Dell Computer and Finance Service
Customers Sue Dell Computer and Finance Service for False Advertising, Bait-and-Switch Scheme
The world’s largest seller of personal computers is using high-tech advertising, bait-and-switch marketing and false claims of low-cost financing to lure and victimize California purchasers of Dell Computers and products, customers charge in a suit filed against the company and its financial partners.
Lerach Coughlin Stoia Geller Rudman & Robbins LLP filed a class action suit in Superior Court for San Francisco County Feb. 14, on behalf of two named Dell customers and others who are victims of the giant global company and its lending service.
Besides Dell Inc., the suit names Dell Financial Services L.P. (DFS) and CIT Bank. DFS is jointly owned by Dell Inc. and CIT Bank and is promoted by Dell to finance purchases of Dell products, often at high interest rates and with false claims, the suit alleges.
If you purchased a Dell Computer or other Dell products or services between Feb. 14, 2001 and today, or dealt with Dell Financial Services or CIT Bank for the purchase of Dell products or services, you may qualify to be part of this lawsuit. Contact Shana E. Scarlett at
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The lawsuit says that Dell Inc. controls all of its manufacturing, marketing, advertising and sales orders and that it deliberately advertises computers and other electronic products at attractive low prices and then systematically substitutes higher-priced products or lower quality equipment for those it advertised to customers, or increases the purchase price without notice to buyers, whom it admits often are unsophisticated. Dell also unilaterally cancels orders when it decides not to honor advertised deals.
Unlike most products, Dell equipment and services are sold exclusively by telephone and through Dell’s Internet Web site, and Dell customers view only pictures of the products prior to sale – never the product itself. In 2004 Dell spent $300 million advertising its products on TV, in newspapers and catalogues and on the Internet. That same year Dell shipped 5.4 million personal computers in the United States and generated $6 billion in revenue from U.S. consumers.
The complaint alleges that Dell preys on unsuspecting consumers with its financing practices, as well, promoting low rates and “easy” financing which, without notice to the customer, are changed to include much higher interest rates and hidden charges.
The suit charges Dell, DFS and CIT with violating California’s Consumer Legal Remedies Act (CLRA) by false advertising and bait-and-switch practices; fraud and deceit in its sales and advertising representations; breach of contract by unilaterally modifying terms and conditions of sales and financing; violating the California Business and Professions Code by knowingly distributing false and misleading information; violating the Unruh Act with unlawful retail installment contracts; engaging in deceptive practices in its financing programs; and entering into unlawful contracts and charging excessive finance charges.
Lerach Coughlin filed a complex case motion seeking to have the case assigned to the complex division of the state court. ■