FTC Reaches Legal Settlement with Online Retailers

FRAMINGHAM (08/07/2000) - The U.S. Federal Trade Commission has reached a legal settlement with seven online retailers that the FTC says violated federal mail order rules (which also apply to online sales) by failing to ship items to consumers by the promised date or within 30 days. The retailers - Macys.com Inc., KBKids.com Ltd., Toysrus.com Inc., CDNow Inc., Patriot Computer Corp., Original Honey Baked Ham Company of Georgia and Minidiscnow.com - will together pay US$1.5 million in civil penalties related to the retailers' failure to ship promised items in time during the 1999 Christmas season.

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