[Federal Register Volume 61, Number 45 (Wednesday, March 6, 1996)]
[Notices]
[Pages 8936-8939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5225]



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FEDERAL TRADE COMMISSION

[File No. 952-3388]


Georgetown Publishing House Limited Partnership; Georgetown 
Publishing, Inc.; Daniel Levinas; Consent Agreement With Analysis To 
Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Consent agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair acts and practices and unfair methods of competition, this 
consent agreement, accepted subject to final Commission approval, would 
prohibit the Washington, D.C.-based publishing firm from 
misrepresenting that an advertisement is an independent review or 
article, or that it is not a paid advertisement. The consent agreement 
settles allegations that Georgetown used 

[[Page 8937]]
deceptive advertising practices to promote the sale of a book titled 
The American Speaker: Your Guide to Successful Speaking.

DATES: Comments must be received on or before May 6, 1996.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th Street and Pennsylvania Avenue NW., Washington, D.C. 
20580.

FOR FURTHER INFORMATION CONTACT: Joel Winston, Federal Trade 
Commission, S-4002, 6th and Pennsylvania Avenue NW., Washington, DC 
20580. (202) 326-3153. Lesley Anne Fair, Federal Trade Commission, S-
4002, 6th and Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-
3081.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the following consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of sixty (60) days. Public comment is invited. Such 
comments or views will be considered by the Commission and will be 
available for inspection and copying at its principal office in 
accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of 
Practice (16 CFR 4.9(b)(6)(ii)).

    In the matter of: Georgetown Publishing House Limited 
Partnership, a limited partnership; Georgetown Publishing House, 
Inc., a corporation; and Daniel Levinas, individually and as an 
officer of said corporation.
    File No. 952-3388.

Agreement Containing Consent Order To Cease and Desist

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Georgetown Publishing House Limited 
Partnership, a limited partnership; Georgetown Publishing House, Inc., 
a corporation; and Daniel Levinas, individually and as an officer of 
Georgetown Publishing House, Inc. (``proposed respondents''); and it 
now appearing that proposed respondents are willing to enter into an 
agreement containing an order to cease and desist from the use of the 
acts and practices being investigated,
    It is hereby agreed by and between Georgetown Publishing House 
Limited Partnership, by its duly authorized General Partner; Georgetown 
Publishing House, Inc., by its duly authorized officer; and Daniel 
Levinas, individually and as an officer of Georgetown Publishing House, 
Inc.; and counsel for the Federal Trade Commission that:
    1. Proposed respondent Georgetown Publishing House Limited 
Partnership is a limited partnership organized, existing, and doing 
business under and by virtue of the laws of the District of Columbia, 
with its principal office or place of business at 1101 30th Street NW., 
Washington, D.C. 20007.
    Proposed respondent Georgetown Publishing House, Inc. is a 
corporation organized, existing, and doing business under and by virtue 
of the laws of the District of Columbia, with its principal office or 
place of business at 1101 30th Street NW., Washington, D.C. 20007. 
Georgetown Publishing House, Inc., is General Partner of Georgetown 
Publishing House Limited Partnership.
    Proposed respondent Daniel Levinas is an officer of Georgetown 
Publishing House, Inc. Individually or in concert with others, he 
formulates, directs and controls the policies, acts and practices of 
said corporation and his address is the same as that of said 
corporation.
    2. Proposed respondents admit all the jurisdictional facts set 
forth in the draft of complaint here attached.
    3. Proposed respondents waive:
    (a) Any further procedural steps;
    (b) The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law; and
    (c) All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement.
    4. This agreement shall not become part of the public record of the 
proceeding unless and until it is accepted by the Commission. If this 
agreement is accepted by the Commission, it, together with the draft of 
complaint contemplated thereby, will be placed on the public record for 
a period of sixty (60) days and information in respect thereto publicly 
released. The Commission thereafter may either withdraw its acceptance 
of this agreement and so notify the proposed respondents, in which 
event it will take such action as it may consider appropriate, or issue 
and serve its complaint (in such form as the circumstances may require) 
and decision, in disposition of the proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by proposed respondents that the law has been 
violated as alleged in the draft of complaint here attached, or that 
the facts as alleged in the draft complaint, other than the 
jurisdictional facts, are true.
    6. This agreement contemplates that, if it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of Section 2.34 of the 
Commission's Rules, the Commission may, without further notice to 
proposed respondents, (1) issue its complaint corresponding in form and 
substance with the draft of complaint here attached and its decision 
containing the following order to cease and desist in disposition of 
the proceeding and (2) make information public in respect thereto. When 
so entered, the order to cease and desist shall have the same force and 
effect and may be altered, modified, or set aside in the same manner 
and within the same time provided by statute for other orders. The 
order shall become final upon service. Delivery by the U.S. Postal 
Service of the complaint and decision containing the agreed-to-order to 
proposed respondents' address as stated in this agreement shall 
constitute service. Proposed respondents waive any right they may have 
to any other manner of service. The complaint may be used in construing 
the terms of the order, and no agreement, understanding, 
representation, or interpretation not contained in the order or the 
agreement may be used to vary or contradict the terms of the order.
    7. Proposed respondents have read the proposed complaint and order 
contemplated hereby. They understand that once the order has been 
issued, they will be required to file one or more compliance reports 
showing that they have fully complied with the order. Proposed 
respondents further understand that they may be liable for civil 
penalties in the amount provided by law for each violation of the order 
after it becomes final.

