WASHINGTON—The Federal Trade Commission said it reached a settlement with personal digital assistant maker Palm Inc. concerning FTC charges that Palm misguided customers about the capabilities of its devices, including Palm claims that its PDAs included built-in wireless capabilities.
The FTC alleged Palm deceived customers when it advertised that its devices included embedded wireless access. In order to get wireless access, customers had to purchase a separate modem or add-on. Further, the FTC alleged Palm failed to disclose that certain customers also would have to subscribe to the company’s Palm.Net wireless Internet service, which includes monthly airtime fees.
Under the settlement, Palm would be prohibited from misrepresenting its products, and would instead “clearly and conspicuously” advise customers when they need to purchase an external modem or add-on to wirelessly access e-mail or the Internet. Palm would also be barred from misrepresenting any other capabilities of its devices.
Palm recently released its first truly wireless integrated device, the i705, which allows customers to wirelessly access their e-mail and other information.
