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UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
Case No. 04C 6901
Judge Wiliam J. HibbJe
INTERNA TIONAL RESEARCH AND DEVELOPMENT CORPORATION OF
NEVADA.
Magistrate Judge Nan R. Nolan
el aI.,
Defendants.
STIPULATED ORDER FOR PERMENT INJUNCTION FINAL JUDGMENT AS TO DEFENDANTS INTERNATIONAL RESEARCH AND DEVELOPMENT CORPORA TJON OF NEV ADA AND ANTHONY RENDA
WHEREAS Plaintiff Federal Trade Commission ("Commission " or "FTC") fied a
Complaint for Injunctive and Other Equitable Relief (the " Complaint ) on October 27. 200
against Defendants International Research and Developmem Corporation of Nevada and
Anthony Renda , pursuant to Sections 5(a) and) 3(b) of the Federal Trade Commission Act
("FTC Act ). ) 5 U.
c. H 45(a)
and 53(b):
WHEREAS the FfC and Defendants International Research and Development
Corporation of Nevada and Anthony Renda have consented to the entry of this Stipulated Order
for Pennanent Jnjunctjon and Final Judgment (" Order ) without a trial or adjudication of any
issue of Jaw or fact herein;
NOW . THEREFORE. the Commission and Defendants. having requested the Court
emer thj.; Slipu13ted Order. and the Coun having considered the Slipulat'edOrder reached among
1".",
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the parties and for other cause appearing, it is ORDERED , ADJUDGED, AND DECREED as foBows:
FINDINGS
This Court has jurisdiction over the subject matter and the parties pursuant to 28
C.
1331 and 1337(a). and 15 U.
c.
53(b).
The Complaint states a cJaim upon which relief may be granted against
Defend;uns under Sections 5 and 13(b) of the Federal Trade Commission Act
FTC
Act ). 15
C.
45 and 53(b).
Defendants have entered into this Order freely and without coercion. Defendants
further acknowledge that they have read the provisions of this Order and are able to abide by
them.
This Order resolves aH claims that arose prior to the date of entr of this Order
against Defendants with respect to any a1Jegations that Defendants have violated the Federa)
Trade Commission Act and the regulations promulgated thereunder.
The panies waive an rights 10 seek appeIJate review or otherwise challenge or
contest the validity of this Order. Defendants funher waive and release any claims they may
have against the Commission, its employees, representatives, or agents.
Defendants agree that this Order does not emitJe them 10 seek or to obtain
attorneys ' fees as a prevailing party under the Equa) Access to Justice Act , 28 U.
c.
24J 2, as
amended by Pub. L. 104- 12),
110 Stat. 847. 863- 64
(J 996), and Defendants funher waive any
right to anorneys ' fees that may arise under said provision oflaw.
This Order is remedial in n:nure and shaH not be construed as the payment of a
fine , penalty, punitjve assessment. or forfeitUre.
;--
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Defendants ' stipulation is for settlement purposes only. does not constitute an
admission of facts, other than jurisdictional facts. or violations of law 3S
a))eged in the
Complaint
and. in fact, Defendants deny same; and may not be used al1ainst Defendants in any othr
proceeding. except in such proceedings as may be necessary to enforce provisions of this Order,
incJuding, bm not Emited to. a bankptcy proceeding; and
Entry of this Order is in the public interest.
DEFINITIONS
Ad,'ertising " means any wriuen or verbal statement, iJustration or depiction
that is designed to effect a sale or create imerest in the purchasing of goods or services. whether
it appears in a brochure, newspaper. magazine , pamphJet , leaflet, circuJar, maHer, book insert.
free standing insen , letter, catalogue, poster. chan, bilboard , public transit card. point of
purchase display, packaging, package imen, 1abeL
fim,
slide, radio. television or cable
te1evision , audio program transmined over a telephone system , program- length commercial
infomerciar'), Jntemet , or in any other medium.
Asset" or " Assets"
means any
1egal or equitable interest in . right to, or cJaim to.
any real and/or personal propeny, including. but not limited to , chanels, goods, instrments.
equipment, fixlures, general intangibles. leaseholds. mail or Other deliveries, inventory. checks.
nOtes, accounts, credits, contracts, receivables. funds, monies. shares of stock. and an cash.
wherever loc31ed. and shan include both existing assets and assets acquired after the date of emry
of this Order.
