Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 1 of 16 Page ID #:50
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`
`FEDERAL TRADE COMMISSION,
`
`Case No. ____________
`2:20-cv-7996
`
`Plaintiff,
`
`v.
`
`AGE OF LEARNING, INC., a
`corporation, also d/b/a ABCmouse and
`ABCmouse.com,
`
`Defendant.
`
`STIPULATED ORDER FOR
`PERMANENT INJUNCTION
`AND MONETARY
`JUDGMENT
`
`Plaintiff, the Federal Trade Commission (“Commission”), filed its
`Complaint for Permanent Injunction and Other Equitable Relief (“Complaint”) for
`a permanent injunction and other equitable relief in this matter, pursuant to
`Sections 13(b) and 19 of the Federal Trade Commission Act (“FTC Act”), 15
`U.S.C. §§ 53(b), 57b, and the Restore Online Shoppers’ Confidence Act
`
`STIPULATED FINAL ORDER
`
`- 1 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 2 of 16 Page ID #:51
`
`(“ROSCA”), 15 U.S.C. § 8404. The Commission and Defendant stipulate to the
`entry of this Stipulated Order for Permanent Injunction and Monetary Judgment
`(“Order”) to resolve all matters in dispute in this action between them.
`THEREFORE, IT IS ORDERED as follows:
`FINDINGS
`This Court has jurisdiction over this matter.
`A.
`The Complaint alleges that Defendant participated in deceptive and
`B.
`unfair acts or practices in violation of Sections 13(b) and 19 of the FTC Act, 15
`U.S.C. §§ 53(b), 57b, and ROSCA, 15 U.S.C. § 8404, in the advertisement,
`marketing, distribution, and sale of online educational programs to consumers
`throughout the United States.
`C.
`Defendant neither admits nor denies any of the allegations in the
`Complaint, except as specifically stated in this Order. Only for purposes of this
`action, Defendant admits the facts necessary to establish jurisdiction.
`D.
`Defendant waives any claim that it may have under the Equal Access
`to Justice Act, 29 U.S.C. § 2412, concerning the prosecution of this action through
`the date of this Order, and agrees to bear its own costs and attorney fees.
`E.
`Defendant waives all rights to appeal or otherwise challenge or
`contest the validity of this Order.
`DEFINITIONS
`For the purpose of this Order, the following definitions apply:
`“Billing Information” means any data that enables any person to
`A.
`access a customer’s account, such as a credit card, checking, savings, share or
`similar account, utility bill, mortgage loan account, or debit card.
`“Charge,” “Charged,” or “Charging” means any attempt to collect
`B.
`money or other consideration from a consumer, including causing Billing
`
`STIPULATED FINAL ORDER
`
`- 2 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 3 of 16 Page ID #:52
`
`Information to be submitted for payment, including against the consumer’s credit
`card, debit card, bank account, telephone bill, or other account.
`“Clear(ly) and Conspicuous(ly)” means that a required disclosure is
`C.
`difficult to miss (i.e., easily noticeable) and easily understandable by ordinary
`consumers, including in all of the following ways:
`1.
`In any communication that is solely visual or solely audible, the
`disclosure must be made through the same means through which the
`communication is presented. In any communication made through both visual and
`audible means, such as a television advertisement, the disclosure must be presented
`simultaneously in both the visual and audible portions of the communication even
`if the representation requiring the disclosure is made in only one means.
`2.
`A visual disclosure, by its size, contrast, location, the length of
`time it appears, and other characteristics, must stand out from any accompanying
`text or other visual elements so that it is easily noticed, read, and understood.
`3.
`An audible disclosure, including by telephone or streaming
`video, must be delivered in a volume, speed, and cadence sufficient for ordinary
`consumers to easily hear and understand it.
`4.
`In any communication using an interactive electronic medium,
`such as the Internet or software, the disclosure must be unavoidable.
`5.
`The disclosure must use diction and syntax understandable to
`ordinary consumers and must appear in each language in which the representation
`that requires the disclosure appears.
`6.
`The disclosure must comply with these requirements in each
`medium through which it is received, including all electronic devices and face-to-
`face communications.
`7.
`The disclosure must not be contradicted or mitigated by, or
`inconsistent with, anything else in the communication.
`
`STIPULATED FINAL ORDER
`
`- 3 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 4 of 16 Page ID #:53
`
`8. When the representation or sales practice targets a specific
`audience, such as children, the elderly, or the terminally ill, “ordinary consumers”
`includes reasonable members of that group.
