# Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 1 of 37

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Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 1 of 37

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
FEDERAL TRADE COMMISSION,
Plaintiff,

v.
STUDENT DEBT DOCTOR LLC, a Florida
limited liability company,

Civil Case No. l 7-cv-61937-WPD

and
GARY BRENT WHITE, JR., individually and
as an officer of Defendant Student Debt Doctor
LLC,
Defendants.

STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY
JUDGMENT
Plaintiff, the Federal Trade Commission ("Commission" or "FTC"), filed its Complaint
for Permanent Injunction and Other Equitable Relief ("Complaint") pursuant to Section 13(b) of
the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b), and the Telemarketing and
Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"), 15 U.S.C. §§ 6101-6108.
The Commission and Defendants Gary Brent White, Jr. and Student Debt Doctor LLC
("Defendants") stipulate to the entry of this Stipulated Permanent Injunction and Final Order
("Order") to resolve all matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:
FINDINGS
1.

This Court has jurisdiction over this matter.

2.

The Complaint charges that Defendants participated in deceptive acts or practices

in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a) and the Telemarketing Sales Rule,
16 C.F.R. § 310, in connection with the adve1tising, marketing, promotion, offering for sale, or
sale of debt relief services.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 2 of 37

3.

Defendants neither admit nor deny any of the allegations in the Complaint, except

as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts
necessary to establish jurisdiction.
4.

Defendants waive any claim that they may have under the Equal Access to Justice

. Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order,
and agree to bear their own costs and attorney fees.
5.

Defendants waive and release any claims that they may have against the

Commission, the Receiver, and their agents that relate to this action.
6.

Defendants and the Commission waive all rights to appeal or otherwise challenge

or contest the validity of this Order.

DEFINITIONS

A.

"Assisting Others" includes:
1.

performing customer service functions, including receiving or responding

to consumer complaints;
2.

formulating or providing, or arranging for the formulation or provision of,

any advertising or marketing material, including any telephone sales script, direct mail
solicitation, or the design, text, or use of images of any Internet website, email, or other
electronic communication;
3.

formulating or providing, or arranging for the formulation or provision of,

any marketing support material or service, including web or Internet Protocol addresses
or domain name registration for any Internet websites, affiliate marketing services, or
media placement services;
4.

providing names of, or assisting in the generation of, potential customers;

5.

performing marketing, billing, or payment services of any kind; or

6.

acting or serving as an owner, officer, director, manager, or principal of

any entity.
B.

"Defendants" means Gary Brent White, Jr., and any other names by which he

might be known, Student Debt Doctor LLC, and their successors and assigns, individually,
collectively, or in any combination.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 3 of 37

C.

"Financial Product Or Service" means any product, service, plan, or program

represented, expressly or by implication, to:
1.

provide any consumer, arrange for any consumer to receive, or assist any

consumer in receiving, a loan or other extension of credit;
2.

provide any consumer, arrange for any consumer to receive, or assist any

consumer in receiving, credit, debit, or stored value cards;
3.

improve, repair, or arrange to improve or repair, any consumer's credit

record, credit history, or credit rating; or
4.

provide advice or assistance to improve any consumer's credit record,

credit history, or credit rating.
D.

"Person" means any individual, group, unincorporated association, limited or

general partnership, corporation, or other business entity.

''National Do Not Call Registry" means the "do-not-call" registry of telephone
numbers maintained by the Commission pursuant to 16 CFR § 310.4(b)( 1)(iii)(B).

"Receiver" means the Court-appointed receiver in this action, Robert Carey, and
his employees, attorneys, accountants, and other agents.
G.

"Secured Or Unsecured Debt Relief Product Or Service" means:
I.

With respect to any mortgage, loan, debt, or obligation between a Person

and one or more secured or unsecured creditors or debt collectors, any product, service,
plan, or program represented, expressly or by implication, to:
a. stop, prevent, or postpone any mortgage or deed of foreclosure sale for a
Person's dwelling, any other sale of collateral, any repossession of a
Person's dw,elling or other collateral, or otherwise save a Person's
dwelling or other collateral from foreclosure or repossession;
b. negotiate, obtain, or arrange a modification, or renegotiate, settle, or in any
way alter any terms of the mortgage, loan, debt, or obligation, including a
reduction in the amount of interest, principal balance, monthly payments,

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 4 of 37

or fees owed by a Person to a secured or unsecured creditor or debt
collector;
c. obtain any forbearance or modification in the timing of payments from
any secured or unsecured holder or servicer of any mortgage, loan, debt,
or obligation;
d. negotiate, obtain, or arrange any extension of the period of time within
which a Person may (a) cure his or her default on the mortgage, loan, debt,
or obligation, (b) reinstate his or her mortgage, loan, debt, or obligation,
(c) redeem a dwelling or other collateral, or (d) exercise any right to
reinstate the mortgage, loan, debt, or obligation or redeem a dwelling or
other collateral;
e. obtain any waiver of an acceleration clause or balloon payment contained
in any promissory note or contract secured by any dwelling or other
collateral; or
f. negotiate, obtain, or arrange (a) a short sale of a dwelling or other
collateral, (b) a deed-in-lieu of foreclosure, or (c) any other disposition of
a mortgage, loan, debt, or obligation other than a sale to a third party that
is not the secured or unsecured loan holder.
The foregoing shall include any manner of claimed assistance, including auditing or examining a
Person's application for the mortgage, loan, debt, or obligation.
2. With respect to any loan, debt, or obligation between a Person and one or more
unsecured creditors or debt collectors, any product, service, plan, or program
represented, expressly or by implication, to:
a. repay one or more unsecured loans, debts, or obligations; or
b. combine unsecured loans, debts, or obligations into one or more new
loans, debts, or obligations.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 5 of 37

H.

"Receivership Entities" means Fidelity Debt Reserve, LLC; Fidelity Credit

Repair, LLC; Fidelity Reserve Loans, LLC; G White Enterprises, LLC; and Fidelity Asset
Holdings LP.

I.

"Telemarketing" means any plan, program, or campaign that is conducted to

induce the purchase of goods or services or a charitable contribution by the use of one or more
telephones and that involves more than one interstate telephone call.
J.

"Seller" means any Person who, in connection with a Telemarketing transaction,

provides, offers to provide, or arranges for others to provide goods or services to the customer in
exchange for consideration, whether or not such Person is under the jurisdiction of the
Commission.
K.

"The Property" means the real property at 140 SE 4 th Terrace, Pompano Beach,

Florida 33060.

I.
BAN ON SECURED AND UNSECURED DEBT RELIEF
PRODUCTS AND SERVICES
IT IS ORDERED that Defendants are permanently restrained and enjoined from
advertising, marketing, promoting, offering for sale, or selling, or Assisting Others in the
advertising, marketing, promoting, offering for sale, or selling, of any Secured Or Unsecured
Debt Relief Product Or Service.

II.
PROHIBITION AGAINST MISREPRESENTATIONS RELATING TO FINANCIAL
PRODUCTS AND SERVICES
IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees,
and attorneys, and all other Persons or entities in active concert or participation with any of them,
who receive actual notice of this Order, whether acting directly or indirectly, in connection with
the advertising, marketing, promoting, offering for sale, or selling of any Financial Product Or
Service, are permanently restrained and enjoined from misrepresenting, or Assisting Others in
misrepresenting, expressly or by implication:
A.
including:

the terms or rates that are available for any loan or other extension of credit,

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 6 of 37

1.

closing costs or other fees;

2.

the payment schedule, monthly payment amount(s), any balloon payment,

or other payment terms;
3.

the interest rate(s), annual percentage rate(s), or finance charge(s), or

whether they are fixed or adjustable;
4.

the loan amount, credit amount, draw amount, or outstanding balance; the

loan term, draw period, or maturity; or any other term of credit;
5.

the amount of cash to be disbursed to the borrower out of the proceeds, or

the amount of cash to be disbursed on behalf of the borrower to any third parties;
6.

whether any specified minimum payment amount covers both interest and

principal, or whether the credit has or can result in negative amortization; or
7.

that the credit does not have a prepayment penalty or whether subsequent

refinancing may trigger a prepayment penalty and/or other fees;
B.

the ability to improve or otherwise affect a consumer's credit record, credit

history, credit rating, or ability to obtain credit, including that a consumer's credit record, credit
history, credit rating, or ability to obtain credit can be improved by permanently removing
current, accurate negative information from the consumer's credit record or history;
C.

that a consumer will receive legal representation; or

D.

any other fact material to consumers concerning any Financial Product Or

Service, such as: the total costs; any material restrictions, limitations, or conditions; or any
material aspect of its performance, efficacy, nature, or central characteristics.

