Beruflich Dokumente
Kultur Dokumente
5 COUNTY OF MARION
10 Respondents.
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12 1.
13 Respondents Coolest LLC and Ryan Grepper are doing or have recently done business
16 Portland-based inventor Ryan Grepper to promote his concept for a 60-quart cooler on wheels,
17 with a built-in heavy-duty blender, USB charger, and waterproof speakers. The product was
18 dubbed "Coolest Cooler." Kickstarter backers who pledged $185 plus $15 for shipping reached
19 a reward tier that earned them a cooler if Grepper was able to turn his prototype into a product
20 that could be shipped to backers. Grepper was successful in manufacturing and bringing the
21 product to the marketplace, and as of the signing of this document, he had fulfilled his
22 commitment to 38,979 of the 60,439 confirmed backers who funded the Kickstarter campaign.
23 2.
24 This Assurance of Voluntary Compliance ("AVC") is a settlement of a disputed matter
25 between Respondents and the Oregon Department of Justice (DOJ) acting pursuant to ORS
26 646.632, relating to specific representations (for shipping/delivery dates) made to Kickstarter
2 backers. This AVC does not resolve or in any manner waive, discharge, release or otherwise
3 limit investigation and litigation (private or public) relating to any other type of representation
4 that was, is, or may in the future be made by Respondents about the Coolest Cooler and the
6 3.
7 This A VC shall not be considered an admission of a violation for any purpose, and
9 business practices. Respondents enter into this AVC for the sole purpose of resolving DOJ's
10 concerns. Respondents and DOJ agree that no provision of this AVC operates as a penalty,
11 forfeiture, or punishment under the Constitution of the United States and the Constitution of the
13 4.
14 Respondents waive notice from the State of Oregon of the alleged unlawful trade
16 5.
17 Respondents understand and agree that this AVC creates joint and several liability in its
20 assigns, jointly and severally, while ading personally, or through any corporation or other
21 business entities, whose acts, practices or policies are directed, formulated or controlled by
22 Ryan Grepper.
23 6.
24 Respondents agree and understand that following acceptance of the AVC by DOJ, DOJ
25 may communicate directly with Respondents for the purpose of executing and enforcing the
26 terms of this af:,rreement, resolving future complaints, and conducting undercover investigations
2 Responsibility. However, neither this paragraph nor any other language contained in this AVC
3 is intended in any manner to be a waiver of Respondents' right to seek the advice and assistance
4 of counsel at any time or to direct DOJ to communicate with Respondents through specified
6 7.
7 Respondents understand and agree that if this AVC is accepted by DOJ, it will be held
9 determination by DOJ that Respondents have failed to comply with any terms of the AVC,
10 whether willful or not, DOJ shall promptly notify Respondents and Respondents' Oregon
11 counsel of record in writing of such circumstances and Respondents shall have ten (10) business
12 days from receipt of such written notice to provide a good faith written response to DOJ's
13 inquiry. If DOJ detennines that a violation has occurred and remains uncured, DOJ may submit
14 this AVC to the Circuit Court of the State of Oregon for Marion County for approval. If
15 approved, this AVC will be filed with the court pursuant to ORS 646.632(2).
16 8.
17 Respondents agree to accept service of a conformed or court certified copy of the AVC
18 by prepaid first class mail sent to the addresses following Respondents' signatures, or to
19 Respondents' attorney.
20 9.
21 If the shipments ordered to be made and/or monies which are ordered to be paid in this
22 AVC are not timely made and/or paid, DOJ may convert the AVC to a money judgment under
23 ORS 646.632(2) that includes all monetary values associated with the obligations set forth in
24 paragraphs 14 & 15, below (i.e., number of coolers selected by eligible but unfulfilled backers
25 multiplied by $20, plus $50,000). Respondents agree that a copy of the money judgment may
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3 10.
4 Respondents understand that, in addition to any other sanctions which may be imposed
5 under this AVC or under the law, a willful violation (as defined by ORS 646.605(10)) of any of
6 the terms of this AVC may result in contempt of court proceedings, civil penalties of up to
7 $25,000 for each violation, and such further relief as the court may deem appropriate. ORS
9 11.
11 nature have been made or entered into by the parties. The parties further acknowledge that this
12 AVC constitutes a single and entire agreement that is not severable or divisible, except that if
15 REMEDIES
16 12.
17 Respondents shall obey Oregon's Unlawful Trade Practices Act, ORS 646.605 to ORS
18 646.656.
19 13.
