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No. 10741450
United States Court of Appeals for the Ninth Circuit
Federal Trade Commission v. Noland
No. 10741450 · Decided November 24, 2025
No. 10741450·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
November 24, 2025
Citation
No. 10741450
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
FEDERAL TRADE COMMISSION, No. 23-3757
D.C. No.
Plaintiff - Appellee,
2:20-cv-00047-
DWL
v.
SUCCESS BY MEDIA HOLDINGS OPINION
INC., a corporation doing business as
Success By Health, doing business as
Success By Media, SUCCESS BY
MEDIA, LLC, a limited liability
company doing business as Success
By Health, doing business as Success
By Media, ENHANCED CAPITAL,
CAROL MAGDA, TRAVELNU
INTERNATIONAL INC., RINPARK
SA, NETFORCE SEMINARS,
RICHARD SLABACK, DARIN
EPPS, EDWARD LAMONT, EVAN
R MENDELSON, JONATHAN
WESLEY WARE, SEENA
GREESIN, KIMBERLY FRIDAY,
Defendants,
LINA NOLAND, individually and as
an officer of Success by Media
Holdings Inc. and Success By Media
2 FEDERAL TRADE COMMISSION V. NOLAND
LLC; JAMES D NOLAND, Jr.,
individually and as an officer of
Success by Media Holdings Inc. and
Success by Media LLC; SCOTT A
HARRIS, individually and as an
officer of Success By Media LLC;
THOMAS G SACCA,
Defendant-ctr-claimants -
Appellants.
Appeal from the United States District Court
for the District of Arizona
Dominic Lanza, District Judge, Presiding
Argued and Submitted March 27, 2025
Phoenix, Arizona
Filed November 24, 2025
Before: Susan P. Graber and Mark J. Bennett, Circuit
Judges, and Joan H. Lefkow, District Judge. *
Opinion by Judge Lefkow
*
The Honorable Joan H. Lefkow, United States District Judge for the
Northern District of Illinois, sitting by designation.
FEDERAL TRADE COMMISSION V. NOLAND 3
SUMMARY **
Federal Trade Commission
In an action brought by the Federal Trade Commission
(“FTC”) alleging that Individual Appellants—James
Noland, Lina Noland, Thomas Sacca, and Scott Harris—
were in violation of the Federal Trade Commission Act and
various consumer protection rules, the panel rejected
Individual Appellants’ challenges to certain aspects of the
relief the district court granted.
Individual Appellants operated a pair of multi-level
marketing businesses called Success by Health and VOZ
Travel. On appeal, Individual Appellants did not dispute the
district court’s determinations of liability. Instead, they
challenged only certain aspects of the relief the district court
granted: (1) the asset freeze and receivership imposed by the
district court’s preliminary injunction; (2) the $7,306,873.14
civil compensatory sanction on James Noland, Harris, and
Sacca for violating a 2002 permanent injunction that barred
James Noland and those acting in concert with him from ever
operating unlawful multi-level marketing schemes; (3) the
$6,829 in money damages for Merchandise Rule violations;
and (4) the imposition of a permanent injunction barring
Individual Appellants from participating in multi-level
marketing in the future.
First, the panel held that Individual Appellants’
challenge to the preliminary injunction was moot.
**
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
4 FEDERAL TRADE COMMISSION V. NOLAND
Second, the panel held that the district court did not
abuse its discretion by awarding a civil compensatory
sanction that reflects the net revenues of SBH and VOZ
Travel.
Third, the panel held that the district court did not abuse
its discretion in granting monetary relief under § 19 of the
Federal Trade Commission Act. The FTC was not required
to conduct administrative proceedings and issue a final
cease-and-desist order before initiating this action in federal
court.
Finally, the panel rejected Individual Appellants’
argument that the district court erred by prohibiting them
from engaging in any future multi-level marketing
programs. The district court’s injunction was not overly
broad, and the district court reasonably concluded that
prohibiting Individual Appellants from participating in
multi-level marketing programs was necessary.
