CompUSA Liable For Overdue Rebates

The Federal Trade Commission issued an order today declaring that CompUSA was liable for thousands of rebates never paid by a manufacturer. The government agency found that the giant electronics retailer knew of delays at peripherals manufacturer Q.P.S, but did not stop advertising the rebates.

“When it comes to rebates, retailers must deliver on their promises,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection. “The message to retailers is clear – the FTC is on the beat and will take action if you advertise manufacturers’ rebates when you know they aren’t honoring their promises.”

Q.P.S., which filed for bankruptcy in 2002, initially took between one and six months to pay rebates in 2001 before halting all payments. The company's principals, Priti and Rajeev Sharma, were prohibited by the FTC from engaging in similar practices in the future.

CompUSA, meanwhile, must pay all valid claims filed as well as revamp its rebate process. Among the changes ordered by the FTC are prohibitions against advertising certain manfacturer rebates and advertising the timing of when rebates would be paid.

The action is still not final. After publication in the Federal Register, the FTC will gather comments until April 9, 2005. The agency will then determine whether the action is final.

posted by Consumer Help Web Editorial Team at 2:51 PM |