Assisting others ' means providing any of the following goods or servK:es to any
per on or emi1Y: (3) performing CUSlOmer service func1ions induding. hut not limited 10.
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outbound or inbound telemarketing, upseJ)jng, cross.sellng, handling consumer comp1aints
(other than retUrns). credit card or debilaCCOUnl processing, Web design and marketing, or
designing or preparing or assisting in the preparation of product labeling or packaging; (b) formulating or providing, or arranging for the formulation or provision of, any sales script or any
other advertising or marketing materia) for any person or entity (c) providing or aITanging for the
provision of, names of potential customers or (d) performing advertising or marketing services
or consulting services of any kind.
Competent and reHable sdentH'c evidence " means tests, analyses. research,
studies, or other evidence based on the expertise of professionals in the relevant area, that have
been conducted and evaluated in an objective manner by persons quaJjfied to do so, using
procedures genera))y accepted in the profession to yield accurate and reliable results.
Co\'ered Product" for purposes of Section IX of this Order, the term " covered
product " means any fuel savings or emissions reducing product, and any MAX product,
including but not limited to HeatMAX, AromaMAX, FishMAX, BaneryMAX. SoapMAX
PowerMAX, and any substantially similar product.
Customer " means any person who has paid . or may be required to pay, for
goods or services offered for sale or sold by Defendants.
Defendant" or " Defendants. " for purposes of this Order. means Defendants
International Research and Development Corpor31ion of Nevada , also d/b/a Jnternational
Research & Development and/or JRD. and Anthony Renda , individuaJJy and as an officer and
director of the corpoTale
defendant. ::md each
of them, by whatever names each may be known.
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Document" is synonymous in me:ming and equal in scope to the ,enn, as
defined in Federal Rule of CivU Procedure 34(a), and includes writings, drawings, graphs, chans,
photographs, audio and video recordings, computer records, and other data compiJations
fro
meaning
whkh information can be obtained and trans1ated. if necessary, through detection device into
reasonably usable form. A draft or non- identical copy is a separate document within th
of this term.
Material" means
likely to affect a person s choice of. or conduct regardiDB.
goos or services.
10.
Person " means a natural person , an organization or other 1egal entity, incJuding
a corporation , partnership, sole proprietorship, Jimited JiabHity company. association,
cooperative , or any other group or combination acting as an entity.
) J.
Plaintiff'
means the Federal Trade Commission C' Commission " or
FrC'
BAN ON SALE OF FUEL SA VING AND EMISSIONS DECREASING PRODUCTS
IT IS THEREFORE ORDERED thai Defendants are permanently restrained and
enjoined from the manufacturing, advertising, promotion , offering for sale, sale. or distribution of
FuelMAX and Super FueIMAX, or any substantially similar purported fuel saving or emissions
decreasing product employing magnets, whether dire t1y or through any entity. corpration,
subsidiary, division. or other device.
,"
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PROHIBITED BUSINESS ACTIVITIES
IT IS FURTHER ORDERED that Defendants. and their offcers. directors. agents,
servants, employees, salespersons, independent conlractOrs. corporations, subsidiaries. afJiates,
successors, and assigns. and a11 other persons in active concert or paricipation with them who
receive actual notice of this Order by personal service or otherwise, whether acting directly or
through any trust . corporation, subsidiary, division. or other device, are hereby permanently
restrained and enjoined from: Misrepresenting that a product causes a substantial increase in gas mileage;
Misrepresenting that a product causes a substantial reduction in emissions;
Misrepresenting the contents, validity, results, conclusions, or
interpretations of any test or study;
Making any material representation, directly or by impHc3tion.
about the
performance or efficacy of any produCt. induding, but not limited to , HeatMAX, AromaMAX.
FishMAX. BaneryMAX, SoapMAX or PowerMAX. unless . at the time of making such
representation, Defendants possess and rely upon competent and reliable evidence, which when
appropriate must be competent and reliable scientific evidence , that substantiates the
representation;
Making any material misrepresentation. directly or by implication. about the
performance or efficacy of any produCt, including. bm not limited to, HeatMAX, AromaMAX.
FishMAX. BaneryMAX. SoapMAX or PowerMAX: and
Assisting others or providing to ::my person or entity the means and
inS1rUmfl1tahlies
violate any provision of this SeCiion. For purposes of thi- Section
means
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and instrumenta)jtjes " shan mean any information. including but not necessarily limited to any
advertising, labeling. or promotional materials , for use by customers in their marketing or sale of
any product covered by this Section.
