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FEDERAL TRADE COMMISSION, Appellee, v. SECURITY RARE COIN & BULLIO... Page 5 of 6 state with particularity a circumstance constituting fraud as required by Federal Rule of Civil Procedure 9(b), Security Coin was prejudiced by lack of notice of the fraud claim and the consequent lack of opportunity to offer an adequate defense. We conclude that Security Coin's arguments are without merit. 13 Security Coin continued to advertise its buy-back policy after it had ceased to honor buy-back requests. As a result, the district court held Security Coin in contempt of the preliminary injunction one and one half years before trial. Security Coin fails to recognize that the issue was within the ambit of the FTC's pleadings, and that in any event was tried by consent of the parties. Fed.R.Civ.P. 15(b). Moreover, the district court did not premise consumer redress on misrepresentations of the buy-back policy alone, but on a host of false and misleading statements that induced consumers to rely upon Security Coin's unfair and deceptive business. IV. 14 Security Coin argues that the district court's award of consumer redress in the form of the monetary equivalent of rescission was inappropriate because actual reliance on false and misleading statements was not proved for each consumer who is to be reimbursed. Security Coin further argues that the monetary equivalent of rescission is an inequitable remedy under the circumstances of this case. 15 To satisfy the reliance requirement in actions brought under section 13(b) of the Act, the FTC need merely show that the misrepresentations or omissions were of a kind usually relied upon by reasonable and prudent persons, that they were widely disseminated, and that the injured consumers actually purchased the defendants' products. F.T.C. v. Amy Travel Service, Inc., 875 F.2d 564, 573 (7th Cir.1989); F.T.C. v. Kitco of Nevada, Inc., 612 F.Supp. 1282, 1293 (D.Minn.1985). Security Coin made credible and persuasive misrepresentations concerning the coins' allegedly low prices, high profit potential, and low risk. These are key factors in a consumer's decision to purchase coins for investment purposes. We agree with the district court and the FTC that it was reasonable for consumers entering this specialized and technical market to rely on the representations of an apparently reputable firm staffed by experts and specializing in such investments. 16 Security Coin relies on our decision in Vervaecke v. Chiles, Heider& Co., 578 F.2d 713 (8th Cir.1978) to argue that proof of subjective reliance by each investor is required for recovery of the monetary equivalent of rescission. We reject Security Coin's argument. It would be virtually impossible for the FTC to offer such proof, and to require it would thwart and frustrate the public purposes of FTC action. This is not a private fraud action, but a government action brought to deter unfair and deceptive trade practices and obtain restitution on behalf of a large class of defrauded investors. It would be inconsistent with the statutory purpose for the court to require proof of subjective reliance by each individual consumer. F.T.C. v. Kitco of Nevada, Inc., 612 F.Supp. at 1293. 17 http://www.altlaw.org/v 1/cases/477126 12/5/2008