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                                                                     Exhibit 3.7

                            CERTIFICATE OF CORRECTION
                                     TO THE
                          CERTIFICATE OF DESIGNATION OF
                                  iPARTY CORP.
                              FILED AUGUST 29, 2000

      iPARTY CORP., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the "Corporation"), DOES HEREBY
CERTIFY, pursuant to Section 103(f) of the General Corporation Law of the State
of Delaware, as follows:

      1. The Corporation's Restated Certificate of Incorporation was filed by
the Delaware Secretary of State on June 30, 1998, and was amended, in relevant
part, by the filing of the Certificate of the Designations, Powers, Preferences
and Rights of the Series E Convertible Preferred Stock of the Corporation (the
"Series E Certificate of Designations") by the Delaware Secretary of State on
August 29, 2000.

      3. The Series E Certificate of Designations is an inaccurate record of the
corporate action therein referred to. The specific inaccuracy is the dollar
amount "$0.375" in line seven (7) of Section 4(a) of the Series E Certificate of
Designations, which amount should be "$3.75".

      5. The inaccurate portion of the Certificate of Designations in corrected
form is as follows:

4.    LIQUIDATION PREFERENCE.

               (a)      Upon any liquidation, dissolution or winding up of the
                        Corporation, whether voluntary or involuntary
                        ("Liquidation"), the holders of record of the shares of
                        the Series E Preferred Stock shall be entitled to
                        receive, immediately after any distributions to Senior
                        Securities required by the Corporation's Certificate of
                        Incorporation and any certificate(s) of designation,
                        powers, preferences and rights, and before and in
                        preference to any distribution or payment of assets of
                        the Corporation or the proceeds thereof may be made or
                        set apart for the holders of Junior Securities, an
                        amount in cash equal to $3.75 per share (subject to

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                        adjustment in the event of stock splits, combinations or
                        similar events). If, upon such Liquidation, the assets
                        of the Corporation available for distribution to the
                        holders of Series E Preferred Stock and any Parity
                        Securities shall be insufficient to permit payment in
                        full to the holders of the Series E Preferred Stock and
                        Parity Securities, then the entire assets and funds of
                        the Corporation legally available for distribution to
                        such holders and the holders of the Parity Securities
                        then outstanding shall be distributed ratably among the
                        holders of the Series E Preferred Stock and Parity
                        Securities based upon the proportion the total amount
                        distributable on each share upon liquidation bears to
                        the aggregate amount available for distribution on all
                        shares of the Series E Preferred Stock and of such
                        Parity Securities, if any.

      The remainder of the original Series E Certificate of Designations is
accurate and shall remain in effect without change.

      IN WITNESS WHEREOF, iPARTY CORP. has caused this Certificate of
Correction to be signed by its President and attested by its Secretary on
this 31st day of October 2002.

                                    iPARTY CORP.



                              By:   /s/ SAL PERISANO
                                    -----------------
                                    Name:   Sal Perisano
                                    Title:  Chief Executive Officer




                          Attest:   /s/ DANIEL DEWOLF
                                    -----------------
                                    Name:   Daniel DeWolf
                                    Title:  Secretary