Federal Trade Commission v. World Wide Factors, Ltd.

O’SCANNLAIN, Circuit Judge:

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 from World Wide the prize would be exempt from federal income tax. Consumers never received the promised prizes, only the opportunity to purchase goods.

*346On March 3, 1988, Williams pleaded…