128.  Buy.com Inc., File No. 992 3282 (June 2000)

129.  Value America, Inc., File No. 992 3206 (June 2000)

130.  Office Depot, Inc., File No. 992 3313 (June 2000)

Respondents: BUY.COM Inc., Value America, Inc., Office Depot, Inc.

Type:  Free or Low Cost PCs, Deceptive Ads & Mail Order Rule

The FTC alleged that three retailers deceptively advertised the total costs of different computer systems by failing to inform consumers adequately that they would have to make a substantial up-front payment for a "free" or low-cost system, that consumers had to commit to a three-year contract with an Internet service provider, and that various other restrictions would apply, such as a penalty for early termination of the Internet service. The challenged advertisements appeared in newspapers, magazines, infomercials, radio, online banner ads and on company Web sites.

The FTC obtained consent orders from all three retailers that prohibit any misrepresenting price or cost to consumers of any computer, computer-related product or Internet access service. If the companies advertise a price or rebate that is conditioned on the purchase of any other product or service, the companies must disclose clearly and conspicuously both that requirement and the price of the other product and service. The orders require clear disclosure of other restrictions, and the BUY.COM and Value America orders require clear and conspicuous disclosures of the amounts of any rebates and the before-rebate price. The Value American order requires the company to comply with the Mail Order Rule and to cancel orders and provide refunds to all customers who ordered a product before the agreement is final and whose order is more than 10 days late.