STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL

DEPARTMENT OF LEGAL AFFAIRS

IN THE INVESTIGATION OF:

GULF COAST READERS INC., GULFCOAST READERS SERVICE, INC. and MIDWEST READERS SERVICE,

Respondents.

----------------------------~/ ASSURANCE OF VOLUNTARY COMPLIANCE

1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes,

Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General,

Department of Legal Affairs (hereinafter referred to as the "Department"), caused an

investigation to be made into certain acts and practices of GULF COAST READERS INC., a

Florida corporation, GULFCOAST READERS SERVICE, INC., a Florida corporation, and

MIDWEST READERS SERVICE.

2. GULF COAST READERS INC. ("Gulf Coast") is a Florida corporation with its

principal place ofbusiness registered as 1625 Cape Coral Pkwy E, Cape Coral, FL 33904.

3. GULFCOAST READERS SERVICE, INC. is an inactive Florida corporation

with its principal place of business registered as 2150 West First Street, 2B, Fort Myers, FL

33901.

4. MIDWEST READERS SERVICE is an expired fictitious name owned by

Anthony Moulder with a previous mailing address of 1327 Lafayette Ave., Cape Coral, FL

33904.

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5. Anthony Eugene Moulder is an individual residing at 522 Coral Drive, Cape

Coral, Florida 33904, and is the owner and President of Gulf Coast.

6. Rhonda Moulder is an individual residing at 1708 Paco Grande Parkway, Cape

Coral, Florida 33904, and is the Vice President of Gulf Coast.

7. Gulf Coast, Anthony Eugene Moulder and Rhonda Moulder are hereinafter

collectively referred to as "Respondents."

8. Respondents are prepared to enter into this Assurance of Voluntary Compliance

(hereafter teferred to as the "AVC") without an admission that Respondents violated Florida's

Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of

resolution of this matter with the Department.

9. Pursuant to Section 501.207(6), Florida Statutes, the Department agrees to accept

this A VC in termination of its investigation as to Respondents, solely as to the acts and practices

that were the subject of the investigation.

10. Definitions.

a. "Clear and Conspicuous" (including "Clearly and Conspicuously") means

that a statement is made in a manner readily noticeable and understandable to the persons

to whom it is directed. To determine whether a statement is Clear and Conspicuous,

factors to consider include:

1. whether it is of sufficient prominence in terms of sound and speed,

font, size, placement, color, contrast, and duration of appearance, as compared

with accompanying statements, claims, terms, or representations, so that it is

readily noticeable, understandable, and likely to be heard or understood by a

reasonable person ; and if written or conveyed electronically, the terms are not

Page 2 of 15 lniti~~~

buried on the back or bottom, or in unrelated information or placed on a portion of

the page that a reasonable person would not think contained significant

information;

11. whether it is located sufficiently near any other statement that it

clarifies, modifies, or explains, or that clarifies, modifies, or explains it;

111. whether it is presented to the person(s) to whom it is directed in a

coherent and meaningful sequence with respect to other terms, representations

claims or statements being conveyed;

1v. whether it contradicts, or renders confusing or ambiguous, any

other statement, or appears to be inconsistent with any other statement;

v. whether, if it is oral, it is at an understandable pace, tone and

volume as the sales offer, or, if not oral, it appears for a duration sufficient to

allow viewers to have a reasonable opportunity to notice or read, and is free of

distractions that compete for the attention of the consumer;

v1. whether it is presented in such a way as to be free of distractions,

including but not limited to sound, graphics, text or other offers that compete for

the attention of the consumer; and

v11. whether, in advertising on the Internet, it is made on the same page

as any other term, statement, claim or representation that it modifies, and either

above the fold or Clearly and Conspicuously referenced or linked to a location

below the fold.

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11. Stipulated Facts. The Department and Respondents hereby agree and stipulate to

the following:

a. During the time frame beginning at least September 2004 through the

present, Respondents engaged in the business of selling magazine subscriptions from

Florida to consumers throughout the United States.

b. The Department has investigated allegations that Respondents engaged in

unfair and deceptive practices in the sale and solicitation of magazine subscriptions.

