[Federal Register Volume 61, Number 63 (Monday, April 1, 1996)]
[Notices]
[Pages 14320-14322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7864]



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FEDERAL TRADE COMMISSION
[File No. 962-3027]


Martha Clark d/b/a Simplex Systems; 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 Niverville, New York-based respondent from 
misrepresenting, in her advertisements for a credit repair kit, any 
remedy for credit history problems available under the Fair Credit 
Reporting Act, including the ability to remove accurate but adverse 
information from credit reports. The consent agreement settles 
allegations stemming from advertisements on the Internet for Clark/
Simplex's Guaranteed Credit Doctor purported credit repair kit.

DATES: Comments must be received on or before May 31, 1996.

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

FOR FURTHER INFORMATION CONTACT:

C. Steven Baker, Chicago Regional Office, Federal Trade Commission, 
Suite 1860, 55 East Monroe Street, Chicago, IL 60603, 312-353-8156
David Medine, Federal Trade Commission, S-4429, 6th and Pennsylvania 
Ave, NW, Washington, DC 20580, 202-326-3224

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 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 
Sec. 4.9(b)(6)(ii) of the Commission's rules of practice (16 CFR 
4.9(b)(6)(ii)).

Agreement Containing Consent Order To Cease and Desist

    In the Matter of: Martha Clark, individually and doing business 
as Simplex Services.

[File No. 962-3027]

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Martha Clark, individually and doing 
business as Simplex Services (hereinafter referred to as ``proposed 
respondent''), and it now appearing that proposed respondent is willing 
to enter into an agreement containing an order to cease and desist from 
the acts and practices being investigated.
    It is hereby agreed by and between Martha Clark, individually and 
doing business as Simplex Services, and counsel for the Federal Trade 
Commission that:
    1. Proposed respondent Martha Clark is an individual doing business 
as Simplex Services with her principal office or place of business at 
135 Kipp

[[Page 14321]]
U., P.O. Box 36, Niverville, New York 12130.
    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft of complaint.
    3. Proposed respondent waives:
    (a) Any further procedural steps;
    (b) The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law;
    (c) All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement; 
and
    (d) All claims under the Equal Access to Justice Act.
    4. This agreement shall not become a 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 the complaint contemplated hereby, 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 proposed 
respondent, 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 respondent that the law has been 
violated as alleged in the attached draft complaint or that the facts 
as alleged in the attached 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 Sec. 2.34 of the Commission's 
Rules, the Commission may, without further notice to proposed 
respondent, (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 decision containing the agreed-to order to proposed respondent's 
address as stated in this agreement shall constitute service. Proposed 
respondent waives any right she might 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 in the agreement may be 
used to vary or contradict the terms of the order.
    7. Proposed respondent has read the complaint and the order 
contemplated hereby. She understands that once the order has been 
issued, she will be required to file one or more compliance reports 
showing she has fully complied with the order. Proposed respondent 
further understands that she may be liable for civil penalties in the 
amount provided by law for each violation of the order after it becomes 
final.

Order

Definitions

    1. ``Credit Report'' means any written, oral, or other 
communication of information by a consumer reporting agency bearing on 
a person's credit worthiness, credit standing, credit capacity, 
character, general reputation, personal characteristics, or mode of 
living that is used or expected to be used or collected in whole or in 
part for the purpose of serving as a factor in establishing the 
consumer's eligibility for credit.
    2. ``Credit Repair Product'' means any product or service to 
improve a person's credit report by removing adverse information 
appearing therein, changing the rating of such information from 
negative to positive, or otherwise enhancing the person's credit 
report.
I
    It is ordered that respondent Martha Clark, her 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 
credit repair product, in or affecting commerce, as ``commerce'' is 
defined in the Federal Trade Commission Act, do forthwith cease and 
desist from misrepresenting, either directly or indirectly, in writing, 
via a computer communications network, or by any other means, any right 
or remedy available under the Fair Credit Reporting Act, 15 U.S.C. 
Sec. 1681 et seq., including, but not limited to, the ability to remove 
adverse information in any credit report.
II
    It is further ordered that respondent shall:
    A. Within thirty (30) days from the effective date of this Order 
deliver a copy of this Order to each of her officers, agents, 
representatives, and employees who are engaged in the preparation or 
placement of advertisements, promotional materials or other such sales 
materials covered by this Order.
    B. For a period of five (5) years from the effective date of this 
Order deliver a coy of this Order to each of her future officers, 
agents, representatives, and employees who are engaged in the 
preparation or placement of advertisements, promotional materials or 
other such sales materials covered by this Order, within three (3) days 
after the person assumes such position.
III
    It is further ordered that for a period of five (5) years from the 
date this Order becomes final, respondent shall notify the Commission 
within thirty (30) days of the discontinuance of her present business 
or employment and of each affiliation with a new business or 
employment. Each notice of affiliation with any new business or 
employment shall include her new business address and telephone number, 
current home address, and a statement describing the nature of the 
business or employment and the duties and responsibilities.
IV
    It is further ordered that within sixty (60) days after service of 
this Order, and at such other times as the Commission may require, 
respondent shall file with the Commission a report, in writing, setting 
forth in detail the manner and form in which she has complied with this 
Order.
V
    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

[[Page 14322]]
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.

Analysis of Proposed Consent Order to Aid Public Comment

    The Federal Trade Commission has accepted an agreement, subject to 
final approval, to a proposed consent order from respondent Martha 
Clark, individually and doing business as Simplex Solutions.
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception 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 agreement's proposed order.
    This matter concerns claims made by the respondent in her 
advertising, including advertising through the Internet, for the 
Guaranteed Credit Doctor credit repair kit. The Commission's complaint 
charges that the respondent's advertising represents, directly or by 
implication, that consumers can remove bankruptcies, judgments, 
foreclosures, liens, repossessions, late payments, and other adverse 
items of information from their credit reports even where such 
information is accurate and not obsolete. The claim is alleged to be 
false and misleading, and in violation of section 5 of the Federal 
Trade Commission Act, 15 U.S.C. 45, because most consumers cannot 
remove adverse items of information from their credit reports where 
such information is accurate and not obsolete.
    The proposed consent order contains provisions designed to remedy 
the violation charged and to prevent the respondent from engaging in 
similar acts and practices in the future. Part I of the proposed order 
prohibits the respondent from misrepresenting, directly or by 
implication in her advertising for any credit repair product any right 
or remedy available under the Fair Credit Reporting Act, 15 U.S.C. 1681 
et seq., including, but not limited to, the ability to remove adverse 
information in any credit report. Part II of the proposed order 
requires the respondent to distribute copies of the order to certain 
company officials and employees. Part III of the proposed order 
requires the respondent to notify the Commission of any discontinuance 
of her present business or employment and of each affiliation with a 
new business or employment. Part IV of the proposed order requires the 
respondent to file one or more compliance reports. Part V of the 
proposed order is a provision whereby the order, absent certain 
circumstances, terminates twenty years from the date of issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify their 
terms in any way.
Donald S. Clark,
Secretary.
[FR Doc. 96-7864 Filed 3-29-96; 8:45 am]
BILLING CODE 6750-01-M