`“Defendant” means Age Of Learning, Inc., a corporation, which also
`D.
`does business as ABCmouse and ABCmouse.com, as well as any successors and
`assigns.
`“Negative Option Feature” means, in an offer or agreement to sell or
`E.
`provide any good or service, a provision under which the consumer’s silence or
`failure to take affirmative action to reject a good or service or to cancel the
`agreement is interpreted by the seller or provider as acceptance or continuing
`acceptance of the offer.
`“Telemarketing” means any plan, program, or campaign which is
`F.
`conducted to induce the purchase of goods or services by use of one or more
`telephones, and which involves a telephone call, whether or not covered by the
`Telemarketing Sales Rule.
`
`I.
`
`ORDER
`PROHIBITION AGAINST MISREPRESENTATIONS
`RELATED TO NEGATIVE OPTIONS
`IT IS ORDERED that Defendant, Defendant’s 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 promoting or offering for sale any good or service with a
`Negative Option Feature, are permanently restrained and enjoined from
`misrepresenting, expressly or by implication:
`A.
`Any cost to the consumer to purchase, receive, use, or return the
`initial good or service;
`B.
`That the consumer will not be Charged for any good or service;
`
`STIPULATED FINAL ORDER
`
`- 4 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 5 of 16 Page ID #:54
`
`That a good or service is offered on a “free,” “trial,” “sample,”
`C.
`“bonus,” “gift,” “no obligation,” “discounted,” “upgraded” basis, or words of
`similar import, denoting or implying the absence of an obligation on the part of the
`recipient of the offer to affirmatively act in order to avoid Charges, including
`where a Charge will be assessed pursuant to the offer unless the consumer takes
`affirmative steps to prevent or stop such a Charge;
`D.
`That the consumer can obtain a good or service for a processing,
`service, shipping, handling, or administrative fee with no further obligation;
`E.
`Any purpose for which the consumer’s Billing Information will be
`
`used;
`
`The date by which the consumer will incur any obligation or be
`F.
`Charged unless the consumer takes an affirmative action on the Negative Option
`Feature;
`That a transaction has been authorized by the consumer;
`G.
`Any material aspect of the nature or terms of a refund, cancellation,
`H.
`exchange, or repurchase policy for the good or service, including whether it is easy
`for consumers to cancel Defendant’s good or service; or
`I.
`Any other material fact.
`II.
`REQUIRED DISCLOSURES RELATING TO NEGATIVE
`OPTION FEATURES
`IT IS FURTHER ORDERED that Defendant, Defendant’s 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 promoting or offering for sale any good or service
`with a Negative Option Feature, are permanently restrained and enjoined from:
`A.
`Representing directly or indirectly, expressly or by implication, that
`any good or service that includes a Negative Option Feature is being offered on a
`
`STIPULATED FINAL ORDER
`
`- 5 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 6 of 16 Page ID #:55
`
`free, trial, no obligation, reduced, upgraded, or discounted basis, or for a specific
`term, without disclosing Clearly and Conspicuously, and immediately adjacent to,
`any such representation:
`1.
`The extent to which the consumer must take any affirmative
`action to avoid any Charges: a) for the offered good or service, b) of an increased
`amount after the trial or promotional period ends, and c) on a recurring basis;
`2.
`The total cost (or range of costs) the consumer will be Charged
`and, if applicable, the frequency of such Charges unless the consumer timely takes
`steps to prevent or stop such Charges; and
`3.
`The deadline(s) (by date or frequency) by which the consumer
`must affirmatively act in order to stop all recurring Charges.
`B.
`Obtaining Billing Information from a consumer for any transaction
`involving a good or service that includes a Negative Option Feature, without first
`disclosing Clearly and Conspicuously, and immediately adjacent to where a
`consumer provides Billing Information:
`1.
`The extent to which the consumer must take affirmative action
`to avoid any Charges: a) for the offered good or service, b) of an increased amount
`after the trial or promotional period ends, and c) on a recurring basis;
`2.
`The total cost (or range of costs) the consumer will be Charged,
`the date the initial Charge will be submitted for payment, and, if applicable, the
`frequency of such Charges unless the consumer timely takes affirmative steps to
`prevent or stop such Charges;
`3.
`The deadline(s) (by date or frequency) by which the consumer
`must affirmatively act in order to stop all recurring Charges;
`4.
