National Talent Associates, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF NATIONAL TALENT ASSOCIATES, INC., ET. AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8960. Consent Order, Nov. 1975-Modifying Order Jan. , 1986 The Federal Trade Commission has modified a 1975 consent order with National Talent Associates, Inc., et a1. (86 F. C. 1202), amending the provisions of the order that tell the company what disclosures it must make to consumers about its success in obtaining paid employment for clients. The consent order prohibited the respondents from misrepresenting their ability to obtain modeling positions for young children and required them to disclose specified information to prospective clients. ORDER REOPENING THE PROCEEDING AND MODIFYING CEASE AND DESIST ORDER On September 20, 1985, National Talent Associates, Inc., a New Jersey corporation; National Talent Associates, Inc., an Ilinois corporation; National Talent Associates, Inc., a California corporation; and Sanford Storm and Jerome P. Ash/field, individually and as officers of said corporations (Petitioners) filed a request to reopen and modify the consent order entered against them by the Commission on November 26, 1975, in Docket No. 8960 (86 F. C. 1202)'- The request to reopen and modify the consent order was placed on the public record on September 20, 1985, and a press release regarding the request was issued on October 2, 1985. The public comment period ended on November 1, 1985, and no comments were fied. The deadline to rule on Petitioners' request was January 20, 1986. Petitioners sell five year contracts to parents of young children under which they arrange to have the children photographed annually for five years. They then submit the photographs to talent agencies for consideration for employment as models. The order prohibits various misrepresentations including those relating to the employment . opportunities and potential earnings available to children placed under their contracts. It further imposes affrmative obligations on . Other respondents under the order are nothound by Part I of the order, with which the petition is concerned, and are not Petitioners.

, Modifying Order 107 Petitioners, including a requirement that they give to each prospective purchaser an Important Information document disclosing the number of children signed to their contracts during the immediately preceding two calendar year period, and information reflecting the success rates of these children in the modeling business. Petitioners requested that several paragraphs of Part I ofthe order be modified or replaced with new paragraphs and that three new paragraphs be added to the order. They assert that changed conditions of fact since the order was issued require that Paragraph 13 be modified. They state furtherthat the public interest requires that the first and second It is further ordered" paragraphs of the order be replaced with new paragraphs and that new third, fourth and fifth further ordered" paragraphs be placed in the order. Paragraph 13 of the Order Under Paragraph 13 of the order, Petitioners are prohibited from representing that:

National Talent Associates, Inc., a New Jersey corporation, arranges for professional photographs to be taken of each person placed under its contract by an independent photographic studio.

Petitioners state that at the time that the order was issued, the individual respondents owned an interest in a photographic studio. This is no longer true, and Petitioners now arrange for NT A clients to have photographs taken by independent photographic studios. Based on this changed condition of fact, Petitioners ask that the words unless such is in fact true, be added to the end of the paragraph.

The Commission agrees with the Petitioners that Paragraph 13 should be modified to reflect the stated changed factual condition. Petitioners should not be prohibited from making a truthful representation. If they acquire an interest in a photographic studio to which they refer clients in the future, the modified paragraph would prohibit them from representing that the photographic studio is an independent photographic studio.

First "It is further ordered" Paragraph of the Order Petitioners ask that the first It is further ordered" paragraph of the order, with the exception of the last subparagraph therein, be replaced with a new first It is further ordered" paragraph. The first It is further ordered" paragraph reads as follows: It is further ordered That respondents shall disclose the following information, in writing, in a clear and conspicuous manner to each person who is a prospective purchas- Modifying Order er of any of their products or services, prior to entering into any agreement for the furnishing of such products or services,. including the photographing of, or assistance , any such persons in seeking or obtaining employment opportunities as models actors, actresses or entertainers in the commercial advertising, talent, modeling or entertainment industries.

