UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION
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UNITED STATES OF AMERICA,
Plaintiff,
v.
COMPLAINT FOR CIVIL
PENALTIES, PERMANENT
INJUNCTION, AND OTHER RELIEF
CENTRAL FLORIDA INVESTMENTS,
INC., a Florida corporation,
WESTGATE RESORTS, LTD., a Florida limited partnership, and
CFI SALES & MARKETING, L.L.c., a
Florida limited liability company,
Defendants.
Plaintiff, the United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission ("FTC" or "Commission"), pursuant to Section 16(a)(I) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 56(a)(1), tor its complaint alleges:
1.
Plaintiff brings this action under Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the
FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1 )(A), 53(b), and 56(a), and Section 6 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (the "Telemarketing
Act"), 15 U.S.C. § 6105, to obtain monetary civil penalties, a permanent injunction, and other equitable relief for defendants' violation of Section 5(a) of the FTC Act,
15 U.S.C. § 45(a), and the FTC's Telemarketing Sales Rule (the "TSR" or "Rule"),
A
16 C.F.R. Part 310, as amended by 68 Fed. Reg. 4580, 4669 (January 29, 2003).
JURISDICTION AND VENUE
2.
This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C.
§§ 1331, 1337(a), 1345, and 1355, and 15 U.S.C. §§ 45(m)(l)(A), 53(b), and 56(a).
This action arises under 15 U.S.c. § 45(a).
3.
Venue is proper in this District under 28 U.S.C. §§ 1391(b)-(c) and 1395(a), and 15
U.S.C. § 53(b).
DEFENDANTS
4.
Defendant Central Florida Investments, Inc. ("'CFI") is a Florida corporation with its principal place of business at 5601 Windhover Drive, Orlando, Florida 32819.
Defendant CFI is both a telemarketer and a seller of goods or services, including timeshares and vacations at timeshare resorts. CFI transacts or has transacted business in this District.
5.
Defendant Westgate Resorts, Ltd. ("Westgate") is a Florida limited partnership with its principal place of business at 5601 Windhover Drive, Orlando, Florida 32819.
Defendant Westgate is a seller of goods or services, including timeshares and vacations at timeshare resorts, to consumers that has caused telemarketers, such as the other two defendants (CFI and CFI Sales & Marketing, L.L.C.), to call consumers to induce the purchase of goods or services from Westgate. Westgate transacts or has transacted business in this District. Defendant Westgate is owned by Defendant CFI.
CFI dominates or controls the acts and practices of Westgate.
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6.
Defendant CFI Sales & Marketing, L.L.C. ("CFI Sales") is a Florida limited liability company with its principal place of business at 5601 Windhover Drive, Orlando,
Florida 32819. Defendant CFI Sales is a telemarketer that initiates outbound telephone calls to induce consumers to purchase goods or services from CFI and
Westgate. CFI Sales transacts or has transacted business in this District. Defendant
CFI Sales is owned by Defendant CFI. CFI dominates or controls the acts and practices of CFI Sales.
THE TELEMARKETING SALES RULE
AND THE NATIONAL DO NOT CALL REGISTRY
7.
Congress directed the FTC to prescribe rules prohibiting abusive and deceptive telemarketing acts or practices pursuant to the Telemarketing Act, 15 U.S.C.
§§ 6101-6108, in 1994. On August 16, 1995, the FTC adopted the Telemarketing
Sales Rule (the "Original TSR"), 16 C.F.R. Part 310, which became effective on
December 31, 1995. On January 29,2003, the FTC amended the TSR by issuing a
Statement of Basis and Purpose ("SBP") and the final amended TSR (the "Amended
TSR"). 68 Fed. Reg. 4580, 4669.
8.
Among other things, the Amended TSR established a "do-not-call" registry, maintained by the Commission (the "National Do Not Call Registry" or "Registry"), of consumers who do not wish to
