WASHINGTON, May 23, 2000 -- The Federal Trade Commission has reached a settlement with Scott Earl, who was involved in an alleged business-to-business office toner supply fraud.

The FTC sued National Supply & Distribution Center, Inc., Data Distribution Service, Inc., Earl and several other individuals as part of "Operation Misprint," a December 1999 multi-agency law enforcement effort to crack down on bogus office and maintenance supply telemarketing schemes targeting large and small businesses and nonprofit organizations.

The FTC's complaint alleged that the defendants deceptively marketed exorbitantly priced toner for office copy machines in violation of the FTC Act and the Telemarketing Sales Rule. Earl has agreed to a settlement involving his role in the deceptive scheme. Under the terms of the settlement, Earl is banned from engaging or participating in telemarketing, or assisting others who are engaged or participating in telemarketing. The settlement also prohibits him from engaging in any of the deceptive practices alleged in the complaint, in connection with the advertising, promotion, offering for sale or sale of any good or service. In addition, Earl is prohibited from selling National Supply or Data Distribution's customer lists.

The settlement includes a $2,000,000 "avalanche judgment" clause, to be paid if the court finds that Earl misrepresented his financial condition.

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