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:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Publicis Launches New Digital Agency

Publicis Launches New Digital Agency

Roar, an amalgam of top digital talent from across Publicis Groupe, will be led by Zenith OptiMedia veteran Sean Reardon.

RAPP Names Orlov CEO

RAPP Names Orlov CEO

The Volkswagen marketing executive is a veteran of Wunderman and WPP.

Hawthorne Opens Mobile Unit, Names Digital Director

Hawthorne Opens Mobile Unit, Names Digital Director

Jared Lake moves over from M&C Saatchi Mobile to head the new unit.