HomeMy WebLinkAbout95-02844
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COMMONWEALTII OF PENNSYLVANIA
ACTING IIY ArroRNEY GENERAl.
ERNEST D, PREATE. jR,.
IN TIlE COURT OF COMMON PLEAS
OF CUMBERI.AND COUNTY,
PENNSYLVANIA
Plallllltl
v.
CONSUMER PRODUCTS. INC..
CIVIL ACTION. EQUITY
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Rcs(lllndcllI
ASSURANCE 010' VOLUNTARY COMI'L1ANCE
COUNSEL FOR PLAINTIFF
STEPIIEN M. HLADIK
DEPUTY A'ITORNEY GENERAL
A'ITORNEY I.D. NO. 66281
OFFICE OF A'ITORNEY GENERAL
BUREAU OF CONSIJMER PROTECTION
HARRISIlIJIUlIWGlONAL OFFICE
132 KLINE VILLAGE
IIARRISBUR<l, PA 17104
TEI.EPHONE: 117-7111.1109
COMMONWEALTII OF PENNSYLVANIA
ACTING BY An-ORNEY GENERAL
ERNEST D, PREATE. JR..
IN TilE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY.
PENNSYLVANIA
Plalntitl
v,
Rcspondcnl
CIVIL ACTION - EQUITY
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CONSUMER I'RODUCTS. INC"
ASSURANCE 01' VOLUNTARY COMI'UANCl-:
.
WIIEREAS, the Commonwealth uf Pennsylvania, acting hy AlIorney General Ernest D.
,
Preate, Jr,. through the Ilureau uf Consumer Protection ("Cummunwealth"), has caused an
invesllgatlunlll he made Into the huslness practices uf the ahove named Respundent pursuant tu
the provisions of the Act of Dccember 17, 1968. P.L 1224, No. 387, as amended by the Act
of November 24, 1976, P.L 1166, Nu. 260, 73 P.S. ~~ 201-1-201-9.2, the Unfair Trade
Practices and Consumer I'rotecllnn Lo1W ("Cunsumer Protection Lo1W"); o1nd
WIIEREAS, Consumer Products. Inc. (herclnafter referred tu o1S thc "Respundent") is
01 Pcnnsylvo1nia corpuro1tiun und has engaged in trude or cummerce within the Comll1onweo1lth
of Pennsylvo1nla in sales of I{uinbuw SE vacuum c1euncrs fro III a principal place of business
locuted ut3510Trindle l((liId. ('lIltIpllill, PA 17011; IInd
WIIEREAS. Peter M. Ollnlltsls Is the Presidentuf the I{espundent nnd Is authuriled tu
enter intu this Assurllnce of Vuluntary CUll1plillnCe un hehalf of the J{espundent; IInd
WIIEJH:AS. thl~ l{espul1llent, through suhdistrihutors IInd their sules persuns, cunducts
in-hume presentutions or dell1unstrations for the purpuse uf selling the I{uinbuw SE; nnd
WIIEIH:^S, Ihe suks perSOIlS, liS u pUll III Ihe sules dl'lIInllSlmlinll, cnllulll' ill Ihc
prllelke nf recrultillll nr snlirilillll 1Il11111'S nf pnlellliulwlISUIIII'1'S ill rl'llIr11 hlr II frec ill:1II nr
IIllllehmelll for Ihe vlIruum: IIl1d
WIII:I~E^S, Ihese nlkrs lIIe illwrpumlell illln PIlIlI~S ill a suks prl'Sl'llIl1linn hnnk used
hy sales persolls durlllgllll' demnllslraliulI (rnllks nt whirh Itllgc lire rnllerlivrly IIlla.hed herein
as bhihil "^" and illwrporlllrd herrill hy rrlerellt'e):
WIIEIW^S, Ihe ('nlllmnlll\'eallh hdieses sut'h t'nmlut'1 t'nllslilull'S U vinlulinll nl Ihc
Cnllsumcr I'rulct'linIlLlIw, 73 I'.S. ~ 201.2(4)(sii), as IIlefrrral sulc: IIl1d
WIIElW^S, huscd un ils illvcsligaliulI, lhc ('OIllmnnl\'ellllh hclicvcs Ihallhc l{espulldclll'S
l'ulllluel vlululCS ~ 20l.) nflhe ('ullsumer I'IllICrliunIJIW, as defincd hy, 20l.2(4)(sii), inlhal
IlcspundcllI and lhc sules pcuple pUrliriplllcd in and pmmulcd Ihis rclcrral sYlllem: and
WIIEI{E^S, Ihc I{cspundenl helieves IhuI nnnc ul ils a.linlls vinlalc . 20I,2(4)(sii) uf
lhc Cunsumcr I'mlct'liulI Law: and
WIIEllE^S, ulldcr Ihc ('ullsumer I'mll't'linn Law, Ihis ^ssurant'c nf Vululllary
Cumlllianl'c shall nul hc t'unsidcrcd IIl1l1dmissinn nl a viulllllun hlr any Ilurpuse: and
WIIElW^S, Ihc ('ummunwcallh 1I1Tl'pls Ihis ^Slurant'e nl Vulunlary ('lImplillllrc
pursualll III . 20l.5 nf Ihc ('lIl1sulller I'rulerliun 1..11\', in Iku ul wmlnenl'illl! slalulury
pml'ecdings under. 20l,4,
NOW TIIEIH:I'OIH:, rffrrlivr IIulII Ihe dale nl Ihl' sillnin!! nl Ihis ^mlranre nl