a. The number of persons who contracted with respondents for the purchase of photographs or services to be used in connection with the selection, placement or employment of persons in the commercial advertising, talent, modeling or entertainment industries, as models, actors, actresses or entertainers, within the two calendar years immediately preceding the year in which the prospective purchaser was contact- , the number and percentage of such persons who obtained paid employment through the auspices of respondents, as well as the number of paid jobs and agency contracts obtained by such persons.

b. The total number of persons placed under contract by respondents in each of the following categories of gross annual earnings, derived from paid employment in the commercial advertising, talent, modeling or entertainment industries, as models, actors, actresses or entertainers, during the two calendar years immediately preceding the year in which the prospective purchaser was contacted by respondents: Under $100 $100-$250, $250-$500, $500-$1 000, $1 000-$2 000, $2 000-$4 000 , $4 000-$6 000 000-$8 000, $8 000-$10 000, $10 000 and above. c. Whether any financial agreement, arrangement or connection, exists between respondents and any photographic studio to which they may refer prospective purchasers of their photographs or services.

d. Whether any financial agreement, arrangement or connection, exists between respondents and any person, firm or agency to whom photographs, or any other information, concerning the prospective purchaser, oftheir products or services may be sent by respondents.

e. The source or sources from which the names, addresses, or any other information about prospective purchasers, or about any other members of their immediate family, was obtained by respondents.

Petitioners ' proposed first It is further ordered" paragraph of the order would effect several significant changes in the Important Information document. The document now relates to the success rates of children signed by NT A during the immediately preceding two calendar years. The modified paragraph would change the time period covered to the immediately preceding five calendar years. Petitioners argue that the information required to be disclosed does not accurately reflect NT A client opportunities during the term oftheir contracts with NTA. "Of significant importance, Petitioners state NTA' s agreements with clients are for five years; whereas, the order provisions require disclosure for two years. Depending on the date on which a client is signed during the two-year period, it is often impossible for a client to be processed by NTA, signed by a talent agency, obtain a job assignment and receive payment for the assignment in sufficient time to be included in all subparagraph a. data disclosure categories." Thus, to make the data more rei event to prospective Modifying Order 107 F.

purchasers, Petitioners propose to enlarge the two year period to five years.

The items of information to be disclosed on the Important Information document would be reduced from five to three. The order requires the disclosure of the number of children signed to NTA contracts, the number of these children who were accepted by talent agencies, the number and percentage who obtained paid employment the number of paid job assignments that they obtained qnd their earnings. Data concerning the number who were accepted by talent agencies and the number of paid job assignments that they obtained would no longer be disclosed. According to the Petitioner, these items of information are confusing and not easily relatable to the total number of persons contracting with NTA. Furthermore, the Petitioners assert that this data is extremely burdensome to compile. The disclosure of earnings prescribed by subparagraph b. ofthe first It is further ordered" paragraph would be substantially altered by Petitioners' proposed modification. The proposed categories of gross annual earnings are as follows: under $500, $50 000, $5, $10 000 and above $10 000. Additionally, cumulative earnings would be permitted rather than annual earnings during the five calendar year period. In support of this modification, Petitioners assert that the public interest requires the elimination of unnecessary detail, and the four categories of earnings are more concise and easier to understand. Additionally, Petitioners argue that the physical counting and compilation of this data has been extremely burdensome and costly to NT A. To continue the ten categories of earnings with five year computations would be even more burdensome. Petitioners' proposed modifications would permit two footnotes to be placed on the Important Information document. A footnote to items one and two, the number of persons signed to NT A's contracts and the number and percentage of those persons who received payment for employment, would read:

Ofthe children signed during the past five years, only a few have had the opportunity to complete the full term of their five-year agreement. A footnote to item three, the number of persons who earned income and their gross earnings, would read:

These figures do not include those children signed by NTA prior to (Year) who received earnings during the past five years.

Petitioners state that the footnotes are needed to "further clarify and explain the coverage of items, 1, 2 and 3 on the disclosure document.

