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By John G. Spooner, News.com
Posted on ZDNet News: Feb 23, 2005 7:33:00 PM

A California law firm has slapped Dell with a class action lawsuit charging the computer giant with "systematically deceiving" its customers.

The suit, filed in San Francisco County Superior Court on Feb. 14, seeks class action status in California and accuses Dell of "bait and switch" practices, false advertising, fraud and deceit in sales and advertising, and breach of contract. The law firm behind the suit, Lerach Coughlin Stoia Geller Rudman & Robbins, publicized it on Wednesday.

The case centers on the allegation that Dell advertises low prices for its computers, but people who try to purchase a machine at the advertised price find it's no longer available for that price. Often those customers wind up with another computer, the suit said.

One plaintiff is a San Francisco nurse who said she bought a Dell notebook computer listed at $599 along with an $89 printer, but was billed $1,352 for her order. Another plaintiff said Dell shipped him products of lower quality than the ones he had ordered from the company's Web site. The Round Rock, Texas-based PC maker then resisted his efforts to resolve the problem, he said.

The suit also said that Dell and its lending partner CIT Bank change without notice financing packages promoted as "easy" and "preferred," to include much higher interest rates and hidden charges.

Lerach Coughlin Stoia said Wednesday that it has reviewed hundreds of complaints.

"We got quite a few complaints. We also saw quite a few complaints online," said Reed Kathrein, an attorney at the law firm. "The theme appears to be a bait and switch, where what Dell does is attracts you with one ad and then substitutes."

A Dell representative declined to comment, saying the PC company does not publicly discuss pending litigation.

Dell sells more personal computers than any other provider on the globe, and it's on a growth spurt. The company, which increased shipments by close to 20 percent in its most recent fiscal quarter, expects to rake in nearly $60 billion in revenue this year.

The suit alleges that Dell has violated numerous California laws and codes of conduct, including the California Consumer Legal Remedies Act, the California Business and Professions Code and the Unruh Act.

A California law firm has slapped Dell with a class action lawsuit charging the computer giant with "systematically deceiving" its customers.

The suit, filed in San Francisco County Superior Court on Feb. 14, seeks class action status in California and accuses Dell of "bait and switch" practices, false advertising, fraud and deceit in sales and advertising, and breach of contract. The law firm behind the suit, Lerach Coughlin Stoia Geller Rudman & Robbins, publicized it on Wednesday.

The case centers on the allegation that Dell advertises low prices for its computers, but people who try to purchase a machine at the advertised price find it's no longer available for that price. Often those customers wind up with another computer, the suit said.

One plaintiff is a San Francisco nurse who said she bought a Dell notebook computer listed at $599 along with an $89 printer, but was billed $1,352 for her order. Another plaintiff said Dell shipped him products of lower quality than the ones he had ordered from the company's Web site. The Round Rock, Texas-based PC maker then resisted his efforts to resolve the problem, he said.

The suit also said that Dell and its lending partner CIT Bank change without notice financing packages promoted as "easy" and "preferred," to include much higher interest rates and hidden charges.

Lerach Coughlin Stoia said Wednesday that it has reviewed hundreds of complaints.

"We got quite a few complaints. We also saw quite a few complaints online," said Reed Kathrein, an attorney at the law firm. "The theme appears to be a bait and switch, where what Dell does is attracts you with one ad and then substitutes."

A Dell representative declined to comment, saying the PC company does not publicly discuss pending litigation.

Dell sells more personal computers than any other provider on the globe, and it's on a growth spurt. The company, which increased shipments by close to 20 percent in its most recent fiscal quarter, expects to rake in nearly $60 billion in revenue this year.

The suit alleges that Dell has violated numerous California laws and codes of conduct, including the California Consumer Legal Remedies Act, the California Business and Professions Code and the Unruh Act.