Order

I

    It is ordered that respondents Georgetown Publishing House Limited 
Partnership, a limited partnership, and its successors and assigns; 
Georgetown Publishing House, a corporation, its successors and assigns, 
and its officers; and Daniel Levins, individually and as an officer of 
said corporation; and respondents' agents, representatives, and 
employees, directly or through any corporation, subsidiary, division or 
other device, in connection with the advertising, promotion, offering 
for sale, sale, or distribution of any product in or affecting 
commerce, as ``commerce'' is defined in the Federal Trade Commission 
Act, do forthwith cease and desist from:

[[Page 8938]]

    A. Misrepresenting, directly or indirectly, that such product has 
been independently reviewed or evaluated;
    B. Misrepresenting, directly or indirectly, that an advertisement 
is an independent review or article or is not a paid advertisement.

II

    It is further ordered that respondents Georgetown Publishing House 
Limited Partnership and Georgetown Publishing House, Inc., their 
successors and assigns, shall for a period of five (5) years from the 
date of entry of this Order maintain and make available to the Federal 
Trade Commission within seven (7) business days of the date of the 
receipt of a written request, business records demonstrating compliance 
with the terms and provisions of this order.

III

    It is further ordered that respondents Georgetown Publishing House 
Limited Partnership and Georgetown Publishing House, Inc., their 
successors and assigns, shall:
    A. Within thirty (30) days after service of this order, provide a 
copy of this order to each of its current principals, officers, 
directors, and managers, and to all personnel, agents, and 
representatives having sales, advertising, or policy responsibility 
with respect to the subject matter of this order; and
    B. For a period of ten (10) years from the date of entry of this 
order, provide a copy of this order to each of its future principals, 
officers, directors, and managers, and to all personnel, agents, and 
representatives having sales, advertising, or policy responsibility 
with respect to the subject matter of this order within three (3) days 
after the person commences his or her responsibilities.

IV

    It is further ordered that respondents Georgetown Publishing House 
Limited Partnership and Georgetown Publishing House, Inc., their 
successors and assigns, shall notify the Federal Trade Commission at 
least thirty (30) days prior to any proposed change in structure, 
including but not limited to dissolution, assignment, or sale resulting 
in the emergence of a successor corporation or partnership, the 
creation or dissolution of subsidiaries or affiliates, the planned 
filing of a bankruptcy petition, or any other change in the corporation 
or partnership that may affect compliance obligations arising out of 
this order.

