| DEBRA A. VALENTINE General Counsel CONNIE WAGNER Federal Trade Commission BLAINE T. WELSH Attorneys for Plaintiff UNITED STATES DISTRICT COURT FEDERAL TRADE COMMISSION, Plaintiff CIVIL ACTION No. STIPULATED FINAL ORDER FOR PERMANENT INJUNCTION AS TO LYLE MORTENSEN Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), has filed a Complaint for permanent injunction and other relief against Sandra Rennert, Philip Rennert, Lyle Mortensen, International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc. (collectively "defendants") pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b). The Commission and defendants have stipulated to the entry of the following Stipulated Final Order for Permanent Injunction ("Order") in settlement of the Commission's complaint against defendants. The Court, being advised in the premises, finds: FINDINGS 1. This Court has jurisdiction of the subject matter and of the parties; 2. The Complaint states a claim upon which relief may be granted under Sections 5(a) 12, and 13(b) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a) and 53(b); 3. Venue is proper as to all parties in the District of Nevada; 4. The activities of defendants are in or affecting commerce, as defined in the FTC Act, 15 U.S.C. § 44; 5. This agreement is for settlement purposes only and does not constitute an admission by defendants that, as alleged in the complaint, the law has been violated, or that the facts in the complaint, other than the jurisdictional facts, are true. 6. Defendants have waived all 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, 863-64 (1996); 7. This action and the relief awarded herein are in addition to, and not in lieu of, other remedies as may be provided by law; 8. Each party shall bear its own costs and attorneys' fees; and 9. Entry of this Order is in the public interest; DEFINITIONS 1. "Defendants" shall mean Sandra Rennert, Philip Rennert, Lyle Mortensen, International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc.. 2. "Individual Defendants" shall mean Sandra Rennert, Philip Rennert and Lyle Mortensen. 3. "Corporate Defendants" shall mean International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc., their divisions and subsidiaries, successors and assigns, and their officers, agents, representatives and employees. 4. "Employment" shall include any affiliation (paid or unpaid) with any business, non-profit, or government entity, including the performance of services as an officer, owner, manager, supervisor, employee, consultant, or independent contractor; and "Employer" shall mean any and all individuals or entities for whom any defendant performs services as an employee, consultant, or independent contractor. 5. "Disclosure" or "disclosed to third party (ies)" shall mean (a) the release of personal information to any other individual, firm, or organization for any purpose not necessary to maintain the technical functioning of a Web site or online service, or to fulfill a consumer's request, or (b) making publicly available such information by any means including public posting on or through home pages, email services, message boards, or chat rooms. 6. "Personal information" means individually identifiable information about an individual collected online including: (a) a first and last name, (b) a home or other physical address including street name and name of city or town, (c) an email address or other online contact information, including an instant messaging user identifier or a screen name that reveals an individual's email address, (d) a telephone number, (e) a social security number, (f) a persistent identifier, such as a customer number held in a cookie or a processor serial number, where such identifier is associated with other individually identifiable information, (g) a combination of a last name or photograph of the individual with other information such that the combination permits physical or online contacting, and (h) information concerning a Web site user that the operator collects online from the user, including medical information or a prescription, that is combined with an identifier described in this definition. 7. "Clearly and conspicuously" means of a size, shade, appearing on the screen for a duration and in a location, sufficient for an ordinary consumer to read and understand it. 8. A requirement that any defendant "notify the Commission" shall mean that the defendant shall send the necessary information via first-class mail, costs prepaid, to the Associate Director for Enforcement, Federal Trade Commission, 600 Pennsylvania Ave., N.W., Washington, D.C. 20580. Attn: FTC v. Rennert et al. (D. NV). 9. The term "includes" or "including" in this Order shall mean "without limitation." 10. The terms "and" and "or" in this Order shall be construed conjunctively or disjunctively as necessary, to make the applicable phrase or sentence inclusive rather than exclusive. ORDER I. PROHIBITED BUSINESS ACTIVITIES - REPRESENTATIONS IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that defendant Mortensen, his officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise are hereby permanently restrained and enjoined from misrepresenting, expressly or by implication in connection with the advertisement, promotion, offering for sale or sale of any product or service over the Internet:
II. PROHIBITED BUSINESS ACTIVITIES - CREDIT CARD BILLING IT IS FURTHER ORDERED that defendant Mortensen, his officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, in connection with credit card or debit card billing or collections are hereby permanently restrained and enjoined from:
III. PROHIBITED BUSINESS ACTIVITIES - NON-DISCLOSURE OF PERSONAL INFORMATION IT IS FURTHER ORDERED that defendant Mortensen, his officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, are hereby permanently restrained and enjoined from A. Selling, renting, leasing, transferring or otherwise disclosing to any third party(ies) personal information that was collected from consumers in connection with co-defendants' online pharmacy businesses, before co-defendants posted privacy notice(s) in compliance with Paragraph V. B. Selling, renting, leasing, transferring or otherwise disclosing to any third party(ies) personal information that was collected from any consumer after co-defendants posted privacy notice(s) in compliance with Paragraph V, unless the consumer expressly authorizes the disclosure in advance of any disclosure. Provided that defendant Mortensen may provide such information to law enforcement authorities or as required to do so by any law, regulation or court order, including as required by this Order. IV. WEB SITE OPERATION REQUIREMENTS IT IS FURTHER ORDERED that defendant Mortensen, his officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, in connection with the advertising, promotion, offering for sale or sale of prescription medications over the Internet shall:
V. PRIVACY NOTICE IT IS FURTHER ORDERED that defendant Mortensen, his officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with him who receive actual notice of this Order by personal service or otherwise, in connection with the advertising, promotion, or offering of goods or services over the Internet, shall provide notice to consumers of its practices with regard to its collection and use of personal information ("Privacy Notice").
