PeoplePC Settles Late-Shipment Complaint

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PeoplePC Inc., an Internet marketer of personal computers, agreed to pay $100,000 to settle Federal Trade Commission charges that it failed to uphold promises of timely product delivery to consumers, the FTC announced Friday

In its complaint, the FTC said PeoplePC, San Francisco, told customers over the phone, in brochures and on the Internet that their personal computers would arrive in "two to three weeks." Thousands of consumers did not receive their products within that time frame, and PeoplePC failed to notify them that their orders would be delayed, according to the FTC.

Under the federal Mail Order Rule, retailers are required to provide consumers with advance notice of shipment delays and give them the chance to cancel their orders and receive refunds.

Also, the FTC charged PeoplePC with failing to clearly and conspicuously provide customers with written warranty policies or information about how warranties could be obtained, as is required by the federal Pre-Sale Availability of Written Warranty Terms Rule.


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