12. This AVC is based upon the stipulated facts set forth herein. The Department

shall not be estopped from taking further action in this matter should the facts described herein

be shown to be incorrect in any material way or should this AVC not be fully complied with in

all material ways by Respondents. The parties agree that this AVC has been entered into based

on the truthfulness of the information provided by Respondents to the best of their knowledge,

information, belief and recollection.

13. Respondents agree and stipulate that they will cease, desist and are hereby barred,

directly as well as indirectly through representatives, agents, employees, successors, assigns,

independent contractors or any other person who acts under, by, through, or on behalf of

Respondents, from marketing, selling, advertising, offering, or providing magazine subscriptions

through the use ofunfair and/or deceptive trade practices in the State of Florida.

14. Respondents, including their representatives, officers, directors, agents,

employees, successors, assigns, independent contractors or any other person who acts under, by,

through, or on behalf of Respondents, directly or indirectly, or through any corporate or other

device, shall:

Page 4 oflS Initia~~RW\..

a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes;

b. Comply with the Florida Telemarketing Act, Chapter 501, Part IV, Florida Statutes;

c. Comply with the federal Telemarketing Sales Rule, 16 C.F.R. Part 310;

d. Cease and desist from making any misrepresentations, or false or deceptive statements, in any communications with consumers; and

e. Cease and desist from initiating or causing charges against any consumer's credit/debit card or bank account when that consumer has disputed a charge, and shall only commence placing charges on the consumer's credit/debit card or bank account after the consumer's dispute has been thoroughly investigated and resolved.

15. Further, Respondents, including their representatives, officers, directors, agents,

employees, successors, assigns, independent contractors or any other person who acts under, by,

through, or on behalf of Respondents, directly or indirectly, or through any corporate or other

device, shall:

a. Revise any and all scripts used for inbound and outbound calls to provide consumers with Clear and Conspicuous disclosures as to the material terms of any magazine subscription or other product purchased by the consumer, including but not limited to: the name of the magazine(s) ordered, length of the subscription, number of payments, amount of each payment, payment schedule (i.e. monthly, quarterly or annually), method of payment and cancellation policy, and ensure that each sales representative is provided with and substantially follows such script(s);

b. Ensure that all verifications of sales to consumers are spoken Clearly and Conspicuously with disclosures as to: 1) the material terms of any magazine subscription or other product purchased by the consumer, including the name of the magazine(s) ordered, length of the subscription, number of payments, amount of each payment, payment schedule (i.e. monthly, quarterly or annually), method of payment and cancellation policy; and 2) all requirements and conditions for obtaining free gifts offered by Respondents directly or indirectly through lead generators or brokers;

c. In the event Respondents learn that any lead generators and/or brokers from whom Respondents purchase leads fail to fulfill their promises of sending free gifts or prizes as advertised to consumers who purchase magazine subscriptions from Respondents, Respondents shall: 1) immediately cease purchasing leads from such lead generator or broker; 2) refrain from purchasing leads from such lead generator or broker until such time as compliance can be confirmed; and 3) Clearly and Conspicuously inform

Page 5 of15 Initial~~~

all consumers who are contacted as a result of lead lists purchased from such lead generators that Respondents are not associated with any promises of free gifts made by third parties and cannot guarantee that the consumers will receive any free gifts or promotional items if they choose to purchase a magazine subscription from Respondents;

d. Mail a written confirmation to every consumer who has purchased a magazine subscription from Respondents within five (5) business days of verification of the sale, including Clear and Conspicuous disclosures as to the name of the magazine(s) ordered, the length of the subscription, number of payments, amount of each payment and payment schedule (i.e. monthly, quarterly or annually), method of payment and cancellation policy;

e. Provide a minimum of a three-day cancellation period commencing on the date the written confirmation of sale is received by the consumer, and ensure that all consumers who attempt to cancel their subscriptions within such period are allowed to do so without any restriction or harassment, except that Respondents may offer the consumer a discount for continuing their subscription so long as such discount is offered without any accompanying harassing or otherwise unfair or deceptive sales tactics;

f. Clearly and Conspicuously disclose Respondents' cancellation or refund policy in all verification calls with consumers and all written confirmations, and ensure that Respondents' agents honor such cancellation or refund policy when addressing consumers' requests. Respondents may make exceptions to the stated policy, in their discretion, when such a deviation will inure to the consumers' benefit; and

g. Cease and desist from placing any unauthorized charges on consumers' credit or debit cards or bank accounts.

