The Federal Trade Commission has settled charges against an Internet company that advertised designer-name brands as bargains but delivered either unusable or cut-rate products.
The settlement bars the defendant Michael P. Casey, and his company, Bargains & Deals LLC doing business as Keith’s Wholesale and Bargains and Deals Wholesale, from misrepresenting products or services and to pay $15,000 for consumer redress, the FTC.
In October 2001, the FTC charged that the defendants used their Web sites to advertise merchandise such as Foster Grant, Oakley, and Ray Ban sunglasses, Seiko watches, and famous maker blue jeans and clothing. The advertisements targeted buyers of bulk products to be resold at flea markets, through Internet auction sites, and other means.
The agency alleged that, contrary to the defendants’ advertising claims, customers received merchandise that was either in unusable condition or did not contain the brand names that had been advertised. In some cases, customers received no merchandise at all, the FTC said.
The settlement was filed this month in U. S. District Court for the Western District of Washington.
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