People v. Bestline Products, Inc.

Appellants Bestline Products, Inc. (hereinafter “Bestline Products”), Bestline Corporation (hereinafter “Bestline Corp.”), William E. Bailey, Robert W. Depew, David L. Eastis, James Rohn and Larry D. Huff appeal from a judgment dated December 21, 1973, in favor of plaintiff the People of the State of California. The judgment (1) permanently restrained defendants from operating or participating in a marketing program embodying proscribed features which the court found were in violation of Business and Professions Code section 17500 prohibiting “untrue or misleading” statements; (2) required defendants Bestline Products, Bestline Corp., and Bailey to offer to make restitution to victims of the Bestline marketing program, and (3) imposed civil penalties of $1 million jointly and severally, upon defendants Bestline Corp. and Bestline, Inc., $250,000 upon defendant Bailey, $100,000 upon defendant Eastis, and $50,000 each upon defendants Depew, Huff and Rohn.

The complaint which was filed May 12, 1971, included two causes of action. The first cause of action charged that defendants “have operated, and continue to operate, their marketing program by means of making numerous…