Provided, however.
that nothing in this Section or in any other Section of this Order shall
in Section
void the ban provision set fort
J of this Order.
Ill.
MONETARY JUDGMENT AND CONSUMER REDRESS
IT IS FURTHER ORDERED that
Judgment is hereby entered in favor of Plaintiff, and against Defendants, jointly
and severally. in the amount of four miJion two hundred thousand doJ)ars ($4 200,000. 00 USD);
provided, however that this amount shaH
be subjeC1lo the conditions set
forth in Paragraph B of
this Part and subject to the Right to Reopen provision contained at Section JV.
The money shall be paid as follows:
Upon the signing of this Order. Defendams shaH deposit the sum of four
hundred thousand dol1ani ($400. 000.00 USD) imo an escrow account to be
established and held by an escrow agent approved by FTC counsel;
Within seven (7) days afler emry of this Order, the Defendants shan instrct
the escrow agent to pay to the FTC. or such agent as the FTC may direct
the sum of $400.00 within three business days of such instruction; and
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\Vithin three hundred sixty five (365) days from the date of entry of this
Order. Defendants shaH pay to the FTC the remaining balance of thre
milljon eight hundred thousand dolJars ($3, 800, 000. 00 USD).
All payments !\hal1 be made by cenjfed check or other guaranteed funds payabJe to and
delivered to the Commission, or by wire transfer in accord with directions provided by the
Commission.
As security for the payment required by Section II. 3, Defendants JRD
Anthony Renda , individua))y and on behalf of their respectJve successors, heirs. and assjgns,
hereby grant to the FTC a Jien on and security interest in the real property. together with dweJJng
houses, other structures, improvements, appurtenances. hereditaments, and other rights
appertaining or belonging thereto , described in a list agreed upon by the panies , in the amount of
$3, 800, 000. 00; Defendants IRD and Anthony Renda represent and acknowledge that the FTC is
relying on the material representations that Anthony Renda is the sale owner of the property; that title to the Propeny is market3ble; and that the Property is not encumbered by any Hen, mortgage,
deed of trust . security jmerest , or other interest except for the mongages or liens described therein.
Defendants agree that. as of the date on whjch they sign this Order. they shaH refrain from transferring. convenjng. encumbering, se1Jng. or assigning, or otherwise disposing of the
propeny. except with the express prior wdnen permission of counsel for the FTC. Defendants
shaH release and waive in favor of the FTC any SI3IUIOry. common law , or OIher exemption that
may apply to the Propeny.
Defendants shalJ cooperate fully with the FTC and be responsible for preparing.
eHcutjng. and recordmg the necessary documeJ1s :md doing whatever eJse the FTC reasonab)
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deems necessary or desireable to perfect, evidence. and effectuate its Hens, security interests,
pledges, and assignments granted herein.
No later than five (5) days after the dale on whkb the
FfC authorizes staff to sign this Order, Defendants shaH prepare, execute, and deliver (at their
ex pense) to the FTC monga es or deeds of trust . security agreements, assignmnt agreements,
UCC- 1 Financing Statements , pledge agreements, .md other documents in form and substance
satisfactOry to the FTC (the " Security Documents ) and take such other steps as the FTC may
reasonabJy require 10 perfect . evidence. and effectua1e its Hens, securty interests, pledges, and
assignments, and to carr
out
the purposes of this Order. The FTC shan refrain from recording
the Security Documents until after the Court s entry of this Orde. In the event that the Court does
not enter this Order, whhin five (5) days after receipt of the Court s denial of this Order, the FTC
shal1 return the
Security Documents to Defendants. Defendants shaH
be responsible for paying
fees and costs (including anorneys ' fees and filng fees) required in connection with the Hens,
security interests. pJedges , and assignments gramed herein. including all fees and costs reJated to
the preparation . execmion. delivery, fiing.
conlinu:Hion, and tennination of such
liens, secrity
interests , pledges, and assignments, and to carr
out
the purpses of this Order.
If Defendants funy comply with those provisi-ons set fOM in this Section m. the
monetary judgmem established by this Order shall be deemed fuBy satisfied and the liens, security
interests , pledges , and assignments granted to the FTC by Defendants shaH be released;
hm.vever.