COUNSEL
Matthew B. Weprin (argued), Jesselyn Friley, Matthew M.
Hoffman, Evan D. Mendelson, Jonathan W. Ware, and
Mariel Goetz, Attorneys; Anisha S. Dasgupta, General
Counsel; Federal Trade Commission, Washington, D.C.; for
Plaintiff-Appellee.
David L. Abney (argued), Ahwatukee Legal Office PC,
Phoenix, Arizona, for Defendants-counter-claimant-
Appellants.
FEDERAL TRADE COMMISSION V. NOLAND 5
OPINION
LEFKOW, District Judge:
By late 2019, James Noland, Lina Noland, Thomas
Sacca, and Scott Harris (collectively, “Individual
Appellants”) were operating a pair of multi-level marketing
businesses called Success by Health and VOZ Travel. The
Federal Trade Commission (“FTC”) filed a lawsuit in federal
district court alleging that Individual Appellants were in
violation of the Federal Trade Commission Act (the “FTC
Act”) and various consumer protection rules. This was not
the first time that the FTC had scrutinized James Noland. At
the time the case was filed, he was subject to a permanent
injunction entered in 2002 that barred him and those acting
in concert with him from ever operating unlawful multi-level
marketing schemes. Consequently, the FTC moved to hold
James Noland, Harris, and Sacca in contempt of the 2002
permanent injunction.
In the Lead Action, 1 the district court swiftly granted the
FTC’s motions for an ex parte temporary restraining order
and for a preliminary injunction. Through those preliminary
orders, the district court froze Individual Appellants’ assets
and imposed a receivership to assume control over Success
1
The FTC filed a first action in January 2020, seeking a permanent
injunction and other equitable relief in case number 20-cv-00047 (the
“Lead Action”). The FTC separately filed a Motion for an Order to Show
Cause and Motion for Contempt Sanctions in case number 00-cv-02260
(the “Contempt Action”). As discussed in text below, in July 2022, the
district court consolidated both into the Lead Action, and that
consolidated action is now before us on appeal.
6 FEDERAL TRADE COMMISSION V. NOLAND
by Health, VOZ Travel, and related entities. 2 Ultimately, the
district court resolved certain of the FTC’s claims in favor of
the Commission at summary judgment and issued a final
judgment after an 11-day bench trial. The district court found
Individual Appellants liable for operating a pyramid scheme
in violation of § 5 of the FTC Act, 15 U.S.C. § 45(a), and for
violating two consumer protection rules promulgated under
the FTC Act. The court awarded monetary damages to
compensate consumers for Individual Appellants’ rules
violations, permanently enjoined Individual Appellants from
being involved with multi-level marketing schemes in the
future, and imposed a compensatory civil sanction on the
Individual Appellants it found to be in contempt of the 2002
permanent injunction.
On appeal, Individual Appellants do not dispute the
district court’s determinations of liability. Instead, they
challenge only certain aspects of the relief. We have
jurisdiction pursuant to 28 U.S.C. § 1291. We AFFIRM in
all respects.
BACKGROUND
Individual Appellants began a multi-level marketing
company called Success by Health (“SBH”) in 2017. The
company sold coffee, tea, and nutraceutical products. SBH
recruited “affiliates” who would purchase the company’s
products to sell to end-consumers through person-to-person
sales. Individual Appellants promised that the company
would offer “financial freedom” so long as affiliates
followed James Noland’s training programs, which were
2
During the pendency of the litigation, Individual Appellants filed an
interlocutory appeal to this court. Appellants voluntarily dismissed their
appeal of the district court’s denial of a Motion to Dissolve or Modify
the Preliminary Injunction in case number 20-17324.
FEDERAL TRADE COMMISSION V. NOLAND 7
also available for purchase. Individual Appellants designed
the compensation and bonus structure to incentivize affiliate
recruitment over product sales. The district court found that
SBH generated approximately $6,111,976.13 in net
revenues from product sales and event tickets.
