UNITED STATES DISTRICT COURT Case No. 99-7001-CIV-DIMITROULEAS FEDERAL TRADE COMMISSION v. ALL AROUND TRAVEL CLUB, INC., STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), commenced this action by filing a Complaint pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), charging the Defendants with engaging in unfair or deceptive acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45. Now the Commission and Defendants agree to a settlement of this action without trial or adjudication of any issue of law or fact herein and in which the Defendants deny liability for any of the violations alleged in the complaint or for any wrongdoing whatsoever and agree to this settlement solely to avoid the expenses of litigation. The Commission and Defendants consent to entry of this Final Order without trial or adjudication of any issue of law or fact herein. Upon the consent of the parties hereto, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows: FINDINGS 1. This is an action by the Commission instituted under Sections 5 and 13(b) of the Federal Trade Commission Act, 15 U.S.C. §§ 45 and 53(b). The Complaint seeks permanent injunctive relief for alleged deceptive acts or practices by the Defendants in connection with the advertising, marketing, promoting, offering for sale, and sale of services relating to travel club memberships and an unsecured credit card. The Complaint states a claim upon which relief may be granted against Defendants under Sections 5 and 13(b) of the FTC Act. 2. This Court has jurisdiction over the subject matter of this case and has jurisdiction over the Defendants. Venue in the Southern District of Florida is proper. 3. The activities of Defendants are in or affecting commerce, as commerce is defined in 15 U.S.C. § 44. 4. Defendants waive all rights to seek judicial review or otherwise challenge or contest the validity of this Order. Defendants also waive any claim that they may hold under the Equal Access to Justice Act, 28 U.S.C. § 2412 (as amended), concerning the prosecution of this action to the date of this Order. Defendants shall bear their own costs and attorneys fees. 5. Entry of this Order is in the public interest. DEFINITION For purposes of this Final Judgment and Order for Permanent Injunction, the following definition shall apply: 1. "Document" is synonymous in meaning and equal in scope to the usage of the term in Federal Rule of Civil Procedure 34(a) and includes writings, drawings, graphs, charts, photographs, audio, and video recordings, computer records, and other data compilations from which the information can be obtained and translated, if necessary, through detection devices into reasonably usable form. A draft or non-identical copy is a separate document within the meaning of the term. I. IT IS THEREFORE ORDERED that with respect to the advertising, marketing, promoting, offering for sale, or sale of travel club memberships or services or products relating to credit cards, loans, or other extensions of credit, Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all persons or entities directly or indirectly under the control of any Defendant or under common control with any Defendant, and all other persons or entities in active concert or participation with any Defendant who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined from:
II. IT IS FURTHER ORDERED that Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all persons or entities directly or indirectly under the control of any Defendant or under common control with any Defendant, and all other persons or entities in active concert or participation with any Defendant who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are hereby restrained and enjoined, as of the date of this Order, from selling, renting, leasing, transferring, or otherwise disclosing the name, address, telephone number, social security number, or other identifying information of any person who Defendants billed for any travel club membership fee at any time prior to the date this Order is entered. Provided, however, that Defendants may disclose such identifying information to a law enforcement agency or as required by any law, regulation, or court order. III. IT IS FURTHER ORDERED that for each BestBank VISA credit card account currently owned or subsequently owned by any Defendant in which the consumer was billed for a membership in All Around Travel Club on a BestBank VISA credit card and for which Defendants do not currently possess a written and signed authorization or application from such consumer for such credit card, Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all persons or entities directly or indirectly under the control of any Defendant or under common control with any Defendant, and all other persons or entities in active concert or participation with any Defendant who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, shall:
