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Remedies Keyed to Tabb, 8th
Federal Trade Commission v. Trudeau (Trudeau II)
Citation:
662 F.3d 947 (2011)Facts
Kevin Trudeau, an infomercial personality, entered into a consent order with the Federal Trade Commission to resolve allegations of deceptive advertising practices. Despite this agreement, Trudeau aired infomercials misrepresenting the content of his book “The Weight Loss Cure ‘They’ Don’t Want You to Know About” approximately 32,000 times. The infomercials generated substantial sales through an 800-number ordering system, with gross revenues of $37.6 million from these sales alone, not including bookstore sales of copies marked “As Seen on TV.” Trudeau had assigned his payment rights to ITV Global in exchange for monthly million-dollar checks over ten years, though he received only $1.05 million before the contempt proceedings. The district court found Trudeau in contempt and, after the Seventh Circuit’s first remand, imposed a $37.6 million remedial fine calculated from 800-number sales plus shipping minus returns, and required a $2 million performance bond before Trudeau could participate in future infomercials.
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