Around 2019, business at SBH slowed. To generate
income to offset SBH’s losses, Individual Appellants started
a second business, VOZ Travel, in October 2019. Individual
Appellants purported to sell travel services that ranged
between $1,000 and $2,795 on an internet-based travel
platform. This platform was never completed, however, and
the company never created any of the promised products.
What Individual Appellants did do, as the district court
recounted, was market VOZ Travel as a “profitable path
towards financial independence” and incentivize individuals
who signed up for the platform to recruit others. The district
court found that, even though James Noland “recogniz[ed]
his inability to actually provide a travel product, [he] added
that VOZ Travel is more than ‘a discount on your travel’—
it is ‘freedom,’ ‘experiences,’ and ‘memories.’” Over the
course of its operation, VOZ Travel’s net revenues
amounted to $1,194,897.01.
In time, the FTC sued Individual Appellants and the pair
of corporate entities in the district court. The FTC alleged
that Individual Appellants, through their operation of SBH
and VOZ Travel, violated § 5(a) of the FTC Act, which
prohibits the use of “[u]nfair methods of competition in or
affecting commerce, and unfair or deceptive acts or practices
in or affecting commerce.” 15 U.S.C. § 45(a). It further
alleged that Individual Appellants violated two consumer
protection rules promulgated under the FTC Act: first, the
FTC alleged that Individual Appellants violated the Mail,
Internet, or Telephone Order Merchandise Rule (the
8 FEDERAL TRADE COMMISSION V. NOLAND
“Merchandise Rule”), 16 C.F.R. § 435.2, which requires
sellers that are unable to ship goods on a timely basis either
to contact the buyers and permit them to consent to delayed
shipping or provide the buyers a refund, id. Second, the FTC
alleged that Individual Appellants violated the Rule
Concerning Cooling-Off Period for Sales Made at Homes or
at Certain Other Locations (the “Cooling-Off Rule”), id.
§ 429.1, which requires door-to-door sellers to give buyers
three days to cancel a transaction and provide notice of that
right, id.
The FTC also sought prospective injunctive relief under
§ 13(b) of the FTC Act, 15 U.S.C. § 53(b), to “halt and
redress violations” of the FTC Act and asserted that the court
could “award ancillary relief, including rescission or
reformation of contracts, restitution, the refund of monies
paid, and the disgorgement of ill-gotten monies[.]” The FTC
separately relied on authority granted under § 19, 15 U.S.C.
§ 57b, to remedy violations of the Merchandise Rule and
Cooling-Off Rule. Under that section, district courts are
authorized to grant such relief as they find necessary to
redress consumer injury resulting from any such rule
violation, including, but not limited to, the refund of money.
Id. § 57b(b).
After the FTC filed the instant lawsuit, it also moved to
hold James Noland, Harris, and Sacca in contempt of a 2002
injunction that arose from an earlier lawsuit that the FTC had
filed against James Noland for promoting a separate multi-
level marketing program called Bigsmart. The contempt
action was consolidated with the FTC’s lead action in this
case. James Noland had reached a settlement with the FTC
to resolve that earlier lawsuit, pursuant to which the district
court entered the permanent injunction prohibiting James
Noland and others “in active concert or participation” with
FEDERAL TRADE COMMISSION V. NOLAND 9
him from “(1) operating a ‘prohibited marketing scheme,’
including a pyramid scheme; (2) making any ‘false or
misleading statement . . . of material fact’ in connection with
[a multi-level marketing program]; and (3) failing to take
‘reasonable steps’ to monitor compliance with the
permanent injunction.”
Among the numerous rulings the district court made in
the consolidated cases before entering a final judgment,
several are pertinent to the issues on appeal.
