ACCC takes action over promotional offer.

 

Dell Australia has been ordered by the Federal Court to pay $10 million for making false and misleading representations on its website about discount prices for add-on computer monitors.

 

In enforcement proceedings brought by the ACCC, Dell Australia admitted that it had misled customers about the price of a selection of monitors available to ‘bundle’ with a purchase of a desktop, laptop or notebook. The add-on monitors were often advertised with a higher ‘strikethrough’ price, indicating a significant saving if purchased with other computer products.

 

Dell Australia admitted that it overstated the discounts customers received as monitors were not sold for the strikethrough price for most of the relevant time. In many cases, consumers paid more than if they had purchased the monitor as a stand-alone product. More than 5300 monitors were sold to consumers with overstated discounts.

 

Dell Australia also admitted that it misled customers about the discounted price of the add-on monitors with various statements including “Total Savings”, “Includes x% off”, “Discounted Price” and “Get the best price for popular accessories when purchased with this product”.

 

“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,” ACCC Commissioner Liza Carver said.

 

“We took this action against Dell Australia because consumers rely on accurate information about prices and discounts to make purchasing decisions.”

 

“It is important that businesses are careful when advertising discount pricing to ensure they do not mislead consumers about the savings on offer,” Carver said.