In the Matter of the Complaint Against:

CHARLES SMITH,
10478 N.W. 3lst Terrace,
Miami, FL 33l72-l2l6;

CS ENTERPRISES,
10478 N.W. 3lst Terrace,
Miami, FL 33l72-l2l6;

AMCAN ENTERPRISES, INC.,
l0478 N.W. 3lst Terrace,
Miami, FL 33l72-l2l6

d/b/a NORTH AMERICAN DIRECTORIES,
or THE CALIFORNIA YELLOW PAGES,
6500 Wilshire Boulevard, Suite 500,
Los Angeles, CA 90048-4920;

NORTH AMERICAN DIRECTORIES
or THE CALIFORNIA YELLOW PAGES,
8205 Santa Monica Boulevard, Suite 1-300,
Los Angeles, CA 90046-5912;

NORTH AMERICAN DIRECTORIES
or THE CALIFORNIA YELLOW PAGES,
100 Hegenberger Road, Suite 210,
Oakland, CA 94621-1498;

NORTH AMERICAN DIRECTORIES
or THE ARIZONA YELLOW PAGES,
l702 West Camelback Road, Suite 400,
Phoenix, AZ 850l5-3347;

N.E. - U.S. DIRECTORIES, NORTH AMERICAN DIRECTORIES
or THE NEW ENGLAND YELLOW PAGES,
304 Newbury Street, Suite 427,
Boston, MA 02115-2832
and
P. O. Box 25 Boston, MA 02112-0025;

NORTH AMERICAN DIRECTORIES
or THE PENNSYLVANIA YELLOW PAGES,
1411 Walnut St., Suite 200,
Philadelphia, PA 19102-3102;

NORTH AMERICAN DIRECTORIES
or THE NEW JERSEY YELLOW PAGES,
115 Route 46, Building F,
Mountain Lakes, NJ 07046-1693

P.S. Docket No. 37/180

12/18/91

Mason, Randolph D., Administrative Law Judge

APPEARANCE FOR COMPLAINANT: Jerry Belenker, Esq., Consumer Protection
Division, Law Department, United States Postal Service,
Washington, DC 20260-1144

APPEARANCE FOR RESPONDENTS: Frank J. Shannon, Esq., 422 Candler Building,
127 Peachtree Street, N.E., Atlanta, GA 30303-1827

INITIAL DECISION

This proceeding was initiated on April 15, 1991, when the Postal Service filed a Complaint alleging that Respondents n1 are engaged in conducting a scheme or device for obtaining money or property through the mail by means of false representations in violation of 39 U.S.C. $S3005 and by means of solicitations in the guise of invoices which are nonmailable under 39 U.S.C § 3001(d). Specifically, the Complaint alleges in paragraph 8 that Respondents falsely represent, directly or indirectly, in substance and effect, whether by affirmative statement, implication or omission, that:

(a) The addressee has previously authorized a business listing in Respondents' telephone directory;

(b) The amount set forth on the face of the solicitation is due and owed to Respondents.

(c) Respondents are the publishers of the phone directory or "yellow pages" customarily supplied to business telephone subscribers in the recipient's area;

(d) The area of distribution of Respondents' directory will encompass all telephone subscribers in the region;

(e) Publication and distribution of Respondents' directory will take place in accordance with time frames customary to authorized "yellow pages" industry publication and distribution standards;

(f) Respondents also provide a free white-page listing.

(g) a directory has a wide distribution that covers thousands of businesses;

(h) a directory has thousands of headings of products and services;

(i) Respondents' directory has been "accepted" as having the most inclusive state-wide business to business directory;

(j) the cost of a listing in Respondents' directory is economical and significantly less than other directories;

(k) being included in Respondents' directory will expand the market potential of a business and be an asset to the growth of the business;

(l) being included in Respondents' directory will have an immediate impact on reaching businesses' customers and on potential customers;

(m) that Respondents' directory has a wide distribution that reaches the general public;

(n) Respondents' directory is distributed to government agencies, chambers of commerce, hotels, schools, and libraries;

(o) Respondents' directories reach over 500,000 businesses in 34 states.

Respondents Pennsylvania Yellow Pages and New Jersey Yellow Pages were added to the Complaint by Order of June 19, 1991, without 614.63