Â鶹´«Ã½

CONNIE WAGNER
SARAH L. KNAPP
JAMES A. PRUNTY

Â鶹´«Ã½ Trade Commission
601 Pennsylvania Ave., N.W., Rm. 4302
Washington, D.C. 20580
(202) 326-3309 (voice)
(202) 326-2558 (facsimile)

BLAINE T. WELSH
Assistant United States Attorney
701 E. Bridger Ave., Ste. 800
Las Vegas, NV 89101
(702) 388-6336

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

FEDERAL TRADE COMMISSION, Plaintiff
v.
SANDRA L. RENNERT, PHILIP RENNERT, LYLE MORTENSEN, INTERNATIONAL OUTSOURCING GROUP, INC., FOCUS MEDICAL GROUP, INC., TRIMLINE, INC., AFFORDABLE ACCENTS, INC., WORLD WIDE RX, INC., WORLD WIDE MEDICINE, INC., PSRENN, INC. and DOCTORS A.S.A.P., INC., Defendants.

CIVIL ACTION No.

STIPULATED FINAL ORDER FOR PERMANENT INJUNCTION AS TO SANDRA L. AND PHILIP RENNERT AND CORPORATE DEFENDANTS

Plaintiff, the Â鶹´«Ã½ Trade Commission ("FTC" or "Commission"), has filed a Complaint for permanent injunction and other relief against Sandra Rennert, Philip Rennert, Lyle Mortensen, International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc. (collectively "defendants") pursuant to Section 13(b) of the Â鶹´«Ã½ Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(b). Defendant Lyle Mortensen is not a party to this Order.

The Commission and defendants have stipulated to the entry of the following Stipulated Final Order for Permanent Injunction ("Order") in settlement of the Commission's complaint against defendants. The Court, being advised in the premises, finds:

FINDINGS

1. This Court has jurisdiction of the subject matter and of the parties;

2. The Complaint states a claim upon which relief may be granted under Sections 5(a) 12, and 13(b) of the Â鶹´«Ã½ Trade Commission Act, 15 U.S.C. §§ 45(a) and 53(b);

3. Venue is proper as to all parties in the District of Nevada;

4. The activities of defendants are in or affecting commerce, as defined in the FTC Act, 15 U.S.C. § 44;

5. This agreement is for settlement purposes only and does not constitute an admission by defendants that, as alleged in the complaint, the law has been violated, or that the facts in the complaint, other than the jurisdictional facts, are true.

6. Defendants have waived all rights that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, amended by Pub. L. 104-121, 110 Stat. 847, 863-64 (1996);

7. This action and the relief awarded herein are in addition to, and not in lieu of, other remedies as may be provided by law;

8. Each party shall bear its own costs and attorneys' fees; and

9. Entry of this Order is in the public interest.

DEFINITIONS

1. "Defendants" shall mean Sandra Rennert, Philip Rennert, International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc..

2. "Individual Defendants" shall mean Sandra Rennert and Philip Rennert.

3. "Corporate Defendants" shall mean International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline., Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc. and Doctors A.S.A.P., Inc., their divisions and subsidiaries, successors and assigns, and their officers, agents, representatives and employees.

4. "Employment" shall include any affiliation (paid or unpaid) with any business, non-profit, or government entity, including the performance of services as an officer, owner, manager, supervisor, employee, consultant, or independent contractor; and "Employer" shall mean any and all individuals or entities for whom any defendant performs services as an employee, consultant, or independent contractor.

5. "Disclosure" or "disclosed to third party (ies)" shall mean (a) the release of personal information to any other individual, firm, or organization for any purpose not necessary to maintain the technical functioning of a Web site or online service, or to fulfill a consumer's request, or (b) making publicly available such information by any means including public posting on or through home pages, email services, message boards, or chat rooms.

6. "Personal information" means individually identifiable information about an individual collected online including: (a) a first and last name, (b) a home or other physical address including street name and name of city or town, (c) an email address or other online contact information, including an instant messaging user identifier or a screen name that reveals an individual's email address, (d) a telephone number, (e) a social security number, (f) a persistent identifier, such as a customer number held in a cookie or a processor serial number, where such identifier is associated with other individually identifiable information, (g) a combination of a last name or photograph of the individual with other information such that the combination permits physical or online contacting, and (h) information concerning a Web site user that the operator collects online from the user, including medical information or a prescription, that is combined with an identifier described in this definition.

