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DELILAH VINZON, Cal. Bar No. 222681 

 dvinzon@ftc.gov 

ROBERT J. QUIGLEY, Cal. Bar No. 302879 

 rquigley@ftc.gov 

Federal Trade Commission 

10990 Wilshire Blvd., Suite 400 

Los Angeles, CA 90024 

Tel: (310) 824-4300; Fax: (310) 824-4380 

Attorneys for FEDERAL TRADE COMMISSION 

UNITED STATES DISTRICT COURT 

DISTRICT OF NEVADA 

) FEDERAL TRADE COMMISSION, Case No. 2:23-cv-1412

) 

) STIPULATION AND [PROPOSED] Plaintiff, ) ORDER FOR PERMANENT 

v. ) INJUNCTION, MONETARY ) JUDGMENT, AND OTHER RELIEF

HEY DUDE INC., a corporation, ) 

) 

 Defendant. ) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

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

Complaint for Permanent Injunction, Monetary Relief, and Other Relief 

(“Complaint”), for a permanent injunction, monetary relief, and other relief in this 




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matter, pursuant to Sections 5(a), 13(b), and 19 of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. §§ 45(a), 53(b), and 57b. The Commission and 

Defendant stipulate to the entry of the Stipulated Order for Permanent Injunction, 

Monetary Judgment, and Other Relief (“Order”) to resolve all matters in dispute in 

this action between them. 

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendant participated in deceptive or 

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

and of the Commission’s Trade Regulation Rule Concerning the Sale of Mail, 

Internet or Telephone Order Merchandise (the “Rule”), 16 C.F.R. Part 435, by 

failing to offer consumers, clearly and conspicuously and without prior demand, an 

option to consent to a delay in shipment or to cancel an order and receive a prompt 

refund when Defendant failed to ship properly completed orders for merchandise 

within the timeframe required by the Rule, and failing to deem an order cancelled 

and make a prompt refund as required by the Rule. 

3. The Complaint also charges that Defendant participated in deceptive 

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

§ 45, by misrepresenting that the product reviews on the Hey Dude Shoes website 

accurately reflected the views of all purchasers who submitted reviews of the 

products when, in fact, Defendant was suppressing negative reviews. 

4. Defendant neither admits nor denies any of the allegations in the 

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

action, Defendant admits the facts necessary to establish jurisdiction. 

 

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5. Defendant waives any claim that it may have under the Equal Access 

to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through 

the date of this Order, and agrees to bear its own costs and attorney fees. 

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

challenge or contest the validity of this Order. 

DEFINITIONS 

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

A. “Clearly and Conspicuously” means that a required disclosure is 

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

consumers, including in all of the following ways: 

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

disclosure must be made through the same means through which the 

communication is presented. In any communication made through 

both visual and audible means, such as a television advertisement, the 

disclosure must be presented simultaneously in both the visual and 

audible portions of the communication even if the representation 

requiring the disclosure is made in only one means. 

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

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

accompanying text or other visual elements so that it is easily noticed, 

read, and understood. 

3. An audible disclosure, including by telephone or streaming 

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

ordinary consumers to easily hear and understand it. 

4. In any communication using an interactive electronic medium, 

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




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5. The disclosure must use diction and syntax understandable to 

ordinary consumers and must appear in each language in which the 

representation that requires the disclosure appears. 

6. The disclosure must comply with these requirements in each 

medium through which it is received, including all electronic devices 

and face-to-face communications. 

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

inconsistent with, anything else in the communication. 

8. When the representation or sales practice targets a specific 

audience, such as children, the elderly, or the terminally ill, “ordinary 

consumers” includes reasonable members of that group. 

B. “Defendant” means Defendant, Hey Dude Inc., formerly known as 

Happy One, LLC, on its own behalf and as successor-in-interest to Lucky Top, 

Inc., which formerly operated under the d/b/a Hey Dude Shoes USA, and its 

successors and assigns. 

C. “Mail, Internet or Telephone Order Sale” means any sale in which the 

buyer has ordered merchandise from Defendant by mail, via the Internet, or by 

Telephone, regardless of the method of payment or the method used to solicit the 

order. Exceptions: 

1. Subscriptions, such as magazine sales, ordered for serial 

delivery, after the initial Shipment is made in compliance with this 

Order; 

2. Orders of seeds and growing plants; 

3. Orders made on a collect-on-delivery (C.O.D.) basis; and 

4. Transactions that the Defendant can demonstrate are governed 

by the Commission’s Trade Regulation Rule entitled “Use of 

Prenotification Negative Option Plans,” 16 C.F.R. Part 425. 