Ex Parte Temporary Restraining Order. On January 17,
2020, the district court issued an ex parte temporary
restraining order under seal, in which it found good cause
to believe that Individual Appellants, among other
things, operated an illegal pyramid scheme and “falsely
represent[ed] that members of the [SBH] program
(called ‘Affiliates’) are likely to earn substantial income”
in violation of § 5(a) of the FTC Act and also violated
the Merchandise Rule and Cooling-Off Rule. The court
further found that immediate and irreparable damage
would result from their ongoing statutory and rule
violations. Asserting its authority under § 13(b) of the
FTC Act, the district court put in place a receivership to
assume control over Individual Appellants’ assets and
businesses and froze Individual Appellants’ assets. 3
Preliminary Injunction. About a month later, on
February 28, 2020, after reviewing briefing from both
parties and holding an evidentiary hearing, the district
court entered a preliminary injunction, through which it
maintained an asset freeze and receivership over SBH.
3
The initial receiver was replaced after July 2021. We refer to both
collectively as “Receiver.”
10 FEDERAL TRADE COMMISSION V. NOLAND
The court found “compelling evidence that [d]efendants
are operating a pyramid scheme and that they have
otherwise engaged in deceptive practices in violation of
15 U.S.C. § 45.” As a consequence, it concluded that
“extensive injunctive relief is necessary to protect
consumers from further harm.” On appeal, Individual
Appellants do not challenge the imposition of the
preliminary injunction, only its scope.
Summary Judgment. The district court granted partial
summary judgment to the FTC, holding that there was no
genuine dispute of fact that VOZ Travel was a pyramid
scheme, that Individual Appellants promoted VOZ
Travel using false claims, and that Individual Appellants
violated the Merchandise and Cooling-Off Rules. The
court denied summary judgment in favor of the FTC with
respect to Success by Health.
Bench Trial. In May 2023, the district court held an 11-
day bench trial to resolve the remaining claims. The
court issued its findings of fact and conclusions of law in
a lengthy and thorough order. The district court
concluded that SBH operated as a pyramid scheme and
that Individual Appellants had made material
misrepresentations to affiliates concerning the likelihood
of affiliates’ earning substantial income through SBH
and VOZ Travel. Finally, the court held James Noland,
Harris, and Sacca in contempt of the 2002 permanent
injunction through their operation of SBH and VOZ
Travel.
Individual Appellants do not dispute any of the district
court’s findings of liability. Instead, they challenge various
aspects of the relief the district court granted: the asset freeze
and receivership imposed by the preliminary injunction; the
FEDERAL TRADE COMMISSION V. NOLAND 11
$7,306,873.14 civil compensatory sanction on James
Noland, Harris, and Sacca for violating the 2002 permanent
injunction; the $6,829 in money damages for Merchandise
Rule violations; and the imposition of a permanent
injunction barring Individual Appellants from participating
in multi-level marketing in the future.
STANDARD OF REVIEW
“We review the district court’s legal conclusions de
novo, the factual findings underlying its decision for clear
error, and the injunction’s scope for abuse of discretion.”
K.W. ex rel. D.W. v. Armstrong, 789 F.3d 962, 969 (9th Cir.
2015) (citation omitted). We review for abuse of discretion
the district court’s decision to appoint a receiver, Can. Life
Assurance Co. v. LaPeter, 563 F.3d 837, 844 (9th Cir. 2009),
and the propriety of its supervision of the receivership,
Commodity Futures Trading Comm’n v. Topworth Int’l,
Ltd., 205 F.3d 1107, 1115 (9th Cir. 1999), as amended (Mar.
23, 2000).
The district court was thorough in its analysis at every
stage of the litigation. We discuss each of the claims on
appeal and, after our own review of the record, have no basis
to disagree with the district court.
