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

FEDERAL TRADE COMMISSION

[File No. 952-3388]

Georgetown Publishing House Limited Partnership; Georgetown

Publishing, Inc.; Daniel Levinas; Consent Agreement With Analysis To

Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Consent agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting

unfair acts and practices and unfair methods of competition, this

consent agreement, accepted subject to final Commission approval, would

prohibit the Washington, D.C.-based publishing firm from

misrepresenting that an advertisement is an independent review or

article, or that it is not a paid advertisement. The consent agreement

settles allegations that Georgetown used

[[Page 8937]]

deceptive advertising practices to promote the sale of a book titled

The American Speaker: Your Guide to Successful Speaking.

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

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

Room 159, 6th Street and Pennsylvania Avenue NW., Washington, D.C.

20580.

FOR FURTHER INFORMATION CONTACT: Joel Winston, Federal Trade

Commission, S-4002, 6th and Pennsylvania Avenue NW., Washington, DC

20580. (202) 326-3153. Lesley Anne Fair, Federal Trade Commission, S-

4002, 6th and Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-

3081.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of

the Commission's Rules of Practice (16 CFR 2.34), notice is hereby

given that the following consent agreement containing a consent order

to cease and desist, having been filed with and accepted, subject to

final approval, by the Commission, has been placed on the public record

for a period of sixty (60) days. Public comment is invited. Such

comments or views will be considered by the Commission and will be

available for inspection and copying at its principal office in

accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of

Practice (16 CFR 4.9(b)(6)(ii)).

In the matter of: Georgetown Publishing House Limited

Partnership, a limited partnership; Georgetown Publishing House,

Inc., a corporation; and Daniel Levinas, individually and as an

officer of said corporation.

File No. 952-3388.

Agreement Containing Consent Order To Cease and Desist

The Federal Trade Commission having initiated an investigation of

certain acts and practices of Georgetown Publishing House Limited

Partnership, a limited partnership; Georgetown Publishing House, Inc.,

a corporation; and Daniel Levinas, individually and as an officer of

Georgetown Publishing House, Inc. (``proposed respondents''); and it

now appearing that proposed respondents are willing to enter into an

agreement containing an order to cease and desist from the use of the

acts and practices being investigated,

It is hereby agreed by and between Georgetown Publishing House

Limited Partnership, by its duly authorized General Partner; Georgetown

Publishing House, Inc., by its duly authorized officer; and Daniel

Levinas, individually and as an officer of Georgetown Publishing House,

Inc.; and counsel for the Federal Trade Commission that:

1. Proposed respondent Georgetown Publishing House Limited

Partnership is a limited partnership organized, existing, and doing

business under and by virtue of the laws of the District of Columbia,

with its principal office or place of business at 1101 30th Street NW.,

Washington, D.C. 20007.

Proposed respondent Georgetown Publishing House, Inc. is a

corporation organized, existing, and doing business under and by virtue

of the laws of the District of Columbia, with its principal office or

place of business at 1101 30th Street NW., Washington, D.C. 20007.

Georgetown Publishing House, Inc., is General Partner of Georgetown

Publishing House Limited Partnership.

Proposed respondent Daniel Levinas is an officer of Georgetown

Publishing House, Inc. Individually or in concert with others, he

formulates, directs and controls the policies, acts and practices of

said corporation and his address is the same as that of said

corporation.

2. Proposed respondents admit all the jurisdictional facts set

forth in the draft of complaint here attached.

3. Proposed respondents waive:

(a) Any further procedural steps;

(b) The requirement that the Commission's decision contain a

statement of findings of fact and conclusions of law; and

(c) All rights to seek judicial review or otherwise to challenge or

contest the validity of the order entered pursuant to this agreement.

4. This agreement shall not become part of the public record of the

proceeding unless and until it is accepted by the Commission. If this

agreement is accepted by the Commission, it, together with the draft of

complaint contemplated thereby, will be placed on the public record for

a period of sixty (60) days and information in respect thereto publicly

released. The Commission thereafter may either withdraw its acceptance

of this agreement and so notify the proposed respondents, in which

event it will take such action as it may consider appropriate, or issue

and serve its complaint (in such form as the circumstances may require)

and decision, in disposition of the proceeding.

