Federal Trade Commission v. Publishing Clearing House, Inc.

Lorin Martin (“Martin”) timely appeals the district court’s order granting summary judgment in favor of the Federal Trade Commission. We have jurisdiction under, 28 U.S.C. § 1291 . We affirm.

FACTS

From late December 1993 through March or April 1994, Publishing Clearing House (“PCH”) operated a nationwide telemarketing business in Las Vegas, Nevada. At the direction of Robbin MeLaurin (who is the subject of related criminal and civil appeals pending in this court, Nos. 96-10057 and 95-16893), Martin became the president of PCH and applied for PCH’s business license. She worked at PCH for one week, answering incoming calls and performing routine office duties. Martin had previously worked for MeLaurin as a telephone solicitor at the National Clearing House (“NCH”), another telemarketing operation.

Working from a script, PCH’s telephone solicitors told potential consumers that they were guaranteed to win one of four prizes: a $50,000.00 annuity, a $25,000.00 gold rush (sometimes described as a bond), $5,000.00 cash, or $3,500.00 cash. A consumer could claim a prize by making a donation to a particular charity, such as “For the Children” or “H.O.P.E.” (“Helping Other People…