Posted: Tue Nov 20, 2007 3:59 pm
by soapboxmom
Posted on Wednesday, November 14, 2007 at 11:44PM by Jack
Yes or No?
This conference was so powerful that it became clear to me that it needs to be an experience that tens of thousands share, rather than a hundred or so that we've been averaging per event.
I have heard that 50 attended in June including spouses and even fewer came this month. How are thousands going to come to future events?
With that new direction firmly in place, I won't be marketing via the Internet as the primary method of finding qualified Representatives as I have in the past. Instead, we'll be utilizing newspapers and radio to attract thousands to smaller ticket price events
Is anyone addressing the tremendous cost to advertise a large scale conference to seat thousands?
smaller ticket price events that have multiple Mentors and Celebrities
Is anyone addressing the cost of these celebrities and speakers?
http://www.allamericanspeakers.com/ is just one site I found to give us some speakers fees to consider. This site list speakers by fee range. So please enjoy exploring this site. From what I see, anyone with any name recognition---i.e. celebrity status is at least $30,000.00 to book. Many big names are $50,000.00 -$100,000.00 minimum to book.
who will share only a portion of their extremely unique and powerful training in a 20 minute overview each - just a taste from each one.
How much are attendees going to pay for these silly twenty minute mini sessions? How many speakers are going to present something at these conferences?
From the thousands of Attendees, dozens and even hundreds will understand the value of our product and will upgrade to our products, in particular the President's Package, which continues to offer the top value for customers. AC Mentors make $7,000.00 on each of these sales and will possibly experience multiple purchases at each event.
Is someone thinking we need some retail sales before we get shut down for promoting a pyramid scheme?
How are you guys planning to "back door" these folks into purchasing MMC-IVs? Are reps going to purchase booths or tables to help pay for these conferences and then sit in the back praying someone bites before the thousands of hoped for attendees have left?
So, I will be limiting my acceptance of people from this list - the one you're on - the one that this post is going to tonight in this e-mail, to only five new Representatives who can resourcefully enroll at the MMC-IV level.
Why would anyone spend $11,995.00 now with Advantage Conferences future so uncertain? And I still don't like your idea of resourceful. I have all the documentation where you guys talk of using credit cards, refinancing homes, robbing 401ks and doing whatever it takes to get the cash to start this alleged business. Certainly not advice any qualified mentor would give.
I'll keep the list, but those not chosen will not be asked to participate with me personally after December 15, 2007.
That is the gratitude you get after spending thousands to be a part of this business.
My new role will be to facilitate sales and growth for the Reps I'm already personally working with now (and by Dec. 15) by masterminding the production of the larger conferences and parceling out new enrollees and purchasers at those events to the Reps I'm developing now.
Forget masterminding! Folks want to hear how you boys are going to fund this new "one idea" adventure you are fantasizing about.
I'm sure you have plans to succeed in the future and you've likely been exposed to every bottled vitamin drink and exotic plant "save the health of the world" company that offers the splashy websites and "EASY" money come-ons that are out there.
The fact is - they come and go with predictability and masses shift from one to the other with equal predictability. The owners just need a year to make their money and then the company will go away. If I had a dollar for every time I've seen that, well... you get my drift.
Jack, lad, aren't you pushing Vemma?
So, five people on this list will be accepted, and that's it. If you're an excuse maker or a procrastinator, then I hope that some of my e-mails have been a blessing to you. If you're one of the five, then I need to hear from you immediately. I would love to talk to you on the phone and you are welcome to call with any questions you may have. This is indeed an urgent timing situation.
It is urgent for you, Jack, to pocket some money, but savvy folks will wait and watch to see if you boys do get a real conference scheduled.
We're moving forward massively, and I would love to take all of you with me - that's been the offer on the table, but now we're closing out this particular methodology and moving into a larger format.
That ugly word
retail is the real isue isn't it, boys? With the few reps you have left I would say massive is quite a misnomer.
To those I don't connect with - my sincerest best wishes for your future.
God Bless You,
Jack Weinzierl
Yes, now, that many are out $20,000.00 or much more, Jack and Tim are off on their next "one idea." Many reps are dealing with staggering losses and are part of a trail of devastation and destruction Tim and Jack have left in their wake.
Soapboxmom
Posted: Thu Nov 29, 2007 2:58 pm
by soapboxmom
Timmy has been praying again and the hilarious result is a page on advantageconferences.com.
From the desk of Tim Darnell, President of Advantage Conferences
Attacks are to be expected. I really have nothing to complain about – followers of Christ who go into an unfriendly country or region virtually always experience persecution. Mine is mild compared to the attacks that occur daily in other parts of the world, including beatings, torture, and murders.
There have never been and never will be any attacks against Christianity or Christians. Why do you keep making fictitious claims like that?
Virtually all attacks against me and Advantage Conferences have come from two women who hate capitalism, despise home based businesses, and abhor people who share their faith in Christ in the marketplace. My company fits all three of those categories. Both women, and less than a handful of individuals who consort with them anonymously, are good candidates for your and my prayers.
Tim is obviously math challenged. There have been many reps on the Scam.com thread sharing. I have communicated with many more. Some will not come on the thread and post because they are one of those Tim has sent one of his personal Cease and Desist Letters to or threatened on a phone call. They are often financially devastated and don't want to risk Tim filing a lawsuit against them or bad mouthing them. Tim should be praying about finding a way to help them recover.
One of these women is a Scam buster from Texas. Ms. Scam buster has operated her bashing business anonymously for several years, until her identity was finally brought to light in late September, 2007. She has been doing everything in her power to denigrate and belittle Advantage Conferences’ products, our training, and the values for which we stand. She has consistently assassinated my character, while directing the same ugly rhetoric toward our top Representative and my good friend in Christ, Jack Weinzierl.
Sorry, but I don't like to see people lose thousands of dollars and face bankruptcy, foreclosure, hunger, loss of personal possessions and worse the loss of their faith and trust in their fellow man.
Most of her activity has been crude, sophomoric, deprecatory and malicious Internet postings under the moniker, SoapBoxMom. Ms. Scam buster, the other woman, or both, have seen fit to make a multitude of slanderous telephone calls as well to many people in my life - my Pastor, Speakers that we’ve invited to our conferences, Company vendors, my Parents, my Wife’s Parents, the Hotels we’ve used, and countless Representatives at AC. She has literally stalked me and our top Representatives, taking pictures in an effort I suppose to try to prove her ridiculous allegations that I’m a con-man and the company is bogus, fraudulent, and about to go bankrupt, to mention a few of the accusations.
