Video Computer Store
Settles FTC Complaint

WASHINGTON, Nov. 14, 2001 -- The FTC today announced a consent decree that will prohibit a bankrupt Pennsylvania-based seller of computer systems from violating the Federal Trade Commission Act and the Mail Order or Telephone Order Merchandise Rule and require that the company post a $400,000 bond before engaging in any business covered by the rule.

The consent decree settles an FTC complaint against George L. Capell, the president and sole shareholder of Computer Personalities Systems, Inc., d/b/a Video Computer Store. According to the complaint, between 1997 and 2000 the company failed to send proper delay notices, failed to offer refunds, and lacked a reasonable basis for its delivery time claims in connection with the computer systems that it shipped.

The complaint also alleges that Video Computer Store promised to pay its customers rebates in connection with the computer systems they bought, but failed to deliver the rebates in a timely manner and often didn't even provide consumers with the forms needed to request the rebates.

The company marketed its computer systems through infomercials and over the Internet. The infomercials were produced by Direct-2-U, an affiliated company also owned by Capell, and typically promised delivery of the systems within two to four weeks. The rebates offered ranged from $100 on a complete system to $50 on the purchase of a printer and monitor to $30 for a scanner, with "bonus rebates" also offered.

Computer Personality Systems abruptly filed for bankruptcy last March after Pennsylvania Attorney General Mike Fisher sued the Bucks County, PA, company for allegedly selling thousands of computer systems nationwide while failing to deliver some or all of the products ordered.

Total sales during the time the company was in business topped $272 million.

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