecting and reporting on any 

delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701. 

0. All money received by the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for consumer redress and any 

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

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Commission, in consultation with the Division, decides that direct redress to consumers is wholly 

or partially impracticable or money remains after redress is completed, the Commission and may 

apply any remaining money for such other 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 relief is to be deposited to the Utah Consumer Protection Education and 

Training Fund. Defendants have no right to challenge any actions the Commission or its 

representatives, or the Division or its representatives may take pursuant to this Subsection. 

VU. MODIFICATION OF ASSET PRESERVATION 

IT IS FURTHER ORDERED that the asset freeze and asset preservation provisions 

imposed on the Defendants by the Amended Stipulated Preliminary Injunction [ECF No. 346] 

remains in effect, but will be lifted for the sole purpose of transferring funds and assets to 

Plaintiffs and the Receiver pursuant to Section VI and will be dissolved for each Defendant upon 

completion of the transfers required by each Defendant pursuant to Section VI. 

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VIII. RECEIVERSHIP 

IT IS FURTHER ORDERED that: 

A. Except as modified by this Section, the Receivership imposed by the Court will 

continue as set forth in the Amended Stipulated Preliminary Injunction [ECF No. 346]. 

B. Upon approval of the Receiver's final report and request for payment, but no later 

than one hundred twenty (120) days after entry of the Court's approval of the Receiver's final 

report and request for payment, the Receivership will be terminated, and all funds remaining after 

payment of the Receiver's final approved payment must be remitted immediately to the 

Commission or its designated representative. 

C. Any party or the Receiver may request that the Court extend the Receiver's tenn 

for good cause. 

IX. COOPERATION 

IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives of 

Plaintiffs and the Receiver in this case and in any investigation related to or associated with the 

transactions or the occurrences that are the subject of the Complaint. Defendants must provide 

truthful and complete information, evidence, and testimony. Defendants must appear and 

Corporate Defendants must cause Defendants' officers, employees, representatives, or agents to 

appear for interviews, discovery, hearings, trials, and any other proceedings that Plaintiffs' or 

Receiver's representative may reasonably request upon 5 days written notice, or other reasonable 

notice, at such places and times as Plaintiffs' or Receiver's representative may designate, without 

the service of a subpoena. 

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X. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments ofreceipt of this 

Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission and 

the Division an acknowledgment of receipt of this Order sworn under penalty of pe1jury. 

B. For 3 years after entry of this Order, each Individual Defendant for any business that 

such Defendant, individually or collectively_ with any other Defendants, 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 having 

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

and representatives who participate in conduct related to the subject matter of the Order; and (3) 

any business entity resulting from any change in structure as set forth in the Section titled 

Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current 

personnel. For all others, delivery must occur before they assume their responsibilities. 

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

Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this 

Order. 

XI. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the Plaintiffs: 

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 

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telephone number, as designated points of contact, which representatives of the Commission or 

the Division 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 and the Division. 

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 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 10 years after entry of this Order, each Defendant must submit a compliance notice, 

sworn under penalty of perjury, within 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. 

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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 and the Division notice of the filing of 

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

Defendant within 14 days of its filing. 

D. Any submission to the Plaintiffs 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 Co1mnission 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. Zurixx, LLC, et al. (Name of the Defendant) 

F. Unless otherwise directed by a Division representative in writing, all submissions to the 

Division pursuant to this Order must be emailed to consumerprotection@utah.gov or sent by 

overnight courier (not the U.S. Postal Service) to: Director, Utah Division of Consumer 

Protection, Heber M. Wells Building, 160 East 300 South, P.O. Box 146704, Salt Lake City, Utah 

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84114-6704. The subject line must begin: FTC v. Zurixx, LLC, et al. (Name of Defendant). 

XII. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 10 years 

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

Defendant and each Individual Defendant for any business that such Defendant, individually or 

collectively with any other Defendants, 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 the Division; and 

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

XIII. 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 days of receipt of a written request from a representative of the Commission or 

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

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

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documents for inspection and copying. The Commission and the Division are 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 and remote depositions), 31, 33, 34, 

36, 45, and 69. 

B. For matters concerning this Order, the Commission and the Division are authorized to 

communicate directly with each Defendant. Defendant must pennit representatives of the 

Commission and the Division 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 and the Division 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-l. 

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

consumer reporting agency must furnish consumer reports concerning Individual Defendants, 

Relief Defendant, and JSS Trustee Defendant pursuant to Section 604(1) of the Fair Credit 

Reporting Act, 15 U.S.C. §1681b(a)(l). 

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~brQ__ 

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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 Order. 

SO ORDERED this 15th day of February 2022. 

UNITED STATES DISTRICT JUDGE 

HON. DALE A. KlMBALL 

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IT IS SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

FEDERAL TRADE COMMISSION 

/s/ Joshua A. Doan 2/14/2022 Date: 

Roberto Anguizola 

Joshua Doan 

Thomas Harris 

(Each appearing per DUCivR 83-1. l(d)(l)) 

Federal Trade Commission 

600 Pennsylvania Ave. NW, CC-8528 

Tel: (202) 326-3284 (R. Anguizola 

Email: ranguizola@ftc.gov 

Email: jdoan@ftc.gov 

Email: agrier@ftc.gov 

Email: tharris l @ftc.gov 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

UTAH DIVISION OF CONSUMER PROTECTION 

/s/ Robert G. Wing (by JAD w/ perm.) Date: 2/14/2022

Robert G. Wing (4445) 

Thomas M. Melton ( 4999) 

Assistant Attorneys General 

Utah Attorney General's Office 

160 East 300 South, Fifth Floor 

Salt Lake City, Utah 84114 

Tel: (801) 366-0310 

Email: rwing@agutah.gov 

Email: tmelton@agutah.gov 

Attorneys for Plaintiff 

UTAH DIVISION OF CONSUMER 

PROTECTION 

Page 20 of 23 
36 South State Street, Suite 1400 

PO Box 45385 

Salt Lake City, UT 84145 

Telephone: 801-323-3327 

Email: rpahnke@rqn.com 

Eri n 

PO NDYLLP 

2700 Homestead Rd., Suite 60 

Park City, UT 84908 

Telephone: 858-375-7385 

Email: ericb@potterhandy.com 

~LD. Loren Washburn 

ARMSTRONG TEAS 

201 South Main 00 

Salt Lake City, 

Telephone: 80 

Email: !wash 'Om 

Angel L 

Ryan J rowne 

REYE BROWNE REILLEY 

8222 Douglas Avenue, Suite 400 Dallas, TX 75225 

Telephone: (214) 526-7900 

Fax: (214) 526-7910 

Email :angel@reyeslaw.com 

Ernai l:ryan@reyeslaw.com 

Date: \ l · \ 1 · 11 

Date: 

Date: / :J. - / .J - J_ / 

Attorneys for Zurixx, LLC, Brand Afanagemenl Holding8, LLC, 

Page 21 of 23 

12/15/2021
Brennan Moss 

Michael Gehret 

Tanner Camp 

ARMSTRONG TEASDALE 

257 East 200 South, Suite 350 

Salt Lake City, UT 841 11 

Telephone: 720-613-7088 

Email: bmoss@atlIp.com 

Emai l: mgehret@atllip.com 

Email: tcamp@atllp.com 

Attorneys.for JSS Investment Ventures, LLC, 

JSS Trust, Gerald D. Spangler, and 

Relief Defendant Stephenie J Spangler 

DEFZda--

Cristopher A. Cannon, individually, and as 

Date: 

Date: 

an officer of Zurixx, LLC and Dorado Marketing and 

Management, LLC, a manager of CJ Seminai: Holdings, LLC, 

and a manager and member of CAC Investment Ventures LLC·Utah 

and CAC Investment Ventures LLC-Pueno Rico 

James . Carlson, indivi ually, and as 

chief exceptive officer of Zurix:x, LLC, and Brand 

Management Holdings, LLC, an officer of 

Page 22 of 23 

Date: fl/tJ/lt 

12/15/2021
Dorado Marketing and Management. LLC. 

and a manager and member of Carlson Development Group, LLC-Utah 

and Carlson Development Group, LLC-Pucrto Rico, and a control person of Zurixx Financial, LL.C~~;::r~rto~o. 

Jeffrey . Spangler, individually, and as officer of 

Zurixx., LLC and Dorado Marketing and Management, LLC, 

a manager of CJ Seminar Holdings, LLC, , and the grantor of JSS Trost 

~ /)~ ~-- Date: !.__1/_, q_? / 

Gerald D. Spangler, as trustee for the JSS Trust. and 

as a manager of JSS Investment Ventures, LLC 

RELIEF DEFENDANT: 

Date: 

Stephenie J. Spangler, individually 

Page 23 of23 

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14187 Page 23 of 80 
Dorado Markeling amt Management, L , 

a:nd a manager and member of Carlson Development Group, LLC-Ulnh 

and Carlson Development Group, LLC-Puerto Rico, and a control person of Zurixx Financial, 

LLC~Utah and Zurixx-Financial, L C- Puerto Rico, 

----'\~~,; 6A 

Jeffrey , Spangler, individually, and as officer of 

Zurixx, LLC and Dorado Marketing and Managemont, LLC, 

a manager of CJ Serninar Holdings, LLC,, and the granlor of JSS Trust 

Gerald D. pangler, as trustee for tho JSS Trust, and 

as n manager of JSS Investment Ventures, LLC 

RELIEF DEFENDANT: 

Date: 

Date: J.1j.Lzpo2 I 

Page 23 of23 

e 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14188 Page 24 
 

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Attachment A 

Telemarketing Sales Rule 

kpayne on VMOFRWIN702 with $$_JOBEC29SE91.044</GPH>

AUTH ENTICATE~ U.S. GOVERNMENT 

INFORMATION 

GPO 

MINIMUM 

90°/o 

METHANE 

Figure 1 

ELECTRICITY 

9.6 kW 

240 vac/40 amps 

CONDUCTIVE 

ri.gure 3 

HYDROGEN 

MINIMUM 

98°/o 

HYDROGEN 

Figure 2 

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14190 Page 26 of 80 

Federal Trade Commission § 310.2 

APPENDIX A TO PART 309—FIGURES FOR PART 309 

[60 FR 26955, May 19, 1995, as amended at 69 FR 55339, Sept. 14, 2004; 78 FR 23835, Apr. 23, 2013] 

PART 310—TELEMARKETING SALES 

RULE 

Sec. 

310.1 Scope of regulations in this part. 

310.2 Definitions. 

310.3 Deceptive telemarketing acts or practices. 

310.4 Abusive telemarketing acts or practices. 

310.5 Recordkeeping requirements. 

310.6 Exemptions. 

310.7 Actions by states and private persons. 

310.8 Fee for access to the National Do Not 

Call Registry. 

310.9 Severability. 

AUTHORITY: 15 U.S.C. 6101–6108. 

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

otherwise noted. 

§ 310.1 Scope of regulations in this 

part. 

This part implements the Telemarketing and Consumer Fraud and 

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

6108, as amended. 

§ 310.2 Definitions. 

(a) Acquirer means a business organization, financial institution, or an 

agent of a business organization or financial institution that has authority 

from an organization that operates or 

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

process payment by credit card 

through the credit card system for 

money, goods or services, or anything 

else of value. 

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§ 310.2 

(b) Attorney General means the chief 

legal officer of a state. 

(c) Billing information means any data 

that enables any person to access a 

customer’s or donor’s account, such as 

a credit card, checking, savings, share 

or similar account, utility bill, mortgage loan account, or debit card. 

(d) Caller identification service means a 

service that allows a telephone subscriber to have the telephone number, 

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

displayed on a device in or connected 

to the subscriber’s telephone. 

(e) Cardholder means a person to 

whom a credit card is issued or who is 

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

whom the credit card is issued. 