III.
PROHIBITION AGAINST MISREPRESENTA TIO NS RELATING TO ANY
PRODUCTS OR SERVICES
IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees,
and attorneys, and all other Persons in active concert or participation with any of them, who
receive actual notice of this Order, whether acting directly or indirectly, in connection with the
advertising, marketing, promoting, offering for sale, or selling of any product, service, plan, or
program, are permanently restrained and enjoined from misrepresenting, or Assisting Others in
misrepresenting, expressly or by implication:

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 7 of 37

A.

any material aspect of the nature or terms of any refund, cancellation, exchange,

or repurchase policy, including the likelihood of a consumer obtaining a full or partial refund, or
the circumstances in which a full or partial refund will be granted to the consumer;
B.

that any Person is affiliated with, endorsed, approved by, accredited by, or

otherwise connected to any other Person; government entity; public, non-profit, or other non' commercial program; or any other program;
C.

the nature, expertise, position, or job title of any Person who provides any

product, service, plan, or program;
D.

that any Person providing a testimonial has purchased, received, or used the

product, service, plan, or program;
E.

tha,t the experience represented in a testimonial of the product, service, plan, or

program represents the Person's actual experience resulting from the use of the product, service,
plan, or program under the circumstances depicted in the advertisement; or
F.

any other fact material to consumers concerning any good or service, such as: the

total costs; any material restrictions, limitations, or conditions; or any material aspect of its
performance, efficacy, nature, or central characteristics.
IV.
PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS
IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees,
and attorneys, and all other Persons in active concert or participation with any of them, who
receive actual notice of this Order, whether acting directly or indirectly, in connection with the
sale of any Financial Product Or Service, are permanently restrained and enjoined from making
any representation or Assisting Others in making any representation, expressly or by implication,
about the benefits, performance, or efficacy of any Financial Product Or Service, unless the
representation is non-misleading, and, at the time such representation is made, they possess and
rely upon competent and reliable evidence that is sufficient in quality and quantity based on
standards generally accepted in the relevant fields, when considered in light of the entire body of
relevant and reliable evidence, to substantiate that the representation is true.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 8 of 37

V.
PROHIBITION AGAINST UNLAWFUL TELEMARKETING PRACTICES
IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees,

and attorneys, and all other Persons in active concert or participation with any of them, who
receive actual notice of this Order, whether acting directly or indirectly, in connection with
Telemarketing, are permanently restrained and enjoined from engaging in, causing others to
engage in, or Assisting Others to engage in, any of the following practices:
A.

making or causing others to make misrepresentations, directly or by implication,

regarding a Seller's or Telemarketer's affiliation with, or endorsement or sponsorship by, any
Person or government entity;
B.

initiating or causing others to initiate outbound telephone calls to consumers who

have registered their telephone numbers on the National Do Not Call Registry;
C.

initiating or causing others to initiate outbound telephone calls to telephone

numbers within a given area code without first, either directly or through another Person, paying
the required annual fee for access to the telephone numbers within that area code that are
included in the National Do Not Call Registry; or
D.

violating the Telemarketing Sales Rule, 16 C.F.R. Part 310, attached as Appendix

A.

VI.
MONETARY JUDGMENT AND PARTIAL SUSPENSION
IT IS FURTHER ORDERED that:

A.

Judgment in the amount of Thirteen Million Two-Hundred Twenty-Four

Thousand Eight-Hundred Fifty-Six dollars and 15 cents ($13,224,856.15) is entered in favor of
the Commission against Defendants, jointly and severally, as equitable monetary relief.
B.

In partial satisfaction of the judgment against Defendants:
1.

all financial institutions holding accounts in the name of, on behalf of, or

for the benefit of Defendant Student Debt Doctor LLC or any Receivership Entity shall,
within ten (10) business days from receipt of a copy of this Order, transfer to the FTC or
its designated agent, all funds, if any, in such accounts.
2.

All financial institutions holding accounts in the name of, on behalf of, or

for the benefit of Defendant Gary Brent White, Jr. shall, within ten (10) business days

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 9 of 37

.from receipt of a copy of this Order, transfer to the FTC or its designated agent, all funds,
if any, in such accounts, including, but not limited to:
a.

within ten (I 0) business days of receipt of a copy of this Order,

Bank of America is ordered to transfer to the FTC or its designated agent all
funds, if any, in the following accounts:
1.

account number ending in -4557 in the name of Gary Brent

White, Jr.; and
11.

account number ending in -4489 in the name of Gary B.

White, Jr.;
b.

within ten (I 0) business days of receipt of a copy of this Order, TD

Ameritrade is ordered to transfer to the FTC or its designated agent all funds, if
any, in the following accounts;
1.

account number ending -2345 in the name of Gary White,

Jr., and
c.

within ten ( l 0) business days of receipt of a copy of this Order,

Pay Pal is ordered to transfer to the FTC or its designated agent all funds, if any, in
account ID gary.white24@gmail.com in the name of Gary White Jr.
3.

Defendant Gary Brent White, Jr., shall (i) transfer all legal and equitable

right, title, and interest to The Property to the Receiver or his designated agent, and (ii)
vacate The Property, within fourteen (14) calendar days of the date of entry of this Order.
At the time of transferring title, Defendant Gary Brent White, Jr., shall deliver all keys
and security codes, if any, to the Receiver along with written notice that possession is
surrendered. Until Defendant Gary Brent White, Jr., transfers title of The Property, he
· shall: (a) maintain The Property in good working order, including taking no action to
diminish the value of The Property, including any structures, fixtures, and appurtenances,
thereto; (b) not add any encumbrance to The Property; and (c) shall pay all expenses
associated with The Property incurred prior to transfer, including but not limited to all
taxes, insurance, association or building fees or dues, utilities, mortgage payments,
reasonable and necessary maintenance, and similar fees unless otherwise agreed by the
Receiver. The Receiver or his designated agent shall sell The Property and add the

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 10 of 37

proceeds from the sale to the Receivership Estate. Any fees or other payments mandated
by law from the sale will be paid from the proceeds of the sale.
C.

As set forth in Section XI below, the Receiver is directed to liquidate assets held

by the Receiver and, after satisfaction of any Court~authorized payments, transfer the remaining
assets and net proceeds from the sale of these assets to the FTC.
D.

Upon payment and all other asset transfers, as set fo1th in Subsections Band C

above,.the remainder of the judgment is suspended, subject to the Subsections below.
E.

The Commission's agreement to the suspension of part of the judgment is

expressly premised upon the truthfulness, accuracy, and completeness of Defendants' sworn
financial statements and related documents (collectively, "financial representations") submitted
to the Commission, namely:
1.

the Financial Statement of Defendant Gary Brent White, Jr. signed on

August 16, 2018, including the attachments;
2.

the Financial Statement of Defendant Student Debt Doctor LLC, signed by

Defendant Gary Brent White, Jr. on August 16, 2018, including the attachments;
3.

the Financial Statement of Receivership Entity G White Enterprises LLC,

signed by Defendant Gary Brent White, Jr. on August 16, 2018, including the
attachments;
4.

the Financial Statement of Receivership Entity Fidelity Debt Reserve

LLC, signed by Defendant Gary Brent White, Jr. on August 16, 2018, including the
attachments;
5.

the Financial Statement of Receivership Entity Fidelity Credit Repair

LLC, signed by Defendant Gary Brent White, Jr. on August 16, 2018, including the
attachments;
6.

the Financial Statement of Receivership Entity Fidelity Reserve Loans,

signed by Defendant Gary Brent White, Jr. on August 16, 2018, including the
attachments;
7.

the Financial Statement of Receivership Fidelity Asset Holdings LP,

signed by Defendant Gary Brent White, Jr. on August 16, 2018, including the
attachments;

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 11 of 37

and premised upon the truthfulness, accuracy, and completeness of Defendants' answers in their
depositions taken in August 2018.
F.

