Dell to pay US$4 million for deceptive business practices

Dell will pay US$4 million to settle charges of fraudulent and deceptive business practices brought against the company by New York’s Office of the Attorney General.

The New York attorney general filed suit against Dell in 2007, charging that the company misled customers by charging high credit rates when they were promised cheap financing. The suit also alleged Dell didn’t provide customers with full details of its next-day service program and didn’t deliver promised rebates and warranties.

In May 2008, New York’s Supreme Court ruled on the lawsuit, finding Dell guilty of fraud, false advertising, deceptive business practices and abusive debt collection practices.

In addition to the $4 million payment, Dell also agreed to change its advertising, sales and finance practices. The settlement requires Dell to disclose detailed information about the level of service customers will receive and the estimated percentage of customers who qualify for low-cost financing.

“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 Andrew M. Cuomo said in a statement announcing the settlement.

In July this year, Dell also forked out $9.9 million to settle a class-action lawsuit in which former employees accused the company of sex discrimination.

New Yorkers harmed by Dell’s business practices covered in the lawsuit can file an application for restitution online,
 the Office of the Attorney General said.

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