UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF CONNECTICUT

UNITED STATES OF AMERICA,
Plaintiff,

v.

INTERNATIONAL MASTERS PUBLISHERS INC., a corporation, Defendant.

Civil Action No.

CONSENT DECREE

WHEREAS: Plaintiff, the United States of America, has commenced this action by filing the Complaint herein; defendant International Masters Publishers Inc. has waived service of the Summons and Complaint; the parties have been represented by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this action upon the following terms and conditions, without adjudication of any issue of fact or law and without defendant admitting liability for any of the matters alleged in the Complaint;

THEREFORE, on the joint motion of plaintiff and defendant, it is hereby ORDERED, ADJUDGED, and DECREED as follows:

1. This Court has jurisdiction over the subject matter and the parties.
 
2. The Complaint states a claim upon which relief may be granted against defendant under Sections 5(l), 9, 13(b) and 16(a) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 45(l), 49, 53(b) and 56(a).
 
3. The following definitions shall apply to this Consent Decree:
 
a) "Commission's Order" shall mean the Federal Trade Commission ("Commission") Order in FTC Docket No. C-3205 (1987), a copy of which is attached herewith as Exhibit A and made a part of this Consent Decree.
 
b) "Consumer accounts" shall mean a debt owed to defendant by a direct mail purchaser of informational cards or other goods or products.
 
c) "Debt collector" shall mean an independent third party engaged in the collection of debts on behalf of itself or others.

CIVIL PENALTY

4. Pursuant to Section 5(l) of the FTC Act, 15 U.S.C. 45(l), defendant International Masters Publishers Inc., its successors and assigns, shall pay a monetary civil penalty of Sixty Thousand Dollars ($60,000).

5. Defendant, its successors and assigns, shall make the payment required by Paragraph 4 on the date of entry of this Consent Decree by certified or cashier's check made payable to the Treasurer of the United States and delivered to: The Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530, for appropriate disposition.

6. In the event of any default in payment, which default continues for ten (10) days beyond the due date of payment, the entire unpaid penalty, together with interest as computed pursuant to 28 U.S.C. 1961 from the date of default to the date of payment, shall immediately become due and payable.

INJUNCTION

7. Defendant International Masters Publishers Inc., its successors and assigns, and its officers, agents, representatives and employees, and all persons in active concert or participation with any one or more of them who receive actual notice of this Consent Decree by personal service or otherwise, are hereby permanently enjoined from ever violating, directly or through any corporation, subsidiary, division, or other device, any provision of the Commission's Order.

8. In the event that the Commission's Order is hereafter modified, defendant's compliance with such Order as so modified shall not be deemed a violation of this injunction.

PERSONS AFFECTED; CONTINUING JURISDICTION

9. Defendant International Masters Publishers Inc. shall, within thirty (30) days after the entry of this Consent Decree, provide a copy of the Commission's Order and a copy of this Consent Decree to each of its officers and to each of its agents and employees (including, but not limited to, debt collectors) having responsibilities with respect to the subject matter of this Consent Decree. Within ten (10) days of complying with this paragraph, defendant shall file an affidavit with the Court, and serve the Federal Trade Commission by mailing a copy thereof to the Associate Director for Enforcement, Bureau of Consumer Protection, Washington, D.C. 20580, setting forth the fact and manner of its compliance, including the name and title of each person to whom a copy of the Consent Decree has been provided.

10. Within five (5) days of the employment of a debt collector or any person responsible for collecting on consumer accounts, or within five (5) days of the sale, transfer, or assignment of title to consumer accounts to any debt collector, defendant shall provide such debt collector or person with a copy of the Commission's Order and this Consent Decree, and at such time shall secure a signed statement from such person acknowledging receipt of a copy of the Commission Order's and this Consent Decree.

11. For a period of five (5) years from the date of entry of this Consent Decree, defendant International Masters Publishers Inc., its successors and assigns, shall maintain and, upon request, make available to the Commission, copies of all business records demonstrating compliance with the terms and provisions of this Consent Decree.

12. Defendant International Masters Publishers Inc., its successors and assigns, shall notify the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, at least thirty (30) days prior to any change in its business, including but not limited to merger, incorporation, dissolution, assignment or sale which results in the emergence of a successor corporation, the creation or dissolution of a subsidiary or parent, or any other change which may affect defendant's obligations under this judgment.

13. This action and the relief awarded herein, is in addition to and not in lieu of other remedies as may be provided by law, including both civil and criminal remedies.

14. This Court shall retain jurisdiction of this matter for the purpose of enabling any of the parties to this Consent Decree to apply to the Court at any time for such further orders or directives as may be necessary or appropriate for the interpretation or modification of this Consent Decree, for the enforcement of compliance therewith, for the redress of any violations thereof, or for the punishment of any violations thereof.

JUDGMENT IS THEREFORE ENTERED in favor of plaintiff and against defendant, pursuant to all the terms and conditions recited above.

Dated this ________ day of _______________, 19__.

United States District Judge

The parties, by their respective counsel, hereby consent to the terms and conditions of the Consent Decree as set forth above and consent to the entry thereof. Defendant waives any rights that may arise under the Equal Access to Justice Act, 28 U.S.C. 2412.

FOR THE UNITED STATES OF AMERICA:

FRANK W. HUNGER
Assistant Attorney General
Civil Division
United States Department of Justice

CHRISTOPHER F. DRONEY
United States Attorney
District of Connecticut

By: ___________________________________
Assistant United States Attorney

EUGENE M. THIROLF
Director
Office of Consumer Litigation

___________________________________
ELIZABETH STEIN
Attorney
Office of Consumer Litigation
Civil Division
U.S. Department of Justice
Washington, D.C. 20530
(202) 307-0486

FOR THE FEDERAL TRADE COMMISSION:

ELAINE D. KOLISH
Associate Director for Enforcement

JUSTIN DINGFELDER
Assistant Director for Enforcement

LOUISE R. JUNG
CAROL J. JENNINGS
Attorneys
Division of Enforcement
Bureau of Consumer Protection
Federal Trade Commission
(202) 326-2989, 326-3010

FOR THE DEFENDANT:

INTERNATIONAL MASTERS PUBLISHERS INC.

By:

International Masters Publishers Inc.

McCUTCHEN, DOYLE, BROWN & ENERSEN
Attorneys for Defendant
1101 Pennsylvania Avenue, N.W.
Suite 800
Washington, D.C. 20004
(202) 628-4900

By: PATRICK O. CAVANAUGH
A Member of the Firm