Gateway Pays $290,000 to Settle FTC Charges

Share this article:
Personal computer direct marketer Gateway agreed this week to pay $290,000 as part of a settlement to claims of false advertising made by the Federal Trade Commission. The settlement also prohibits Gateway from misrepresenting its money-back guarantee policy and on-site service provision.


The FTC said that Gateway, North Sioux City, SD, failed to provide money-back guarantees with full refunds and free on-site service to consumers as stated in its ads. Gateway was accused of deducting shipping charges -- which average $62 per customer -- from its full refund to customers and providing on-site service not at the customer's request but only after determining the customer could not make the repair.


Gateway released second-quarter earnings after press time July 23. Piper Jaffray, Minneapolis, expected the company to report earnings per share of $0.39, 5 cents below analyst expectations, on revenues of $1.7 billion.
Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.