Modifying Order Subparagraph c. of the first It is further ordered" paragraph requires Petitioners to disclose whether "any financial agreement, arrangement or connection exists between Petitioners and any photographic studio to which they may refer prospective purchasers oftheir photographs or services." Subparagraph d. requires the disclo- . sure of any such arrangement with firms or agencies to whom photographs, or any other information concerning prospective purchasers of their photographs or services are sent. Petitioners ask that subparagraphs c. and d. be combined into subparagraph (4) in the paragraph that they propose. These disclosures would be necessary only if such financial arrangements exist. Petitioners assert tha,t the public interest requires this modification for clarification purposes. The Commission has concluded that, taken together, the modifications proposed by Petitioners to the first It is further ordered" parapublic interest. The Important graph of the order serve the Information document does not accurately reflect the success rates of Petitioners' clients if it is limited to only two of the five years that they are under contract. Moreover, some less significant information would be eliminated. The essential information is the number of children signed to Petitioners' contracts, the number and percentage who obtained employment and their earnings. This information would be retained. Similarily, the reduction of categories of income from ten to four serves to make the document more concise and understandable. Unless a financial agreement, arrangement or connection exists between Petitioners and the photographic studios to whom they refer clients or the talent agencies to whom the photographs are submitted there is no need to clutter the document with the disclosures required by subparagraphs c. and d. of the order. The footnotes, which would be permitted to appear on the document, would assist prospective purchasers in understanding the statistical data. Finally, the modified order paragraph is clearly drafted, and ambiguities have been eliminated.

Last Subparagraph of the First "It is further ordered" Paragraph and the Second "It is further ordered" Paragraph of the Order Petitioners request further that the order be modified by deleting therefrom the last subparagraph of the first It is further ordered" paragraph and the second It is further ordered" paragraph and replacing them with the second It is further ordered" paragraph set forth in their petition. The subparagraph and paragraph proposed to be deleted from the order are:

At the time when the foregoing disclosures are made, respondents shall furnish the prospective purchaser of any of their products or services with a retainable duplicate Modifying Order 107 F.

copy of the disclosure document, and secure from such prospective purchaser a signed acknowledgment of the receipt thereof on the properly dated original copy. The document containing the disclosures shall be headed Important Information and shall not contain information or representations other than those set forth above. It is further ordered That respondents maintain, for a five year period following the execution thereof, the originals ufthe signed acknowledgments of receipt or the disclosures described in the preceding paragraphs and make them available for examination and copying, if necessary, by a duly authorized representative of the Federal Trade Commission, upon reasonable notice, during normal business hours. The modification requested by respondents would replace the words prospective purchaser, with the word purchaser Additionally, respondents' representative would be required to sign the copy of the Important Information document that is retained for Commission staff inspection.

The Commission considers the proposed modifications, taken together, to be in the public interest. The first subparagraph of the proposed first It is further ordered" paragraph retains the obligation to give the Important Information document to each prospective purchaser of Petitioners' services. However, enforcement problems are brought about by a requirement that a signed acknowledgment of receipt be retained from each prospective purchaser. Additionally, the requirement that respondents' representative must also sign the copy ofthe document that is retained for staff inspection should serve to make those representatives aware of the importance of the document and the need to obtain a signed acknowledgment of receipt from each purchaser and to retain it.

Proposed Third "It is further ordered" Paragraph of the Order Petitioners ask that a new third It is further ordered" paragraph be placed in the order. It would prohibit them from making any claim or other representation, in advertising or promotional material, or in any oral sales presentation, that contradicts any of the information required to be disclosed in the Important Information document. In the view ofthe Commission, the public interest requires this prohibition to prevent overstatements of the employment opportunities and financial gains that may be anticipated by purchasing Petitioners services.