The suspension of the judgment will be lifted as to any Defendant if, upon motion

by the Commission, the Court finds that Defendant failed to disclose any material asset,
materially misstated the value of any asset, or made any other material misstatement or omission
in the financial representations identified above.
G.

If the suspension of the judgment is lifted, the judgment becomes immediately

due as to that Defendant in the amount specified in Subsection A above (which the parties
stipulate only for purposes of this Section represents Defendants' consumer injury) less any
payment previously made pursuant to this Section, plus interest computed from the date of entry
of this Order.
VII.
ADDITIONAL MONETARY PROVISIONS
IT IS FURTHER ORDERED that:
A.

Defendants relinquish dominion and all legal and equitable right, title, and interest

in all assets transferred pursuant to this Order and may not seek the return of any assets.
B.

The facts alleged in the Complaint will be taken as true, without further proof, in

subsequent civil litigation by or on behalf of the Commission and/qr the Receiver, including in a
proceeding to enforce the Commission's rights to any payment or money judgment pursuant to
this Order, such as a non-dischargeability complaint in any bankruptcy case.
C.

The facts alleged in the Complaint establish all elements necessary to sustain an

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. §
523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.
D.

Defendants acknowledge that their Taxpayer Identification Numbers (Social

Security Numbers or Employer Identification Numbers), which Defendants previously submitted
to the Commission, may be used for collecting and reporting on any delinquent amount arising
out of this Order, in accordance with 31 U.S.C. § 7701.
All money paid to the Commission pursuant to this Order may be deposited into a
fund administered by the Commission or its designee to be used for equitable relief, including
consumer redress and any attendant expenses for the administration of any redress fund. If a
representative of the Commission decides that direct redress to consumers is wholly or partially

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 12 of 37

impracticable or money remains after redress is completed, the Commission may apply any
remaining money for such other equitable relief (including consumer information remedies) as it
determines to be reasonably related to Defendants' practices alleged in the Complaint. Any
money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement.
Defendants have no right to challenge any actions the Commission or its representatives may
take pursuant to this Subsection.
F.

The asset freeze is modified to permit the payments and transfers identified in the

Monetary Judgment Section. Upon completion of those payments and transfers, the asset freeze
is dissolved.
VIII.
CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendants, Defendants' officers, agents, employees,

attorneys, and all other Persons who are in active concert or participation with them, who receive
actual notice of this Order, are permanently restrained and enjoined from directly or indirectly:
A.

failing to provide sufficient customer information to enable the Commission to

efficiently administer consumer redress. If a representative of the Commission requests in
writing information related to redress, Defendants must provide it, in the.form prescribed by the
Commission, within fourteen (14) days;
B.

disclosing, using, or benefitting from customer information, including the name,

address, telephone number, email address, social security number, FSA ID, other identifying
information, or any data that enables access to a customer's account (including a credit card,
bank account, or other financial account) that any Defendant obtained prior to entry of this Order
in connection with the sale of debt relief; and
C.

failing to destroy such customer information in all forms in their possession,

custody, or control within thirty (30) days after entry of this Order.
Provided, however, that customer information need not be disposed of, and may be

disclosed, to the extent requested by a government agency or required by law, regulation, or
court order.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 13 of 37

IX.
COOPERATION WITH FTC
IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives
of the Commission in this case and in any investigation related to or associated with the
transactions or the occurrences that are the subject of the Complaint. Defendants must provide
truthful and complete information, evidence, and testimony. Defendant Gary Brent White, Jr.,
must appear and must cause Defendant Student Debt Doctor LLC's officers, employees,
representatives, or agents to appear for interviews, discovery, hearings, trials, and any other
proceedings that a Commission representative may designate, without the service of a subpoena.

x.
COOPERATION WITH RECEIVER
IT IS FURTHER ORDERED that Defendants shall not interfere with the Receiver's
performance of his duties and shall cooperate fully with the Receiver to complete his duties,
including, but not limited to, cooperation as to the Receiver's pursuit of any claims against other
Persons or entities and the Receiver's pursuit of any funds or assets of a Receivership Entity.
Defendants shall execute any documents requested by the Receiver necessary to transfer assets
or ownership interests to the Receiver. If it becomes necessary to execute additional documents
to transfer or liquidate assets of Receivership Entities or any other assets that are surrendered
under this Order or to wind up Defendant Student Debt Doctor, LLC and the Receivership
Entities, Defendants must execute all documents requested by the Receiver within five (5) days
of receipt from the Receiver.
XI.
RECEIVERSHIP TERl'1INATION
IT IS FURTHER ORDERED that the Receiver must complete all duties within 120
days after entry of this Order, but any party or the Receiver may request that the Court extend the
Receiver's term for good cause. Upon the ruling of the Court on all pending motions by the
Receiver for the approval of fees and expenses of the Receiver and his professionals, the
Receiver may withdraw all approved amounts for Receivership expenses from the Receivership
accounts and transfer the balance to the account of the Commission.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 14 of 37

XII.
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of
this Order:
A.

Each Defendant, within seven (7) days of entry of this Order, must submit to the

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.

B.

For five (5) years after entry of this Order, Defendant Gary Brent White, Jr., for

any business that he, individually or collectively with any other Defendant, is the majority owner
or controls directly or indirectly, and Defendant Student Debt Doctor, LLC, must deliver a copy
of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all
employees having managerial responsibilities for conduct related to the subject matter of the
Order and all agents and representatives who participate in conduct related to the subject matter
of the Order; and (3) any business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting. Delivery must occur within seven (7) days of the entry of
this Order for current personnel. For all others, delivery must occur before they assume their
responsi bi Ii ties.
C.

From each individual or entity to which a Defendant delivered a copy of this

Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment
of receipt of this Order.
XIII.
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendants make timely submissions to the
Commission:
A.

One year after entry of this Order, each Defendant must submit a compliance

report, sworn under penalty of perjury:
1.

Each Defendant must: (a) identify the primary physical, postal, and email

· address and telephone number, as designated points of contact, which representatives of
the Commission may use to communicate with Defendant; (b) identify all of that

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 15 of 37

Defendant's businesses by all of their names, telephone numbers, and physical, postal,
email, and Internet addresses; (c) describe the activities of each business including the
goods and services offered, the means of advertising, marketing, and sales, and the
involvement of any other Defendant (which Defendant Gary Brent White, Jr. must
describe if he knows or should know due to his own involvement); (d) describe in detail
whether and how that Defendant is in compliance with each Section of this Order; and (e)
provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless
previously submitted to the Commission.
2.

Additionally, Defendant Gary Brent White, Jr. must: (a) identify all his

telephone numbers and all physical, postal, email and Internet addresses, including all his
residences; (b) identify all his business activities, including any business for which he
performs services whether as an employee or otherwise, and any entity in which he has
any ownership interest; and (c) describe in detail his involvement in each such business,
including title, role, responsibilities, participation, authority, control, and any ownership.
B.

For twenty (20) years after entry of this Order, each Defendant must submit a

compliance notice, sworn under penalty of pe1jury, within fourteen (14) days of any change in
the following:
1.

Each Defendant must report any change in: (a) any designated point of

contact; or (b) the structure of Student Debt Doctor, LLC, and its successors and assigns,
or any entity that Defendant has any ownership interest in or controls directly or
indirectly that may affect compliance obligations arising under this Order, including:
creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate
that engages in any acts or practices subject to this Order.
2.

Additionally, Defendant Gary Brent White, Jr. must report any change in:

(a) name, including aliases or fictitious name, or residence address; or (b) title or role in
any business activity, including any business for which he performs services, whether as
an employee or otherwise and any entity in which he has any ownership interest, and
identify the name, physical address, and any Internet address of the business or entity.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 16 of 37

C.

