Federal Court Finds Dell Australia Guilty of Deceptive Pricing, Misleading Customers

One of Australia’s largest technology companies has been found guilty of providing false and deceptive information regarding prices on its website.

On Tuesday, the Australian Competition and Consumer Commission (ACCC) announced that the Federal Court had determined Dell Australia Pty Ltd had misled customers about the prices of additional monitors displayed on their website.

Dell Australia acknowledged that monitors appearing with a “strike-through” discount price when bundled with other purchases were not actually discounted.

They also admitted that, in some cases, a higher discounted price was presented to “indicate significant savings when purchased with a computer.”

The company further made misleading statements regarding discounted prices, including claims of “total savings,” “x percent off,” and “discounted price.”

The website falsely declared, “Get the best price for popular accessories when purchased with this product.”

Dell Australia managed to sell 5,300 add-on monitors that were advertised with inflated discounts.

As a result, the court ordered Dell Australia to reimburse over 4,250 affected customers who had purchased the monitor under false pretenses.

ACCC commissioner Liza Carver explained that the legal action was taken due to concerns that Dell had deceived its customers.

“In some instances, consumers paid more for the supposedly ‘discounted’ add-on monitor than they would have paid if they had bought it separately, which is truly surprising,” commented Ms. Carver.

“The court emphasized that price and discounts are crucial factors for consumers when choosing between product offers, and this case highlights the importance of retailers displaying accurate ‘was/now’ pricing and genuine savings.

“This case serves as a significant reminder to businesses that suggestive upselling or product bundling must not mislead consumers about the value of the deal they are receiving.”

Between August 2019 and December 2021, Dell Australia earned over $2 million from the sale of these add-on monitors. The company is now contacting affected customers to arrange refunds.

In addition, the Federal Court mandated that Dell appoint an independent compliance professional to review their programs and issue corrective notices to affected customers.

Decisions regarding penalties and court costs will be determined at a later date.