ONATHAN KESSLER CO Bar No. 15094, …

Case 5:20-cv-00470-JFW-SHK Document 13-1 Filed 03/18/20 Page 1 of 52 Page ID #:78

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JONATHAN L. KESSLER 3 CO Bar No. 15094, JKessler@ 4 Federal Trade Commission

1111 Superior Ave., Suite 200 5 Cleveland, OH 44114 6 216-263-3436 (Kessler)

216-263-3426 (FAX)

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8 JOHN JACOBS (Local Counsel) CA Bar No.134154, JJacobs@

9 Federal Trade Commission 10 10990 Wilshire Blvd, Suite 400

Los Angeles, CA 90024 11 Tel: 310-824-4360 12 Fax: 310-824-4380

MICHAEL A. THURMAN CA Bar No. 123303, michael@thurman- 1055 E. Colorado Blvd., 5th Fl. Pasadena, CA 91106 626-399-6205 (phone) 626-380-4880 (fax)

13 ATTORNEYS FOR PLAINTIFF 14 FEDERAL TRADE COMMISSION

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ATTORNEY FOR SLAC, INC., STUDENT LOAN ASSISTANCE CENTER, LLC, NAVLOAN, INC., AND ADAM OWENS

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

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23 FEDERAL TRADE COMMISSION,

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Plaintiff,

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v.

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SLAC, INC., also dba Student Loan Assistance Center and Aspyre, a

27 California corporation;

Case No. STIPULATED

ORDER FOR PERMANENT INJUNCTION AND MONETARY

JUDGMENT

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Case 5:20-cv-00470-JFW-SHK Document 13-1 Filed 03/18/20 Page 2 of 52 Page ID #:79

1 NAVLOAN, INC., a California corporation;

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STUDENT LOAN ASSISTANCE 3 CENTER, LLC, a California limited

liability company; and

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ADAM OWENS, individually and as 5 an officer, director, principal, or

manager of SLAC, Inc., Navloan, Inc., 6 and Student Loan Assistance Center,

LLC,

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Defendants.

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Plaintiff, the Federal Trade Commission ("Commission" or "FTC"), filed

12 its Complaint for Injunctive and Other Equitable Relief ("Complaint") in this

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matter, pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act

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15 ("FTC Act"), 15 U.S.C. ?? 53(b) and 57b. The Commission and Defendants

16 stipulate to the entry of this Stipulated Order for Permanent Injunction and

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Monetary Judgment ("Order") to resolve all matters in dispute in this action

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19 between them.

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THEREFORE, IT IS ORDERED as follows:

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FINDINGS

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1.

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This Court has jurisdiction over this matter. The Complaint charges that Defendants participated in deceptive acts or

27 practices in violation of Section 5 of the FTC Act, 15 U.S.C. ? 45, and in

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Case 5:20-cv-00470-JFW-SHK Document 13-1 Filed 03/18/20 Page 3 of 52 Page ID #:80

1 deceptive or abusive acts or practices in violation of the Telemarketing Sales

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Rule, 16 C.F.R. Part 310, in the marketing and sale of student loan debt relief

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4 services.

5 3. Defendants neither admit nor deny any of the allegations in the Complaint,

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except as specifically stated in this Order. Only for purposes of this action,

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8 Defendants admit the facts necessary to establish jurisdiction.

9 4. Defendants waive any claim that they may have under the Equal Access to

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Justice Act, 28 U.S.C. ? 2412, concerning the prosecution of this action through

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12 the date of this Order, and agree to bear their own costs and attorney fees.

13 5. Defendants and the Commission waive all rights to appeal or otherwise

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15 challenge or contest the validity of this Order.

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DEFINITIONS

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19 For the purpose of this Order, the following definitions apply:

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"Assisting Others" includes: 1. performing customer service functions, including receiving or

responding to consumer complaints;

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2. formulating or providing, or arranging for the formulation or

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provision of, any advertising or marketing material, including any

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telephone sales script, direct mail solicitation, or the design, text, or

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Case 5:20-cv-00470-JFW-SHK Document 13-1 Filed 03/18/20 Page 4 of 52 Page ID #:81

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use of images of any Internet website, email, or other electronic

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communication;

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3. formulating or providing, or arranging for the formulation or

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provision of, any marketing support material or service, including

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web or Internet Protocol addresses or domain name registration for

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any Internet websites, affiliate marketing services, or media

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placement services;

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4. providing names of, or assisting in the generation of, potential

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customers;

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5. performing marketing, billing, or payment services of any kind; or

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6. acting or serving as an owner, officer, director, manager, or principal

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of any entity.

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B. "Clear(ly) and Conspicuous(ly)" means that a required disclosure is

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19 difficult to miss (i.e., easily noticeable) and easily understandable by ordinary

20 consumers, including in all of the following ways:

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1. In any communication that is solely visual or solely audible, the

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disclosure must be made through the same means through which the

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communication is presented. In any communication made through

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both visual and audible means, such as a television advertisement, the

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disclosure must be presented simultaneously in both the visual and

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Case 5:20-cv-00470-JFW-SHK Document 13-1 Filed 03/18/20 Page 5 of 52 Page ID #:82

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audible portions of the communication even if the representation

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requiring the disclosure is made in only one means.

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2. A visual disclosure, by its size, contrast, location, the length of time it

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appears, and other characteristics, must stand out from any

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accompanying text or other visual elements so that it is easily

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noticed, read, and understood.

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3. An audible disclosure, including by telephone or streaming video,

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must be delivered in a volume, speed, and cadence sufficient for

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ordinary consumers to easily hear and understand it.

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4. In any communication using an interactive electronic medium, such

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as the Internet or software, the disclosure must be unavoidable.

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5. On a product label, the disclosure must be presented on the principal

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display panel.

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6. The disclosure must use diction and syntax understandable to

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ordinary consumers and must appear in each language in which the

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representation that requires the disclosure appears.

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7. The disclosure must comply with these requirements in each medium

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through which it is received, including all electronic devices and

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face-to-face communications.

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