Provided
the
that. in the event that Defendants do n01 fulfill. or only partially fulfil,
conditions set
fonh in this Section )). the FTC shal1 be entitled 10 exercise immedi3lely any and all rights and
remedies. including. but not limited to. enforcing Ihe liens. security interests. pJedges , and
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assignments and terminating the interests of Defendants. individuaJly and on behalf of their
respective , successors, heirs, affiiates, and assigns in the Property.
AJJ funds paid by Defendants pursuant to this Order shan be deposited into a fund
administered by the Commission or its agent to be used for equitable relief, including. but not
limited to, consumer redress and any attendant expenses for the administration of any redress
fund. Defendants shall cooperate ful1y to assist the Commission in identifying consumers who
may be entitled to redress pursuant 10 this Order. In the event that direct redress is wholly or
paniaJIy impracticable or funds remain after redress is completed , the Commission may apply any
remaining funds for such other equitable rel1ef (induding consumer information remedies) as jt
determines to be reasonJbly related to Defendants ' praCtices aJJeged in the Complaint. Any funds
not used for such equitable relief shaH be deposited 10 the United States Treasury as
disgorgemen1. Defendants shaH have no right to chaJJenge the Commission s choke of remedies
under this Paragraph. Defendants shaH have no right to con1est1he manner of dis1ribution chosen
by the Commission.
Within twenty (20) calendar days after the date of entry of this Order , Defendants
shaH provide the Commission "lith the fuB names, addresses , and telephone numbers of aJJ
purchasers of FuelMAX or Super FuelMAX who purchased FuelMAX or Super FuelMAX prior
to November 10 2004 , and received such Fuel MAX or Super FuelMAX from Defendants or any
of Defendants ' custOmers. 10 the extent that such purchaser is known to the Defendan1s through a
diligent search of theh records, incJuding. but not Jirnjted to. computer files, sales records. and
inven10ry lists. and, for each such purchaser. the quantilY ::md
the
amount paid. induding shipping
provide 1his
and handling charges :md 1axes. The Defendants shaH l:1ke a1) reasonabJe step.; to
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data in a fonn thai is the most recent and accurate available to the Defendants, and in an electronic
format usable and compatible wit1j the Commission s information system (to be determined afer
consultation with the Commission
An money paid pur-uant to this Order is irrevocably paid to the Commission for
purposes of settlement between the Commission and Defendants, and Defendants relinquish an
right . title, and imerestto assets held by the Commission, in connection with this case.
If. upon mOtion by the Commjssion after wrinen notice and a five (5) business day
opportunity to cure, the Court finds that Defendants failed to fulfiJJ, or onJy panial1y fulfiUed the
payment obJigatio:Js set forth in Section m, Defendants shan be immediately liable for a
judgment in the amount of four miJion two hundred.
States cUlTency. plus interes1 from the date
thousand dollars ($4
200, 00.00), in United
C.
of default computed pursuant to 28 D.
1961(8).
as amended. Jess any payments already made.
Defendants agree 1hat, if they fail to timely and completely fulfill the payment and
other obJigations set fonh in this Order. the facts as aJJeged in the Complaint filed in this matter
shaH be taken as true in any subsequent litigation filed by the Commission to enforce its rights
pursuant to this Section. including, but not limited 10. a nondischargeabBity complaint in any
bankptcy case.
Defendants are hereby required . in accordance with 3) U.
c.
770). to furnish to
the Commission Defendants ' taxpayer identification numbers (social security number or employer
idemification number). which shalJ be used for purposes of collecting and reporting on any
delinquent amount arising om of Defendants ' relationship \\lith the government.
J )
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IV.
RIGHT TO REOPEN
IT IS FURTHER ORDERED that, within five (5) bu- iness days after the date of entry of
this Order, Defendants shaH submit to the Commission a truthful sworn statement that shan
reaffirm and attest to the truthfulness, accuracy. and completeDess of the Financial Statement
mdividual Defendant executed by Defendant Anthony Renda on November 30, 200,
financial Statement of Corpora1e
and
Defendant concerning Defendant IRD executed by Anthony
Renda on November 30 2004. The Commission s agreement to thjs Order is expressly premised
upon the financial condition of Defendants, as represented in the above referenced finandal
statements, which contain material information upon whkh 1he Commission relied in negotiating
and agreeing upon this Order.