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D. “Prompt,” in the context of a Refund, means a Refund sent by any 

means at least as fast and reliable as first class mail within 7 days of the date on 

which the buyer’s right to refund vests under the provisions of this Order. 

Provided, however, that where Defendant cannot provide a Refund by the same 

method payment was tendered, Prompt Refund means a Refund sent in the form of 

cash, check, or money order, by any means at least as fast and reliable as first class 

mail, within 7 days of the date on which Defendant discovers Defendant cannot 

provide a Refund by the same method as payment was tendered. 

E. “Receipt of a Properly Completed Order” means, where the buyer 

tenders full or partial payment in the proper amount in the form of cash, check or 

money order; authorization from the buyer to charge an existing charge account; or 

other payment methods, the time at which Defendant receives both said payment 

and an order from the buyer containing all of the information needed by Defendant 

to process and ship the order. Provided, however, that where Defendant receives 

notice that a payment by means other than cash or credit as tendered by the buyer 

has been dishonored or that the buyer does not qualify for a credit sale, Receipt of 

a Properly Completed Order means the time at which: (1) Defendant receives 

notice that a payment by means other than cash or credit in the proper amount 

tendered by the buyer has been honored; (2) The buyer tenders cash in the proper 

amount; or (3) Defendant receives notice that the buyer qualifies for a credit sale. 

F. “Refund” means: 

1. Where the buyer tendered full payment for the unshipped 

merchandise in the form of cash, check, or money order, a return of 

the amount tendered in the form of cash, check, or money order sent 

to the buyer; 

2. Where there is a credit sale: 

a) And Defendant is a creditor, a copy of a credit 

memorandum or the like or an account statement sent to the 




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buyer reflecting the removal or absence of any remaining 

charge incurred as a result of the sale from the buyer’s account; 

b) And a third party is the creditor, an appropriate credit 

memorandum or the like sent to the third party creditor which 

will remove the charge from the buyer’s account and a copy of 

the credit memorandum or the like sent to the buyer that 

includes the date that Defendant sent the credit memorandum or 

the like to the third party creditor and the amount of the charge 

to be removed, or a statement from Defendant acknowledging 

the cancellation of the order and representing that it has not 

taken any action regarding the order which will result in a 

charge to the buyer’s account with the third party; 

c) And the buyer tendered partial payment for the 

unshipped merchandise in the form of cash, check, or money 

order, a return of the amount tendered in the form of cash, 

check, or money order sent to the buyer. 

3. Where the buyer tendered payment for the unshipped 

merchandise by any means other than those enumerated in (1) or (2) 

of this definition: 

a) Instructions sent to the entity that transferred payment to 

Defendant instructing that entity to return to the buyer the 

amount tendered in the form tendered and a statement sent to 

the buyer setting forth the instructions sent to the entity, 

including the date of the instructions and the amount to be 

returned to the buyer; 

b) A return of the amount tendered in the form of cash, 

check, or money order sent to the buyer; or 




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c) A statement from Defendant sent to the buyer 

acknowledging the cancellation of the order and representing 

that Defendant has not taken any action regarding the order 

which will access any of the buyer’s funds. 

G. “Shipment” means the act by which the merchandise is physically 

placed in the possession of the carrier. 

H. “Telephone” refers to any direct or indirect use of the telephone to 

order merchandise, regardless of whether the telephone is activated by, or the 

language used is that of human beings, machines, or both. 

I. “Time of Solicitation” of an order means that time when Defendant 

has: (1) Mailed or otherwise disseminated the solicitation to a prospective 

purchaser; (2) Made arrangements for an advertisement containing the solicitation 

to appear in a newspaper, magazine or the like or on radio or television which 

cannot be changed or cancelled without incurring substantial expense; or (3) Made 

arrangements for the printing of a catalog, brochure or the like which cannot be 

changed without incurring substantial expense, in which the solicitation in question 

forms an insubstantial part. 