16. Respondents shall preserve and retain all relevant business and financial records

relating to the acts and practices at issue in this AVC and other information reasonably sufficient

to establish compliance with the provisions of this AVC for two (2) years from the date of this

AVC, and shall provide reasonable access to such documents and information to the Department

upon request.

1 7. Respondents shall make the terms and conditions of this A V C known to any and

all of its owners, managers, officers, directors and supervisors. The obligations imposed by this

AVC are continuing in nature and shall apply to Respondents' successors and assigns as well as

Page 6 of15

any and all new officers, employees, agents, representatives or any other persons who become

engaged in the business or activities of Respondents.

18. Future complaints received by the Department may be forwarded to Respondents

to the attention of Rhonda Moulder, or another agent designated by Respondents whose contact

information shall be provided to the Department for future correspondence. For all complaints

forwarded to Respondents from the Department, Respondents shall provide a written response to

Department within 15 (fifteen) days detailing the nature of the complaint, Respondent's response

to the complaint and any actions taken to cure and/or resolve the complaint. Any actions taken

by the Department with regard to future complaints shall not be construed as a waiver of the

Department's remedies under this A VC or approval of Respondents' actions and/or resolution of

such complaints.

19. Respondents shall not affect any change in the form of doing business or the

organizational identity of any of the existing business entities or create any new business entities

as a method of avoiding the obligations and terms and conditions set forth in this A VC.

20. Consumer Restitution.

a. On or prior to the effective date of this A VC, Respondents shall pay as

consumer restitution the total amount of $3,386.35 (Three Thousand Three Hundred

Eighty-Six Dollars and Thirty-Five Cents) ("Restitution Amount"). The Restitution

Amount shall be paid to the Department on or before the date of this AVC via wire

transfer or certified check made payable to the Department of Legal Affairs. The

Department shall thereafter allocate and distribute the funds for consumer restitution and

for payment of reasonable attorneys' fees and cost of its investigation as the Department

determines is reasonable in its sole business judgment.

Page 7 of15 Initial~~£Jl\.

b. At the reasonable request of Respondents, the Department shall provide

documentation to the Respondents indicating the consumers refunded and amounts paid

to each such consumer.

21. Respondents shall pay the total sum of $60,000.00 (Sixty Thousand Dollars and

No Cents) to the Department pursuant to Section 501.2105, Florida Statutes, in payment of

attorneys' fees, costs and investigative fees regarding this investigation and future investigative

fees and costs, as follows:

a. Six (6) monthly payments ofTen Thousand Dollars ($10,000.00), with the

first payment due and owing by 4:00pm on March 1, 2014.

b. The remaining payments thereafter will be due on the 1st of each calendar

month thereafter commencing on April 1, 2014.

c. All payments shall be made by wire transfer, cashier's check or other

certified funds payable to Department of Legal Affairs Revolving Trust Fund and

submitted to Assistant Attorney General Sarah Shullman.

22. The original AVC bearing the notarized signatures of Respondents and the

payment(s) due hereunder will be delivered to the attention of Assistant Attorney General Sarah

Shullman, Office of Attorney General, Consumer Protection Division, 1515 N. Flagler Drive,

Suite 900, West Palm Beach, FL 33401.

