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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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Nice Fine
By Microemission on 9/16/2009 12:24:24 PM , Rating: -1
Yo Dell throwing money at the air, imma happy for you to pay a fine in NY cause fraud, but Microsoft had the to pay the biggest fine OF ALL TIMES!




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