14 DAY TRIAL // Round Rock, Texas-based Dell is expected to pay a total of US$3.85 million to 46 U.S. States, as part of a settlement agreement according to which the PC vendor was responsible for deceptive practices when trying to sell its products. The company was under investigation after an array of issues were reported in the 46 states, regarding its product selling practices.
According to the state attorneys general, Dell is expected to provide a total of US$1.5 million, as restitution to customers who have been faced with problems regarding the company's financing promotions, rebate offers, technical support and repair policies. Despite not admitting to the allegations, Dell said that it would have to provide the rest of the US$3.85 million to the states, as legal costs and other expenses.
“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.
According to the allegations formed against the PC vendor, consumers who were initially offered zero-percent financing were later faced with having to pay higher interest rates and fees. Connecticut Attorney General Richard Blumenthal said that some people were faced with “unacceptable obstacles obtaining warranty service on their Dell computers and others said they never received promised rebates.”
Dell customers who have purchased one of the company's products on or after April 1, 2005 or had a problem with the financing offer, rebate or service can now file a claim within 90 days with their state attorney general, provided that they are part of the states covered by the settlement.
The states that will be able to take advantage of the settlement agreement are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, 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.
Dell said that it had already addressed these problems with many customers directly and that the reported issues “represented only a very small percentage of the tens of millions of Dell consumer transactions in the states.”