New York State Finds Dell Guilty of Fraud

rated by 0 users
This post has 14 Replies | 4 Followers

Top 10 Contributor
Posts 26,187
Points 1,186,095
Joined: Sep 2007
ForumsAdministrator
News Posted: Tue, May 27 2008 9:31 PM

The New York State Supreme Court issued a ruling today against Dell and Dell Financial Services (DFS), finding the company guilty of "fraud, false advertising, deceptive business practices, and abusive debt collection practices." The ruling is the end result of a lawsuit filed by New York State Attorney General, Andrew M Cuomo, in May 2007. After the ruling, Cuomo issued a statement saying that Dell and DFS essentially used "a bait and switch that left thousands of people paying for essentially no service at all." He also said: 

"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."



The specific practices that Dell was found guilty of are:

  • Charging customers 20 percent interest on what was advertised to be no-interest financing.
  • Billing customers for canceled orders and returned products, and then harassing the customers with "illegal billing and collection activity."
  • Failing to provide in-warranty service in a timely manner.
  • Failing to fulfill promised rebates.
The New York State Supreme Court has yet to rule on how much Dell must give back to its customers and now much Dell must pay New York State. After today's ruling, Dell issued a statement in response: "We don't agree with this decision and will be defending our position vigorously." Also in the statement, Dell speculated that the amounts it would ultimately owe would be small as only a "relatively small number of customers" were impacted by these practices.

This is not the first time the Empire State has tangled with online retailers. New York State's "Amazon Tax" was just signed into law by New York Governor David Paterson a few weeks ago. The law, which goes into effect June 1, requires that Amazon collect sales tax on all purchases made by customers who reside in the New York State. The state's argument is essentially that since some of Amazon's affiliates are based in New York, all purchases on Amazon are subject to New York State sales tax. Amazon is not sitting idling by and letting this happen without a fight, however; Amazon has sued New York State, arguing that the new law is unconstitutional.

New York's lawyers are definitely staying busy these days. New York state makes a powerful statement when it successfully goes after predatory business practices of the likes of Dell--looking out for the best interest of the consumer. The Amazon Tax, on the hand, is New York State looking out for the best interests of New York State. 



  • | Post Points: 65
Top 75 Contributor
Posts 1,370
Points 20,925
Joined: Feb 2005
Location: new york city
ice_73 replied on Tue, May 27 2008 10:07 PM

 hmm, my friend had a bad experience with dell for inwarranty repair and stuff but that was a few years back.... how recent are these alligations?

  • | Post Points: 5
Top 75 Contributor
Posts 1,677
Points 24,005
Joined: Aug 2002
Location: Pittsburgh, Pennsylvania

Didn't Dell win some kind of worst customer "award" or something?  I'm not surprised to see this at all. 

Hello

  • | Post Points: 5
Top 150 Contributor
Posts 636
Points 9,140
Joined: May 2008
Location: Worcester, MA
SqUiD267 replied on Wed, May 28 2008 4:50 AM
I wouldn't be surprised if they did. My dad's dell laptop had a simple problem and they couldn't figure it out and asked him to reintall windows. I fixed in seconds, w/o reinstalling windows.

AMD Athlon X2 5000+ (Thanks to HH)

DFI Lanparty DK 790 FX

EVGA 8800 GT 512 mb

2 GB of G.Skill RAM

  • | Post Points: 20
Top 50 Contributor
Posts 2,872
Points 64,370
Joined: Feb 2004
Location: United States, Georgia
Moderator

The problem that they have is they go by the books too much. When my wife and I first started dating I had to go thru their customer service for a new PSU. The guy kept telling me to take stuff out and plug it back in and see if it would come on. I knew it was the PSU but I still had to sit on the phone with him for almost 2 hours. When the in-home tech guy came a few days later...he replaced the ram, graphics card, and the PSU. ????

