Microsoft Settles with FTC over Deceptive Ads

Posted By: Ed Tuesday, April 3, 2001 10:50:37 AM

Microsoft and H-P got off with a slap on the wrist from the Federal Trade Commission for their deceptive "Can Your Palm do that?" advertising campaign. They have agreed to clearly disclose which additional products are needed when advertising the Internet capability of Pocket PC products. No fines or penalties were imposed and the companies admitted no wrongdoing.

Both said they will conduct a consumer-education campaign regarding the purchase of handhelds. Microsoft's contribution includes buying quarter-page ads in major newspapers over the next year.

Jodie Bernstein, director of the FTC's Bureau of Consumer Protection, said, "Consumers are faced with so many choices when they shop for hand-held computers, and they often rely on advertising claims when they decide which PDA to buy. It is critical that these ads stick to the facts and accurately reflect a PDA's capabilities. These settlements will help ensure that consumers understand what a PDA can and cannot do before they make a purchase."

The FTC charged that the two companies had run a series of ads that said the Jornada could access the Internet wirelessly but only disclosed that an external modem was required in very small print that was "unclear, inconspicuous and inadequate".

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well..

I.M. Anonymous @ 4/4/2001 12:05:58 AM #
Palm does the same thing (the power of the internet with palm, palm m500 ready for music)

But my aero can play mp3's and doom sic sic sic



RE: well..
I.M. Anonymous @ 4/4/2001 4:45:29 AM #
But Palm doesn't say "Can your Pocket PC do that?". See the point?

RE: well..
I.M. Anonymous @ 4/4/2001 8:10:31 AM #
Can your aero store as much slim yet comprehensive programs as a 8 MB Palm or a 16 MB Prism? Can it be as simple yet intuitive as the Palm OS?

How stupid

I.M. Anonymous @ 4/5/2001 3:44:24 AM #
Boy, it's a good thing that the government is out there to protect us. Otherwise we might have to actually check out the specs ourselves when buying something.

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