Each Defendant must submit to the Commission notice of the filing of any

bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant
within fourteen (14) days of its filing.
D.

Any submission to the Commission required by this Order to be sworn under

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by
concluding: "I declare under penalty of perjury under the laws of the United States of America
that the foregoing is true and correct. Executed on: _ _" and supplying the date, signatory's
full name, title (if applicable), and signature.
E.

Unless otherwise directed by a Commission representative in writing, all

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or
sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement,
Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW,
Washington, DC 20580. The subject line must begin: FTC v. Student Debt Doctor, LLC, et al.,
X180002.
XIV.
RECORD KEEPING
IT IS FURTHER ORDERED that Defendants must create certain records for twenty
(20) years after entry of the Order, and retain each such record for five (5) years. Specifically,
Defendant Student Debt Doctor, LLC, and its successors and assigns, and Defendant Gary Brent
White, Jr., for any business that such Defendant is a majority owner or controls directly or
indirectly, must create and retain the following records:
A.

accounting records showing the revenues from all goods or services sold;

B.

personnel records showing, for each Person providing services, whether as an

employee or otherwise, that Person's name, addresses, telephone numbers, job title or position,
dates of service, and (if applicable) the reason for termination;
C.

records of all consumer complaints and refund requests, whether received directly

or indirectly, such as through a third party, and any response;

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 17 of 37

D.

all records necessary to demonstrate full compliance with each provision of this

Order, including all submissions to the Commission; and
E.

a copy of each unique advertisement or other marketing material.

xv.
COMPLIANCE MONITORING
IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants'
compliance with this Order, including the financial representations upon which all or part of the
judgment was suspended and any failure to transfer any assets as required by this Order:
A.

Within fourteen (14) days of receipt ofa written request from a representative of

the Commission, each Defendant must (a) submit additional compliance reports or other
requested information, which must be sworn under penalty of perjury; (b) appear for depositions;
and (c) produce documents for inspection and copying. The Commission is also authorized to
obtain discovery, without further leave of court, using any of the procedures prescribed by
Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45,
and 69.
B.

For matters concerning this Order, the Commission is authorized to communicate

directly with each Defendant. Defendant must permit representatives of the Commission to
interview any employee or other Person affiliated with Defendants who has agreed to such an
interview. The Person interviewed may have counsel present.
C.

The Commission may use all other lawful means, including posing, through its

representatives, as consumers, suppliers, or other individuals or entities, to Defendants or any
individual or entity affiliated with Defendants, without the necessity of identification or prior
notice. Nothing in this Order limits the Commission's lawful use of compulsory process,
pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-l.
D.

Upon written request from a representative of the Commission, any consumer

reporting agency must furnish consumer reports concerning Defendant Gary Brent White, Jr.,
pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(l).

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XVI.
RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for
all purposes of construction, modification, and enforcement of this Order.

+-

so ORDERED this 3() day of A/blf~ioe.t""' , 201~.

WILLIAM P. DIMITROULEAS
UNITED STA TES DISTRICT JUDGE

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APPENDIX A: TELEMARKETING SALES RULE, 16 CFR PART 310
Contents
§310.1
§310.2
§310.3
§310.4
§310,5
§310.6
§31 O. 7
§310.8
§310.9

Scope of regulations In !his part.
Deflnltlons.
Deceptive telemBl'keting acts or practices.
Abusive telemarke!lng acts or practices.
Recordkeeping requirements.
Exemptions.
Actions by states and private persons.

Fee for access to the National Do Not Call Registry.
SeverabDity.

§310.1 Scope of regulations in this part.

This part implements the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15
U.S.C. 6101-6108, as amended.

§310.2 Definitions.
(a) Acquirer means a business organization, financial institution, or an agent of a business
organization or financial Institution that has authority from an organization that operates or licenses a
credit card system to authorize merchants to accept, transmit, or process payment by credit card
through the credit card system for money, goods or services, or anything else of value.
(b) Attorney General means the chief legal officer of a state.
(c) Billing information means any data that enables any person to access a customer's or
donor's account, such as a credit card, checking, savings, share or similar account, utility bill,
mortgage loan account, or debit card.
(d} Caller_identifioation service means a service that allows a telephone subscriber to have the
telephone number, and, where available, name of the calling party transmitted contemporaneously
with the telephone call, and displayed on a device in or connected to the subscriber's telephone.
(e) Cardholder means a person to whom a credit card is issued or who is authorized to use a
credit card on behalf of or In addition to the person to whom the credit card is issued.
(f) Cash-to--cash money transfer means the electronic (as defined in section 106(2) of the
Electronic Signatures In Global and National Commerce Act (15 U.S.C .. 7006(2)) transfer of the
value of cash received from one person to another person In a different location that is sent by a
money transfer provider and received in the form of cash. For purposes of this definition, money
transfer provider means any person or financial Institution that provides cash-to-cash money
transfers for a person in the normal course of its business, whether or not the person holds an
account with such person or financial institution. The term cash-to-cash money transfer includes a
remittance trarisfer, as defined in section 919(gX2) of the Electronic Fund Transfer Act ("EFTA"), 1S
U.S.C. 1693a, that Is a cash-to-cash transaction; however it does not include any transaction that is:

(1) An electronic fund transfer as defined in section 903 of the EFTA;
(2) Covered by Regulation E, 12 CFR 1005.20, pertaining to gift cards; or

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(3) Subject to. the Truth in Lending Act, 15 U.S.C. 1601 et seq.
(g) Cash reload mechanism is a device, authorization code, personal identification number, or
other security measure that makes it possible for a person to convert cash into an electronic (as
defined in section 106(2) of the Electronic Signatures in G!obal and National Commerce Act (15
U.S.C. 7006(2)) form that can be used to add funds to a general-use prepaid card, as defined in
Regulation E, 12 CFR 1005.2, or an account with a payment intermediary. For purposes of this··
definition, a cash reload mechanism is not itself a general-use prepaid debit card or a swipe reload
process or similar method in which funds are added direc;Uy onto a person's own general-use
prepaid card or account with a payment intermediary.
(h) Charitable contribution means any donation or gift of money or any other thing of value.
(i) Commission means the Federal Trade Commission.

G) Credit means the right granted by a creditor to a .debtor to defer payment of debt or to incur
debt . and defer its payment.
(k) Credit card means any card, plate, coupon book, or other credit device existing for the
purpose of obtaining money, property, labor, or services on credit.
(i) Credit card sales draft means any record or evidence of a credit card transaction.
(m) Credft card system means any method or procedure used to process credit card
transactions involving credit cards issued or licensed by the operator of that system.
(n) Customer means any person who is or may be required to pay for goods or services offered
through telemarketing.
(o) Debt relief service means any program or service represented, directly or by implication, to
renegotiate, settle, or In any way alter the terms of payment or other terms of the debt between a
person and one or more unsecured creditors or debt collectors, Including, but not limited to, a
reduction in the balance, interest rate, or fees owed by a person to an unsecured creditor or debt
collector:
(p) Donor means any person solicited to make a charitable contribution.
(q) Established business relationship means a relationship between a seller and a consumer
based on:
(1) the consumer's purchase, rental, or lease of the seller's goods or services or a financial
transaction between the consumer and seller, within the eighteen (18) months immediately
preceding the date of a telemarketing call; or
(2) the consumer's Inquiry or application regarding a product or service offered by the seller,
within the three (3) months immediately preceding the date of a telemarketing call.
(r) Free-to-pay conversion means, in an offer or agreement to sell or provide any goods or
services, a provision under which a customer receives a product or service for free for an initial
period and will incur an obligation to pay for the product or service if he or she does not take
affirmative action to cancel before the end of that period.

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(s) Investment opportunity means anything, tangible or intangible, that is offered, offered for
sale, sold, or traded based wholly or in part on representations, either express or implied, about
past, present, or future income, profit, or appreciation.
(t) Material means likely to affect a person's choice of, or conduct regarding, goods or.services
or a charitable contribution.
·

(u) Merchant means a person who is authorized under a written contract with an acquirer to
honor or accept credit cards, or to transmit or process for payment credit card payments, for the
purchase of goods or services or a charitable contribution.
(v) Merchant agreement means a written contract between a merchant and an acquirer to
honor or accept credit cards, or to transmit or process for payment credit card payments, for the
purchase of goods or services or a charitable contribution.