5. This agreement is for settlement purposes only and does not

constitute an admission by proposed respondents that the law has been

violated as alleged in the draft of complaint here attached, or that

the facts as alleged in the draft complaint, other than the

jurisdictional facts, are true.

6. This agreement contemplates that, if it is accepted by the

Commission, and if such acceptance is not subsequently withdrawn by the

Commission pursuant to the provisions of Section 2.34 of the

Commission's Rules, the Commission may, without further notice to

proposed respondents, (1) issue its complaint corresponding in form and

substance with the draft of complaint here attached and its decision

containing the following order to cease and desist in disposition of

the proceeding and (2) make information public in respect thereto. When

so entered, the order to cease and desist shall have the same force and

effect and may be altered, modified, or set aside in the same manner

and within the same time provided by statute for other orders. The

order shall become final upon service. Delivery by the U.S. Postal

Service of the complaint and decision containing the agreed-to-order to

proposed respondents' address as stated in this agreement shall

constitute service. Proposed respondents waive any right they may have

to any other manner of service. The complaint may be used in construing

the terms of the order, and no agreement, understanding,

representation, or interpretation not contained in the order or the

agreement may be used to vary or contradict the terms of the order.

7. Proposed respondents have read the proposed complaint and order

contemplated hereby. They understand that once the order has been

issued, they will be required to file one or more compliance reports

showing that they have fully complied with the order. Proposed

respondents further understand that they may be liable for civil

penalties in the amount provided by law for each violation of the order

after it becomes final.

Order

I

It is ordered that respondents Georgetown Publishing House Limited

Partnership, a limited partnership, and its successors and assigns;

Georgetown Publishing House, a corporation, its successors and assigns,

and its officers; and Daniel Levins, individually and as an officer of

said corporation; and respondents' agents, representatives, and

employees, directly or through any corporation, subsidiary, division or

other device, in connection with the advertising, promotion, offering

for sale, sale, or distribution of any product in or affecting

commerce, as ``commerce'' is defined in the Federal Trade Commission

Act, do forthwith cease and desist from:

[[Page 8938]]

A. Misrepresenting, directly or indirectly, that such product has

been independently reviewed or evaluated;

B. Misrepresenting, directly or indirectly, that an advertisement

is an independent review or article or is not a paid advertisement.

II

It is further ordered that respondents Georgetown Publishing House

Limited Partnership and Georgetown Publishing House, Inc., their

successors and assigns, shall for a period of five (5) years from the

date of entry of this Order maintain and make available to the Federal

Trade Commission within seven (7) business days of the date of the

receipt of a written request, business records demonstrating compliance

with the terms and provisions of this order.

III

It is further ordered that respondents Georgetown Publishing House

Limited Partnership and Georgetown Publishing House, Inc., their

successors and assigns, shall:

A. Within thirty (30) days after service of this order, provide a

copy of this order to each of its current principals, officers,

directors, and managers, and to all personnel, agents, and

representatives having sales, advertising, or policy responsibility

with respect to the subject matter of this order; and

B. For a period of ten (10) years from the date of entry of this

order, provide a copy of this order to each of its future principals,

officers, directors, and managers, and to all personnel, agents, and

representatives having sales, advertising, or policy responsibility

with respect to the subject matter of this order within three (3) days

after the person commences his or her responsibilities.

IV

It is further ordered that respondents Georgetown Publishing House

Limited Partnership and Georgetown Publishing House, Inc., their

successors and assigns, shall notify the Federal Trade Commission at

least thirty (30) days prior to any proposed change in structure,

including but not limited to dissolution, assignment, or sale resulting

in the emergence of a successor corporation or partnership, the

creation or dissolution of subsidiaries or affiliates, the planned

filing of a bankruptcy petition, or any other change in the corporation

or partnership that may affect compliance obligations arising out of

this order.