23. It is hereby agreed by the parties that any failure to comply with the terms and

conditions of this A VC by Respondents is by statute prima facie evidence of a violation of

Chapter 501, Part II, Florida Statutes, and will subject Respondents to any and all civil penalties

and sanctions authorized by law. In the event that a court of competent jurisdiction makes a

determination that a violation of any condition of this AVC has occurred, then Respondents shall

Page 8 of15 lnitia~~j2.&\--

be liable to a consent judgment against Respondents in the amount of $500,000.00 (Five

Hundred Thousand Dollars) in civil penalties, as well as and any other legal or equitable relief as

the court may determine appropriate. The prevailing party in an action to enforce the terms of

this AVC may be entitled to an award of its attorney's costs and fees pursuant to Florida Statute

Section 501.2105(5).

24. Upon the expiration of 91 days following the latter of full execution of this AVC

and/or receipt of all payments due hereunder from the Respondents, provided the Respondents

have fully and completely performed all obligations owing to date and no voluntary or

involuntary petition for bankruptcy or other declaration of insolvency has been filed as to any of

the Respondents, the Department shall close its civil investigation into the acts and practices of

Respondents at issue herein, provided that such closure shall be without prejudice to any other

remaining investigation(s) that may otherwise exist as to Respondents or any other persons or

entities.

25. The effective date of this A VC shall be the date of its execution and delivery by

the Department. Acceptance by the Department shall be established by the signature of the

Director of the Division of Consumer Protection. The receipt by the Department of any monies

pursuant to the AVC does not constitute acceptance by the Department, and any monies received

shall be returned to Respondent if this A V C is not accepted and fully executed by the

Department.

26. It is further agreed that facsimile copies of signatures and notary seals may be

accepted as original for the purposes of establishing the existence of this agreement, and this

AVC may be executed in counterparts the compilation of which shall constitute the full and final

agreement.

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27. Venue for any matter relating to or arising out of this AVC shall be in Palm Beach

County, Florida.

28. Notice to any of the parties to this A VC as may be required shall made by

certified mail and email at the addresses set forth below unless any party notifies the other parties

in writing of another address to which notices should be provided.

To Respondents:

Rhonda Moulder Gulf Coast Readers, Inc. 1625 Cape Coral Pkwy E Cape Coral, Florida 33904.

With a copy to:

Mitchell N. Roth, Esquire Roth Doner Jackson, PLC 8200 Greensboro Drive, Suite 820 McLean, Virginia 221 02

To the Department:

Sarah L. Shullman Assistant Attorney General Office of the Attorney General Consumer Protection Division 1515 N. Flagler Drive, Suite 900 West Palm Beach, FL 33401

29. Nothing in this A VC is to be construed as a waiver of any private rights of any

person or release of any private rights, causes of action, or remedies of any person against

Respondents or any other person or entity.

30. It is a condition of each of the Department's obligations under this A VC that the

Respondents have fully and timely performed all of Respondents' obligations previously due

under this AVC.

Page 10 of 15 Initial~~~

31. This A VC is the final, complete, and exclusive statement of the parties'

agreement on the matters contained in this AVC, and it supersedes all previous negotiations and

agreements. Other than any representation expressly stated in this AVC, the parties have not

made any representations or warranties to each other, and neither party's decision to enter into

this AVC is based upon any statements by the other party outside of those in this AVC.

32. It is further agreed that the parties jointly participated in the negotiation of the

terms ofthis AVC. No provision ofthis AVC shall be construed for or against any party on the

grounds that one party had more control over establishing the terms ofthis AVC than another.

33. In witness whereof~ Respondents have caused this AVC to be executed in the

county and state listed below, as of the date affixed thereon.

SIGNATURES ON FOLLOWING PAGE(S)

Page 11 of 15 Initial~d f:JA__

GULF COAST READERS INC.

Agreed to and signed this 4TIJ day of rl1vv-ch , 2014, by the below-stated person who

stated and affirmed as follows:

BY MY SIGNATURE I hereby affirm that I am acting in my capacity and within my

authority as the Owner and President of GULF COAST READERS INC. and that by my signature

I am binding GULF COAST READERS INC. to the terms and conditions ofthis AVC.

