Eller, Jeanie

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IN THE MATTER OF JEANIE ELLER CONSENT ORDER, ETe., IN REGARD TO ALLEGED VIOLATION OF SEe. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3799. Complaint, Apri/6. 1998--Decision, April . 1998 This consent order prohibits, among other things, the Arizona-based respondent from making unsubstantiated claim in radio and television infomercials, about the extent of success of Jeanie Eller Action Reading in teaching individuals to read.

Appearances For the Commission: Russell Damtoft, Mary Tortorice, Charluta Pagar, Theresa McGrew and C. Steven Baker. For the respondent: Lewis Ross, Arent, Fox, Kintner, Plotkin & Kahn Washington, D, COMPLAINT The Federal Trade Commission, having reason to believe that Jeanie Eller, individually ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1, Respondent Jeanie Eller has manufactured, advertised, offered for sale, sold, and distributed products to the public, including Jeanie Eller s Action Reading, Individually or in concert with others, she participated in the acts or practices alleged in this complaint. Her residence is 42828 North 7th Avenue, Phoenix, Arzona. 2. Respondent entered into an agreement with Mega Systems Inc. , a corporation which creates and distributes program-length radio and television commercials which run for 30 minutes or less and fit within nonnal radio and television broadcasting time slots, The television commercials were and are broadcast on network independent and cable television stations throughout the United States, The radio commercials were and are broadcast on network and independent radio stations throughout the United States. In at least one of Mega Systems, Inc, ' s program-length television and radio commercials, respondent acts as the guest and promotes J canie Eller Action Reading, :::

JEANIE ELLER 675 674 Complaint 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commssion Act. 4, Respondent has created and disseminated advertisements for Jeanie Eller s Action Reading, including but not necessarily limited to the attached Exhibits A and B, These advertisements contain the following statements:

A. Trudeau: According to my guest, Jennie Eller, every single person -- if they can see, hear and talk -- can learn to read, guaranteed. She also claims that her revolutionary approach to teaching reading is easy, quick and works loa percent of the time, Eller That is the program I took back, We started using it in the Anchorage School District. Every child that went through it learned to read. And when you go through this program, you start at the beginning and you take every logical step right through it. And when you come out, you are a fluent independent reader. And I've put my 30 years of teaching credibility on the line, It absolutely is guaranteed to work, (BJut any child that you show them how that code works, you can t stop them from reading. They crack that code. And that code is the key, Trudeau: But you re talking about this secret code, The government says -- you were mentioning to me -- that teaches (sic) certain kids just can t read, and you saying that s hogwash.

Eller It is, It' s absolute hogwash. I' ve been teaching for 30 years and I've never had anyone not learn to read.

Trudeau: Because Ijust (sic) watching a show the other day on -- on -- on TV and they were saying, this guy s trying to read. He s tried -- he tried a phonics program himself. He -- he still can t read, He s frustrated, He thinks he s dumb, And they said -- they made the statement, the only way he can read is by hard, hard work and he still may never learn how to read, Eller No, that is absolutely not true, and I hope he s watching this show, because if he ll get this program, I guarantee you he ll learn to read, (Ijf you tell them what the words are, they know those words, They speak those words. The people that I taught to read on the Oprah Show, as soon as they could decode, decipher the newspaper, they knew those words. They were articulate people. They spoke the language, They understood the language. They just could not decipher the language, Absolutely, because it not only teaches the decoding, the phonics part, it teaches comprehension.

B, For Adults Easier and quicker for adults to learn, because most already know the vocabulary - they just need to learn how to "decode " written words and sente ces. Complaint 125 F.TC. Most people can complete the entire program and learn to read within 4-6 weeks, I. How can it improve comprehension? Even though we ve heard a lot of words before in conversation, a person who can read wouldn t recognize them. Action Reading teaches you how to read words for their meaning. (It s like putting a persons (sic) face to their name, when you have only spoken to them on the telephone.

6. Does Jeanie guarantee that she can teach anyone to read? Action Reading can teach anyone who can see, hear, think and talk to read... 14, How does it work? Jeanie s proven, phonics based method incorporates all of the learning senses through art, games, body movements, and music to create an active and entertaining experience that doesn t seem like work. Learning to read has been compared to cracking a code. Once you know the secret s easy to decode a sentence. Action Reading teaches the sounds and patterns of our language and how to use them for decoding, (Exhibit B; Telephone Sales Script.) 5. Through the means described in paragraph four, respondent has represented, expressly or by implication, that Jeanie Eller s Action Reading is successful in teaching reading 100% of the time, 6, Through the means described in paragraph four, respondent has represented, expressly or by implication, that she possessed and relied upon a reasonable basis that substantiated the representation set forth in paragraph five, at the time the representation was made, 7, In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representation set forth in paragraph five, at the time the representation was made. Therefore the representation set forth in paragraph six was, and is, false or misleading.

8, The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Sections Sea) of the Federal Trade Commssion Act.

Commssioner Thompson and Commssioner Swindle not paricipating.

: .

JEANIE ELLER 677 674 Complaint EXHIBIT A 3231516 FEDERA TRAE COMMISSION , 'I I FTC MATTER NO, 942-3278 131/ TITLE:

JEAN ELLER' S ACTION READING TELEVISION jJ\iFOMERCIAL PAGES: 1 THOUGH:4 :":1 IS/ C cC !..I:YT IT131': J TI:'J:" C::."!.\:''r :::;::1:3:::

El. 2 CC Urr . _ _.. ;:

Complaint 125 FTC. EXHIBIT A 2RQ EED1 M"NO!JNCER; 7he follow ng is a paid commercial program brought to yeu by Mega Systems.

MR. TRu:E.U: Thanks again for watching. m Kevin Trudeau and this another edition 0: ria Closer Look" Over one million children graduate from high school each year functionally illiterate. That' 5 what the U. S. Government says. They simply can' t read. Millions of adults, many of whom of are watching this show right now, can t read.

Accordir.g to my guest Jeanie Eller, every single person -- if they can see, ear and talk can learn to read, guaranteed. She also claims that her revolutionary approach to teaching reading is easy, quick, and works 100 percent of the time.

Jeanie, thanks for being my guest today, :-S. ELLER: 7hank you, Kevin. It I S a real honcr, MR. TRUDEAU: Yes, we were having some fun before this show and I said, they can t read in a matter of hours, right? MS. E:"LER: That' s right. You sound like my father. One time he said, if you re so smart, why don t you jus: teach them to read in 24 hours.

MR. T?.L"'EAU: That' 5 rig!'.

" i :vS, ELLER: ! said, well, if I cculd do i: straight =0\.2.:: SUi: !ncs:' people w u:cr. : te able to c;c - T - :,OU::s. : t:,ey ca:' do as little as a ;-1'C:-::-. ::: 0,_ :;::: :::. :. , : : JEANIE ELLER 679 674 Complaint EXHIBIT A weeks.

MR. TRUDEAU; But I now, I have to ask you a quest Eefore we talk about your program I know that you re the, ah, tbe spokesperson or the founder of this home study course, called Action Reading which teaches kids and adults 1:ow to read at 1 "

their home- But is there a real problem today with illiteracy, \"ith kids a:ld adults? MS. SLLER : Oh, absolutely. In fact, a year ago, in 1993 the came out with research that shewed tn""t 90 mi:'lior: II 10 II =.dults are functionally illiterate. ''II MR. 'irl"DEAU: Ninety million. 121 MS. ELLER: That is half our population. 13 r MR. TRL"DEAU: I was goi to say, how many people are 141 there in America? MS. ELLER: Yeah, that' s half of our ad lt papulation. illitera'e -- : i And wha' 'hey define as func'ionally MR. TRUDEAU: Right.

MS. ELLER; - is, they cannot read a newspaper. MR. TRL"DEAU: Uh- huh (yes).

MS. ELLER: They cannot go to the grcce stare and shop by the names of products. They have to look at the picture to see what' in the container. They can t read a bus schedule or figure cut a job application or, you know, fil: out a ferm. T::ey cer:ai:11;r ca:1nct read the Ccnsti: tion t:-. i:. :.i:"l c:: . ""= :;'s:.-=;' -:y =-2",:': ._: ;;,, : .: .

Complaint 125 F.T. EXHIBIT A function in this society.

