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1
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EXHIBITS A-F
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EXTRACTED KEY WORDS
JORNADA ACCESSORIES EXHIBIT MICROSOFT WINDOWS BOOKS FIT COLOR POCKET NEWS EXCEL ONLINE DESIGN FUN OUTLOOK SURF USB GUIDE USB CRADLE AUDIO BOOKS WEB SITE SLIM BUSY LIFESTYLE-AND SPORTS SCORES STOCK TRANSFER MULTIMEDIA FILES ELECTRONIC BOOKS PHOTOS PLAY GAMES REVIEW |
F Exhibit A "e
DatavIsIon
445 Filth Avenus (at 39th)
: /,
,
_. `, :.,
It can if it's holding an HP Jornada
Pocket PC.
Who wants only part of the Web when you can have
it all? With the new Pocket PC, you can get online with
Microsoft@ Pocket Internet Explorer, take advantage
of The Everyday Web at msn.com, or access any URL'.
Order groceries, make a trade or book your next
vacation knowing your transaction is secure. Or simply
download your favorite pages and take them with
you. So, the next time you open your palm...make
sure it's holding an HP Jornada Pocket PC.
What else can the Pocket PC do?
Go to hp.com/jornada
Exhibit B
Do it all in style
* Slim design makes it easy to
carry anywhere
- Elegant alloy casing allows you
to project proFessionalism
* Personalize to fit your needs with
a variety of accessories
Exhibit C
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2
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION INTERNET COMPLAINT FEDERAL TRADE COMMISSION CONSUMER DISCLOSURE REPRESENTATION EMAIL ACCOUNTS ADVERTISEMENT HEWLETT-PACKARD COMPANY SUCCESSORS ACT VIOLATION MATTER AGREEMENT JURISDICTION PERSONNEL SALE AFFECTING TERMINATE ORDINARY CONSUMER COMPREHEND PROMOTION CONTRASTS DIRECTORS CONNECTION APPEALING ONLINE SERVICES AUDIO |
002 3220
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS: Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
Thomas B. Leary
In the Matter of
HEWLETT-PACKARD COMPANY, DOCKET NO. C-4009
a corporation. DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of certain acts and practices
of the respondent named in the caption hereof, and the respondent having been furnished
thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which, if issued by the
Commission, would charge respondent with violation of the Federal Trade Commission Act; and
The respondent, its attorneys, and counsel for Federal Trade Commission having thereafter
executed an agreement containing a consent order, an admission by the respondent of all the
jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of
said agreement is for settlement purposes only and does not constitute an admission by
respondent that the law has been violated as alleged in such complaint, or that the facts as
alleged in such complaint, other than jurisdictional facts, are true and waivers and other
provisions as required by the Commission's Rules; and
The Commission having thereafter considered the matter and having determined that it had
reason to believe that the respondent has violated the said Act, and that complaint should issue
stating its charges in that respect, and having thereupon accepted the executed consent
agreement and placed such agreement on the public record for a period of thirty (30) days, now
in further conformity with the procedure prescribed in § 2.34 of its Rules, the Commission
hereby issues its complaint, makes the following jurisdictional findings and enters the following
order:
Page 1 of 5
1. Respondent Hewlett-Packard Company is a Delaware corporation with its principal office or
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3
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CONSENT AGREEMEMT
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT INTERNET FEDERAL TRADE COMMISSION PROPOSED RESPONDENT REPRESENTATION AGREEMENT HEWLETT-PACKARD COMPANY DISCLOSURE CONSUMER EMAIL ACCOUNTS ADVERTISEMENT DRAFT COMPLAINT COUNSEL OFFICER ACCEPTANCE SUCCESSORS CONSENT ORDER PRACTICES FACTS VIOLATION MANNER CONTRADICT PERSONNEL SALE AFFECTING TERMINATE CONNECTION APPEALING |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
HEWLETT-PACKARD COMPANY, a corporation.
FILE NO. 002-3220
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of Hewlett-Packard Company, a corporation
("proposed respondent"). Proposed respondent, having been represented
by counsel, is willing to enter into an agreement containing a consent
order resolving the allegations contained in the attached draft
complaint. Therefore,
IT IS HEREBY AGREED by and between Hewlett-Packard Company, by its
duly authorized officer, and counsel for the Federal Trade Commission
that:
1. Proposed respondent Hewlett-Packard Company is a Delaware
corporation with its principal office or place of business at
3000 Hanover Street, Palo Alto, California 94304.
2. Proposed respondent admits all the jurisdictional facts set
forth in the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain
a statement of findings of fact and conclusions of law;
and
c. All rights to seek judicial review or otherwise to
challenge or contest the validity of the order entered
pursuant to this agreement.