I will continue to contact the pastors, reps and whoever else could benefit from knowing the truth about Advantage Conferences.
She has taken court records and posted everything she can possibly find about me. She takes anything said about or done by our Company and twists the truth of the matter in an attempt to make every aspect look shady and evil. She’s illegally attended our calls which require a membership purchase; and which, by the way, is illegal theft of a service. That is the least of actionable offenses she has now committed.
Anyone who is considering spending $9,995.00 or $11,995.00 plus thousands more in attendance, business and advertising costs needs to know everything.
I take it you have something to hide. Why would you not want as many people as possible on the calls to increase AC's exposure and bring in new reps? I know Jack tells folks to e-mail you, Tim to find out what to say on the calls. Just what is it you are afraid someone will hear? You would be quite surprised to know who is on the calls.
All this, yet she’s never bothered to call me or talk to me face to face. I’ve never met her (that I know of) and would not recognize her if I saw her. Reports by individuals from other companies who know her state that her dubious career path apparently started with a bad experience in a well-known direct sales Company also based in the Dallas area – a Company I highly respect – Mary Kay Cosmetics – a truly incredible success story in the history of American business. She apparently has since been on a tirade against several direct sales companies - a response prompted by Ms. Scam buster's own business failure. I’ve seen this phenomenon before: people who fail at an enterprise love to place the blame on the companies or the top money earners, who are always the target. They’ll also find others who have quit to spend time commiserating, placing blame on anybody but themselves.
So, you have never seen me and have no idea what I look like, but you in the recent past said:
her efforts, which have actually included her literal stalking of our homes, my attendance at recreational events....has physically followed us on multiple occasions, taken pictures of our homes, taken pictures of our vehicles (why – I have no idea), our families....Stalking (I naively thought that just occurred on television)...Organized Attacks ....Death Threats.....
Tim is obviously lying about everything. If I was stalking his home he would have called the Allen Police and have pictures. If I was following him everywhere he would be able to identify me. If there are any death threats he needs to go to the Allen Police department like I did and demand they be investigated. The police take those things very seriously, but they can't investigate Tim's delusions, now can they?
I was never a rep for Mary Kay or any MLM at any time. Tim again is lying to try to gain his rep's sympathy. He wants to paint me as a disgruntled ex rep who has a grudge instead of the consumer advocate that is only interested in service to others that I am. Again, I never repped for Mary Kay or any other company. I blame the abysmal compensation plans of Advantage Conferences and Mary Kay for the failure of the reps. I never blame the hard working, honest reps. You Tim place the blame for the 98% loss rate AC has on the reps shoulders, when it is entirely your doing. Then, if blaming the reps isn't bad enough, you have the audacity to say their lack of faith is to blame for their failure. Blaming God is certainly quite a sickening avenue to take.
What is striking and truly sad is how someone could spend a single day, or in this instance, their entire life on a path of malicious destruction. Ms. Scam buster seemingly has nothing productive to do other than to bash people with whom she doesn’t agree. I don’t mind disagreements or even objections about what I do. However, she makes outlandish assertions with obviously very little understanding about our business, our industry, our products, and especially about me personally. Thankfully, her smug, know-it-all comments have always been, not only incorrect, but also so biased that most easily see through her misdirected agenda.
My only agenda is to see no one else gets harmed by Advantage Conferences. You, Tim and Jack pocket $11,995.00 from the reps you con. I gain nothing financially from what I do. It has cost me a great deal of time and money to see the public has the information to make an informed decision regarding the AC opportunity.
I don’t bother to monitor the postings, although from time to time I’ll hear snippets from friends and AC Reps about Ms. Scambuster's latest hate initiative. I know that she’s consistently predicted we would go out of business; she gloats that the Company is broke; and is sure to include rhetoric about people leaving in droves, and I’m filing bankruptcy, etc. I’m sure she is disappointed that her predictions with definite timelines of doom and gloom for us over the years have, embarrassingly for her, failed to materialize. She’s made the accusation that I’m not a United States citizen and that I took my former company, All-Star Entrepreneur into bankruptcy. The fact is I am indeed an American citizen; and my former company went out of business almost a year after I had resigned as President – long after I started Advantage Conferences. I was long-gone as an officer of that company when it declared bankruptcy.
Timmy, didn't you just forbid your reps to read Scam.com and Quatloos.com? So, now they are passing along information to you from these sites? And Tim folks can read your Affidavit here:
http://quatloos.com/Q-Forum/viewtopic.php?t=450,so You are only a citizen when it suits your purpose.
Let's do talk about All Star since you were the Founder, President, CEO, 33% owner and registered agent. Most of the 1.3 million in debt was accrued under your watch as President at your home address and you happily made a creditor's claim in the bankruptcy filing.
http://www.scam.com/showpost.php?p=397038&postcount=69
Arizona Corporation Commission
State of Arizona Public Access System History Corporate Inquiry
File Number: L-1002047-8
Corp. Name: ALL-STAR ENTREPRENEUR, LLC
Domestic Address 460 W NUTTALL AVE
CENTENNIAL PARK, AZ 86021
Statutory Agent Information Agent Name: CLAUDIA CAWLEV
Agent Address:
460 W NUTTALL AVE
CENTENNIAL PARK, AZ 86021
Agent Status: APPOINTED 09/10/2001
Agent Last Updated:
Additional Corporate Information Business Type: Corporation Type: DOMESTIC L.L.C.
