In May of 2008, Dell was hit with a fine
of $4 million after it was found to have fraudulently advertised
financing rates and used deceptive business practices. The suit was
filed by the New York Attorney General's office in 2007. The
allegations at the time that the suit was filed included that the
company misled customers on the financing rates they were promised by
telling the customers they would get a low finance rate, and then
hitting them with a higher rate.
Dell also failed to disclose
all of the terms of its warranty service with respect to next day
service. The $4 million award was granted against Dell in May of 2008
by the New York Supreme court. Along with the $4 million fine, the
computer maker agreed to change its advertising, sales and finance
Dell now has to disclose detailed information to
customers about the level of service they will receive with
warranties and service plans and the percentage of people who will
actually qualify for the low interest rates advertised. CNET News
reports that the $4 million will be used
to compensate Dell customers in New York who were affected by
Dell's business practices.
New York Attorney General Andrew M.
a statement, reports PC World, that read, "Today's
announcement is the final step in ensuring New Yorkers harmed by
Dell's deceptive and illegal business practices are fully
quote: "Today's announcement is the final step in ensuring New Yorkers harmed by Dell's deceptive and illegal business practices are fully compensated."