This is a very unlucky year for Dell, as they have to pay over $4 million due to their frauds, deceptive business practices, and false advertising. In 2007, Attorney General Andrew Cuomo filed a suit, accusing Dell of all the above mentioned. It looks like Dell offered misleading financing and was even involved in “abusive debt collection practices.” Further more, Dell did not honor service contracts, rebates, and warranties.
Dell lost the lawsuit last year, in 2008. The company was found guilty of all the accusations and has to pay over $4 million. It is time to pay, Dell! If you are wondering where the money will go, don’t worry; all of them will be used to compensate users that suffered from the company’s bad practices. Although this is a large sum, Dell is also required to change its financing, advertising, and sales practices.
From now on, customers will be informed whether the warranty service contract supports in-home service. Dell will also have to give a percentage for how many people can receive a promotional financing rate advertised by the company. Everyone hopes that this lawsuit will make Dell’s practices more customer-focused and more transparent.