(f) Cash-to-cash money transfer means 

the electronic (as defined in section 

106(2) of the Electronic Signatures in 

Global and National Commerce Act (15 

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

cash received from one person to another person in a different location 

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

For purposes of this definition, money 

transfer provider means any person or 

financial institution that provides 

cash-to-cash money transfers for a person in the normal course of its business, whether or not the person holds 

an account with such person or financial institution. The term cash-to-cash 

money transfer includes a remittance 

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

of the Electronic Fund Transfer Act 

(‘‘EFTA’’), 15 U.S.C. 1693a, that is a 

cash-to-cash transaction; however it 

does not include any transaction that 

is: 

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

(2) Covered by Regulation E, 12 CFR 

1005.20, pertaining to gift cards; or 

(3) Subject to the Truth in Lending 

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

(g) Cash reload mechanism is a device, 

authorization code, personal identification number, or other security measure 

that makes it possible for a person to 

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

Signatures in Global and National 

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

16 CFR Ch. I (1–1–21 Edition) 

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

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

For purposes of this definition, a cash 

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

reload process or similar method in 

which funds are added directly onto a 

person’s own general-use prepaid card 

or account with a payment intermediary. 

(h) Charitable contribution means any 

donation or gift of money or any other 

thing of value. 

(i) Commission means the Federal 

Trade Commission. 

(j) Credit means the right granted by 

a creditor to a debtor to defer payment 

of debt or to incur debt and defer its 

payment. 

(k) Credit card means any card, plate, 

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

money, property, labor, or services on 

credit. 

(l) Credit card sales draft means any 

record or evidence of a credit card 

transaction. 

(m) Credit card system means any 

method or procedure used to process 

credit card transactions involving credit cards issued or licensed by the operator of that system. 

(n) Customer means any person who is 

or may be required to pay for goods or 

services offered through telemarketing. 

(o) Debt relief service means any program or service represented, directly or 

by implication, to renegotiate, settle, 

or in any way alter the terms of payment or other terms of the debt between a person and one or more unsecured creditors or debt collectors, including, but not limited to, a reduction 

in the balance, interest rate, or fees 

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

(p) Donor means any person solicited 

to make a charitable contribution. 

(q) Established business relationship 

means a relationship between a seller 

and a consumer based on: 

(1) the consumer’s purchase, rental, 

or lease of the seller’s goods or services 

or a financial transaction between the 

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Federal Trade Commission 

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

the date of a telemarketing call; or 

(2) the consumer’s inquiry or application regarding a product or service offered by the seller, within the three (3) 

months immediately preceding the 

date of a telemarketing call. 

(r) Free-to-pay conversion means, in an 

offer or agreement to sell or provide 

any goods or services, a provision 

under which a customer receives a 

product or service for free for an initial 

period and will incur an obligation to 

pay for the product or service if he or 

she does not take affirmative action to 

cancel before the end of that period. 

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

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

past, present, or future income, profit, 

or appreciation. 

(t) Material means likely to affect a 

person’s choice of, or conduct regarding, goods or services or a charitable 

contribution. 

(u) Merchant means a person who is 

authorized under a written contract 

with an acquirer to honor or accept 

credit cards, or to transmit or process 

for payment credit card payments, for 

the purchase of goods or services or a 

charitable contribution. 

(v) Merchant agreement means a written contract between a merchant and 

an acquirer to honor or accept credit 

cards, or to transmit or process for 

payment credit card payments, for the 

purchase of goods or services or a charitable contribution. 

(w) Negative option feature means, in 

an offer or agreement to sell or provide 

any goods or services, a provision 

under which the customer’s silence or 

failure to take an affirmative action to 

reject goods or services or to cancel the 

agreement is interpreted by the seller 

as acceptance of the offer. 

(x) Outbound telephone call means a 

telephone call initiated by a telemarketer to induce the purchase of 

goods or services or to solicit a charitable contribution. 

(y) Person means any individual, 

group, unincorporated association, limited or general partnership, corporation, or other business entity. 

§ 310.2 

(z) Preacquired account information 

means any information that enables a 

seller or telemarketer to cause a 

charge to be placed against a customer’s or donor’s account without obtaining the account number directly 

from the customer or donor during the 

telemarketing transaction pursuant to 

which the account will be charged. 

(aa) Prize means anything offered, or 

purportedly offered, and given, or purportedly given, to a person by chance. 

For purposes of this definition, chance 

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

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

item that the person will receive. 

(bb) Prize promotion means: 

(1) A sweepstakes or other game of 

chance; or 

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

won, has been selected to receive, or 

may be eligible to receive a prize or 

purported prize. 

(cc) Remotely created payment order 

means any payment instruction or 

order drawn on a person’s account that 

is created by the payee or the payee’s 

agent and deposited into or cleared 

through the check clearing system. 

The term includes, without limitation, 

a ‘‘remotely created check,’’ as defined 

in Regulation CC, Availability of 

Funds and Collection of Checks, 12 CFR 

229.2(fff), but does not include a payment order cleared through an Automated Clearinghouse (ACH) Network or 

subject to the Truth in Lending Act, 15 

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

CFR part 1026. 

(dd) Seller means any person who, in 

connection with a telemarketing transaction, provides, offers to provide, or 

arranges for others to provide goods or 

services to the customer in exchange 

for consideration. 

(ee) State means any state of the 

United States, the District of Columbia, Puerto Rico, the Northern Mariana 

Islands, and any territory or possession 

of the United States. 

(ff) Telemarketer means any person 

who, in connection with telemarketing, 

initiates or receives telephone calls to 

or from a customer or donor. 

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

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§ 310.3 

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

use of one or more telephones and 

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

include the solicitation of sales 

through the mailing of a catalog 

which: contains a written description 

or illustration of the goods or services 

offered for sale; includes the business 

address of the seller; includes multiple 

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

person making the solicitation does 

not solicit customers by telephone but 

only receives calls initiated by customers in response to the catalog and 

during those calls takes orders only 

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

term ‘‘further solicitation’’ does not 

include providing the customer with 

information about, or attempting to 

sell, any other item included in the 

same catalog which prompted the customer’s call or in a substantially similar catalog. 

(hh) Upselling means soliciting the 

purchase of goods or services following 

an initial transaction during a single 

telephone call. The upsell is a separate 

telemarketing transaction, not a continuation of the initial transaction. An 

‘‘external upsell’’ is a solicitation 

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

transaction, regardless of whether the 

initial transaction and the subsequent 

solicitation are made by the same telemarketer. An ‘‘internal upsell’’ is a solicitation made by or on behalf of the 

same seller as in the initial transaction, regardless of whether the initial transaction and subsequent solicitation are made by the same telemarketer. 

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

FR 77557, Dec. 14, 2015] 

§ 310.3 Deceptive telemarketing acts or 

practices. 

(a) Prohibited deceptive telemarketing 

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

conduct: 

16 CFR Ch. I (1–1–21 Edition) 

(1) Before a customer consents to 

pay 659 for goods or services offered, 

failing to disclose truthfully, in a clear 

and conspicuous manner, the following 

material information: 

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

goods or services that are the subject 

of the sales offer; 660 

(ii) All material restrictions, limitations, or conditions to purchase, receive, or use the goods or services that 

are the subject of the sales offer; 

(iii) If the seller has a policy of not 

making refunds, cancellations, exchanges, or repurchases, a statement 

informing the customer that this is the 

seller’s policy; or, if the seller or telemarketer makes a representation 

about a refund, cancellation, exchange, 

or repurchase policy, a statement of all 

material terms and conditions of such 

policy; 

(iv) In any prize promotion, the odds 

of being able to receive the prize, and, 

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

the odds; that no purchase or payment 

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

purchase or payment will not increase 

the person’s chances of winning; and 

the no-purchase/no-payment method of 

participating in the prize promotion 

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

659 When a seller or telemarketer uses, or 

directs a customer to use, a courier to transport payment, the seller or telemarketer 

must make the disclosures required by 

§ 310.3(a)(1) before sending a courier to pick 

up payment or authorization for payment, or 

directing a customer to have a courier pick 

up payment or authorization for payment. In 

the case of debt relief services, the seller or 

telemarketer must make the disclosures required by § 310.3(a)(1) before the consumer enrolls in an offered program. 660 For offers of consumer credit products 

subject to the Truth in Lending Act, 15 

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

226, compliance with the disclosure requirements under the Truth in Lending Act and 

Regulation Z shall constitute compliance 

with § 310.3(a)(1)(i) of this Rule. 

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Federal Trade Commission 

(v) All material costs or conditions 

to receive or redeem a prize that is the 

subject of the prize promotion; 

(vi) In the sale of any goods or services represented to protect, insure, or 

otherwise limit a customer’s liability 

in the event of unauthorized use of the 

customer’s credit card, the limits on a 

cardholder’s liability for unauthorized 

use of a credit card pursuant to 15 

U.S.C. 1643; 

(vii) If the offer includes a negative 

option feature, all material terms and 

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

fact that the customer’s account will 

be charged unless the customer takes 

an affirmative action to avoid the 

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

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

avoid the charge(s); and 

(viii) In the sale of any debt relief 

service: 

(A) the amount of time necessary to 

achieve the represented results, and to 

the extent that the service may include 

a settlement offer to any of the customer’s creditors or debt collectors, 

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

(B) to the extent that the service 

may include a settlement offer to any 

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

percentage of each outstanding debt 

that the customer must accumulate before the debt relief service provider 

will make a bona fide settlement offer 

to each of them; 

(C) to the extent that any aspect of 

the debt relief service relies upon or results in the customer’s failure to make 

timely payments to creditors or debt 

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

the customer’s creditworthiness, may 

result in the customer being subject to 

collections or sued by creditors or debt 

collectors, and may increase the 

amount of money the customer owes 

due to the accrual of fees and interest; 

and 

(D) to the extent that the debt relief 

service requests or requires the customer to place funds in an account at 

an insured financial institution, that 

the customer owns the funds held in 

§ 310.3 

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

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

receive all funds in the account, other 

than funds earned by the debt relief 

service in compliance with 

§ 310.4(a)(5)(i)(A) through (C). 

(2) Misrepresenting, directly or by 

implication, in the sale of goods or 

services any of the following material 

information: 

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

goods or services that are the subject 

of a sales offer; 

(ii) Any material restriction, limitation, or condition to purchase, receive, 

or use goods or services that are the 

subject of a sales offer; 

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

characteristics of goods or services 

that are the subject of a sales offer; 

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

cancellation, exchange, or repurchase 

policies; 

(v) Any material aspect of a prize 

promotion including, but not limited 

to, the odds of being able to receive a 

prize, the nature or value of a prize, or 

that a purchase or payment is required 

to win a prize or to participate in a 

prize promotion; 

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

limited to, risk, liquidity, earnings potential, or profitability; 

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

entity; 

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

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

limited to, the fact that the customer’s 

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

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

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

charge(s); or 

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§ 310.3 

(x) Any material aspect of any debt 

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

percentage of the debt amount that a 

customer may save by using such service; the amount of time necessary to 

achieve the represented results; the 

amount of money or the percentage of 

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

creditors or debt collectors or make a 

bona fide offer to negotiate, settle, or 

modify the terms of the customer’s 

debt; the effect of the service on a customer’s creditworthiness; the effect of 

the service on collection efforts of the 

customer’s creditors or debt collectors; 

the percentage or number of customers 

who attain the represented results; and 

whether a debt relief service is offered 

or provided by a non-profit entity. 

(3) Causing billing information to be 

submitted for payment, or collecting or 

attempting to collect payment for 

goods or services or a charitable contribution, directly or indirectly, without the customer’s or donor’s express 

verifiable authorization, except when 

the method of payment used is a credit 

card subject to protections of the 

Truth in Lending Act and Regulation 

Z,661 or a debit card subject to the protections of the Electronic Fund Transfer Act and Regulation E.662 Such authorization shall be deemed verifiable 

if any of the following means is employed: 

(i) Express written authorization by 

the customer or donor, which includes 

the customer’s or donor’s signature;663 

(ii) Express oral authorization which 

is audio-recorded and made available 

upon request to the customer or donor, 

and the customer’s or donor’s bank or 

other billing entity, and which evidences clearly both the customer’s or 

661 Truth in Lending Act, 15 U.S.C. 1601 et 

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

1693 et seq., and Regulation E, 12 CFR part 

205. 663 For purposes of this Rule, the term 

‘‘signature’’ shall include an electronic or 

digital form of signature, to the extent that 

such form of signature is recognized as a 

valid signature under applicable federal law 

or state contract law. 

