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US: Judge Finds Dell Engaged
In Deceptive Practices


by CHAD BRAYThe Wall Street Journal
May 27th, 2008

NEW YORK -- A state judge in Albany has found that Dell Inc. and its financing unit engaged in deceptive business practices related to financing promotions for its computers and technical support, New York Attorney General Andrew Cuomo said Tuesday.

In a decision dated Friday and released Monday, New York State Supreme Court Justice Joseph C. Teresi in Albany ruled that Dell engaged in deceptive practices regarding its advertisement of attractive financing terms to purchase computers, advertisement of technical support computer purchasers were entitled to under their warranties and administration of its rebate program.

"Dell has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates," the judge wrote.

Mr. Cuomo sued Dell and its Dell Financial Services unit last year, alleging the computer maker deceived customers in order to increase its computer sales.

The judge will hold further proceedings to determine what restitution New York consumers might be entitled to.

A Dell spokeswoman didn't immediately have a comment Tuesday.

Write to Chad Bray at chad.bray@dowjones.com





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