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Web Wholesale Co. Settles Charges

June 21, 2002

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WASHINGTON (AP) _ An Internet wholesale company has agreed to repay $15,000 to customers to settle federal charges that it failed to deliver on orders for brand-name merchandise such as designer jeans and Mickey Mouse watches.

The Federal Trade Commission filed charges in October, alleging that Bargains and Deals, doing business as Keith’s Wholesale and Bargains and Deals Wholesale, deceived consumers by failing to deliver or mailing out goods that were old, used or broken, the agency said Friday.

David Adler, an attorney for the company, said ``Bargains and Deals is very happy the matter is resolved.″

By settling, the company doesn’t admit to breaking any law.

The FTC said the company’s advertising targeted consumers who buy in bulk for resale at flea markets or through Internet auction sites. The products advertised included designer watches, sunglasses and clothing.

The settlement also bars the company from making future misleading statements about merchandise and delivery, the FTC said.

The settlement announced Friday was approved by a judge on June 7 in the U.S. District Court for the Western District of Washington in Seattle, the agency said.

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On the Net:

Federal Trade Commission: http://www.ftc.gov

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