Dell Australia Fined By Regulators Over 'Misleading' Device Discount Tactics (itpro.com) 6
Dell has been fined more than $6.5 million by Australian regulators after it was found to have misled consumers on discounted hardware prices. From a report: The Australian Consumer and Competition Commission (ACCC) imposed a $10 million AUS fine on the tech giant for "making false and misleading representations" about discounted prices for add-on computer monitors. Dell Australia admitted that it has misled customers over prices available on monitors in 'bundle' packages alongside desktop, laptop, or notebook devices. Add-on monitors were "often advertised with a higher 'strikethrough' price," an investigation by the regulator found. These strikethrough prices were framed as a way for consumers to make significant savings on monitors if purchased alongside other computing products.
However, these discounted prices were often overstated, with the regulator ruling that the monitors were not sold for discounted prices in many instances. Dell also conceded it misled customers about the discounted price of add-on monitors with statements such as "Total Savings," "Includes x% off," "Discounted Price," and "Get the best price for popular accessories when purchased with this product." The ACCC said in a statement, "In many cases, consumers paid more than if they had purchased the monitor as a standalone product."
However, these discounted prices were often overstated, with the regulator ruling that the monitors were not sold for discounted prices in many instances. Dell also conceded it misled customers about the discounted price of add-on monitors with statements such as "Total Savings," "Includes x% off," "Discounted Price," and "Get the best price for popular accessories when purchased with this product." The ACCC said in a statement, "In many cases, consumers paid more than if they had purchased the monitor as a standalone product."
or (Score:1)
About 6.5 million in real money
Low enough to be the cost of business (Score:2)
You want their behavior to change? Start jailing executives and seizing 3x the revenues gained from the unacceptable behavior in stock. If 51% of stock is ever seized punitively then the company is "executed" and gets a corporate death penalty: Their charter is revoked and their business broken up among their smallest competitors.
How did they piss off the regulators? (Score:4, Interesting)
What did Dell do to piss off the Australian regulators? Retailers of all stripes have been pulling similar shenanigans since approximately forever. The article even mentions that Amazon Prime Day and typical Black Friday sales pull the same stunts. Why is Dell being singled out? (Or perhaps more to the point, why are all the others allowed to get away with it?)
Re:How did they piss off the regulators? (Score:4, Insightful)
That seems like a question to ask the US regulators.
The ACCC is fairly active, they pinged Costco last month for false representations too.
Re:How did they piss off the regulators? (Score:4, Informative)
Exactly what the article said: mislead consumers. It's illegal in Australia, and the law is enforced.
Correction: retailers in us US have been pulling similar shenanigans forever. But that isn't true in Australia.
My guess as to why is it's because the US government subservient to the corporates. In fact from afar the US style government seems to be more corporate cronyism (ie, a place were money has the votes) than a democracy (were citizens have the votes).
Australia on the other hand is closer to a true democracy. One example: in Australia, insulin is 1/3 of the price of the US, yet insulin is made in the US. A group of companies can't cooperate to change 3 times what it's worth unless the oligopoly can buy a loyal politician. Australia on the other hand plays one off against the other. It's the law, and it's enforced.
Re: (Score:3)
What did Dell do to piss off the Australian regulators? Retailers of all stripes have been pulling similar shenanigans since approximately forever. The article even mentions that Amazon Prime Day and typical Black Friday sales pull the same stunts. Why is Dell being singled out? (Or perhaps more to the point, why are all the others allowed to get away with it?)
So... because other retailers do it, it should be permitted? Or maybe this is a warning to other retailers that if they don't change their stripes they'll come for them next.
Amazon is a relatively new player in Australia and "black Friday" isn't a thing over there. For a long time, Australian retailers who deceptively labelled pricing have been charged with the same thing. So because it's OK to do this in your country, you think it should be OK everywhere?