{w) Negative option feature means, in an offer or agreement to sell or provide any goods or
services, a provision under which the customer's silence or failure to take an affirmative action to
reject goods or services or to cancel the agreement is interpreted by the seller as acceptance of the
offer. ·
·
(x) Outbound telephone cs/I means a telephone call initiated by a telemarketer to induce the
purchase of goods or services or to solicit a charitable contribution.

(y) Person means any Individual, group, unincorporatetj association, limited or general
partnership, corporation, or other business entity.
(z) Preacquired account information means any information that enables a seller or
telemarketer to cause a charge to be placed against a customer's or donor's. account without
obtaining the account number directly from the customer or donor during the telemarketing
transaction pursuant to which the account will be charged.

(aa) Prize means anything offered, or purportedly offered, and given, or purportedly given, to a
person by chance. For purposes of this definition, chance exists if a person is guaranteed to receive
an item and, at the time of the offer or purported offer, the telemarketer does not identify the specific
item that the person will receive.
(bb) Prize promotion means:
(1) A sweepstakes or other game of chance; or
(2) An oral or written express or implied representation that a person has won, has been
selected to receive, or may be eligible to receive a prize or purported prize.
(cc) Remotely created payment order means any payment instruction or order drawn on a
person's accoun,t that is created by the payee or the payee's agent and deposited into or cleared
through the check clearing system. The term includes, without limitation, a "remotely created check,"
as defined In Regulation CC, Availability of Funds and Collection of Checks, 12 CFR 229.2(fff), but
does not Include a payment order cleared through an Automated Clearinghouse (ACH) Network or
subject to the Truth in Lending Act, 15 U.S.C. 1601 et seq,, and Regulation Z, 12 CFR part 1026.

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(dd) Seller means any person who, 1n connection with a telemarketing transaction, provides,
offers to provide, or arranges for others to provide goods or services to the customer in exchange for
consideration.
(ee) State means any state of the United States, the District of Columbia, Puerto Rico, the
Northern Mariana Islands, and any territory or possession of the United States.
(ff) Telemarketer means any person who, in connection with telemarketing, initiates or receives
telephone calls to or from a customer or donor.
(gg) Telemarketing means a plan, program, or campaign which is conducted to induce the
purchase of goods or services or a charitable contribution, by use of one or more telephones and
which involves more than one interstate telephone call. The term does not include the solicitation of
sales through the mailing of a catalog which: contains a written description or illustration of the
goods or services offered for sale; includes the business address of the seller; includes multiple
pages of written material or illustrations; and has been issued not less frequently than once a year,
when the person making the solicitation does not solicit customers by telephone but only receives
calls Initiated by customers In response to the catalog and during those calls takes orders only
without further solicitation. For purposes of the previous sentence, the term "further solicitation" does
not include providing the customer with information about, or attempting to sell, any other item
included in the same catalog which prompted the customer's call or in a substantially similar catalog.
(hh} Upselling means soliciting the purchase of goods or servjoes following an initial transaction
during a single telephone call. The upsell is a separate telemarketing transaction, not a continuation
of the initial transaction. An "external upsell" is a solicitation made by or on behalf of a sefler different
from the seller In the initial transaction, regardless of whether the initial transaction and the
subsequent solicitation are made by the same telemarketer. An "internal upsell" is a solicitation
made by or on behalf of the same seller as in the initial transaction, regardless of whether the initial
transaction and subsequent solicitation are made by the same telemarketer.
§310.3 Deceptive telemarketlng acts or practices.

(a) Prohibited deceptive telemarketing acts or practices. It Is a deceptive telemarketing act or
practice and a violation of this Rule for any seller or telemarketer to engage in the following conduct:
(1) Before a customer consents to payeso for goods or services offered, failing to disclose
truthfully, in a clear and conspicuous manner, the following material information:
""'When a seller or. telemarketer uses, or directs a customer to use, a courier to transport payment, the seller or
telemarketer must make the disclosures required by §310.3(a)(1} before sending a courier to pick up payment or
authorization for payment, or directing a customer to have a courier pick up payment or authorization for payment. In
the case of debt relief services, the seller or telemarketer must make the dlsclosures required by §310.3(a)(1) before
the consumer enrolls In an offered program.

(I) The total costs to purchase, receive, or use, and the quantity of, any goods or services that
·
are the subject of the sales offer;~60
- For offers of consumer credit products subject to the Truth in Lending Act, 15 U.S.C. 1601 et seq., and
Regulatlon.Z, 12 CFR 226, compliance with the disclosure requirements under the Truth In Lending Act and
Regulation Z shall oonstltute compliance with §310.3(a)(1 XI) ofthfs Rule.

(ii) All material restrictions, limitations, or conditions to purchase, receive, or use the goods or
services that are the subject of the sales offer;

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(iii) If the seller has a policy of not making refunds, cancellations, exchanges, or repurchases, a
statement informing the customer that this Is the seller's policy; or, if the seller or telemarketer makes
a representation about a refund, cancellation, exchange, or repurchase poticy, a statement of all
material terms and conditions of such policy;

· (Iv) In any prize promotion, the odds of being able to receive the prize, and, if the odds are not
calculable In advance, the factors used in calculating the odds; that no purchase or payment Is
required to wlri a prize or to participate in a prize promotion and that any purchase or payment will
not increase the person's chances of winning; and the no-purchase/no-payment method of
participating in the prize promotion with either Instructions on how to participate or an address or
local or toll-free telephone number to which customers may write or call for Information on how to
participate;
(v) All material costs or conditions to receive or redeem a prize that is the subject of the prize
promotion;
{vi) In the sale of any goods or services represented to protect, insure, or otherwise limit a
customer's liability in the event of unauthorized use of the customer's credit card, the limlts on a
cardholder's llabllity for unauthorized use of a credit card pursuant to 15 U.S.C. 1643;
(vii) If the offer includes a negative option feature, all material terms and conditions of the
negative option feature, including, but not limited to, the fact that the customer's account will be
charged unless the customer takes an affirmative action to avoid the charge(s), the date(s) the
charge(s) will be submitted for payment, and the specific steps the customer must take to avoid the
charge(s); and
(viii) In the sale of any debt relief service:
(A) the amount of ti me necessary to achieve the represented results, and to the extent that the
service may include a settlement offer to any of the customer's creditors or debt collectors, the time
by which the debt relief service provider will make a bona fide settlement offer to each of them;
(B) to the extent that the service may Include a settlement offer to any of the customer's
creditors or debt collectors, the amount of money or the percentage of each outstanding debt that
the customer must accumulate before the debt relief service provider will make a bona fide
settlement offer to each of them;
(C} to the extent that any aspect of the debt relief service relies upon or results in the
customer's failure to make timely payments to creditors or debt collectors, that the use of the debt
relief service WIii iikeiy adversely affect the customer's creditworthiness, may result in the customer
being subject to collections or sued by creditors or debt collectors, and may increase the amount of
money the customer owes due to the accrual of fees and interest; and
(D)to the extent that the debt relief service requests or requires the customer to place funds in
an account at an insured financial Institution, that the customer owns the funds held in the account,
the customer may withdraw from the debt relief service at any time without penalty, and, If the
customer withdraws, the customer must receive all funds in the account, other than funds earned by
the debt relief service in compliance with §310.4(a)(5Xl)(A) through (C).
(2) Misrepresenting, directly or by implication, in the sate of goods or services any of the
following material information:

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(i) The total costs to purchase, receive, or use, and the quantity of, any goods or services that
are the subject of a sa!es offer;
(ii) Any material restriction, limitation, or condition to purchase, receive, or use goods or
services that arc the subject of a sales offer;
(iii) Any material aspect of the performance, efficacy, nature, or central characteristics of goods
or services that are the subject of a sales offer;

