Computer manufacturer Dell is to pay out $4million in penalties, costs and damages over accusations of deceptive advertising, according to the Associated Press.
A case was brought against the company in 2007 by the New York attorney generals office, when it emerged that the company was advertising zero interest credit deals for new computers before denying the application. Customers were then encouraged to buy the computer at a far higher rate. Other customers were also found to have paid for warranty services that they never received.
The Texan based computer maker denied the allegations, but New York's Supreme Court ruled that Dell was guilty of fraud, leading to the financial settlement with the New York attorney general. In addition to the settlement Dell agreed to change it's advertising practices, but does not have to admit any wrongdoing.
"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 in a statement. "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."
A spokesman for Dell said the company was happy the matter was resolved.
Affected customers can apply for refunds through the the New York attorney general's website for the case at www.nyagdell.com.
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