REASONS FOR SETTLEMENT

This statement accompanies the Consent Decree executed by defendant Franklin W. Bishop, an individual doing business as Minidiscnow.com, in settlement of an action brought to recover penalties and other equitable relief from the defendant for engaging in acts or practices in violation of the Commission's Trade Regulation Rule Concerning Mail or Telephone Order Merchandise, 16 C.F.R. Part 435 ("Mail Order Rule").

Pursuant to Section 5(m)(3) of the Federal Trade Commission Act, as amended (15 U.S.C. § 45(m)(3)), the Commission hereby sets forth its reasons for settlement by entry of a Consent Decree and injunction:

On the basis of the allegations contained in the attached Complaint, the Commission believes that the payment of full consumer redress by the defendant, rather than the payment of civil penalties, constitutes an appropriate means upon which to base a settlement. The Commission notes the defendant's limited resources, and believes that those resources are most appropriately used to reimburse each buyer who has ordered and paid for, but has not received, shipment of any item of merchandise. Full redress should assure compliance with the law by defendant and by others who engage in practices covered by the Mail Order Rule. Further, defendant is permanently enjoined from engaging in acts or practices that are prohibited by the Mail Order Rule. With the entry of such Consent Decree the time and expense of litigation will be avoided.

For the foregoing reasons, the Commission believes that the settlement by entry of the attached Consent Decree with Franklin W. Bishop is justified and well within the public interest.