DISCUSSION
I. Preliminary Injunction
Individual Appellants assert that the district court’s
imposition of a pre-judgment receivership and asset freeze
as part of its preliminary injunction was improper. But the
district court ultimately issued a permanent injunction. And,
where “a permanent injunction has been granted that
supersedes the original preliminary injunction, the
interlocutory injunction becomes merged in the final decree
12 FEDERAL TRADE COMMISSION V. NOLAND
and [an] appeal from the interlocutory preliminary order is
properly dismissed.” In re Est. of Ferdinand Marcos H.R.
Litig., 94 F.3d 539, 544 (9th Cir. 1996) (citation omitted).
The permanent injunction addresses neither the receivership
nor the asset freeze, so whether those aspects of the
preliminary injunction were proper is moot.
II. Civil Compensatory Sanction
We turn to the district court’s civil compensatory
sanction against James Noland, Harris, and Sacca for being
in contempt of the 2002 permanent injunction. 4 Individual
Appellants argue that the district court abused its discretion
when it ordered a civil compensatory sanction in the amount
of $7,306.873.14, which they characterize as a “massive
compensatory sanction that never identified the sustained
losses or purported to redress any wronged party for any
sustained losses.”
The Supreme Court has stated that “[j]udicial sanctions
in civil contempt proceedings may, in a proper case, be
employed . . . to compensate the complainant for losses
sustained.” United States v. United Mine Workers of Am.,
330 U.S. 258, 303–04 (1947). The purpose of civil sanctions
is to “coerce” compliance with a court order or to
4
Two circuits have ruled that the Supreme Court’s ruling in AMG
Capital Management, LLC v. Federal Trade Commission, 593 U.S. 67
(2021), does not preclude district courts from ordering monetary relief
as a sanction for contempt of court. See, e.g., FTC v. Pukke, 53 F.4th 80,
102–03 (4th Cir. 2022); FTC v. Nat’l Urological Grp., Inc., 80 F.4th
1236, 1244 (11th Cir. 2023) (“[T]he Court said nothing about how courts
could enforce injunctions imposed under § 13(b). Neither the text of the
Act nor the Supreme Court’s decision in AMG expressly limits a district
court’s contempt powers in this context.”). Individual Appellants do not
challenge the district court’s authority to issue the sanction, but only the
court’s manner of exercising that authority.
FEDERAL TRADE COMMISSION V. NOLAND 13
“compensate” the aggrieved party for sustained losses. Shell
Offshore Inc. v. Greenpeace, Inc., 815 F.3d 623, 629 (9th
Cir. 2016) (quoting United Mine Workers, 330 U.S. at 303–
04). “[D]istrict courts have broad discretion to use consumer
loss to calculate sanctions for civil contempt of an FTC
consent order” so long as they can “explain why the use of
consumer loss is appropriate and why the remedy is
commensurate with the harm.” FTC v. EDebitPay, LLC, 695
F.3d 938, 945 (9th Cir. 2012). The district court has done so
in this case.
The district court sufficiently explained that consumer
loss is appropriate because Individual Appellants’ “pattern
or practice of contumacious conduct” of repeatedly
operating unlawful pyramid schemes “was pervasive and
went to the heart of consumers’ purchasing decisions.” See,
e.g., FTC v. BlueHippo Funding, LLC, 762 F.3d 238, 245
(2nd Cir. 2014); FTC v. Kuykendall, 371 F.3d 745, 764 (10th
Cir. 2004) (“When . . . the FTC has shown through clear and
convincing evidence that defendants were engaged in a
pattern or practice of contemptuous conduct, the district
court may use the defendants’ gross receipts as a starting
point for assessing sanctions.”). Accordingly, the district
court determined that the combined net revenues of SBH and
VOZ Travel, less any commissions Individual Appellants
paid to the companies’ affiliates—precisely
$7,306,873.14—was an accurate measure of consumer loss.
From there, it was Individual Appellants’ burden to prove
any offsets from that baseline. See, e.g., BlueHippo, 762 F.3d
at 245 (“After the court uses the defendants’ gross receipts
as a baseline for calculating damages, the court must permit
the defendants to ‘put forth evidence showing that certain
amounts should offset the sanctions assessed against them.’”