ORDER 

I. INJUNCTION CONCERNING MAIL, INTERNET, OR 

TELEPHONE MERCHANDISE ORDERS 

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

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

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

connection with Mail, Internet, or Telephone Order Sales are permanently 

restrained and enjoined from: 




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A. The following: 

(with regard to the original Shipment date:) 

1. Soliciting any order for the sale of merchandise unless, at the 

Time of Solicitation, Defendant has a reasonable basis to expect that it 

will be able to ship any ordered merchandise to the buyer by that 

original Shipment date, which is either: 

i) Within that time Clearly and Conspicuously stated in any 

such solicitation; or 

ii) If no time is Clearly and Conspicuously stated, within 30 

days after Receipt of a Properly Completed Order from the 

buyer. 

(with regard to any revised Shipment date:) 

2. Providing any buyer with any revised shipping date, unless, at 

the time the representation is made, Defendant has a reasonable basis 

for making such representation. 

3. Informing any buyer that Defendant is unable to make any 

representation regarding the length of any delay unless: 

i) Defendant has a reasonable basis for so informing the 

buyer; and 

ii) Defendant informs the buyer of the reason or reasons for 

the delay. 

B. In relation to delays: 

(with regard to any first notice of inability to ship:) 

1. Where Defendant is unable to ship merchandise by the original 

Shipment date, failing to offer to the buyer, Clearly and 

Conspicuously and without prior demand, an option either to consent 

to a delay in shipping or to cancel the buyer’s order and receive a 

Prompt Refund. Said offer must be made within a reasonable time 




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after Defendant first becomes aware of an inability to ship within the 

original Shipment date, but in no event later than the original 

Shipment date. 

i) Any offer to the buyer of such an option must fully 

inform the buyer regarding the buyer’s right to cancel the order 

and to obtain a Prompt Refund and provide a first definite 

revised shipping date, but where Defendant lacks a reasonable 

basis for providing such a first definite revised shipping date 

the notice must inform the buyer that Defendant is unable to 

make any representation regarding the length of the delay. 

ii) Where Defendant has provided a first definite revised 

shipping date which is no more than 30 days later than the 

original Shipment date, the offer of said option must expressly 

inform the buyer that, unless Defendant receives, prior to 

Shipment and prior to the expiration of the first definite revised 

shipping date, a response from the buyer rejecting the delay and 

cancelling the order, the buyer will be deemed to have 

consented to a delayed Shipment on or before the first definite 

revised shipping date. 

iii) Where Defendant has provided a first definite revised 

shipping date which is more than 30 days later than the original 

Shipment date or where Defendant is unable to provide a 

definite revised shipping date and therefore inform the buyer 

that Defendant is unable to make any representation regarding 

the definite length of the delay, the offer of said option must 

also expressly inform the buyer that the buyer’s order will 

automatically be deemed to have been cancelled unless: 




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(A) Defendant has shipped the merchandise within 30 

days of the original Shipment date, and has received no 

cancellation prior to Shipment; or 

(B) Defendant has received from the buyer within 30 

days of said applicable time, a response specifically 

consenting to said shipping delay. Where Defendant 

informs the buyer that it is unable to make any 

representation regarding the length of the delay, the 

buyer must be expressly informed that, should the buyer 

consent to an indefinite delay, the buyer will have a 

continuing right to cancel the buyer’s order at any time 

after the original Shipment date and receive a Prompt 

Refund by so notifying Defendant prior to actual 

Shipment. 

iv) Nothing in this Subsection shall prohibit Defendant from 

furnishing a definite revised shipping date pursuant to (B)(1)(i) 

of this Section, and requesting, simultaneously with or at the 

offer of an option pursuant to (B)(1) of this Section, the buyer’s 

express consent to a further unanticipated delay beyond the 

definite revised shipping date in the form of a response from the 

buyer specifically consenting to said further delay. Provided, 

however, that where Defendant solicits consent to an 

unanticipated indefinite delay the solicitation shall expressly 

inform the buyer that, should the buyer so consent to an 

indefinite delay, the buyer shall have a continuing right to 

cancel the buyer’s order at any time after the definite revised 

shipping date by so notifying Defendant prior to actual 

Shipment. 




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(with regard to any further notice of inability to ship:) 

2. Where Defendant is unable to ship merchandise on or before 

the first definite revised shipping date, failing to offer to the buyer, 

Clearly and Conspicuously and without prior demand, a renewed 

option either to consent to a further delay or to cancel the order and to 

receive a Prompt Refund. Said offer must be made within a 

reasonable time after Defendant becomes aware of the inability to ship 

before the said definite revised shipping date, but in no event later 

than the expiration of the definite revised shipping date. 

