Australian unit of Dell Technologies Inc found guilty of misleading customers
Dell Technologies Inc's Australia unit found guilty of misleading customers
The Australian unit of Dell Technologies Inc was found guilty of misleading the customers about the prices, and discounts on its add-on monitors on its official website, said Australia's competition regulator on Tuesday.
As per reports, the customers who chose to purchase a personal computer system were given the option by Dell Australia in the name of a lucrative offer to bundle a compatible monitor at a discounted, or a 'strikethrough' price.
The company suggested to the clients that it would be much cheaper to buy the monitor in a bundle rather than separately.
"Dell Australia admitted that the monitors were not sold for the 'strikethrough' price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis," the Australian Competition and Consumer Commission (ACCC) said in a filing.
The regulator further added in the filing that the customers paid more than A$2 million ($1.32 million) for add-on monitors between August 2019 and mid-December 2021.
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As per a Reuters report, the tech giant sold more than 5,300 add-on monitors with exaggerated discounts and has agreed to offer refundsand compensation to more than 4,250 affected consumers.
Layoffs at Dell
Earlier this year, Dell Technologies Inc announced layoffs after the company's Co-Chief Operating OfficerJeff Clarke asserted that the company was facing tough market conditions with an uncertain future.
Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future."
"We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company announced a similar layoff in 2020 when the COVID-19 pandemic hit.
Industry analyst International Data Corporation (IDC) said preliminary data shows personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs.
(With inputs from agencies)
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