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Federal Trade Commission v. Universal Network Solutions, LLC

United States District Court, D. Colorado

December 11, 2017

FEDERAL TRADE COMMISSION, Plaintiff,
v.
UNIVERSAL NETWORK SOLUTIONS, LLC, a Colorado limited liability company, and RAJINDER SINGH, individually, and as a member and manager of Universal Network Solutions, LLC, Defendants.

          PERMANENT INJUNCTION AND MONETARY JUDGMENT

          PHILIP A. BRIMMER United States District Judge.

         On May 3, 2017, plaintiff Federal Trade Commission (“Commission” or “FTC”), filed its Complaint for Permanent Injunction and Other Equitable Relief (“Complaint”) [Docket No. 1], pursuant to Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). Docket No. 1 at 1, ¶ 1. Defendants Universal Network Solutions, LLC and Rajinder Singh have been served with the summons and the Complaint. Docket No. 7; Docket No. 7-1; Docket No. 8; Docket No. 8-1.

         The Commission and Defendants having stipulated to entry of an Order for Permanent Injunction and Monetary Judgment Against Defendants Universal Network Solutions, LLC and Rajinder Singh, and for good cause shown, the Court hereby enters this Permanent Injunction and Monetary Judgment (“Order”) to resolve all matters in dispute in this action.

         FINDINGS OF FACT

         1. This Court has jurisdiction over this matter.

         2. The Complaint charges that Defendants participated in deceptive acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in the advertising, marketing, promotion, offering for sale, or sale of Tech Support Products or Services.

         3. Defendants neither admit nor deny any of the allegations in the Complaint, except as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts necessary to establish jurisdiction.

         4. Defendants waive any claims that they may have against the Commission and/or their employees, representatives, independent contractors, and agents that relate to this action and any claim that Defendants may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order. Defendants agree to bear their own costs and attorneys' fees.

         5. Defendants and the Commission waive all rights to appeal or otherwise to challenge or to contest the validity of this Order.

         DEFINITIONS

         For the purpose of this Order, the following definitions shall apply:

1. “Defendant(s)” means Universal Network Solutions, LLC and Rajinder Singh, individually, collectively, or in any combination.
2. “Business Entity Defendant” means Universal Network Solutions, LLC, and its successors and assigns.
3. “Individual Defendant” means Rajinder Singh, by whatever names he may be known.
4. “Tech Support Products or Services” includes any plan, program or software, marketed to repair, maintain, or improve a computer's performance or security, including registry cleaners, anti-virus programs, anti-malware programs, firewall programs, and computer or software diagnostic services.

         SECTION I: BAN ON TECH SUPPORT PRODUCTS AND SERVICES

         IT IS ORDERED that Defendants are permanently restrained and enjoined from:

         A. Advertising, marketing, promoting, offering for sale, selling, or providing any Tech Support Product or Service;

         B. Assisting or providing consulting services for others engaged in, or receiving any proceeds from, advertising, marketing, promoting, offering for sale, selling, or providing any Tech Support Product or Service; and

         C. Owning, controlling, or serving as an officer, director, or manager of any business entity advertising, marketing, promoting, offering for sale, selling, providing, or assisting or providing consulting services for others engaged in, advertising, marketing, promoting, offering for sale, selling, or providing, any Tech Support Product or Service.

         SECTION II: PROHIBITION AGAINST MISREPRESENTATIONS

         IT IS FURTHER ORDERED that Defendants, their officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with the advertising, marketing, promoting, offering for sale, sale, or selling of any good or service, are permanently restrained and enjoined from misrepresenting, or assisting others in misrepresenting, expressly or by implication:

         A. That Defendants are part of, affiliated with, or certified or authorized by, any entity;

         B. That Defendants have detected security or performance issues on a consumer's computer, including system errors, viruses, spyware, malware, or the presence of hackers; and C. Any other fact material to consumers concerning any good or service, such as: the total costs; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics.

         SECTION III: MONETARY JUDGMENT AND PARTIAL SUSPENSION

         IT IS FURTHER ORDERED that:

         A. Judgment in the amount of Five Hundred Forty-Seven Thousand Eighty Seven Dollars ($547, 087) is hereby entered in favor of the Commission and against Defendants, jointly and severally, as equitable monetary relief.

         B. Upon completion of all payments and asset transfers specified in Subsection III.C, the remainder of the judgment is suspended, subject to the Subsections below.

         C. Defendants are ordered to pay to the Commission Sixty-One Thousand Three Hundred Sixty Dollars ($61, 360), which, as Defendants stipulate, their undersigned counsel holds in escrow for no purpose other than payment to the Commission. Such payment shall be made within seven days of entry of this Order by electronic fund transfer ...


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