Federal Trade Commission v. World Wide Factors, Ltd.

882 F.2d 344 FEDERAL TRADE COMMISSION, Plaintiff-Appellee, v. WORLD WIDE FACTORS, LTD., a Nevada corporation, d/b/a Nationwide Printing, and Printers Clearing House; David E. Williams, individually and as an officer, director, and sole shareholder of World Wide Factors, Ltd., Defendants-Appellants. Nos. 88-15143, 88-15326. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 13, 1988. Decided April 21, 1989. As Amended on Denial of Rehearing Aug. 10, 1989. Claude M. Stern, Nossaman, Guthner, Knox & Elliott, San Francisco, Cal., for defendants-appellants. Leslie Rice Melman, F.T.C., Washington, D.C., for plaintiff-appellee. Appeal from the United States District Court for the District of Nevada. Before FLETCHER, BEEZER and O'SCANNLAIN, Circuit Judges. O'SCANNLAIN, Circuit Judge: 1 World Wide Factors, Ltd. ("World Wide" or "appellants"), operated by David E. Williams, president and sole shareholder, sold advertising specialty items through telemarketing and conducted sham prize give-away promotions. World Wide informed consumers that they had won a substantial prize, required consumers to pay a processing fee, and advised them that if they bought products…