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Defendant.
MEMORANDUM IN OPPOSITION TO
PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION
Preliminary injunctions are exceptional remedies and hence plaintiffs bear a heavy
burden in establishing that injunctive relief should issue. “It frequently is observed that a
preliminary injunction is an extraordinary and drastic remedy, one that should not be granted
unless the movant, by a clear showing, carries the burden of persuasion.” Mazurek v.
Armstrong, 520 U.S. 968, 972 (1997) (quoting 11A C. Wright, A. Miller & M. Kane, Federal
Practice and Procedure § 2948, pp. 129-30 (2d ed. 1995)). “Because a preliminary injunction is
an extraordinary remedy, ‘the right to relief must be clear and unequivocal.’” Chemical
Weapons Working Group, Inc. v. U.S. Department of the Army, 111 F.3d 1485, 1489 (10th Cir.
1997) (quoting in part SCFC ILC, Inc. v. Visa USA, Inc., 936 F.2d 1096, 1098 (10th Cir. 1991)).
In Mazurek, the Supreme Court noted that the movant’s “requirement for substantial proof is
much higher” for a motion for a preliminary injunction than it is for a motion for summary
To obtain preliminary injunctive relief, the moving party bears the burden of establishing
four requirements:
(1) the movant will suffer irreparable injury unless the injunction issues;
(2) the threatened injury to the movant outweighs whatever damage the
proposed injunction may cause the opposing party;
(3) that the injunction, if issued, would not be adverse to the public interest; and
(4) substantial likelihood that the movant will succeed on the merits.
Walmer v. U.S. Dep’t of Defense, 52 F.3d 851, 854 (10th Cir. 1995).
If the party requesting the preliminary injunction fails to meet its burden of proof on any
of the four requirements, its request should be denied. For instance, in Walmer, the Tenth
Circuit assumed that the plaintiff had met three of the requirements, id. at 854 n.6, but affirmed
the district court’s denial of preliminary injunctive relief because the plaintiff had failed to meet
the “modified likelihood of success” requirement, id. at 854-56. In Chemical Weapons Working
Group, the Tenth Circuit upheld a denial of a motion for preliminary injunction, holding that the
plaintiffs’ failure on the balance of harms requirement “obviated” the need to address other
arguments justifying a preliminary injunction. 111 F.3d at 1489. See also Sprint Spectrum, L.P.
v. State Corp. Comm’n, 149 F.3d 1058, 1060 (10th Cir. 1998) (“The district court ruled that the
wireless providers failed to satisfy the first two preliminary injunction requirements. However,
we need not address the second because the first – substantial likelihood of prevailing on the
merits – clearly supports the denial of the preliminary injunction.”). Thus, if plaintiffs fail to
meet their burden on even one of the preliminary injunction requirements, the Court should deny
the request for emergency injunctive relief.
II. PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION SHOULD BE
DENIED
For the same reasons discussed in the memorandum in support of the Federal Trade
Commission’s motion to dismiss filed this date in this case, plaintiffs’ motion for a preliminary
injunction should be denied.1 Plaintiffs have no likelihood of even addressing the merits of their
1
Pursuant to Local Rule 7.2(a), the FTC hereby adopts by reference the memorandum in
support of its motion to dismiss filed today in this action as referenced above, Docket Number
15.
2
claims in this action because this Court is without jurisdiction.
Even if the merits were to be addressed, however, it would be clear that plaintiffs have no
likelihood of success on the merits (this is the only preliminary injunction factor discussed in any
depth by plaintiffs, see Pl. Mem. at 6-20). If the FTC were to pursue an administrative or
judicial enforcement action against plaintiffs, it is likely that the FTC would allege violations of
sections 5(a) and 12 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a) and 52. See
Attachment A to plaintiffs’ motion for preliminary injunction (draft complaint). Section 5(a)
prohibits, among other things, “unfair or deceptive acts or practices in or affecting commerce.”
Section 12 makes it unlawful to disseminate any false advertisement that is likely to induce the
Amendment, it “must concern lawful activity and not be misleading.” Pl. Mem. at 10, quoting
Central Hudson v. Pub. Serv. Comm’n, 447 U.S. 557, 566 (1980). In any enforcement action the
FTC might bring, the FTC would have to allege and prove that the actions of defendants were
“unfair or deceptive” or “false” before those acts would be prohibited. Accordingly, any
“speech” proven to be unfair, deceptive, or false (and thus prohibited by the FTC Act) would not
be protected by the First Amendment because it would not be “lawful” and “not misleading.”
See, e.g., Central Hudson, 447 U.S. at 566; In re R.M.J., 455 U.S. 191, 200 (1982) (“False,
deceptive, or misleading advertising remains subject to restraint . . . .”); Kraft, Inc. v. FTC, 970
F.2d 311, 321 (7th Cir. 1992) (no First Amendment protection for misleading speech). In
addition to making it unlikely that plaintiffs will succeed on the merits, this is another reason that
an enforcement action is the most appropriate forum for plaintiffs to assert their claims.
CONCLUSION
For the foregoing reasons, plaintiffs’ motion for a preliminary injunction should be
denied.
3
Respectfully submitted,
GREGORY G. KATSAS
Assistant Attorney General
JOHN F. DALY
Deputy General Counsel
For Litigation
/s/
LESLIE RICE MELMAN DRAKE CUTINI
Attorney Attorney
Office of the General Counsel Office of Consumer Litigation
Federal Trade Commission Civil Division
Washington, DC 20850 Department of Justice
202-326-2478 P.O. Box 386
Washington, DC 20044
202-307-0044
drake.cutini@usdoj.gov
GREGORY J. FOURATT
United States Attorney
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on July 31, 2008, I filed the foregoing pleading electronically
through the CM/ECF system, which caused the following parties or counsel to be served by
/s
JAN ELIZABETH MITCHELL
Assistant U.S. Attorney