16 CFR Ch. I (1–1–21 Edition) 

donor’s authorization of payment for 

the goods or services or charitable contribution that are the subject of the 

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

following information: 

(A) An accurate description, clearly 

and conspicuously stated, of the goods 

or services or charitable contribution 

for which payment authorization is 

sought; 

(B) The number of debits, charges, or 

payments (if more than one); 

(C) The date(s) the debit(s), charge(s), 

or payment(s) will be submitted for 

payment; 

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

charge(s), or payment(s); 

(E) The customer’s or donor’s name; 

(F) The customer’s or donor’s billing 

information, identified with sufficient 

specificity such that the customer or 

donor understands what account will 

be used to collect payment for the 

goods or services or charitable contribution that are the subject of the 

telemarketing transaction; 

(G) A telephone number for customer 

or donor inquiry that is answered during normal business hours; and 

(H) The date of the customer’s or donor’s oral authorization; or 

(iii) Written confirmation of the 

transaction, identified in a clear and 

conspicuous manner as such on the 

outside of the envelope, sent to the 

customer or donor via first class mail 

prior to the submission for payment of 

the customer’s or donor’s billing information, and that includes all of the information contained in 

§§ 310.3(a)(3)(ii)(A)-(G) and a clear and 

conspicuous statement of the procedures by which the customer or donor 

can obtain a refund from the seller or 

telemarketer or charitable organization in the event the confirmation is 

inaccurate; provided, however, that 

this means of authorization shall not 

be deemed verifiable in instances in 

which goods or services are offered in a 

transaction involving a free-to-pay 

conversion and preacquired account information. 

(4) Making a false or misleading 

statement to induce any person to pay 

for goods or services or to induce a 

charitable contribution. 

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Federal Trade Commission 

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

and a violation of this Rule for a person to provide substantial assistance or 

support to any seller or telemarketer 

when that person knows or consciously 

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

or § 310.4 of this Rule. 

(c) Credit card laundering. Except as 

expressly permitted by the applicable 

credit card system, it is a deceptive 

telemarketing act or practice and a 

violation of this Rule for: 

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

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

draft generated by a telemarketing 

transaction that is not the result of a 

telemarketing credit card transaction 

between the cardholder and the merchant; 

(2) Any person to employ, solicit, or 

otherwise cause a merchant, or an employee, representative, or agent of the 

merchant, to present to or deposit into 

the credit card system for payment, a 

credit card sales draft generated by a 

telemarketing transaction that is not 

the result of a telemarketing credit 

card transaction between the cardholder and the merchant; or 

(3) Any person to obtain access to the 

credit card system through the use of a 

business relationship or an affiliation 

with a merchant, when such access is 

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

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

solicitation, a deceptive telemarketing 

act or practice, and a violation of this 

Rule for any telemarketer soliciting 

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

the following material information: 

(1) The nature, purpose, or mission of 

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

(2) That any charitable contribution 

is tax deductible in whole or in part; 

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

(4) The percentage or amount of any 

charitable contribution that will go to 

§ 310.4 

a charitable organization or to any 

particular charitable program; 

(5) Any material aspect of a prize 

promotion including, but not limited 

to: the odds of being able to receive a 

prize; the nature or value of a prize; or 

that a charitable contribution is required to win a prize or to participate 

in a prize promotion; or 

(6) A charitable organization’s or 

telemarketer’s affiliation with, or endorsement or sponsorship by, any person or government entity. 

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

FR 77558, Dec. 14, 2015] 

§ 310.4 Abusive telemarketing acts or

practices. 

(a) Abusive conduct generally. It is an 

abusive telemarketing act or practice 

and a violation of this Rule for any 

seller or telemarketer to engage in the 

following conduct: 

(1) Threats, intimidation, or the use 

of profane or obscene language; 

(2) Requesting or receiving payment 

of any fee or consideration for goods or 

services represented to remove derogatory information from, or improve, a 

person’s credit history, credit record, 

or credit rating until: 

(i) The time frame in which the seller 

has represented all of the goods or 

services will be provided to that person 

has expired; and 

(ii) The seller has provided the person 

with documentation in the form of a 

consumer report from a consumer reporting agency demonstrating that the 

promised results have been achieved, 

such report having been issued more 

than six months after the results were 

achieved. Nothing in this Rule should 

be construed to affect the requirement 

in the Fair Credit Reporting Act, 15 

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

may only be obtained for a specified 

permissible purpose; 

(3) Requesting or receiving payment 

of any fee or consideration from a person for goods or services represented to 

recover or otherwise assist in the return of money or any other item of 

value paid for by, or promised to, that 

person in a previous transaction, until 

seven (7) business days after such 

money or other item is delivered to 

that person. This provision shall not 

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§ 310.4 

apply to goods or services provided to a 

person by a licensed attorney; 

(4) Requesting or receiving payment 

of any fee or consideration in advance 

of obtaining a loan or other extension 

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

obtaining or arranging a loan or other 

extension of credit for a person; 

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

any debt relief service until and unless: 

(A) The seller or telemarketer has renegotiated, settled, reduced, or otherwise altered the terms of at least one 

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

such valid contractual agreement executed by the customer; 

(B) The customer has made at least 

one payment pursuant to that settlement agreement, debt management 

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

creditor or debt collector; and 

(C) To the extent that debts enrolled 

in a service are renegotiated, settled, 

reduced, or otherwise altered individually, the fee or consideration either: 

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

the terms of the entire debt balance as 

the individual debt amount bears to 

the entire debt amount. The individual 

debt amount and the entire debt 

amount are those owed at the time the 

debt was enrolled in the service; or 

(2) Is a percentage of the amount 

saved as a result of the renegotiation, 

settlement, reduction, or alteration. 

The percentage charged cannot change 

from one individual debt to another. 

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

debt was enrolled in the service and the 

amount actually paid to satisfy the 

debt. 

(ii) Nothing in § 310.4(a)(5)(i) prohibits 

requesting or requiring the customer 

to place funds in an account to be used 

for the debt relief provider’s fees and 

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

alteration of the terms of payment or 

other terms of a debt, provided that: 

16 CFR Ch. I (1–1–21 Edition) 

(A) The funds are held in an account 

at an insured financial institution; 

(B) The customer owns the funds held 

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

(C) The entity administering the account is not owned or controlled by, or 

in any way affiliated with, the debt relief service; 

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

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

(E) The customer may withdraw from 

the debt relief service at any time 

without penalty, and must receive all 

funds in the account, other than funds 

earned by the debt relief service in 

compliance with § 310.4(a)(5)(i)(A) 

through (C), within seven (7) business 

days of the customer’s request. 

(6) Disclosing or receiving, for consideration, unencrypted consumer account numbers for use in telemarketing; provided, however, that 

this paragraph shall not apply to the 

disclosure or receipt of a customer’s or 

donor’s billing information to process a 

payment for goods or services or a 

charitable contribution pursuant to a 

transaction; 

(7) Causing billing information to be 

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

consent of the customer or donor. In 

any telemarketing transaction, the 

seller or telemarketer must obtain the 

express informed consent of the customer or donor to be charged for the 

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

identified account. In any telemarketing transaction involving 

preacquired account information, the 

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

through (ii) of this section must be met 

to evidence express informed consent. 

(i) In any telemarketing transaction 

involving preacquired account information and a free-to-pay conversion feature, the seller or telemarketer must: 

(A) Obtain from the customer, at a 

minimum, the last four (4) digits of the 

account number to be charged; 

(B) Obtain from the customer his or 

her express agreement to be charged 

for the goods or services and to be 

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

section; and, 

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

transaction. 

(ii) In any other telemarketing transaction involving preacquired account 

information not described in paragraph 

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

telemarketer must: 

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

specificity for the customer or donor to 

understand what account will be 

charged; and 

(B) Obtain from the customer or 

donor his or her express agreement to 

be charged for the goods or services 

and to be charged using the account 

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

(8) Failing to transmit or cause to be 

transmitted the telephone number, 

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

telemarketer, to any caller identification service in use by a recipient of a 

telemarketing call; provided that it 

shall not be a violation to substitute 

(for the name and phone number used 

in, or billed for, making the call) the 

name of the seller or charitable organization on behalf of which a telemarketing call is placed, and the seller’s or charitable organization’s customer or donor service telephone number, which is answered during regular 

business hours; 

(9) Creating or causing to be created, 

directly or indirectly, a remotely created payment order as payment for 

goods or services offered or sold 

through telemarketing or as a charitable contribution solicited or sought 

through telemarketing; or 

(10) Accepting from a customer or 

donor, directly or indirectly, a cash-tocash money transfer or cash reload 

mechanism as payment for goods or 

services offered or sold through telemarketing or as a charitable contribution solicited or sought through telemarketing. 

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

telemarketing act or practice and a 

violation of this Rule for a telemarketer to engage in, or for a seller 

§ 310.4 

to cause a telemarketer to engage in, 

the following conduct: 

(i) Causing any telephone to ring, or 

engaging any person in telephone conversation, repeatedly or continuously 

with intent to annoy, abuse, or harass 

any person at the called number; 

(ii) Denying or interfering in any 

way, directly or indirectly, with a person’s right to be placed on any registry 

of names and/or telephone numbers of 

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

comply with paragraph (b)(1)(iii)(A) of 

this section, including, but not limited 

to, harassing any person who makes 

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

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

request; requiring a person to call a 

different number to submit the request; and requiring the person to identify the seller making the call or on 

whose behalf the call is made; 

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

(A) That person previously has stated 

that he or she does not wish to receive 

an outbound telephone call made by or 

on behalf of the seller whose goods or 

services are being offered or made on 

behalf of the charitable organization 

for which a charitable contribution is 

being solicited; or 

(B) That person’s telephone number 

is on the ‘‘do-not-call’’ registry, maintained by the Commission, of persons 

who do not wish to receive outbound 

telephone calls to induce the purchase 

of goods or services unless the seller or 

telemarketer: 

(1) Can demonstrate that the seller 

has obtained the express agreement, in 

writing, of such person to place calls to 

that person. Such written agreement 

shall clearly evidence such person’s authorization that calls made by or on 

behalf of a specific party may be placed 

to that person, and shall include the 

telephone number to which the calls 

may be placed and the signature 664 of 

that person; or 

664 For purposes of this Rule, the term 

‘‘signature’’ shall include an electronic or 

digital form of signature, to the extent that 

such form of signature is recognized as a 

Continued 

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§ 310.4 

(2) Can demonstrate that the seller 

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

has not stated that he or she does not 

wish to receive outbound telephone 

calls under paragraph (b)(1)(iii)(A) of 

this section; or 

(iv) Abandoning any outbound telephone call. An outbound telephone call 

is ‘‘abandoned’’ under this section if a 

person answers it and the telemarketer 

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

the person’s completed greeting. 

(v) Initiating any outbound telephone 

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

permitted for compliance with the call 

abandonment safe harbor in 

§ 310.4(b)(4)(iii), unless: 

(A) In any such call to induce the 

purchase of any good or service, the 

seller has obtained from the recipient 

of the call an express agreement, in 

writing, that: 

(i) The seller obtained only after a 

clear and conspicuous disclosure that 

the purpose of the agreement is to authorize the seller to place prerecorded 

calls to such person; 

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

agreement be executed as a condition 

of purchasing any good or service; 

(iii) Evidences the willingness of the 

recipient of the call to receive calls 

that deliver prerecorded messages by 

or on behalf of a specific seller; and 

(iv) Includes such person’s telephone 

number and signature;665 and 

(B) In any such call to induce the 

purchase of any good or service, or to 

induce a charitable contribution from a 

member of, or previous donor to, a nonprofit charitable organization on whose 

behalf the call is made, the seller or 

telemarketer: 

(i) Allows the telephone to ring for at 

least fifteen (15) seconds or four (4) 

rings before disconnecting an unanswered call; and 

valid signature under applicable federal law 

or state contract law. 665 For purposes of this Rule, the term 

‘‘signature’’ shall include an electronic or 

digital form of signature, to the extent that 

such form of signature is recognized as a 

valid signature under applicable federal law 

or state contract law. 

