Dell to pay $3.85 million in settlement with US states

Dell will pay US$3.85 million in a settlement with 46 US states, which investigated the company for deceptive practices to sell products.

Dell will pay US$3.85 million to 46 US states under a settlement agreement involving allegations that the company used deceptive practices to sell its products.

As part of the settlement, Dell will provide restitution to customers who experienced problems with the company's financing promotions, rebate offers, technical support and repair policies, according to state attorneys general. The company will pay US$1.5 million to a restitution account and the rest to the states to reimburse legal costs and other expenses, said Dell, which did not admit to wrongdoing.

States started investigating Dell's sales practices after receiving complaints on an array of issues. Some customers never received rebates they were promised, while those who applied for zero-percent financing were charged higher interest rates. Some consumers also had trouble obtaining warranty service on their Dell PCs, according to the Washington State Attorney General's Office.

"The deals Dell made and the terms computer buyers thought they agreed to didn't always compute," said Washington Assistant Attorney General Katherine Tassi in a written statement.

Customers are eligible for restitution if they purchased a Dell product between April 1, 2005, and April 13, 2009, and have a complaint addressed by the agreement. Consumers must file their claims by April 13.

The issues represented only a small percentage of the tens of millions of Dell consumer transactions in the states during the four-year period, Dell said in a statement. "Dell had previously addressed the issues directly with many of the customers involved and many were satisfactorily resolved prior to the states' involvement," the company said.

Dell has also agreed to provide further disclosures to make sure that customers are fully informed about its financing and service offers.

"This settlement ensures that Dell consumers will receive full disclosure concerning Dell's promotional offers and provides for changes in Dell's business practices that will aid consumers in making informed choices about purchasing Dell products and services," Massachusetts Attorney General Martha Coakley said in a statement.

The states involved in the settlement are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oregon, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Vermont, Virginia and Wisconsin.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Dell

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?