http://www.internetnews.com/bus-news/article.php/3678091
May 16, 2007
NY Sues Dell, Charges Bait And Switch
By Roy Mark
New York Attorney General Andrew Cuomo accused Dell today of
engaging in "bait and switch" financing tactics and ignoring
service and warranty contracts. In a lawsuit filed in
Albany, N.Y., Cuomo also charged the Texas computer maker
with deceptive business practices involving rebates, billing
and collection.
Dell denied the accusations.
Cuomo is seeking restitution to consumers, civil penalties
and guarantees from Dell that it will not engage in any
further "deceptive, illegal, and fraudulent practices." The
state did not release details on financial damages it might
seek.
"At Dell, customer service means no service at all. Dell's
consumers were intentionally misled, and they had to pay for
that privilege," Cuomo said in a statement. "I hope this
lawsuit sends a message to companies large and small that
delivering a product is simply not enough -- the promises
they make must be delivered as well."
The lawsuit accuses Dell of attracting customers with
advertising touting no interest or no early payment
financing promotions. According to Cuomo, the "vast
majority" of customers were denied the deals. Instead, Dell
and DFS offered customers financing deals that often
exceeded 20 percent.
The lawsuit also claims DFS incorrectly billed consumers on
canceled orders, returned merchandise or accounts they did
not authorize Dell to open. Cuomo said those same customers
were then harassed with illegal billing and collection
calls.
In addition, Cuomo alleges Dell repeatedly failed to provide
timely on-site repair as promised in service contracts and
discouraged customers from seeking technical support. The
lawsuit claims Dell's New York customers calling the
company's toll free support number were subjected to long
wait times, frequent transfers and disconnections.
In cases where on site service was provided, the lawsuit
claims, Dell used defective "refurbished" parts or computers
to repair or replace consumers' equipment.
Dell (Quote)quickly responded with a statement denying the
accusations.
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