MR. TRu'"EAU: Wait a minute. Who says half of our ;J people h ah, half of the people in America can t read? MS. ELLER: This was a study that was -- that came out. It was on all the major television news. It was in USA Today" MR. TRUDEAU; huh (yes).

MS. ELLER: It was actually September of ' 93. MR. TRUDEAU: Uh- huh (yes).

MS. ELLER: And it was published by the United States Department of Education.

And, fer example, you know, we don t realize that people are out there who can t read and what -- what a hanciicap that is.

I was do ng a radio show and a man called in. And he said, I want to tell you what it' 5 like. I went to the groc8Yy store and I bought this container that had a pictu e of fried chi.cken. Took it home, you know the mouth was watering, all ready to pop it in the microwave and eat the fried chic en. A.- I opened it up and it was this white stuff that yeu cook the chicken in. called shortening.

MR. TRUDEAU; Ar.hh.

M5. ELLER; Yeu see, that' s how they have to li.ve 1, 'T" ey hav'" to ely o pi.cture c es. They may be i ::es:..;:.::Oi:-. I' ycu ::e s:':tlng rl e::e w:': e -- 1 Yo\. k:;cw --d.

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JEANIE ELLER 681 674 Complaint EXHIBIT A MS. ELLER: - and they say, well, what are you going to have? What looks good to you? That I s the way people have to fur.c ion they hide it. They -- . TRUDEAU: It' s like a secre M.=. ELLER: - - they are embarrassed. Absolutely. Ard they think it' s their fault. They re embarrassed. They th.:nk 7 they I ve done something wrong or they think they have a learr.ing Hal f f our adul t 8 disability. It' s really a tragic situation. 9 population.

MR. TRUDEAU: Well - - well, how do they go through schcol and graduate and set a diplo- -- now half or these people have diplomas I right? I mean, a lot of these people -- MS, ELLER: Oh, yes -- MR, TRUDEAU: -- have diplomas.

MS. ELLER: - - many of them. And they I ve all MR. TRUDEAU: How do they -- :-S. ELLER: -- attended school.

MR, TRUDEAU: -- how -- how -- how do they graduate 19 high school without learni g how to read? I don t understand. MS. ELLER: Well, see -- MR. TRUDEAU: How do they do homework? How do they -- MS. ELLER; -- ckay, here s what happe Kevi the 5chccls. ve changed the way we teach readi s i MR. TR.:""DE.G; O:,a;;.

2 - . . ..

Complaint 125 FTC. EXHIBIT A that we se n t e schools does not teac the children :0 read in first grade, as it did wr.e:1 ! was a child. "!R. TRUDEAU; Oh, I ca se I went to -- ::0 sd:ool, reme er in the first grade, we had the ptonics, ah -- MS. E:LER ; Okay.

MR. TRL'"EAU; -- bock.

MS. ELLER; Exactly. :hat I 5 what you have to have to learn an alphabetic language. And English s an al habetic language.

MR. TRUDEAU: Right.

MS. ELLER; You cannot memorize it, by sight, as if it were Chinese.

1--"1. TRUDEAU: Well, aren I t learning -- aren t -are!: ' t they being taught phonics now? MS. ELLER: Noao. No, no, nc.

MR. TRUDEAU: They re not being taught -- MS. ELLER: No.

MR. TRuLJEAU; - - phonics in school? MS. ELLER: No. Fifteen percent of the schools in erica are using i tensive, systematic direct instruct on 0: phon:.cs :.n: rst g::ade. as the research f::om the 'J:1:.tec. S:a:es Depart e:1t of Education tells them they should. Eigr. five ;:erc:e'::: c: ::he sc cc:s in A erica are net dc.:r.g t:,at. ey a=-:: C :- c,. -,..::r"2;. c:::=e o::::s cy s:.=-ht wr:a: 0; ' .u - - - - ---- :.:.::, '3,, .7a:-. ::;-e 2ce::3 . , , : JEANIE ELLER 683 674 Complaint EXHIBIT A MR. TRUDEAU: Right, the look -- isn t that the " looksee " rr.ethod? MS. ELLER: "Look-say, " yes.

MR. ':Rtwa.U: Okay, "look-say.

MS. ELLER: I call it ' lock and guess.

MR. TRl.i'DEAU: Right. (La' ''s:r:;:. ) MS. ELLER; They call it "lo::!: and say. 1-,'211, the sJn call -- do that is because MR. TRL"DE. Yeah.

MS. ELLER: -- after teac::i.1g schcol for 30 years and watch:" ing these children look at the p.:cc:ure and then jl.st guess at the words I call i: "look and g"es MR. TRADE-t. Sure.

MS. ELLER: Okay. Then, there I 5 also something in the scheols r.ow called "whale language.

MR. TRUDEAU: Uh-huh (yes).

MS. ELLER; And in that method, the teachers are told to surround the children with written information and read stories to the child en that are repetitious and predic able. The children will memorize them. That' s .- that' s up your alley. MR. TRUDEAU: Right, right.

MS. ELLER: And they will figu e the system out an their awn. And if they don' t figure it out first grade, den ':4 I worry abol:t it. Pass t:1.em Cr'. o second grace. :f ':!".ey c?n :: et.: ;;y ':::1.:"::-: s ': :c ",:::1C-=. I ,, . :: _.. .. ._.. ::: Complaint 125 F.TC. EXHIBIT A You see, what happe s is, the children don t fig re it out. ! train teachers allover the cou try. I get calls to come into high schools where 90 percent of the kids in the high school cannot read their textbooks. They have not figured the system out on their own. And it I 5 very simple to show them how the system works.

, what will happen is, I will train the teachers. will show the teachers hew to teach reading. They wili stop teaching subjects for six weeks, teach all the kids to read, then 10 go back to their subjects, to their textbooks. It' s that easy to correct.

But the problem is, the teachers are not being given the right information in their training. They don I t have the right tools. It wouldn' t matter how hard they workedi with the wrong information, they are not going to be able to teach the children to read.

So, to answer your question, r.ow do they get all the way through, graduate -- MR. TRUDEAU: Yeah, right.

MS. ELLER: - - they get socially promoted right out the door.

MR. TRUDEAU: d they never lear how to read. S. ELLE:R: Last year, we g ated two- and talf m.:ll.:c:: ki.ss ccl, ;1a:::c:,.'",i.c.e. Cne ;r.:ll.:c C: :::.=- CO. ;:3:-:-. . , ,, _.. : . . . : : . JEANIE ELLER 685 674 Complaint EXHIBIT A even read their own diplomas.

MJL TRUDEAU: I -- that -- that -- it' incredible to , because this must, obviously, dramatically, adversely impact these kids self esteem self- confidence and income-earning ability, right? MS. ELLER: It I S also impacting all e rest of us. 7:1 Because, you 2e, here' s what h ppens. They re dicting -- t 811 Vnited States Dep rtment of Educction -. they' dicting :; I if we don I t c::rrect this probL m -- I'J II MR. TRUDEAU: Uh- huh (yes) MS. EI,LER: -- by the ar 2000, we will have1111 .1= nation that will be functicn lly illiterate. Ii two-thirds of 13 Now, how can the one-third of us who work and sl.tJport all these, 1 ah, subsidized programs h MR. TRUDEAU: Right.15 I M5. ELLER: - - support the two- thirds who don heading for a big collapse.

Also, what you ve got to realize is that illiteracy is the best form of censorship ther2 is. You don I t have to ban the books, you don t have burn the bocks, if nobody can read the beaks.

You cannot be a participating member of this society unless you are lite ate.

. TF.:'i"T:";L': New -- t 2: -- t 3t' s a ve ;::3:". C:::C_ .. ; : :, : ::. ; . Complaint 125 FTC. EXHIBIT A MS. ELLER: Absolutely.

:1R. TRUDEAU; New, le me ask yeu a es: on. You -you actually put toget er_ or -- or you have the eacher on t;;ese at.dio tapes, called "Action Readir.

M5. ELLER; That. s me.

MR. TRUDEAU: Okay, that I 5 you. Ar.d tell me a little 7 bit about that. How did you get involved? How did you start this? MS. ELLER: Well, I actually have -- "'.R. TRUDEAU; I mean, you .- you seem ve passionate about this whole program of reading.