7. "Clearly and conspicuously" means of a size, shade, appearing on the screen for a duration and in a location, sufficient for an ordinary consumer to read and understand it.

8. A requirement that any defendant "notify the Commission" shall mean that the defendant shall send the necessary information via first-class mail, costs prepaid, to the Associate Director for Â鶹´«Ã½, Â鶹´«Ã½ Trade Commission, 600 Pennsylvania Ave., N.W., Washington, D.C. 20580. Attn: FTC v. Rennert, et al. (D. NV).

9. The term "includes" or "including" in this Order shall mean "without limitation."

10. The terms "and" and "or" in this Order shall be construed conjunctively or disjunctively as necessary, to make the applicable phrase or sentence inclusive rather than exclusive.

ORDER

I. PROHIBITED INTERNET BUSINESS PRACTICES

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, shall not advertise, promote, offer to sell or sell prescription drugs over the Internet unless they disclose, clearly and conspicuously:

A. the name, business address, and phone number of the pharmacy that will dispense the prescription drug, and the state or states where such pharmacy is licensed or registered to do business;

B. the name, address and phone number of the physician who will review the information provided by the consumer for the purpose of determining whether to issue or authorize the prescription, if such service is offered, and the state or states where the physician is licensed or authorized to practice medicine;

C. the name, business address, phone number and a contact person for the entity offering the prescription drugs;

D. the state or states from which the entity will accept orders for prescription drugs; and

E. that "Dispensing a prescription drug without a valid prescription is a violation of Â鶹´«Ã½ law. More information on purchasing prescription drugs online is available at www.fda.gov."

IT IS FURTHER ORDERED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise are hereby permanently restrained and enjoined from misrepresenting, expressly or by implication:

A. In connection with the advertisement, promotion, offering for sale or sale of prescription drugs over the Internet

1. that prescriptions are filled or dispensed by a pharmacy owned and operated by defendants;

2. that prescription requests are taken, reviewed, filled or dispensed by a medical clinic;

3. that prescription requests are taken, reviewed, filled or dispensed by resident medical personnel;

4. that defendants offer medical consultations performed by a network of physicians; or

5. that defendants operate a medical clinic with an on-site pharmacy; and

B. In connection with the advertisement, promotion, offering for sale or sale of any goods or services over the Internet

1. that personal or financial information supplied by a consumer will be used only to provide that consumer with requested goods or services; or

2. any other material fact about the scope or nature of defendants' goods, services or facilities.

II. PROHIBITED CREDIT CARD BILLING PRACTICES

IT IS FURTHER ORDERED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in connection with credit card or debit card billing or collections are hereby permanently restrained and enjoined from:

A. Misrepresenting, expressly or by implication, that personal or financial information supplied by a consumer will be used only to provide that consumer with requested goods or services;

B. Representing, expressly or by implication, that a consumer is liable for the cost of any goods or services that the consumer did not order; and

C. Processing any charge to a consumer's credit or debit card that the consumer has not expressly authorized.

III. PROHIBITED DISCLOSURE OF PERSONAL INFORMATION

IT IS FURTHER ORDERED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, are hereby permanently restrained and enjoined from

A. Selling, renting, leasing, transferring or otherwise disclosing to any third party(ies) personal information that was collected from any consumer before defendants posted privacy notice(s) in compliance with Paragraph V.

B. Selling, renting, leasing, transferring or otherwise disclosing to any third party(ies) personal information that was collected from any consumer after defendants posted privacy notice(s) in compliance with Paragraph V, unless the consumer expressly authorizes the disclosure in advance of any disclosure.

Provided that defendants may provide such information to law enforcement authorities or as required to do so by any law, regulation or court order, including as required by this Order.

IV. WEB SITE OPERATION REQUIREMENTS

IT IS FURTHER ORDERED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in connection with the advertising, promotion, offering for sale or sale of prescription drugs over the Internet shall:

A. Establish and maintain reasonable procedures to protect the confidentiality, security and integrity of personal information collected from consumers;

B. Provide reasonable means by which a consumer may access and review personal information concerning him or her; and

C. Provide reasonable means by which a consumer may modify inaccurate personal information or delete personal information, concerning him or her.

V. PRIVACY NOTICE

IT IS FURTHER ORDERED that defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, in connection with the advertising, promotion, or offering of goods or services over the Internet, shall provide notice to consumers of its practices with regard to its collection and use of personal information ("Privacy Notice").