`The name of the seller or provider of the good or service and, if
`the name of the seller or provider will not appear on billing statements, the billing
`descriptor that will appear on such statements;
`
`STIPULATED FINAL ORDER
`
`- 6 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 7 of 16 Page ID #:56
`
`A description of the good or service;
`5.
`Any Charge or cost for which the consumer is responsible in
`6.
`connection with the cancellation of an order, any service or the return of any good;
`and
`
`The simple cancellation mechanism to stop any recurring
`7.
`Charges, as required by Section IV of this Order.
`C.
`Failing to send the consumer:
`1.
`Immediately after the consumer’s submission of an online
`order, written confirmation of the transaction by email. The email must Clearly
`and Conspicuously disclose all the information required by Subsection B, and
`contain a subject line reading “Order Confirmation” along with the name of the
`good or service, which may read, “Welcome to ABCmouse! Order confirmation,”
`and no additional information; or
`2. Within 2 days after receipt of the consumer’s order by mail or
`telephone, a written confirmation of the transaction, either by email or first class
`mail. The email or letter must Clearly and Conspicuously disclose all the
`information required by Subsection B. The subject line of the email must Clearly
`and Conspicuously state “Order Confirmation” along with the name of the good or
`service, and nothing else. The outside of the envelope must Clearly and
`Conspicuously state “Order Confirmation” along with the name of the product or
`service, and no additional information other than the consumer’s address, the
`Defendant’s return address, and postage.
`III. OBTAINING EXPRESS INFORMED CONSENT
`FOR A NEGATIVE OPTION
`IT IS FURTHER ORDERED that Defendant, Defendant’s 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
`
`STIPULATED FINAL ORDER
`
`- 7 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 8 of 16 Page ID #:57
`
`or indirectly, in connection with promoting or offering for sale any good or service
`with a Negative Option Feature, are permanently restrained and enjoined from
`using Billing Information to obtain payment from a consumer, unless Defendant
`first obtains the express informed consent of the consumer to do so. To obtain
`express informed consent, Defendant must:
`For all written offers (including over the Internet, such as through a
`A.
`web-based application), obtain consent through a check box, signature, or other
`substantially similar method, which the consumer must affirmatively select or sign
`to accept the Negative Option Feature, and no other portion of the offer.
`Defendant shall disclose Clearly and Conspicuously, and immediately adjacent to
`such check box, signature, or substantially similar method of affirmative consent,
`only the following, with no additional information:
`1.
`The extent to which the consumer must take affirmative action
`to avoid any Charges: a) for the offered good or service, b) of an increased amount
`after the trial or promotional period ends, and c) on a recurring basis;
`2.
`The total cost (or range of costs) the consumer will be Charged
`and, if applicable, the frequency of such Charges unless the consumer timely takes
`affirmative steps to prevent or stop such Charges; and
`3.
`The deadline(s) (by date or frequency) by which the consumer
`must affirmatively act in order to stop all recurring Charges.
`For all oral offers, prior to obtaining any Billing Information from the
`B.
`consumer:
`
`Clearly and Conspicuously disclose the information contained
`1.
`in Subsection B of the Section titled Required Disclosures Relating To Negative
`Option Features; and
`2.
`Obtain affirmative unambiguous express oral confirmation that
`the consumer: a) consents to being Charged for any good or service, including
`
`STIPULATED FINAL ORDER
`
`- 8 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 9 of 16 Page ID #:58
`
`providing, at a minimum, the last 4 digits of the consumer’s account number to be
`Charged, b) understands that the transaction includes a Negative Option Feature,
`and c) understands the specific affirmative steps the consumer must take to prevent
`or stop further Charges.
`For transactions conducted through Telemarketing, Defendant shall
`C.
`maintain for 3 years from the date of each transaction an unedited voice recording
`of the entire transaction, including the prescribed statements set out in Subsection
`B of this Section. Each recording must be retrievable by date and by the
`consumer’s name, telephone number, or Billing Information, and must be provided
`upon request to the consumer, the consumer’s bank, or any law enforcement entity.
`IV.
`SIMPLE MECHANISM TO CANCEL NEGATIVE
`OPTION FEATURE
`IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents,
`employees, 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 promoting or offering for sale any good or service
`with a Negative Option Feature, are permanently restrained and enjoined from:
`A.
`Failing to provide a simple mechanism for the consumer to: (1) avoid
`being Charged, or Charged an increased amount, for the good or service and
`(2) immediately stop any recurring Charges. Such mechanism must not be
`difficult, costly, confusing, or time consuming, and must be at least as simple as
`the mechanism the consumer used to initiate the Charge(s).