Intel E6850 * Patriot 4GB DDR 2 800 * EVGA 8800 Ultra * EVGA 680i Mobo "It's my...err...human nature to always want more!"- Myself Gamer Tags: X-Box 360 - Linus84 | PS3- Linus84 | Wii- 013014813390

  • | Post Points: 5
Top 75 Contributor
Posts 1,370
Points 20,925
Joined: Feb 2005
Location: new york city
ice_73 replied on Wed, May 28 2008 11:40 AM
i wouldnt mind having other stuff replaced. the hassle of getting anything replaced is the problem, but thats not only for dell. every company has that.

  • | Post Points: 20
Top 50 Contributor
Posts 2,171
Points 32,040
Joined: Aug 2004
Location: Dublin, Ireland
Dev replied on Wed, May 28 2008 12:35 PM

I think everybody has had their problems with Dell. Finally their deserved bad reputation is catching up with them.

Dev

  • | Post Points: 20
Top 75 Contributor
Posts 1,370
Points 20,925
Joined: Feb 2005
Location: new york city
ice_73 replied on Wed, May 28 2008 12:46 PM

Dev:

I think everybody has had their problems with Dell. Finally their deserved bad reputation is catching up with them.

Dev



correct me if im wrong but doesnt the xps line of dell products have their own support line?

  • | Post Points: 20
Top 50 Contributor
Posts 2,171
Points 32,040
Joined: Aug 2004
Location: Dublin, Ireland
Dev replied on Wed, May 28 2008 5:29 PM

 It does have a seperate tech support. In any event XPS line is ending it won't be around for too long.

Dev

  • | Post Points: 20
Top 75 Contributor
Posts 1,370
Points 20,925
Joined: Feb 2005
Location: new york city
ice_73 replied on Wed, May 28 2008 6:24 PM

Dev:

 It does have a seperate tech support. In any event XPS line is ending it won't be around for too long.

Dev



i hope it will. xps > alienware.

alienware = overpriced junk.

  • | Post Points: 20
Top 50 Contributor
Posts 2,872
Points 64,370
Joined: Feb 2004
Location: United States, Georgia
Moderator

alienware = cool ass case design! : )  

Intel E6850 * Patriot 4GB DDR 2 800 * EVGA 8800 Ultra * EVGA 680i Mobo "It's my...err...human nature to always want more!"- Myself Gamer Tags: X-Box 360 - Linus84 | PS3- Linus84 | Wii- 013014813390

  • | Post Points: 20
Top 75 Contributor
Posts 1,370
Points 20,925
Joined: Feb 2005
Location: new york city
ice_73 replied on Wed, May 28 2008 8:39 PM

 alot of people disagree

  • | Post Points: 20
Top 25 Contributor
Posts 3,476
Points 47,080
Joined: Nov 2005
Location: Metropolis
ForumsAdministrator
Moderator
But not me! Dell bought Alienware for a reason, and now they are dropping their XPS line for a reason. Care to guess why?

 SPAM-posters beware! ®

  • | Post Points: 20
Top 75 Contributor
Posts 1,792
Points 28,435
Joined: Feb 2008
Location: South Carolina

Super Dave:
But not me! Dell bought Alienware for a reason, and now they are dropping their XPS line for a reason. Care to guess why?

 

See YOU LEARN SOMETHONG EVERYDAY! I did not know that about Alienware!

 

 

 

 

  • | Post Points: 20
Top 50 Contributor
Posts 2,872
Points 64,370
Joined: Feb 2004
Location: United States, Georgia
Moderator

yeah, they bought Alienware and then HP countered by buying VooDoo PC.

Intel E6850 * Patriot 4GB DDR 2 800 * EVGA 8800 Ultra * EVGA 680i Mobo "It's my...err...human nature to always want more!"- Myself Gamer Tags: X-Box 360 - Linus84 | PS3- Linus84 | Wii- 013014813390

  • | Post Points: 5
Page 1 of 1 (15 items) | RSS