14 FEDERAL TRADE COMMISSION V. NOLAND
(citation omitted)). Individual Appellants failed to do so
here.
Individual Appellants raise several concerns with the
district court’s approach. First, they argue that the FTC
failed to establish this amount by the preponderance of the
evidence, as is its burden, because it provided no proof of
losses suffered by the FTC or any consumers as a result of
the contemptuous conduct. Kuykendall, 371 F.3d at 754. As
explained above, however, a calculation of damages for
consumer loss may begin with the defendants’ gross receipts
derived from the contemptuous conduct. The FTC presented
evidence of net revenues arising from VOZ Travel sales and
net revenues arising from SBH product sales and event
tickets (the contemptuous conduct), which totaled
$1,194,897.01 and $6,111,976.13, respectively. The district
court considered the parties’ competing “alternative profit
and revenue calculations” before “conclud[ing] that the
competing figures offered by the FTC are accurate.” That
ruling was not abuse of discretion, as the district court
fashioned the sanction to “track” the “compensatory
purpose” of civil sanctions. Oracle USA, Inc. v. Rimini St.,
Inc., 81 F.4th 843, 858 (9th Cir. 2023).
Next, Individual Appellants contend that the civil
compensatory sanction based on the net revenues is not tied
to any “losses resulting from any wrongs and was not
calibrated to any actual losses,” such that the sanction is
punitive rather than compensatory and would provide a
windfall to the FTC. But Individual Appellants’ concerns
should be allayed because the district court specified: “Upon
full satisfaction of the Judgment, if there is any money left
over after administering and paying consumer redress, the
FTC will either return that money to [Individual Appellants]
or ask the Court for permission to use the funds for some
FEDERAL TRADE COMMISSION V. NOLAND 15
other purpose.” For these reasons, the district court did not
abuse its discretion by awarding a civil compensatory
sanction that reflects the net revenues of SBH and VOZ
Travel.
III. Monetary Damages Under Section 19
Next, Individual Appellants argue that the district court
lacked the authority to grant monetary relief of $6,829 for
rule violations pursuant to § 19. First, they contend that the
FTC violated its own rules by not conducting administrative
proceedings and issuing a final cease-and-desist order before
initiating this action in federal court. 5 This assertion is
incorrect. There are two parts to § 19(a), only one of which
requires the FTC to issue a final cease-and-desist order
before filing suit in federal court. Under § 19(a)(1)—the
section under which this action was brought—the FTC “may
commence a civil action” in federal district court for
violations of “any rule” promulgated under the FTC Act that
relates to unfair or deceptive acts or practices, other than an
“interpretive rule.” 15 U.S.C. § 57b(a)(1). Section 19(a)(2),
on the other hand, applies to statutory violations of the FTC
Act. For actions brought under that subsection, the FTC is
required to first commence administrative proceedings and
issue “a final cease and desist order” before proceeding to
federal court. 15 U.S.C. § 57b(a)(2). Here, the FTC’s claims
were for violations of the Merchandise Rule and Cooling Off
Rule—both of which are rules promulgated under the FTC
5
As a threshold issue, the Supreme Court’s decision in AMG Capital did
not preclude the FTC from seeking monetary relief under § 19. See AMG
Capital, 593 U.S. at 82 (“Nothing we say today, however, prohibits the
Commission from using its authority under § 5 and § 19 to obtain
restitution on behalf of consumers.”).
16 FEDERAL TRADE COMMISSION V. NOLAND
Act and therefore fall under § 19(a)(1), which does not call
for an administrative proceeding.
Individual Appellants argue that in AMG Capital, the
Supreme Court held that § 19 permits monetary relief only
when the FTC has engaged in administrative proceedings.
See AMG Capital, 593 U.S. at 77. But the Court’s reference
to § 19 was general and did not distinguish between the two
subsections. Id. And when distinguishing between the scope
of relief available under § 13(b) and § 19, the Court directly
cited only § 19(a)(2). Id.