 Provided, however, that where Defendant previously has 

obtained the buyer’s express consent to an unanticipated delay until a 

specific date beyond the definite revised shipping date, pursuant to 

(B)(1)(iv) of this Section or to a further delay until a specific date 

beyond the definite revised shipping date pursuant to (B)(2) of this 

Section, that date to which the buyer has expressly consented 

supersedes the definite revised shipping date for purposes of (B)(2) of 

this Section. 

i) Any offer to the buyer of said renewed option must 

provide the buyer with a new definite revised shipping date, but 

where Defendant lacks a reasonable basis for providing a new 

definite revised shipping date, the notice must inform the buyer 

that Defendant is unable to make any representation regarding 

the length of the further delay. 

ii) The offer of a renewed option must expressly inform the 

buyer that, unless Defendant receives, prior to the expiration of 

the old definite revised shipping date or any date superseding 

the old definite revised shipping date, notification from the 

buyer specifically consenting to the further delay, the buyer will 




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be deemed to have rejected any further delay, and to have 

cancelled the order if Defendant is in fact unable to ship prior to 

the expiration of the old definite revised shipping date or any 

date superseding the old definite revised shipping date. 

 Provided, however, that where Defendant offers the 

buyer the option to consent to an indefinite delay, the offer 

must expressly inform the buyer that, should the buyer so 

consent to an indefinite delay, the buyer has a continuing right 

to cancel the buyer’s order at any time and receive a Prompt 

Refund after the old definite revised shipping date or any date 

superseding the old definite revised shipping date. 

iii) Subsection (B)(2) does not apply to any situation where 

Defendant, pursuant to (B)(1)(iv) of this Section, has previously 

obtained consent from the buyer to an indefinite extension 

beyond the first revised shipping date. 

3. Wherever a buyer has the right to exercise any option under this 

provision or to cancel an order by so notifying Defendant prior to 

Shipment, failing to furnish the buyer with an adequate mechanism at 

the Defendant’s expense, to exercise such option or to notify the 

Defendant regarding cancellation. 

4. Nothing in this Section prevents Defendant, where it is unable 

to make Shipment within the original Shipment date or within a delay 

period consented to by the buyer, from deciding to consider the order 

cancelled and providing the buyer with notice of said decision within 

a reasonable time after becoming aware of said inability to ship, and 

with a Prompt Refund. 




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C. (with regard to failure to cancel:) 

Failing to treat an order as cancelled and to make a Prompt Refund to the 

buyer whenever:

1. Defendant receives, prior to Shipment, notification from the 

buyer cancelling the order pursuant to any option, renewed option or 

continuing option under this Order;

2. Defendant has, pursuant to (B)(1)(iii), provided the buyer with 

a first definite revised shipping date which is more than 30 days later 

than the original Shipment date, or has notified the buyer that it is 

unable to make any representation regarding the length of the delay, 

and Defendant:

i) Has not shipped the merchandise within 30 days of the 

original Shipment date, and 

ii) Has not received the buyer’s express consent to said 

shipping delay within said 30 days;

3. Defendant is unable to ship within the applicable time set forth 

in (B)(2) of this Section, and has not received, within the said 

applicable time, the buyer’s consent to the further delay;

4. Defendant has notified the buyer of an inability to make 

Shipment and has indicated the decision not to ship the merchandise;

5. Defendant fails to offer any option prescribed in this Section 

and have not shipped the merchandise within the original Shipment 

date; or

6. Defendant has provided the buyer with a first definite revised 

shipping date of 30 days or less than the original Shipment date, and 

Defendant has not shipped the merchandise or received the buyer’s 

consent to a further delay by the first definite revised shipping date.

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D. (with regard to compliance:)

In any action brought by the FTC alleging a violation of this Order, the 

failure of Defendant to have records or other documentary proof establishing its

use of systems and procedures which assure, in the ordinary course of business, the 

Shipment of merchandise within any applicable time set forth in this Section and 

compliance with any other requirement of this Section will create a rebuttable 

presumption that Defendant failed to comply with said requirement.