16 CFR Ch. I (1–1–21 Edition) 

(ii) Within two (2) seconds after the 

completed greeting of the person 

called, plays a prerecorded message 

that promptly provides the disclosures 

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

immediately by a disclosure of one or 

both of the following: 

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

answered in person by a consumer, that 

the person called can use an automated 

interactive voice and/or keypress-activated opt-out mechanism to assert a 

Do Not Call request pursuant to 

§ 310.4(b)(1)(iii)(A) at any time during 

the message. The mechanism must: 

(1) Automatically add the number 

called to the seller’s entity-specific Do 

Not Call list; 

(2) Once invoked, immediately disconnect the call; and 

(3) Be available for use at any time 

during the message; and 

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

answered by an answering machine or 

voicemail service, that the person 

called can use a toll-free telephone 

number to assert a Do Not Call request 

pursuant to § 310.4(b)(1)(iii)(A). The 

number provided must connect directly 

to an automated interactive voice or 

keypress-activated opt-out mechanism 

that: 

(1) Automatically adds the number 

called to the seller’s entity-specific Do 

Not Call list; 

(2) Immediately thereafter disconnects the call; and 

(3) Is accessible at any time throughout the duration of the telemarketing 

campaign; and 

(iii) Complies with all other requirements of this part and other applicable 

federal and state laws. 

(C) Any call that complies with all 

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

§ 310.4(b)(1)(iv) of this part. 

(D) This paragraph (v) shall not apply 

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

entity or its business associate, as 

those terms are defined in the HIPAA 

Privacy Rule, 45 CFR 160.103. 

(2) It is an abusive telemarketing act 

or practice and a violation of this Rule 

for any person to sell, rent, lease, purchase, or use any list established to 

comply with § 310.4(b)(1)(iii)(A), or 

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maintained by the Commission pursuant to § 310.4(b)(1)(iii)(B), for any purpose except compliance with the provisions of this Rule or otherwise to prevent telephone calls to telephone numbers on such lists. 

(3) A seller or telemarketer will not 

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

and (iii) if it can demonstrate that, as 

part of the seller’s or telemarketer’s 

routine business practice: 

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

with § 310.4(b)(1)(ii) and (iii); 

(ii) It has trained its personnel, and 

any entity assisting in its compliance, 

in the procedures established pursuant 

to § 310.4(b)(3)(i); 

(iii) The seller, or a telemarketer or 

another person acting on behalf of the 

seller or charitable organization, has 

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

organization may not contact, in compliance with § 310.4(b)(1)(iii)(A); 

(iv) The seller or a telemarketer uses 

a process to prevent telemarketing to 

any telephone number on any list established pursuant to § 310.4(b)(3)(iii) or 

310.4(b)(1)(iii)(B), employing a version 

of the ‘‘do-not-call’’ registry obtained 

from the Commission no more than 

thirty-one (31) days prior to the date 

any call is made, and maintains 

records documenting this process; 

(v) The seller or a telemarketer or 

another person acting on behalf of the 

seller or charitable organization, monitors and enforces compliance with the 

procedures established pursuant to 

§ 310.4(b)(3)(i); and 

(vi) Any subsequent call otherwise 

violating paragraph (b)(1)(ii) or (iii) of 

this section is the result of error and 

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

(b)(1)(iii)(A) of this section not to receive further calls by or on behalf of a 

seller or charitable organization. 

(4) A seller or telemarketer will not 

be liable for violating § 310.4(b)(1)(iv) if: 

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

measured over the duration of a single 

calling campaign, if less than 30 days, 

or separately over each successive 30-

§ 310.4 

day period or portion thereof that the 

campaign continues. 

(ii) The seller or telemarketer, for 

each telemarketing call placed, allows 

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

disconnecting an unanswered call; 

(iii) Whenever a sales representative 

is not available to speak with the person answering the call within two (2) 

seconds after the person’s completed 

greeting, the seller or telemarketer 

promptly plays a recorded message 

that states the name and telephone 

number of the seller on whose behalf 

the call was placed666; and 

(iv) The seller or telemarketer, in accordance with § 310.5(b)-(d), retains 

records establishing compliance with 

§ 310.4(b)(4)(i)-(iii). 

(c) Calling time restrictions. Without 

the prior consent of a person, it is an 

abusive telemarketing act or practice 

and a violation of this Rule for a telemarketer to engage in outbound telephone calls to a person’s residence at 

any time other than between 8:00 a.m. 

and 9:00 p.m. local time at the called 

person’s location. 

(d) Required oral disclosures in the sale 

of goods or services. It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer in 

an outbound telephone call or internal 

or external upsell to induce the purchase of goods or services to fail to disclose truthfully, promptly, and in a 

clear and conspicuous manner to the 

person receiving the call, the following 

information: 

(1) The identity of the seller; 

(2) That the purpose of the call is to 

sell goods or services; 

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

(4) That no purchase or payment is 

necessary to be able to win a prize or 

participate in a prize promotion if a 

prize promotion is offered and that any 

purchase or payment will not increase 

the person’s chances of winning. This 

disclosure must be made before or in 

conjunction with the description of the 

prize to the person called. If requested 

666 This provision does not affect any seller’s or telemarketer’s obligation to comply 

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

227, and 47 CFR part 64.1200. 

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§ 310.5 

by that person, the telemarketer must 

disclose the no-purchase/no-payment 

entry method for the prize promotion; 

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

provide the disclosures listed in this 

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

disclosures provided in the initial telemarketing transaction. 

(e) Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer, in 

an outbound telephone call to induce a 

charitable contribution, to fail to disclose truthfully, promptly, and in a 

clear and conspicuous manner to the 

person receiving the call, the following 

information: 

(1) The identity of the charitable organization on behalf of which the request is being made; and 

(2) That the purpose of the call is to 

solicit a charitable contribution. 

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

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

2015] 

§ 310.5 Recordkeeping requirements. 

(a) Any seller or telemarketer shall 

keep, for a period of 24 months from 

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

(1) All substantially different advertising, brochures, telemarketing 

scripts, and promotional materials; 

(2) The name and last known address 

of each prize recipient and the prize 

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

have a value of $25.00 or more; 

(3) The name and last known address 

of each customer, the goods or services 

purchased, the date such goods or services were shipped or provided, and the 

amount paid by the customer for the 

goods or services;667 

(4) The name, any fictitious name 

used, the last known home address and 

667 For offers of consumer credit products 

subject to the Truth in Lending Act, 15 

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

226, compliance with the recordkeeping requirements under the Truth in Lending Act, 

and Regulation Z, shall constitute compliance with §310.5(a)(3) of this Rule. 

16 CFR Ch. I (1–1–21 Edition) 

telephone number, and the job title(s) 

for all current and former employees 

directly involved in telephone sales or 

solicitations; provided, however, that if 

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

each fictitious name must be traceable 

to only one specific employee; and 

(5) All verifiable authorizations or 

records of express informed consent or 

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

(b) A seller or telemarketer may 

keep the records required by § 310.5(a) 

in any form, and in the same manner, 

format, or place as they keep such 

records in the ordinary course of business. Failure to keep all records required by § 310.5(a) shall be a violation 

of this Rule. 

(c) The seller and the telemarketer 

calling on behalf of the seller may, by 

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

When a seller and telemarketer have 

entered into such an agreement, the 

terms of that agreement shall govern, 

and the seller or telemarketer, as the 

case may be, need not keep records 

that duplicate those of the other. If the 

agreement is unclear as to who must 

maintain any required record(s), or if 

no such agreement exists, the seller 

shall be responsible for complying with 

§§ 310.5(a)(1)-(3) and (5); the telemarketer shall be responsible for complying with § 310.5(a)(4). 

(d) In the event of any dissolution or 

termination of the seller’s or telemarketer’s business, the principal of 

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

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

of the seller’s or telemarketer’s business, the successor business shall maintain all records required under this section. 

§ 310.6 Exemptions. 

(a) Solicitations to induce charitable 

contributions via outbound telephone 

calls are not covered by 

§ 310.4(b)(1)(iii)(B) of this Rule. 

(b) The following acts or practices 

are exempt from this Rule: 

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

subject to the Commission’s Rule entitled ‘‘Trade Regulation Rule Pursuant 

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

part 308, provided, however, that this 

exemption does not apply to the requirements of §§ 310.4(a)(1), (a)(7), (b), 

and (c); 

(2) The sale of franchises subject to 

the Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions 

Concerning Franchising,’’ (‘‘Franchise 

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

business opportunities subject to the 

Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions 

Concerning Business Opportunities,’’ 

(‘‘Business Opportunity Rule’’) 16 CFR 

part 437, provided, however, that this 

exemption does not apply to the requirements of §§ 310.4(a)(1), (a)(7), (b), 

and (c); 

(3) Telephone calls in which the sale 

of goods or services or charitable solicitation is not completed, and payment 

or authorization of payment is not required, until after a face-to-face sales 

or donation presentation by the seller 

or charitable organization, provided, 

however, that this exemption does not 

apply to the requirements of 

§§ 310.4(a)(1), (a)(7), (b), and (c); 

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

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

provided, however, that this exemption 

does not apply to any instances of 

upselling included in such telephone 

calls; 

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

than direct mail solicitation, provided, 

however, that this exemption does not 

apply to: 

(i) Calls initiated by a customer or 

donor in response to an advertisement 

relating to investment opportunities, 

debt relief services, business opportunities other than business arrangements 

covered by the Franchise Rule or Business Opportunity Rule, or advertisements involving offers for goods or 

services described in § 310.3(a)(1)(vi) or 

§ 310.4(a)(2) through (4); 

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

or (10); or 

§ 310.7 

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

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

mail solicitation, including solicitations via the U.S. Postal Service, facsimile transmission, electronic mail, 

and other similar methods of delivery 

in which a solicitation is directed to 

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

clearly, conspicuously, and truthfully 

discloses all material information listed in § 310.3(a)(1), for any goods or services offered in the direct mail solicitation, and that contains no material 

misrepresentation regarding any item 

contained in § 310.3(d) for any requested 

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

apply to: 

(i) Calls initiated by a customer in 

response to a direct mail solicitation 

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

business arrangements covered by the 

Franchise Rule or Business Opportunity Rule, or goods or services described in § 310.3(a)(1)(vi) or § 310.4(a)(2) 

through (4); 

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

or (10); or 

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

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

the purchase of goods or services or a 

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

sale of nondurable office or cleaning 

supplies; provided, however, that 

§§ 310.4(b)(1)(iii)(B) and 310.5 shall not 

apply to sellers or telemarketers of 

nondurable office or cleaning supplies. 

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

FR 77559, Dec. 14, 2015] 

§ 310.7 Actions by states and private 

persons. 

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

to bring an action under the Telemarketing and Consumer Fraud and 

Abuse Prevention Act, and any private 

person who brings an action under that 

Act, shall serve written notice of its 

action on the Commission, if feasible, 

prior to its initiating an action under 

this Rule. The notice shall be sent to 

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§ 310.8 

the Office of the Director, Bureau of 

Consumer Protection, Federal Trade 

Commission, Washington, DC 20580, and 

shall include a copy of the state’s or 

private person’s complaint and any 

other pleadings to be filed with the 

court. If prior notice is not feasible, 

the state or private person shall serve 

the Commission with the required notice immediately upon instituting its 

action. 

(b) Nothing contained in this Section 

shall prohibit any attorney general or 

other authorized state official from 

proceeding in state court on the basis 

of an alleged violation of any civil or 

criminal statute of such state. 

§ 310.8 Fee for access to the National 

Do Not Call Registry. 

(a) It is a violation of this Rule for 

any seller to initiate, or cause any 

telemarketer to initiate, an outbound 

telephone call to any person whose 

telephone number is within a given 

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

has paid the annual fee, required by 

§ 310.8(c), for access to telephone numbers within that area code that are included in the National Do Not Call 

Registry maintained by the Commission under § 310.4(b)(1)(iii)(B); provided, 

however, that such payment is not necessary if the seller initiates, or causes 

a telemarketer to initiate, calls solely 

to persons pursuant to 

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

Not Call Registry for any other purpose. 

