New York says Dell defrauded PC buyers

New York Attorney General Andrew Cuomo has filed a lawsuit in Albany County Supreme Court charging that Dell used fraud and false advertising to increase profits on PC sales. According to the Wall Street Journal, the lawsuit alleges that Dell misled its customers by applying high credit rates to their computer purchases although it had promised cheap financing. The suit also reportedly alleges that Dell failed to deliver rebates, warranties, and technical support as simply as it had promised. Dell denies the charges and plans to fight the suit, according to spokesman Bob Kaufman: "Dell will vigorously defend itself in court. We are confident that our practices will be found to be fair and appropriate. While even one dissatisfied customer is too many, the allegations in the AG's filing are based upon a small fraction of Dell's consumer transactions in New York."

News source: InfoWorld

Report a problem with article
Previous Story

Amazon announces long-rumored DRM-free music store

Next Story

Halo 3 to be Released September 25th (26th in Europe)


Commenting is disabled on this article.

Dell seems to be overcharging by a lot lately. I built a PC for $800 this week, a slightly-lesser spec'd Dell was $1500. They don't always give away those free monitors with systems anymore either, which eliminates a major advantage they had.

It used to be that Dell was almost as cheap as home-building, but it looks like home building is once again a cheaper option. HP was just as bad, so I wouldn't exactly blame this on Dell alone.

toadeater said,
Dell seems to be overcharging by a lot lately. I built a PC for $800 this week, a slightly-lesser spec'd Dell was $1500.

on topic - gladi didn't get a dell then was going to get one but theprce of building one was to huge

Can i get the specs on that looking to build me a new pc without breaking my pocket

Texas is filing a lawsuit against dell as well acusing them of not fulfilling the correct customer support plans people paid for. Like getting the in-home support only to find out that they only get over the phone support.

I had this happen to me around Thanksgiving last year. My parents were wanting to buy a computer for my sister, but they didn't want to use their credit card, so I offered to put it on my Dell card. It said 0% interest and no payments for 6 months. About a month later, I got a bill from Dell and they were charging me about a 24% interest rate. I decided to just pay it off outright and I'll never use my Dell card again (i've used it for many years and never had a problem before).

Good, now someone needs to look into their Educational/Government/Corporate units and the sweetheart deals they have setup, bribes, stifling competition, etc. Hopefully another State attorney gets the guts to do so and exposes some of the underhanded practices Dell uses.

I may not live in New York, but I have personally had this happen to me in Canada. When I purchased a Dell XPS 700 system in December 2006, Dell had explicitly stated that we were eligble for 9.99% interest and no interest, no payments for 18 months. However, after the order was placed we recieved a very unprofessional email from a Dell Financial Canada employee asking for my banking information again. After ruling out that it wasn't some sort of scam I sent the information through, and we received the confirmation which stated that the interest had jumped to 28.8% and there was no 18 month no interest, no payment applied. When we tried contacting Dell in regards to the matter, they said that there was nothing we could do and to call Dell Financial Services Canada. After calling Dell Financial Services Canada, they basically told me that "that's the way it goes and you are legally binded to our contract and must pay the 28.8% interest, it doesn't matter what was on the Dell order website".

Needless to say, I won't purchase another computer from Dell again.