Computers By Us

Internet Auctioneer Settles FTC Charges

WASHINGTON, Aug. 30, 2001 -- Operators of a Web-based computer auction business that delivered the computers to the winning bidders late or not at all have agreed to settle Federal Trade Commission charges that their business practices violated federal law.

The FTC alleged that Computers By Us, Inc., and its principals offered computers for sale on Internet auctions. Bidders were informed that their computers would be delivered after they had placed the winning bid and paid for the product.

The FTC charged that in many instances, the computers were not supplied within the time frame spelled out in the Mail Order Rule, that when consumers had to wait extended periods of time to receive their computers, they were not given the option to cancel their orders and that requests for refunds were not honored.

The settlement will require that each defendant post a $200,000 performance bond prior to engaging in Internet marketing or assisting others marketing over the Internet in the future. It also bars misrepresentations that they possess the goods or services they are offering for sale and that delivery will be made on receipt of payment. In addition, it bars future violations of the FTC Act and the Mail Order Rule, and prohibits the defendants from selling or sharing their customer lists.

Based on financial statements provided by the defendants, no consumer redress was ordered. Should the financial statements be found to be inaccurate, the defendants would be required to pay $200,000 in consumer redress.

In addition to Computers By Us, Inc., the FTC complaint named Fenceway Computers and Tweekable Computers, and their principals, Jeffrey M. Wesko, Wanda M. Wesko, and Richard A. Wesko, Jr.

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