4. This agreement shall not become part of the public record of
the proceeding unless and until it is accepted by the
Commission. If this agreement is accepted by the Commission,
it, together with the draft complaint, will be placed on the
public record for a period of thirty (30) days and information
about it publicly released. The Commission thereafter may
either withdraw its acceptance of this agreement and so notify
proposed respondent, in which event it will take such action as
it may consider appropriate, or issue and serve its complaint
(in such form as the circumstances may require) and decision in
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4
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COMPLAINT
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EXTRACTED KEY WORDS
RESPONDENT INTERNET ADVERTISEMENTS EXHIBIT FEDERAL TRADE COMMISSION ACT E-MAIL ACCOUNTS PACKAGE DEPICTION DISCLOSE CONSUMERS PRACTICES ANYTIME MODEM SEPARATE ONLINE REPRESENTATION MOBILE TELEPHONE HEWLETT-PACKARD COMPANY ALLEGES SOLD EXCEL INTERNET EXPLORER COMPLAINT AFFECTING COMMERCE DISSEMINATION HYPERLINK HOLDING ATTACHMENTS |
002 3220
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
HEWLETT-PACKARD COMPANY, DOCKET NO. C-4009
a corporation
COMPLAINT
The Federal Trade Commission, having reason to believe that Hewlett-Packard Company, a
corporation ("respondent"), has violated the provisions of the Federal Trade Commission Act,
and it appearing to the Commission that this proceeding is in the public interest, alleges:
1. Respondent Hewlett-Packard Company is a Delaware corporation with its principal office or
place of business at 3000 Hanover Street, Palo Alto, California 94304.
2. Respondent has manufactured, advertised, offered for sale, sold, and distributed products to
the public, including HP Jornada Pocket PC handheld computers. These devices function as
personal digital assistants, featuring Microsoft Corp.'s Windows CE operating system. They
provide ready access to addresses, tasks, calendars, and memos and are equipped with software
programs, including "Pocket" versions of Word, Excel, Outlook, and Internet Explorer.
3. The acts and practices of respondent alleged in this complaint have been in or affecting
commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.
4. Respondent has participated in the dissemination of cooperative advertisements for the HP
Jornada Pocket PC, including but not necessarily limited to the attached Exhibits A and B.
Respondent has also disseminated or has caused to be disseminated other advertisements and
packaging for the HP Jornada Pocket PC, including but not necessarily limited to the attached
Exhibits C through H. These advertisements and packaging contain the following statements
and depictions:
A. (Exhibit A: newspaper advertisement)
"Can your palm do that?"
Page 1 of 5
[Depiction: A man next to a close-up of an HP Jornada Pocket PC. The screen of the device
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5
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ANALYSIS
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EXTRACTED KEY WORDS
EMAIL ACCOUNTS PROPOSED ORDER JORNADA ADVERTISEMENTS CONSUMERS MOBILE TELEPHONE CONSENT ORDER COMMISSION AGREEMENT ALLEGES REPRESENTATIONS RESPONDENT DISCLOSE COVERED DEVICE ABILITY COMPLAINT PURCHASE SEPARATE MODEM PUBLIC RECORD MATTER JORNADA POCKET HANDHELD PERSONNEL ANYTIME CONNECTION LAND MATERIALS PRACTICE PDA |
Analysis of Proposed Consent Order
To AId Public Comment
The Federal Trade Commission has accepted, subject to final approval,
an agreement containing a consent order from Hewlett-Packard Company
("HP").
The proposed consent order has been placed on the public record for
thirty (30) days for receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received, and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter involves alleged misleading representations for
respondent's HP Jornada Pocket PC handheld computer ("Jornada") -- a
personal digital assistant ("PDA"), featuring Microsoft Corp.'s
Windows CE operating system. This matter concerns allegedly false and
deceptive advertising claims made in cooperative advertisements, other
advertisements, and product packaging regarding the ability of the
Jornada to access the Internet and email accounts.
According to the FTC complaint, HP falsely claimed that the Jornada
contains everything that consumers need to access the Internet and
their email accounts, at anytime and from anywhere. In fact, in order
to access the Internet and their email accounts using the Jornada,
when away from their computers ("remotely"), consumers must purchase
and carry a separate modem or similar device that in most cases must
be connected to a land telephone line or a mobile telephone; and
moreover, many mobile telephones currently in use in the United States
are not compatible with the Jornada Pocket PC. The complaint also
alleges that in representing that consumers can use the Jornada to
access the Internet and their email accounts, at anytime and from
anywhere, respondent failed to disclose or failed to disclose
adequately that in order to access remotely the Internet and their
email accounts, consumers must purchase and carry a separate modem or
similar device. The complaint alleges that the failure to disclose
this material fact is a deceptive practice.
