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COMMONWEALTH PENNSYLVANIA v. JAMES TOLLESON AND RODNEY TOLLESON (06/19/74)

decided: June 19, 1974.

COMMONWEALTH OF PENNSYLVANIA, ACTING BY ATTORNEY GENERAL ISRAEL PACKEL, PLAINTIFF,
v.
JAMES TOLLESON AND RODNEY TOLLESON, DEFENDANTS



Original jurisdiction in case of Commonwealth of Pennsylvania, Acting by Attorney General Israel Packel, v. James Tolleson and Rodney Tolleson.

COUNSEL

George S. Test, Deputy Attorney General, for plaintiff.

James H. Joseph, with him Donald S. Hershman and Baskin, Boreman, Wilner, Sachs, Gondelman & Craig, for defendants.

President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson, Jr., Mencer, Rogers and Blatt. Opinion by Judge Kramer.

Author: Kramer

[ 14 Pa. Commw. Page 165]

This case comes within the original jurisdiction of this Court. It comes about as a result of the filing of a petition for recovery of civil penalties by the Commonwealth of Pennsylvania (Commonwealth), acting by its Attorney General, against James Tolleson and

[ 14 Pa. Commw. Page 166]

Rodney Tolleson (referred to collectively as Tollesons and individually by given and surnames) for violation of a permanent injunction issued under Section 4 of the Unfair Trade Practices and Consumer Protection Law (hereinafter Act), Act of December 17, 1968, P.L. 1224, 73 P.S. ยง 201-4. This opinion is being filed simultaneously with three other opinions involving the Tollesons: American Be Independent and the Tollesons v. the Commonwealth of Pennsylvania at No. 189 C.D. 1973; Commonwealth v. the Tollesons, No. 207 C.D. 1973, involving the injunction requested by the Commonwealth; and Commonwealth v. the Tollesons, No. 207 C.D. 1973, involving four petitions for civil penalties filed by the Commonwealth.*fn1 Because each of these opinions involves a separate subject matter, they are being filed separately for the purpose of clarity.

This case commenced on November 10, 1972 when the Commonwealth filed a complaint in equity seeking to restrain the Tollesons from violating certain provisions of the Act. On this same date, the Commonwealth and the Tollesons filed a Consent Petition for a Permanent Injunction restraining certain activities of the Tollesons in their promotion and sale of regular and executive memberships in an organization known as Century 2000, Inc. The order of this Court and the provisions of the Consent Petition for Permanent Injunction read as follows:

"Order

"And Now, this 10th day of November, 1972, it is Ordered and Decreed by the Court that the Defendants in the above-entitled matter do, and hereby are, Permanently Enjoined from engaging in any of the prohibited acts, practices and methods set forth in the

[ 14 Pa. Commw. Page 167]

    within Consent Petition for Permanent Injunction agreed to by counsel and all parties to this action.

"Consent Petition for Permanent Injunction

"Whereas, the Commonwealth of Pennsylvania, by Attorney General J. Shane Creamer, has filed a Complaint in Equity seeking, pursuant to Section 4 of the Act of December 17, 1968, No. 387, 73 P.S. Section 201-1 et seq., entitled the Unfair Trade Practices and Consumer Protection Law, to enjoin Defendants, James Tolleson and Rodney Tolleson, from certain alleged acts or practices declared unfair and deceptive by Section 3 of said Act, and more fully set forth in the Complaint filed herein; and

"Whereas, the above-mentioned Defendants are engaged, inter alia, in the business of selling memberships in a travel club known as Century 2000 within the Commonwealth of Pennsylvania, as more fully set forth in the Complaint herein, from a principal place of business at 3404 Hamilton Boulevard, Allentown, Pennsylvania; and

"Whereas, the above-named Defendants are desirous of complying with the provisions of this Consent Petition for Permanent Injunction contained herein and will require their agents, employees or representatives to do the same:

"Defendants, individually and through all agents, employees or assigns, shall:

"1. Sell 'Executive Memberships' in the Century 2000 Travel Club for five thousand dollars ($5,000.00) only under the following conditions and limitations:

"(a) That a maximum of three hundred (300) of such memberships shall be sold within the Commonwealth; and

"(b) That the Commonwealth will be divided by Defendants into trading areas, whose boundaries shall be mapped out and provided to the Attorney General

[ 14 Pa. Commw. Page 168]

    within two (2) weeks of the filing of this Petition and accompanying Order, each containing five hundred thousand (500,000) or more individuals, and that a maximum of twenty (20) Executive Memberships shall be sold to individuals living within each of these areas; and

"(c) That each Executive Member will be entitled to sell a maximum of five hundred (500) regular memberships; and

"(d) That each regular membership shall sell for two hundred dollars ($200.00) per family, with one hundred dollars ($100.00) of this amount paid to Century 2000 and the other one hundred dollars ($100.00) held or distributed by the Executive Member selling the regular membership, at his discretion.

"2. In connection with the sale, or attempted sale, of any regular or Executive Memberships, shall not engage in any unfair or deceptive act or practice, including, but not limited to, false or misleading statements concerning:

"(a) The number of aircraft owned or available to Century 2000, or soon to be owned or available to Century 2000;

"(b) The number and destination of trips presently available through the club, or to be available in the near future;

"(c) The cost of trips to be made available by the club;

"(d) The amount of money which an Executive Member can be expected to make or the period of time in which any amount of money can be made;

"(e) The amount of money made by others engaged in selling Century 2000 or any other product or service through similar sales programs.

"3. In connection with the sale or attempted sale of any regular or Executive Membership, shall not engage in any improper ...


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