Incorporation Date: 09/10/2001 Corporate Life Period: PERPETUAL
Domicile: ARIZONA County: MOHAVE
Approval Date: 09/10/2001 Original Publish Date: 11/05/2001
Dissolution/Withdrawal: ARTICLES OF TERMINATION Dissolution/Withdrawal Date: 05/06/2002
Member Information TIMOTHY S DARNELL
MANAGER
1513 HOME PARK DR
ALLEN, TX 75002
Date of Taking Office: 09/10/2001
Last Updated: 09/13/2001
Name Changes / Mergers Description Corporation Name Date
CHANGED FROM ALL-STAR ENTREPRENEURS, LLC 09/28/2001
Microfilm Location Entered Description
1-1486-019-048 09/10/2001 ARTICLES OF ORGANIZATION
1-1493-005-007 09/28/2001 AMENDMENT
2-0290-058-039 11/05/2001 PUBLICATION OF ARTICLES OF ORGANIZATION
2-0296-006-030 12/03/2001 PUBLICATION OF ARTICLES OF ORGANIZATION
2-0296-006-031 12/03/2001 PUB OF AMENDED ARTICLES OF ORGANIZATION
1-1534-013-010 05/06/2002 ARTICLES OF TERMINATION
http://ecpa.cpa.state.tx.us/coa/serv...ID=10304386682
Quote:
Corporation Search Results
Franchise Tax Certification of Account Status
Company Information: ALL-STAR ENTREPRENEUR LLC
336 E ACADEMY DR
CENTENNIAL PARK, AZ 86021-
Status: NOT IN GOOD STANDING
Registered Agent: GARY A ARMSTRONG
6440 N. CENTRAL EXPY, STE 203
DALLAS, TX 75206
Registered Agent Resignation Date:
State of Incorporation: TX
File Number: 0800083507
Charter/COA Date: May 13, 2002
Charter/COA Type: Charter
Taxpayer Number: 10304386682
--------------------------------------------------------------------------------
Susan Combs
Texas Comptroller of Public Accounts
Window on State Government
July 12, 2007
CERTIFICATE OF ACCOUNT STATUS
This is in response to your inquiry about the status of
ALL-STAR ENTREPRENEUR LLC
This corporation is not in good standing as it has not satisfied all state tax requirements.
If you need any additional information or assistance, please contact the Texas State Comptroller's field office in your area or call 1-800-252-1381, toll free, nationwide. The Austin number is 512-463-4600. If you are calling from a Telecommunications Device for the Deaf (TDD), the toll-free number is 1-800-248-4099, or in Austin, 512/463-4621.
http://ecpa.cpa.state.tx.us/coa/serv...ID=15623777008
Quote:
Company Information: ADVANTAGE CONFERENCES LLC
1513 HOME PARK DR
ALLEN, TX 75002-4585
Status: IN GOOD STANDING NOT FOR DISSOLUTION OR WITHDRAWAL through November 15, 2007
Registered Agent: TIMOTHY SPENCER DARNELL
1513 HOME PARK DRIVE
ALLEN, TX 75002
Registered Agent Resignation Date:
State of Incorporation: TX
File Number: 0800218196
Charter/COA Date: June 26, 2003
Charter/COA Type: Charter
Taxpayer Number: 15623777008
--------------------------------------------------------------------------------
Susan Combs
Texas Comptroller of Public Accounts
Window on State Government
From the All-Star website:
CONTACT INFORMATION
Mailing Address
All-Star Entrepreneur
6700 Woodlands Parkway, Suite 230
The Woodlands, TX 77382
Product Fulfillment & Customer Service Address
All-Star Entrepreneur
1812 West Sunset Blvd. #4-614
St. George, Utah 84770
Telephone
(800) 901-1611
FAX
(214) 242-2404
General Email Address
homeoffice@allstarbiz.com
Executive Email Addresses
Glenn Green, CEO -
glenn@nuvsionmedia.com
Claudia Cawley, CFO -
claudia@cpaz.net
Cody Morgan, COO -
cmorgan10@houston.rr.com
From the bankruptcy filing:
CREDITOR'S NAME AND MAILING ADDRESS
INCLUDING ZIP CODE
AMOUNT OF CLAIM
DATE CLAIM WAS INCURRED AND
CONSIDERATION FOR CLAIM.
1513 Home Park Dr
Allen, TX 75002
Tim Darnell
DISPUTED
Advances $7,686.62
Claudia Cawley
2003-2004
Advances and expenses $101,247.46
(NOT DISPUTED)
Glenn Green 6/2003 through 10/30/2003
Former president of Debtor
d. List all financial institutions, creditors and other parties, including mercantile and trade agencies, to whom a financial statement was
issued within the two years immediately preceding the commencement of this case by the debtor.
Glenn Green 6/2003
25003 E. Manor Circle
Spring, TX 77389
b. If the debtor is a corporation, list all officers and directors of the corporation, and each stockholder who directly or indirectly owns,
controls, or holds 5 percent or more of the voting or equity securities of the corporation.
Portfolio Marketing Group, LLC (Tim Darnell)
Resigned as President/CEO 6/16/03 33.1/3 %
1513 Home Park Drive
Allen, TX 75002
Registered Agent
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
IN RE: All-Star Entrepreneur, LLC CASE NO 04-36623-7
CHAPTER 7
STATEMENT OF FINANCIAL AFFAIRS
Continuation Sheet No. 7
Dynamic Marketing Group, LLC
President & CEO 66-2/3%
336 E. Academy Drive
Centennial Park, AZ 86021
NAME, ADDRESS AND TITLE DATE OF TERMINATION
¨
b. If the debtor is a corporation, list all officers, or directors whose relationship with the corporation terminated within one year immediately
preceding the commencement of this case.
Majestic Quest Corp. 3/31/03
PO Box 651
Centennial Park, AZ 86021
(Elizabeth Knudson)
http://www.talkshoe.com/talkshoe/web...d=25533&cmd=tc
Tim claims in this audio (at the 30 minute mark) that there was collusion and embezzlement to the tune of $400,000 on the part of his partners over a 2 and 1/2 year period. All-Star incorporated in September 2001 in Arizona and dissolved there in May 2002. Several days later All-Star appears as a corporation in Texas in May 2002. Tim resigned as President and CEO of the company he says he founded in June 2003, but remained a registered agent and 33% owner. So, there was no 2 and 1/2 year period for this embezzlement to take place. Timmy boy happily incorporated with these ladies in Texas in May 2002.