II. INJUNCTION TO PREVENT CERTAIN MERCHANDISE 

ORDER PRACTICES

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

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

them, who receive notice of this Order, whether acting directly or indirectly, in 

connection with Mail, Internet, or Telephone Order Sales, are permanently 

restrained and enjoined from:

A. Making any representation, expressly or by implication, that the 

merchandise will be shipped faster than 30 days, without disclosing, Clearly and 

Conspicuously, and before payment, the date by which or number of days in which 

the merchandise will be shipped or received;

B. Failing to provide, and to Clearly and Conspicuously disclose, an 

adequate mechanism for the buyer to cancel any merchandise not received by such 

date or time period disclosed. The mechanism must not be difficult, confusing, or 

time consuming; 

C. Where Defendant must offer a Prompt Refund, offering anything 

other than a Prompt Refund such as a gift card; and

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

implication:

1. The date, time period, or speed by which the merchandise will 

be shipped or received;

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2. The length of, or reason for, any shipping delay; 

3. Any material aspect of any refund, return, or cancellation 

policy; or 

4. Any other material fact. 

III. INJUNCTION CONCERNING MISREPRESENTATIONS 

REGARDING REVIEWS 

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

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

them, who receive notice of this Order, whether acting directly or indirectly, in 

connection with the advertising, promotion, offering for sale, or sale of any product 

must not make any misrepresentation, expressly or by implication, about product 

reviews or endorsements of the product, including any misrepresentation: 

A. That product reviews on Defendant’s website accurately reflect the 

views of all purchasers who submitted reviews of Defendant’s products on the 

website; 

B. That product reviews or endorsements of any products are unedited; 

C. That product reviews or endorsements of any products are presented 

regardless of the endorser’s opinion or rating; or 

D. About how product reviews factor into any composite or overall rating 

of a product. 

IV. INJUNCTION CONCERNING DISPLAY OF PRODUCT REVIEWS 

IT IS FURTHER ORDERED that Defendant must display, on each of its 

websites displaying product reviews, all reviews related to products currently 

offered for sale that are or were submitted by consumers to such website, including 

all reviews related to Defendant’s customer service, delivery, returns, or exchanges 

and all reviews that Defendant or its agents previously withheld from public view. 

Provided, however, that Defendant: (a) is not required to display reviews that 

contain (i) unlawful, profane, obscene, vulgar, or sexually explicit content, (ii) 




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content that is inappropriate with respect to race, gender, sexuality, or ethnicity, 

(iii) the personal information or likeness of another person; (iv) trade secrets or 

privileged or confidential commercial or financial information, so long as the 

criteria for withholding reviews are applied uniformly to all reviews submitted to 

such website; and (b) are not required to offer the opportunity to submit reviews 

for any or every product offered for sale on such website. 

V. MONETARY JUDGMENT 

 IT IS FURTHER ORDERED that: 

A. Judgment in the amount of One Million Nine Hundred Fifty-Three 

Thousand Nine Hundred Sixty-Seven Dollars and Eight Cents ($1,953,967.08) is 

entered in favor of the Commission against Defendant as monetary relief. 

B. Defendant is ordered to pay to the Commission One Million Nine 

Hundred Fifty-Three Thousand Nine Hundred Sixty-Seven Dollars and Eight 

Cents ($1,953,967.08), which, as Defendant stipulates, its undersigned counsel 

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

payment must be made within 7 days of entry of this Order by electronic fund 

transfer in accordance with instructions previously provided by a representative of 

the Commission. 

VI. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

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

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

the return of any assets. 

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

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

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. 




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

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

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

estoppel effect for such purposes. 

D. Defendant acknowledges that its Taxpayer Identification Numbers or 

Employer Identification Numbers, which Defendant previously submitted to the 

Commission, may be used for collecting and reporting on any delinquent amount 

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

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

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

for consumer relief, such as redress and any attendant expenses for the 

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

that direct redress to consumers is wholly or partially impracticable or money 

remains after such redress is completed, the Commission may apply any remaining 

money for such related relief (including consumer information remedies) as it 

determines to be reasonably related to Defendant’s practices alleged in the 

Complaint. Any money not used for relief is to be deposited to the U.S. Treasury. 

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

representatives may take pursuant to this Subsection. 

VII. CUSTOMER INFORMATION 

A. IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

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

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

restrained and enjoined from directly or indirectly failing to provide sufficient 

customer information to enable the Commission to efficiently administer consumer 

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

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

Commission, within 14 days. 




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VIII. ORDER ACKNOWLEDGMENTS 

 IT IS FURTHER ORDERED that Defendant obtain acknowledgments of 

receipt of this Order: 

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

Commission an acknowledgment of receipt of this Order sworn under penalty of 

perjury. 