VI. ALLEGATIONS IN THE COMPLAINT IT IS FURTHER ORDERED THAT the facts as alleged in the Complaint filed with this Judgment shall be taken as true solely for the purpose of any subsequent litigation filed by the FTC to enforce its rights under this Judgment. VII. ORDER DISTRIBUTION IT IS FURTHER ORDERED THAT, for a period of 3 years from the date of entry of this Judgment, defendant Mortensen shall:
VIII. RECORD KEEPING IT IS FURTHER ORDERED THAT for a period of 3 years from the date of entry of this Judgment, defendant Mortensen shall create and maintain, as to any business engaged in the offer or sale of products or services over the internet:
IX. ACCESS TO BUSINESS PREMISES IT IS FURTHER ORDERED THAT, for a period of 3 years from the date of entry of this Judgment, for the purpose of further determining compliance with this Judgment, defendant Mortensen shall permit representatives of the Commission, within 5 business days of receipt of written notice from the Commission:
X. MONITORING IT IS FURTHER ORDERED THAT for a period of 3 years from the date of entry of this Judgment, each individual defendant shall inform the Commission by written notification within 30 days of:
XI. COMPLIANCE REPORTING BY DEFENDANT MORTENSEN IT IS FURTHER ORDERED THAT 180 days after the date of entry of this Order, defendant Mortensen shall provide a written report to the FTC, sworn to under penalty of perjury, setting forth in detail the manner and form in which defendant Mortensen has complied and is complying with this Judgment. This report shall include:
Upon written request by a representative of the Commission, defendant Mortensen shall submit additional written reports (under oath, if requested) and produce documents on 15 days' notice with respect to any conduct subject to this Judgment. For purposes of the compliance reporting required by this Paragraph, the Commission is authorized to communicate in writing directly with defendant Mortensen. XII. COMMISSION'S AUTHORITY TO MONITOR COMPLIANCE IT IS FURTHER ORDERED THAT the Commission is authorized to monitor defendant Mortensen's compliance with this Judgment by all lawful means, including but not limited to the following means:
Nothing in this Judgment shall limit 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, to investigate whether defendants have violated any provision of this Judgment or Section 5 of the FTC Act, 15 U.S.C. § 45. XIII. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANT IT IS FURTHER ORDERED THAT, within 5 business days after receipt by defendants of this Order as entered by the Court, defendant Lyle Mortensen shall submit to the Commission a truthful sworn statement, in the form shown on Appendix A, that shall acknowledge receipt of this Judgment. XIV. APPEARANCE FOR TESTIMONY IT IS FURTHER STIPULATED AND ORDERED that defendant Mortensen shall appear to provide testimony in any trial, deposition, or hearing related to the co-defendants' business of selling prescription medications over the Internet, upon written notice by counsel, and without the service of a subpoena. XV. CONTINUING JURISDICTION IT IS HEREBY ORDERED THAT this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Judgment. The parties hereby consent to the terms and conditions set forth above and consent to entry of the Final Judgment without further notice to the parties. Each party to this Judgment hereby agrees to bear its own costs and attorneys fees incurred in connection with this action. STIPULATED AND AGREED TO BY:
IT IS SO ORDERED, this ______ day of __________, 2000 in ______________, Nevada. _______________________________________ UNITED STATES DISTRICT COURT FEDERAL TRADE COMMISSION, Plaintiff AFFIDAVIT OF [DEFENDANT] [Defendant], being duly sworn, hereby states and affirms: 1. My name is . I am a citizen of the United States and am over the age of eighteen. I have personal knowledge of the matters discussed in this declaration, and if called as a witness, I could and would competently testify as to the matters stated herein. I am a defendant in the above captioned action. 2. On (date) , I received a copy of the Stipulated Final Order for Permanent Injunction, entered on _______ in the United States District Court for the District of Nevada. A true and correct copy of the Order that I received is appended to this Affidavit. I hereby declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on (date) , at (city, state) , (Name of Defendant) STATE OF COUNTY OF BEFORE ME this day personally appeared , who being first duly sworn, deposes and says that s/he has read and understands the foregoing statement and that s/he has executed the same for the purposes contained therein. SUBSCRIBED AND SWORN TO before me this day of , 2000, by . S/he is personally known to me or has presented (state identification) as identification. Print Name NOTARY PUBLIC, STATE OF Commission Number Affix Seal |