(b) It is a violation of this Rule for 

any telemarketer, on behalf of any seller, to initiate an outbound telephone 

call to any person whose telephone 

number is within a given area code unless that seller, either directly or 

through another person, first has paid 

the annual fee, required by § 310.8(c), 

for access to the telephone numbers 

within that area code that are included 

in the National Do Not Call Registry; 

provided, however, that such payment 

is not necessary if the seller initiates, 

or causes a telemarketer to initiate, 

calls solely to persons pursuant to 

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

16 CFR Ch. I (1–1–21 Edition) 

Not Call Registry for any other purpose. 

(c) The annual fee, which must be 

paid by any person prior to obtaining 

access to the National Do Not Call 

Registry, is $66 for each area code of 

data accessed, up to a maximum of 

$18,044; provided, however, that there 

shall be no charge to any person for accessing the first five area codes of data, 

and provided further, that there shall be 

no charge to any person engaging in or 

causing others to engage in outbound 

telephone calls to consumers and who 

is accessing area codes of data in the 

National Do Not Call Registry if the 

person is permitted to access, but is 

not required to access, the National Do 

Not Call Registry under this Rule, 47 

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

cost of accessing the National Do Not 

Call Registry, including any arrangement with any telemarketer or service 

provider to divide the costs to access 

the registry among various clients of 

that telemarketer or service provider. 

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

annual fee set forth in paragraph (c) of 

this section, each person excepted 

under paragraph (c) from paying the 

annual fee, and each person excepted 

from paying an annual fee under 

§ 310.4(b)(1)(iii)(B), will be provided a 

unique account number that will allow 

that person to access the registry data 

for the selected area codes at any time 

for the twelve month period beginning 

on the first day of the month in which 

the person paid the fee (‘‘the annual period’’). To obtain access to additional 

area codes of data during the first six 

months of the annual period, each person required to pay the fee under paragraph (c) of this section must first pay 

$66 for each additional area code of 

data not initially selected. To obtain 

access to additional area codes of data 

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

pay the fee under paragraph (c) of this 

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

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

for the remainder of the annual period. 

398 

kpayne on VMOFRWIN702 with $$_JOB

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14204 Page 40 of 80 

Federal Trade Commission 

(e) Access to the National Do Not 

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

causing others to engage in telephone 

calls to consumers, service providers 

acting on behalf of such persons, and 

any government agency that has law 

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

a person must provide the identifying 

information required by the operator of 

the registry to collect the fee, and 

must certify, under penalty of law, 

that the person is accessing the registry solely to comply with the provisions of this Rule or to otherwise prevent telephone calls to telephone numbers on the registry. If the person is accessing the registry on behalf of sellers, that person also must identify 

each of the sellers on whose behalf it is 

accessing the registry, must provide 

each seller’s unique account number 

for access to the national registry, and 

must certify, under penalty of law, 

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

solely to comply with the provisions of 

this Rule or otherwise to prevent telephone calls to telephone numbers on 

the registry. 

[75 FR 48516, Aug. 10, 2010; 75 FR 51934, Aug. 

24, 2010, as amended at 77 FR 51697, Aug. 27, 

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

Aug. 29, 2014; 80 FR 77560, Dec. 14, 2016; 81 FR 

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

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

27, 2019; 85 FR 62597, Oct. 5, 2020] 

§ 310.9 Severability. 

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

any provision is stayed or determined 

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

shall continue in effect. 

PART 311—TEST PROCEDURES AND 

LABELING STANDARDS FOR RECYCLED OIL 

Sec. 

311.1 Definitions. 

311.2 Stayed or invalid parts. 

311.3 Preemption. 

311.4 Testing. 

311.5 Labeling. 

311.6 Prohibited acts. 

AUTHORITY: 42 U.S.C. 6363(d). 

§ 311.3 

SOURCE: 60 FR 55421, Oct. 31, 1995, unless 

otherwise noted. 

§ 311.1 Definitions. 

As used in this part: 

(a) Manufacturer means any person 

who re-refines or otherwise processes 

used oil to remove physical or chemical impurities acquired through use or 

who blends such re-refined or otherwise 

processed used oil with new oil or additives. 

(b) New oil means any synthetic oil or 

oil that has been refined from crude oil 

and which has not been used and may 

or may not contain additives. Such 

term does not include used oil or recycled oil. 

(c) Processed used oil means re-refined 

or otherwise processed used oil or blend 

of oil, consisting of such re-refined or 

otherwise processed used oil and new 

oil or additives. 

(d) Recycled oil means processed used 

oil that the manufacturer has determined, pursuant to section 311.4 of this 

part, is substantially equivalent to new 

oil for use as engine oil. 

(e) Used oil means any synthetic oil 

or oil that has been refined from crude 

oil, which has been used and, as a result of such use, has been contaminated by physical or chemical impurities. 

(f) Re-refined oil means used oil from 

which physical and chemical contaminants acquired through use have been 

removed. 

§ 311.2 Stayed or invalid parts. 

If any part of this rule is stayed or 

held invalid, the rest of it will remain 

in force. 

§ 311.3 Preemption. 

No law, regulation, or order of any 

State or political subdivision thereof 

may apply, or remain applicable, to 

any container of recycled oil, if such 

law, regulation, or order requires any 

container of recycled oil, which container bears a label in accordance with 

the terms of § 311.5 of this part, to bear 

any label with respect to the comparative characteristics of such recycled oil 

with new oil that is not identical to 

that permitted by § 311.5 of this part. 

399 
 

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14205 Page 41 of 80 

Attachment B 

Telephone Fraud Prevention Act 
Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14206 Page 42 of 80 

Chapter 26. Telephone Fraud Prevention Act

13 UT ST Ch. 26, Refs & Annos

§ 13–26–1. Short Title

§ 13–26–2. Definitions

§ 13–26–3. Registration and Bond Required

§ 13–26–4. Exemptions from Registration

§ 13–26–5. Right of Rescission—Cancellation

§ 13-26-6. Repealed by Laws 1994, C. 189, § 7, eff. May 2, 1994

§ 13-26-7. Repealed by Laws 1994, C. 189, § 7, eff. May 2, 1994

§ 13–26–8. Penalties

§ 13–26–9. Repealed by Laws 1994, C. 189, § 7, eff. May 2, 1994

§ 13–26–10. Provisions of Chapter Not Exclusive

§ 13–26–11. Prohibited Practices

§ 13–26–12. Consumer Complaints Are Public
WEST AW 

T. 13, Ch. 26, Refs & Annos, UT ST T. 13, Ch. 26, Refs & Annos Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14207 Page 43 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act

U.C.A. 1953 T. 13, Ch. 26, Refs & Annos

Currentness

U.C.A. 1953 T. 13, Ch. 26, Refs & Annos, UT ST T. 13, Ch. 26, Refs & Annos

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14208 Page 44 of 80 § 13-26-1. Short title, UT ST § 13-26-1

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-1

§ 13-26-1. Short title

Currentness

This chapter is known as the “Telephone Fraud Prevention Act.”

Credits

Laws 1990, c. 154, § 1.

Notes of Decisions (5)

U.C.A. 1953 § 13-26-1, UT ST § 13-26-1

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14209 Page 45 of 80 § 13-26-2. Definitions, UT ST § 13-26-2

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-2

§ 13-26-2. Definitions

Currentness

As used in this chapter, unless the context otherwise requires:

(1) “Continuity plan” means a shipment, with the prior express consent of the buyer, at regular intervals of similar specialinterest products. A continuity plan is distinguished from a subscription arrangement by no binding commitment period or

purchase amount.

(2) “Division” means the Division of Consumer Protection.

(3) “Fictitious personal name” means a name other than an individual's true name. An “individual's true name” is the name

taken at birth unless changed by operation of law or by civil action.

(4) “Material statement” or “material fact” means information that a person of ordinary intelligence or prudence would consider

important in deciding whether or not to accept an offer extended through a telephone solicitation.

(5) “Premium” means a gift, bonus, prize, award, certificate, or other document by which a prospective purchaser is given a

right, chance, or privilege to purchase or receive goods or services with a stated or represented value of $25 or more as an

inducement to a prospective purchaser to purchase other goods or services.

(6) “Subscription arrangements,” “standing order arrangements,” “supplements,” and “series arrangements” mean products or

services provided, with the prior express request or consent of the buyer, for a specified period of time at a price dependent on

the duration of service and to complement an initial purchase.

(7)(a) “Telephone solicitation,” “sale,” “selling,” or “solicitation of sale” means:

(i) a sale or solicitation of goods or services in which:

(A)(I) the seller solicits the sale over the telephone;

(II) the purchaser's agreement to purchase is made over the telephone; and

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(III) the purchaser, over the telephone, pays for or agrees to commit to payment for goods or services prior to or upon

receipt by the purchaser of the goods or services;

(B) the solicitor, not exempt under Section 13-26-4, induces a prospective purchaser over the telephone, to make and

keep an appointment that directly results in the purchase of goods or services by the purchaser that would not have

occurred without the telephone solicitation and inducement by the solicitor;

(C) the seller offers or promises a premium to a prospective purchaser if:

(I) the seller induces the prospective purchaser to initiate a telephone contact with the telephone soliciting business;

and

(II) the resulting solicitation meets the requirements of Subsection (7)(a); or

(D) the solicitor solicits a charitable donation involving the exchange of any premium, prize, gift, ticket, subscription,

or other benefit in connection with any appeal made for a charitable purpose by an organization that is not otherwise

exempt under Subsection 13-26-4(2)(b)(iv); or

(ii) a telephone solicitation as defined in Section 13-25a-102.

(b) “Telephone solicitation,” “sale,” “selling,” or “solicitation of sale” does not include a sale or solicitation that occurs solely

through an Internet website without the use of a telephone call.

(c) A solicitation of sale or telephone solicitation is considered complete when made, whether or not the person receiving

the solicitation agrees to the sale or to make a charitable donation.

(8) “Telephone soliciting business” means a sole proprietorship, partnership, limited liability company, corporation, or other

association of individuals engaged in a common effort to conduct telephone solicitations.

(9) “Telephone solicitor” or “solicitor” means a person, partnership, limited liability company, corporation, or other entity that:

(a) makes a telephone solicitation; or

(b) causes a telephone solicitation to be made.

Credits

Laws 1990, c. 154, § 2; Laws 1993, c. 37, § 1; Laws 1994, c. 189, § 1; Laws 1995, c. 26, § 1, eff. May 1, 1995; Laws 1997,

c. 92, § 2, eff. May 5, 1997; Laws 2004, c. 55, § 7, eff. March 15, 2004; Laws 2005, c. 18, § 13, eff. March 8, 2005; Laws

2012, c. 152, § 4, eff. May 8, 2012.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14211 Page 47 of 80 § 13-26-2. Definitions, UT ST § 13-26-2

U.C.A. 1953 § 13-26-2, UT ST § 13-26-2

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14212 Page 48 of 80 § 13-26-3. Registration and bond required, UT ST § 13-26-3

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-3

§ 13-26-3. Registration and bond required

Currentness

(1)(a) Unless exempt under Section 13-26-4, each telephone soliciting business shall register annually with the division before

engaging in telephone solicitations if:

(i) the telephone soliciting business engages in telephone solicitations that:

(A) originate in Utah; or

(B) are received in Utah; or

(ii) the telephone soliciting business conducts any business operations in Utah.

(b) The registration form shall designate an agent residing in this state who is authorized by the telephone soliciting business

to receive service of process in any action brought by this state or a resident of this state.

(c) If a telephone soliciting business fails to designate an agent to receive service or fails to appoint a successor to the agent:

(i) the business' application for an initial or renewal registration shall be denied; and

(ii) any current registration shall be suspended until an agent is designated.

(d)(i) For purposes of this section only, the registered agent of a telephone soliciting business shall provide the division proof

of residency in the state.

(ii) Proof of residency under Subsection (1)(d)(i) may be provided by a valid Utah driver license, valid governmental photo

identification issued to a resident of the state, or other verifiable identification indicating residency in the state.

(2) The division may impose an annual registration fee set pursuant to Section 63J-1-504 that may include the cost of the

criminal background check described in Subsection (4).

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(3)(a) Each telephone soliciting business engaging in telephone solicitation or sales in this state shall obtain and maintain the

following security:

(i) a performance bond issued by a surety authorized to transact surety business in this state;

(ii) an irrevocable letter of credit issued by a financial institution authorized to do business in this state; or

(iii) a certificate of deposit held in this state in a depository institution regulated by the Department of Financial Institutions.