V

It is further ordered that respondent Daniel Levinas shall, for a

period of five (5) years from the date of entry of this order, notify

the Commission within thirty (30) days of the discontinuance of his

present business or employment and of his affiliation with any new

business or employment which involves the sale of consumer products.

Each notice of affiliation with any new business or employment shall

include the respondent's new business address and telephone number,

current home address, and a statement describing the nature of the

business or employment and his duties and responsibilities.

VI

It is further ordered that this order will terminate twenty years

from the date of its issuance, or twenty years from the most recent

date that the United States or the Federal Trade Commission files a

complaint (with or without an accompanying consent decree) in federal

court alleging any violation of the order, whichever comes later;

provided, however, that the filing of such a complaint will not affect

the duration of:

A. Any paragraph in this order that terminates in less than twenty

years;

B. This order's application to any respondent that is not named as

a defendant in such complaint; and

C. This order if such complaint is filed after the order has

terminated pursuant to this paragraph.

Provided further, that if such complaint is dismissed or a federal

court rules that the respondent did not violate any provision of the

order, and the dismissal or ruling is either not appealed or upheld on

appeal, then the order will terminate according to this paragraph as

though the complaint was never filed, except that the order will not

terminate between the date such complaint is filed and the later of the

deadline for appealing such dismissal or ruling and the date such

dismissal or ruling is upheld on appeal.

VII

It is further ordered that respondents shall, within sixty (60)

days after service of this Order, and at such other times as the

Federal Trade Commission may require, file with the Commission a

report, in writing, setting forth in detail the manner and form in

which they have complied with this order.

Analysis of Proposed Consent Order To Aid Public Comment

The Federal Trade Commission has accepted, subject to final

approval, an agreement to a proposed consent order from Georgetown

Publishing House Limited Partnership; Georgetown Publishing House,

Inc.; and Daniel Levinas, the president of Georgetown Publishing House.

The respondents sell various business publications, including The

American Speaker: Your Guide to Successful Speaking, which are

advertised through direct mail promotions to consumers.

The proposed consent order has been placed on the public record for

sixty (60) days for receipt of comments by interested persons. Comments

received during this period will become part of the public record.

After sixty (60) days, the Commission will again review the agreement

and the comments received and will decide whether it should withdraw

from the agreement and take other appropriate action, or make final the

proposed order contained in the agreement.

In this case, proposed respondents sent direct mail solicitations

to consumers for The American Speaker: Your Guide to Successful

Speaking. The solicitation was headed with the word ``REVIEW'' and was

printed on glossy paper with a torn left margin, similar in appearance

to an article torn out of a magazine. The bottom of the page included

the words ``page 17'' and ``November 1994,'' suggesting that the

``review'' had appeared on that page of a monthly magazine. The second

page of the ``review'' included the carry-over conclusion of an

unrelated article crossed out by hand that was purportedly ``continued

from page 12.'' Attached to the purported ``review'' was a post-it note

containing the handwritten notation:

[Recipient's name],

Try this.

It works!

J

The Commission's complaint in this matter charges the proposed

respondents with falsely representing that the direct mail solicitation

was a book review written by an independent journalist and reviewer and

had been disseminated in a magazine or other independent publication.

In fact, according to the complaint, the clipping was not an

independent review from a magazine sent by an acquaintance. Rather it

was an advertisement written and sent by the proposed respondents.

The proposed order contains provisions designed to remedy the

alleged violations. Part I of the proposed order prohibits the proposed

respondents from misrepresenting that any product has been

independently reviewed or evaluated. In addition, Part

[[Page 8939]]

I prohibits the proposed respondents from misrepresenting that an

advertisement is an independent article or review or is not a paid

advertisement. The proposed order also contains standard recordkeeping

and reporting requirements, including a provision sunsetting the order

after twenty years under certain circumstances.

The purpose of this analysis is to facilitate public comment on the

proposed order. It is not intended to constitute an official

interpretation of the agreement and proposed order or to modify in any

way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 96-5225 Filed 3-5-96; 8:45 am]

BILLING CODE 6750-01-M