FOR IMMEDIATE RELEASE: April 12, 1990 FTC CHARGES MAIL ORDER FIRM WITH VIOLATING MAIL ORDER RULE; FIRM WILL PAY CIVIL PENALTIES The Federal Trade Commission has charged Direct Marketing of Virginia, Inc., a Roanoke, Va., mail-order firm sometimes trading as USA Buyers Network, with violating the FTC's Mail Order Rule. Under the terms of a proposed consent decree, the company, and its owner, Ajit Khubani, will pay a civil penalty of $30,000, and is prohibited from violating the Mail Order Rule in the future. Direct Marketing of Virginia sells inexpensive items, such as portable electric shavers and sunglasses, at prices of five to ten dollars through advertisements in Sunday newspaper supplements. According to the FTC's complaint, Direct Marketing violated the mail order rule by failing to ship ordered merchandise to buyers within the time clearly stated in their advertisements or, when no time was clearly stated, within thirty days of receipt of an order form. The complaint also charges that the company failed to offer customers the option either of consenting to a delay in shipping or cancelling the order and receiving a prompt refund. The complaint and proposed consent decree name as defendants: Azad International, Inc., d/b/a The Direct Connection, The Health Connection, The Photo Connection, American Constitutional Mint, TDC; Direct Marketing of Virginia, Inc., d/b/a Direct Marketing of Virginia, USA Buyers Network, SLM, DMV; Smart Shoppers Club, Inc.; and Ajit Khubani as an officer of all the named corporations. At the request of the FTC, the Department of Justice filed the complaint and proposed consent decree in the U.S. District Court for the Southern District of New York. The consent decree is subject to court approval. This matter was handled by the FTC's New York Regional Office. A consent decree is for settlement purposes only and does not constitute admission of a law violation. Consent decrees have the force of law. Copies of the complaint and proposed consent decree will be available soon from the FTC's Public Reference Branch, Rm. 130, 6th St. and Pennsylvania Ave., N.W., Washington, D.C. 20580; 202- 326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Howard Shapiro, Office of Public Affairs, 202-326-2176 STAFF CONTACT: Michael J. Bloom, New York Regional Office, 212-264-1207 (FTC File No. 872 3103) (Civil Action No. 90 CIV 2412-(PNL)) (DRCTCON)