MS. ELLER: ..ell, I absolutely am, because I have two little baby granddaughters that I do not want to grow up n the ) kir.d of society that I I m seeing today. And what we I re discovering is that a lot of the 16 problems in society are caused by illiteracy. Eighty- five 17 pe cen of the kids who go through juveni:e court are illite ate. So, if you can t read, what are you going to do? MR. TRUDEAU: Right.

MS. ELLER: What kind of a job are you going to get? MR. TRUDEAU: Rig:"t.

MS. EL:'E?.: You see - - a d especial:y i this :3! csica: wcr:d. Sa, we have a real se :cus ?rcble '"-2-:' aS5: e a=c : = a=: a::! h3 e: = s:=='.es ;.!::. .. . ::_ ..: , . . JEANIE ELLER 687 674 Complaint EXHIBIT A :-. 7RUDEAU: Right.

MS. ELLE:R: My first story is a pe sonal stery. MR. TRUDEAU; Uh-huh (yes).

MS. ELLER; , my first son, when he was five years aid, started first grade. He w s O e of these D cember babies. MR. T tTEAU: Right.

MS. ELLER: Okay, he did not learn to ead in school. I This was my first'=orn. MY mest p::ecicus thing i:1 ti' e world. 1 trusted him to the publ c school.

MR. TRt1JEAU: The public school system, okay. 111 MS. ELL::R: And I w s ac:ually doing my student teaching that year. So, my little patrick di ' t learn to read. But they passed him to second grade. Could I t re d a word. So, I said - MR. TRUDEAU: What .- what were they teaching? MS. ELL2R: They were teaching Dick and Jane. MR. 7RUDEAU: Dick and Jar, MS. ELLER: Sight readir.

MR. 7RUDEAU: Sight reading, okay.

MS. ELLER; Trying to get him to memorize -- " rig!". ::, okay. MR. ':RUDEAU; Lock.guess-say, MS. E:.:.ER; -- memorize ha:: a mil:io words ir. English by s':g MR. TRr ;:;rJ F.ig:::..

" I ::: : :.::

Complain! 125 F.TC. EXHIBIT A MR. TRUDEAU; Right.

MS. ELLER: Okay, he cried, he was very upset, he didn' t like school. Of course; he couldr. ' t do a ything. MR. TRUDEAU: Right.

M$. ELL::R; So, I said t6 him, as mothers dc, you know 6 well Patrick, we can work really hard all summer and Mo my will 7 teach you to read. Or, next year I you can go back and start aga n in first grade.

So, he chose, of COUTse, as Mommy intended, to start 10 again. And that year, I put him in a classroom with a teacher that I knew was using intensive, systematic phonics. At the end of that year in first grade . he tested twelfth grade in reading level. There was nothing -- MR. TRUDEAU: elfth grade? MS. ELLER; -- wrong my child. It was the method that the first teacher had used. She didn' t have the right information.

But that' s not the end of the story.

MR. TRUDEAU: Okay.

MS. ELLER: Okay. : have another son who s 15 months younger.

R. TRL'DE.U: L'r-. huh (yes).

MS. ELLZR: Ckay. The :lex: year :r.at sc s':Grte= :':::5: q::ace. !c Patrick was cw S2C:;;'. s:::",c.e. :: :r.:-= ee.,, ::: ':2:100 = s:e: a c .: ::: C= 2 .: 2 5C .. y? : .., ::. :_ JEANIE ELLER 689 674 Complaint EXHIBIT A conference. And: ' m thinking, what in the devil could he have done the first week of school? I mean, you kr.ow -- MR, TRUDEAU; He I s already trouble right? MS. ELLER; you know what can this kid have done? and the teacr.e.r says me, "Has Mitch been retained? " And:: sa.id, No, wr. And she said MR. TRU:::U: Yeu mean, held back? MS. ELL Yeah.

MR. TRU!:.U; okay.

r 5 so big and MS. EL!.::R: Why? And s:-e said, "Weil, he =eads so well. I said, oh, ::early?" She 52-ii, Didn I t you kn::w he could read?" I said, No. " And I thought, yeah, right. You probably handed him "Peter Pan " or "Peter Rabbit" -- MR. 7RUDEAU: Sure.

MS. ELL::R: -- or one of the stories that e has memorized, which is what little children do. They ll memorize those stories. d if you miss a word, boy, they catch you. So I went home thinking, you now this is what had ha ppened . And I said to him, Mitch, can you read?" And he goes Yup. And I said, " Well, read to Mommy. MR. TRL":EAU: Yeah.

MS. EI.LER: Ar.d I expec ed im to go i his t:edrccm e - get o:'. of tr.e stories I read to the at nls No. MR. l.-=::_ lii1J1'.e the ?cch" cr scmet S"r.t ? :.s 2 = . .. , .. .. . Complaint 125 F.TC. EXHIBIT A out this book - - book by Pearl S. Buck, he opens, it l.p 3:1d r. starts to read to me. A.'1d ! said, "I didn' t know you could read. Eow did you lear:1 to read?" And he goes Pat taught me. And I said, Whoa, wtoa, wait a mi:l1:.te. Pat" -. and Pat was six -- MR. TRUDEAU: Right.

MS. ELLER: taught Mitch, who was five, to read. MR. TRL'"EAU; A six- year-old is teaching the five yet:r-old.

MS. ELLER: And I said, Wr.en did Pat teach you to read?" And he said, "You ;':1010 , Mom, every day he brings his papers home. He erases tl".em. We play school. A."1d he " 1:e' " the teacher. "

So, the six- year-old was erasing his aterials and teaching it over again to the five-year-old. , at that point, I said, Wait a mir.l.te. All :.he stuff they ve been telling me in the college of education -about hew half the kids can' t learn to read, or a fourth of the kids can t lea to read, or you have te de this, that, a:1d the other - - is baloney. If a six-year-old, with the right information, can teach a five-year o:d to read, then the something that they re not telli:1g us the college of e::ucation.

::3 MR. ':R:'TDEAU; ell, is i:. because ycu child::e ere :;: ::.e::? :nee:: a::2:: :'r. e::e some kics :us: sma::te:: 2 = 2Y e::e ,,::: . , : ::: ;:::: _.. , .. .. .. . JEANIE ELLER 691 674 Complaint EXHIBIT A laugh. ) MR. 7R'L"DEAU: Okay.

MS. ELi.ER; In fact, r have four, and hey ' d all like to think that they r re smarter than Mother. Actual ly -- actually, they are. My cr.ildr n are smarter than I am. So, that' s -brings up a really good point I Kevin.

The children today are not dumb. That ' s net why half of them can t read. That I 5 not why half the American public is illiterate. :t is because we have changed the method we use the schools.

Now, to get to the other part of yours -- of your, ah, question, why am I so passionate about this? Well, in 1974, I was teaching school in Alaska. And every one of my first graders could read the newspaper. They were writing letters to Congress. They were writing letters to the soldiers in Vietnam, getting back answers, writing again:l.

MR. TRUDEAU: Yeah.

:-S. ELLER: Urn, the superintendent came in and he said, Ckay, there s no other teacher in all the 54 schools that are that' s doing t is. You I re going to train all the teachers. And I went "M! Do you see those 47 boxes? I mean, every night I in there to decide what I' m going to do. Come on. surely there s a program that' s already published that dces what I do. :! :e ::e 5 nct :hat uni It' 5 what Scod te3cr.ers have :'-5;: t2Cic::':.

. ,.j . .._ Complaint 125 P.T. EXHIBIT A the comprehension and making it fun.

So, he finally said, "Okay. going to send you outside" - that' s what they call the rest of the United States - MR. TRUDEAU; Right.

MS. ELLER: outside of Alaska. And I want you to look at every published program in America. , I looked. For three months, I visited schools all 9 over and I looked at every reading program that was being used in the schools. Ar.d I found a program that was better than what I did. It was called "Action Reading. It was developed by a high school teacher in Newark, New Jersey, who was frustrated tha high school kids couldn' t read.

MR. TRUDEAU: Right.

MS. ELLER: Moved down. grade by grade, developed this program in first grade, and it was all reusable and it all fit in 17 o:re box. My husband loved it. Didn' t have to move 47 boxes an:yore.

That i the program I took back. We started using in the chorage School District. Every child that went through it learned to read. It was phenomenal.

