Also, the complaint alleges that Milady did not have a reasonable basis for instructing that the gowns could be adequately cleaned by the Zurcion Method and for warning that the gowns could not be cleaned by any other method of drycleaning or by washing. The Commission vote to file the complaint and the proposed settlement was 4-0. The complaint and settlement were filed at the FTC's request by the Department of Justice in the U.S. District Court for the Southern District of New York on September 1, 1999. The consent decree is subject to court approval. Consent decrees are for settlement purposes only and do not constitute an admission by the defendants of a law violation.
Consent decrees have the force of law when signed by the judge.
A federal district court granted FTC's request to modify a 1996 consent decree that bars Telebrands Corporation and its president, Ajit Khubani, from violating FTC's Mail or Telephone Order Rule. The modified consent decree supersedes the 1996 order. Telebrands and Khubani agreed to the modified order without admitting wrongdoing. The Mail or Telephone Order Merchandise Rule requires a company that takes orders for merchandise by mail, telephone or computer to ship ordered merchandise within the time stated in its advertising. If no time is stated, the company must send the merchandise within 30 days of receiving the properly completed order.