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`BEFORE THE FEDERAL TRADE COMMISSION
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`1923123
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`COMMISSIONERS:
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`Rebecca Kelly Slaughter, Acting Chair
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`Noah Joshua Phillips
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`Rohit Chopra
`Christine S. Wilson
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`In the Matter of
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`AMAZON.COM, INC., a corporation,
`and
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`AMAZON LOGISTICS, INC., a corporation.
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`DECISION AND ORDER
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`DOCKET NO. C-4746
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`DECISION
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`The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and
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`practices of the Respondents named in the caption. The Commission’s Bureau of Consumer
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`Protection (“BCP”) prepared and furnished to Respondents a draft Complaint. BCP proposed to
`present the draft Complaint to the Commission for its consideration. If issued by the
`Commission, the draft Complaint would charge the Respondents with violations of the Federal
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`Trade Commission Act.
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`Respondents and BCP thereafter executed an Agreement Containing Consent Order
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`(“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondents that
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`they neither admit nor deny any of the allegations in the Complaint, except as specifically stated
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`in this Decision and Order, and that only for purposes of this action, they admit the facts
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`necessary to establish jurisdiction; and 2) waivers and other provisions as required by the
`Commission’s Rules.
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`The Commission considered the matter and determined that it had reason to believe that
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`Respondents have violated the Federal Trade Commission Act, and that a Complaint should
`issue stating its charges in that respect. The Commission accepted the executed Consent
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`Agreement and placed it on the public record for a period of 30 days for the receipt and
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`consideration of public comments. The Commission duly considered any comments received
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`from interested persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further
`conformity with the procedure prescribed in Rule 2.34, the Commission issues its Complaint,
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`makes the following Findings, and issues the following Order:
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`Page 1 of 7
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`1. The Respondents are:
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`Findings
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`a. Respondent Amazon.com, Inc., a Delaware corporation with its principal office or
`place of business at 410 Terry Avenue North, Seattle, Washington, 98126.
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`b. Respondent Amazon Logistics, Inc., a Delaware corporation with its principal office
`or place of business at 410 Terry Avenue North, Seattle, Washington, 98126. Amazon
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`Logistics, Inc. is a wholly owned subsidiary of Amazon.com, Inc.
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`2. The Commission has jurisdiction over the subject matter of this proceeding and over the
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`Respondents, and the proceeding is in the public interest.
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`ORDER
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`Definitions
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`For purposes of this Order, the following definitions apply:
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`(cid:36)(cid:17) “Respondents” means Amazon.com, Inc., and Amazon Logistics, Inc., and their(cid:3)
`successors and assigns, individually or collectively, or in any combination.
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`(cid:37)(cid:17) “Driver” means someone, regardless of employment status with Respondents, who(cid:3)
`provides delivery services by accepting individual offers to make a single delivery or set(cid:3)
`of deliveries to Respondents’ customers.
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`Provisions
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`I. Prohibited Misrepresentations
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`IT IS ORDERED that Respondents, and Respondents’ officers, agents, employees, and
`attorneys, and all other persons in active concert or participation with any of them, who receive
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`actual notice of this Order, whether acting directly or indirectly, in connection with any delivery
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`program or service using Drivers, must not misrepresent, expressly or by implication:
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`A. The income a Driver is likely to earn;
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`B. The amount Respondents will pay Drivers;
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`C. That Respondents will give Drivers customer tips in addition to Respondents’
`contribution to Drivers’ earnings;
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`D. The percentage or amount of any customer tip a Driver will receive; or
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`E. That any amount customers pay is a tip.
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`Page 2 of 7
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` II. Prohibition Against Unauthorized Use of Tips
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`IT IS FURTHER ORDERED that Respondents, Respondents’ 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 any
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`delivery program or service using Drivers, must not change the extent to which they use a
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`Driver’s tips toward the Respondents’ contribution to the Driver’s earnings without first
`obtaining express informed consent from the Driver.
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`IT IS FURTHER ORDERED that:
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`III. Monetary Relief
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`A. Respondents must pay to the Commission $61,710,583, which Respondents stipulate
`their undersigned counsel holds in escrow for no purpose other than payment to the
`Commission.
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`B. Such payment must be made within 8 days of the effective date of this Order by
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`electronic fund transfer in accordance with instructions provided by a representative of
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`the Commission.
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`C. Respondents 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.
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`D. The facts alleged in the Complaint will be taken as true, without further proof, in any
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`subsequent civil litigation by or on behalf of the Commission to enforce its rights to any
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`payment pursuant to this Order, such as a nondischargeability complaint in any
`bankruptcy case.
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`E. The facts alleged in the Complaint establish all elements necessary to sustain an action by
`or on behalf of the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy
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`Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for
`such purposes.
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`F. 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 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 relief (including consumer information
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`remedies) as it determines to be reasonably related to Respondents’ practices alleged in
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`the Complaint. Any money not used is to be deposited to the U.S. Treasury.
`Respondents have no right to challenge any activities pursuant to this Provision.
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`IV. Driver Information
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`IT IS FURTHER ORDERED that Respondents must directly or indirectly provide
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`sufficient Driver information to enable the Commission to efficiently administer consumer
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`Page 3 of 7
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`redress to Drivers. Respondents represent that they have provided this redress information to the
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`Commission. If a representative of the Commission requests in writing any information related
`to redress, Respondents must provide it, in the form prescribed by the Commission
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` representative, within 14 days.
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` V. Acknowledgments of the Order
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`IT IS FURTHER ORDERED that Respondents obtain acknowledgments of receipt of this
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` Order:
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` A. Each Respondent, within 10 days after the effective date of this Order, must submit to the
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`Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.
