In the case of People of the State of Illinois, ex rel. Richard A. Devine, State's Attorney of Cook County v. Time Consumer Marketing, Inc., No. 1-01-4001, an appeal from the Circuit Court of Cook County, Chancery Division, Justice Thomas E. Hoffman of the Appellate Court of Illinois, First District, recently issued an opinion in favor of Time Consumer Marketing, Inc. in a case alleging violations of the Illinois Consumer Fraud Act regarding sweepstakes mailings sent to the public in Cook County. The Appellate Court agreed with the trial court in finding that the Attorney General, as chief legal officer of Illinois, has the exclusive authority to accept Time's signing of an "Assurance of Voluntary Compliance or Discontinuance" with regard to future sweepstakes mailing practices and to release Time from liability for all claims which had been or could have been brought under the Consumer Fraud Act prior to the signing of the Assurance.

In 1999 and 2000, Time advertised the sale of self-study programs, music cassettes and compact discs, books and videotapes through direct mail solicitations. The direct mail materials also included an offer to participate in a sweepstakes. In August 2000, following lengthy negotiations with Attorneys General from several states, including the Illinois Attorney General, Time entered into a comprehensive Assurance of Voluntary Compliance or Discontinuance. Pursuant to this agreement, Time paid an agreed-upon amount to the State of Illinois, 47 other states and the District of Columbia to settle all claims related to its sweepstakes mailings. Time also agreed to a detailed set of practices for all its future sweepstakes mailings. The Chicago-based law firm of Novack and Macey successfully represented the defendant-appellees.

"Approximately 250 Illinois residents have received thousands of dollars as part of that settlement," said Eric N. Macey, partner at Novack and Macey. "More importantly, in return for its payment and its agreement regarding the conduct of future sweepstakes mailings, Time was released from all claims related to its sweepstakes mailings sent prior to August 2000. The Attorney General signed the Assurance in keeping with the Consumer Fraud Act.”

Although it knew that the negotiations were ongoing, the State's Attorney nevertheless filed its own complaint against Time regarding these same sweepstakes mailings. After the Assurance had been signed, the State's Attorney refused to dismiss its action, stating that the claims contained in its complaint were not covered by the Assurance because the State's Attorney was not a party to the release and that the Illinois Attorney General was not authorized to release the claims the State's Attorney had filed. Time then moved to dismiss the State's Attorney's complaint, contesting that as a result of the Assurance, it had been released from all claims emanating from the sweepstakes mailings. In September of 2001, Circuit Court Judge Julia Nowicki agreed with Time, finding that, with the signing of the Assurance, all claims had been released and therefore, dismissed the State's Attorney's complaint. This appeal followed.

"On review of the Illinois Consumer Fraud Act, the Appellate Court confirmed that although the act authorizes either the Attorney General or any State's Attorney to initiate an action for a violation, it grants the Attorney General the exclusive authority to accept an Assurance, which in this case provided Time a release from liability for past violations," said attorney Eric Macey.