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

this Orderto: (1) all principals, officers, directors, and LLC managers and 

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

responsibilities for conduct related to the subject matter of this Order; and (3) any 

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

titled Compliance Reporting. Delivery must occur within 7 days of entry of this 

Order for current personnel. For all others, delivery must occur before they 

assume their responsibilities. 

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

this Order, that Defendant must obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

IX. COMPLIANCE REPORTING 

 IT IS FURTHER ORDERED that Defendant make timely submissions to 

the Commission: 

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

compliance report, sworn under penalty of perjury. 

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

email address and telephone number, as designated points of contact, 

which representatives of the Commission may use to communicate 

with Defendant; (b) identify all of Defendant’s businesses by all of 

their names, telephone numbers, and physical, postal, email, and 

Internet addresses; (c) describe the activities of each business, 




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including the goods and services offered, the means of advertising, 

marketing, and sales, and whether these businesses involve Mail, 

Internet or Telephone Order Sales; (d) describe in detail whether and 

how Defendant is in compliance with each Section of this Order; and 

(e) provide a copy of each Order Acknowledgment obtained pursuant 

to this Order, unless previously submitted to the Commission. 

B. For 10 years after entry of this Order, Defendant must submit a 

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

in the following: 

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

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

Defendant has any ownership interest in or controls directly or 

indirectly that may affect compliance obligations arising under this 

Order, including: creation, merger, sale, or dissolution of the entity or 

any subsidiary, parent, or affiliate that engages in any acts or practices 

subject to this Order. 

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

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

such Defendant within 14 days of its filing. 

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

sworn under penalty of perjury must be true and accurate and comply with 28 

U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under 

the laws of the United States of America that the foregoing is true and correct. 

Executed on: _____” and supplying the date, signatory’s full name, title (if 

applicable), and signature. 

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

all submissions to the Commission pursuant to this Order must be emailed to 

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 




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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. Hey Dude Inc., Matter No. 2123082. 

X. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendant must create certain records for 

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

Specifically, Defendant 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 requests for Refunds or 

reimbursement concerning the subject matter of this Order, 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 

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

making any representation concerning the shipping speed and Refunds of 

purchased merchandise. 

XI. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Defendant’s 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, Defendant must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for 




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depositions; and produce documents for inspection and copying. The Commission 

is also authorized to obtain discovery, without further leave of court, using any of 

the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including 

telephonic depositions), 31, 33, 34, 36, 45, and 69. 

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

communicate directly with Defendant. Defendant must permit representatives of 

the Commission to interview any employee or other person affiliated with 

Defendant who has agreed to such an interview. The person interviewed may have 

counsel present. 

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

through its representatives as consumers, suppliers, or other individuals or entities, 

to Defendant or any individual or entity affiliated with Defendant, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of 

the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

XII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

SO ORDERED, this ____ day of _____________, 2023. 

______________________________ 

UNITED STATES DISTRICT JUDGE 

/// 

/// 

/// 




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SO STIPULATED AND AGREED: 

FOR FEDERAL TRADE COMMISSION: 

_______________________________________ Date: _

09/11/2023

______________ 

DELILAH VINZON, Cal. Bar No. 222681 

 dvinzon@ftc.gov 

ROBERT J. QUIGLEY, Cal. Bar No. 302879 

 rquigley@ftc.gov 

Federal Trade Commission 

10990 Wilshire Blvd., Suite 400 

Los Angeles, CA 90024 

Tel: (310) 824-4300; Fax: (310) 824-4380 

FOR DEFENDANT:

_______________________________________ Date: _



______________

RICHARD BLACKSHAW 

President 

Hey Dude Inc. 

FOR DEFENDANT:

_____________ 6/28/2023

AM

_

Y RA

_

LP

___

H M

__________________________ Date: _______________

UD

__

GE,

__

 ESQ. 

amudge@bakerlaw.com 

JOHN FERRY, ESQ. 

jferry@bakerlaw.com 

MICHAEL INGRAM, ESQ. 

 mingram@bakerlaw.com 

Baker & Hostetler LLP 

Washington Square, Suite 1100 

1050 Connecticut Avenue, N.W. 

Washington, DC 20036 

Telephone 202-861-1500 

Facsimile 202-861-1783 




		 Case 2:23-cv-01412 Document 2 Filed 09/11/23 Page 22 of 22