Vnlunlary ('nlllltlillnrc, IIIl' Ilcsptllllklll ajlll'l's tnI' ilsdl, ils SIIl'll'S""S, assillns, agl'ms,
elllpluYl'I'S, IInd /III nlhn Ill'rsnns IIrlilljl 011 ils hdllllf Ihmlll!h lhis III /IllY OIher l'llrpnrlllc or
husincss devke liS fnllows:
2
VI. Any and 1111 payments due I1l1llowing under this Assurnnce shall he mllde ullon
Ihe signing of this Assurnnce: payment shall he mllde hy certified check or money order pllyable
to Ihe Commonwellhh of Pennsylvania aud liJrwarded to the Bureau of Consumer Prolecllon,
132 Kline Village, Harrlshurg, PA 17104,
NOW TIIEREFORE, without Ihe admission of any vlolallon lilr any purpose, the
Respondel1l agrees hy the signing of this Assurance of Volul1lary Compliance Ihal they shall
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hencetilrlh abide by each of the atilremeluloned provisions and Ihat Ihe breach of anyone of
these terms of Ihls Assufilllce of Voluntary Compliance shall be sufficienl warrant for the
Commonwealth of Pennsylvania to petition the Court of Common Pleas of Cumherland County
to IIssess civil penalties under ~ 20 1-8(a) of the Consumer Proteclion 1.1w and to order any olher
equitable relicI' which the Court deems necessary or proper. The Court shllll maintain
Jurisdiction over Ihe subject mailer of this Assurance of Volul1lary Compliance IInd over the
parties hereto In accordance with ~ 201-8 of the Consumer Protection Law.
This Assufllnce of Volulllary Compliance shllll hllve Ihe same tilrce and effect as a
Permanenl Injunction issued pursual1lto ~ 201-4 of the Consumer Protection Law.
Provided, however, that nothing in this Assurance of Voluntary Compliance shall be
construed to waive or limit any right of action by any consumer, or by any local, state, federal
or other govefllmenll1l el1lity ugllinsllhe Respondent.
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IF 'IOU CAN NEt' M~ I CAN
SAVE 'IOU MONEY
Your price TODAY is:
_.- --_.-
lAVIN' 'IOU:
[]]
[!}
[!}
However, you must help me...
I need names of
friends or associates,
I need your vacuum cleaner as a trade-in,
I need an order from you today,
_-~Y\'" You can earn an
AOUAMATE@
It's e~...
let me show you bow.
(f) Identify 4 friends I can show
the Rainbow to within 14 days.
@ Help me In setting up the
. appointments by calling each one,
(J) If one drops out, find me another,
@ No one must purchase the
Rainbow... they only need to
see the presentation.
(!) When all 4 presentations
tlave been compieted,
I will bring you an
Aquamate at absolutely
no Charge or future
obligation.
.',
/ ~p'eClal Introauctory onere
~ I need to SllOW the Rainbow to a friend
of yours witllln 24 hours. If you will
help me set that appointment now...
and give me the names of 7 other
friends, I will give you credit for
2 demonstrations
toward the
Aquamate and ~,i-:~':'"~'; .,
give you the t"'~ ..
RalnbowMate ,t\.
right now.
.AND...
1.'-'-"
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(?J If you could assist me In setting up just 2 more
demonstrations within 14 days,
you will also get tile
AquaMate.
.
, B ~ SYSTEM-IS NOW COMPLETE.
...
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1f'1281998\
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COMMONWEALTII OF PENNSYLVANIA
IIY ATroRNEY llENERAL
E1lNEST IJ, PREATI', JR..
IN TilE COURT OF COMMON PLEAS OF
CUMIIERLANIJ ('OUNTY. PENNSYLVANIA
Plaintiff
CIVIL ACTION. I'OUITY
v,
NO, lJ~,lH44
CONSIIMER I'ROI>l!(TS. INC..
Resp"ndent
UJWI::K
ANI> NOW this 2Q~y of oct~~.J. IlJlJK, uJ10ulhe I'IHulitT's showlug of good cause
in Ihc lIhovc IllclllilllWd mallcr, Ihc Assurancc of Volnnlllry l'omplianl'c willnol he dismisscd,
fdl
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COMMONWEALTII OF PENNSYLVANIA
IlY A1TORNEY GENERAL
ERNEST D. PREATE. JR..