(iv) Any material aspect of the nature or terms of the seller's refund, cancellation, exchange, or
repurchase policies;
(v) Any material aspect of a prize promotion including, but not limited to, the odds of being able

to receive a prize, the nature or value of a prize, or that a purchase or payment is required to win a
prize or to participate in a prize promotion;
(vi) Any material aspect of an Investment opportunity including, but not limited to, risk, liquidity,
earnings potential, or profitability;
(vii) A seller's or telemarketers affiliation with, or endorsement or sponsorship by, any person
or government entity;
(viii) That any customer needs offered goods or services to provide protections a customer
already has pursuant to 15 U.S.C. 1643;
(ix) Any material aspect of a negative option feature including, but not limited to, the fact that
the customer's account will be charged unless the customer takes an affirmative action to avoid the
charge(s), the date(s) the charge(s) will be submitted for payment, and the specific steps the
customer must take to avoid the charge(s); or
(x) Any material aspect of any debt relief service, including, but not limited to, the amount of
money or the percentage of the debt amount that a customer may save by using such service; the
amount of time necessary to achieve the represented results; the amount of money or the
percentage of each outstanding debt that the customer must accumulate before the provider of the
debt relief service will Initiate attempts with the customer's creditors or debt collectors or make a
bona fide offer to negotiate, settle, or modify the terms of the customer's debt; the effect of the
service on a customer's creditworthiness; the effect ot the service on collection efforts of the
customer's creditors or debt collectors; the percentage or number of customers who attain the
represented results; and whether a debt relief service is offered or provided by a non-profit entity.

(3) Causing billing Information to be submitted for payment, or collecting or attempting to collect
payment for goods or services or a charitable contribution, directly or indirectly, without the
customer's or donor's express verifiable authorization, except when the method of payment used is a
credit card subject to protections of the Truth in Lending Act and Regulation Z, 6111 or a debit card
subject to the protections of the Electronic Fund Transfer Act and Regulation E.e112 Such authorization
shall be deemed verifiable if any of the following means is employed:
.., Truth in Lendlng Act, 15 U.S.C. 1601 et seq., and Regulation Z, 12 CFR part 226 .
.., Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., and Regulation E, 12 CFR part 205.

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(i) Express written authorization by the customer or donor, which includes the customer's or
donor's signature;603
.., For purposes of this Rule, the term "signature" shall include an electronic or digital form of signature, to the
extent that such form of signature is recognized as a valid signature under appllcable federal law or state contract

law.
(II) Express oral authorization which is audio•recorded and made available upon request to the
customer or donor, and the customer's or donor's bank or other billing entity, and which evidences
clearly both the customer's or donor's authorization of payment for the goods or services or
charitable contribution that are the subject of the telemarketing transaction and the customer's or
donor's receipt of all of the following information:
(A} An accurate description, clearly and conspicuously stated, of the goods or services or
charitable contribution for which payment authorization is sought;
(S) The numbel" of debits, charges, or payments (if more than one);
(C) The date(s) the debit(s), charge(s), or payment(s) will be submltter her express agreement to be charged for the
goods or services and to be charged using the account number identified pursuant to paragq:1ph
(a)(7)(ii}(A) of this section;.
.
·(8) Failing to transmit or cause to be transmitted the telephone number, and, when made
available by the telernarketer's carrier, the name of the telemarketer, to any caller identification
service In use by a recipient of a telemarketing call; provided that it shall not be a violation to

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substitute (for the name and phone number used in, or billed for, making the call) the name of the
seller or charitable organization on behalf of which a telemarketing call is placed, and the seller's or
charitable organization's customer or donor service telephone number, which is answered during
regular business hours;
(9) Creating or causing to be created, directly or indirectly, a remotely created payment order
as payment for goods or services offered or sold through telemarketing or as a charitable
contributjon solicited or sought through telemarketingj or
(10) Accepting from a custome~ or donor, directly or indirectly, a cash-to-cash money transfer
or cash reload mechanism as payment for goods or services offered or sold through telemarketing or
as a charitable contribution solicited or sought through telemarketing.
(b) Pattern of calls. (1) It is an abusive telemarketing act or practice and a violation of this Rule
for a telemarketer to engage In, or for a seller to cause a telemarketer to engage in, the following
conduct:
(I) Causing any telephone to ring, or engaging any person in telephone conversation,
repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number;
(ii) Denying or interfering in any way, directly or indirectly, with a person's right to be placed on
any registry of names and/or telephone numbers of persons who do not wish to receive outbound
telephone calls established to comply with paragraph (b)(1 )(iii)(A) of this section, including, but not
limited to, harassing any person who makes such a request; hanging up on that person; falling to
honor the request; requiring the person to listen to a sales pitch before accepting the request;
assessing a charge or fee for honoring the request; requiring a person to call a different number to
submit the request; and requiring the person to identify the seller making the call or on whose behalf
the call is made;
(iii) Initiating any outbound telephone call to a person when:

(A) That person previously has stated that he or she does not wish to receive an outbound
telephone call made by or on behalf of the seller whose goods or services are being offered or made
on behalf of the charitable organization for which a charitable contribution is being solicited; or
(8) That person's telephone number is on the "do-not-call" registry, maintained by the
Commission, of persons who do not wish to receive outbound telephone calls to induce the
purchase of goods or services unless the seller or telemarketer:
(1) Can demonstrate that the seller has obtained the express agreement, In writing, of such
person to place calls to that person. Such written agreement shall clearly evidence such person's
authorization that calls made by or on behalf of a specific party may be placed to that person, and
shall Include the telephone number to which the calls may be placed and the signaturee54 of that
person; or
""For purposes of this Rule, the term 'signature" shall Include an electronic or digital form of signature, to the
extent that such form of signature is recognized as a vaiici signature under appiicabie federal law or state contract
law.

(2) Can demonstrate that the seller has an established business relationship with such person,
and that person has not stated that he or she does not wish to receive outbound telephone calls
under paragraph (b)(1 )(ill)(A) of this section; or

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(iv) Abandoning any outbound telephone call. An outbound telephone call is "abandoned" under
this section if a person answers it and the telemarketer does not connect the call to a sales
representative within two (2) seconds of the person's completed greeting.
{v) Initiating any outbound telephone call that delivers a prerecorded message, other than a
prerecorded mess~ge permitted for compliance with the call abandonment safe harbor in
§310.4(b)(4)(1H), unless:
(A) In any such call to induce the purchase of any good or service, the seller has obtained from
the recipient of the call an express agreement, in writing, that:
(i) The seller obtained only after a clear and conspicuous disclosure that the purpose of the
agreement is to authorize the seller to piace prerecorded calls to such person;
(ii) The seller obtained without requiring, directly or indirectly, that the agreement be executed
as a condition of purchasing any good or service;

(iii) Evidences the willingness of the recipient of the call to receive calls that deliver prerecorded
messages by or on behalf of a specific seller; and
(iv) Includes such person's telephone number and signature;ees and
.., For purposes of this Rule, the term "signature" shall include an electronic or digital form of signature, to the
extent that such form of signature Is recognized as a v~lid signature under applicable federal law or state contract
law,

(B) In any such call to induce the purchase of any good or service, or to induce a charitable
contribution from a member of, or previous donor to, a non-profit charitable organization on whose
behalf the call is made, the seller or telemarketer:
(I) Allows the telephone to ring for at least fifteen (15) seconds or four (4) rings before
disconnecting an unanswered call; and

(ii) Within two (2) seconds after the completed greeting of the person called, plays a
prerecorded message that promptly provides the disclosures required by §310.4(d) or (e), followed
immediately by a disclosure of one or both of the following:
{A) In the case of a call that could be answered In person by a consumer, that the person calied
can use an automated interactive voice and/or keypress-activated opt-out mechanism to assert a Do
Not Call request pursuant to §310.4(b)(1 )(iii)(A) at any time during the message. The mechanism
must:
(1) Automatically add the number called to the seller's entity-specific Do Not Call list;
(2) Once invoked, immediately disconnect the call; and
(3) Be available for use at any time during the message; and
(B) In the case of a call that could be answered by an answering machine or voicemail service,
that. the person called can use a toll-free telephone number to assert a Do Not Call request pursuant

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to §310.4(b)(1 )(iii)(A). The number provided must connect directly to an automated interactive voice
or keypress-activated opt-out mechanism that:
·
(1) Automatically adds the number called to the seller's entity-specific Do Not Call list:
(2) Immediately thereafter disconnects the call; and
(3) ls accessible at any time throughout the duration of the telemarketing campaign; and

laws.