By: Anthony Eugene Moulder, President ..............: GULF COAST READERS INC.

STATE OF FLORIDA COUNTY OF LEE

) )

BEFORE ME, this 4-1h day of ~ "'.rc.&l , 2014, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Anthony Eugene Moulder, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated.

~~-Ncft~PUBLIC

(print, type or stamp commissioned name ofNotary Public)

Personally known __ or Produced Identification X... (check one)

,,uuu,,, ~·m~~l-!!v "u:;;-, JOSE PARRillA ~ • • c·<:. Nota · :. • : ry Public • State ot Flo 'd ~

~ - • • • My Co n a .. ~~ "~l mm. Expires Feb 21 2016 ,. ~ "·?.~.?r.r.~raf..···· Commission 11 EE 17lass

Bonded Through National Notary Assn.

Type ofldentification Produced: l=" 4;r.~ Dr-~' ~~i?""PL _

Page 12 oflS

ANTHONY EUGENE MOULDER

BY MY SIGNATURE I hereby affirm that I am acting in my individual capacity, and

that by my signature I am binding myself, individually, to the terms and conditions ofthis A VC.

SIGNED this 4 Tv, day of rt;O/'£- h , 2014.

ANi1IONYEUGENE MOULDER, INDIVIDUA.'tt'¥'~

STATE OF FLORIDA ) COUNTY OF LEE )

BEFORE ME, this f.tT'I day of i1'h-rt.. h , 2014, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Anthony Eugene Moulder, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated.

N~ (print, type or stamp commissioned name ofNotary Public)

Personally known __ or Produced Identification [><._ (check one) Type of Identification Produced: \='tor, c.t.._

Page 13 oflS

• ,•'''''~''o!:;•.,, JOSE PARRILLA ~ ~~m"'!' ~i"--:. Notary Public • State of Florida

1 ~. ! ·i My Comm. Expires Feb 21,2016 \:~ ~l Commission # EE 171858

··,:,~,9f.:i$•'' Bonded Through National Notary Assn.

-

Initial~~ !A\A....-

RHONDA MOULDER

BY MY SIGNATURE I hereby affirm that I am acting in my individual capacity, and

that by my signature I am binding myself, individually, to the terms and conditions ofthis AVC.

/ L t-t-... SIGNED this i:r day of ll1c;..cc)-, , 2014.

cR~ RHONDA MOULDER, INDIVIDUALLY

STATE OF FLORIDA ) COUNTY OF LEE )

BEFORE ME, this t;rt-... day of /Ylt;.a.kJ , 2014, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Rhonda Moulder, who acknowledged before me that she executed the foregoing instrument for the

pu~~~-

N96RYPUBLIC • ~~~;~::;.-,,- J;E;A;IL~A ~ ~ ~ . ~~m• Y"~ Notary Public • State of Florida ~

' ! • • ~ My Comm. Expires Feb 21, 2016 l-L- Y..(/'. Pt ~~"' ~; Commission# EE 171858 ~

( . t t t . . d '"1:4f"~f\.~'\' pnn , ype or s amp commtsstone ''""'"' Bonded Through National Notary Assn.

name ofNotary Public) -

Personally known __ or Produced Identification ')( (check one) Type of Identification Produced: 'f lb(', ~o '

~ Dr.~ L~e"'s-i ..

Page 14 of 15 lnitia~ lli --------

FOR THE OFFICE OF THE ATTORNEY GENERAL

Signed this l\~day of fh ~ , 2014

Assistant Attorney Ge ral Office of the Atto General Florida Bar No. 0888451 1515 North Flagler Drive, Suite 900 West Palm Beach, FL 33401 Telephone No.: (561) 837-5000 Facsimile No.: (561) 837-5109 Electronic mail: sarah.shullman@myfloridalegal.com

Accepted this / Lday of /t.._cj '2014

on irector, Consumer Protection Division

Florida Office of the Attorney General 107 W. Gaines Street Tallahassee, FL 32399

Page 15 oflS Initial¢?L4 !:fl.__