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$4 million fine stems from a 2008 verdict that Dell used questionable business practices

Dell is one of the largest computer manufacturers in the world and considering the size of the company, it will come as no surprise to many that the computer maker at times uses business practices that are questionable at best. Dell has finally had to pay up on a suit it lost in 2008 over deceptive business practices.

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 practices.

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. Cuomo issued 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 compensated."

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By amanojaku on 9/16/2009 11:24:11 AM , Rating: 3
"Today's announcement is the final step in ensuring New Yorkers harmed by Dell's deceptive and illegal business practices are fully compensated."
I have yet to see my taxes decrease, be refunded, or be used wisely. This money is just lining some politicians' pockets, as usual.

By nafhan on 9/16/2009 11:37:31 AM , Rating: 3
I'm betting on lawyers getting the bulk of it. The state/politicians probably won't get anything, and the poor maligned consumers will probably get very little.

By Spivonious on 9/16/2009 11:50:07 AM , Rating: 4
They'll probably get a coupon for $50 off a new Dell.

By bhieb on 9/16/2009 11:55:27 AM , Rating: 2
You mean a coupon for 0% financing and next day on site warranty FREE!!!

The coupon now comes attached to a 200 page disclaimer.

By AstroGuardian on 9/17/2009 2:55:20 AM , Rating: 1
Hahaha, ain't it a bitch!

By Brainonska511 on 9/16/2009 12:58:50 PM , Rating: 2
You must have missed the part of the article where it said the NYS Attorney's office brought the lawsuit. The lawyers are not going to be walking away with 40% of the reward.

Plus, it was a fine, meaning proceeds will go to NYS, not necessarily the people who were harmed, as a class-action lawsuit would do.

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