In March 2003 Elizabeth Knudson the other 33% owner left giving or selling her shares to Claudia Cawley, so she wasn't there long enough to have been involved in that 2 and1/2 years "collusion and embezzlement." Poor little Timmy whines that he was outvoted, but as Tim's home address was the address of the business until he resigned as president in June 2003 and presumably the money was in his hands. Glenn Green was the president after him for a whopping 4 months until October 2003, but was not a shareholder at any time. Green asked for a financial statement in June 2003 when he started his 4 month run as president. If he had already embezzled the $400,000 as Tim describes in the audio below and had access to the accounts and money he wouldn't have needed the financial statement.
http://www.youtube.com/watch?v=vuX59K4xM2E
Tim makes a claim in the amount of $7686.62 for advances in the bankruptcy filing, which is disputed. He doesn't care that almost 100 reps suffered catastrophic losses---many of them out $12,295.00. Claudia Cawley makes a claim for $101,247.46 which is not disputed. That says it all. Tim never makes any claim relating to the fictional $400,000 grand embezzlement. Tim can't keep his lies straight. Did the ladies embezzle the money over a 2 and 1/2 year period or did the infamous Glenn Green come in as President and CEO after Timmy left and claims he was not involved at all and steal the 400 grand while Claudia Cawley cheered him on and herself didn't bother to mention it? Tim is desperately trying to justify why he left after much of that 1.3 million disappeared and started his new scam Advantage Conferences. He has to justify complaining about the Better Business Bureau linking the records of the Titanic All-Star he also founded and was president and CEO of as is the case with Advantage Conferences.
We should note that this embezzlement is a criminal matter that carries a felony charge with up to ten years in prison and fines. This unlike his fictitious civil suit would involve a grand jury indictment. He could have also sued civilly over this or included it in the bankruptcy filing. Why is it Mr. Litigious did not take any action other than to whine about it onstage, in interviews and his silly Slay Your Giant book. We get a good laugh out of that book because he claims sure victory against the BBB when it was a in reality a devastating loss that resulted in that hilarious Writ of Garnishment. He also mentions the Hidden Treasures product that God gave him that immediately bombed and cost reps thousands in lost commissions. I sure wouldn't want anyone to read that book if I was Timmy.
As for Reps leaving in droves, one should ponder a simple question, “do representatives for companies quit?” Of course they do. It is a fact of life, the rule more than the exception, and it is true in any and every business and any and every industry where sales exist. They quit in real estate, insurance, home improvement products, cellular sales, financial services, mortgage financing offices, retail stores, multi-level marketing, and any and every industry or company that employs, hires, or contracts with sales people.
Your reps leave because they are bleeding money they don't have. Many left because of what was going on in your venture and they didn't want anyone else to get hurt as they were. I take bankruptcy, hunger, foreclosure, sale of personal items and the other dire consequences reps suffered very seriously. There is quite a trail of devastation from AC.
You discussed 303 reps in the early court papers. Jack mentioned 500 reps with 300 conference purchasers on the Advantage Conferences threads. Today we see 155 in Jack's yahoo group and only 50 some odd replicated websites. I have been told that most of those folks are long gone or no longer active. The abysmal attendance at the last 2 conferences clearly supports that.
They quit other institutions as well. For instance, it is well known that one out of two marriages end in divorce. One or both partners chose to quit. Quitting is, unfortunately, a way of life for far too many people. It happens at Advantage Conferences. It happens everywhere. I don’t care for that reality, but it is indeed the reality of business and all organizations for that matter. Many of the accusations I hear are indictments of our collective shortcomings, not something intrinsically, or diabolically as Ms. Scam buster would have you believe, wrong with our Company.
There is quite a lot wrong with Advantage Conferences and its top people. Remember that Court case where you mention the indictment and penalty of $405,000.00. Well, civil things like the one instance of libel you claimed do not result in indictments. So I would love to see the pages from your testimony in front of the grand jury---you know the folks that hand down those indictments. And since you are so interested in the truth I must insist for the millionth time you provide the case number and amount of monthly payout so we can confirm the existence of this phantom suit you keep referencing. Tim, God is watching and we are all waiting for that.
Sales Reps who understand that the sale of any product requires time to build up a client base and time to create profits – those who understand this fact and stand the test of time are the ones who are successful. This is no mystery – no secret. We teach on that very fact constantly. We all have heard the schoolyard maxim as kids, yet too few adults retained this simple message, “Winners never quit, and quitters never win.”
Your reps understand that they signed up to make $100,000.00 to $1,000,000.00 their first year. They were told they must be expecting to make $100,000.00, the goal was to make $100,000.00 with the potential to make much much more and that one could add a zero to their current monthly income and expect to make that every month. So, you reps didn't just quit. They had to stop the financial bleeding and then see no one else gets hurt by this dishonest venture.
In any event, I actually count it a privilege to be the brunt of the multifarious lies and hatred. If you are a believer in Christ and take time to read Scripture on a regular basis, you know that fierce opposition is an expected reality when the choice is made to represent Christ and boldly speak about the gospel amidst a hostile environment.
Hello----earth to Timmy. For the billionth time no one ever has or will attack Christians or Christianity. Your bum business is the only thing that is being attacked.
Your Questions:
If you have a question about anything regarding my business, me personally, or any postings that you have a concern about, I welcome a call or e-mail from you. I would be honored to talk with you one on one. Our office phone number is: 972-727-4995 or toll-free, 1-888-832-7635. You can also e-mail me at:
TimD@AdvantageConferences.com
Yes, folks should be asking a lot of questions!
We are building a wonderful business at Advantage Conferences. The process has not always been easy, certainly – business never is. But the journey has been tremendously rewarding as we continue to see lives changed across the globe. At this writing, we are half-way through our fifth full year in business and have great enthusiasm and excitement about our continued growth and the future of this Company and our excellent Rep Team.
Recruitment is at a standstill. The few reps left see AC as their church home or are among the desperate to recoup their investments.
The Apostle Peter says, “Who is going to harm you if you are eager to do good? But even if you should suffer for what is right, you are blessed. Do not fear what they fear; do not be frightened. But in your hearts set apart Christ as Lord. Always be prepared to give an answer to everyone who asks you to give the reason for the hope that you have. But do this with gentleness and respect, keeping a clear conscience, so that those who speak maliciously against your good behavior in Christ may be ashamed of their slander.” I Peter 3:13-17a
Timmy and Jack do have much shame to bear.
Christ died for me and He died for you. He also died for Ms. Scam buster and her friends that they should have life. She should know that and be heartened by that incredible message. I pray for her daily.
God is good - and I thank you for your attentiveness in reading this message.
Tim, pray about how you are going to refund all those reps in All Star and Advantage that are out thousands and deperate for some financial help.