Proposed Fourth "It is further ordered" Paragraph of the Order A new fourth It is further ordered" paragraph, which Petitioners request be placed in the order, would permit Petitioners to have up to sixty days after the close of each calendar year to update the Important Information document for the immediately preceding five calendar year period. In compiling the information required in , Modifying Order the first item of information on the disclosure document, a tolerance of one quarter of one percent would be permitted and a tolerance of one percent would be permitted in compiling the information for the third item of information, if such variances resulted from a good faith effort to accurately compile the required information. In support oftheir request that the order be modified by adding the above-described paragraph, Petitioners contend that the public interest requires the Hcollection, assimilation and dissemination of accurate data; however, contrary to the public interest, the order does not allow suffcient time to collect the required data nor provide for good faith human error in assembling the data for display on the Important Information document. The proposed order paragraph, Petitioners continue takes into account the necessary time needed to accurately complete the Important Information document and allows for good faith error, should the physical counting and compilation of statistical data (including determining five year cumulative earnings figures for each eligible client) result in insignificant errors.

We agree with Petitioners that adequate time should be provided in the order to update the iniormation on the Important Information document from one calendar year to the next. The sixty days requested by Petitioners is reasonable. We agree also that small toler' ances should be permitted for errors made in good faith in compiling the statistical data showing the number of children signed to their contracts and their earnings. No tolerance would be permitted for the information showing the number and percentage who were successful in being employed through Petitioners' auspices since this information involves fewer numbers and less diffcult calculations. Proposed Fifth "It further ordered" Paral?raph of the Order Petitioners further request that a fifth It is further ordered" paragraph be placed in the order. It would require Petitioners to "maintain, and, upon request, make available to the Federal Trade Commission records substantiating the statistical information contained in each Important Information document then in use." As the Important Information document relates to a period of five calendar years, the records substantiating the information would be maintained for five years. Petitioners assert that the proposed fifth It is further ordered" paragraph is in the public interest as it provides additional compliance safeguards by establishing data substantiation and record keeping requirements which wil allow the Commission s staff. to effectively monitor Respondents' compliance with the first It is further ordered" provision. The Commission has concluded that the public interest clearly requires that records substantiating the information on the Important Modifying Order 107 F.

Information document be maintained for compliance monitoring purposes.

Conclusions Section 5(b) of the Federal Trade Commission Act, 15 V. C. 45(b), requires that an order be modified or set aside upon a satisfactory showing that changed conditions oflaw or fact require that the order be altered, modified or set aside. The Commission s rules implementing this statute amplify on this by providing that an order should be altered, modified or set aside if "the public interest so requires." The Commission has concluded that Petitioners have adequately shown that changed conditions of law and public interest considerations require that the order be modified in the manner requested by Petitioners.

The Important Information document, if prepared in accordance with the terms ofthe modified order, wil more accurately reflect the success rates of Petitioners' clients. By the elimination of unnecessary information, the document wil be more understandable and meaningful to prospective purchasers of Petitioners' services. The burden and expense of compiling the statistical data for the document wil also be substantially reduced. Moreover, the modifications strengthen the order by requiring substantiation for the information on the "Important Information" document and prohibiting representations that may contradict this information.

It is therefore ordered That the proceeding is hereby reopened and the Decision and Order issued on November 26 1975, is hereby modified to read as follows:

ORDER It is ordered That National Talent Associates, Inc., New Jersey, Ilinois and California corporations, their successors and assigns, and Sanford Storm and Jerome P. Ashfield, individually and as offcers of said corporations, and said respondents' offcers, agents, representatives and employees directly or through any corporation, subsidiary, division or other device, in connection with the advertising, ofiering for sale, sale and distribution of products or services in connection with the placement and employment of persons as models, actors actresses or entertainers in the commercial advertising, talent, modeling or entertainment industries, in or affecting commerce as Ctcommerce" is defined in the Federal Trade Commission Act, do forthwith .... ........... ,...

l';H. .I.1Vl';.n.I .1.n.I Modifying Order cease and desist from representing, directly or indirectly, orally or in writing, that:

1. Respondents have received information that a person may possess the necessary personal or physical characteristics or other qualifications suitable for success in the commercial advertising, talent modeling or entertainment industries.

2. Referrals from past purchasers of their products or services are a significant source from which the names of potential purchasers have been obtained.

