California Purchasers of Compaq/Pacific Bell Internet Services Promotional DSL Package Settle Deceptive Advertising Action |
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The parties have reached a tentative settlement in a class action filed against Pacific Bell Internet Services and Compaq Computer Corporation on behalf of Californians who purchased a promotional package consisting of free Internet service and a Compaq computer between July 7, 2000, and January 31, 2001. The action alleges that the companies made misleading representations regarding the specifics of the promotional deal in violation of state consumer protection laws. Eligible claimants must send in a claim form postmarked no later than November 10, 2003.
The action alleges that Pacific Bell and Compaq guaranteed that they would provide a computer and DSL service within 30 days, and failed to do so. The promotion promised that purchasers would not have to make payments until January 2001, and would therefore get free DSL service until that time. The action alleges that this was deceptive advertising, since DSL service was not made available until after January 2001. Allegedly, the computers that finally arrived included a non-Compaq monitor that would not work correctly with the computer--Compaq offered to upgrade the monitor for an additional fee. Further, the action alleges that the companies charged excessive shipping and handling fees to make up for the loss of profits they suffered because of the promotional discounts.
The settlement apparently provides for cash payments to be made to eligible claimants based on the type of claim that they make. The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for October 9, 2003.
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