Soapboxmom
Posted: Sat Dec 01, 2007 8:13 pm
by soapboxmom
Texas Deceptive Trade Practices-Consumer Protection Act
The Texas Deceptive Trade Practices-Consumer Protection Act ("DTPA") was enacted on May 21, 1973. The full text can be found starting at section 17.41 of the Texas Business and Commerce Code. The primary purpose of the DTPA is to protect consumers against false, misleading, and deceptive business and insurance practices, unconscionable actions, and breaches of warranty. It does so by prohibiting certain acts and practices that tend to deceive and mislead consumers.
The DTPA provides for both public enforcement and private remedies. Public enforcement is done by the Texas Attorney General, who can seek a court order prohibiting further deceptive practices. A private citizen may seek redress for damages caused by certain specific acts and practices listed in the DTPA.
Because the DTPA is very broad and is constantly being interpreted by the courts, it is impossible to explain its complete meaning and impact in this short handbook. If you believe that you are the victim of a deceptive trade practice, please consult an attorney.
Which Transactions Does the DTPA Apply To?
Most consumer transactions are covered by the DTPA. Although the DTPA does not cover every deceptive or unconscionable act or practice, it is quite broad. The DTPA provides that "false, misleading, or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful."
The DTPA prohibits certain acts or practices "in the conduct of any trade or commerce." This is a very broad provision. "Trade and commerce" means "the advertising, offering for sale, lease, or distribution of any good or service, or any property, tangible or intangible, real, personal, or mixed, any other article, commodity, or thing of value wherever situated, and shall include any trade or commerce directly or indirectly affecting the people of this state." The term "goods" includes tangible things or real property purchased or leased for use. The word "service" includes work, labor, or services purchased or leased for use, including services furnished in connection with the sale or repair of goods. The DTPA does not apply to the rendering of a professional service, the essence of which is the providing of advice, judgment, opinion or similar professional skill. "For example, an accountant can probably not be held liable for violating the DTPA if they give the wrong opinion. However, professionals can violate the DTPA by making misrepresentations of fact or breaches of warranty. For example, if an accountant lies about his qualifications to attract business, a customer probably has a DTPA claim."
The term "unconscionable" appears frequently in the DTPA, and in this handbook. The DTPA defines an "unconscionable action" as one that "takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree."
So what does this all mean? The DTPA has a very broad application. The DTPA can be used by someone that is charged for an unnecessary $50 car repair; it can be used by someone buying a used car; it can be used by a homeowner buying a home; it can be used by a small business purchasing materials; it can be used by a business buying a $400,000 franchise; and it can be used in all transactions in between. Simply put, the DTPA was enacted to protect consumers in small transactions and businesses in rather large transactions.
Who Is Entitled To Protection Under the DTPA?
Other than the Texas Attorney General, only consumers are allowed to file under the DTPA. The phrase "consumer" means an individual, partnership, corporation, or governmental entity who seeks or acquires by purchase or lease any goods or services. It does not cover a business consumer that has assets of $25 million or more or that is owned or controlled by a corporation or entity with assets of $25 million or more.
The Element of Knowledge or Intent
The DTPA makes many practices illegal without requiring proof that the defendant intended to do something wrong or illegal. Unless the section involved requires otherwise, the consumer is not required to prove that the defendant ":intentionally" or "knowingly" violated the DTPA. This makes it easier to prove a violation of the DTPA, and provides a strong incentive for sellers of goods and providers of services to refrain from engaging in the prohibited acts and practices.
Nevertheless, the DTPA provides that if a defendant acts "intentionally," the judge or jury may award the consumer "additional damages" in an amount not exceeding three times the actual damages suffered by the consumer.
What Is Included Within the "Laundry List" of Acts and Practices Made Illegal by the DTPA?
The DTPA contains a "laundry list" of specific practices that are prohibited. This laundry list is found in section 17.46(b) of the Texas Business and Commerce Code. It contains 25 acts that violate the DTPA and for which consumers may sue, if the consumers relied on the act to their detriment. These twenty-five acts are described on the following pages.
(1) Passing off goods or services as those of another.
It is illegal to advertise or represent goods or services under a different company than the company in which the good or services were made.
(2) Causing confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services.
This section prohibits acts that tend to confuse consumers. First, this section prohibits acts that tend to cause confusion regarding the source of goods or services. This section is broader than section (1) because the consumer need not prove that the defendant was actually "passing off" goods or services as those of another. Instead, all the consumer must show is that the defendant caused confusion regarding the source of the goods or services.
This section also prohibits acts that cause confusion regarding the sponsorship, approval, or certification of goods or services. It prohibits people from representing a product has the approval of an organization that has not really approved it. Certification is a formal process that often has significant meaning to consumers. Examples of certification includes various seals of approval, such as the Good Housekeeping Seal and the U.L. or Underwriters Laboratories certification for electrical products.
Was AC God, Christ and Better Business Bureau approved as Tim claimed???
(3) Causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another.
This section prohibits acts or practices that cause confusion regarding the affiliation or relationship between the seller of goods or the provider of services and some other organization or person. For example, this section prohibits business owners from giving the impression that their company is closely connected with another business or with the state government or an agency of the state government.
(4) Using deceptive representatives or designations of geographic origin in connection with goods or services.
This section prohibits people from stating that products come from a certain country or location when, in fact, they did not. This would include stating falsely that a certain wine is from France, a fine watch was made in Switzerland, or a certain coffee is made from beans grown in Columbia.
(5) Representing goods or services that claim to have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities but do not or a person claiming to have a sponsorship, approval, status, affiliation or connection but does not.
This section has two main parts: one concerning misrepresentations about goods or services and the other concerning misrepresentations about authority.
It is illegal to represent that goods and services have sponsorship or approval when they do not. This is similar to section (2) above. It is also illegal to represent that goods and services have characteristics, ingredients, uses, benefits, or quantities that they do not. For example, it is illegal to represent that a product is made out of steel when it is really made out of aluminum. Moreover, this provision forbids a salesman from telling you that goods have features that they do not have or that the goods can do things that they cannot do.
Misrepresentations about quantities include misstating the number of acres being sold in a real estate transaction and misstating the number of items contained in a box of candy. Misrepresentations about benefits of goods or services include misrepresentations about the ailments that a medicine can cure and the effect upon one's self after only three visits to a health spa. Misrepresentations about ingredients include stating that a product contains vegetable fat when it really contains animal fat.
