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Short take: Gateway settles with FTC

Gateway agreed to pay a fine of $290,000 to settle FTC charges that the direct vendor misrepresented its refund policy and on-site warranty service. Regulators said Gateway advertised a money-back guarantee of a "full refund," when the company actually deducts shipping charges. Also, it does not provide on-site service "upon request" but instead first determines the customer cannot fix the problem. Gateway admitted no violations.

Gateway agreed to pay a fine of $290,000 to settle FTC charges that the direct vendor misrepresented its refund policy and on-site warranty service. Regulators said Gateway advertised a money-back guarantee of a "full refund," when the company actually deducts shipping charges. Also, it does not provide on-site service "upon request" but instead first determines the customer cannot fix the problem. Gateway admitted no violations.