Legal Documents

In this complaint, Procter & Gamble alleges that an Amway salesman defamed P&G and promoted a boycott of P&G products by circulating rumors associating P&G with satanism.

Attached exhibits include the transcript of a message left on the Amway voicemail system saying that the president of P&G appeared on the Phil Donahue show and stated that "a large portion of the profits from the Procter & Gamble products go to support his satanic church."


IN THE UNITED STATES DISTRICT COURT FOR THE 
DISTRICT OF UTAH CENTRAL DIVISION  
 
THE PROCTER & GAMBLE COMPANY 
and THE PROCTER & GAMBLE 
DISTRIBUTING COMPANY, 
 
Plaintiffs, 
 
v. 
 
RANDY L. HAUGEN, individually, 
and d/b/a FREEDOM ASSOCIATES, 
INC. and FREEDOM TOOLS INCOR- 
PORATED; and JOHN DOES 1-10, 
 
Defendants. 
 
 
COMPLAINT FOR INJUNCTIVE RELIEF AND ACTUAL 
DAMAGES  
 
(Jury Trial Demanded) 
 
Civil No. 1:95CV 0094W 
 
 
The Procter & Gamble Company and The Procter & Gamble 
Distributing Company, for their complaint in this action, state as 
follows:  
 
I.  THE PARTIES 
 
1.   The Procter & Gamble Company  (hereinafter sometimes 
referred to as "P&G") is an Ohio corporation with its principal 
place of business in Cincinnati, Ohio,  and P&G is therefore a 
citizen of Ohio. P&G and its subsidiary and affiliated companies 
manufacture consumer products and sell them in Utah and 
throughout the United States. These products include TIDE 
laundry detergent, CASCADE dishwashing detergent, FOLGER 
coffee, MR. CLEAN household cleaning products, and many 
other food, laundry, cleaning and personal care products.  
 
2.   The Procter & Gamble Distributing Company (hereinafter 
sometimes referred to as "P&G Distributing") is an Ohio 
corporation with its principal place of business in Cincinnati, 
Ohio, and P&G Distributing is therefore a citizen of Ohio.   
P&G Distributing sells P&G products including those identified 
in Paragraph 1 to retailers and distributors throughout the 
United States, including the State of Utah.  P&G Distributing is 
a subsidiary of P&G.  
 
3.   Defendant Randy L. Haugen is a citizen of the State of Utah 
and a "Diamond" level distributor of Amway consumer products 
in the distribution chain of The Amway Corporation. Defendant 
Haugen is a past co-chairman of the Business Operations 
Committee of the Amway Distributors Association Council 
(hereinafter "ADAC") Thirty Amway distributors serve on the 
ADAC.  Fifteen of the thirty distributors on the ADAC are 
appointed by The Amway Corporation. The "mission" of the 
ADAC is to "advise and consult" with The Amway Corporation 
"on all aspects of the business and to take an active role in 
shaping Amway's future."  (See Exhibit A.)  As announced in 
The Amway Corporation's May 1995 AMAGRAM publication, 
a copy of which is attached as Exhibit B, and made a part of this 
Complaint,  Defendant Haugen is presently and at the time of 
the actions giving rise to this Complaint a member of the 
Executive Committee of the ADAC.  The Executive Committee 
establishes goals and objectives for the Business Operations and 
the Legal and Ethics Committees of the ADAC. Defendant  
Haugen  also  conducts  business  as  Freedom Associates, Inc. 
and Freedom Tools Incorporated, both of which are Utah 
corporations involving or related to the distribution of Amway 
products.  
 
4.   Defendants John Does 1-10, whose complete identities and 
addresses are unknown at this time, upon information and belief, 
are individual distributors and/or businesses involved in the sale 
and distribution of Amway consumer products.  
 
