MICROSOFT, HEWLETT-PACKARD SETTLE WITH FTC OVER POCKET PC ADS

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(April 3, 2001) -- The Federal Trade Commission today formally announced it had settled its case against Microsoft Corp. and Hewlett-Packard stemming from a campaign for Microsoft's Pocket PC operating system.

The FTC had claimed the ads, from Interpublic Group of Cos' McCann Erickson Worldwide, San Francisco, which boasted "Can your Palm do that?" failed to adequately state that H-P's pocket computers needed a separate modem to access the Internet.

Under the agreement with the FTC, both companies agreed to clearly label in any future advertising the need for any additional products. Microsoft will also run quarter-page ads in major daily newspapers including the Chicago Tribune, Los Angeles Times, The New York Times, Seattle Post-Intelligencer and The Washington Post detailing how "personal digital assistants" operate. -- Ira Teinowitz

Copyright April 2001, Crain Communications Inc.

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