(iii) Complies with all other requirements of this part and other applicable federal and state
·

(C) Any call that complies with all applicable requirements of this paragraph (v) shall not be
deemed to violate §310.4(b)(1 )(Iv) of this part.
(D) This paragraph (v) shall not apply to any outbound telephone call that delivers a
prerecorded healthcare message made by, or on behalf of, a covered entity or its business
associate, as those terms are defined In the HIPM Privacy Rule, 45 CFR 160.103.
(2) It is an abusive telemarketing act or practice and a violation of this Rule for any person to
sell, rent, lease, purchase, or use any list established to comply with §310.4(b)(1)(iii)(A), or
maintained by tl'le Commission pursuant to §310.4(b X1 Xlll)(B), for any purpose except compliance
with the provisions of this Rule or otherwise to prevent telephone calls to telephone numbers on
such lists.
(3) A seller or telemarketer will not be liable for violating §310.4(b)(1)(ii) and (Iii) if It can
demonstrate that, as part of the seller's or telemarketer's routine business pl'8ctice:

(i) It has established and Implemented written procedures to comply with §310.4(b)(1)(ii) and
(ill);
(ii) It has trained its personnel, and any entity assisting in its compliance, in the procedures
established pu·rsuant to §310.4(b)(3)(i);

(iii) The seller, or a telemarketer or another person acting on behalf of the seller or charitable
organization, has maintained and recorded a list of telephone numbers the seller or charitable
organization may not contact, in compliance with §310.4(b)(1 )(ili)(A);

(Iv) The seller or a telemarketer uses a process to prevent telemarketing to any telephone
number on any list established pursuant to §310.4(b )(3)(111) or 310.4(b)(1 )(iii){B), employing a version
of the "do-notNcall" registry obtained from the Commission no more than thirty-one (31) days prior to
the date any call is made, and maintains records documenting this process;
(v) The seller or a telemarketer or another person acting on behalf of the seller or charitable
organization, monitors and enforces compliance with the procedures established pursuant to
§310.4(bX3Xi); and
(vi) Any subsequent call otherwise violating paragraph (b)(1 )(ii) or (iii) of this section is the
result of error and not of failure to obtain any information necessary to comply with a request
pursuant to paragraph {bX1)(iii)(A) of this secUon not to receive further calls by or on behalf of a
seller or charitable organization.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 32 of 37

{4) A seller or telemarketer will not be liable for violating §310.4(b)(1 )(iv) if:
(I) The seller or telemarketer employs technology that ensures abandonment of no more than
three (3) percent of alLcalls answered by a person, measured over the duration of a single calling
campaign, if less than 30 days, or separately over each successive 30-day period or portion thereof
that the campaign continues.
(ii) n,e seller or telemarketer, for each telemarketing call placed, allows the telephone to ring
for at least fifteen (15) seconds or four (4} rings before disconnecting an unanswered call;

(iii) Whenever a sales representative is not available to speak with the person answering the
call within two (2) seconds after the person's completed greeting, the seller or telemarketer promptly
plays a recorded message that states the name and telephone number of the seller on whose behalf
the call was placedeea; and
.., This provision does not affect any seller's or telemarketer's obligation to comply with relevant state and
federal laws, including but not limited to the TCPA, 47 U.S.C. 227, and 47 CFR part 64.1200.

(Iv) The seller or telemarketer, in accordance with §310.S(b)-(d), retains records establishing
compliance with §310.4(b)(4)(i)-(iii).
(c) Calling time restrictions. Without the prior consent of a person, it is an abusive telemarketing
act or practice ·and a violation of this Rule for a telemarketer to engage in outbound telephone calls
to a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. local time at the
called person's location.
(d) Required oral disclosures in the sale of goods or services. It is an abusive telemarketing act
or practice and a vlolatlon of this Rule for a telemarketer In an outbound telephone call or internal or
external upsell to induce the purchase of goods or services to fail to disclose truthfully, promptly, and
in a clear and conspicuous manner to the person receiving the call, the following information:
(1) The Identity bf the seller;
(2) That the purpose of the call is to sell goods or services;
(3) The nature of the goods or services; and
(4) That no purchase or payment is necessary to be able to win a prize or participate In a prize
promotion if a prize promotion is offered and that any purchase or payment will not increase the
person's chances of winning. This disclosure must be .made before or in conjunction with the
description of the prize to the person called. If requested by that person 1 the telemarketer must
disclose the no-purchase/no-payment entry method for the prize promotion; provided, however, that,
in any internal upsell for the sale of goods or services, the seller or telemarketer must provide the
disclosures listed in this section only to the extent that the information in the upsell differs from the
disclosures provided in the initial telemarketing transaction.
(e} Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or
practice and a violation of this Rule for a telemarketer, in an outbound telephone call to induce a
charitable contribution, to fail to disclose truthfully, promptly, and in a clear and conspicuous manner
to the person receiving the call, the following Information:

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 33 of 37

(1) The Identity of the charitable organization on behalf of which the request is being made; and
(2) That the purpose of the call Is to solicit a charitable contribution.
§310.5 Recordkeeplng requirements.

(a) Any seller or telemarketer shall keep, for a period of 24 months from the date the record is
prod~ced, the foilowing records relating to its telemarketing activities:
(1) All substantially different advertising, brochures, telemarketing scripts, and promotional
materials;
·
(2) The name and last known address of each prize recipient and the prize awarded for prizes
that are represented, directly or by implication, to have a value of $25.00 or more:
(3) The name and last known address of each customer, the goods or services purchased, the
date such goods or services were shipped or provided, and the amount paid by the customer for the
goods or servlces; 07
For offers of consumer credit products subject to the Truth In Lending Act, 15 U.S.C. 1601 et seq., and
Regulation Z, 12 CFR 226, compliance with the recordkeeping requirements under the Truth in Lending Act, and
Regulation Z, shall constitute compliance with §310.5(a)(3) of this Rule.
lll)7

(4) The name, any fictitious name used, the last known home address and telephone number,
and the job title(s) for all current and former employees directly involved In telephone sales or
solicitations; provided, however, that ff the seller or telemarketer permits fictitious names to be used
by employees, each fictitious name must be traceable to only one specific employee; and
(5) All verifiable authorizations or records of express informed consent or express agreement
required to be provided or received under this Rule.
(b) A seller or telemarketer may keep the records required by §310.5{a) in any form, and in the
same manner, format, or place as they keep such records in the ordinary course of business. Failure
to keep all records required by §31 O.S{a) shall be a violation of this Rule.
(c) The seller and the telemarketer calling on behalf of the seller may, by written agreement,
allocate responsibility between themselves for the record keeping required by this Section. When a
seller and telemarketer have entered Into such an agreement, the terms of that agreement shall
govern, and the seller or telemarketer, as the case may be, need not keep records that duplicate
those of the other. If the agreement is unclear as to who must maintain any required record(s), or if
no such agreement exists, the seller shall be responsible for complying with §§310.5(a)(1)-{3) and
(5); the telemarketer shall be responsible for complying with §310.5(a)(4).
(d) In the event of any dissolution or termination of the seller's or telemarketers business, the
principal of that seller or telemarketer shall maintain all records as required under this section. In the
event of any sale, assignment, or other change in ownership of the seller's or telemarketers
business, the successor business shall maintain all records required under this section.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 34 of 37

§310.6 Exemptions.

