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 Yorks 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 its advertising practices, but does not have to admit any wrongdoing.
"Todays announcement is the final step in ensuring New Yorkers harmed by Dells 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 consumers 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 generals website for the case at www.nyagdell.com.