5.   The Amway Corporation is a Michigan corporation with its 
principal place of business in Ada, Michigan.  Amway, through 
its chain  of  distributors,  including  the Defendants,  sells  and 
distributes nationwide consumer products such as SA8 PLUS 
PREMIUM laundry detergent, CRYSTAL BRIGHT 
dishwashing detergent, EXQUISITE and NINE TO FIVE coffee 
products, DURISHINE household cleaning product and many 
other food, laundry, cleaning and personal care products.  These 
Amway products distributed by Defendants compete with  
P&G's  products  in  the  consumer  market nationwide. 
Furthermore, Amway specifically advertises against P&G's 
products in  its  publications,  such  as AMAGRAM  and  the  
Amway  Product Demonstrations Guide. Copies of such 
advertisements are attached as Exhibit C and made a part of this 
Complaint.  
 
6.   The Amway Corporation provides  for  its distributors 
communication systems known as "Amvox Network Voice 
Messaging" and "Amvox by Voice-Tel" which use the 
telephone lines of interstate commerce.  Specifically, Amway 
advertises and provides for cash and other  valuable 
consideration  subscriptions  to  Amway's  Amvox 
communication systems for its distributors.   Copies of 
Amway's Amvox advertisement and Amway's Amvox 
subscription order form are attached as Exhibit D and made a 
part of this Complaint.  
 
 
II.  JURISDICTION AND VENUE 
 
7.   The matter in controversy exceeds, exclusive of interest and 
costs, the sum of Fifty Thousand ($50,000.00) Dollars.  
 
8.   The jurisdiction of this Court is based upon a federal 
question and diversity of citizenship pursuant to 28 U.S.C. 
Sections 1331 and 1332.  
 
9.   Venue is proper in the United States District Court for  the 
District of Utah under 28 U.S.C. Section 1391 because the 
Defendants reside in the State of Utah and/or committed a 
substantial part of the acts giving rise to the claims in this action 
within this judicial district.  
 
 
III.  FACTS APPLICABLE TO ALL CLAIMS 
 
10.  P&G was formed in 1837.  In 1882 P&G registered in the 
United States Patent and Trademark Office a trademark called 
the "Moon and Stars" design.   Successive minor variations of 
this design were  also  federally registered.  A copy  of  one  
such registration for P&G's "Moon and Stars" trademark, United 
States Registration No. 298059, is attached as Exhibit E and 
made a part of this Complaint.  
 
11.  The "Moon and Stars" trademark is a corporate symbol 
under which P&G has conducted business throughout the 
United States for over a hundred years.  This business has been 
based upon the principle of providing products of superior 
quality and value that best meet the needs of consumers.  
 
12.  In or about April and May 1995, Defendants, with actual 
knowledge of their falsity or with malicious and reckless 
disregard as to their truth or falsity, circulated and published in 
the States of Utah and Nevada, through the Amvox 
communication systems and through other media, completely 
false and defamatory written and  oral statements.   Both forms 
of defamatory  expression disparaged Plaintiffs' products, 
business interests, reputation and goodwill.  A transcript of 
certain such false and defamatory oral statements that were 
published through the Amvox communication system is 
attached as Exhibit F and made a part of this Complaint. The  
statements  falsely and maliciously associate P&G and P&G 
Distributing with satanism and falsely and maliciously describe 
the "Moon and Stars" trademark as a satanic symbol.  The 
statements also falsely and maliciously assert that the President 
of P&G appeared on a nationally televised talk show and 
discussed P&G's relationship to satanism and P&G's support for 
the church of satan. The statements further promote a boycott of 
P&G products which compete with  the  Amway products that 
Defendants promote and distribute for profit.  
 
13.  P&G  Distributing  and  P&G  and  its  subsidiaries and 
affiliates  do  not  have  and  never  have  had  any connection, 
relationship,  or  association  whatsoever  with satanism,  devil 
worship or any church of satan.  P&G representatives, 
executives and employees have never appeared on any 
television program or show asserting any connection with 
satanism or the church of satan.  
 
14.  Defendants, individually and in concert, have made the 
false, defamatory and product disparaging statements contained 
in Exhibit F to increase their economic gain, to enhance their 
Amway distributorship, and, to sell Amway products, all to the 
detriment of Plaintiffs.  
 