`B.
`For consumers who entered into the agreement to purchase a good or
`service including a Negative Option Feature over the Internet, such as through a
`web-based application, Defendant must provide a mechanism, accessible on the
`same Internet website or through the same web-based application that consumers
`
`STIPULATED FINAL ORDER
`
`- 9 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 10 of 16 Page ID #:59
`
`can easily use to cancel the product or service and to immediately stop all further
`Charges.
`For consumers who entered into the agreement to purchase a good or
`C.
`service including a Negative Option Feature through an oral offer and acceptance,
`Defendant must maintain a telephone number and a postal address that consumers
`can easily use to cancel the product or service and to immediately stop all further
`Charges. Defendant must assure that all calls to this telephone number are
`answered during normal business hours and that mail to the postal address is read
`regularly.
`
`V. MONETARY JUDGMENT
`Judgment in the amount of Ten Million Dollars ($10,000,000) is
`A.
`entered in favor of the Commission against Defendant, as equitable monetary
`relief.
`B. Defendant is ordered to pay the Commission Ten Million Dollars
`
`($10,000,000), which as Defendant stipulates, its undersigned counsel holds in
`escrow for no purpose other than payment to the Commission. Such payment must
`be made within 7 days of entry of this Order by electronic fund transfer in
`accordance with instructions previously provided by a representative of the
`Commission.
`
`C. Defendant relinquishes 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.
`D.
`The facts alleged in the Complaint will be taken as true, without
`further proof, in any subsequent civil litigation by or on behalf of the Commission,
`including in a proceeding to enforce its rights to any payment or monetary
`judgment pursuant to this Order, such as a nondischargeability complaint in any
`bankruptcy case.
`
`STIPULATED FINAL ORDER
`
`- 10 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 11 of 16 Page ID #:60
`
`The facts alleged in the Complaint establish all elements necessary to
`E.
`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.
`F.
`Defendant acknowledges that its Taxpayer Identification Number
`(Employer Identification Number), which Defendant 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.
`G.
`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 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 Defendant’s practices alleged in the
`Complaint. Any money not used for such equitable relief is to be deposited to the
`U.S. Treasury as disgorgement. Defendant has no right to challenge any actions
`the Commission or its representatives may take pursuant to this Subsection.
`VI. CUSTOMER INFORMATION
`IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents,
`employees, 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 are permanently restrained and enjoined from directly or indirectly
`failing to provide sufficient customer information to enable the Commission to
`efficiently administer consumer redress. If a representative of the Commission
`
`STIPULATED FINAL ORDER
`
`- 11 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 12 of 16 Page ID #:61
`
`requests in writing any information related to redress, Defendant must provide it,
`in the form prescribed by the Commission, within 14 days.
`VII. ORDER ACKNOWLEDGMENTS
`IT IS FURTHER ORDERED that Defendant obtains acknowledgments of
`receipt of this Order:
`A.
`Defendant, within 7 days of entry of this Order, must submit to the
`Commission an acknowledgment of receipt of this Order sworn under penalty of
`perjury.
`For 5 years after entry of this Order, Defendant must deliver a copy of
`B.
`this Order to: (1) all principals, officers, directors, and LLC managers and
`members; (2) all employees, agents, and representatives having managerial
`responsibilities for 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 7 days of entry of this
`Order for current personnel. For all others, delivery must occur before they
`assume their responsibilities.
`C.
`From each individual or entity to which Defendant delivered a copy of
`this Order, Defendant must obtain, within 30 days, a signed and dated
`acknowledgment of receipt of this Order.
`VIII.
`COMPLIANCE REPORTING
`IT IS FURTHER ORDERED that Defendant make timely submissions to
`the Commission:
`A.
`One year after entry of this Order, Defendant must submit a
`compliance report, sworn under penalty of perjury. Defendant must:
`1.
`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;
`
`
`STIPULATED FINAL ORDER
`
`- 12 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 13 of 16 Page ID #:62
`
`identify all of Defendant’s businesses by all of their names,
`2.
`telephone numbers, and physical, postal, email, and Internet addresses;
`3.
`describe the activities of each business, including the goods and
`services offered, the means of advertising, marketing, and sales;
`4.
`describe in detail whether and how Defendant is in compliance
`with each Section of this Order; and
`5.
`provide a copy of each Order Acknowledgment obtained
`pursuant to this Order, unless previously submitted to the Commission.
