Free Order to Show Cause - District Court of California - California

Case 3:08-cv-01718-VRW

Document 12

Filed 04/11/2008

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1 2 3 4 5 6 7 8 9 10 United States District Court For the Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Plaintiff filed a complaint under sections 5(a) and 12 of the Federal Trade Commission Act, 15 USC §§ 45(a), 52, section 907(a) of the Electronic Fund Transfer Act, 15 USC § 1693e(a), and section 205.10(b) of Regulation E, 12 CFR § 205.10(b) alleging that defendants operate websites selling stop-smoking products and skin care products under false pretenses. Plaintiff also filed an ex v NEXTCLICK MEDIA, LLC, NEXT INTERNET, LLC KENNETH CHAN, and ALBERT CHEN, Defendants. / FEDERAL TRADE COMMISSION, Plaintiff, ORDER No C 08-1718 VRW IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

parte motion for a temporary restraining order (TRO) pursuant to FRCP 65(b) and Civ LR 65-1, as well as a preliminary injunction. Plaintiff filed its complaint on March 31, 2008, and served the summons and complaint on defendants that same day. Doc #11.

Case 3:08-cv-01718-VRW

Document 12

Filed 04/11/2008

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1 2 3 4 5 6 7 8 9 10 United States District Court For the Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Plaintiff alleges that defendants' websites make numerous misrepresentations and employ numerous unfair or deceptive business practices. First, plaintiff alleges that defendants make

unsubstantiated claims about their products' medical benefits. Second, plaintiff alleges that once a consumer signs up for a free trial of defendants' products, the consumer is locked into a monthly contract which is virtually impossible to cancel. Third,

plaintiff alleges that defendants disclose inadequately other aspects of the "free trial" that end up costing consumers money without their knowledge or consent. relief and statutory damages. Good cause thus appearing, defendants are ORDERED to show cause why the court should not grant the preliminary injunction prayed for by plaintiff. Defendants shall file a written response, Plaintiff seeks injunctive

if any, to this Order to Show Cause on or before April 18, 2008. The hearing on plaintiff's application for a preliminary injunction is hereby set for April 22, 2008, at 3:00 pm.

IT IS SO ORDERED.

VAUGHN R WALKER United States District Chief Judge

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