15.  The statements published and circulated by Defendants as 
set forth in Exhibit F contain vicious misrepresentations of fact 
and false statements which were known by Defendants to be 
false or were made maliciously and with reckless disregard as to 
their truth or falsity and which have caused harm and damage to 
Plaintiffs and their business.  
 
16. Defendants' conduct and acts as alleged above have caused 
P&G and P&G Distributing irreparable injury and such conduct 
will continue to the irreparable harm of Plaintiffs unless 
enjoined by this Court.  
 
COUNT ONE: 
 
DEFAMATION PER SE 
 
17.  Plaintiffs incorporate as if fully restated herein their prior 
allegations in Paragraphs 1 through 16 of the Complaint.  
 
18.  Defendants knowingly and intentionally slandered, libeled 
and defamed Plaintiffs by publishing the false, malicious and 
non-privileged statements concerning Plaintiffs, their executives 
and employees, and products, which proximately caused harm 
and damages to  Plaintiffs' reputation,  prestige  and  standing  
as  well  as Plaintiffs' business and products.  
 
COUNT TWO 
 
COMMON LAW UNFAIR COMPETITION 
 
19.  Plaintiffs incorporate as if fully restated herein their prior 
allegations in Paragraphs 1 through 18 of the Complaint.  
 
20.  Defendants committed unfair competition and deceptive 
trade practices in violation of Utah common law which 
proximately caused harm and damage to Plaintiffs' business and 
products.  
 
COUNT THREE 
 
UTAH TRUTH IN ADVERTISING ACT 
 
21.  Plaintiffs incorporate as if fully restated herein their prior 
allegations in Paragraphs 1 through 20 of the Complaint.  
 
22.  Defendants violated the Utah Truth in Advertising Act, 
Utah Code Ann.  13-11a-1 through 13-11a-5 (1989 & 
Cum.Supp. 1992) which proximately caused harm and damage 
to Plaintiffs' business and products.  
 
COUNT FOUR 
 
SECTION 43(a) OF THE LANHAM ACT 
 
23.  Plaintiffs incorporate as if fully restated herein their prior 
allegations in Paragraphs 1 through 22 of the Complaint.  
 
24.  Defendants published the false and deceptive statements 
concerning Plaintiffs and their products  in commerce,  thereby 
committing false and deceptive trade practices in violation of 
Section 43(a) of the  Lanham Act, 15  U.S.C. Section 1125(a),  
which proximately caused harm and damage to Plaintiffs' 
business and products.  
 
COUNT FIVE 
 
TORTUOUS INTERFERENCE WITH BUSINESS 
RELATIONSHIPS  
 
25.  Plaintiffs incorporate as if fully restated herein their prior 
allegations in Paragraphs 1 through 24 of the Complaint.  
 
26.  Defendants have tortiously[sic] and intentionally interfered 
with Plaintiffs'  business  relationships  and expectancies with 
consumers in Utah and Nevada.  
 
 
IV.  RELIEF 
 
WHEREFORE, Plaintiffs pray for relief as follows:  
 
a.   judgment against Defendants jointly and severally for 
compensatory damages in excess of Fifty Thousand 
($50,000.00) Dollars;  
 
b.   punitive damages in appropriate amount to deter Defendants 
and others from the conduct complained of;  
 
c. attorneys' fees; 
 
d. for an order permanently restraining Defendants and their 
agents, individually and jointly, from publishing or in any 
manner causing to be published or circulated the statements in 
Exhibit F or any similar false statements purporting to connect 
Plaintiffs or any of their subsidiaries or affiliated corporations 
and their products to satanism or devil worship or the church of 
satan; and  
 
e.   for  such  other  and  further  relief  to which ! Plaintiffs are 
entitled.  
 
 
V.  JURY DEMAND 
 
Pursuant to Rule 38(b),  Federal Rules of Civil Procedure, 
Plaintiffs demand trial by jury. DATED this 25th day of August, 
1995.  
 