(b) The bond, letter of credit, or certificate of deposit shall be payable to the division for the benefit of any consumer who

incurs damages as the result of any telephone solicitation or sales violation of this chapter.

(c) The division may recover from the bond, letter of credit, or certificate of deposit investigative costs, attorney fees, and

other costs of collecting and distributing funds under this section and the costs of promoting consumer education, but only

if the consumer has first recovered full damages.

(d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of credit in force for one year after it

notifies the division in writing that it has ceased all activities regulated by this chapter.

(e) The amount to be posted in the form of a bond, irrevocable letter of credit, or certificate of deposit shall be:

(i) $25,000 if:

(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years

preceding the date of the application; and

(B) the telephone soliciting business has fewer than 10 employees;

(ii) $50,000 if:

(A) neither the telephone soliciting business nor any affiliated person has violated this chapter within three years

preceding the date of the application; and

(B) the telephone soliciting business has 10 or more employees; or

(iii) $75,000 if the telephone soliciting business or any affiliated person has violated this chapter within three years

preceding the date of the application.

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(f) For purposes of Subsection (3)(e) an “affiliated person” means a contractor, director, employee, officer, owner, or partner

of the telephone soliciting business.

(4)(a) As used in this Subsection (4), “participant” means an individual with a controlling interest in or an owner, officer, director,

member, principal, trustee, general partner, limited partner, manager, sole proprietor, or key employee of a person seeking to

register or renew a registration as a telephone soliciting business.

(b) As part of the process to register or renew a registration as a telephone soliciting business, a participant:

(i) may not, within the previous 10 years, have been convicted of a felony;

(ii) may not, within the previous 10 years, have been convicted of a misdemeanor involving moral turpitude, including

theft, fraud, or dishonesty; and

(iii) shall submit to the division:

(A) the participant's fingerprints, in a form acceptable to the division, for purposes of a criminal background check; and

(B) consent to a criminal background check by the Bureau of Criminal Identification created in Section 53-10-201.

(5) The division may establish by rule the registration requirements for telephone soliciting businesses under the terms of Title

63G, Chapter 3, Utah Administrative Rulemaking Act. An administrative proceeding conducted by the division under this

chapter shall comply with the requirements of Title 63G, Chapter 4, Administrative Procedures Act.

(6) If information in an application for registration or for renewal of registration as a telephone soliciting business materially

changes or becomes incorrect or incomplete, the applicant shall, within 30 days after the information changes or becomes

incorrect or incomplete, correct the application or submit the correct information to the division in a manner that the division

establishes by rule.

(7) The division director may deny or revoke a registration under this section for any violation of this chapter.

Credits

Laws 1990, c. 154, § 3; Laws 1993, c. 37, § 2; Laws 1994, c. 189, § 2; Laws 1994, c. 313, § 11; Laws 1999, c. 124, § 2, eff.

March 17, 1999; Laws 2002, c. 122, § 2, eff. May 6, 2002; Laws 2005, c. 18, § 14, eff. March 8, 2005; Laws 2008, c. 382, §

145, eff. May 5, 2008; Laws 2009, c. 183, § 21, eff. May 12, 2009; Laws 2013, c. 124, § 8, eff. May 14, 2013.

U.C.A. 1953 § 13-26-3, UT ST § 13-26-3

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14215 Page 51 of 80 § 13-26-4. Exemptions from registration, UT ST § 13-26-4

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-4

§ 13-26-4. Exemptions from registration

Currentness

(1) In any enforcement action initiated by the division, the person claiming an exemption has the burden of proving that the

person is entitled to the exemption.

(2) The following are exempt from the requirements of this chapter except for the requirements of Sections 13-26-8 and

13-26-11:

(a) a broker, agent, dealer, or sales professional licensed under the licensure laws of this state, when soliciting sales within

the scope of his license;

(b) the solicitation of sales by:

(i) a public utility that is regulated under Title 54, Public Utilities, or by an affiliate of the utility;

(ii) a newspaper of general circulation;

(iii) a solicitation of sales made by a broadcaster licensed by any state or federal authority;

(iv) a nonprofit organization if no part of the net earnings from the sale inures to the benefit of any member, officer, trustee,

or serving board member of the organization, or individual, or family member of an individual, holding a position of

authority or trust in the organization; and

(v) a person who periodically publishes and delivers a catalog of the solicitor's merchandise to prospective purchasers,

if the catalog:

(A) contains the price and a written description or illustration of each item offered for sale;

(B) includes the business address of the solicitor;

(C) includes at least 24 pages of written material and illustrations;

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(D) is distributed in more than one state; and

(E) has an annual circulation by mailing of not less than 250,000;

(c) any publicly-traded corporation registered with the Securities and Exchange Commission, or any subsidiary of the

corporation;

(d) the solicitation of any depository institution as defined in Section 7-1-103, a subsidiary of a depository institution, personal

property broker, securities broker, investment adviser, consumer finance lender, or insurer subject to regulation by an official

agency of this state or the United States;

(e) the solicitation by a person soliciting only the sale of telephone services to be provided by the person or the person's

employer;

(f) the solicitation of a person relating to a transaction regulated by the Commodities Futures Trading Commission, if:

(i) the person is registered with or temporarily licensed by the commission to conduct that activity under the Commodity

Exchange Act; and

(ii) the registration or license has not expired or been suspended or revoked;

(g) the solicitation of a contract for the maintenance or repair of goods previously purchased from the person:

(i) who is making the solicitation; or

(ii) on whose behalf the solicitation is made;

(h) the solicitation of previous customers of the business on whose behalf the call is made if the person making the call:

(i) does not offer any premium in conjunction with a sale or offer;

(ii) is not selling an investment or an opportunity for an investment that is not registered with any state or federal authority;

and

(iii) is not regularly engaged in telephone sales;

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14217 Page 53 of 80 § 13-26-4. Exemptions from registration, UT ST § 13-26-4

(i) the solicitation of a sale that is an isolated transaction and not done in the course of a pattern of repeated transactions

of a like nature;

(j) the solicitation of a person by a retail business establishment that has been in operation for at least five years in Utah under

the same name as that used in connection with telemarketing if both of the following occur on a continuing basis:

(i) products are displayed and offered for sale at the place of business, or services are offered for sale and provided at

the place of business; and

(ii) a majority of the seller's business involves the buyer obtaining the products or services at the seller's place of business;

(k) a person primarily soliciting the sale of a magazine or periodical sold by the publisher or the publisher's agent through a

written agreement, or printed or recorded material through a contractual plan, such as a book or record club, continuity plan,

subscription, standing order arrangement, or supplement or series arrangement if:

(i) the seller provides the consumer with a form that the consumer may use to instruct the seller not to ship the offered

merchandise, and the arrangement is regulated by the Federal Trade Commission trade regulation concerning use of

negative option plans by sellers in commerce; or

(ii)(A) the seller periodically ships merchandise to a consumer who has consented in advance to receive the merchandise

on a periodic basis; and

(B) the consumer retains the right to cancel at any time and receive a full refund for the unused portion;

(l) a telephone marketing service company that provides telemarketing sales services under contract to sellers if:

(i) it has been doing business regularly with customers in Utah for at least five years under the same business name and

with its principal office in the same location;

(ii) at least 75% of its contracts are performed on behalf of persons exempted from registration under this chapter; and

(iii) neither the company nor its principals have been enjoined from doing business or subjected to criminal actions for

their business activities in this or any other state;

(m) a credit services organization that holds a current registration with the division under Chapter 21, Credit Services

Organizations Act, if the credit services organization's telephone solicitations are limited to the solicitation of services

regulated under Chapter 21, Credit Services Organizations Act; and

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14218 Page 54 of 80 § 13-26-4. Exemptions from registration, UT ST § 13-26-4

(n) a provider that holds a current registration with the division under Chapter 42, Uniform Debt-Management Services Act,

if the provider's telephone solicitations are limited to the solicitation of services regulated under Chapter 21, Credit Services

Organizations Act.

Credits

Laws 1990, c. 154, § 4; Laws 1991, c. 60, § 1; Laws 1993, c. 37, § 3; Laws 1994, c. 189, § 3; Laws 1995, c. 26, § 2, eff.

May 1, 1995; Laws 1996, c. 170, § 2, eff. July 1, 1996; Laws 2014, c. 189, § 54, eff. May 13, 2014; Laws 2017, c. 98, § 8,

eff. May 9, 2017.

U.C.A. 1953 § 13-26-4, UT ST § 13-26-4

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-5

§ 13-26-5. Right of rescission--Cancellation

Currentness

(1)(a) Except as provided in Subsections (1)(b) and (c), in addition to any right to otherwise revoke an offer, a person making

a purchase from a telephone soliciting business required to be registered under this chapter may cancel the sale up to midnight

of the third business day after the receipt of the merchandise or premium, whichever is later, provided the solicitor advises the

purchaser of his cancellation rights under this chapter at the time any solicitation is made.

(b) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of the right to cancel under

this section at the time of any solicitation, the purchaser's right to cancel shall be extended to 90 days.

(c) If the solicitor required to be registered under this chapter fails to orally advise a purchaser of his true name, telephone

number, and complete street address at the time of any solicitation, the purchaser may cancel the sale at any time.

(2) Sales shall be cancelled by mailing a notice of cancellation to the telephone solicitor's correct street address, postage prepaid.

If the telephone solicitor provided no correct street address, cancellation can be accomplished by sending a notice of cancellation

to the division's offices, postage prepaid.

(3)(a) If a cancellation involves durable goods, as defined by rule, those goods shall be returned to the seller.

(b) If expendable goods are involved, the purchaser shall return any unused portion of those goods.

(c) A reasonable attempt shall be made to return goods to the solicitor's correct street address within seven days of exercising

the right to cancel, providing the solicitor has provided the purchaser with the address. If the solicitor has failed to give a

correct address, no return is required to qualify for a full refund of the purchase price.

(d) If the purchaser has used any portion of the services or goods purchased, the solicitor or telephone soliciting business

shall receive a reasonable allowance for value given. This allowance may be deducted from any refund due the purchaser.

(e) A solicitor shall be jointly and severally liable with the telephone soliciting business for any refund amount due following

the cancellation of a sale made by the solicitor.

(4) For the purposes of this section, “business day” does not include Sunday or a federal or state holiday.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 1
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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14220 Page 56 of 80 § 13-26-5. Right of rescission--Cancellation, UT ST § 13-26-5

Credits

Laws 1990, c. 154, § 5; Laws 1994, c. 189, § 4.

U.C.A. 1953 § 13-26-5, UT ST § 13-26-5

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 2
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§§ 13-26-6, 13-26-7. Repealed by Laws 1994, c. 189, § 7, eff...., UT ST § 13-26-6 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14221 Page 57 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-6

§§ 13-26-6, 13-26-7. Repealed by Laws 1994, c. 189, § 7, eff. May 2, 1994

Currentness

U.C.A. 1953 § 13-26-6, UT ST § 13-26-6

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 1
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§§ 13-26-6, 13-26-7. Repealed by Laws 1994, c. 189, § 7, eff...., UT ST § 13-26-7 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14222 Page 58 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-7

§§ 13-26-6, 13-26-7. Repealed by Laws 1994, c. 189, § 7, eff. May 2, 1994

Currentness

U.C.A. 1953 § 13-26-7, UT ST § 13-26-7

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 1
WEST AW 

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14223 Page 59 of 80 § 13-26-8. Penalties, UT ST § 13-26-8

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-8

§ 13-26-8. Penalties

Currentness

(1)(a) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors,

salespersons, agents, representatives of a solicitor, or independent contractor, who violates this chapter as a first offense is guilty

of a class B misdemeanor.

(b) In the case of a second offense, the person is guilty of a class A misdemeanor.

(c) In the case of three or more offenses, the person is guilty of a third degree felony.

(d)(i) In addition to other penalties under this Subsection (1), the division director may issue a cease and desist order and

impose an administrative fine of up to $2,500 for each violation of this chapter.

(ii) For purposes of Subsection (1)(d)(i), each telephone solicitation made in violation of this chapter is a separate violation.

(iii) All money received through administrative fines imposed under this section shall be deposited in the Consumer

Protection Education and Training Fund created by Section 13-2-8.

