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Tuesday, August 06, 2002
FTC settles case over late Philips rebates!


The U.S. Federal Trade Commission said Monday it had settled charges that Philips Electronics North America misled customers about rebates used to promote its computer peripheral products. The settlement resolves FTC allegations that Philips had failed to return rebate money to customers as quickly as it promised in advertisements for peripherals such as CD- rewritable drives and monitors. Philips is a unit of European consumer electronics giant Philips Electronics NV .

According to the FTC, Philips advertised that customers would get cash rebates within eight weeks, but then unilaterally extended the deadline.

More than 50,000 consumers waited up to six months or more beyond the promised eight weeks before receiving their rebates, the FTC said.

Under the settlement, the company pledged not to engage in similar practices again.

Philips spokesman Terry Fassburg said all the rebates have now been paid. He said they were delayed because the company switched fulfillment houses in the midst of the promotion.


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