Can your Palm lie to you? Your CE certainly can!
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April 4, 2001
Microsoft, H-P to Stop Hand-Held
Ads,
Start Consumer-Education Campaign
A WSJ.com News Roundup
WASHINGTON -- Microsoft Corp. and
Hewlett-Packard Co. have agreed to stop
running ads that regulators said falsely portrayed
hand-held devices running Microsoft's operating
system as being Internet-ready.
In addition, both companies said they will
conduct a consumer-education campaign
regarding the purchase of hand-held computers,
also known as personal digital assistants.
Microsoft's contribution to the campaign
includes buying quarter-page ads in major
newspapers for a year.
The Federal Trade Commission complained that
ads for H-P's Jornada hand-held devices, which
employ Microsoft's operating system, misled
consumers into believing the devices came with
built-in access to the Internet and mobile e-mail.
But those functions required purchase of
modems that could cost up to $350.
The small print disclosing that fact was
"unclear, inconspicuous and inadequate," the
FTC said.
"Consumers are faced with so many choices
when they shop for hand-held computers, and
they often rely on advertising claims when they
decide which PDA to buy," said Jodie
Bernstein, director of the FTC's Bureau of
Consumer Protection. "It is critical that 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."
The aggressive "Can Your Palm Do That?"
campaign targeted Palm Inc., whose hand-held
products posed stiff competition for the devices
using Microsoft's software. The FTC found the
ads deceived consumers by boasting of features
that were unavailable unless buyers spent more
for wireless capability, while Palm's latest units
had Internet capability already built in.
Microsoft and H-P, Palo Alto, Calif., ran the ads
cooperatively. Microsoft, Redmond, Wash., also
sells its operating system to other manufacturers. |