And then what happened in my -- in my particular case .:s, the principal came in at the e c cf the year and he said, x'::: :;::2c:e::s24! " Guess . at, J"eE.::.:e, we ha.ve all t:-.ese fi.:th ar. , 'I . - ::.=.3C::1S E.;::: : CE.:". :==:0::. - !I ' . :_.,, . . JEANIE ELLER 693 674 Complaint EXHIBIT A Next year, you have to teach those fifth and sixth graders. Well, I found that I could do that in a semester, instead of a whole year.

MR. TRUDEAU: Uh- huh (yes).

ME. ELLER: Then, the high schoal principal said what?"

11 "Guess MR. '!RL'DEAU: Guess :hat? MS. E:" ER: "We nee to orrow her, b(2.;au e we have 9 II ;.ids in the high school who C2.:-. read. MR. TRADE.U: Yeah.

'" 11 MS. ::"LER: I found cu': you could do .i. in six week I 1ec'use t e 0 e t e person -- MR. T:"UDEAU: The quicker they can lea it. MS. E:-LER: Right.

MR. TRUDEAU: That P S right.

MS. E:LLER: The more they can absorb, plus they have all the small motor skills. They' ve already got the -- the, ah, auditory/visual connection. There s a lot of things that -- that you develop -- MR. TRUDEAU: Right.

MS. ELLER: - - as you go along. And then I started doing summer school and then summer camps, whe e I taught kids ead in two weeks. And, eventually, I worked with Dr. C ratan, the author of t c':io:1 Reacing, " anc we c.ec.:ced, r:ecac:se we :;:::: so ,, :..:. ::--:"7. ;=,=;:"2 . , . . . _._.. .. ... _., : ::: Complaint 125 F.TC. EXHIBIT A can afford your camp. I can t send my child. MR. TRtI'"EAU: Right.

MS. ELLER: What can you send me?"

MR. TRUDEAU: Right.

MS. ELLER: And they cculdn' t afford the scheol 6 program, even though it' s very inexpensive and reusable, (hey 7 wanted something they could afford, something they kr.ew would work.

So, ! racked my brain, I prayed. Finally, we decided we r d do the home program, so we did it. With audio tapes, I do the teaching en the tape.

MR. RUDEAU: Right, right.

MS. ELLER: We have a video that helps people, gives them an overview I shows them where we got our system of reading and writing, our alphabet, the whole thing. Explains how the 16 ..hole thing works. d also shows them preschoolers and -- and elementary children and high school kids a d college kids and senior citizens -- MR. TRUDEAU; Right.

MS. ELLER; . - who ve learned to read with this program.

Ard when you go through this program art at the take eve :ogical step ris:-:t through i. t. A.-:c 1 whebeSinningyou ccaDde yoo, yo a flue oe?e t r2 :c I:' ;:r2 .:.::':':: - ! ::: : : JEANIE ELLER 695 674 Complaint EXHIBIT A absolutely is aranteed to work. MR. TRUDEAU: Well, if you re watching right now and you do want information on the program Act.ion Reading i::' a home study course. It' fun and easy to go tr ough. It just takes a few short hours.

d what age level can go tr ough it? MS. E:LER: Well, parents cad use it with preschoolers. MR. TRUDEAU: Right.

MS. ELLER: Anyone eight and above can do it allan their own.

MR. TRL"DEAU: Eight and above can go through it, and pres hoolers wi th their parents.

Call the number on the screen if you want more information on Jeanie ' 5 program. And we did work out a special arrangement. You will receive a substantial discount if I you do call today, on the program.

Now, let' s talk about, you said, age levels. You mentioned, as, ah, eight and above ca go through it on their own. There are other phonics programs on the market - - some of them are really expensive -- and I thought some of them were pretty good.

What I s the difference be ween your phe ics program and same af the either ones that people may be familiar with? MS. Ei.LER; Ckay, 1:1".e::" are t::e ::e se e geod C! I ccc, ;=-2 :-arr..s C'..I;: =::e: 2: Nc::k e:::c. S2r:'= =r: :; ..: :: : :: :: : . .. Complaint 125 F.TC. EXHIBIT A used in schools. And those programs a e comprehensive. Unfortu ately I there have been a - - a nUIT er programs that have been made available to the public that are not 4 very comprehensive. They start out by teaching the - - the person the ames of the letters and the sounds, and then they go right to - - well, open the workbook and read the sentences. And that' s, like, wait, wait, wait. How do I get from just saying letter names and sounds to reading sentences; So, they -- they have a big gap -- MR. TRUDEAU; Right.

M5. ELLER: - - missing.

XR. TRL'DEAU; Okay.

S. ELLER; So, they re not teaching the comprehension. They re not act- -- actually teaching how the system of English works. They I re not teaching the whole systematic th ng. The program that ! use, first of all, it' s very inexpens ve. It I S reusable. You -- you might need to get another workbook, but eve thing else - - the tapes you can use over with - - if you have other children in your family. Yeu know, if you want to share it with your church or MR. TRuuEAU: Right, uh- huh (yes).

MS. ELLER: - something. Ah, t-he vldec, of cou::se, 23 I you C2:1 share with your =friends and neig ors. ;''1d the a.:T, a!"e phencrr.e:'al, cec2.L:.52 :o:1 " I see 2:-_ ..st. ::::::"':. 2 ;:ec:= ;::"3.::::-. ::".e7l' se: :: . , . , . . JEANIE ELLER 697 674 Complaint EXHIBIT A the game idea that they clar. ' t realize they ' re doi g drill. So, what -- what the dif:ere ce is, is tr.at we take every step. First of all, we explain where we got our system of reading and writing. And most teachers don I t know this. MR. TRt,'DEAU: Right.

MS. ELLER: They d t realize that those letters, those symols, come from pic raphs. They actually represented something. Li:-;:e the "A" re ::'2sented a bull, the head of a bull. then it t:came just the l nes of that. ; d then, event ly, 11 And 10 II the Phoenicians developed th alphabet. So, it changed from being a meaning- bearing symol to a sound- ing symol. M:. TRUDEAU: Uh- ::I.h (yes) MS. :LLER: And th t was the invention af the alphabet. MR. TRUDEAU; Right r..:. ELLER; And that' 5 the concept that teachers 2 not given. y don T t realize that you can' emorize half a million words by sight. You ve got to learn that code. And so, we explain all that and then we show th m how to put those sounds together. And we do not start by teaching them the names of the letters. Everybody I' ve ever worked with, whether they were little children or adults, al eady k ows the ABCs.

MR. TRL'"EA'J: .sure.

'15. ELL::R' But A- C dce5 ' t mak were: . T does c:: :;,=':-;2 2. 'cr::.

! , _ g . ::. ,, _. : . Complaint 125 F.TC. EXHIBIT A word.

MR. TRUDEA:T: Rigr.

MS. EL:'ER: But if I show you the sounds and go " Kuhaah-tuh" and you go left to right, because in glish you can only read left to right; you can r t go right to left, like you do in Hebrew.

MR. TRUDEAU: Right.

MS. ELLER: :'hen you go, " Kuh- aar. -tlh" and the word cat" comes right out of your mouth. As it does with y little granddaughter, who P s only two-and- half. MR. TRUDEAU: Two-and-a-half.

MS. ELLER: Two-and-a- half. she s already scundir.g out words. But, see, what happened Sl her mother and father did not teach her the AECs. When she looks at an " they don t call it an " They call it L'1e " Mommy" letter, mah-mah-man" . "'od there the " Daddy, the "dah- dah- dah" And her le ter is the same as yours, the "kah- kah- kah" letter. MR. TRUDEAU: Right, right.

MS. ELLER; So, she 'll look at something and she ll go, "dah-o- Grandma, that' s dog. She doesn t go D- G, G, D- G, because that doesn t make a werd.

MR. ':RUDEAU: lr,te::esti:Jg.

M5. ELLE So -- ar.e, -- and it is:1 ' t that s::e ' s :'::e YOll k;-c:.. '"e cs:: jr:.ll:.a:-. i;: :::-e w::rld, 5:'"= ' s ::- :.s: - h ;,cs: c:::.':l:.a::::

.. :: . : :::. ::_ .. . .... :: . JEANIE ELLER 699 674 Complaint EXHIBIT A But - - but, really, any child that you s ow them how that code works, you can t stop them from readir.g. Tr.ey c:-ack tha t code. And that cede is the key. When! taught the four illiterate adults to read in two weeks for the Oprah Winfrey Show -- :-. TRUDEAU; Uh- huh (yes) MS. ELLER: - - one of the ladies, the third day - - this was a lady who was 30 years old. She had never learned to read. dropped out of schoel in eighth grade, when she was pregnant with the first of six children. Just a tragic, tragic story. Eeen on d::ugs. Been on welfare. Had her children removed. Everything. Wanted desperately to learn to read, get her children back, and had -- you know, had taken care 0: her drug problem.