3. Respondents have obtained the names of potential purchasers from a source which cannot be divulged.

4. Respondents, when requested, wil provide persons with the source from which the information referred to in their solicitation letters, solicitation phone calls, or in any other means of solicitation was obtained and the nature of such information, unless respondents provide such information when requested.

5. National Talent Associates, Inc. has the expertise essential for the judging and selection of the most qualified persons to be used as models, actors, actresses or entertainers in the commercial advertising, talent, modeling or entertainment industries. 6. National Talent Associates' salesmen, agents or representatives have the expertise essential to select and judge the suitability of persons as models, actors, actresses or entertainers in the commercial advertising, talent, modeling or entertainment industries. 7. Persons who prior to an in-person interview have been solicited by National Talent Associates, Inc., have been selected on the basis that they may have the necessary personal or physical characteristics or other qualifications suitable for success in the commercial advertising, talent, modeling or entertainment industries. 8. The majority of National Talent Associates' income is derived from its personal management contracts and its ability to place persons under contract with the leading advertising, modeling, talent or entertainment agencies.

9. Persons are selected and offered contracts by National Talent Associates, Inc., only on the basis that they may possess the personal or physical characteristics or other qualifications suitable for success in the commercial advertising, talent, modeling or entertainment industries.

10. A person s chances for selection by Monica Stuart, the Wiliam Schuller Agency, Inc. , or by any person or agency, will be aided increased or enhanced, by entering into a contract with National Talent Associates, Inc.

11. Access to Monica Stuart or to the Wiliam Schuller Agency, Inc. Modifying Order 107 F.

is available only to persons who contract with National Talent Associates, Inc.

12. Monica Stuart or the Willam Schuller Agency, Inc., review photographs of only those persons who have contracted with National Talent Associates, Inc.

13. National Talent Associates, Inc., a New Jersey corporation arranges for professional photographs to be taken of each person placed under its contract by an independent photographic studio unless such is in fact true.

14. Persons who contract with National Talent Associates, Inc. wil receive annually one black and white, 8 X 10 inch, photograph of children in the family not under contract, for a five year period, or for any period in excess ofthe period in which said photograph is received without any obligation to purchase additional photographs at an added cost.

15. Natural color photographs of persons who contract with National Talent Associates, Inc. are submitted annually, for a five year period, or for any period in excess of the period in which said photographs are submitted to Monica Stuart or to the Wiliam Schuller Agency, Inc. for her or their consideration and review, without disclosing that, unless the person comes back for rephotographing annually for a five year period, such person s photographs wil not be resubmitted to Monica Stuart or to the William Schuller Agency, Inc. 16. National Talent Associates, Inc. photographs other persons in a family in addition to the person whose name appears on its contract solely for the purpose of submitting said photographs to Monica Stuart of the William Schuller Agency, Inc. for her evaluation of their potential for the commercial advertising, modeling, talent or entertainment industries.

17. The remuneration received by Monica Stuart of the William Schuller Agency, Inc., in connection with her consideration and review of photographs submitted to her by National Talent Associates, Inc., is derived solely from a percentage of the earnings of persons selected by her and placed under contract by the Wiliam Schuller Agency, Inc.

18. Persons placed under contract by National Talent Associates, Inc. can reasonably anticipate significant or substantial earnings from paid employment in the commercial advertising, talent, modeling or entertainment industries as models, actors, actresses, or entertainers.

19. Persons who contract with National Talent Associates, Inc. may reasonably anticipate earning sums of money suffcient to provide for a college education or for any other such formal education. 20. A person s chances for selection as a model, actor, actress or Modifying Order entertainer by the commercial advertising, modeling, talent or entertainment industries is, in any way, enhanced solely because he or she is Black, Oriental, has red hair, freckles or because of his or her size age or any other specific racial or personal characteristics. It is further ordered That respondents shall disclose clearly and conspicuously to each prospective purchaser of their services, prior to entering into any agreement for the furnishing of such services, the following information in a written document entitled Important Information (1) The total number of persons signed to contracts and accepted by respondents during the five (5) calendar years immediately preceding the year in which the prospective purchaser is contacted; provided however, such total number may also be broken down by individual calendar year so long as the total number for the five (5) calendar years appears with such calendar year breakdown; (2) The number and percentage of those persons in (1) above, who received payment for employment;