A. The Privacy Notice shall disclose the following:

1. The types of personal information ("PI") that are obtained by means of a Web site, email message, message board, chat room, or any other means. The disclosure shall extend, without limitation, to (a) PI that is actively obtained (including name, geographic address, email address, age, medical information, and financial information), and (b) PI that is passively obtained (including clickstream information, any information from a cookie file, and any persistent or globally unique identifier);

2. The uses that will be made of PI, and the extent to which the consumer may control such uses. The required disclosure of the uses that will be made of PI shall include (a) the purpose(s) for which defendants will use the PI (such as to fill an order, or to convey marketing messages) and (b) identification, by name or by type of entity, of any third parties to which PI may be disclosed (such as business partners, online advertising service providers, Web-site advertisers, list brokers, and the general public) in accordance with Paragraph III of the Order;

3. The means by which a consumer may access and review PI concerning him or her;

4. The means by which a consumer may modify or delete PI concerning him or her; and

5. What measures are employed to ensure the security of the PI.

B. The Privacy Notice shall be phrased in terms that are clear, concise, well-organized, and easily understandable by an average consumer. The Privacy Notice shall not include extraneous information that distracts the reader from the required disclosures.

C. In the case of a site on the World Wide Web, the Privacy Notice shall appear on the home page, and at each location on the site at which PI is collected; provided, that defendants may comply with this provision by (1) placing a clear and conspicuous hyperlink labeled "Privacy Notice" on the home page of the Web site, which shall link directly to a Privacy Notice as described in this Part, and (2) placing, at each location on the site at which PI is collected, the following statement, clearly and conspicuously, in bold typeface: "NOTICE: We collect personal information on this site. To learn more about how we use your information, see our Privacy Notice." The words "Privacy Notice" described in subparagraph (2) shall link directly to a Privacy Notice as described in this Part.

D. In the case of a message soliciting the submission of PI that is transmitted via email, a message board, a chat service, or any other means, the Privacy Notice shall appear in such message; provided, that defendants may comply with this provision by including within the message the following statement, clearly and conspicuously, in bold typeface: "Before providing personal information to us you should read our Privacy Notice." The words "Privacy Notice" shall link directly to a Privacy Notice, as described in this Part, that is maintained on a Web site.

VI. ALLEGATIONS IN THE COMPLAINT

IT IS FURTHER ORDERED THAT the facts as alleged in the Complaint filed with this Judgment shall be taken as true solely for the purpose of any subsequent litigation filed by the FTC to enforce its rights under this Judgment.

VII. ORDER DISTRIBUTION

IT IS FURTHER ORDERED THAT, for a period of five (5) years from the date of entry of this Judgment, defendants shall:

A. Provide a copy of this Judgment to, and obtain a signed and dated acknowledgment of receipt of same from each officer or director, each individual serving in a management capacity, any employee of the corporate defendants responsible for billing credit or debit cards or engaged in the offer or sale of prescription medications over the Internet and all individuals or entities engaged in marketing on behalf of defendants including but not limited to, consultants or independent contractors immediately upon employing, contracting with or retaining any such persons, for any business where:

1. Any defendant is the majority owner of the business or directly or indirectly manages or controls the business, and

2. The business is engaged in the advertising, promotion, or sale of goods or services over the Internet or any other commercial venture where consumers' credit or debit cards are billed for products or services.

B. Maintain for a period of five (5) years after execution, and upon reasonable notice, make available to representatives of the Commission, the original signed and dated acknowledgments of the receipt of copies of this Order, as required in Subsection A of this Paragraph.

VIII. RECORD KEEPING

IT IS FURTHER ORDERED THAT for a period of five (5) years from the date of entry of this Judgment, defendants shall create and maintain:

A. Records sufficient to demonstrate compliance with the provisions of this Judgment, including:

1. All advertisements and promotional materials for any product or service offered for sale over the Internet by defendants, including the following information for any advertising displayed or accessible as a Web page on the Internet or in a similar format on a commercial online service:

a) a printout of all screens or pages displayed or accessible online;

b) the date the information was initially placed online;

c) if applicable, the date the information ceased to be available online;

d) a transcript of any audio or video clips contained in the screens or pages, and identification of any audio, video, or other programs necessary to hear or view the clips; and

e) the name, mailing address and phone number of any entity with whom defendants arranged for the placement of the information online (i.e., the owner of the Internet domain name(s) and, if different, the owner of the server(s) through which the Web page is made accessible on the Internet.)