V

    It is further ordered that respondent Daniel Levinas shall, for a 
period of five (5) years from the date of entry of this order, notify 
the Commission within thirty (30) days of the discontinuance of his 
present business or employment and of his affiliation with any new 
business or employment which involves the sale of consumer products. 
Each notice of affiliation with any new business or employment shall 
include the respondent's new business address and telephone number, 
current home address, and a statement describing the nature of the 
business or employment and his duties and responsibilities.

VI

    It is further ordered that this order will terminate twenty years 
from the date of its issuance, or twenty years from the most recent 
date that the United States or the Federal Trade Commission files a 
complaint (with or without an accompanying consent decree) in federal 
court alleging any violation of the order, whichever comes later; 
provided, however, that the filing of such a complaint will not affect 
the duration of:
    A. Any paragraph in this order that terminates in less than twenty 
years;
    B. This order's application to any respondent that is not named as 
a defendant in such complaint; and
    C. This order if such complaint is filed after the order has 
terminated pursuant to this paragraph.
    Provided further, that if such complaint is dismissed or a federal 
court rules that the respondent did not violate any provision of the 
order, and the dismissal or ruling is either not appealed or upheld on 
appeal, then the order will terminate according to this paragraph as 
though the complaint was never filed, except that the order will not 
terminate between the date such complaint is filed and the later of the 
deadline for appealing such dismissal or ruling and the date such 
dismissal or ruling is upheld on appeal.

VII

    It is further ordered that respondents shall, within sixty (60) 
days after service of this Order, and at such other times as the 
Federal Trade Commission may require, file with the Commission a 
report, in writing, setting forth in detail the manner and form in 
which they have complied with this order.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement to a proposed consent order from Georgetown 
Publishing House Limited Partnership; Georgetown Publishing House, 
Inc.; and Daniel Levinas, the president of Georgetown Publishing House. 
The respondents sell various business publications, including The 
American Speaker: Your Guide to Successful Speaking, which are 
advertised through direct mail promotions to consumers.
    The proposed consent order has been placed on the public record for 
sixty (60) days for receipt of comments by interested persons. Comments 
received during this period will become part of the public record. 
After sixty (60) days, the Commission will again review the agreement 
and the comments received and will decide whether it should withdraw 
from the agreement and take other appropriate action, or make final the 
proposed order contained in the agreement.
    In this case, proposed respondents sent direct mail solicitations 
to consumers for The American Speaker: Your Guide to Successful 
Speaking. The solicitation was headed with the word ``REVIEW'' and was 
printed on glossy paper with a torn left margin, similar in appearance 
to an article torn out of a magazine. The bottom of the page included 
the words ``page 17'' and ``November 1994,'' suggesting that the 
``review'' had appeared on that page of a monthly magazine. The second 
page of the ``review'' included the carry-over conclusion of an 
unrelated article crossed out by hand that was purportedly ``continued 
from page 12.'' Attached to the purported ``review'' was a post-it note 
containing the handwritten notation:

[Recipient's name],

Try this.

It works!

J

    The Commission's complaint in this matter charges the proposed 
respondents with falsely representing that the direct mail solicitation 
was a book review written by an independent journalist and reviewer and 
had been disseminated in a magazine or other independent publication. 
In fact, according to the complaint, the clipping was not an 
independent review from a magazine sent by an acquaintance. Rather it 
was an advertisement written and sent by the proposed respondents.
    The proposed order contains provisions designed to remedy the 
alleged violations. Part I of the proposed order prohibits the proposed 
respondents from misrepresenting that any product has been 
independently reviewed or evaluated. In addition, Part 

[[Page 8939]]
I prohibits the proposed respondents from misrepresenting that an 
advertisement is an independent article or review or is not a paid 
advertisement. The proposed order also contains standard recordkeeping 
and reporting requirements, including a provision sunsetting the order 
after twenty years under certain circumstances.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-5225 Filed 3-5-96; 8:45 am]
BILLING CODE 6750-01-M