Seven e-commerce sites agree to settle FTC charges.
Seven Internet e-tailers have settled US Federal Trade Commission (FTC) charges of violating the Mail and Telephone Order Rule during the 1999 holiday shopping season.
The e-tailers allegedly gave buyers inadequate notice of shipping delays or promised specific delivery dates when that delivery time would be impossible to achieve.
Civil penalties totalling USD1.5m for last season's violations will be payable by CDnow Inc, KBkids.com LLC, Macys.com Inc, Franklin W. Bishop d/b/a Minidiscnow.com, The Original Honey Baked Ham Company of Georgia Inc, Patriot Computer Corp and Toysrus.com Inc. The companies have apparently agreed to change their practices to ensure that such violations will not be repeated this year.
The settlements are the culmination of Project TooLate.com, an FTC investigation into whether major online retailers met their delivery promises during last year's holiday season.
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