 
Respectfully submitted, 
 
CAMPBELL MAACK & SESSIONS  
 
/s/TRACY H. FOWLER 
WILLIAM H. CHRISTENSEN 
ELIZABETH KING 
One Utah Center, Thirteenth Floor 
201 South Main Street 
Salt Lake City, Utah  84111-2215 
(801) 537-5555 telephone 
 
and 
 
THOMAS S. CALDER 
JOHN E. JEVICKY 
DINSMORE & SHOHL 
1900 Chemed Center 
255 East Fifth Street 
Cincinnati, Ohio  45202 
(513) 977-8200 telephone 
 
OF COUNSEL: 
 
Joseph P. Suarez, Esq. 
The Procter & Gamble Company 
Legal Division 
One Procter & Gamble Plaza 
Cincinnati, Ohio  45202 
(513) 983-4194 telephone 
 
Attorneys for Plaintiffs The Proctor 
& Gamble Company and The Procter & 
Gamble Distributing Company 
 
Plaintiffs' Addresses: 
 
The Procter & Gamble Company 
One Procter & Gamble Plaza 
Cincinnati, Ohio  45202 
 
The Procter & Gamble Distributing Company One Procter & 
Gamble Plaza Cincinnati, Ohio  45202  
 
Defendants' Address: 
 
Mr. Randy L. Haugen, Individually, and 
d/b/a Freedom Associates, Inc. and 
Freedom Tools Incorporated 
2488 Bonneville Terrace 
Ogden, Utah  84403  
 
 
------------------------------------- 
 
Exhibit F, transcript from Amvox communication system:  
 
Thursday, 1:24 P.M. 
 
Remote Message from Randy and Valorie Haugen  
 
"This is a great message, listen to it."  
 
 
Thursday, 12:17 A.M. 
 
Remote Message from "This is Randy double Your numbers."  
 
"Hello Randy, attached is a very interesting message.  Love you. 
Bye, bye."  
 
 
Wednesday, 11:38 P.M. 
 
Remote Message from [name deleted] 
 
"Randy, this is [name deleted] -- hey you may have already 
received a message like this, uh, before but, um, figured I'd send 
it to you just in case you haven't.  It's, uh, pretty interesting.  
Anyway talk to you later.  Love you man.  Bye, bye."  
 
 
Wednesday, 10:25 P.M. 
 
Remote Message from [names deleted] 
 
"Hey [name deleted],  it's [name deleted].  
 
I wanna run something by you real quick that I think you will 
find pretty interesting.  Just talking to a guy the other night 
about this very subject and  it just so happens that a guy brings 
information in and lays it on my desk this morning, so here it 
goes.  
 
It says the president of Procter & Gamble appeared on the Phil 
Donahue Show on March 1, '95.  He announced that due to the 
openness of our society, he was coming out of the closet about 
his association with the church of satan.   He stated that a large 
portion of the profits from the Procter & Gamble products go to 
support his satanic church.  When asked by Donahue if stating 
this on television would hurt his business, his reply was 'there 
are not enough Christians in the United States to make a 
difference.'  And below it has a list of the Procter & Gamble 
products which I'll read:  
 
Duncan Hines, Folgers, Gleem, Bold, Crisco, Jif, Bounce, 
Puritan, Always, Cascade, Secret, Attends Under Garments, 
Cheer, Sure, Oil of Olay, Joy, Head N Shoulders, Wondra, 
Comet, Pert, Camay, Dawn, Prell, Coast, Downy, Vidal 
Sassoon, Ivory, Gain, Luvs, Lava, Mr. Clean, Pampers, 
Safeguard, Oxydol, Pepto Bismol, Charmin, Spic N Span, 
Scope, Puffs, Tide, Crest, Zest, Top Job  
 
It says if you are not sure about a product, look for the symbol 
of the ram's horn that will appear on each product beginning in 
April. The ram's horn will form the 666 which is known as 
satan's number. I'll tell you it really makes you count your 
blessings to have available to all of us a business that allows us 
to buy all the products that we want from our own shelf and I 
guess my real question is, if people aren't being loyal to 
themselves and buying from their own business, then whose 
business are they supporting and who are they buying from.  
Love you.  Talk to you later. Bye."  

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