This section also prohibits misrepresentations regarding the sponsorship, approval, status, or affiliation of an individual. It prohibits misleading and false statements about the nature and authority of a person. For example, an accountant may not claim to be a Certified Public Accountant if that person has not taken and passed the CPA exam. Also, physicians may not represent themselves as qualified specialists when they are not.
(7) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.This section covers statements made to induce a consumer to choose a certain item. It prohibits misrepresentations concerning certain specific quality or model designations. A very general statement, such as "this is a high quality product" or "this is a top-of-the-line model" may not violate this section, even if the good is of poor quality because the representation is too broad and too vague. But the statement that meat being sold is U.S. Choice when, in fact, it is only U.S. Good, or that certain electrical wiring or equipment has a wattage rating of 1000 when, in fact, the rating is 700, is probably a violation.
Were the speakers of the caliber you were expecting as they were kept secret until you paid?
8 Disparaging the goods, services, or business of another by false or misleading representations of facts.
A seller may not attempt to get your business by putting down a competitor, unless the negative comments are true. If a salesperson starts disparaging a competitive product, ask for proof to support the negative comments.
(9) Advertising goods or services with intent not to sell them as advertised.This section prohibits advertisers from using misleading advertisements to attract business. Perhaps the oldest technique of this kind is the so-called "bait and switch" -- a seller advertises a certain low-priced item but when a customer tries to buy that item, the seller talks the customer into buying a more expensive item by claiming that the lower-priced item is out of stock or is inferior.
(10) Advertising goods or services with intent not to supply a reasonable expectable public demand, unless the advertisement disclosed a limitation of quantity.
This section is designed to prevent one of the main methods by which unscrupulous sellers have employed the "bait and switch" technique. Some businesses advertise a certain product at a very low price, when in fact they have only a limited quantity of that product in stock. For example, a consumer enters a store specifically to purchase the advertised item ("bait") and the sales clerk tells them they're out of the item and suggests ("switch") a better product that just happens to be available. Sellers can avoid liability under this section by advertising the number of items on sale, or by indicating that quantities are strictly limited and that purchasers will be satisfied on a first-come-first-serve basis.
This section is also violated when a store with several outlets in the same metropolitan area fails to disclose that the sale item can be found only in one of its stores.
(11) Making false or misleading statements of fact concerning the reasons for, existence of, or amount of price reductions.
This section has three parts. The first prohibits misleading advertisements about the reasons for price reductions; for example, a store that advertises "going out of business sales" every few months.
The second also prohibits misleading statements about the existence of price reductions. A seller cannot advertise that prices are being reduced by 50 percent unless the item has previously been offered by the same seller at the stated regular price. Likewise, sellers cannot advertise that prices are marked 50 percent off suggested retail price unless the representation is accurate.
The third prohibits misrepresentations about the amount of price reductions. When a seller advertises "X percent lower prices," those representations must be true.
(12) Representing that an agreement confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law.
This section prohibits misrepresentations or false statements about a written contract. For example, a seller may not state that a contract contains a full warranty or a right to return the product when the contract does not have such a warranty or right. Similarly, when a person attempts to return a product based on the warranty, the seller cannot tell a consumer that the contract does not contain such a warranty. This provision is also violated when a seller sends threatening letters to a buyer claiming that the seller may repossess the property or force the forfeiture of the prior payments made for the goods when, in fact, the agreement confers no such rights. It is important to note that this section covers false statements regarding the rights conferred by the agreement or contract that are made at the time of the contract and even those statements that are made after the contract or sale has been signed or taken place.
Did you get the refund as promised? Did Tim honor the 100% guarantee he wrote of in the court papers? If Tim sold you a conference knowing you were unable to attend did he still give you the refund he promised?
(14) Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a consumer transaction.This section is designed to prevent salespeople from misrepresenting their ability to commit their employer to the terms of a purchase contract. For example, it is illegal for automobile salespeople to agree to sell a car for a certain price, say that they need to check with their boss, and then say that the boss will not agree to that price, but will agree to a price of $500 higher.
Were you burned in under the table deals where you were promised folks would be placed under you and were not or folks were to upgrade and didn't?
18 Using or employing a chain referral sales plan in connection with the sale, or offer to sell, of goods, merchandise, or anything of value, which uses the sales technique, plan, arrangement, or agreement in which the buyer or prospective buyer is offered the opportunity to purchase merchandise or goods and, in connection with the purchase, receives the seller's promise or representation that the buyer shall have the right to receive compensation or consideration in any form for furnishing to the seller the names of other prospective buyers if receipt of the compensation or consideration is contingent upon the occurrence of an event subsequent to the time the buyer purchases the merchandise or goods.The chain-referral sales device has been used in many different forms, including promotions of swimming pools, home siding installation, and home encyclopedia sales. An unreasonable price that the consumer normally would not pay for the merchandise is somehow made acceptable by the promise that the buyer will receive a price reduction for each prospective buyer whose name and address is supplied to the seller. A crafty salesperson using this technique will create the impression that consumers are going to get some kind of tremendous discount after all the people whom they have listed as prospects are contacted by the seller, without disclosing to the buyers that they will get these discounts only if certain things happen after they have committed himself to the transaction. Usually, the buyers are given the impression that they are going to get credit for all of the sales, but then none of the sales occur and the consumers are stuck with higher prices.
(19) Representing that a guaranty or warranty confers or involves rights or remedies which it does not have or involve; provided however, that nothing in this subchapter shall be construed to expand the implied warranty or merchantability as defined in Section 2.314 and 2.318 of the Business and Commerce Code to involve obligations in excess of those which are appropriate to the goods.
If a salesperson says that you have certain warranty rights when you purchase an item, and you later discover you have no warranty rights, this section probably has been violated.
(20) Selling or offering to sell, either directly or associated with the sale of goods or services, a right of participation in a multi-level distributorship. As used herein, "multi level distributorship" means a sales plan for the distribution of goods or services in which promises of rebate or payment are made to individuals conditioned upon those individuals recommending or securing additional individuals to assume positions in the sales operation, and where the rebate or payment is not exclusively conditioned on or in relation to proceeds from the retail sales of goods.
