Dell, one of the world’s largest computer manufacturers, has been ordered to pay $65 million in penalties for misleading customers about their consumer rights in Australia. The Federal Court of Australia found that Dell breached the Australian Consumer Law by making false or misleading representations to its customers between 2016 and 2023.
According to the court, Dell misled customers about their rights to refunds, repairs, or replacements for faulty products. Dell also misled customers about the terms and conditions of its warranties and service contracts. Dell’s conduct affected thousands of customers who bought laptops, desktops, monitors, and other products from its website or over the phone.
The court imposed a penalty of $50 million for Dell’s false or misleading representations, and another $15 million for its failure to comply with an earlier court order in 2018 that required Dell to stop making such representations. The court also ordered Dell to publish corrective notices on its website and in newspapers, and to establish a consumer redress scheme to compensate affected customers.
The Australian Competition and Consumer Commission (ACCC), which initiated the legal action against Dell, welcomed the court’s decision. The ACCC’s chair, Rod Sims, said that Dell’s conduct was “unacceptable” and “undermined consumer confidence”. He also said that the penalty was one of the highest ever imposed under the Australian Consumer Law.
“This penalty sends a clear message to businesses that they must not mislead consumers about their rights under the Australian Consumer Law,” Sims said. “Consumers have a right to expect that the products they buy are of acceptable quality and that they can obtain remedies from the seller if they are not.”
Dell issued a statement saying that it accepted the court’s decision and that it had taken steps to improve its compliance with the Australian Consumer Law. Dell also said that it was committed to providing high-quality products and services to its customers.
“We apologise to our customers for any inconvenience caused by our actions,” Dell said. “We have cooperated fully with the ACCC throughout this process and we have made significant investments in our systems, training, and processes to ensure we meet our obligations under the Australian Consumer Law.”