2. All electronic mail sent to consumers by any corporate defendant, or by any individual defendant on behalf of any corporate defendant.

B. Records accurately reflecting: the name, address, and home telephone number of each person employed in any capacity by any defendant, including independent contractors; the person's job title or position; the date upon which the person commenced work; and if applicable, the date and reason for the person's termination.

C. Records containing the following information for each consumer whose credit or debit card defendants bill for any goods or services, including prescription medications, either directly or through any third party:

1. the consumer's name, address and telephone number;

2. documentation of charge; and

3. the name, address and telephone number of the billing agent, if applicable.

D. Books, records, and accounts that, in reasonable detail, accurately and fairly reflect the cost of goods or services sold, annual and quarterly gross revenues generated, and the disbursement of such revenues; and

E. Records of every consumer complaint or refund request received by defendants, whether directly, or indirectly through a third party.

IX. ACCESS TO BUSINESS PREMISES

IT IS FURTHER ORDERED THAT, for a period of five (5) years from the date of entry of this Judgment, for the purpose of further determining compliance with this Judgment, defendants shall permit representatives of the Commission, within 5 business days of receipt of written notice from the Commission:

A. Access during normal business hours to any office, or facility storing documents, of any business where:

1. Any defendant is the majority owner of the business or directly or indirectly manages or controls the business, and

2. The business is engaged in the advertising, promotion, offering for sale or fulfillment services for goods or services sold over the Internet or any other commercial venture where consumers' credit or debit cards are billed for products or services.

In providing such access, defendants shall permit representatives of the Commission to inspect and copy all documents relevant to the subject of this proceeding; and shall permit Commission representatives to remove documents relevant to any matter contained in this Judgment for a period not to exceed 5 business days so that the documents may be inspected, inventoried, and copied; and

B. To interview officers, directors, and employees, including all personnel involved in responding to consumer complaints or inquiries, and all sales personnel, whether designated as employees, consultants, independent contractors or otherwise, of any business to which Subsection A of this Paragraph applies, concerning matters relevant to the subject of this proceeding. The person interviewed may have counsel present; provided that, upon application of the Commission and for good cause shown, the Court may enter an ex parte order granting immediate access to defendants' business premises for the purposes of inspecting and copying all documents relevant to any matter contained in this Judgment.

X. MONITORING OF INDIVIDUAL DEFENDANTS

IT IS FURTHER ORDERED THAT for a period of five (5) years from the date of entry of this Judgment, each individual defendant shall inform the Commission by written notification within 30 days of:

A. Any change in the individual defendant's residential address, occupation, place of business, or place of employment;

B. Any change in the name, address, type of business, or identity of each company, corporation, partnership, or business owned or controlled directly or indirectly by the individual defendant;

C. Any proposed change in any company, corporation, partnership, or business that is owned or controlled, directly or indirectly, by the individual defendant including: dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in their business relationship(s) that may affect compliance obligations arising out of this Judgment;

D. Any affiliation with a new business or employment involving the advertising, promotion, offering for sale or fulfillment services for prescription medications sold over the Internet or the billing of consumers' credit or debit cards, including a description of such business, the business address, as well as the individual defendant's interest in and duties in connection with such business or employment;

E. The formation of any corporation, sole proprietorship, partnership, or independent consulting business or any other business entity that advertises, promotes, sells or provides fulfillment services for prescription medications offered over the Internet, or the billing of consumers' credit or debit cards, in which the individual defendant is an officer or director, or in which (s)he holds 10% or more of the stock; and

F. Any termination or suspension of business operations by the individual defendant, the resumption of business operations, or any termination, suspension or establishment of any type of consulting relationship with any third party relating to the advertising, promotion, sale or fulfillment of prescription medications offered over the Internet.

XI. NOTIFICATION OF CHANGES IN BUSINESS STRUCTURE

IT IS FURTHER ORDERED THAT for a period of five (5) years, each corporate defendant, its successors and assigns, shall notify the Commission at least 30 days prior to any change in the business including: any merger, incorporation, dissolution, assignment, sale resulting in the emergence of a successor corporation, the creation or dissolution of a subsidiary or parent, or any other change that may affect defendant's obligations under this Order.

