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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE REBATE PURCHASES UMAX TECHNOLOGIES VIOLATION CASH SUCCESSORS REPRESENTATION ACT CONSUMER PROTECTION CONSENT AGREEMENT JURISDICTION CREDIT MERCHANDISE TERMINATE APPEALING FAIL REBATE REQUEST RULING PRACTICES THEREAFTER JURISDICTIONAL FACTS PROVISION MATTER REASONABLE CASH COMPENSATION OFFICERS |
9923242
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
UMAX TECHNOLOGIES, INC., a corporation.
DOCKET NO. C-3928
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 attorney, 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:
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2
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COMPLAINT
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EXTRACTED KEY WORDS
FEDERAL TRADE COMMISSION RESPONDENT SCANNERS UMAX ACT ASTRA REBATE COUPONS EXHIBIT UMAX TECHNOLOGIES ALLEGES PRACTICES COMPLAINT AFFECTING COMMERCE CASH REBATES VIOLATION CALIFORNIA COMPUTER SCANNERS LABELING PARAGRAPH REPRESENTATION PURCHASERS REQUESTS RECEIVING REPRESENTATION SET MISLEADING UNFAIR DECEPTIVE ACTS DONALD CLARK |
9923242
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
UMAX TECHNOLOGIES, INC., a corporation.
DOCKET NO. C-3928
COMPLAINT
The Federal Trade Commission, having reason to believe that UMAX
Technologies, Inc., 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 UMAX Technologies, Inc., is a California corporation
with its principal office or place of business at 3561 Gateway
Boulevard, Fremont, California 94538.
2. Respondent has advertised, labeled, offered for sale, sold, and
distributed products to the public, including computer scanners.
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 disseminated or has caused to be disseminated
labeling and rebate coupons for computer scanners, including but not
necessarily limited to the attached Exhibits A and B. The labeling and
rebate coupons contain the following statements:
A. "Astra 1220P $30 Rebate"
"Please allow 10 to 12 weeks to receive your rebate."
(Exhibit A, label attached to packaging of Astra 1220P scanners).
B.
" UMAX
Astra 1220S
$50 Rebate"
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3
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ANALYSIS
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EXTRACTED KEY WORDS
REBATE RESPONDENT CONSENT ORDER PURCHASERS CASH SPECIFY RECEIVING COMMISSION AGREEMENT SCANNERS MERCHANDISE UMAX COMPLAINT ALLEGES REBATE REQUEST PROVISION FUTURE PURCHASES CONSUMERS FAILING ADVERTISES COMPUTER SCANNERS REPRESENTATION ASTRA CREDIT VIOLATING MAIL ORDER RULE DELIVERY DELAY CANCELING REASONABLE CASH COMPENSATION |
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 respondent UMAX
Technologies, Inc. ("UMAX").
The proposed consent order has been placed on the public record for
thirty (30) days for reception 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.
UMAX advertises, labels and sells various types of computer scanners.
This matter concerns allegedly deceptive rebate advertising claims
made in conjunction with the sale of computer scanners. The
Commission's proposed complaint alleges that UMAX falsely represented
that purchasers of its Astra 1220P scanner, for example, would receive
a $30.00 cash rebate, and that purchasers of its Astra 1220S scanner,
for example, would receive a $50.00 cash rebate, within 12 weeks of
UMAX's receipt of purchasers' rebate requests. The complaint alleges
that in many instances purchasers received their rebates one to five
months late.
The proposed consent order contains provisions designed to prevent
respondent from engaging in similar acts and practices in the future.
Part I of the proposed order prohibits respondent from misrepresenting
the time in which any cash rebate, or rebate in the form of credit
towards future purchases, will be mailed to consumers. It also
prohibits respondent from failing to provide such rebates within the
time specified, or if no time is specified, within thirty days.
Part I of the proposed order also prohibits respondent from violating
any provision of the FTC's Mail Order Rule in connection with rebates
in the form of merchandise. Among other things, the Mail Order Rule
prohibits marketers from failing to provide rebates in the form of
merchandise within the time they specify for delivery, or if no time
is specified, within thirty days, unless they offer consumers the
option of consenting to a delay or canceling the rebate request and
promptly receiving reasonable cash compensation instead of the
merchandise originally offered. Finally, Part I of the proposed order
similarly prohibits respondent from failing to provide rebates in the
form of services or any other consideration (other than cash, credit
towards future purchases, or merchandise) within the time it specifies
for delivery, or if no time is specified, within thirty days, unless
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4
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE PROPOSED RESPONDENT AGREEMENT UMAX TECHNOLOGIES REBATE REPRESENTATION PURCHASES DRAFT COMPLAINT CONSENT OFFICER ACCEPTANCE VIOLATION CASH SUCCESSORS PRACTICES COUNSEL FACTS CONSUMER PROTECTION TERMINATE MANNER CREDIT MERCHANDISE APPEALING PURSUANT PROCEEDING NOTIFY PROVISION |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
UMAX TECHNOLOGIES, INC., a corporation.
FILE NO. 992-3242
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of UMAX Technologies, Inc., 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 UMAX Technologies, Inc., by its
duly authorized officer, and counsel for the Federal Trade Commission
that:
1 Proposed respondent UMAX Technologies, Inc., is a California
corporation with its principal office or place of business at
3561 Gateway Boulevard, Fremont, California 94538.
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
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