FTC: Watch out for 'free' holiday PCs

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by Ashlee Vance

(IDG) -- The U.S. Federal Trade Commission (FTC) warned computer buyers Tuesday to watch out for Santas trying to bring free computers down the chimney during the holiday season.

The FTC ushered a somber yuletide note to consumers looking for a bargain when shopping for computers in the coming months. With vendors posting PC sale signs like "PCs for $199" or even "Free PCs," the government urged users to read the fine print behind the PC bargains and avoid hidden charges that often come as an unexpected surprise.

"If you're in the market for a personal computer, the Federal Trade Commission wants you to know that 'free' doesn't always mean free," the FTC said in a statement.

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The low-priced computers often come with required Internet service contracts bundled along with the machine. In many cases, the contracts run up to three years and place a high price for connecting to the Web. At between $20 and $30 a month, the cost for an ISP (Internet Service Provider) can run close to $1,000 over three years. A number of companies charge well below that already, so the FTC wants consumers to look toward the long term before buying a discount PC.

Additionally, users outside of major metropolitan areas may be required to pay long-distance charges when connecting to the Net or incur a charge of around $5 to $6 an hour for using an ISP's toll free number.

Computer makers do tend to offer rebates but even these bonuses remain difficult to find buried in a contract or advertisement, the FTC said. Even if the user finds the rebate, he or she may have to wait some time before reaping the rewards.

"Usually, you have to apply for the rebate in writing, mail in documentation of the sale and then wait sometimes months until you receive your rebate check," the FTC said in a statement.

The FTC also warns that users may buy a new computer only to find that the monitor and other components were not included in the sale. To avoid such mishaps, the FTC asks that consumers ask a number of questions before buying a new machine in order to make sure that Santa puts the right gift under the tree.

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