(3) The number of persons in (1) above who earned income and their cumulative gross earnings during the five (5) calendar years immediately preceding the year in which the purchaser is contacted, in each ofthe following categories: under $500, $500-$5 000, $5 000-$10 000 and above $10 000;

(4) Any financial agreement or affliation between respondents and (a) any photographic studio to which they may refer purchasers of their services, and/or (b) any person, firm or agency to whom photographs, or any other information, concerning purchasers of their services may be sent by respondents;

(5) The source or sources from which the names, addresses, or any other information about prospective purchasers, or about any other members of their immediate family, was obtained by respondents; and shall disclose in such Important Information document no other statistical data or information except (a) the name and addresses of National Talent Associates; (b) the following footnote relating to (1) and (2) above:

Of the children signed during the past five years, only a few have had the opportunity to complete the full term of their five-year agreement. and (c) the following footnote relating to (3) above: These figures do not include those children signed by NTA prior to (Year) who received earnings during the past five years. It is further ordered That respondents shall provide to each pur- %), Modifying Order 107 F.

chaser of their services a retainable copy of the Important Information document, and secure from each such purchaser a signed and dated copy of such document containing an acknowledgment by the purchaser of having received such document, which shall also be signed by respondents' representative, and that respondents shall maintain each such signed and dated document for five years and upon request, make them available to the Federal Trade Commissionfor inspection and copying. It is further ordered That respondents shall not, in advertising or promotional material, or in any oral sales presentation, make any claim or other representation that contradicts any of the information required to be disclosed in the Important Information document. It is further ordered That respondents shall have up to sixty (60) days after the close of each calendar year to compile and update the Important Information document for the immediately preceding five-calendar-year period; provided, however no Important Information document shall be given to any prospective purchaser after sixty (60) days from the beginning of each calendar year that does not disclose the information required to be disclosed by (1) through (5) above for the immediately preceding five-calendar-year period. In compiling the information required in (1) and (3) above, it shall not be a violation ofthis order ifthe figures in (1) vary by one-quarter (4) of one percent (1 %) and the figures for (3) vary by one percent (1 if such variances. resulted from a good faith effort to accurately compile the required information.

It is further ordered That respondents maintain, and upon request make available to the Federal Trade Commission records substantiating the statistical information contained in each Important Information document then in use.

It is further ordered That, if any representations are made by the respondents, their salesmen, representatives or agents, either expressly or impliedly, orally or in writing, pertaining to any standards qualifications or characteristics which a person must meet or possess before respondents will agree to place such a person under contract photograph them or otberwise assist or render services to said person respondents shall maintain complete and detailed records as to such persons who have failed to meet or possess such standards, qualifications or characteristics, including their names, addresses, date of rejection, and the reason or reasons for their rejection by respondents. Such records shall be made available for examination and copying if necessary, by a duly authorized representative of the Federal Trade Commission, upon reasonable notice, during normal business hours. It further ordered That the respondents named in Part I of this order shall submit to respondents Monica Stuart and the William Modifying Order Schuller Agency, Inc., for their inspection and evaluation, copies of all written promotional or sales materials, including but not limited to sales solicitation letters, contract forms, brochures, flyers, and sales presentation scripts. Said respondents wil submit said materials to Monica Stuart and the Wiliam Schuller Agency, Inc., on a continuing basis whenever there is a change, revision or modification of any of the materials.