IN TilE COllRT OF COMMON PLEAS OF
ClIMIlERLAND COUNTY, PENNSYLVANIA
Plaintiff
CIVIL ACTION - EQUITY
v,
NO, 95.21144
CONSUMER PRODUCTS, INC..
RcsJ10ndcnl
ORnER
AND NOW lhis
day of
. 199M. upon consideration of the Plaintiff's
Petition to show good cause why Assurance of Voluntary ('OIl1pliance should not be Dismissed
in the above llIelllioned llIlIller. II Rule is hereby issued upol1lhe I>efendantto show cuuse, if
any he has, why IIn Order grallling the Commonweullh's Pelition should not issue.
Rule relurnuble
days ufter service.
,J.
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COMMONWEALTII OF PENNSYLVANIA
IIY A'ITO"NEY liENE"AL
E"NEST I), P"EATE, JIl"
IN Till, (,(lIl"T 01, COMMON PU,AS OF
('\ 1M I\I:"I.A Nil ('O\INTY. PI,NNSYLVANIA
Plilinlill
CIVIL ACTION, 1'I)\lITY
v,
NO, 1)',l114'!
CONSUME" P"ODlICTS, INt'..
"cspllmknl
l'ETlTION TO SIIOW (;000 l.:A~JL\\'Jn'_..ASSUKANlJ::...Of.YWJlNIA1l\'_
CO!\U'UANCE SIIUULU NUl' DE mS!\IISSEU
AND NOW, cUl11es Ihe I'lainliff, Ihe ('ul11l11unwl'ahh uf Pennsylvania, hy Allurlley
Gcncral D. Michacl Fisher, through Ihe Ilureilllllf ('lInsUl11erl'rulccliun ("('llI11l11l1nwcalth').
and IlIcs this Petition 10 show guud cause why AssuflInce uf VuluullIry ('ul11pliance shuuld nul
he dismissed. In sUllporlthereuf, Ihe ('ul11l11onwealth IIl1eges thc lulluwing:
I. The I'llIinliff is Ihe ('Ul11l11llll\H'illth uf I'l'llIIsylvania. lIL'ling hy Allmm'y (ien\'lal
D, Michael Fisher.
2. The Rcspundent is a I'cnnsyll'ilnill l'IlIporaliunaml has L'ngagcLI inlllldc or
cmllmercc within the ('ol11l11unwealth uf I'L'nnsylvllnia in MIleS ul Ilainhu\\' SL I'llL'uuml'kllllLn
from a prindpalphlL'e uf husincss lucatL'd al J~ 10 TrimllL' Illllll!. ('lllnplt ill. I' A 170 II.
3. I'elcr 1\1. (ihnalsis is Ihc I'rnidL'llIUllhL' IIl'Spllmknl ami is aUlhmimltll L'nIL'I
illluthis Assufllnce uf Vuluntmy ('ul11phanL'L' un hehallIII Ihc IlnpundL'nl.
4, On Muy I H, 11)1)5, the I{espondenl entered inloun Assurunce of Volunlury
('ompliunce wilh Ihe ('onllnonW\'Ullh for ulleged violulions of Ihe IInfuir Trude Pruclices und
Consumer Pruleelionl.llw, 73 P.S, ~~ 201-1-201-1),3,
5. An Assurance of Volunl<lry l'llmpliunce is a selllement agreement which is filed
wilh the CIlUrl, 73 P.s.~201-5.
tJ, The Assurance is filed so thut v lollll ions of its lerms muy he enforced pursuant
10 73 ~201-H,
7, ACl'llrding to 73 ~201-H(a):
Any person who violales Ihe lerms of un injunelion issued under section 4 of
this ael {~ 201-41 or any of the terllls of anaSSUrHnce of \'Illuntary colllpliance
duly filed in CIlUrl under section 5 of this uell~201-51 shall lilr fe it and pay to
Ihe Comlllonweallh a civil penally of nOI more than five Ihousand dollars
($5()()(ll for each violalion. For Ihe purposes of Ihis secliunlhe courl issuil\lllhe
WuncliUII~jll.wltich an assurance of vuluntary cOIUlillaul'e is filed shall rel.aln
jutl.sdk1iun, and iht:.l'ause shall he conlinued; and, in such cases, the Allorney
Gcneral, or the appropriale Dislricl Allorney, aCling inlhc nallle of Ihe
('ollllllonweallh of Pennsylvania, Illay Ilelitiun for recovery of civil pcnalllcs
nnd any other equitahle relief deellled needed or proper. lEmphnsis Addedl
WII EIWFOnE, Plaintiff respcctfully prnys Ihal Ihis IIllnoruhle ('ourt issuc an
order din-Cling Ihut Ihis Assurancc of Voluntury Compliance willnol hc dismissed.
-2.
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