While this court has yet to address this issue, at least one
other circuit court and at least several district courts have
recognized that AMG Capital does not in any way preclude
the FTC from commencing actions under § 19(a)(1) directly
in federal district courts. See, e.g., FTC v. Simple Health
Plans LLC, 58 F.4th 1322, 1328 n.4 (11th Cir. 2023) (noting
that while “[c]ertain additional limitations apply when the
Commission is seeking relief after obtaining a final cease
and desist order,” there is no such requirement for claims
brought under § 19(a)(1)); FTC v. QYK Brands LLC,
No. SACV-20-1431 PSG, 2021 WL 5707477, at *4 (C.D.
Cal. Nov. 30, 2021) (“[T]he FTC is authorized to seek
monetary relief for violation of [the Merchandise Rule]
under § 19(a)(1) of the FTCA without first commencing
administrative proceedings or issuing a cease and desist
order.”), aff’d in part, rev’d on other grounds, No. 22-55446,
2024 WL 1526741 (9th Cir. Apr. 9, 2024), cert. denied, 145
S. Ct. 1170 (2025). We agree with this reading of AMG
Capital and the pertinent rules. It was not necessary for the
FTC to conduct administrative proceedings and issue a final
cease-and-desist order before initiating this action in federal
court.
FEDERAL TRADE COMMISSION V. NOLAND 17
Next, Individual Appellants argue that the district court
erred by awarding monetary damages in conjunction with
rule violations under § 19. Individual Appellants assert that
the FTC did not have a viable § 19 claim, because the “FTC
apparently never had any proof that there was any significant
damage to anyone caused by the alleged violations of the
Merchandise Rule and Cooling-Off Rule.” Whether the
damage is “significant” is not the standard by which
monetary damages are assessed or awarded. The district
court found that there were five distinct Merchandise Rule
violations where “a consumer requested a refund after
experiencing a shipping delay, [and] SBH . . . reject[ed] the
refund request.” In its conclusions of law, the district court
noted explicitly that “Defendants make no effort to
specifically address or dispute the FTC’s claim for damages
based on these five episodes.” For these five violations, the
district court ordered monetary relief in the form of
consumer refunds in the amount of $6,829.
Finally, Individual Appellants argue that the monetary
relief granted is “solely for the FTC’s benefit.” Their reading
is contrary to the plain text of the district court’s final order.
The district court explained that the monetary relief granted
for Merchandise Rule violations “shall not be used for
purposes other than consumer redress.” Moreover, the
district court took care to ensure this award of monetary
relief would not result in a double recovery for any consumer
compensated pursuant to the compensatory sanction granted
by the court. For all these reasons, the district court did not
abuse its discretion in granting monetary relief under § 19.
18 FEDERAL TRADE COMMISSION V. NOLAND
IV. Prohibition on Multi-Level Marketing Programs
Finally, Individual Appellants argue that the district
court erred by prohibiting them from engaging in any future
multi-level marketing programs. We disagree.
When reviewing the breadth of a district court’s
injunction, we consider “(1) the seriousness and
deliberateness of the violation; (2) [the] ease with which the
violative claim may be transferred to other products; and
(3) whether the [defendant] has a history of prior violations.”
FTC v. Grant Connect, LLC, 763 F.3d 1094, 1105 (9th Cir.
2014) (first alteration in original) (citation omitted).
Injunctions are upheld “so long as [they] bear[] a reasonable
relation to the unlawful practices found to exist.” Id. (citation
and internal quotation marks omitted).
The district court’s injunction is not overly broad.