If, upon notice and motion of the Commission , the Coun finds that a Defendant failed to
disclose any material asset. or materiaHy misrepresented the value of any asset , or made any othr
material misrepresentation in or omission from the financial statements. the Court shan enter a judgment against the Defendants, in favor of the Commission. in the amount of fif1een miJion
four hundred eighty three thousand six hundred fifty three doBars and fifty eight cents
($15.483 653. 58 USD) and 1he entire amount of the judgment shaH
become immediately due and
payable by such Defendants. Jess any amount already paid. and interest computed at the rate
prescribed under 28 U.
balance; c.
) 961. as amended , shall immediately begin to accrue on the unpaid
provided, however.
that in an other respects. this judgment shall remain in fuB force and
effect. unless otherwise ordered by the Court;
providedfurlher that proceedin s to reopen
institUted under this Section are in addition to, and nOt in lieu of. any Other civil or crjminal
remedies as Jlay be provided by law. including :my Qther
procc('dings that the C.mlmJssion may
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initiate to enforce this Order. h)r purposes of this Sec1ion. and any subsequent proceedings to
enforce payment, including. bUl not limited to, a non.
chargeability compJaint fiJed in a
bankruptcy proceeding, Defend:mts agree not to contest any of the aHegations in the
Commission s CompJaint.
MONITORING REQUIREMETS
IT IS FURTHR ORDERED that:
Defendants shaH not disseminate to any customer any advertisement containing
any representations prohibi1ed by this Order.
Defendants shaH not .
directly or indirectly. authoriz.e or encourage any custOmer to
make any representations prohibited under the Order.
Within thiJ1Y
(30) days after the date of
entr of this Order, Defendant IRD shaH
nOtice attached hereto as
send by first- class mai), postage prepaid , a copy of 1he
Attachment A to
each customer to whom it previousJy sold a FuelMax or Super Fue1Max, to the extent that such
custOmer is known 10 IRD through a diligent search of their records. including. bUl not Hmited to,
compUter mes o sa)es records. and inventory Jists. The mamng shan not indude any Other
document. The cost of this mailing sha)) be borne by JRD. Within five (5) days after the date this
mailing is completed. JRD shaH provide to the FTC a list of a)) persons to whom A113chment A
was sent, together with the address to which it was mailed.
For a period of three (3) years foHov.;ing
the date of entry of this Order. IRD shan
send by first- class mail , postage prepaid. a copy of the J101ice attached hereto as Atl3chment A to
each
customer of any MAX prnnlJc1. induding HeatMAX. AromaMAX. FishMAX. BaneryMAX.
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SoapMAX or PowerMAX. or any substantially simi1ar product. with whom they do business after
the date of entry of this Order who has not previousJy received the notjce. IRD shaH send such
not ice to any such customer prior 10
any saJe or
distrbution of !\uch product. The mailing shaH
not include any Other documents. The costs of this mamng shan be borne by IRD.
Defendants may. as an alternative to firsl- cJass mailng required in Sections V. C or
D of this Order, send the nOtice attached hereto as Attachment A by emaB to any customer for
whom Defendants have a valid emajl address.
IRD shaJJ maintain records acknowledging the sending of the notice pursuant to
Section V. , D or E. Defendants shaH maintain such records for a period of six (6) years
fol1owing the date of entry of this Order.
IRD shaH monitor such customers ' 3dvertising and promOtionaJ activities.
including representations m3de through electronic communications. 1n the event that Defendants
receive any information that . subsequent to receipt of Attachment A pursuant 10 Section V.
through E. any customer is using or disseminating any advertisement or promotional material or
making any
st31ement 1hat conwins any representation prohibited by this Order, IRD shall
immediate)y tenninate said custOmer
s right to m3rket Defendants ' products. and shaH
immmediately provide . by ceJ1ified mail. all relevant information, including name. address, and
telephone number of the comp3ny or individual making such representations. to the Federal Trade
Commission at the address provided in Section VIB, C of this Order. With respect 10 any
cuslOmer whose right to market has been terminated pursuan1to the terms of this Subsection. lRD
shall not seH or dislTibute any product covered by Sections lorn
of 1his Order to any such
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customer or accept any orders for any product covered by See1
by or on beha)f of any such customel.
H. IRD shaH not authorize C\JSlOmerS to
ions)
or)) of this Order submitted
disseminate :my marketing or advenising
materials or daims unless such materials and daims are in compHance with this Order.
VI.
