J
Joey
I recently got a spam for printer cartridges that took me to 4your
printer.com. When I plugged the name into the search engine "All the
Web" I found out that the guys below, namely E-Babylon, were the
registered owners of the domain:
For Release: August 23, 2002
On-Line Sellers of Inkjet Printer Cartridge Refills Agree to Pay
$40,000 Civil Penalty to Settle with the FTC
Charged with Deceptive Advertising and Violating the Mail Order Rule
On-line sellers of generic and remanufactured inkjet printer cartridge
refills have agreed to pay a $40,000 civil penalty to settle Federal
Trade Commission charges that they engaged in deceptive practices. The
FTC alleges that E-Babylon, Inc. and its two principals, Michael Zaya
and Aidin Yousif, deceptively represented on their Web sites that
their inkjet printer replacement cartridges were new, brand-name
items, rather than remanufactured or generic items. The Commission
also alleges that the defendants violated the Mail or Telephone Order
Merchandise Rule (Mail Order Rule) by failing to advise consumers of
their right to cancel and receive a refund if the defendants were
unable to ship the products on time.
According to the FTC's complaint, E-Babylon, based in Simi Valley,
California, and its principals operate over a dozen Web sites -
including "ProInkjets.com" and "123inkjets.com." Through these sites,
the defendants sell remanufactured and generic replacement cartridges
for inkjet printers. "Remanufactured" refers to a used, brand-name
cartridge that is refilled with third-party ink. Because this process
is not feasible for all cartridges, the defendants also market new,
generic cartridges for use in some printers. According to the FTC, the
defendants marketed their remanufactured and generic cartridges as
brand-name products, then compared their prices for these products
with the brand-name products available at office superstores.
The complaint alleges that the defendants misrepresented that their
products were new, brand-name inkjet cartridges. In addition, the
complaint alleges, the defendants advertised that dissatisfied
consumers could receive "no questions asked" refunds, yet many
consumers experienced significant difficulties in obtaining refunds.
Further, because the defendants had no procedures in place to comply
with the FTC's Mail Order Rule, they did not advise thousands of
consumers who purchased their products of their right to cancel and
receive a refund when the defendants determined they would not be able
to ship on time.
The proposed consent decree to settle the charges requires the
defendants to pay a $40,000 civil penalty. The proposed decree also
requires the defendants to provide redress to consumers who were
entitled to, but did not receive, a refund pursuant to either the
defendants' money-back guarantee or the Mail Order Rule. In addition,
the proposed decree would prohibit the defendants from: claiming that
any product is a new, brand-name product, unless the representation is
true; misrepresenting any refund offer; and violating the Mail Order
Rule. Finally, the decree would require the defendants to respond
promptly to future refund requests.
The Commission vote to authorize staff to refer the complaint and
proposed consent decree to the Department of Justice for filing was
5-0. The complaint and proposed consent decree were filed by the DOJ
at the request of the FTC in the U.S. District Court for the Central
District of California, in Los Angeles, on Thursday August 22, 2002.
The proposed consent decree is subject to court approval.
------------------------------------------------------------------------
NOTE: This consent decree is for settlement purposes only and does not
constitute an admission by the defendant of a law violation. Consent
decrees have the force of law when signed by the judge.
Copies of the complaint and the proposed consent decree are available
from the FTC's Web site at http://www.ftc.gov and also from the FTC's
Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. The FTC works for the consumer to prevent
fraudulent, deceptive and unfair business practices in the marketplace
and to provide information to help consumers spot, stop and avoid
them. To file a complaint, or to get free information on any of 150
consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or
use the complaint form at http://www.ftc.gov. The FTC enters Internet,
telemarketing, identity theft and other fraud-related complaints into
Consumer Sentinel, a secure, online database available to hundreds of
civil and criminal law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Brenda Mack
Office of Public Affairs
202-326-2182
STAFF CONTACT:
Matthew Gold or Linda Badger
Western Region - San Francisco
415-848-5176 or 415-848-5151
(FTC File No. 012 3209)
(Civil Action No.02-06561)
(http://www.ftc.gov/opa/2002/08/ebabylon.htm)
Related Documents
United States of America [for the FTC] v. E-Babylon, Inc.; Michael
Zaya; and Aidan Yousif (Central District of California).
