DELL needs no introduction. But it needs to give us a lot of explanations. American computer manufacturer Dell will be paying $4m (£2.4m) in order to settle accusations. DELL has been accused of misleading its customers and tricking them into paying large some of money. Attorney General Andrew M. Cuomo today announced that Dell and its subsidiary, Dell Financial Services (DFS), have agreed to pay the Attorney General’s Office $4 million in “restitution, penalties and costs to resolve charges of fraudulent and deceptive business practices that scammed consumers across New York State.”
Earlier in 2007 the company was said to be advertising cheap financing and warranties.
“According to state officials, the Texan PC maker often advertised zero interest credit deals for new computers before denying the customer’s application and then encouraging them to buy at a far higher rate – often more than 20% interest.” Dell had completely failed to provide the support services for what the customer’s had paid for and thus was declared as a “bait and switch” by attorney general Andrew Cuomo. So far DELL has denied any wrongdoing, but has agreed to pay the penalty.
“Today’s announcement is the final step in ensuring New Yorkers harmed by Dell’s deceptive and illegal business practices are fully compensated,” said Attorney General Cuomo. “Going forward, this deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services, to avoid this kind of fraud at the consumer’s expense. My office is committed to ensuring a fair and honest marketplace across New York by rooting out these unlawful practices, and we encourage anyone who was ripped off by Dell to come forward and file a claim to get their money back.”
Along with the $4 million in restitution, penalties and fees, the settlement also requires DELL to make considerable changes to its advertising, sales and financing practices. DELL will also be expected to advise its customers before they purchase anything. Cuomo said was a victory for consumers, and attacked Dell’s “deceptive and illegal business practices”.
“Going forward, this deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services to avoid this kind of fraud at the consumer’s expense,” he said in a statement.