WASHINGTON-Under a proposed settlement with the Federal Trade Commission, Microsoft Corp. and Hewlett-Packard Co. said they would stop an advertising campaign that could lead consumers to believe HP’s personal digital assistants-which are not sold with a wireless modem-come Internet ready.
The FTC said the ads, which claim HP’s PDAs can access the Internet and e-mail “anytime,” could mislead consumers because the devices do not come with a wireless modem, which can cost $350 or more. HP’s devices run on Microsoft’s Pocket PC operating system. The ads contained a disclosure at the bottom stating, “Modem Required. Sold separately,” but the FTC said the disclosure was inconspicuous and appeared in extremely fine print.
“The legal standard for disclosures is clear and conspicuous,” said Jodie Bernstein, director of the FTC’s Bureau of Consumer Protection. “Consumers shouldn’t have to use a magnifying glass to read them.”
Under the settlement, HP and Microsoft agreed to stop the advertising campaign. In addition, Microsoft will run an essay discussing PDAs in various newspapers around the country for one year, and the companies volunteered to disseminate consumer education materials.
“Consumers are faced with so many choices when they shop for handheld computers, and they often rely on advertising claims when they decide what PDA to buy,” Bernstein said. “It is critical 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.”
