May 3, 2002, 12:00 AM

Another settlement in the FTC’s Internet fulfillment investigation

Auctionsaver, which auctioned computer products on the web, has agreed to pay $10,000 in consumer redress and not to violate the Mail and Telephone Order Merchandise Rule.

Kurt Peters

Executive Editor

Auctionsaver LLC, which auctioned computer-related products on the Internet, has agreed to pay $10,000 in consumer redress and not to violate the Mail and Telephone Order Merchandise Rule by misrepresenting when goods and services will be delivered, the FTC reports. The agreement is part of the ongoing Operation Top Ten Dot Cons, which the FTC and consumer protection agencies from nine countries, five U.S. agencies and 23 states undertook nearly two years ago to monitor delivery of goods and services bought on the web. It resulted in some high-profile fines in the middle of 2000.

The FTC says Internet auction fraud complaints represent the second largest category of consumer complaints received by the FTC, accounting for more than 20,000 complaints in 2001.

The FTC contended that Auctionsaver solicited orders without a reasonable basis to expect it would be able to ship merchandise within 30 days after receipt of an order; failed to offer buyers the option to consent to shipping delays or to cancel their orders and receive prompt refunds; and failed to make prompt refunds to buyers when refunds were required.

The FTC says damage to consumers was $90,000, but agreed to the $10,000 settlement based on Auctionsavers financial condition.



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