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Mail-Order Computer Company to Pay $61,000 Penalty

March 20, 1987

WASHINGTON (AP) _ A national mail-order firm selling personal computer products has agreed to pay a $61,000 penalty to settle charges that it failed to promptly honor guarantees and didn’t give customers a chance to cancel orders that were delayed, the government reported Friday.

PC Network Inc. of Chicago agreed to the civil penalty to settle charges brought by the Federal Trade Commission, the federal agency said.

The commission said that customers of the firm join one of its membership programs for fees of from $8 to $45. The membership entitles them to buy personal computer hardware and software at wholesale prices plus 8 percent, the Commission said. The company solicits business through full-page advertising and had sales of $46 million last year.

According to the FTC complaint, PC Network violated federal mail-order regulations in instances when it failed to promptly ship merchandise that customers had ordered.

The firm did not either make refunds for merchandise it was unable to deliver or offer the customer the option of either agreeing to a delay or canceling their order, the complaint said.

Also, the commission charged that PC Network failed to live up to its advertised promise of full refunds for dissatisfied customers.

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