Dell Inc. deceived customers in a massive "bait
and switch" scheme to increase sales of its computer and electronic
products, a
State Attorney General Andrew Cuomo sued Dell in 2007
on behalf of hundreds of customers who claimed that the electronics company
lured them into buying products with promises of attractive deals and
promotions.
In reality, the lawsuit alleged, most customers were
denied or misled into believing that they had been approved for low interest or
financing rates.
The lawsuit also accused Dell of depriving customers
of technical support that they were entitled to, in some instances, by
pressuring them into performing repairs on their own or subjecting them to long
wait times on the phone.
In a 26-page decision, Supreme Court Justice Joseph C.
Teresi found in favor of the consumers.
"Dell has engaged in repeated misleading,
deceptive and unlawful business conduct, including false and deceptive
advertising of financing promotions and the terms of warranties, fraudulent,
misleading and deceptive practices in credit financing and failure to provide
warranty service and rebates," Teresi said in his decision.
The court will hold further proceedings to determine
how much restitution Dell will have to pay its customers.
Dell said it disagreed with Teresi's decision.
"Our goal has been, and continues to be, to
provide the best customer experience possible," spokesman Jess
"We are confident that when the proceedings are
finally completed, the court will determine that only a relatively small number
of customers have been affected,"
Cuomo hailed the decision in a statement Tuesday.
"For too long at Dell, the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all," Cuomo said. "We have won an important victory that will force Dell to live up to its responsibilities and pay back its customers for profits that were pocketed but not deserved."
source: newyork.com
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