“[I]njunctive relief under the FTC Act may be framed
‘broadly enough to prevent respondents from engaging in
similarly illegal practices in future advertisements.’” Id. at
1105 (quoting FTC v. Colgate–Palmolive Co., 380 U.S. 374,
395 (1965)); see id. at 1101 (affirming a permanent
injunction that barred defendant from “engaging in negative-
option marketing, continuity programs, preauthorized
electronic fund transfers, the use of testimonials, and
marketing or selling products related to grants, credit,
business opportunities, diet supplements, or nutraceuticals
. . . .”); see also FTC v. Five-Star Auto Club, Inc., 97 F.
Supp. 2d 502, 536 (S.D.N.Y. 2000) (“[B]road injunctive
relief against [defendant], including a prohibition on all
multi-level marketing is appropriate. After participating in
numerous multi-level marketing schemes, [defendant]
developed, owned and operated his own multi-level
marketing scheme that was deceptive to its core. . . .
FEDERAL TRADE COMMISSION V. NOLAND 19
Moreover, throughout the pendency of this litigation, [he]
has ignored this Court’s orders.”).
Contrary to Individual Appellants’ implicit
characterization otherwise, the district court recognized that
“it is no small thing to impose a lifetime ban on an
individual’s ability to earn a livelihood in a particular
industry.” 6 Nevertheless, the court quite reasonably
concluded that prohibiting Individual Appellants from
participating in multi-level marketing programs was
necessary. The unlawful operation of SBH and VOZ Travel
shows that another court order was needed to hold them
accountable. Individual Appellants are not wrong that “[n]ot
all [multi-level marketing] businesses are illegal pyramid
schemes.” FTC v. BurnLounge, Inc., 753 F.3d 878, 883 (9th
Cir. 2014). But given their own past conduct and James
Noland’s public admission that he could “plug any company
or product into [his] process,” Individual Appellants have
not shown that they are capable of operating lawful multi-
level marketing programs. As the district court stated, “The
sheer volume of deceptive tactics and statements associated
with [their] businesses provides unmistakable evidence of
scienter and shows that the violations were not isolated, but
recurrent.”
The Supreme Court has indeed recognized that “the right
to hold specific private employment and to follow a chosen
profession free from unreasonable governmental
interference comes within the ‘liberty’ and ‘property’
6
In recognition of the seriousness of a permanent injunction on the
ability for one to earn a living, the district court chose to not bar
Individual Appellants from “participating in the sale of business
coaching services,” even though these services were integral to the
operation of their pyramid schemes.
20 FEDERAL TRADE COMMISSION V. NOLAND
concepts of the Fifth Amendment . . . .” Greene v. McElroy,
360 U.S. 474, 492 (1959) (internal citations omitted). But
when individuals have shown time and time again that they
are incapable of working in their chosen profession legally,
a court’s intervention is warranted. See FTC v. Nat’l Lead
Co., 352 U.S. 419, 431 (1957) (“[T]hose caught violating the
[FTC] Act must expect some fencing in.”); FTC v. Gill, 265
F.3d 944, 957 (9th Cir. 2001) (“[G]iving Defendants another
chance might prove to be unwise.”). Accordingly, we find
no basis to disturb the district court’s permanent injunction
barring Individual Appellants from participating in multi-
level marketing programs.
AFFIRMED.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT FEDERAL TRADE COMMISSION, No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT FEDERAL TRADE COMMISSION, No.
02SUCCESS BY MEDIA HOLDINGS OPINION INC., a corporation doing business as Success By Health, doing business as Success By Media, SUCCESS BY MEDIA, LLC, a limited liability company doing business as Success By Health, doing business as Success
03NOLAND LLC; JAMES D NOLAND, Jr., individually and as an officer of Success by Media Holdings Inc.
04and Success by Media LLC; SCOTT A HARRIS, individually and as an officer of Success By Media LLC; THOMAS G SACCA, Defendant-ctr-claimants - Appellants.
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT FEDERAL TRADE COMMISSION, No.
FlawCheck shows no negative treatment for Federal Trade Commission v. Noland in the current circuit citation data.
This case was decided on November 24, 2025.
Use the citation No. 10741450 and verify it against the official reporter before filing.