(a) Solicitations to induce charitable contributions via outbound telephone calls are not covered
by §310.4(b)(1 )(iil)(B) of this Rule.
(b) The following acts or practices are exempt from this Rule:
0

(1) The sale of pay-per-call services subject to the Commission's Rule entitled Trad.e
Regulation Rule Pursuant to the Telephone Disclosure 1:md Dispute Resolution Act of 1992," 16 CFR
part 308, provided, however, that this exemption does not apply to the requirements of
§§310.4(a)(1), (a)(7), (b). and (c);
(2) The sale of franchises subject to the Commission's Rule entitled "Disclosure Requirements
and Prohibitions Concerning Franchising," {"Franchise Rule") 16 CFR part 436, and the sale of
business opportunities subject to the Commission's Rule entitled "Disclosure Requirements and
Prohibitions Concerning Business Opportunities,• ("Business Opportunity Rule") 16 CFR part 437,
provided, however, that this exemption does not apply to the requirements of §§310.4(a)(1 ), (a)(7),
(b), and (c):
.

.

(3) Telephone calls in which the sale of goods or services or charitable solicitation is not
completed, and payment or authorization of payment is not required, until after a face-to-face sales
or donation presentation by the seller or charitable organization, provided, however, that this
exemption does not apply to the requirements of §§310.4(a)(1), (a)(7), (b), and (c):
(4) Telephone calls initiated by a customer or donor that are not the result of any solicitation by
a seller, charitable organization, or telemarketer, provided, however, that this exemption does not
apply to any instances of upselllng Included in such telephone calls;
(5) Telephone calls initiated by a customer or donor in response to an advertisement through
any medium, other than direct mail solicitation, provided, however, that this exemption does not
apply to:
(I) Calls initiated by a customer or donor in response to an advertisement relating to investment
opportunities, debt rellef services, business opportunities other than business arrangements covered
by the Franchise Rule or Business Opportunity Rule, or advertisements involving offers for goods or
services descdbed in §310.3(a)(1 )(vi) or §310.4(a)(2) through (4);
(ii) The requirements of §310.4(a){9) or (1 O); or

(Ill) Any Instances of upselling included in such telephone calls;
(6) Telephone calls Initiated by a customer or donor in response to a direct mall solicitation,
Including sollcltatlon.s via the U.S. Postal Service, facsimile transmission, electronic mail, and other
similar methods of delivery in which a solicitation is directed to specific address(es) or person(s), that
clearly, conspicuously, and truthfully discloses all material information listed in §310.3(a}{1), for any
goods or services offered in the direct mail solicitation, and that contains no material
misrepresentation regarding any item contained in §310.3(d) for any requested charitable
contribution; provided, however, that this exemption does not apply to:
(i) Calls Initiated by a customer in response to a direct mail solicitation relating to prize
promotions, Investment opportunities, debt relief services, business opportunities other than

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 35 of 37

business arrangements coverea by the Franchise Rule or Business Opportunity Rule, or goods or
services described in §310.3{a)(1 )(vi) or §310.4(a)(2) through (4);
(ii) The requirements of §310.4(a)(9) or (10); or
(iii) Any instances of upselling included in such telephone calls; and

(7) Telephone calls between a telemarketer and any business to Induce the purchase of goods
or services or a charitable contribution by the business, except calls to induce the retail sale of
nondurable office or cleaning supplies; provided, however, that §§310.4(b)(1 )(iii)(B) and 310~5 shall
not apply to sellers or telemarketers of nondurable office or cleaning supplies.
§310.7 Actions by states and private persons.

(a) Any attorney general or other offfoer of a state authorized by the state to bring an action
under the Telemarketlng and Consumer Fraud and Abuse Prevention Act, and any private person
who brin·gs an action under that Act, shall serve written notice of its action on the Commission, if
feasible, prior to its initiating an action under this Rule. The notice shall be sent to the Office of the
Director, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580, and
shall Include a copy of the state's or private person's complaint and any other pleadings to be flied
with the court. If prior notice is not feasible, the state or private person shall serve the Commission
with therequired notice immediately upon instituting its action.
·
(b) Nothing contained in this Section shall prohibit any attorney general or other authorized
state official from proceeding in state court on the basis of an alleged violation of any clvll or criminal
statute of such. state.
§310.B Fee for access to the National Do Not Call Registry.

(a) It is a violation of this Rule for any seller to initiate, or cause any telemarketer to Initiate, an
outbound telephone call to any person whose telephone number is within a given area code unless
such seller, either directly or through another person, first has paid the annual fee, required by
§310.8{c), for access to telephone numbers within that area code that are included in the National
Do Not Call Registry maintained by the Commission under §310.4(bX1)(111)(B); provided, however,
that such payment Is not necessary if the seller initiates, or causes a telemarketer to initiate, calls
solely to persons pursuant to §§310.4(b)(1 )(iii)(B)(i) or {ii), and the seller does not access the
National Do Not Call Registry for any other purpose.
(b) It is a violation of this Rule for any telemarketer, on behalf of any seller, to initiate an
outbound telephone call to any person whose telephone number is within a given area code unless
that seller, either directly or through another person, first has paid the annual fee, required by
§310;8(c), for access to the telephone numbers within that area code that are included in the
National Do Not Call Registry; provided, however, that.such payment Is not necessary if the seller
initiates, or causes a telemarketer to Initiate, calls solely to persons pursuant to
§§310.4(b)(1)(ill)(B)(I) or (ii), and the seller does not access the National Do Not Call Registry for any
other purpose.
(o) The annual fee, which must be paid by any person prior to obtaining access to the National
Do Not Call Registry, is $63 for each area code of data accessed, up to a maximum of $17,406;
provided, however, that there shall be no charge to any personfor accessing the first five area codes
of data, and provided further, that there shall be no charge to any person engaging in or causing
others to engage In outbound telephone calls to consumers and who is accessing area codes of

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 36 of 37

data in the National Do Not Call Registry if the person is permitted to access, _IJut is not required to
access, the National Do Not Call Registry under this Rule, 47 CFR 64.1200, or any other Federal
regulation or law. No person may participate in any arrangement to share the cost of accessing the
National Do Not Call Registry, including any arrangement with any telemarketer or service provider
to divide the costs to access the registry among various clients of that telemarketer or service
provider.
(d) Each person who pays, either directly or through another person, the annual fee set forth in
paragraph (c) of this section, each person excepted under paragraph (c) from paying the annual fee,
and each person excepted from paying an annual fee under §310.4(b){1 )(iii)(B), will be provided a
unique account number that will allow that person to access the registry data for the selected area
codes at any time for the twelve month period beginning on the first day of the month in which the
person paid the fee ("the annual period"). To obtain access to additional area codes of data during
the first six months of the annual period, each person required to pay the fee under paragraph (c) of
this section must first pay $63 for each additional area code of data not lnltlally selected. To obtain
access to additional area codes of data during the second six months of the annual period, each
person required to pay the fee under paragraph (c) of.this section must first pay $32 for each
additional area code of data not initially selected. The payment of the additional fee will permit the
person to access the additional area codes of data for the remainder of the annual period.
(e) Access to the National Do Not Call Registry is limited to telemarketers, sellers, others
engaged in or causing others to engage in telephone calls to consumers, service providers acting.on
behalf of such persons, and any government agency that has law enforcement authority. Prior to
accessing the National Do Not Call Registry, a person must provide the identifying information
required by the operator of the registry to collect the fee, and must certify, under penalty of law, that
the person is accessing the registry solely to comply with the provisions of this Rule or to otherwise
prevent telephone calls to telephone numbers on the registry. If the person is accessing the registry
on behalf of sellers, that person also must identify each of the sellers on whose behalf it Is accessing
the registry, must provide each seller's unique account number for access to the national registry,
and must certify, under penalty of law, that the sellers will be using the information gathered from the
registry solely to comply with the provisions of this Rule or otherwise to prevent telephone calls to
telephone numbers on the registry.

§310.9 Severabillty.
The provisions of this Rule are separate and severable from one another. If any provision Is stayed
or determined to be invalid, it is _the Commission's intention that the remaining provisions shall
continue in effect.

Case 0:17-cv-61937-WPD Document 94 Entered on FLSD Docket 11/30/2018 Page 37 of 37

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Aef63abf0c0f45407. Public record. Not legal advice.