(2) Any telephone soliciting business or any person associated with a telephone soliciting business, including solicitors,

salespersons, agents, representatives of a solicitor, or independent contractors, who violates any provision of this chapter shall

be subject to a civil penalty in a court of competent jurisdiction not exceeding $2,500 for each unlawful transaction.

Credits

Laws 1990, c. 154, § 8; Laws 1993, c. 37, § 4; Laws 1994, c. 189, § 5; Laws 1995, c. 26, § 3, eff. May 1, 1995; Laws 2005,

c. 18, § 15, eff. March 8, 2005; Laws 2013, c. 124, § 9, eff. May 14, 2013.

U.C.A. 1953 § 13-26-8, UT ST § 13-26-8

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 1
WEST AW 

§ 13-26-9. Repealed by Laws 1994, c. 189, § 7, eff. May 2, 1994, UT ST § 13-26-9 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14224 Page 60 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-9

§ 13-26-9. Repealed by Laws 1994, c. 189, § 7, eff. May 2, 1994

Currentness

U.C.A. 1953 § 13-26-9, UT ST § 13-26-9

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 1
WEST AW 

§ 13-26-10. Provisions of chapter not exclusive, UT ST § 13-26-10 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14225 Page 61 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-10

§ 13-26-10. Provisions of chapter not exclusive

Currentness

The remedies, duties, prohibitions, and penalties of this chapter are not exclusive and are in addition to all other causes of action,

remedies, and penalties provided by law.

Credits

Laws 1991, c. 184, § 2.

Notes of Decisions (5)

U.C.A. 1953 § 13-26-10, UT ST § 13-26-10

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14226 Page 62 of 80 § 13-26-11. Prohibited practices, UT ST § 13-26-11

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-11

§ 13-26-11. Prohibited practices

Currentness

(1) It is unlawful for any solicitor:

(a) to solicit a prospective purchaser on behalf of a telephone soliciting business that is not registered with the division or

exempt from registration under this chapter;

(b) to use a fictitious personal name in connection with a telephone solicitation;

(c) to make or cause to be made any untrue material statement, or fail to disclose a material fact necessary to make any

statement made not misleading, whether in connection with a telephone solicitation or a filing with the division;

(d) to make or authorize the making of any misrepresentation about its compliance with this chapter to any prospective or

actual purchaser;

(e) to fail to refund within 30 days any amount due a purchaser who exercises the right to cancel under Section 13-26-5; or

(f) to fail to orally advise a purchaser of the purchaser's right to cancel under Section 13-26-5 unless the solicitor is exempt

under Section 13-26-4.

(2) It is unlawful for any telephone soliciting business:

(a) to cause or permit any solicitor to violate any provision of this chapter; or

(b) to use inmates in telephone soliciting operations where inmates have access to personal data about an individual sufficient

to physically locate or contact that individual, such as names, addresses, telephone numbers, Social Security numbers, credit

card information, or physical descriptions.

Credits

Laws 1994, c. 189, § 6; Laws 1998, c. 77, § 3, eff. May 4, 1998; Laws 2005, c. 18, § 16, eff. March 8, 2005; Laws 2013, c.

124, § 10, eff. May 14, 2013.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14227 Page 63 of 80 § 13-26-11. Prohibited practices, UT ST § 13-26-11

U.C.A. 1953 § 13-26-11, UT ST § 13-26-11

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 2
WEST AW 

§ 13-26-12. Consumer complaints are public, UT ST § 13-26-12 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14228 Page 64 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 26. Telephone Fraud Prevention Act (Refs & Annos)

U.C.A. 1953 § 13-26-12

§ 13-26-12. Consumer complaints are public

Currentness

(1) As used in this section, “consumer complaint” means a complaint that:

(a) is filed with the division by a consumer or business;

(b) alleges facts relating to conduct that the division regulates under this chapter; and

(c)(i) alleges a loss to the consumer or business of $3,500 or more; or

(ii) is one of at least 50 other complaints against the same person filed by other consumers or businesses during the four

years immediately preceding the filing of the complaint.

(2) For purposes of determining the number of complaints against the same person under Subsection (1)(c)(ii), the division

may consider complaints filed against multiple corporations, limited liability companies, partnerships, or other business entities

under common ownership to be complaints against the same person.

(3) Notwithstanding Subsection 13-11-7(2) and subject to Subsections (4) and (5), a consumer complaint:

(a) is a public record; and

(b) may not be classified as a private, controlled, or protected record under Title 63G, Chapter 2, Government Records Access

and Management Act.

(4) Subsection (3) does not apply to a consumer complaint:

(a)(i) if the division determines through an administrative proceeding that the consumer complaint is nonmeritorious; and

(ii) beginning when the nonmeritorious determination is made; or

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§ 13-26-12. Consumer complaints are public, UT ST § 13-26-12 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14229 Page 65 of 80 

(b) that has been on file with the division for more than four years.

(5) Before making a consumer complaint that is subject to Subsection (3) or a response described in Subsection (6) available

to the public, the division:

(a) shall redact from the consumer complaint or response any information that would disclose the address, Social Security

number, bank account information, email address, or telephone number of the consumer or business; and

(b) may redact the name of the consumer or business and any other information that could, in the division's judgment, disclose

the identity of the consumer or business filing the consumer complaint.

(6) A person's initial, written response to a consumer complaint that is subject to Subsection (2) is a public record.

Credits

Laws 2015, c. 335, § 2, eff. May 12, 2015.

U.C.A. 1953 § 13-26-12, UT ST § 13-26-12

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14230 Page 66 of 80 

Attachment C 

Business Opportunity Disclosure Act 
Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14231 Page 67 of 80 

Chapter 15. Business Opportunity Disclosure Act

§ 13–15–1. Short Title

§ 13–15–2. Definitions

§ 13–15–3. Administration and Enforcement—Powers—Legal Counsel—Fees—Consumer

Complaints

§ 13–15–4. Information to be Filed by Seller Annually—Representations—Fees

§ 13–15–4.5. Notice of Exemption Filing

§ 13–15–5. Disclosure Statement Furnished to Buyer—Contents

§ 13–15–6. Failure to File Disclosures—Relief Where Seller Fails to Comply with Chapter—

Relief Where Division Granted Judgment or Injunction—Administrative Fines

§ 13–15–7. Civil Penalty for Violation of Cease and Desist Order
WEST AW 

Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14232 Page 68 of 80 § 13-15-1. Short title, UT ST § 13-15-1

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-1

§ 13-15-1. Short title

Currentness

This act shall be known and may be cited as the “Business Opportunity Disclosure Act.”

Credits

Laws 1981, c. 69, § 1.

U.C.A. 1953 § 13-15-1, UT ST § 13-15-1

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14233 Page 69 of 80 § 13-15-2. Definitions, UT ST § 13-15-2

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-2

§ 13-15-2. Definitions

Currentness

As used in this chapter:

(1)(a) “Assisted marketing plan” means the sale or lease of any products, equipment, supplies, or services that are sold to the

purchaser upon payment of an initial required consideration of $500 or more for the purpose of enabling the purchaser to start

a business, and in which the seller represents:

(i) that the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending

machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises

neither owned nor leased by the purchaser or seller;

(ii) that the seller will purchase any or all products made, produced, fabricated, grown, or modified by the purchaser, using

in whole or in part the supplies, services, or chattels sold to the purchaser;

(iii) that the seller will provide the purchaser with a guarantee that the purchaser will receive income from the assisted

marketing plan that exceeds the price paid for the assisted marketing plan, or repurchase any of the products, equipment,

supplies, or chattels supplied by the seller if the purchaser is dissatisfied with the assisted marketing plan; or

(iv) that upon payment by the purchaser of a fee or sum of money, which exceeds $500 to the seller, the seller will provide

a sales program or marketing program that will enable the purchaser to derive income from the assisted marketing plan

that exceeds the price paid for the marketing plan.

(b) “Assisted marketing plan” does not include:

(i) the sale of an ongoing business when the owner of that business sells and intends to sell only that one assisted marketing

plan;

(ii) not-for-profit sale of sales demonstration equipment, materials, or samples for a total price of $500 or less; or

(iii) the sale of a package franchise or a product franchise defined by and in compliance with Federal Trade Commission

rules governing franchise and business opportunity ventures.

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(c) As used in Subsection (1)(a)(iii) “guarantee” means a written agreement, signed by the purchaser and seller, disclosing

the complete details and any limitations or exceptions of the agreement.

(2) “Business opportunity” means an assisted marketing plan subject to this chapter.

(3) “Division” means the Division of Consumer Protection of the Department of Commerce.

(4)(a) “Initial required consideration” means the total amount a purchaser is obligated to pay under the terms of the assisted

marketing plan, either prior to or at the time of delivery of the products, equipment, supplies, or services, or within six months

of the commencement of operation of the assisted marketing plan by the purchaser. If payment is over a period of time, “initial

required consideration” means the sum of the down payment and the total monthly payments.

(b) “Initial required consideration” does not mean the not-for-profit sale of sales demonstration equipment, materials, or

supplies for a total price of less than $500.

(5) “Person” means any natural person, corporation, partnership, organization, association, trust, or any other legal entity.

(6) “Purchaser” means a person who becomes obligated to pay for an assisted marketing plan.

(7) “Registered trademark” or “service mark” means a trademark, trade name, or service mark registered with the United States

Patent and Trademark Office, or Utah, or the state of incorporation if a corporation.

(8) “Seller” means a person who sells or offers to sell an assisted marketing plan.

Credits

Laws 1981, c. 69, § 1; Laws 1983, c. 58, § 10; Laws 1986, c. 130, § 1; Laws 1989, c. 225, § 7; Laws 1995, c. 85, § 1, eff. May

1, 1995; Laws 2001, c. 196, § 2, eff. April 30, 2001; Laws 2012, c. 152, § 3, eff. May 8, 2012.

Notes of Decisions (4)

U.C.A. 1953 § 13-15-2, UT ST § 13-15-2

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 2
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§ 13-15-3. Administration and enforcement--Powers--Legal..., UT ST § 13-15-3 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14235 Page 71 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-3

§ 13-15-3. Administration and enforcement--

Powers--Legal counsel--Fees--Consumer complaints

Currentness

(1) The division shall administer and enforce this chapter. In the exercise of its responsibilities, the division shall enjoy the

powers, and be subject to the constraints, set forth in Title 13, Chapter 2, Division of Consumer Protection.

(2) The attorney general, upon request, shall give legal advice to, and act as counsel for, the division in the exercise of its

responsibilities under this chapter.

(3) All fees collected under this chapter shall be deposited in the Commerce Service Account created by Section 13-1-2.

(4)(a) As used in this Subsection (4), “consumer complaint” means a complaint that:

(i) is filed with the division by a consumer or business;

(ii) alleges facts relating to conduct that the division regulates under this chapter; and

(iii)(A) alleges a loss to the consumer or business of $3,500 or more; or

(B) is one of at least 50 other complaints against the same person filed by other consumers or businesses during the four

years immediately preceding the filing of the complaint.

(b) For purposes of determining the number of complaints against the same person under Subsection (4)(a)(iii)(B), the division

may consider complaints filed against multiple corporations, limited liability companies, partnerships, or other business

entities under common ownership to be complaints against the same person.

(c) Notwithstanding Subsection 13-11-7(2) and subject to Subsections (4)(d) and (e), a consumer complaint:

(i) is a public record; and

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§ 13-15-3. Administration and enforcement--Powers--Legal..., UT ST § 13-15-3 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14236 Page 72 of 80 

(ii) may not be classified as a private, controlled, or protected record under Title 63G, Chapter 2, Government Records

Access and Management Act.

(d) Subsection (4)(c) does not apply to a consumer complaint:

(i)(A) if the division determines through an administrative proceeding that the consumer complaint is nonmeritorious; and

(B) beginning when the nonmeritorious determination is made; or

(ii) that has been on file with the division for more than four years.

(e) Before making a consumer complaint that is subject to Subsection (4)(c) or a response described in Subsection (4)(f)

available to the public, the division:

(i) shall redact from the consumer complaint or response any information that would disclose the address, Social Security

number, bank account information, email address, or telephone number of the consumer or business; and

(ii) may redact the name of the consumer or business and any other information that could, in the division's judgment,

disclose the identity of the consumer or business filing the consumer complaint.

