Gateway to Pay $290,000 to Settle FTC Charges

Gateway Inc. agreed to pay $290,000 to settle charges that it falsely offered money-back guarantees and full refunds to consumers, the Federal Trade Commission said. The agency said the Sioux City, S.D.-based computer manufacturer offered guarantees of a full refund when, in fact, it deducted the cost of shipping the merchandise to consumers, which averaged more than $62. The FTC also said Gateway, one of the world’s leading direct marketers of laptop and desktop PCs, would provide on-site service only after it diagnosed the problem over the telephone and determined that the consumer could not make the repair. Gateway officials could not be reached for comment. Gateway shares dropped $1.44 to close at $61.75 on the New York Stock Exchange.