WebTV Networks Inc., a marketer of Internet access devices, agreed last month to settle Federal Trade Commission charges that it was deceptive and in violation of federal law in its advertising for the WebTV system. Terms of the settlement include barring the company from making deceptive advertising claims about the performance capabilities of the system and carrying out a multichannel consumer education campaign in major magazines, retail stores and on the Web. The FTC’s complaint found that ads for the system claimed the system was equivalent to a computer with respect to accessing Internet content. The campaign is required to outline both advantages and disadvantages of using Internet access devices compared with computers. The settlement also requires WNI to make clear and conspicuous disclosure of long-distance telephone toll charges consumers may incur while using WebTV and issue reimbursements to some former subscribers for such charges already incurred. WNI, based in Mountain View, CA, is a subsidiary of Microsoft Corp.
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