20 Respondents shall not represent or imply that DOJ or any other governmental unit of the
21 State of Oregon acquiesces or approves of Respondents' past business practices, current efforts
22 to reform its practices, or any future practices which Respondents may adopt or consider
23 adopting, DOJ's decision to settle this matter or to otherwise unilaterally limit current or future
24 enforcement action does not constitute approval or imply authorization for any past, present, or
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3 that:
4 (A) Within 120 days from the signing of this agreement, Respondents shall ship
5 coolers and accessories to all eligible backers who filed complaints with the Oregon Department
6 of Justice on or before April 15, 2017. A backer is "eligible" ifs/he provided funding at the
7 $185 level, has completed Respondents' shipping survey, has confirmed a mailing address by
8 responding to Respondents' request for confirmation, and has not received all coolers and/or
9 accessories (battery pack, Bluetooth speakers, pitcher & plates,.blenders and drink guide menu)
10 that the backer selected and paid for. As of the signing of this document, the number of eligible
11 backers who filed DOJ complaints against Coolest on or before April 15, 2017, stands at 392.
12 (B) Within 120 days from the signing of this agreement, Respondents shall also ship
13 coolers and/or accessories to all eligible backers who were residents of Oregon but did not file a
14 complaint with the Oregon Department of Justice, subject to these backers confirming a mailing
15 address. As of the signing of this document, the number of eligible backers in this category
16 stands at 481.
17 (C) For the 21,021 backers who did not file a complaint with the Oregon DOJ by
18 April 15, 2017 and are not residents of Oregon, but are otherwise "eligible" as defined in
19 subsection (A), immediately above, Coolest shall immediately (as of the signing of this AVC)
20 begin placing in a Backer Fund a minimum of 10% of net income from Coolest Cooler sales,
21 and shall use said Fund to manufacture and ship coolers and accessories at cost to this category
22 of backers (hereinafter referred to as Group C), over the next 3 years. At the close of each fiscal
24 determine net income from sales of Coolest Coolers during the quarter that just closed. On a
25 quarterly basis, Respondents shall provide DOJ access to its financials, the status of the Backer
26 Fund, and its progress in shipping coolers and accessories to eligible backers.
2 Group C who has not yet received their cooler(s) $20 per cooler selected by the backer. This
3 :financial obligation shall not be subject to discharge in bankruptcy. Also at the 3-year mark,
4 Respondents shall provide to DOJ contact information for the 21,021 backers in Group C, an
5 accounting for said backers, and proof of the $20-per-cooler payments made to each Group C
6 backer. DOJ may file and convert this AVC to a General Judgment Money Judgment which
7 will be entered for the amount of any unmade payments (at $20 x the number of coolers
9 (E) Any unfulfilled backer who has not yet completed Respondents' shipping survey
10 must complete the shipping survey, including a current shipping address, by December 31,
11 2019, to be included in Group C. If an unfulfilled backer does not complete a shipping survey,
12 including a current mailing address, by December 31, 2019, then the backer is not eligible under
13 Group C. If a backer fails to complete a shipping survey due to a change of email address (and
14 corresponding failure to receive the survey), and subsequently contacts either Respondents or
15 DOJ with a confirmation of mailing address by December 31, 2019, that backer shall be eligible
16 under Group C.
18 the backers in this case are fulfilled. Respondents are not prohibited from seeking investors and
21 15.
23 In addition to the consumer restitution specified above, Respondents shall pay the sum
24 of $50,000 (fifty thousand dollars) to DOJ for deposit in the Oregon Department of Justice
25 Consumer Protection and Education Account established pursuant to ORS 180.095, to be used
26
2 provided that Respondents comply with each and every term and condition of this AVC.
5 APPROVED AS TO FORM
7
DATE
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RESPONDENTS' SIGNATURES AND ACKNOWLEDGMENT
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I, Ryan Grepper, being duly sworn on oath depose and say that I am the CEO of Coolest
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LLC. In this capacity, I am fully authorized and empowered to sign this Assurance of
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Voluntary Compliance on behalf of myself and those Respondents, and to bind the same to the
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terms hereof. I have read, understand, and agree to each and every term of this Assurance of
16
Voluntary Compliance.
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18 OFFICIAL STAMP
MARIAN MOJ'iAMED
NOTARY PUBLIC-OREGON
19 COMMISSION NO. 957763
MY COMMISSION EXPIRES JANUARY 08, 2021
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PMTlPtOIV , 01t ct 7 Zl.'f
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SUBSCRIBED AND SWORN to before me this a day ofJune, 2017.
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Page 7 of 8 - ASSURANCE OF VO LUNT ARY COMPLIANCE
DM #8323370vl OREGON DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
(503) 934-4400 I FAX: (503) 378-5017
1
2 ACCEPTANCE BY DOJ
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I '7 /~,
4 Accepted this / ,) day of June, 2017.
5
ELLEN F. ROSENBLUM
6 Attorney General
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, .
8
LUCILLE SAGE,£)· B #903790
9 Senior Assistant Attorney General
Oregon Department of Justice
10 Of Attorneys for Plaintiff
1162 Court Street NE
11 Salem, OR 97301-4096
Phone: (503) 934-4400
12 Fax: (503) 378-5017
Email: lucille.sage@doj.state.or.us
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APPROVAL BY COURT
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APPROVED FOR FILING and SO ORDERED
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