US: Judge Finds Dell Engaged In Deceptive Practices

Publisher Name: 
The Wall Street Journal

NEW YORK -- A state judge in Albany has found that Dell
Inc. and its financing unit engaged in deceptive business practices
related to financing promotions for its computers and technical
support, New York Attorney General Andrew Cuomo said Tuesday.

In a decision dated Friday and released Monday, New
York State Supreme Court Justice Joseph C. Teresi in Albany ruled that
Dell engaged in deceptive practices regarding its advertisement of
attractive financing terms to purchase computers, advertisement of
technical support computer purchasers were entitled to under their
warranties and administration of its rebate program.

"Dell has engaged in repeated misleading, deceptive
and unlawful business conduct, including false and deceptive
advertising of financing promotions and the terms of warranties,
fraudulent, misleading and deceptive practices in credit financing and
failure to provide warranty service and rebates," the judge wrote.

Mr. Cuomo sued Dell
and its Dell Financial Services unit last year, alleging the computer
maker deceived customers in order to increase its computer sales.

The judge will hold further proceedings to determine what restitution New York consumers might be entitled to.

A Dell spokeswoman didn't immediately have a comment Tuesday.

Write to Chad Bray at chad.bray@dowjones.com

AMP Section Name:Technology & Telecommunications
  • 185 Corruption
  • 189 Retail & Mega-Stores