`B.
`For 20 years after entry of this Order, Defendant must submit a
`compliance notice, sworn under penalty of perjury, within 14 days of any change
`in the following:
`any designated point of contact; or
`1.
`the structure of Defendant or any entity that Defendant has any
`2.
`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.
`C.
`Defendant must submit to the Commission notice of the filing of any
`bankruptcy petition, insolvency proceeding, or similar proceeding by or against
`Defendant within 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.
`
`STIPULATED FINAL ORDER
`
`- 13 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 14 of 16 Page ID #:63
`
`Unless otherwise directed by a Commission representative in writing,
`E.
`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. Age Of Learning, Inc., FTC Matter No. 1723186.
`IX. RECORDKEEPING
`IT IS FURTHER ORDERED that Defendant must create certain records
`for 20 years after entry of the Order, and retain each such record for 5 years.
`Specifically, Defendant must create and retain the following records:
`A.
`Accounting records showing the revenues from all goods or services
`
`sold;
`
`Personnel records showing, for each person providing services,
`B.
`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;
`Records of all consumer complaints and refund requests, whether
`C.
`received directly or indirectly, such as through a third party, and any response;
`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 all websites, advertisements and other marketing materials
`that Defendant has reviewed to ensure compliance with this Order.
`X.
`COMPLIANCE MONITORING
`IT IS FURTHER ORDERED that, for the purpose of monitoring
`Defendant’s compliance with this Order:
`A. Within 14 days of receipt of a written request from a representative of
`the Commission, Defendant must: submit additional compliance reports or other
`
`STIPULATED FINAL ORDER
`
`- 14 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 15 of 16 Page ID #:64
`
`requested information, which must be sworn under penalty of perjury; appear for
`depositions; and 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 Defendant. Defendant must permit representatives of
`the Commission to interview any employee or other person affiliated with
`Defendant 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 Defendant or any individual or entity affiliated with Defendant, 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-1.
`XI. RETENTION OF JURISDICTION
`IT IS FURTHER ORDERED that this Court retains jurisdiction of this
`matter for purposes of construction, modification, and enforcement of this Order.
`
`SO ORDERED this _____ day of ________________, 20___.
`
`______________________________________
`UNITED STATES DISTRICT JUDGE
`
`STIPULATED FINAL ORDER
`
`- 15 -
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`Case 2:20-cv-07996 Document 4-1 Filed 09/01/20 Page 16 of 16 Page ID #:65
`
`SO STIPULATED AND AGREED:
`
`FEDERAL TRADE COMMISSION
`
`______________________________________
`Matthew H. Wernz
`Joannie T. Wei
`Federal Trade Commission, Midwest Region
`230 South Dearborn Street, Suite 3030
`Chicago, IL 60604
`Phone: 312-960-5596 (Wernz)
`Phone: 312-960-5607 (Wei)
`Fax: 312-960-5600
`mwernz@ftc.gov
`jwei@ftc.gov
`Attorneys for Plaintiff Federal Trade Commission
`
`FOR DEFENDANT:
`
`______________________________________(cid:3)
`Jacob S. Kreilkamp
`Munger Tolles & Ols(cid:82)n LLP
`(cid:22)(cid:24)(cid:19)(cid:3)(cid:54)(cid:82)(cid:88)(cid:87)(cid:75)(cid:3)(cid:42)(cid:85)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)
`Los Angeles, CA 90071
`Phone: 213-683-9260
`Fax: 213-593-2960
`Jacob.Kreilkamp@mto.com
`Attorney for Defendant Age of Learning, Inc.
`
`(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)
`Date: __________
`
`August 10, 2020
`Date: __________
`
`(cid:39)(cid:40)(cid:41)(cid:40)(cid:49)(cid:39)(cid:36)(cid:49)(cid:55)(cid:3)(cid:36)(cid:42)(cid:40)(cid:3)(cid:50)(cid:41)(cid:3)(cid:47)(cid:40)(cid:36)(cid:53)(cid:49)(cid:44)(cid:49)(cid:42)(cid:15)(cid:3)(cid:44)(cid:49)(cid:38)(cid:17)(cid:29)
`____________________________________________________________
`
`Shannon CastellaniSh C ll i
`
`
`
`General Counsel and Senior Vice President of Compliance, Age of Learning, Inc.
`
`
`
`Date: _A______ugust 10, 2___020
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`STIPULATED FINAL ORDER
`
`- 16 -
`
`