Federal Trade Commission v. Trudeau
Federal 7th Circuit Court
Civil Court
Contempt
Dist. Ct. did not err in finding defendant in contempt for violating court-approved settlement by misrepresenting content of his book "The Weight Loss Cure 'They" Don't Want You to Know About" and establishing $37.6 million remedial fine, which was based on price of defendant's book generated from 1-800-number orders, plus shipping costs, less returns. Dist. Ct. could base remedial sanction on consumer loss, rather than defendant's unjust gain. Moreover, Dist. Ct. had authority to modify original consent order to include defendant's requirement to post $2 million performance bond prior to making any additional informercials where record showed that defendant had produced 32,000-plus broadcasts of deceptive informercials under terms of original consent order. Ct. also rejected plaintiff's claim that imposition of performance bond requirement constituted violation of his First Amendment rights.