Complaint for Civil Penalties, Injunctive and Other Relief [PDF 1.5M]
Consent Decree and Order for Injunctive Relief, Civil Penalties, and
Other Relief [PDF 1.8M]
printer.com. When I plugged the name into the search engine "All the
Web" I found out that the guys below, namely E-Babylon, were the
registered owners of the domain:
For Release: August 23, 2002
On-Line Sellers of Inkjet Printer Cartridge Refills Agree to Pay
$40,000 Civil Penalty to Settle with the FTC
Charged with Deceptive Advertising and Violating the Mail Order Rule
On-line sellers of generic and remanufactured inkjet printer cartridge
refills have agreed to pay a $40,000 civil penalty to settle Federal
Trade Commission charges that they engaged in deceptive practices. The
FTC alleges that E-Babylon, Inc. and its two principals, Michael Zaya
and Aidin Yousif, deceptively represented on their Web sites that
their inkjet printer replacement cartridges were new, brand-name
items, rather than remanufactured or generic items. The Commission
also alleges that the defendants violated the Mail or Telephone Order
Merchandise Rule (Mail Order Rule) by failing to advise consumers of
their right to cancel and receive a refund if the defendants were
unable to ship the products on time.
According to the FTC's complaint, E-Babylon, based in Simi Valley,
California, and its principals operate over a dozen Web sites -
including "ProInkjets.com" and "123inkjets.com." Through these sites,
the defendants sell remanufactured and generic replacement cartridges
for inkjet printers. "Remanufactured" refers to a used, brand-name
cartridge that is refilled with third-party ink. Because this process
is not feasible for all cartridges, the defendants also market new,
generic cartridges for use in some printers. According to the FTC, the
defendants marketed their remanufactured and generic cartridges as
brand-name products, then compared their prices for these products
with the brand-name products available at office superstores.
The complaint alleges that the defendants misrepresented that their
products were new, brand-name inkjet cartridges. In addition, the
complaint alleges, the defendants advertised that dissatisfied
consumers could receive "no questions asked" refunds, yet many
consumers experienced significant difficulties in obtaining refunds.
Further, because the defendants had no procedures in place to comply
with the FTC's Mail Order Rule, they did not advise thousands of
consumers who purchased their products of their right to cancel and
receive a refund when the defendants determined they would not be able
to ship on time.
The proposed consent decree to settle the charges requires the
defendants to pay a $40,000 civil penalty. The proposed decree also
requires the defendants to provide redress to consumers who were
entitled to, but did not receive, a refund pursuant to either the
defendants' money-back guarantee or the Mail Order Rule. In addition,
the proposed decree would prohibit the defendants from: claiming that
any product is a new, brand-name product, unless the representation is
true; misrepresenting any refund offer; and violating the Mail Order
Rule. Finally, the decree would require the defendants to respond
promptly to future refund requests.
The Commission vote to authorize staff to refer the complaint and
proposed consent decree to the Department of Justice for filing was
5-0. The complaint and proposed consent decree were filed by the DOJ
at the request of the FTC in the U.S. District Court for the Central
District of California, in Los Angeles, on Thursday August 22, 2002.
The proposed consent decree is subject to court approval.
------------------------------------------------------------------------
NOTE: This consent decree is for settlement purposes only and does not
constitute an admission by the defendant of a law violation. Consent
decrees have the force of law when signed by the judge.
Copies of the complaint and the proposed consent decree are available
from the FTC's Web site at http://www.ftc.gov and also from the FTC's
Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. The FTC works for the consumer to prevent
fraudulent, deceptive and unfair business practices in the marketplace
and to provide information to help consumers spot, stop and avoid
them. To file a complaint, or to get free information on any of 150
consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or
use the complaint form at http://www.ftc.gov. The FTC enters Internet,
telemarketing, identity theft and other fraud-related complaints into
Consumer Sentinel, a secure, online database available to hundreds of
civil and criminal law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Brenda Mack
Office of Public Affairs
202-326-2182
STAFF CONTACT:
Matthew Gold or Linda Badger
Western Region - San Francisco
415-848-5176 or 415-848-5151
(FTC File No. 012 3209)
(Civil Action No.02-06561)
(http://www.ftc.gov/opa/2002/08/ebabylon.htm)
Related Documents
United States of America [for the FTC] v. E-Babylon, Inc.; Michael
Zaya; and Aidan Yousif (Central District of California).
Complaint for Civil Penalties, Injunctive and Other Relief [PDF 1.5M]
Consent Decree and Order for Injunctive Relief, Civil Penalties, and
Other Relief [PDF 1.8M]