Dell, the second biggest PC maker has been dragged to court by New York Attorney General Andrew Cuomo, accusing it of making false promises to customers to increase sales.
The lawsuit filed in Albany County Supreme Court accuses Dell and Dell Financial Services LP of fraud, false advertising and deceptive business practices including offering misleading financing terms, rebates and other benefits but ultimately sticking them with high interest on lines of credit. It also claims Dell avoids giving customers rebates through various tactics and fails to honour warranties and service contracts by misleading customers and making it difficult for them to obtain technical support.
The suit seeks an injunction against Dell’s practices, and unspecified damages to affected customers.
Dell is strongly defending itself against the suit, computer giant asserts that customers are their top priority and dell will come out neat and clean.
Dell spokesman Bob Pearson said that the company will contest the suit.
We are confident that our practices will be found to be fair and appropriate. While even one dissatisfied customer is too many, the allegations in the AG’s filing are based upon a small fraction of Dell’s consumer transactions in New York. We are committed to providing a positive experience to all of our customers every day
In an unrelated probe, the Securities and Exchange Commission and Dell’s own audit committee have been investigating the company’s accounting practices.
In the concluding months of 2006, analyst firm Friedman Billings Ramsey raised their apprehension over Dell’s accountes for warranties, accusing company for using an wrong method for accounting for the money it takes in from warranty sales and the money it reserves to handle expected warranty claims.
Image: sfgate
Via: yahoo
