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Plaintiff Federal Trade Commission's Motion for an Order to Show ...

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y merch<strong>an</strong>ts that consumers may print <strong>an</strong>d use. PX10 39. According <strong>to</strong> Access, from<br />

Oc<strong>to</strong>ber 2010 <strong>to</strong> July 2012, only 169 consumers — 0.05% of those eligible — ever printed a<br />

coupon. PX12 40. If consumers had intentionally enrolled in the defend<strong>an</strong>ts’ program,<br />

far more would have used its features.<br />

The defend<strong>an</strong>ts have seen m<strong>an</strong>y complaints, rapid c<strong>an</strong>cellation requests, low program<br />

usage, <strong>an</strong>d high rates of failed debits, refund dem<strong>an</strong>ds, <strong>an</strong>d <strong>to</strong>tal returns <strong>for</strong> a basic reason:<br />

They have deceptively marketed their program <strong>an</strong>d debited consumers without consent. As<br />

set <strong>for</strong>th below, the defend<strong>an</strong>ts’ conduct violates the Perm<strong>an</strong>ent Injunction.<br />

III.<br />

DISCUSSION<br />

This Court has the inherent power <strong>to</strong> en<strong>for</strong>ce its orders through civil contempt.<br />

Shillit<strong>an</strong>i v. U.S., 384 U.S. 364, 370 (1966). The FTC, as a party <strong>to</strong> the case, may invoke the<br />

court’s powers by filing a civil contempt motion. Gompers v. Bucks S<strong>to</strong>ve & R<strong>an</strong>ge Co., 221<br />

U.S. 418, 445-46 (1911). A civil contempt finding is warr<strong>an</strong>ted where, as here, there is clear<br />

<strong>an</strong>d convincing evidence that the contemnors violated a court order. See CFTC v. Welling<strong>to</strong>n<br />

Precious Metals, Inc., 950 F.2d 1525, 1529 (11th Cir. 1992). The contempt defend<strong>an</strong>ts<br />

should be held in contempt <strong>an</strong>d ordered <strong>to</strong> make full redress <strong>to</strong> consumers because they are<br />

bound by this Court’s Perm<strong>an</strong>ent Injunction <strong>an</strong>d repeatedly violated its provisions.<br />

A. The Perm<strong>an</strong>ent Injunction Binds the Contempt Defend<strong>an</strong>ts.<br />

The Court’s Perm<strong>an</strong>ent Injunction binds the contempt defend<strong>an</strong>ts. Wolf <strong>an</strong>d Eliasson<br />

are parties <strong>to</strong> the case, signed the <strong>Order</strong> after negotiation <strong>an</strong>d representation by counsel, <strong>an</strong>d<br />

acknowledged receipt of the <strong>Order</strong>. The <strong>Order</strong> thus binds them. FED. R. CIV. P. 65(d)(2)(A).<br />

MS LLC has actual notice of the <strong>Order</strong> by operation of law through its officers, Wolf <strong>an</strong>d<br />

13

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