It is further ordered That respondents shall cease and desist from; a. Failing to furnish the buyer with a fully completed receipt or copy of any contract pertaining to such sale at the time of its execution, which is in the same language, e. , Spanish, as that principally used in the oral sales presentation and which shows the date of the transaction and contains the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the buyer or on the front page ofthe receipt if a contract is not used and in bold face type of a minimum size of 10 points, a statement in substantially the following form; YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EX- PLANATION OF THIS RIGHT.

b. Failing to furnish each buyer, at the time he signs the door-todoor sales contract or otherwise agrees to buy consumer goods or services from the seller, a completed form in duplicate, captioned Notice of Cancellation which shall be attached to the contract or receipt and easily detachable, and which shall contain in ten point bold face type the following information and statements in the same language Spanish, as that used in the contract; NOTICE OF CANCELLATION (enter the date of transaction) (Date) YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAY- MENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOW- ING RECEIPT BY THE SELLER OF YOUR CANCELLATION Modifying Order 107 F.

NOTICE AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.

IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE: OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUC- TIONS OF THE SELLER REGARDING THE RETURN SHIP. MENT OF THE GOODS AT THE SELLER'S EXPENSE AND RISK.

IF YOU DO MAKE THE GOODS AVAILABLETOTHE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT. (Amended November 1, 1973).

TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NO- TICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELE- AT (address of seller s placeGRAM, TO (Name of seller), business) NOT LATER THAN MIDNIGHT OF (Date) I HEREBY CANCEL THIS TRANSACTION.

(Date) (Buyer s signature) c. Failing, before furnishing copies ofthe Notice of Cancellation to the buyer, to complete both copies by entering the name of the seller, the address of the seller s place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

d. Including in any door-to-door contract or receipt any confession of judgment or any waiver of any of the rights to which the buyer is entitled under this Rule including specifically his right to cancel the sale in accordance with the provisions of this Rule. Modifying Order e. Failing to inform each buyer orally, at the time he signs the contract or purchases the goods or services, of his right to cancel. f. Misrepresenting in any manner the buyer s right to cancel. g. Failing or refusing to honor any valid notice of cancellation by a buyer and within 10 business days after the receipt of such notice to (i) refund all payments made under the contract or sale; (ii) return any goods or property traded in, in substantially as good condition as when received by the seller; (iii) cancel and return any negotiable instrument executed by the buyer in connection with the contract or sale and take any action necessary or appropriate to terminate promptly any security interest created in the transaction, h. Negotiating, transferring, sellng or assigning any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract was signed or the goods or services were purchased. i. Failing, within 10 business days of receipt of the buyer s notice of cancellation, to notify him whether the seller intends to repossess or to abandon any shipped or delivered goods. Provided, however That nothing contained in this order shall relieve respondents of any additional obligations respecting contracts required by federal law or the law of the state in which the contract is made. When such obligations are inconsistent, respondents can apply to the Commission for relieffrom this provision with respect to contracts executed in the state in which such different obligations are required. The Commission, upon a showing of inconsistency, shall make such modifications as may be warranted in the premises. It is ordered That William Schuller Agency, Inc., a corporation, its successors and assigns, and Monica Stuart, individually and as an offcer of said corporation, and respondents' offcers, agents, representatives and employees directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale and distribution of products or services in connection with the placement and employment of persons as models actors, actresses or entertainers in the commercial advertising, talent, modeling or entertainment industries, in or affecting commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing to consumers, directly or indirectly, orally or in writing, that:

1. A person s chances for selection by Monica Stuart, the William Schuller Agency, Inc. or by any person or agency, wil be aided, in- Modifying Order 107 FT.

creased or enhanced by entering into a contract with National Talent Associates, Inc.

2. Access to Monica Stuart or to the Wiliam Schuller Agency, Inc. is available only to persons who contract with National Talent Associates, Inc.

3. Monica Stuart or the Wiliam Schuller Agency, Inc., review photographs of only those persons who have contracted with National Talent Associates, Inc.

4. National Talent Associates, Inc. photographs other persons in a family in addition to the person whose name appears on its contract solely for the purpose of submitting said photographs to Monica Stuart of the William Schuller Agency, Inc. for her evaluation of their potential for the commercial advertising, modeling, talent or entertainment industries.

