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FTC announces verdict against three Utah firms for alleged violations of TSR Act

By Mark Iandolo | Jun 9, 2016

SALT LAKE CITY (Legal Newsline) — The Federal Trade Commission has announced a federal court jury in Utah has delivered a verdict in its favor against multiple firms that allegedly violated the FTC’s Telemarketing Sales Rule (TSR).

The FTC alleged Forrest S. Baker III and three Utah firms he controls violated the TSR and the FTC Act by making more than 117 million illegal calls to consumers. The companies involved are Feature Films for Families Inc., Corporations for Character L.C. and Family Films of Utah. Baker purportedly deceived consumers about how the proceeds gained from their purchases would be used.

Baker’s alleged scheme involved offering DVDs to consumers under the pretense that the proceeds would go toward developing a recommended viewing list of the nonprofit Coalition for Quality Children’s Media. The FTC alleged, however, that 93 percent of all proceeds stayed with Feature Films for Family, one of Baker’s companies.

 Additional evidence the FTC obtained allegedly showed that in 2009, Feature Films for Families called consumers and asked them to purchase tickets to “The Velveteen Rabbit,” a film produced by Baker. The telemarketers called more than 2.5 million consumers on the Do Not Call Registry.

The jury verdict against Baker and his companies covered six different TSR violations.

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U.S. Federal Trade Commission