Microsoft to apologise over 'misleading' ads

Microsoft has agreed to apologise to consumers for an advert that implied that its handheld computer came with built-in internet access.

The move comes after US regulators said that advertising for the firm's Pocket PC, published in April last year, failed to make it clear that a modem was needed at extra cost.

Microsoft has agreed to write an essay detailing the limitations of the device for publication in newspapers across the US.

"Consumers are faced with so many choices when they shop for handheld computers," said the director of the Federal Trade Commission's specialist consumer protection arm.

"It is critical these ads stick to the facts."

Jodie Bernstein added that consumers "shouldn't have to use a magnifying glass" to be clear about what is on offer.

A Microsoft spokesman said the company was pleased to resolve the complaint, stressing that the problem was a matter of the size of small print.

Microsoft and Pocket PC partners Hewlett-Packard have agreed to disclose the need for any additional products in all future advertising.