This section concerns multi-level distributorships or "pyramid sales plans." A "multi-level distributorship" occurs when a person involved in a sale or distribution is expected to solicit others to sell or distribute, forming multi-levels of distribution. Included in these levels is the promise that the initial person receives not only a percentage or commission for goods sold but also receives a certain rebate or commission based on the number of persons signed up, forming a sales "pyramid." These schemes create the false impression that one can get rich merely by signing up a number of people in the program who will then in turn have an incentive to sign up a number of people below each of them, without ever really having to sell any products. These schemes almost always fail, and you run the risk that you are participating in an illegal scheme. If someone approaches you with a pyramid scheme, contact your local Better Business Bureau, the nearest office of the State Securities Board, the nearest Attorney General's Office, or your own attorney to determine whether it is legal. NO retail sales of the conference = endless selling chain/ pyramid scheme. No one makes money unless they recruit. Hence the $7000 over and over and over again----or not!
(22) Filing suit founded upon a written contractual obligation of and signed by the defendant to pay money arising out of or based on a consumer transaction for goods, services, loans, or extensions of credit intended primarily for personal, family, household, or agricultural use in any county other than in the county in which the defendant resides at the time of the commencement of the action or in the county in which the defendant in fact signed the contract; provided however, that a violation of this section shall not occur where it is shown by the person filing such suit he/she neither knew nor had reason to know that the county in which suit was filed was either the county in which the defendant resides at the commencement of the suit nor the county in which the defendant in fact signed the contract.
This section prohibits "distant forum abuse." Companies sometimes make a promissory note payable in a city far away from the place where the consumer resides. To fall under this section, you must have signed a "written obligation," such as a contract, invoice, or promissory note. Also, the transaction must be a "consumer transaction," which includes purchases and loans or extensions of credit. The key factor in determining whether a transaction is a "consumer transaction" is whether the money loaned or the goods or services provided are "intended primarily for personal, family, household or agricultural use." If you bought a car for personal or family use in El Paso, or a television set for household use in Houston, and you live in one of those counties, you cannot be sued in Dallas for the unpaid balance on those purchases, even if the documents that you signed state that your payments are due and payable in Dallas, Dallas County, Texas.
(23) The failure to disclose information concerning goods or services known at the time of the transaction and was used to induce the consumer into a transaction whom otherwise would not have entered had the information been disclosed.This section prohibits a seller from failing to disclose information known by the seller at the time of the transaction if such withholding of information is intended to induce the consumer into a transaction, and if the information is such that had the consumer known it at the time of the transaction, the consumer would not have made the purchases. However, if the information which is not disclosed by the seller would be unimportant to the consumer, or if the seller does not intend to induce the consumer to make the purchase by such omission, there is no violation of the statute. For example, the section may be violated by a homeowner or real estate agent who knows that the home has foundation damage but fails to disclose that to a potential buyer, or when an auto dealer knows that a car has been in a wreck and fails to disclose that to the potential buyer.
(24) Using the term "corporation," "incorporated," or an abbreviation of either of those terms in the name of a business entity that is not incorporated under the laws of this state or another jurisdiction.
A company cannot state or indicate that it is a corporation if it is not. For example, a company that is not a corporation cannot call itself "______________, Inc." or "____________________ Corp."
Conclusion: Laundry List
Throughout this section about the "laundry list" of prohibited acts and practices, an attempt has been made to present easily understandable examples and to restate the statutory language in plain English. The descriptions are intended only for guidance in determining whether a DTPA has occurred. But facts and circumstances vary. To determine whether you have a right to sue, consult an attorney. Even if an act or practice seems to be covered by the DTPA, and even if your attorney has advised you that the practice is covered it is possible that the court, in interpreting the DTPA, may rule against you. You should consider and discuss this possibility with your attorney.
What Remedies Are Available Under the DTPA?
If you feel that a DTPA violation has occurred, what are your remedies?
The remedies of the DTPA are not exclusive. Instead, they are in addition to remedies provided in other laws. In fact, violations of certain other laws may also constitute violation of the DTPA. You may not, however, recover under the DTPA and under some other law for the same alleged wrong. In other words, you cannot recover twice for one violation.
Remedies under the DTPA may not usually be waived, and an attempt to make a consumer waive DTPA remedies is expressly made void and unenforceable unless specific requirements are met. This provision is particularly important when consumers buy goods "As Is." Often, consumers may still be able to recover under the DTPA even if the consumer buys the goods "As Is." If you have such a situation, you should seek the advice of an attorney.
Public Remedies
The DTPA provides both public and private remedies for violations. Public remedies are those enforced by the Consumer Protection Division of the Texas Attorney General's Office. Public remedies include temporary restraining orders, temporary or permanent injunctions, and monetary penalties of up to $2,000 per violation but not to exceed a total of $10,000. The courts are further authorized to enter orders or judgments necessary to compensate identifiable persons for actual damages caused by their wrongful acts. In the event the person ordered to make restitution fails to do so within three months from the date of the order, the court may appoint a receiver or take possession of the assets of the person violating the order. Anyone found guilty of violating an injunction shall forfeit and pay to the state a civil penalty of not more than $10,000 per violation, not to exceed $50,000.
The DTPA authorizes local district and county attorneys to provide assistance to the Consumer Protection division in the commencement and prosecution of such actions. All of those authorities, however, must notify the alleged violator at least seven days prior to instituting an action and inform the alleged violator in general terms of the alleged unlawful conduct.
The DTPA provides an exemption for certain advertisers such as newspapers, magazines, radio stations, etc., except when the advertiser has actual knowledge of the false statements or has a substantial financial interest in the transaction.
Anyone wishing to report an activity believed to be in violation of the DTPA and subject to the above described public remedies, should contact the Consumer Protection Division of the Attorney General's Office in Austin, Texas, or in larger cities, contact the local Attorney General's Office.
Private Remedies
Let's use an example to illustrate. Assume you prove economic damages in the sum of $3,000. Let's further assume it was proved that the conduct of the violator was "knowingly" committed. The court or jury could then award a maximum amount of three times the economic damages. Therefore, in this example, a maximum damage recovery could be obtained in the sum of $9,000, plus mental anguish damages, court costs and attorney's fees.
