On May 27, 2008, New York State Supreme Court Justice Joseph C. Teresi ruled that Dell Electronics engaged in fraud, false advertising, and deceptive business practices pertaining to customer guarantees.
The decision is a victory for New York Attorney General Andrew Cuomo, who brought the case against Dell in 2007, charging that the company failed to live up to its responsibilities to its customers.
Dell has said the company disagrees with the ruling and feels that it was based on the complaints of only a small number of customers, and is not indicative of its over-all practices. Dell will, likely, appeal the ruling.
The court's 26-page opinion specifically addresses Dell's promise of interest-free and no-payment purchase agreements, its rebate payment practices, and its on-site tech service, which Dell apparently failed to adequately provide.
New York District Attorney Cuomo stated, “We have won an important victory that will force Dell to live up to its responsibilities," continuing that, “For too long at Dell the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all."
Apparently, Dell's failure to meet its promises to customers was wide-spread, not unique.
Further proceedings pend as to penalties for Dell's deceptive practices, and various other aspects of the ruling are yet to be settled [more soon].
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