This Story Posted:
December 11th
1:12 PM/CST


Thursday, December 10th

Iomega Fined US$900,000 by FTC
[1:12 PM] The FTC has leveled the largest fine ever leveled in a non-fraudulent case involving The Mail Order Rule against Iomega. The fine totaled US$900,000. The ruling stated that Iomega had violated The Mail Order Rule in its print advertisements, at points of sale, on boxes, on the radio and on Iomega's Web site. The company failed to offer consumers "the option to consent to a delay or to receive a refund." As well as failed to provide "prompt, automatic refunds or rebates" when it could not fulfill orders on time, and to provide a costless means of canceling orders; and to have "a reasonable basis for many of its shipping representations." The company also failed to deliver rebates in a timely manner according to the FTC.

The Mac Observer Spin: Iomega has struggled in recent years as the removable storage in general has had a lot of trouble. Falling profits and changing technologies have left the maker of the popular Zip and Jaz drives weaker than it was two years ago. Iomega's main competition, SyQuest, recently ceased operations and there are rumors abounding that Iomega may buy what's left of the bankrupt company.