XII. COMPLIANCE REPORTING BY DEFENDANTS

IT IS FURTHER ORDERED THAT 180 days after the date of entry of this Order, each defendant shall provide a written report to the FTC, sworn to under penalty of perjury, setting forth in detail the manner and form in which that defendant has complied and is complying with this Judgment. This report shall include:

A. The then current residence address and telephone number of any individual defendant and chief executive officer of a corporate defendant;

B. The then current business or employment address and telephone number of any employer of any individual defendant; a description of the business activities of each employer, and defendant's title and responsibilities for each employer;

C. A copy of each acknowledgment of receipt of this Judgment obtained by defendants pursuant to Paragraph VII; and

D. A statement describing the manner in which defendants have complied and are complying with Paragraphs I, II, III, IV, V, VII and VIII of this Judgment.

Upon written request by a representative of the Commission, defendants shall submit additional written reports (under oath, if requested) and produce documents on 15 days' notice with respect to any conduct subject to this Judgment. For purposes of the compliance reporting required by this Paragraph, the Commission is authorized to communicate in writing directly with defendants.

XIII. COMMISSION'S AUTHORITY TO MONITOR COMPLIANCE

IT IS FURTHER ORDERED THAT the Commission is authorized to monitor defendants' compliance with this Judgment by all lawful means, including but not limited to the following means:

A. The Commission is authorized, without further leave of court, to obtain discovery from any person in the manner provided by Chapter V of the Â鶹´«Ã½ Rules of Civil Procedure, Fed. R. Civ. P. 26 - 37, including by use of compulsory process pursuant to Fed. R. Civ. P. 45, for the purpose of monitoring and investigating defendants' compliance with any provision of this Judgment;

B. The Commission is authorized to use representatives posing as consumers and suppliers to defendants, defendants' employees, or any other entity managed or controlled in whole or in part by defendants, without the necessity of identification or prior notice;

Nothing in this Judgment shall limit the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to investigate whether defendants have violated any provision of this Judgment or Section 5 of the FTC Act, 15 U.S.C. § 45.

XIV. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED THAT, within 5 business days after receipt by defendants of this Order as entered by the Court, defendants Philip Rennert, individually, and defendant Sandra Rennert individually and on behalf of the corporate defendants, shall each submit to the Commission a truthful sworn statement, in the form shown on Appendix A, that shall acknowledge receipt of this Judgment.

XV. CONTINUING JURISDICTION

IT IS HEREBY ORDERED THAT this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Judgment.

The parties hereby consent to the terms and conditions set forth above and consent to

entry of the Final Judgment without further notice to the parties. Each party to this Judgment hereby agrees to bear its own costs and attorneys fees incurred in connection with this action.

STIPULATED AND AGREED TO BY:

IT IS SO ORDERED, this ______ day of __________, 2000 in ______________, Nevada.

_______________________________________
UNITED STATES DISTRICT JUDGE

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

FEDERAL TRADE COMMISSION, Plaintiff
v.
SANDRA L. RENNERT, PHILIP RENNERT, LYLE MORTENSEN, INTERNATIONAL OUTSOURCING GROUP, INC., FOCUS MEDICAL GROUP, INC., TRIMLINE, INC., AFFORDABLE ACCENTS, INC., WORLD WIDE RX, INC., WORLD WIDE MEDICINE, INC., PSRENN, INC. and DOCTORS A.S.A.P., INC., Defendants.

AFFIDAVIT OF [DEFENDANT]

[Defendant], being duly sworn, hereby states and affirms:

1. My name is . I am a citizen of the United States and am over the age of eighteen. I have personal knowledge of the matters discussed in this declaration, and if called as a witness, I could and would competently testify as to the matters stated herein. I am a defendant in the above captioned action.

2. On (date) , I received a copy of the Stipulated Final Order for Permanent Injunction, entered on _______ in the United States District Court for the District of Nevada. A true and correct copy of the Order that I received is appended to this Affidavit.

I hereby declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on (date) , at (city, state) ,

(Name of Defendant)

STATE OF

COUNTY OF

BEFORE ME this day personally appeared , who being first duly sworn, deposes and says that s/he has read and understands the foregoing statement and that s/he has executed the same for the purposes contained therein.

SUBSCRIBED AND SWORN TO before me this day of , 2000, by . S/he is personally known to me or has presented (state identification) as identification.

Print Name

NOTARY PUBLIC,

STATE OF

Commission Number

Affix Seal