Dell Agrees to Pay Penalty

Share this article:
On the same day that it agreed to pay the largest ever civil penalty ever for a single defendant for violating the Federal Trade Commission's Mail Order Rule, Dell Computer Corp. announced price cuts April 2 on server and commercial desktop systems.


Dell, Round Rock, TX, the nation's leading direct seller of PCs, will pay $800,000 to settle a complaint that in 1995, it falsely advertised a Dell Dimension computer system bundled with a package of third-party software that was not ready to be shipped. In instances where the software arrived well after the computer, Dell violated the rule by not offering consumers the option of consenting to the delay or canceling their orders.


Dell's built-customer-order structure has enabled the company to reduce inventory to seven days' worth of computer in the most recent quarter, prompting price cuts of 15.4 percent on its PowerEdge servers and as much as 12 percent on its OptiPlex desktop computers. Last week, the company announced it was reducing prices of its personal workstations by as much as 11.7 percent.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Publicis Constructs Pan-Agency Marketing Platform With Adobe

Publicis Constructs Pan-Agency Marketing Platform With Adobe

Riding on the Adobe Marketing Cloud, the Always-On Platform aims to unite all Publicis Agencies around delivering cross-channel efficiencies to clients.

Mohegan Sun Bets on an Integrated Customer Experience

Mohegan Sun Bets on an Integrated Customer Experience

Casino and entertainment destination Mohegan Sun went all-in and overhauled its website to improve its guest experience online and on-site. The casino's payoff was big.

Former Lenovo Executive to Head Digital Marketing at Interakt

Former Lenovo Executive to Head Digital Marketing at ...

Elijah Degen brings 15 years of experience to his new role at the digital agency.