MR. TRUDEAU: Right.

M5. ELLER; :he third day, she said Jeanie, I a ways knew theye was a secret cede that nobody showed me. You see, if you don t knew that there s an alphabetic system i: nobody shows you that, it is a secret. MR. TRUDEAU: 50 -s . ELLER: If you don t knew theye I S a s.i ple way to do it.

TRL'"EAU: 50, :-.011 yeu weye o Opyah. "15. ::L:"E Yes.

:'CL: ',.e::,:

, .:: :. :: , y; ; : ;:. _ . . Complaint 125 F.TC. EXHIBIT A do, whc" 400 radic appearances a year, or som€thi.n:j? MS. ELLER: Oh, I' ve done about 1, 500.

MR. TRUDEAU: Okay, yadio shows and you I ve be, on television and written up n newspapers, the program. But you re talking about this secret code. government says - you were mentioning to me -- that teaches certain kids just can t read, and you re saying that' s to wash. MS. ELLER: It is. It' s absol te hogwash ve been teaching for 30 years and I r ve never had anyone not learn to read.

MR. TRUDEAU: Because I just watching a show the other day on - on - - on TV and they were saying, this guy ' trying read. ' 5 tried - - he tried a phonics program himself. He he still can t read. ' s frost ated. He thinks he t s dumb. And they said - - they made the statement, the er.ly way he can read is by hard, hard work, and he sti l may never learn how to read.

MS. ELLER: No, that is absolutely not t e, and I hope s watching this show, because if he ll get this program, I gua antee you he ll learn to read. I - - I knew what you I re talking about.

What they do is, they sta t ty teaching t e pe=son the ABCs.

.: I T:;:"':::. :J. ':"l- h'..h :.-es: e::. 2'" -:2- ___ . .. : .. ,,: . .. JEANIE ELLER 701 674 Complaint EXHIBIT A sight words. Now, tha:' 5 exactly whac: tr.e " Dick and Jane methodology was based on, that you memor ze four hundred of the most frequently used words in first grade. hat' 5 called first grade level of reading.

MR. TRUDEAU: Right.

MS. ELLER; By the time you get to sixth grade, you I re supposed to have memorized six -- ah, three thousand of the most common words in English. That I 5 called sixth grade level of reading.

Newspapers are now written at sixth grade level. They use the same three thousand -- MR, TRUDEAU: Three thousand.

MS. ELLER; - - wards over and over -- MR. TRtJ'"EAU: Over and ever, okay.

MS. ELLER: -- ad nauseam. Urn, and half the A er:can people cannot read it. The problem is, adults start aut and they memorize maybe 15 wards, maybe 100 woyds, maybe 200 werds. Eut they cannet pick up a newspaper and read any hing -- MR. TRUDEAU: Right.

MS. ELLER: - - because there I s always three or :our words in t e sentence that they den' ow what it means. Ar. what adul s say to me is, t loe s like the blar.k r. h bla:1k are go g to the blank -- MR. ".T;EAU' ell :5:- ' t :0:

, . . ::. :, , .. , .. .. Complaint 125 F.T. EXHIBIT A words are.

!-.R. TRUDEAU: - - but isn I t that vocabulary? Or is it - MS. ELLER: No, no -- MR. TRuuEAU: -- different ttan frc MS. EL:'ER; -- because if you - - i: you tell ttem wha the words are I they know those wares. They speak those words. The people that I t::ught to read cn the Oprah Show .o5 scon as t.h;:y could decode I decipher the ne;'.3;Japer, they kr.e" t.hose words. They were articulate people. They spoke the languace. They understood the la guage. They just could not decip er the language.

MR. TRL'"EAU: , they -- if you told them what the ;.ord was, they knew the meaning.

MS. E:"LER: Oh, yes. Manj" of L'1em -- 1 t MR. TRUDEAU: But they just cauIdn' t . - they ciidn ow wha t the wares said.

MS. ELLER; They couldn' t decode it for themse:ves, MR. TRtEEAU; Now -- MS. ELLER; So, that' s the problem.

MR, TRUD:EU; -- r. is your program self-:utor al? Because this is a bis J.issue, A lot 0: people out there -- - boug s program for my brother I s 50 ..:'1 Jy0:5) : I Decause ::L:":: :;h- :C".. ...-: c c; "..,, . :: . , ::. JEANIE ELLER 703 674 Complaint EXHIBIT A years old. I tr.ought he - - I wa c go, because he ' 5 going to be eigt.t. Well, if he can t go through it himself at least I know my brother will walk him through :he program. For an eight- year old and above, can they go through this program themselves? MS. E:"LER; Absolutely.

M.: . TRlJDE:U; Will they r.ave fun doing it? MS. ELLER: Absolutely. Because (both lac.ghJ -- MR. TRUDEAU: Okay.

MS. ELLER; - this program is multi- sensoyY. That I 5 why it' 5 called " Actior. Reading" Because when Dr. Curatan first started developing this, at first grade, first, he fo d out that the children were all TV babies. That means, if you didn I t show them a picture, they I t hear you. MR. TRUDEAU; Right.

MS. ELI.ER: So, he had to work on their a di tory skills. , the -- what we do with this program is, we get people to understand that words are just sourds t at you can put together and take apart.

So, in English, we have 26 letters. We have 44 sounds we use when we talk. And we have 70 ways to wri te down those 44 s01.:r.ds. 7hat' s called the code. That I s the alphabetic code. ca:l the phonograms. Written forms of the scu ds. 7,,CDEAU. ay .

\c.; ae _._, : . .. .. Complaint 125 FTC. EXHIBIT A read anything English. Nolo when T first started this battle, I call it nolo MR. TRUDEAU: Well, hold - old on one second befD you go on, because 1 want people to know, if you do wa t to call and get information cn Jeanie I 5 program, which! highly I s on recommend, pick up your phone and call the 800 number that the screen.

If -. if you want to read yourself. I f you know somebody -- ah, as I mentioned, I gave this to my - . my brot s, ah, 50n, to learn how to read. And it' s really the most co preher.sive easies': I fastest way that anyone can learn how to read.

MS. ELLER; Absolutely.

MR. TRL'DEAU: this correct? MS. ELL.ER: Absolutely, because not only teaches the decoding, the phonics part, it teaches comprehe sion. It teaches the spelli g patterns of English. And it teaches you penma ship -- good, old handwriting.

MR. TRUDEAU: You know, I was just -- I was -- I get notes in from, ah, people. They write things to me. And I look and say, where do these kids learn how to write? They cat; ' t even write.

MS. EL:':: We I re r:ot teaching hand.writ::::S' .:r. schcc::s a:1 or= '2.:.:. L..

..

JEANIE ELLER 705 674 Complaint EXHIBIT A a:Jswey.

MS. ELLER: d we also aren t teaching spelling in the schools anymore, because they have a new philosophy that, if you correct their spelling, you ll stifle their creativity; they won war. t to wri te.

MR. TRt'DEAU: Urn -- MS. ELLER: Sot:::ds crazy to nor;nal people, but that I what teachers are being teld.

. TRUDEAU: Is it - does it -. now if yeu learn how to read. Let I S take a child. Basically, if he becomes an affluent -- how did you pronounce that? Af-- MS. ELLER; Fluent, not affluent.

MR. ':RUDE.U; Fl' .lent, fluent.

MS. ELLER: Affluent is rich. (Both laugh. MR. TRUDEAU: Well, if they become fluent, will they become affluent? MS. ELLER; Well they have the ability the:!. MR. TRL'DEAU: But will - - but now - - now ycu know this I because you ve been in the teaching setting. If a child can read -- and if a parent is watchir.g right now, I guess you -- you told me earlier, hey, ask yourself the question -- hane your c ild something and see if they can read it.

