Portable Data storage company, Iomega has agreed to pay a $900,000 civil penalty for violating mail order rules.
The company admitted that it flouted the Federal trade Commission?s Mail Order Rule, when it failed to fulfil rebate and merchandise premium requests for its products.
According to the FTC, Iomega has sponsored numerous programs through which consumers could receive rebates, free goods or both by purchasing Iomega products. The promotions appeared in print, at point of sale, on boxes, on the radio and on the company?s Web site.
Jodie Bernstein, director of the FTC?s Bureau of Consumer Protection, commented: ?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. Iomega violated the rule when it failed to provide refunds or promised merchandise to consumers.?
She added: ?The rule?s protections against delayed delivery of merchandise are especially important in a rapidly developing industry.?
The $900,000 fine is the largest penalty ever obtained in a case of this kind.
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