Iomega Settles Mail-Order Charges With FTC

Share this article:
Computer disk manufacturer Iomega Corp., Roy, UT, has agreed to settle charges that it violated the Federal Trade Commission's mail-order rule when it failed to fulfill rebate and premium requests for its products, the FTC reported last week.


Iomega will pay a $900,000 civil penalty, the largest ever for nonfraudulent violations of the mail-order rule, the FTC said. According to the FTC, Iomega violated the mail-order rule during rebate and premium promotions by:


* Making unreasonable shipping claims.


* Failing to provide prompt automatic refunds or rebates when it was unable to fulfill orders on time.


* Failing to give customers the option to agree to a delay or receive a refund.


* Failing to offer buyers free order cancellations.


"The FTC's mail and telephone order sales rule ensures that products and services ordered through the mail and over the phone are delivered as promised to consumers," said Jodie Bernstein, director of the FTC's Bureau of Consumer Protection. "Iomega violated the rule when it failed to provide refunds or promised merchandise to consumers."


Iomega's data storage products include the "Zip, Jaz and Ditto" drives.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.

DMA 2014 Kicks Off Under New Management

DMA 2014 Kicks Off Under New Management

Thomas Benton and Jane Berzan will preside over an event indicative of an association serving a wider array of industry segments.