Bean, Timothy R

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF TIMOTHY R. BEAN CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3665. Complaint, June 10, 1996--Decision, June 10, 1996 This consent order prohibits, among other things, a California individual doing business as DMC Publishing Group from misrepresenting, in its advertisements for a work-at-home business, the profits, earnings, income, or sales from such business opportunity and prohibits any future earnings claims unless, at the time of making the representation, the respondent possesses and relies upon competent and reliable evidence that substantiates the claim. Appearances For the Commission: Nicholas J. Franczyk, C. Steven Baker and Charulata Pager.

For the respondent: Pro se.

COMPLAINT The Federal Trade Commission, having reason to believe that Timothy R. Bean, individually and doing business as DMC Publishing Group ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. Respondent Timothy R. Bean is an individual doing business as DMC Publishing Group. His principal office or place of business is located at 26052 Merit Circle, Suite 107, Laguna Hills, California.

PAR. 2. Respondent is engaged in the advertising, promotion, offering for sale, sale, and distribution of a program to operate a publishing and printing business at home to the public. PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act. TIMOTHY R. BEAN 773 772 Complaint PAR. 4. Respondent has disseminated or has caused to be disseminated advertisements, including advertisements through the Internet, for his program to operate a publishing and printing business at home. These advertisements include, but are not necessarily limited to, the attached Exhibits 1 and 2, which state, in part: A. "Profit From Publishing and Print Brokerage At Home! Earn up to $4,000 or More Each Month!" (Exhibit 1.) B. "Earn $500 -$5000 or More Each Month” (Exhibit 1.) ° C. "[The] ‘Quick Phone Directory’ ... publication alone can earn you $4,000 or more in the first 30 days." (Exhibit 2.) D. "Our HOME WORKERS FIRST YEAR INCOME averages $38,000 with 40- 50% annual growth. Most are EARNING WELL OVER $75,000 by their third year.” (Exhibit 2.) PAR. 5. Through the use of the statements contained in the advertisements referred to in paragraph four, including, but not necessarily limited to the advertisements attached as Exhibits 1 and 2, respondent has represented, directly or by implication, that the amount of the money represented by these statements is representative, or typical, of what individuals who purchase respondent's program will generally achieve. PAR. 6. In truth and in fact, the amount of money represented by these statements is not representative, or typical, of what individuals who purchase respondent's program will generally achieve. Therefore, the representation set forth in paragraph five was, and is, false and misleading.

PAR. 7. Through the use of the statements contained in the advertisements referred to in paragraph four, including but not necessarily limited to the advertisements attached as Exhibits 1 and 2, respondent has represented, directly or by implication, that at the time he made the representation set forth in paragraph five, respondent possessed and relied upon a reasonable basis that substantiated such representation.

PAR. 8. In truth and in fact, at the time he made the representation set forth in paragraph five, respondent did not possess and rely upon a reasonable basis that substantiated such representation. Therefore, the representation set forth in paragraph seven was, and is, false and misleading. Complaint 121 F.T.C.

PAR. 9. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

TIMOTHY R. BEAN 775 772 Complaint EXHIBIT 1 Profit From Publishing and Print Brokerage At Hom Earn up to $4,000 or More Each Month! No Experience Necessary To Start! An edclusive guide to making an excellent mcome at home Hands on, tried and true methods tor success. . f IRE YO UR Vunuabie itenmaten not found ans where else, ’ BOSS ! | - y. y wee.

Big companies are continuing to downstee and eae awe he trend toward more home based business is: 7 This is the best time to stam seur own ‘ ~~ PUBLISHING & ven ereater Don't rely on others to provide for sour future tee i PRINT BROKERAGE Fire your boss before he fires sou This book will show sou how to @ Make Money Quickly With NO Investment @Eam $500 - $3000 or More Each Month ~ Expand For Unlimited Growth @ Obtain FREE Business Startup Material @ Discover the Freedom of Being Your Own Boss No Investment or Experience is Required. You ian build a publishing empire from vour own home. EXHIBIT | Aeatter &\ Ter: Bean a suceesstul publisher cs ans et che his hook gives ou the ins and outs Complaint 121 F.T.C.

EXHIBIT 1 @Acquire Your Customers @Keep Them Coming Back »Getting Paid Easily @The Best Customer Service @ Advertise For Success @ Reach Speciatized Mark=ts 2 Follow Up Tips @ Easy Record Keeping eviess and sian canoe ovceffent income ini: wi publishing Business, ali from ine caniert + think You won't have te run down dit since eld ra: os ere tas You saa really, FIRE YOUR Boss! fim shares with Sou the PESt way fe Guig nd set gp eae You dont want to miss out on this chance te fave your. Only $9.95 ORDER NUM Seng cour neck or niones order to Mfrsston Vigia C y vin) “IR:

Jor Sour cansenience Phone Orders 1-714-454-1282 - Please have credit card available Fay Orders 1-714-454-0869 - Include shipping sudress und credit card number California Residents Add 5% Sales Tax is Return ty Home Page

Decision and Order 121 F.T.C.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Chicago Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in. such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and no comments having been filed thereafter by interested parties pursuant to Section 2.34 of its Rules, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order: 1, Respondent Timothy R. Bean is an individual doing business as DMC Publishing Group with his principal office or place of business at 26052 Merit Circle, Suite 107, Laguna Hills, California. 2. The acts and practices of the respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

TIMOTHY R. BEAN 781 772 Decision and Order ORDER It is ordered, That respondent Timothy R. Bean, his 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 the business opportunity "Profit from Publishing and Print Brokerage at Home," or any other business opportunity, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, in any manner, the past, present, or future profits, earnings, income, or sales from such business opportunity.

I.

It is further ordered, That respondent Timothy R. Bean, his 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 the business opportunity "Profit from Publishing and Print Brokerage at Home," or any other business opportunity, in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, in any manner, the past, present, or future profits, earnings, income, or sales from such business opportunity, unless at the time of making such representation respondent possesses and relies upon competent and reliable evidence that substantiates the representation. Ii.

It is further ordered, That for five (5) years after the last date of dissemination of any representation covered by this order, respondent, or his successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All materials that were relied upon in disseminating such representation; and Decision and Order 121 F.T.C.

B. All tests, reports, studies, surveys, demonstrations, or other evidence in his possession or control that contradict, qualify, or call into question such representation, or the basis relied upon for such representation, including complaints from consumers. IV.

It is further ordered, That respondent shall: A. Within thirty (30) days from the effective date of this order deliver a copy of this order to each of his officers, agents, representatives, and employees who are engaged in the preparation or placement of advertisements, promotional materials or other such sales materials covered by this order.

B. For a period of ten (10) years from the effective date of this order deliver a copy of this order to each of his future officers, agents, representatives, and employees who are engaged in the preparation or placement of advertisements, promotional materials or other such sales materials covered by this order, within three (3) days after the person assumes such position.

V.

It is further ordered, That from the date this order becomes final, respondent shall notify the Commission within thirty (30) days of the discontinuance of his present business or employment and of each affiliation with a new business or employment. Each notice of affiliation with any new business or employment shall include his new business address and telephone number, current home address, and a statement describing the nature of the business or employment and the duties and responsibilities.

Vi.

It is further ordered, That within sixty (60) days after service of this order, and at such other times as the Commission may require, respondent shall file with the Commission a report, in writing, setting forth in detail the manner and form in which he has complied with this order.

TIMOTHY R. BEAN 783 772 Decision and Order Vil.

This order will terminate on June 10, 2016, 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.

Complaint 121 F.T.C.