CompUSA Settles FTC Rebate Complaint

Share this article:
CompUSA and QPS Inc., a maker of computer peripherals, settled a Federal Trade Commission complaint that they failed to deliver rebates to consumers within an advertised period of time, the FTC said last week.


According to the FTC, CompUSA got involved in and helped advertise a QPS-funded mail-in rebate program that promised to mail rebates to customers in six to eight weeks.


From September to December 2001 and January to July 2002, consumers waited one to six months to get their rebates from QPS, and thousands never received them at all, the FTC said.


Despite knowing of the problems, CompUSA continued to advertise the rebates until QPS filed for bankruptcy in August 2002, the FTC said. Also, from September 2001 to June 2002, CompUSA failed to deliver rebates on its own branded products within the promised time, with many consumers experiencing delays of a week to three months, according to the FTC.


Under the agreement, CompUSA must enact numerous changes to its rebate program to ensure timely payments. It also must pay all past-due rebates to consumers who bought QPS products from the store. The principals of bankrupt QPS promised to avoid violations in the future.


Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.