DELL …………GUILTY OF FRAUDULENT ADVERTISING !

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DELL …………GUILTY OF FRAUDULENT ADVERTISING !

 user 2008-05-28 at 3:45:48 pm Views: 60
  • #20177

    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.