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`B. For 3 years after the issuance date of this Order, each Respondent must deliver a copy of
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`this Order to: (1) all principals, officers, directors, and LLC managers and members of
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`Respondents; (2) all employees, agents, and representatives of Respondents managing
`conduct related to the subject matter of this Order; and (3) any business entity resulting
`from any change in structure as set forth in the Provision titled Compliance Reports and
`Notices. Delivery must occur within 10 days after the effective date of this Order for
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`current personnel. For all others, delivery must occur before they assume their
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`responsibilities.
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`C. From each individual or entity to which Respondent delivered a copy of this Order,
`Respondent must obtain, within 30 days, a signed and dated acknowledgment of receipt
`of this Order.
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`VI. Compliance Reports and Notices
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` IT IS FURTHER ORDERED that Respondents make timely submissions to the
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` Commission:
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`A. One year after the issuance date of this Order, each Respondent must submit a
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` compliance report, sworn under penalty of perjury, in which each Respondent must:
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`1. identify the primary physical, postal, and email address and telephone number, as
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` designated points of contact, which representatives of the Commission, may use to
`communicate with Respondent;
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`2. identify all of that Respondent’s businesses that could violate this Order by all of their
`names, telephone numbers, and physical, postal, email, and Internet addresses;
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`3. describe the activities of each business, including changes to and representations
`about Drivers’ tips or compensation, the means of advertising, marketing, and sales,
`and the involvement of any other Respondent;
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`4. describe in detail whether and how that Respondent is in compliance with each
`Provision of this Order; and
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`Page 4 of 7
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`5. provide a copy of each Acknowledgment of the Order obtained pursuant to this
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` Order, unless previously submitted to the Commission.
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`B. For 10 years after the issuance date of this Order, each Respondent must submit a
`compliance notice, sworn under penalty of perjury, within 14 days of any change in the
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`following:
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`1. any designated point of contact; or
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`2. the structure of any Respondent or any entity that Respondent has any ownership
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`interest in or controls directly or indirectly that may affect compliance obligations
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`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
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`this Order.
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`C. Each Respondent must submit notice of the filing of any bankruptcy petition, insolvency
`proceeding, or similar proceeding by or against such Respondent within 14 days of its
`filing.
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`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
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`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.
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`E. Unless otherwise directed by a Commission representative in writing, all submissions to
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`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,
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`Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue
`NW, Washington, DC 20580. The subject line must begin: “In re Amazon.com, Inc.,
`FTC File No. 1923123.”
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`VII. Recordkeeping
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`IT IS FURTHER ORDERED that Respondents must create certain records for 10 years
`after the issuance date of the Order, and retain each such record for 5 years. Specifically, each
`Respondent, in connection with any delivery program or service using Drivers, must create and
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`retain the following records:
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`A. accounting records showing the revenues from all goods or services sold;
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`B. personnel records showing, for each Driver and each person who participates in conduct
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`related to the subject matter of the Order, whether as an employee or otherwise, that
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`person’s: name; addresses; telephone numbers; job title or position; dates of service; and
`(if applicable) the reason for termination;
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`C. records of all consumer complaints related to Drivers’ tips or earnings, whether received
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`directly or indirectly, such as through a third party, and any response;
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`Page 5 of 7
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`D. all records necessary to demonstrate full compliance with each provision of this Order,
`including all submissions to the Commission; and
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`E. a copy of each unique advertisement or other marketing material concerning the subject
`matter of this Order.
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`VIII. Compliance Monitoring
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`IT IS FURTHER ORDERED that, for the purpose of monitoring Respondents’
`compliance with this Order:
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`A. Within 10 days of receipt of a written request from a representative of the Commission,
`each Respondent must: submit additional compliance reports or other requested
`information, which must be sworn under penalty of perjury, and produce records for
`inspection and copying.
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`B. For matters concerning this Order, representatives of the Commission are authorized to
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`communicate directly with each Respondent. Respondents must permit representatives
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`of the Commission to interview anyone affiliated with any Respondent who has agreed to
`such an interview. The interviewee may have counsel present.
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`C. The Commission may use all other lawful means, including posing through its
`representatives as consumers, suppliers, or other individuals or entities, to Respondents or
`any individual or entity affiliated with Respondents, without the necessity of
`identification or prior notice. Nothing in this Order limits the Commission’s lawful use
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`of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49,
`57b-1.
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`IX. Order Effective Dates
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`IT IS FURTHER ORDERED that this Order is final and effective upon the date of its
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`publication on the Commission’s website (ftc.gov) as a final order. This Order will terminate on
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`June 9, 2041, or 20 years from the most recent date that the United States or the Commission
`files a complaint (with or without an accompanying settlement) in federal court alleging any
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`violation of this Order, whichever comes later; provided, however, that the filing of such a
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`complaint will not affect the duration of:
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`A. Any Provision in this Order that terminates in less than 20 years;
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`B. This Order’s application to any Respondent that is not named as a defendant in such
`complaint; and
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`C. This Order if such complaint is filed after the Order has terminated pursuant to this
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`Provision.
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`Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent
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`did not violate any provision of the Order, and the dismissal or ruling is either not appealed or
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`upheld on appeal, then the Order will terminate according to this Provision as though the
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`complaint had never been filed, except that the Order will not terminate between the date such
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`complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date
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`such dismissal or ruling is upheld on appeal.
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`By the Commission.
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`April J. Tabor
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`Secretary
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`SEAL:
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`ISSUED: June 9, 2021
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`Page 7 of 7
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