5. The remuneration received by Monica Stuart of the Wiliam Schuller Agency, Inc., in connection with her consideration and review of photographs submitted to her by National Talent Associates Inc., is derived solely from a percentage of the earnings of persons selected by her and placed under contract by the Wiliam Schuller Agency, Inc.

6. Natural color photographs of persons who contract with National Talent Associates, Inc. are submitted annually, for a five year period or for any period in excess ofthe period in which said photographs are submitted to Monica Stuart or to the William Schuller Agency, Inc. for her or their consideration and review without disclosing that unless the person comes back for rephotographing annually for a five year period, such person s photographs wil not be resubmitted to Monica Stuart or to the Wiliam Schuller Agency, Inc. It is further ordered That respondents Monica Stuart and William Schuller Agency, Inc. shall maintain complete and detailed records as to the number of persons whose photographs were submitted to them by any of the respondents set forth under Part I of the order herein and the number of such persons who have failed to meet or possess the standards, qualifications or characteristics which a person must meet or possess before respondents herein wil agree to place such a person under contract, or otherwise assist or render services to said person, including their names, place of residence, and month and year of rejection. Such records shall be made available for examination and copying if necessary by an authorized representative of the Federal Trade Commission, upon reasonable notice, during normal business hours.

It is further ordered That respondents Monica Stuart and William Schuller Agency, Inc. shall inspect and evaluate the written promotional and sales material submitted to them by respondents named in ...., . .. .. ......... ... . ., .n. ,-u.

Modifying Order Part I of this order. Within 30 days of their receipt of said materials respondents Monica Stuart and Wiliam Schuller Agency, Inc. shall notify said other respondents, in writing as to any comments, complaints they might have, or any corrections they might require, concerning any representations relating to them contained in the materials submitted. Monica Stuart and Willam Schuller Agency, Inc. shall simultaneously submit to the New York Regional Offce a copy of such notification to the respondents named in Part I of this Order.

It is further ordered, That respondents Monica Stuart and Wiliam Schuller Agency, Inc. shall notify the Federal Trade Commission, in writing, of any consumer complaints received by them concerning any of the respondents named in Part I of this order. Such notification shall be made to the New York Regional Offce within 30 days after receipt of the consumer complaint. This provision shall apply only to those complaints about representations by or practices ofthe respondents named in Part I which relate to respondents Monica Stuart and Wiliam Schuller Agency, Inc.

For the purposes of the following provisions of this order, unless otherwise specified, the term respondents shall inch ude each of the respondents named heretofore in this order. It is further ordered That respondents Wiliam Schuller Agency, Inc. and Monica Stuart shall forthwith deliver a copy of this order or a memorandum incorporating its provisions to all present and future employees engaged in the sale of said respondents' products or services and shall secure from each such person a signed statement acknowledging receipt of a copy of this order or the memorandum. It is further ordered That corporate respondents National Talent Associates, Inc. and individual respondents Sanford Storm and Jerome P. Ashfield shall forthwith deliver a copy of this order or a memorandum incorporating its provisions to all present and future salesmen or other employees engaged in the sale of said respondents products or services and shall secure from each such salesman or employee a signed statement acknowledging receipt of a copy of this order or the memorandum.

It is further ordered That respondent corporations shall forthwith distribute a copy of this order to each of their operating divisions. It is further ordered That each individual respondent shall promptly notify the Commission of any discontinuance of his or her present business or employment and of his or her afliliation with any new Modifying Order 107 F.

business or employment. Such notice shall include such respondent's current business address and a statement as to the nature of the business or employment in which he or she is engaged as well as a description of his or her duties and responsibilities. It is further ordered That corporate respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondents such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation) or dissolution of subsidiaries, or any other changes in the corporations which may affect compliance obligations arising out of this order. It is further ordered That the respondents shall within sixty days after service upon them of this order, fie with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

, , WYO. BOARD OF REGISTRATION IN PODIATRY Complaint