DELL ….GUILTY OF FRAUDULENT ADVERTISING !

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DELL ….GUILTY OF FRAUDULENT ADVERTISING !

 user 2008-05-28 at 3:46:27 pm Views: 49
  • #20193
    http://www.bloggingstocks.com/2008/05/28/dell-found-guilty-of-fraudulent-advertising/
    Dell found guilty of fraudulent advertising
    Filed under: Law, Dell , Marketing and advertising, Scandals
    Dell 
    is known for its terrific customer service and catchy ads but the New
    York State Supreme Court has found that some of those ads were
    fraudulent and misleading.Judge Joseph Teresi wrote that the company
    “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.”

    Dell will be prohibited from engaging in
    such conduct in the future and may also have to pay an as yet
    undetermined amount of restitution to consumers.A lawsuit filed by New
    York Attorney General Andrew Cuomo alleged that the company’s ads
    falsely led consumers to believe that they qualified for low- or
    no-interest financing when, in reality, many consumers didn’t.
    Following the ruling, Cuomo said that, “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. 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. This decision sends an important message
    that all corporations will be held accountable for the promises they
    make to consumers.”Dell says it’s confident that only a small number of
    customers were effected — the company’s latest 10-K does not
    specifically refer to this risk factor, which indicates that the
    company does not believe the damages could be material. The market
    seems to agree, with shares of Dell flat on the news.