A New York judge concluded Tuesday that Dell Inc. engaged in repeated false and deceptive advertising of its promotional credit financing and warranties.
State Supreme Court Justice Joseph Teresi ordered the computer retailer to more clearly disclose that most customers don’t qualify for free financing or get “next day” repair service.
“It appears likely that there are many more New York consumers who are entitled to restitution who are not included in the complaints,” Teresi wrote.
New York Attorney General Andrew Cuomo sued Dell last year. Teresi gave him until Dec. 1 to identify all consumer claims for third-party repairs, new computers or higher-interest payments than they would have paid otherwise.
“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,” Cuomo said. “This decision sends an important message that all corporations will be held accountable for the promises they make to consumers.”
The attorney general’s office had 700 complaints against Dell when the lawsuit was filed in May 2007 and has received more than 1,000 since, spokesman John Milgrim said.
Dell spokesman Jess Blackburn said the company, based in Round Rock, Texas, disagreed with the judge’s decision and would be putting up a vigorous defense of its position, although it had not decided yet whether it would appeal.
“We are confident that when the proceedings are finally completed the court will determine that only a relatively small number of customers have been affected,” Blackburn said.
The company noted earlier that it had 6 million transactions in New York between 2003 and 2006, with alleged complaints representing only a tiny fraction. Dell also told the court that it has started selective recording and auditing of sales representatives to avoid misrepresentations and has invested millions of dollars in customer service and…