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Dell settles lawsuit with N.C., other states

Monday, January 12, 2009
(Updated Tuesday, January 13 - 6:37 am)

Dell Inc. said Monday it has agreed to a legal settlement with states that claimed the computer company made misleading financing and service offers to PC buyers.

Dell said in a statement it will pay $3.85 million to North Carolina and at least 44 other states participating in the settlement. A portion of the money will be used to reimburse states for legal costs, including $75,000 for North Carolina.

"Buying a computer shouldn't be tricky," Cooper stated in a news release. "Consumers deserve straight information they're making a purchase, and good customer service when they need it repaired."

Under the terms of the settlement, Dell agreed to give customers more information up front about what kind of financing they qualify for and allow them to cancel orders once they review final credit terms.

Dell also agreed to mail rebate payments and fulfill warranty obligations within a reasonable amount of time.

The settlement requires Dell to tell customers whether they must troubleshoot problems by phone before qualifying for in-person technical support at home. Dell must also justify claims about its customer service. For example, if it wants to use the term "award-winning," it must have won a customer service award in the past 18 months.

In its statement, Dell said the states' issues "represented only a very small percentage of the tens of millions of Dell consumer transactions in the states."

Round Rock, Texas-based Dell also said it had addressed these problems with many customers directly.

Consumers may be eligible for a refund under the agreement if they purchased a Dell product between April 1, 2005, and April 13, 2009. The amount of money individual consumers get will depend on the number of eligible recipients and the total amount claimed.

North Carolina residents who believe they are eligible for refunds can download a claim form at www.ncdoj.gov or call Cooper's Consumer Protection Division toll-free within the state at (877) 566-7226.

Accompanying Photos

File photo (News & Record)

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