Dell agrees to pay $4 million for deceptive ads

State Attorney General Andrew M. Cuomo announced today that Dell and its subsidiary, Dell Financial Services, have agreed to pay $4 million in restitution, penalties and costs to resolve alleged fraudulent and deceptive business practices.

Dell will also be required to make changes in its advertising, sales and financing practices, Cuomo said during a press conference in Buffalo.

"We spent two years fighting Dell in court," Cuomo said. "We won. Now let's get the money back to the people."

Cuomo said the settlement followed a decision last year by the state Supreme Court in Albany County, which sustained the Attorney General's claims about Dell's practices.

Cuomo said his office acted on widespread consumer complaints about misleading advertising related to Dell's "no interest" financing promotions, "next day" service contracts, as well as alleged failures to provide consumers with warranty service and promised rebates.

Consumers affected by Dell's practices can file a claim for restitution by using special forms on the Attorney General's Web site, www.nyagdell.com, or by calling 1-800-771-7755.

(Published by The Buffalo News - September 16, 2009)