Computer maker Gateway, Inc. has been accused of misleading its
US customers by offering “free” internet access without revealing
that many subscribers would be charged long-distance telephone
rates, according to a class action lawsuit filed yesterday.
The complaint charges that Gateway violated the California Consumer
Legal Remedies Act and the California statute prohibiting
fraudulent and unfair business practices and false and misleading
advertising. In addition to these statutory causes of action, the
complaint, which also refers to a misleading credit card offer by
Gateway, alleges that the company violated the California common
law pertaining to fraud and deceit, negligent misrepresentation,
and intentional infliction of emotional distress. The action is
pending in the Superior Court of the State of California, County of
San Diego.
The complaint alleges that Gateway untruthfully advertised that
certain of its product packages included free internet access for
the first year. The offer was deceptive and fraudulent, the
complaint alleges, because Gateway did not reveal that thousands of
people would be charged long-distance connection fees under
Gateway's purported “free” internet access plan because Gateway did
not provide local-access numbers. The complaint alleges that these
customers were deprived of the “free” Internet access advertised
and offered by Gateway, and subscribed at their own expense with an
ISP, unwittingly paid long distance charges, or refrained from
accessing the internet.
The lawsuit seeks to stop Gateway from continuing its allegedly
deceptive practices and to order that it gives up its allegedly
ill-gotten gains, in addition to the award of monetary compensation
to class members for injuries suffered as a result of Gateway's
alleged wrongdoing.