ACKNO\VLEDGMENT OF RECEIPT OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that each Defendant. within five (5) business days after
receipt of this Order as entered by the Coun, must submit to the Commission a trthful
statement acknowledging receipt of the Order.
sworn
VB.
COMPLIANCE MONITORING
IT IS FURTHER ORDERED that, for the purpose of monitOring and investigating
compliance with any provision of this Order.
Within ten (10) business days of receipt of wrinen notice from a represemative of
the Commission. Defendants each shaH submit additional \"'Tinen repons , sworn to under penalty
of perjury; produce documents for inspection and copying: appear for deposition; and/or provide
entry during normal business hours to any business lOC31ion
in such defendant s possession or
direct or indirect control to inspect the business operation. Defend:mts shaH have the right to have
counsel present;
In addition. the Commission is authorized to monitor comphance with this Order
by a11 other lawful means. including. but not hrnited 10. the foHowing:
obtaininp djscnvery from any person. v ilhout fun her Jeave -of Coun. using
the procedures prescribed by Fed. R. (iy . P. :f. 31. 33. 34. 30 Jnd 45:
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posing as consumers and suppJiers to Defendants. Defendant s employees,
or any other emitymanaged or comro1Jed in whole or in pan by any
Defendant. whhout the necessity of identifcation or prior notke; and
Defendants shan penTit representatives of the Commission to interiew
any
employer. consuJ1:mt, independent contractor, representative , agent , or employee who has agreed
to such an interview , relating in any way to any conduct subject to this Order. The person
imerviewed may have counsel present.
Provided, however that nothing in this Order shan limit the Commission s lawful use of
compulsory process, pursuant 10 Sections 9 and 20 of the FTC Act, 15 U.
c.
49. 57b 1. to
obtain any documemary material . tangible things, testimony. or information relevant to unfair or
deceptive acts or practices in or affecting commerce (within the meaning or ) 5 U.
c.
45(a)(1 )).
VIII.
COMPLIANCE REPORTING
BY
DEFEl\1JANTS
IT IS FURTHER ORDERED that, in order that comph:mce with the provisions of this
Order may be monitored:
For a period of three (3) years from the date of entry of this Order,
Defendant Anthony Renda shan notify the Commission of the foHowing:
(a)
Any changes in residence. mailing addresses and telephone numbers. within ten (10) days of the date of such change:
(b)
Any changes in employment sta1US
v.'
(including
self-employment)
include the
ithin len ()O) days of such change. Such notice shaH
name :md address of each bu mess the Defendant is aff)jated whh
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or employed by, or performs services for; a statement of the nature of the business, and a statement of the Defendant's duties and
responsibilities in conneCtion with the business or empJoyment;
and
(c)
Any changes in the Defendant s name or use of any aJiases or
ficticious names; and
Defendants shaH notify the Commission of any changes in corporate
structure of IRD or any business that Defendant Anthony Renda directJy or
indirectly controls, or has a greater than ten (J 0) percent ownership interest
in, that may affect compliance obJigations ad sing under this Order,
including but not Hmited to, a dissolUtion . assignment, sale, mer
. or
other aClion that wou1d result in the emergence of a successor entity: the
that creation or dissolUtion of a subsidiary, parent, or affiiate
engages in
any acts or practices subject to this Order: the fiing of a bankptcy
petition or a change in the corporate name or address, at least thirty (30)
days prior 10 such change
provided
that. ,,,'ith respect to any propo:oed
change in the corporation about what the Defendant learns Jess than thiI1y
(30) days prior 10 the date such action is \0 rake pJace, defendants shaH
nOtify the Commission as soon as is practicable after obtaining such
know 1 ed ge.
One hundred eighty (J 8D) days aftenhe date of entry of this Order, Defendams
JR D
md Anthony Renda shaH provide a wrinen repon to the Commission. sworn to under penally
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of peIjury. setting fort
in
detail the m:mner and form in which each Defendant has complied and
is complying with this Order. This h' port shall include. but not be limited to:
For Defendant Anthony Renda:
(a)
The 1th-
current residence address. mailng address. and telephone
numbers of Defendant;
(b)
The then-current employment and business addresses and
telephone numbers of Defendant Anthony Renda. a description of
the business activities of each such employer or business, and the
ti1le and responsibilties of Anthony Renda, for each such
employer or business; and
(c)
Any other changes required to be reponed under subparagraph A
of this Section.
