45.  U.S. v. Iomega Corp., Civil Action No: 1:98CV00141C (D. Utah, complaint and consent filed Dec. 9, 1998)

Defendant: Iomega Corp.

Type:  Failure to Provide Rebates on Computer Equipment & Mail Order Rule

Iomega is the world's leading manufacturer of portable data storage products, including the "Zip Drive," the "Ditto Drive," the "Jazz Drive," and "Zip Disks." In promoting these products, Iomega allegedly violated the Mail Order Rule by failing to send a cash rebate, merchandise premium, or both within the times stated in the advertisements, or, where no time was stated in the advertisements, within a reasonable period of time.

Iomega agreed to settle the charges against it and pay a $900,000 civil penalty – the largest penalty ever obtained for non-fraudulent violations of the Mail Order Rule. A complaint and consent were filed in federal court on Dec. 9, 1998.