Before filing a DTPA lawsuit, a consumer must first give written notice to the alleged violator, advising the violator of the consumer's specific complaint and the amount of actual damages and expenses, including attorney fees, if any, reasonably incurred by the consumer in asserting the claim. The alleged violator has 60 days to respond; suit should not be filed during this 60-day period. But there are two exceptions: the first when it is necessary to immediately file suit in order to prevent the running of a statute of limitations, and the second when the consumer asserts the DTPA claim as counterclaim in an existing suit.
The alleged violator may, within 60 days from receipt of such notice, offer the consumer a written offer of settlement including an offer to reimburse the consumer for the attorney's fees, if any, reasonably incurred in asserting the claim up until the date of the notice. If a prior notice is not required to be given because of one of the two exceptions described above, the alleged violation may tender such settlement offer within 60 days after the service of the suit or counterclaim.
The consumer has the option of accepting or rejecting the settlement offer. In the event the consumer takes no action for 60 days after receipt of such settlement offer, the offer is deemed to have been rejected. A rejected settlement offer may be filed with the court together with an affidavit certifying its rejection. If the court finds that the amount tendered in the settlement offer is the same or substantially the same as the actual damages found, then the consumer may not recover an amount in excess of the tendered amount or the amount of actual damages found, whichever is less. The DTPA specifically provides that a tender of a settlement offer is not an admission of guilt and may be used only to determine the reasonableness of the offer.
Mediation
After a DTPA lawsuit is filed, the consumer or the defendant may obtain a court order requiring mediation of the case. If a defendant makes a settlement offer at mediation or soon thereafter and the offer is rejected by the consumer, the court can limit the consumer's recovery at trial.
If mediation is not requested, the defendant has a second opportunity to make an offer of settlement. The defendant may make the offer up to 90 days after the answer to the consumer's suit is filed. Then, the consumer has the option to accept or reject the offer, as set forth above.
Defenses
The consumer may face certain defenses and even be liable for certain damages if he or she loses the lawsuit. If the court finds that an action by a consumer was groundless and brought in bad faith or brought for the purpose of harassment, the court shall award to the defendant reasonable and necessary attorney's fees in defending the action plus all court costs.
As discussed above, a finding that a settlement offer is the same or substantially the same as the actual damages found, will constitute a defense to the additional damage provisions of the DTPA. Further, an offer made by the defendant within the 60-day period of the full amount claimed including expenses and attorney's fees constitutes a complete defense to a lawsuit by the consumer.
How Long Can You Wait to File a Suit?
A DTPA lawsuit generally must be filed within two years after the date on which the false, misleading, or deceptive act or practice occurred. If the deceptive act took place over a period of time, then, to be safe, you should begin suit two years from the date of the first such action. Some violations of the DTPA, by their very nature are concealed or difficult to detect. In these cases, the consumer has a longer time within which to file suit; two years after he or she discovered, or in the exercise of reasonable diligence should have discovered, the occurrence of the false, misleading, or deceptive act or practice.
Finally, there is a special provision stating that, if the consumer proves that failure to begin the lawsuit within these time limits was caused by the defendant knowingly engaging in conduct solely calculated to induce the consumer to refrain from or postpone the commencement of the suit, the right to file suit may be extended for an additional 180 days. In other words, if a violator of the DTPA strings you along by promising to make good, and does this intending to make you wait past the two-year time limit, and then "changes his or her mind" once the time limit has passed, he or she may not be able to get away with the trickery.
Questions regarding the statute of limitations or time limit for filing suit are often difficult and confusing. Consulting an attorney is strongly advised. Remember that you should make your demands for correction of the problem or violation right after you discover it. If you do not get your complaint satisfied within a reasonable period of time, and after giving the alleged violator a good faith opportunity to make good, you should promptly contact a lawyer to protect your legal rights. In general, two years is the absolute maximum allowed for filing suit, but you should never wait to take action until the last minute, because you might be wrong, and thereby lose your legal rights.
When Should You Consult a Lawyer to Protect Your Rights?
The safest and simplest answer to this question normally is "as soon as possible." If you wait too long, you can lose all of your legal rights.
However, you generally should first make reasonable effort to have the violator correct the problem. Send a letter demanding correction of the problem and making good on the damages you have suffered. Be as clear, specific, and factual as possible. Send the letter by certified mail, return receipt requested (or hand deliver it, and get a signed receipt), and be sure to keep a copy of the letter. Talk to the appropriate people in charge, without getting angry and shouting, calmly telling them why you feel you have been treated wrongly and explaining what should be done to remedy the problem.
Give the person or business to whom you are complaining an amount of time, reasonable under the circumstances, to make good. If they flatly turn you down, or seem to be "stringing you along" without actually doing anything, then you may have no choice but to take legal action.
Individuals (but not partnerships or corporations) may represent themselves without a lawyer. For very small amounts of damages you may be able to file suit and represent yourself in the small claims court. If you do this, you should obtain a copy of the Texas Young Lawyers Association's pamphlet, How To Sue In Small Claims Court, by writing to the address given on the back of this handbook.
Although you have the right to represent yourself, the Texas Young Lawyers Association strongly recommends that you hire an attorney to represent you on claims filed under the DTPA because the language and procedures of the DTPA are sometimes complex and may be confusing.
In order to provide an incentive for consumers to enforce their rights under the DTPA, the Act provides that a plaintiff who wins will recover the reasonable attorney fees incurred for bringing suit. This, plus the additional damages, is intended to encourage consumers with valid cases to seek legal correction. You should never file unfounded lawsuits. Litigation is expensive and you may have to pay, at the very least, court costs.
Further, as explained above, if you bring a groundless suit in bad faith or for harassment, you may have to pay the defendant's attorney fees.
If you do not know an attorney to handle your case, ask a friend or an associate for a recommendation. Also, you may locate one through your local Lawyer Referral Service listed in your telephone directory, or through the State Bar Lawyer Referral Service by calling (toll free) 1 800-252-9690.
This information is not intended to be a substitute for the legal advice of a licensed attorney. If you have any questions regarding a particular issue or topic we suggest you seek legal counsel.
The above information is adapted from the brochure "A Guide to the Texas Deceptive Trade Practices Consumer Protection Act," prepared by the Texas Young Lawyers Association and published by the State Bar of Texas. Contact Tammi Sweet at the State Bar of Texas at 1-800-204-2222 ext. 2610 for a copy of the publication.
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