Provided, however, that the provisions of this Paragraph shall not apply to any consumer who charged any amount other than the initial membership fee for All Around Travel Club or any credit card annual fees, or any finance charges or late payment fees related thereto, to the BestBank VISA credit card or who used any benefits of membership in the All Around Travel Club. IV. IT IS FURTHER ORDERED that, for a period of three (3) years from the date of entry of this Order, Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all persons or entities directly or indirectly under the control of any Defendant or under common control with any Defendant, and all other persons or entities in active concert or participation with any Defendant who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, in connection with any business engaged in the advertising, marketing, or promoting to consumers of travel club or credit card memberships, services or products where such Defendant or combination of Defendants is the majority owner of the business or directly or indirectly manages or controls the business, except where the business is subject to ongoing reporting under the Securities Act of 1933 ("Securities Act") or the Securities Exchange Act of 1934 ("Exchange Act") enforced by the Securities and Exchange Commission ("SEC"), are hereby restrained and enjoined from failing to create, and from failing to retain for a period of two (2) years following the date of such creation, unless otherwise specified:
Provided, however, that nothing in this Paragraph shall limit the reporting requirements of any other federal, state, or local agency or other industry self-regulatory regulations or requirements. V. IT IS FURTHER ORDERED that, for a period of three (3) years from the date of entry of this Order, Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant shall each:
VI. IT IS FURTHER ORDERED that, in order that compliance with the provisions of this Order may be monitored:
Regional Director
VII. IT IS FURTHER ORDERED that the Commission is authorized to monitor Defendants' compliance with this Order by all lawful means, including but not limited to, the use of representatives posing as consumers and suppliers to Defendants, Defendants' employees, or any other entity managed or controlled in whole or in part by Defendants, without the necessity of identification or prior notice. VIII. IT IS FURTHER ORDERED that, within five (5) business days after receipt by Defendants All Around Travel Club, Inc., Century Financial Group, Inc., Michael Mansueto, Douglas Baetz, and Glenn Gallant of this Order as entered by the Court, each Defendant shall submit to the Commission a truthful sworn statement, in the form shown on Appendix A hereto, that shall acknowledge receipt of this Order. IX. IT IS FURTHER ORDERED that the Court shall retain jurisdiction of this matter for the purpose of enabling the parties to apply to the Court at any time for such further orders and directions as may be necessary or appropriate for the purposes of interpreting, monitoring compliance with, modifying or enforcing this Order, or for the punishment of violations thereof. The parties hereby consent to the terms and conditions of the Stipulated Final Judgment and Order for Permanent Injunction as set forth above and consent to entry thereof. Each party shall bear its own costs and attorney's fees. SO ORDERED, this _____ day of _______________, 199___. _______________________________ SO STIPULATED: Kristin Malmberg John R. Hoagland Southwest Region ATTORNEYS FOR PLAINTIFF All Around Travel Club, Inc. by Michael Mansueto, President Michael Mansueto, individually and as an officer of All Around Travel Club, Inc. Century Financial Group, Inc. by Douglas Baetz, President _____________________________________ _____________________________________ Michael S. Pasano Guy A. Rasco Zuckerman, Spaeder, Taylor & Evans, LLP ATTORNEY FOR DEFENDANTS APPENDIX A UNITED STATES DISTRICT COURT Case No. 99-7001-CIV-DIMITROULEAS FEDERAL TRADE COMMISSION v. ALL AROUND TRAVEL CLUB, INC., AFFIDAVIT OF [NAME OF DEFENDANT] [Name of Defendant], being duly sworn, hereby states and affirms as follows: 1. My name is [ ]. My social security number is [ ]. My current residence address is [ ]. I am a citizen of the United States and am over the age of eighteen. I have personal knowledge of the facts set forth in this Affidavit. 2. I am a Defendant in FTC v. All Around Travel Club, Inc., et al., Civil Action No. 99-7001 in the United States District Court for the Southern District of Florida, Fort Lauderdale Division. 3. On __________ ___, 2000, I received a copy of the Stipulated Final Judgment and Order for Permanent Injunction, which was signed by the Honorable William P. Dimitrouleas and entered by the Court on __________ ___, 2000. A true and correct copy of the Order I received is attached to this Affidavit. I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. Executed on ____________ ___, 2000, at . ___________________________________ State of ____________________, City of ____________________ Subscribed and sworn to before me this _____ day of _________, 2000. _____________________________ My Commission Expires: |