For all Defendants:
(a)
A copy of each acknowledgment of recejpt ofthis Order obtained
by Defendants pursuant to Section IX; and
(b)
Any other changes required to be reponed under subparagraph A
ofthis Section.
For the purposes of this Order, Defendants shalL unless otherwise directed by the
Commission s authorized represen13tives. mail alJ written notifications to the Commission 10:
Associate Director for Enforcement
Federal Trade Commission
60) New Jersey Avenue. N.
WashinglOn. D. C. 20580
J8
Case 1 :04-cv- 06901
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Page 19 of 24
Re:
FTC v. International Re"e:JITh and DeveJopmentCorpor:nion. ef
al. CivH Action No.
04C 6901 .
For purposes of the compliance reponing requiTed by this Seion, theCommi5sion
is authorized to communicate directly with Defendants. unless Defendants indicate that they are
represented by counsel and provide the name and address of such counsel to the Commission.
IX.
DISTRIBUTION OF ORDER BY DEFENDANTS
IT IS FURTHER ORDERED that , for a period of three (3) years from the date of entry
of this Order. Defendants shall deliver a copy of this Order as directed below:
Corporate Defendant: Defendant IRD
must deJiver a copy of this Order to an of
shan be withjn
its principals , officers, directors and managers. For current personneL deliver
five (5) days of service of thjs Order upon Defendant. For new personnel . deHvery shaH occur
prior to them assuming their responsibilities.
Indiyidual Defendant as Control Person: For any business that Defendant
Anthony Renda controls. diTect)y or indirectly. or in which he has majority ownership interest.
that engages in the manufactUring, advenising, promOtion . offering for sale . saJe, or distrjbUtion of
any covered product . Anthony Renda must de1iver a copy of this Order 10 all principals , officers.
directors. and managers of tha1 business. Defendant Anthony Renda must also deHver copies of
this Order to alJ employees, agents. and representatives of that business who engage in the
m:mufacmring. advenising. promotion. offering for sale. sale. or distribUtion of any covered
product. For currem penonneL dehvery shaH be within five (5) days of service of this Order upon
.he DefendaJ1. For new personneL dehvery
han occur prior to them assumin their
responsibilities.
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Jndi"idual Defendant as empJo 'ee or non-control person: For any business
where Defendant Anthony Renda is not a controlJng person of a business but otherwise engages
in the manufacturing, advenising, promOtion, offering for sale. sale, or distribution or any covered
product, Defendant Anthony Renda must deliver a copy of this Order to alJ principaJs and
managers of such business before engaging in such conduct.
Defendants must empJoy reasonable efforts to secure a signed and dated statement
acknowledging receipt of the Order. within thirty (30) days of delivery. from an persons receiving
a copy of the Order pursuant to this Section.
RECORD KEEPING PROVISIONS
IT IS FURTHER ORDERED that . for a period of six (6) years from the date of entry of
this Order. in connection with any business involved in the advenising. marketing, promOtion.
offer for sale. distribution, or sale of any product covered by Sections I or lJ of this Order.
operated by any Defendant, or where 3ny Defendant is a majority owner of the business or
directJ)'
or indirectly m:mages or controls the business. Defendants and their officers. directors. agents.
servants. employees. corporations . successors. and assigns, and those persons in active concert or
participation with them who receive acma) notice of this Order by persona) service or O1hef\\'ise.
are hereby restrained and enjoined from faj)jng to create and retain the foJJowing records:
Accounting records that reflect the cost of goods or services sold. revenues
generated. and the disbursement of such revenues:
Records accurately reflecting: the name. address. and lelephone number of each
per'on employed in any capacity by
uch husines
. including as an independent contractOr: thaI
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person s job title or position; the date upon which 1he
reason for the person s termination, if appJicable:
CustOmer fies
person
commenced work and the date and
containing the names, addresses, telephone numbers, dollar
of items or services
amounts paid . quamity of items or services purchased. and descrip110n
purchased . to 1he extent such infonnation is obtained in the ordinary course of business;
Complaint and refund requests (whether received directJy, indirectly or though
any
third pany), and any responses to those compJaints or refund requests:
Copies of an sales scripts, training ma1erials. advertisements , or other marketing
materials;
An materials that were reJied upon in making any representations contained in the
materials identifjed in Section X. E, inc1uding a)) documents evidencing or referring to the
accuracy of any cJajm therein or to the efficacy of any product covered by Section I or n of
this
Order, inc1uding but not limited to a)) tests , reports. studies. demonstra1ions, or other evidence
that confirm. contradict . qualify. or caB into question the accuracy of any claim about a product
covered by Sections 1
or 11 of this
Order or 1he efficacy of such product. inc1uding compJaims and
other communications with consumers or with governmental or consumer protection agencies:
and
AU records and documems necessary to demonstra1e fuJJ compliance with each
provision of this Order. incJuding. bU1 nm hmited to. copies of ackno\It'JedgmentS of receip1 of this
Order. required by Paragraph D of Seclion IX and aJl reports submiued 10 the Commission
pUrSUan110 Section
vm.
