UNITED STATES DISTRICT COURT UNITED STATES OF AMERICA, Plaintiff, v. HOME SHOPPING NETWORK, INC., and CIV. ACTION NO. 99-897-CIV-T-25C CONSENT DECREE WHEREAS: Plaintiff, the United States of America, has commenced this action by filing the Complaint herein; defendants Home Shopping Network, Inc., and Home Shopping Club, L.P., have waived service of the Summons and Complaint; the parties have been represented by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this action upon the following terms and conditions, without adjudication of any issue of fact or law and without defendants admitting liability for any of the matters alleged in the Complaint; THEREFORE, on the joint motion of plaintiff and defendants, it is hereby ORDERED, ADJUDGED, and DECREED as follows: 1. This Court has jurisdiction over the subject matter and the parties. 2. The Complaint states a claim upon which relief may be granted against defendants under Sections 5(l), 9, 13(b) and 16(a) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(l), 49, 53(b) and 56(a). 3. The following definition shall apply to this Consent Decree: "Commission's Order" shall mean the Federal Trade Commission ("Commission") Order in FTC Docket No. 9272 (1996), a copy of which is attached hereto as Exhibit A and made a part of this Consent Decree. CIVIL PENALTY 4. Pursuant to Section 5(l) of the FTC Act, 15 U.S.C. § 45(l), defendants Home Shopping Network, Inc., and Home Shopping Club, L.P., their successors and assigns, shall pay a monetary civil penalty of $1,100,000. 5. Defendants, their successors and assigns, shall make the payment required by Paragraph 4 within five (5) days after the date of entry of this Consent Decree by electronic fund transfer in accordance with the instructions provided by: The Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530. 6. In the event of any default in payment, which default continues for ten (10) days beyond the due date of payment, the entire unpaid penalty, together with interest as computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, shall immediately become due and payable. INJUNCTION 7. Defendants Home Shopping Network, Inc., and Home Shopping Club, L.P., their successors and assigns, and their officers, agents, representatives and employees, and all persons in active concert or participation with any one or more of them who receive actual notice of this Consent Decree by personal service or otherwise, are hereby permanently enjoined from ever violating, directly or through any corporation, subsidiary, division, or other device, any provision of the Commission's Order. 8. In the event that the Commission's Order is hereafter modified, defendants' compliance with such Order as so modified shall not be deemed a violation of this injunction. PERSONS AFFECTED; CONTINUING JURISDICTION 9. Each defendant shall, within thirty (30) days after the entry of this Consent Decree, provide a copy of the Commission's Order and a copy of this Consent Decree to each of its officers, and to each of its agents and employees responsible for the advertising or promotion of any product covered by the Commission's Order. Within ten (10) days of complying with this paragraph, each defendant shall provide the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, an affidavit setting forth the fact and manner of its compliance, including the name and title of each person to whom a copy of the Commission's Order and Consent Decree has been provided. 10. For a period of five (5) years from the date of entry of this Consent Decree, defendants, their successors and assigns, shall maintain and, upon request, make available to the Commission, copies of all business records demonstrating compliance with the terms and provisions of this Consent Decree. 11. This Court shall retain jurisdiction of this matter for the purpose of enabling any of the parties to this Consent Decree to apply to the Court at any time for such further orders or directives as may be necessary or appropriate for the interpretation or modification of thisConsent Decree, for the enforcement of compliance therewith, for the redress of any violations thereof, or for the punishment of any violations thereof. JUDGMENT IS THEREFORE ENTERED in favor of plaintiff and against defendants, pursuant to all the terms and conditions recited above. Dated this ________ day of _______________, 19___. _____________________________ United States District Judge The parties, by their respective counsel, hereby consent to the terms and conditions of the Consent Decree as set forth above and consent to the entry thereof. Defendants waive any rights that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, amended by Pub. L. 104-121, 110 Stat. 847, 863-63 (1996). FOR THE UNITED STATES OF AMERICA: DAVID W. OGDEN CHARLES R. WILSON By: _____________________________ EUGENE M. THIROLF _____________________________ FOR THE FEDERAL TRADE COMMISSION: ELAINE D. KOLISH MARY K. ENGLE _____________________________ _____________________________ FOR THE DEFENDANTS: HOME SHOPPING NETWORK, INC. By: _____________________________ By: _____________________________ STEIN, MITCHELL & MEZINES By: _____________________________ |