Australia’s Federal Court has ruled that Dell Technologies Inc’s local unit, Dell Australia, must pay a hefty penalty of AUD 10 million (USD 6.46 million) for deceptive marketing practices related to add-on computer monitors.
The court’s decision comes after a lawsuit brought forward by the Australian Competition and Consumer Commission (ACCC), which accused Dell Australia of misleading representations on its website regarding discounts for these monitors.
The Federal Court’s verdict, delivered in June, found Dell Australia guilty of deliberately providing false information to customers about prices and discounts associated with add-on monitors featured on its website. The court deemed the company’s actions as a serious breach of consumer law and a deceptive practice that warranted substantial penalties.
Liza Carver, the commissioner of the ACCC, emphasised the broader implications of the ruling: “This outcome sends a strong message to businesses that making false representations about prices or inflating discounts is a serious breach of consumer law and will attract substantial penalties.”
The deceptive practices spanned from August 2019 to 16 December 2021, during which Dell Australia reportedly sold over 5,300 add-on monitors with exaggerated discounts.
(Inputs from Reuters)