MS. ELLER: Oh, absolutely. :tat is the ost crucia:! , O::'1:.,.g we -- we need ::0 ac:.:ress. se; :s 25s t!". C'C'C"' , ,OC ceo:'c,' .::; SC ::2 :.. ..

Complaint 125 FTC. EXHIBIT A the schools like I trusted my li tle boys -- hat they learni g to read. That is ot an assumption you can ma What you must do is, today, as soon as this shew 15 4 over, sit dowr. with your child, hand them something ey have not ' 5 5 memorized, l ke teday s newspaper, pick o t a story in today newspaper that' 5 su le for the age of your ch ld, i: you can find one -- MR. TRt.'DEA'J: Right I right.

MS. ELLER: - - that iSD I t a1: blood and gere. Ard 10 your child is in second grade or above, your child sr.ou:ci be ab:e to flu ntly and ndependently read a story n the newspa;er. 12 When they come to a word they' ve never seen -. MR. TR!.JDEAU: They should read it out loud to yc MS. ELLER: Yes, absolutely, read it out loud. MR. TRL"DEAU: Out loud.

I re S. ELLER: How else are you going to know they readir.

MR. 7RUDEAU: Right, okay.

MS. ELLER: Okay.

MR. TRL EAU: Honesty? MS. ELLER: okay. A."ld aceurate:'y. See whe:1 they co te a word they ve never seen, they shculd be able to sG nd i: CL:t. the!; pick up their spe d and So risht en. A.- C ::-:e,. e second GS: ;crtant 5, at -- .:_ ;::, .:: ::! . . . JEANIE ELLER 707 674 Complaint EXHIBIT A MR. ':RUDEAU: Un- uh (yes) MS. ELLER: - - then ask them comprenension questions about what they just read. Who did it? ere did it happen? When did it happen? Tel me .In your awr words what this story was about t .

According to the U ited States D partment of Educ ticn, "What Wor:"s, " the teacr.ing of readily1g II .;n a document called II sr.ould be t;;u;:-:: in first g:r2de with ir.tens.:v, sys1:ematic ":':rect of the phonetic system. It s:-.oL.ld be completed by II .lnstruct.lO iO:i t::e end of fir;:t grade, secone grade at the :: latest. 1:11 And O, therefore, if your child '3 in second qrOioe or 1211 above, they shm.:ld be able to tluer-tly and i:ldependently r2iio a J II story .In tl:€ newspaper. -1 14 , there s going =0 be a ot oi eople, Kev n, who are goi g to find out their children can t co that- So, =hey J6 ! sot several choices. They can go to the school and say, what method are yeu using? MR. :'RUDEAU; Right - MS. ELLER: Are you having reading class af er second g:-ade? Why are you doing that? Show me the :-esearch. Ah, that' s going to be a long, slow battle, beca se, I know, I' teen fighting it now for 20 years"

MR - TRUDEAU; Sure i-!S" E:'LER: :'::e best: i:19 t:o co :::,e ::est way ::0 sc!.- 2..:,:-==- e:-':c5, e': =-5e_ :e=- :e" :.: , , :: . .:;: Complaint 125 F.TC. EXHIBIT A literate. Get your hildren literate. And the, start trying rr.ake changes in the bureaucracy.

MR. TRUDEAU: Now, if your child becomes this fluent reader, be able to -- if it' s first grade, second grade -- picks 5 up the newspaper, " Mommy, let me show you this, and reads this 6 thing fluently, cut loud. If they can t de that -- and if they 7 could, they r 11 do better in school.

MS. ELLER: Oh, let me tell you what' 11 h ppen to them. MR. TRUDEAU: They - - they - - go ahead. MS. ELLER: They ll be in the top five percent in the nation. Accord- - MR. TRUDEAU: That easy? MS. ELLER: - - according to -- MR. TRUDEAU: You re saying that -- that easy? MS. ELLER: It' s -. well, you figure it out, okay? You I re a bright man. According to the United States Depa tment 17 of Education, just five percent of our 17-year-o:ds can read at an advanced level. This is also from "What Works. Okay, that' 19 Qne out of 20, right? MR. TRt.JDEAU: Right.

I re saying MS. ELLER: All right. So, what we 20 -- :or every 20 kids who start first grade -- MR. TR::"'EAU: , the grades are going to go :':::Z - - one t c: t ose 20i5 go:. to ':2!i:::-. '-8 :-2:0-: ::c:' , :.;- 3::2 JEANIE ELLER 709 674 Complaint EXHIBIT A MR. TRUDEAU; So, the grades will go up.

MS. ELLER: You ll be in the top five percent in the na tion.

MR. TRUDEAU: I bet you their self- esteem -- M5 - ELLER: Dh h MR. TRUDEAU: -- their self-confidence -- M5. ELLER: - - increcible what '11 happen. MR. TRUDEAU: They '11 feel better about t?1emselves. 9 Ah, SAT scores? MS. ELLER: Oh, Alaska had -- I don' t know what the scores are for ttis year, but the last time I looked, Alaska had the highest SAT scores in the nation. MR. TRUDEAU: , the SAT scares go up, they get -they get into the college of their choice? If they get a good education, if they come out, ah, the top five percent, they making more money. They get into the job of their choice. MS. ELLER: Then they can. be affluent.

MR - TRUDEAU: If some exactly. If they re fluent at first then affluent later.

MS. ELLER: You got it.

MR. TRtrEAU: If an adult is watching us right new and they' re at a certain income level, if -- you re telling e, if they can lear to read and read flue tly, they have a better chance c: in- - aki mor :7C:". "2Y, of, 2!"., ~9rcvl cir cw ra:c =2SS :.: . : .

Complaint 125 F.TC. EXHIBIT A MS. E1.LER: Absolutely. had man call me - - you just made me think of this - - he had been a Vietnam Vet, stayed in, went into the National Guard, couldn t read. Only his wife knew he couldn t read. And anything he had to read, he would go Oh, I forgot my reading glasses. What. does it say?" MR. TRUDEAU: Ah.

MS. ELLER: Or, he would take it heme, have his wife read to him -- because his wife knew he could t re d -- he come back.

He called me up. He was a solutely desperate. He was getting a promotion and he had to re It was a desk job. And said he ' gone several places. They told him was going take him two years, three years, six years learn read. said, don have that kind time.

MR. TRUDEAU: Right.

MS. ELLER; "Wha': can you do? I said, "Take this 17 program. I guarantee you, if you'll go through it, if you start back at s Jare one and go through this program, w enyou finish, you ' 11 be able to read anything" He called me back in a rno th. He get his promotion. He CQuld ow read anything. d that man was a new person mean, you could hear it. You could hear it -- MR. TRUDD.:J: he2r it.

MS. :"E:: : ::: f'.is vc:::e. I:'. . ' r-= - 3.:':::-. :"," co;-. , JEANIE ELLER 711 674 Complaint EXHIBIT A you wa t more information on Jeanie I 5 progyam, please call the aoo nurrJ:er. We highly recommend and endorse this pro ram. bought i myself for my my brother s son. I th nk you I 11 see some fantast c results for you and the children and the people that you love.

7his is Kevin Trudeau. Thanks again for watching me. 7 J.nd watch me en .:: other edition of " A Close:: Look. 2J .

, :;. :

Complaint 125 F.TC, EXHIBIT B ACTION .5 ING About Jeanie Elrer HQ;- gram endor.ec: by The National Right to Read FOl.:nd;- on and Tt:.: !;..tional Re.ding Refonn Foundation! N2:Jnally rer... nred !ej? ::"g and reading c:=teri 30 years cf ;eac.1irg e erience Train.: or Retrins !e rs L" 'n Service M et;-;gs Has o:,:.:'eared en Oprch I,I\/inf.-ey's show Sid". ;-,_tes frm Prcor;n 85% ofall schcc!s teach kids to read by sight 15 % use phonics By th year 2Cao, two-thirds of our country 'Nil be i!literate (functonaJly disabecj)! More than 1 mimen children"', :ach year graduate ..itoll the abUrt"t reed. Fer C: ;lt Exc,,;:.:nt home st1dy pro ram fer preschMI.crs Chi;':ren 8 ar,d older 1:,1 Go the program 0:1 their own . 113 C'audio cassetts are fii;ed wi songs aild .hymes t. at hold !r.c:r att.=ntian The video tape is fun for kic:s because Jeanie has FUN pictre C:1 iie flash cards that they ITe and they get to make lots of funny sour.ds that i= transl2.tes into f2ading! Helps beast self e.te€m and ccnfidence Give kids an ed;e in schoo! that makes rt easier fer tlem to ex Helps improves c:mprehension of materials read Helps enhance :;enmanship abilities Incorporates all of the learning senses throu h art games, bOGY movements and music to create an active and entertaining e;'penence that kids won think is "were' E.celler. for kids raised in homes where English is NOT spoken K51/SAUERG CCI"L\ITI ::IEn K D.GDL\'J C:: J-=, ::

ELl l...I u.-:l!\ : :I :;;

JEANIE ELLER 713 674 Complaint EXHIBIT B ACTON F,: ZI ING continued For Adults Relieves embarrssment of not bE:ing able to read (ne paper, fo labels bus schedules. menus, job applications, etc. 8095t con5dence and self estesm . Can rrs.:;s 0: person more emplc 'able Easier i:ilc :::.icker for adult to 1 :'iT . because most .. :. i:..dy know the vocabuiar/ - t"ey just nee to Ic j how to -decide- wr n Word and sentencss.