(f) A person's initial, written response to a consumer complaint that is subject to Subsection (4)(c) is a public record.

Credits

Laws 1981, c. 69, § 1; Laws 1983, c. 58, § 11; Laws 1995, c. 85, § 2, eff. May 1, 1995; Laws 2010, c. 278, § 12, eff. May 11,

2010; Laws 2015, c. 335, § 1, eff. May 12, 2015.

U.C.A. 1953 § 13-15-3, UT ST § 13-15-3

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

 © 2021 Thomson Reuters. No claim to original U.S. Government Works. 2
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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14237 Page 73 of 80 § 13-15-4. Information to be filed by seller..., UT ST § 13-15-4

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-4

§ 13-15-4. Information to be filed by seller annually--Representations--Fees

Currentness

(1) A seller of an assisted marketing plan shall annually file the following information with the division:

(a) the name, address, and principal place of business of the seller, and the name, address, and principal place of business of

the parent or holding company of the seller, if any, who is responsible for statements made by the seller;

(b) the trademarks, trade names, service marks, or advertising or other commercial symbols that identify the products,

equipment, supplies, or services to be offered, sold, or distributed by the prospective purchaser;

(c) an individual detailed statement covering the past five years of the business experience of each of the seller's current

directors and executive officers and an individual statement covering the same period for the seller and the seller's parent

company, if any, including the length of time each:

(i) has conducted a business of the type advertised or solicited for operation by a prospective purchaser;

(ii) has offered or sold the assisted marketing plan; and

(iii) has offered for sale or sold assisted marketing plans in other lines of business, together with a description of the other

lines of business;

(d)(i) a statement of the total amount that shall be paid by the purchaser to obtain or commence the business opportunity such

as initial fees, deposits, down payments, prepaid rent, and equipment and inventory purchases; and

(ii) if all or part of the fees or deposits described in Subsection (1)(d)(i) are returnable, the conditions under which the

fees or deposits are returnable;

(e) a complete statement of the actual services the seller will perform for the purchaser;

(f) a complete statement of the oral, written, or visual representations that will be made to prospective purchasers about

specific levels of potential sales, income, gross and net profits, or any other representations that suggest a specific level;

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(g) a complete description of the type and length of any training promised to prospective purchasers;

(h)(i) a complete description of any services promised to be performed by the seller in connection with the placement of the

equipment, products, or supplies at any location from which they will be sold or used; and

(ii) a complete description of the services described in Subsection (1)(h)(i) together with any agreements that will be made

by the seller with the owner or manager of the location where the purchaser's equipment, products, or supplies will be

placed;

(i) a statement that discloses any person identified in Subsection (1)(a) who:

(i) has been convicted of a felony or misdemeanor or pleaded nolo contendere to a felony or misdemeanor charge if the

felony or misdemeanor involved fraud, embezzlement, fraudulent conversion, or misappropriation of property;

(ii) has been held liable or consented to the entry of a stipulated judgment in a civil action based upon fraud, embezzlement,

fraudulent conversion, misappropriation of property, or the use of untrue or misleading representations in the sale or

attempted sale of any real or personal property, or upon the use of any unfair, unlawful or deceptive business practice; or

(iii) is subject to an injunction or restrictive order relating to business activity as the result of an action brought by a public

agency;

(j) a financial statement that is less than 13 months old of the seller signed by one of the seller's officers, directors, trustees,

or general or limited partners, under a declaration that certifies that to the signatory's knowledge and belief the information

in the financial statement is true and accurate;

(k) a copy of the entire marketing plan contract;

(l) the number of marketing plans sold to date, and the number of plans under negotiation;

(m) geographical information, including the states in which the seller's assisted marketing plans have been sold, and the

number of plans in each state;

(n) the total number of marketing plans that were cancelled by the seller in the past 12 months; and

(o) the number of marketing plans that were voluntarily terminated by purchasers within the past 12 months and the total

number of such voluntary terminations to date.

(2) The seller of an assisted marketing plan filing information under Subsection (1) shall pay an annual fee as determined by

the department in accordance with Section 63J-1-504 when the seller files the information required under Subsection (1).

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(3)(a) Before commencing business in this state, a seller of an assisted marketing plan shall file the information required under

Subsection (1) and receive from the division proof of receipt of the filing.

(b) A seller shall annually comply with Subsections (1) and (2) by no later than the anniversary of the day on which the seller

receives from the division proof of receipt of the filing.

(4) A seller of an assisted marketing plan claiming an exemption from filing under this chapter shall file a notice of claim of

exemption from filing with the division. A seller claiming an exemption from filing bears the burden of proving the exemption.

The division shall collect a fee for filing a notice of claim of exemption, as determined by the department in accordance with

Section 63J-1-504.

(5) A representation described in Subsection (1)(f) shall be relevant to the geographic market in which the business opportunity

is to be located. When the statements or representations are made, a warning after the representation in not less than 12 point

upper and lower case boldface type shall appear as follows:

“CAUTION

No guarantee of earnings or ranges of earnings can be made. The number of purchasers who have earned through this business

an amount in excess of the amount of their initial payment is at least _____ which represents _____% of the total number

of purchasers of this business opportunity.”

Credits

Laws 1981, c. 69, § 1; Laws 1983, c. 58, § 12; Laws 1995, c. 85, § 3, eff. May 1, 1995; Laws 2008, c. 382, § 135, eff. May

5, 2008; Laws 2009, c. 183, § 14, eff. May 12, 2009; Laws 2010, c. 378, § 208, eff. May 11, 2010; Laws 2017, c. 98, § 3,

eff. May 9, 2017.

Notes of Decisions (13)

U.C.A. 1953 § 13-15-4, UT ST § 13-15-4

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-4.5

§ 13-15-4.5. Notice of exemption filing

Currentness

(1)(a) Any franchise exempt from this chapter pursuant to Subsection 13-15-2(1)(b)(iii) shall, prior to offering for sale or

selling a franchise to be located in this state or to a resident of this state, file with the division a notice that the franchisor is in

substantial compliance with the requirements of the Federal Trade Commission rule found at Title 16, Chapter I, Subchapter d,

Trade Regulation Rules, Part 436, Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity

Ventures, together with a filing fee determined by the department pursuant to Section 63J-1-504, not to exceed $100.

(b) The notice shall state:

(i) the name of the applicant;

(ii) the name of the franchise;

(iii) the name under which the applicant intends to or does transact business, if different than the name of the franchise;

(iv) the applicant's principal business address; and

(v) the applicant's federal employer identification number.

(2)(a) The initial exemption granted under this section is for a period of one year from the date of filing the notice.

(b) The exemption may be renewed each year for an additional one-year period upon filing a notice for renewal and paying

a renewal fee determined pursuant to Section 63J-1-504, not to exceed $100.

(3) The division may make rules to implement this section.

Credits

Laws 1995, c. 85, § 4, eff. May 1, 1995; Laws 2008, c. 382, § 136, eff. May 5, 2008; Laws 2009, c. 183, § 15, eff. May 12, 2009.

U.C.A. 1953 § 13-15-4.5, UT ST § 13-15-4.5

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Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14241 Page 77 of 80 § 13-15-4.5. Notice of exemption filing, UT ST § 13-15-4.5

Current through 2021 First Special Session.

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§ 13-15-5. Disclosure statement furnished to buyer--Contents, UT ST § 13-15-5 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14242 Page 78 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-5

§ 13-15-5. Disclosure statement furnished to buyer--Contents

Currentness

All the information required under Section 13-15-4 shall be contained in a single disclosure statement or prospectus which shall

be provided to any prospective purchaser at least 10 business days prior to the earlier of:

(1) the execution by prospective purchaser of any agreement imposing a binding legal obligation on such prospective purchaser

by which the seller knows or should know, in connection with the sale or proposed sale of the “assisted marketing plan”; or

(2) the payment by a prospective purchaser, by which the seller knows or should know of any consideration in connection with

the sale or proposed sale of the “assisted market plan.” The disclosure statement or prospectus may not contain any material or

information other than that required under Section 13-15-4. However, the seller may give prospective purchasers nondeceptive

information other than that contained in the disclosure statement or prospectus if it does not contradict the information required

to appear in the disclosure statement or prospectus. A cover sheet attached to the disclosure statement or prospectus shall

conspicuously state the name of the seller, the date of issuance of the disclosure statement or prospectus, and a notice printed

in not less than 12 point upper and lower case boldface type as follows:

INFORMATION FOR PURCHASE OF A MARKETING PLAN:

To protect you, the State Division of Consumer Protection has required your seller to give you this information. The State

Division of Consumer Protection has not verified this information as to its accuracy. The notice may contain additional

precautions deemed necessary and pertinent. The seller, in lieu of the information requested by Section 13-15-4, may file with

the commission and provide to prospective purchasers certified disclosure documents authorized for use by the Federal Trade

Commission pursuant to Title 16, Chapter I, Subchapter d, Trade Regulation Rules, Part 436, “Disclosure Requirements and

Prohibitions Concerning Franchising and Business Opportunity Ventures.”

Credits

Laws 1981, c. 69, § 1; Laws 1983, c. 58, § 13; Laws 1987, c. 92, § 25; Laws 2010, c. 378, § 209, eff. May 11, 2010.

Notes of Decisions (6)

U.C.A. 1953 § 13-15-5, UT ST § 13-15-5

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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§ 13-15-6. Failure to file disclosures--Relief where seller fails to..., UT ST § 13-15-6 Case 2:19-cv-00713-DAK-DAO Document 365 Filed 02/15/22 PageID.14243 Page 79 of 80 

West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-6

§ 13-15-6. Failure to file disclosures--Relief where seller fails to comply with

chapter--Relief where division granted judgment or injunction--Administrative fines

Currentness

(1) If a seller fails to file the disclosures required under Section 13-15-4, or fails after demand by the division to file the disclosure

within 15 days, the division, consistent with Section 13-2-5, shall begin adjudicative proceedings and shall issue a cease and

desist order.

(2) Any purchaser of a business opportunity from a seller who does not comply with this chapter is entitled, in an appropriate

court of competent jurisdiction, to rescission of the contract, to an award of a reasonable attorney's fee and costs of court in an

action to enforce the right of rescission, and to the amount of actual damages or $2,000, whichever is greater.

(3) In the event the division is granted judgment or injunctive relief in an appropriate court of competent jurisdiction, the

division, in addition to any other relief, is entitled to an award of reasonable attorney's fees, costs of court, and investigative fees.

(4)(a) In addition to other penalties under this chapter, and to its other enforcement powers under Title 13, Chapter 2, Division of

Consumer Protection, the division director may impose an administrative fine of up to $2,500 for each violation of this chapter.

(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection

Education and Training Fund created by Section 13-2-8.

Credits

Laws 1981, c. 69, § 1; Laws 1983, c. 58, § 14; Laws 1986, c. 130, § 2; Laws 1987, c. 161, § 31; Laws 1995, c. 85, § 5, eff.

May 1, 1995; Laws 2006, c. 47, § 1, eff. March 10, 2006.

Notes of Decisions (2)

U.C.A. 1953 § 13-15-6, UT ST § 13-15-6

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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West's Utah Code Annotated

Title 13. Commerce and Trade

Chapter 15. Business Opportunity Disclosure Act

U.C.A. 1953 § 13-15-7

§ 13-15-7. Civil penalty for violation of cease and desist order

Currentness

Any person who violates any cease and desist order issued under this chapter is subject to a civil penalty not to exceed $5,000

for each violation. Civil penalties authorized by this chapter may be imposed in any civil action brought by the attorney general

or by a county attorney under this section. All penalties received shall be deposited in the Consumer Protection Education and

Training Fund created in Section 13-2-8. No action to collect a civil penalty may be commenced more than five years after

the date the penalty was imposed.

Credits

Laws 1983, c. 58, § 15; Laws 1995, c. 85, § 6, eff. May 1, 1995.

U.C.A. 1953 § 13-15-7, UT ST § 13-15-7

Current through 2021 First Special Session.

End of Document © 2021 Thomson Reuters. No claim to original U.S. Government Works.

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