The proposed consent order contains provisions designed to prevent HP
from engaging in similar acts and practices in the future.
Specifically, Parts I and II address representations regarding any PDA
or handheld Internet or email access device that requires the use of
an additional device or connection to a telephone land line in order
to access the Internet or email accounts remotely ("covered devices").
Part I of the proposed order prohibits respondent from making any
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6
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CONCURRING STATEMENT
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EXTRACTED KEY WORDS
NEGOTIATIONS CONSENT ORDERS RESPONDENTS COMMISSIONER DOCKET COMPLAINTS CAMPAIGN UNDERTAKING REMEDIES DISAGREE NONETHELESS RESERVATIONS PROPOSED RESPONDENT CONFINES POSE CONSUMER EDUCATION REMEDY COMPLAINT ALLEGATIONS EXCISE LEGALLY ENFORCEABLE OBLIGATIONS SETTLEMENT MOREOVER FTC CONSUMER EDUCATION INITIATIVES PUBLICIZE CONSENT AGREEMENTS DEEP-POCKETED RESPONDENTS SEEKING PROMOTIONAL CAMPAIGN EXCHANGE WEAKER ORDER |
CONCURRING STATEMENT OF
COMMISSIONER ORSON SWINDLE
In the Matters of
Microsoft Corp., Docket No. C-4010
and
Hewlett-Packard Co., Docket No. C-4009
I voted to issue both of these consent orders, because they are
adequate relief for the violations alleged in the complaints.
Nonetheless, I have strong reservations about the use of unenforceable
"voluntary" consumer education. In each of these cases, staff
negotiated with the proposed respondent to achieve a consumer
education campaign that is being undertaken wholly outside the
confines of the order. Consumer education remedies sometimes pose
difficult issues, and Commissioners may disagree as to whether a
particular consumer education remedy is appropriate and reasonably
related to the complaint allegations. Yet the solution for such
disagreements is not simply to excise such remedies from the legally
enforceable obligations that respondents are undertaking in
settlement. If consumer education is important enough to include in
negotiations, there likely is some impact on what is achieved in
negotiating the terms of the consent order itself. Moreover, to the
extent that the FTC promotes such "voluntary" consumer education
initiatives in our efforts to publicize the consent agreements, we may
see many more deep-pocketed respondents seeking to add a bit of
"voluntary" and unenforceable consumer education to a broader
promotional campaign in exchange for a weaker order than might
otherwise be negotiated.
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7
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CONCURRING STATEMENT OF COMMISSIONER ORSON SWINDLE
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EXTRACTED KEY WORDS
CONSENT NEGOTIATIONS RESPONDENTS COMMISSIONER CONSENT AGREEMENTS PUBLICIZE COMPLAINT CAMPAIGN UNDERTAKING REMEDIES DISAGREE HEWLETT-PACKARD ADEQUATE RELIEF NONETHELESS RESERVATIONS CONFINES POSE CONSUMER EDUCATION REMEDY COMPLAINT ALLEGATIONS EXCISE LEGALLY ENFORCEABLE OBLIGATIONS SETTLEMENT MOREOVER FTC CONSUMER EDUCATION INITIATIVES DEEP-POCKETED RESPONDENTS SEEKING PROMOTIONAL CAMPAIGN EXCHANGE WEAKER ORDER |
_________________________________________________________________
Concurring Statement of Commissioner Orson Swindle
In the Matters of
Microsoft Corp., File No. 002-3331 and
Hewlett-Packard Co., File No. 002-3220
_________________________________________________________________
I voted to accept both of these consent agreements for public comment,
because the proposed consent orders are adequate relief for the
violations alleged in the complaint. Nonetheless, I have strong
reservations about the use of unenforceable "voluntary" consumer
education. In each of these cases, staff negotiated with the proposed
respondent to achieve a consumer education campaign that is being
undertaken wholly outside the confines of the order. Consumer
education remedies sometimes pose difficult issues and Commissioners
may disagree as to whether a particular consumer education remedy is
appropriate and reasonably related to the complaint allegations. Yet
the solution for such disagreements is not simply to excise such
remedies from the legally enforceable obligations that respondents are
undertaking in settlement. If consumer education is important enough
to include in negotiations, there likely is some impact on what is
achieved in negotiating the terms of the consent order itself.
Moreover, to the extent that the FTC promotes such "voluntary"
consumer education initiatives in our efforts to publicize the consent
agreements, we may see many more deep-pocketed respondents seeking to
add a bit of "voluntary" and unenforceable consumer education to a
broader promotional campaign in exchange for a weaker order than might
otherwise be negotiated.
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