Dell Australia has been ordered by the Federal Court to pay a $10 million penalty for making false and misleading representations on its website about discount prices for add-on computer monitors. More than 5,300 monitors were sold to consumers with overstated discounts.
In proceedings brought by the ACCC, Dell Australia admitted it 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.
ACCC commissioner, Liza Carver said the 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. “It is important that businesses are careful when advertising discount pricing to ensure they do not mislead consumers about the savings on offer,” she said.
Earlier this year, the court ordered the company to offer refunds and issue corrective notices to affected consumers and review its compliance program. Dell Australia was also ordered to pay a contribution to the ACCC’s costs.
Dell Australia admitted it had contravened Australian Consumer Law and made joint submissions with the ACCC in respect of penalty and other orders. It also commenced offering refunds to some consumers prior to the court making orders.