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Xl.
FEES AND COSTS
IT IS FURrHER ORDERED that each party to thjs Order hereby agrees to bear its own
costs and attomey . fees incUJTed
in
connection with this acdon.
XI).
DISSOLUT10N OF PRELIl\lINARY INJUNCTION
Upon emry of this Order. the Stipulated Preliminar Injunction , docketed December 1,
2004, is dissolved.
XIJI. RETENTION OF JURISDICTION
IT IS FUR TIlR ORDERED th at this Court shan retain jurisdiction over this maner for
all purposes.
::
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&..p(, - ..
STIPULATED AND AGREED TO BY:
FOR THE PLAINTIFF:
c. A'J.
FOR THE DEFENDANTS:
+- I
StevenTradeWernikoff Anthony Renda, on behalf of Defendant M. Commission IRD Federal
55 East Monroe Street , Suite 1860 Chicago , Ilinois 60603
(312) 960- 563 0 (Telephone )
Dated
(312) 960- 5600 (Facsimile)
Anthony Renda, individually
Attorney for Plaintiff FEDERAL TRADE COMMISSION
Dated
'1- 0'1 Andrew B. Lustigman 149 Madison Avenue , Suite 805 New York , NY 10016 (212) 683- 9180 (Telephone) (212) 683- 9) 81 (Facsimile)
Attorneys for DEFENDANTS
IT IS SO ORDERED
, this
day of
t/f'
, 2006
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ATTACHMENT A
NOTICE TO CUSTOMERS
(To be printed on letterhead of IR)
(Name and addrss of recipient)
Dear (customer
(Date)
, International Research and Development Corp. of Nevada (uJR" MAXPoducts ) and its president , Anthony Renda , entered into a court settlement with the U. FTC" regarding advertsing claims for the FuelMA and Super Federal Trade Commssion FueIMAX. The agreement does not constitute an admission that any of the defendants have violated the law. As par of the settlement , however, we have agrd to provide the following message to IR' s customers , in order to put you on notice concerning the tenns of the Final Judgment. Previously, we claimed that FuelMA and Super FuelMA could cause a substantial increase in gas mileage and a substantial reduction in emissions. The FTC has taken the position that no scientific studies support these claims. We disagree. However, as par of the FTC settlement , we have agreed to stop manufacturing or distributing FuelMAX and Super FuelMA and a11 other similar purported fuel saving or emission decreasing products.
On
s name):
Additionally, we have agreed not to make any material representation about the performance or effcacy of any product unless , at the time of makng such representation , we possess and rely upon competent and reliable evidence , which when appropriate must be competent and reljable scientific evidence that substantiates the representation. " Competent and reliable scientific evidence " means tests, analyses, research, studies, or other evidence based on the experience of professionals in the relevant area , that have been conducted and evaluated in an objective manner by persons qualified to do so , using procedures genera1Jy accepted in the
profession to yield accurate and reliable results. Anecdota evidence and consumer testimonials
are not considered competent and reliable scientifc evidence.
A copy of the stipulated Final Judgment is available upon your request. Read it carfully.
Failure to comply with any of the provisions of the Final Judgment that may apply to you
could subject you to civil or criminal sanctions.
Furthermore , if you rese11 any of OUf MA products , including HeatM, AromaMX FishMAX , BatteryMAX, SoapMAX Of PowerMAX , or any substantia1Jy similar proucts , you may only utilize the claims , advertising, and promotional materials that are based on competent and reliable evidence, which when appropriate must be competent and feliable scientific evidence. Failure to comply wjth these requirements wil result in termnation.
This letter has been provided for your files. If you have any questions
pJease contact
Sjncerely,