Online computer auctioneers settle complaint with FTC
Computers by Us Inc., which auctioned computers over the Internet, has settled a complaint with the Federal Trade Commission that charged that Computers by Us accepted payments from consumers who won auctions, then delivered the computers later than the 30 days allowed by the FTC or not at all.
The settlement requires that each defendant—a husband-wife team and the husband’s brother—post a $200,000 performance bond before engaging in Internet marketing or assisting others in marketing over the Internet.
It also requires that the defendants not claim they possess goods or services they are offering for sale and that delivery will be made on receipt of payment if they do not, in fact, have the goods in hand. In addition, it bars future violations of the FTC Act and the Mail Order Rule, and prohibits the defendants from selling or sharing their customer lists.
The FTC claimed that Computers By Us offered computers for sale on various Internet auctions. Bidders were informed that their computers would be delivered after they had placed the winning bid and paid for the product. The FTC charged that in many instances, the computers were not supplied within the time frame spelled out in the Mail Order Rule, that when consumers had to wait extended periods of time to receive their computers, they were not given the option to cancel their orders and that requests for refunds were not honored.
The FTC said it did not order redress for consumers. The FTC cited Computers by Us Inc., Fenceway Computers and Tweekable Computers, and their principals, Jeffrey M. Wesko, Wanda M. Wesko, and Richard A. Wesko Jr.
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