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Dell Settles Deceptive Advertising Case in New York

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State Attorney General Andrew Cuomo

By Mark Scott

Buffalo, NY – State Attorney General Andrew Cuomo was in Buffalo Tuesday to announce a settlement with computer maker Dell and its financial services subsidiary in a case involving alleged deceptive advertising and business practices.

Cuomo says his office received complaints from consumers about misleading advertisements. He says some consumers paid for things they didn't get, including warranties that cost them an extra $99 to $250. Cuomo says Dell must clearly disclose that most customers don't qualify for free financing or "next day" repair service.

"Today's announcement is the final step in ensuring New Yorkers harmed by Dell's deceptive and illegal business practices are fully compensated," said Attorney General Cuomo.

Dell didn't admit to any wrongdoing in a settlement with the state announced Tuesday. But unnder the settlement, Dell will pay $4 million in restitution and penalties and has agreed to change its advertising practices.

A Dell spokesman says the company is glad to resolve the matter.