Oth'!:"

Uses in! Isive sysmatJc phon::: (jased on word SGUi" , not spellngs) Most pP"Jple can complete the ent:.-e: program and IS::iT to read wiir4weeks.

Complaint 125 F.T. EXHIBIT B ING sc Thank you far callng Acton Reading my name is and who and I speaking wrt? are you callng about Fast Track. Acton Reading program? (Caller) Yes I am.

GreatJ- 1 can r.€lp you wit that Is this fer a child or an adult? ( If 2: child) haw old is he/sl\ ? OK good! Je:::-b' s program can ',' ;initely help! As a matter of fact its endol"ed by Tr. e National Right Q R.ead FOUIdation .and The National - eading Reform FOl.md::ti:m. Plus, its r.ed by a 100% money back. guarantee! The key to Jeanlc s proven appliach is the use cf all iearing senses, t':rough art. games, bogy movements end r"usic to c ea\e an acte. ent rtainif';! experience. A.,d Jeanie not or.ry teaches 'fC-'J how to re. bvt Ziso comprehension and wring skills. Th program includ over 9 hours cf aw:io cassette ta, a 100 page guide beok, flash cards, ", game boards and ;;Iaying pieces, along Y.f..'1 a bonus video tape. And the best par! is the value, Normally, Jeanie chCif!;:;: schools $1500 par day to learn about her proven methods, 9ut yau can take Cidvantage the same information and receive the ccmpJeta MCr! Reading pro m for just $139. , plus S&H. Ard Jesnie is so sure her program works, she ore::;; you a full, three mcnth, money b1;; : guarantee in wrting. !f for any reason you re not satisfied, simply return for a 'fll refund of the produ': purchase price - no questions asks:.! And all ! need to get the program O:.t to yeu is your address and credit card number would you prefer to use \ Mastercard or Discover? (Capture all informationJ yeur total including shipping and handling is $152.47 and you ll receive your program in 2 - 4 weeks. If you have any questions you may call our customer service number at 1-800-E34 2990. Thank you for calling and have a great dayl JEANIE ELLER 715 674 Complain! EXHIBIT B ACTZON 2I ING TOP QUESTION"S A. ANS'!S How can it improve comprehension? Even U1ol.:gh we ve heard a lot of werds before in ccnversaticn, a per.on who can ! read wouldn t recognize them. Acton RS3dir.g teacles 'fcu how to read words fer their meaning. (It's like putn;, = persns face to their name, when you Mave only spoken to t.iem en "E telephone. What age oup can use ttis program? From pre-schoel to ac.;ults. Pre Sch olers may tak.= 2 ye::rs t:ocomplete while adult as lite as 4 weeks.

Does it work for adults as we:: as children? Absolut !y! Age has litle to do wr..'1 reaming to read. How doe :ompare to other programs? (i.e., H:J :;::! en Phonics) Acton Readir,g is less expensiv and muon more comprehensive. Jt actaJry teac.ies tle skil of re.:c4rng while incorpora:ing Cjjj of the learning sensss.

C.n chHdr..n use the course on t.'1eir own? Children 8 yo;a and up can complete the course on t::ir ow, We recommend tnat parents still monitor and assist Does Jeanie guarantee that she can teach anyone to read? AC"jcn Readir.g can teach anyone who can see, he.:r, L1ink and talk to read..guarantee or your money back! Can .i child with ADD learn :) read with Acton R.eading? Acton Readir.g is a multj.sensory, actve program tlat can help p a person s attention. It's unique, proven method incof1orates an cftne leaming senses through art, games, body movements and music to create an acte, entertining experience that dces not seem like work !s the course too child-like for an adult? Absolutely:"ot! Even adults need to start ITom tI.e beginning. .: ,.; ;,; Complaint 125 F.TC. EXHIBIT B Is Jeanie still teaching seminars? How much are they? Jeanie s in-schoo! training seminars are $1500 per day. However, you can benefi from the same information, in the comfor of your home, for only a fra,Uon of the cost.

10, Can sor.eone with Dysle::i.: learn to read 'uith Action Reading? Actjon Reading teaches left to right trcking 2nd rt eX'tains ho the s)(i! of reading wo!is.

11. 15 ti re a lot of rnemoriz:tiol17 No. Ur. :;;'ehe way most Jols teach kids b)' -=mortng thousands Ji w..rds :y sight. A person onJv :1'..sds to leam ' O unique sounds oi':"' Engl;3:. :::;Guage. This un: IJ,-, proven method i b:ase.cn word so:.' not sp:.!lin:!O.

12. 'Mllr;. ..c':JJtcomplete c:-u e the sam ;":' as a child? An a i.;t y.:11 mplete the COlliS:: exact as a che-: wouid, however. tt, willl;;;ely omplete it muc, asicr and Quicker. 13, How ca"';'1is course he: iT1entally disct.;.; It all c&-:.=..ds on tle degree 'Jf j,le disabiJrt. !-:,Jw ver, Actn ReaeLlo :logi ::;' ::md systematically c' signed so that the. l1'::ent I'rs cn before moving on to tle n=A . The parent or t ;r can set tte pace . matci1 tf, ,; student's learning :.::Uites, and it can complete over anr: over u;-,til t g student master: le course. The :;ram is stctre J"?-; fun, while praise and pride c; &.ccomplishment 2re bat in. 14, How c':es it work? Jeanie s proven, phonics based method incorpc:c:.tes all oftte lear:ing senses thrclJgh art games. body movements, and music to crate a:1 actve z.r.d entertaining experience that doesn t seem like work Leaming to read has been compared to cracking a code. On yeu knew the secret its easy to decode a sentence. Action Reading teaches the sounds and patterns of our language and how to use tlem for decoding. 15, How long does it take to complete? You can c::rnpie!e ti.e course at your own pace and most sh.cents ::n complete the entire program witr,.in just 4-6 weeks. JEANIE ELLER 717 674 Complaint EXHIBIT B 16. Delivery time? 2 - 4 weeks for credit card orders 2 . 4 weeks fer phone/mail checks 4 - 5 business days for Federal Exress (CC orde only) 17. Shipping charges? Regular fort class mail- $12.

Federal Express - $9. 50 ext 18. Caller wants to speak with Jeanie Eller or other Maga personalities.

They may wre to Mega Systems at Mega Systems Inc.

Acton Reading PO Box 11031 MerrUville. IN 4010 19, What does the program contain? - 6 audio cassettes - Visual aid flash cards - 7 game boards wi playing pieces 100 page "'orkook - Bonus videa tape Complaint 125 F.TC. EXHIBIT B QUESTIONS, OBJCTIONS AN REBUT"ALS Remember...

People are net callng to figure out why they should buy, they are caWng to figure out why not to buy! 1. I want to think about it.

Don t m2k.e your decision now, decide in a montl or tYo after your yeuf child !",ave sen the result r.:n the program. Jecmie is so ccnfdent tls.t her program works she gives you a ful! three months to decide! . VIat c;uld be a better gif t.'1an the gif of reading? Once a child knOIN how to read, the skys the IimitJ . lny? lNat's your hesittion? Exacty, I wouldn t want yeu to base your decision on a 5 minute phone call. It wouldn t be fair to you or your problem. Let's get this cut to you so that you can base your decision on results - that way you can make an educated decision.

