Systemax, a computer retailer, and its subsidiaries, Tigerdirect and Onrebate, will pay the state of Florida $200,000 and donate $100,000 to the Florida Alliance of Boys and Girls Club as part of a deal to settle allegations the companies failed to issue rebates to consumers as advertised.
The Florida Attorney General's Office, which began investigating the companies in April 2007, is dismissing the complaint as part of the settlement. However, the agreement requires the companies to process rebates as advertised and take steps to make sure they are handled properly.
The state looked into the companies after complaints from consumers that they were falsely led to believe through product ads they would receive rebates within eight to 10 weeks. The companies said that any delays in issuing rebates were because of computer error or an inefficient process. The companies also said the problems were addressed as soon as they learned about them.
No one from Systemax could be reached for comment. The donation to the Boys and Girls Club will go to buy computer equipment.
Systemax to refund Florida $200,000 after complaints about rebates