PeoplePC to Pay $100,000 in Settlement

PeoplePC Inc., a San Francisco-based computer seller, agreed to pay $100,000 in penalties to settle Federal Trade Commission claims that it didn’t tell customers their deliveries would be delayed and didn’t provide copies of warranties.

The company, a unit of Internet service provider EarthLink Inc., didn’t notify customers in advance when it would be unable to deliver merchandise within two to three weeks, as promised, the FTC said. PeoplePC sells its computers through a Web site and by telephone.

“The final settlement is what we expected,” EarthLink spokesman Dan Greenfield said.

The FTC said PeoplePC didn’t tell customers they could receive free copies of warranties. The company also didn’t tell customers they could cancel their orders because of delays in shipping, according to the complaint.

The company agreed to comply with FTC rules in the future, the commission said. The settlement did not amount to an admission by PeoplePC of any violation of law, the FTC said.