. Exadyf that's why Jeanie Erler gives you an entire thret months. So that you can not cnly think abcl.1 it but you c:n experience the result that he ouarantees you wi1 receive.

. VVat questicn do you stm have that's causing yeu to hesitte? 2. How much is the book? Let me ell you Mr /Mrs.JMs. exad:y what you will!:e re:E!:vin:;, your discour.t. and hew it will benefit you. O. JEANIE ELLER 719 674 Complaint EXHIBIT B 3. Can you send me wrttn information? Let me tei! you Mr./Mrs./Ms. exactly what yeu will be reivir.g, your discount for ordering today and how the Jeanie s prcgl'm 'Ml! benefi you. O.

I can give you all the information you need. Vvat speciica lywol.ld you like to knew? 1 wish the 1i.. here !old the whole story. In faci it will pmb 1y ra key questions that I would be able to answer fer you new. (NO FAUSE ..ask probing C;L:::.::an).

4. I need to !pe;k with my wife or r.ust;3nd. . That's what Jeanie EJ!er wants you to de. She aIIO)l6 :JS to send the entire prol'm to you, on a no ri.- :c basis so th.:t yo" and ycurwfe can go tlrough it together and really determine the value ofihe informaijc;n ..rd see how it can reaiiy benefi your famij Let's get thi: out to you so that yau c nj your wie can r=vi"" toetner. Don t ask. hei: make a decision cn"t price. but on th ni'm1cn and the resu . Remember you nave a fwli three month mon y t-sd: guarant . Why don t YO'J talk wi them right now. I can wart 5 It's too exper.sivej I'm on a fixed inccme/l can t afford it . Threepay. 'vat if I could get the entire program out to you fer just $46. 65 a mcnth for three months; would tnat be better for yeu? If this can help yeu, wouldn t it be wort review'Nr.g? . Would you usir.g a credit card to place your order today? Great then what 1' 1) be able to do isto put yeu en our 3 pay plan, and yo!.r last name is? m SL:re you would agree that a product is wcru what it dees fer YC'J. Let's explore what benefits Action reading Cff2rs you. . .

Complaint 125 F.TC. EXHIBIT B If J could demonstte how Acton Reading would be wort every penny re asking, you be willng to take advantage of what we offering today, right? The value of Acton reading is what it will g' fur you net what you ha..e to pay fer it, rigl1t? Price is an impor+.ant consideration, isn t it? Would you consK!er vall1 equaily important? Let me tell you about the value of our pnxuct. ,1 can appreate your situation and thafs why ..Ie;nie EJ1er of you 0::1 easy 3 P':J plan so yc can still take adv.mtage- the diunt today. By ijs:ng the 3 pay plan Jeanie Eers pr07gra becme mers afford2:: and best of all. ti,ere a!1 no financing ;e€'; or added cost. L.t me give you a breakdown of th.; payments so we ca get is right out to you? 6. I' m not Intsteste.

May I as", why? What result would r,.d'ke the price warth itin your opinion? :;, JEANIE ELLER 721 674 Complaint EXHIBIT B HOW TO EXPLAIN THE 3 PAY PLAN ! can appreciate your situation. and that's why Jeanie offers an eas 3 pay plan so yeu can still take advantage af her proven program. By using th 3 pay plan her program now be"..mes easier to own, and best of all, there are no financing fees or added 0:515. Let me give you a breakdown of the payments so we can get this out to you OK? Your payments wi!! be split up wit the first payment consisting of 1t. of the produ pnce plus applicable shipping charges. The send and:htr payments consist of two equal payments of the remaining 21 of the prcduc: price. Th:. breaks out to;

1 st Payment 2nd Pavr.ent :lrd P "'ent $59. S46.

DOESN' T NOT HAVE A CREDIT CARD 00 yeu have a chedng account? YES Great! A lot of p ple like YCUl' elf are not using credit cards, tr,afs why Jeanie offers yeu check by phone, so that you can stiU take advantage cfthe discount today. Go ahead and get your checkbock and (' II walk you through the proce. - (Name) may I have your address? - Ard your daytme telephone number wit area code first? - May I have the name of your bank? - Ard the ci and state that your bank is located in? - May! have the ched number located in the upper right hand comer of tI.e next check in your checkook? - There is a long ser.es of number on the bottom of that ched. 'v1i you please read all of them to me strtng from left to right? Please read just thenumbe and not the symbols. Make sure yeu do net leave any numbers out Great! (Name) your ctal including shipping and handling .is $152.47 and yeu wiil receive your prot;rar:'1 in 2-4 weeks. If you have ar:y questions you may call our stcmer ser.ice r'l.:mber at 1- 800-634-2990. Thank Yeu fer calling ar,c r.Cive a eat cayl Complaint 125 FTC. EXHIBIT B WANTS MORE INFORM TJON ON CHECK BY PHONE (Name) when you send a check to a company they use the information off the front of the check to process it well that same information is what we are now able to prc::ss by phone. Wrt the bank name, the check number aid the number!1 off the bottom of the check we ll be able to secure your order today, and expedite it right ory.

Also, (Name)what you can do is contact your bank and let them know ttat you have gien Mega Sysems the aut10rt to put check1( through fer a one time charge of $ not a penny more or Jes. This way you can be assured that you stil! have contl of your account O. WILL NOT USE CHECK BY PHONE DOES NOT HA YE CHECKING ACCOUNT Let me .send you an invoice wit a postage paid retum envelope fer yeur convemencs.

If you have any quesns you may call our Customer E342990. selVice r.urr'J at 1.800- JEANIE ELLER 723 674 Decision and Order DECISION AND ORDER The Federal Trade Commssion having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Chicago Regional Offce proposed to present to the Commssion for its consideration and which, if issued by the Commission, would charge respondent with violations of the Federal Trade Commission Act; and The respondent, her attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commssion s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and no comments having been filed thereafter by interested parties pursuant to Section 2.34 of its Rules, the Commssion hereby issues its complaint, makes the following jurisdictional findings and enters the following order: L Respondent Jeanie Eller resides at 42828 North 7th Avenue Phoenix, Arizona, 2. The acts and practices of the respondent alleged in this complaint have been in or affecting commerce, as "commerce " is defined in the Federal Trade Commssion Act. 3. The Federal Trade Commssion has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER DEFINITONS For purposes of this order, the following definitions shall apply: Competent and reliable scientific evidence shall mean tests analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that has been conducted and Dccision and Order 125 F. evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results, 2, Unless otherwise specified respondent shall mean Jeanie Eller, individually and her agents, representatives and employees, Commerce shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U. C 44, It is ordered That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale sale, or distribution of Jeanie Eller Action Reading or any other product or program that provides instruction in any aspect of reading in or affecting commerce, shall not make any representation, in any manner, expressly or by implication:

A. The extent to which individuals who use such product wil learn to read, or B. The success rate of individuals who use such product unless, at the time the representation is made, respondent possesses and relies upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates the representation.

II.

It is further ordered That respondent Jeanie Eller shall, for three (3) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commssion for inspection and copying: A. All advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C All tests, reports, studies, surveys, demonstrations, or other evidence in her possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations, JEANIE ELLER 725 674 Decision and Order It is further ordered That respondent Jeanie Eller, for a period of five (5) years after the date of issuance of this order, shall notify the Commission of the discontinuance of her current business or employment, or of her affiliation with any new business or employment. The notice shall include respondent s new business address and telephone number and a description of the nature of the business or employment and her duties and responsibilities, All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commssion, Washington, D, IV, It is further ordered, That respondent Jeanie Eller shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commssion a report, in writing, setting forth in detail the manner and form in which she has complied with this order. This order wil terminate on April 6, 2018, or twenty (20) years from the most recent date that the United States or the Federal Trade Commssion files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order whichever comes later; provided, however, that the filing of such a complaint wil not affect the duration of:

A. Any Part in this order that terminates in less than twenty (20) years;

B, This order s application to any respondent that is not named as a defendant in such complaint; and This order if such complaint is fied after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been fied, except that the order will not terminate between the date such complaint is filed and the later ofthe deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

Commssioner Thompson and Commssioner Swindle not participating, 726 FEDERAL made COMMISSION DECISIONS Complaint 125 FTC