From...

May 17, 1999
Web posted at: 1:53 p.m. EDT (1753 GMT)

by Nancy Weil

(IDG) -- Dell Computer and Micron Electronics have settled with the Federal Trade Commission over allegations that computer lease advertisements from the companies violated federal laws by not adequately displaying cost information.

The FTC announced the settlements in a written statement on May 12. The settlements do not involve monetary fines.

The companies must now "disclose clearly and conspicuously (in a manner that an ordinary consumer could read or hear and comprehend)" that the terms relayed in advertisements pertain to leasing computers, the FTC said in the statement. Both Dell and Micron are prohibited from referring to charges

MORE COMPUTING INTELLIGENCE
	IDG.net home page
PC World home page
FileWorld find free software fast
Make your PC work harder with these tips
Reviews & in-depth info at IDG.net
		IDG.net's desktop PC page
		IDG.net's portable PC page
IDG.net's Windows software page
IDG.net's personal news page
Year 2000 World
Questions about computers? Let IDG.net's editors help you
Subscribe to IDG.net's free daily newsletter for computer geniuses (& newbies)
Search IDG.net in 12 languages
News Radio
	Fusion audio primers
	Computerworld Minute

related to lease agreements without also stating in advertisements the total amount due when the lease is signed.

The companies also cannot highlight low monthly payments in advertisements unless the ads in question also provide, in an equally prominent placement as the low monthly payment mention, what the total amount is that will be due at the signing, whether a security deposit is needed, details of scheduled payments, and that open-end leases might require an extra charge when the lease expires.

The FTC cited two objectionable Dell ads, one on television and the other on the Internet, and one objectionable Internet ad from Micron.

No big deal

In Dell's view, the charges were "relatively minor and isolated and they were easily addressed," said company spokesperson Libba Letton.

All of the information required by federal law was included in the ads, but the FTC found the displays inadequate, she said. The FTC complained that important lease terms were placed in inconspicuous spots in the Internet ads and in "unreadable fine print" in the television ad.

"We will ensure that our advertising clearly sets out the relevant terms of the financing options," Micron spokesperson Denise Smith said.