  • Talkback
  • Most Recent of 67 Talkback(s)
The also use USED parts in NEW computers
If you look at your "terms and conditions" it says,"WE USE LIKE NEW PARTS IN ALL OUR COMPUTER'S!!!!!
GARBAGE!!!... (Read the rest)
Posted by: Lrapsey Posted on: 05/16/07 You are currently: Logged In | Log out
This is why I... MepisLINUXuser   | 02/23/05
Bout time Lord-dogbert_z   | 02/23/05
I hope DragonBRockin   | 02/23/05
I hope.... ibabadur1   | 02/24/05
If I sold hundred dollar bills for 50 cents... No_Ax_to_Grind   | 02/24/05
You are charging too much! Spoon Jabber   | 02/24/05
For every 1 complaint voska   | 02/24/05
Failure to sell AS ADVERTISED is fraud. Update victim   | 02/24/05
I don't believe that has happened here Spoon Jabber   | 02/24/05
It's called bait and switch rhavyn   | 02/24/05
I don't think so, rhavyn. Judas I.   | 02/24/05
LOL, I was just reviewing my post after I had put it up, ... Judas I.   | 02/24/05
About time!!!!! Dell = Bait & Switch ITGuy04   | 02/23/05
Dell Bait and switch comconk@...   | 02/24/05
My condolences to your customers.... ITGuy04   | 02/24/05
Message has been deleted. Jeff Spicoli   | 02/23/05
Re: Michael Dull is going to Guantanamo baby! ReFoRMaT   | 02/24/05
Does this mean... alterego_z   | 02/23/05
Me too My Dell horror story Don't try their 1-800 # to compalin Squawkbox   | 02/23/05
Hmm.. d_jedi   | 02/23/05
A question for the group ... worknman   | 02/23/05
Reputable vendor SC-man   | 02/23/05
I agree with SC-man, and I would add ... Judas I.   | 02/23/05
Face to face Spoon Jabber   | 02/24/05
Yup, I think so, Spooner Judas I.   | 02/24/05
Inconsistant moderation! Spoon Jabber   | 02/24/05
I think, SELECTIVE moderation, ... Judas I.   | 02/24/05
But ya still gotta be careful.. Wolfie2K3   | 02/24/05
The real message there... OldeTimeGeek   | 02/24/05
Common language Spoon Jabber   | 02/24/05
monarchcomputer.com rhavyn   | 02/23/05
You could also Linux User 147560   | 02/23/05
What's with Win XP home? voska   | 02/24/05
Dunno Linux User 147560   | 02/24/05
Yes there is... Dell. No_Ax_to_Grind   | 02/24/05
LOL, and Dell's being sued for what again? (NT) voska   | 02/24/05
Because some people can't think for themselves (NT) Spoon Jabber   | 02/24/05
Sure they can voska   | 02/24/05
NOT illegal Spoon Jabber   | 02/24/05
A result of red hot competition ... George Mitchell   | 02/23/05
Your shark analogy is SO apt, George. Judas I.   | 02/23/05
Thats just good business by BOTH of you. Dave F_z   | 02/23/05
Iv'e done some learning on the consumer side myself ... George Mitchell   | 02/24/05
As they say, you get what you pay for... No_Ax_to_Grind   | 02/24/05
True, but what if that's what they want? voska   | 02/24/05
Mass ADD ibabadur1   | 02/23/05
I think what you are trying to say Linux User 147560   | 02/23/05
Are you surprised? Spoon Jabber   | 02/24/05
So, . . .will Florida be next . . . FilledOut   | 02/24/05
No, they're still dazed and confused (NT) Spoon Jabber   | 02/24/05
issues with Dell and Dell Financial Services artofo   | 02/24/05
Dell Raised price of Xtreme edition CPU & 1GB RAMSticks while I was shoppin GreatInca   | 02/24/05
Dell also has other bad habits... TCP?IP'ed   | 02/24/05
what do you expect? doh123   | 02/24/05
If it's under warranty voska   | 02/24/05
then your crazy doh123   | 02/24/05
Same deal no matter who you use John Zern   | 07/25/05
We actually switched to Dell from Compaq John Zern   | 07/25/05
Dell gosound@...   | 02/26/05
How to Join asugarner   | 02/26/05
How to join 2? jpages   | 04/06/05
Message has been deleted. Emerald308   | 05/16/05
Never had that problem in Business Account John Zern   | 07/25/05
NOT "Bait and Switch", otherwise every company can be sued John Zern   | 07/25/05
Dell - just crossed the "Bait and Switch" line dnick29   | 10/22/05
After doing some searching dnick29   | 10/22/05
The also use USED parts in NEW computers Lrapsey   | 05/16/07

What do you think?

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