Dell to face charges at Aussie courts

SYDNEY--The Australian Competition and Consumer Commission (ACCC) is seeking court orders against Dell Computer, alleging that the computer manufacturer has breached the Trade Practices Act.

The ACCC has started court proceedings against Dell for false, misleading and deceptive conduct and failure to state the cash prices of goods advertised in newspapers, magazines and the Internet.

A directions hearing is scheduled for February 7 next year, at the Federal Court in Sydney.

The ACCC claims that Dell has breached section 52, section 53(e), and 53(c) of the Trade Practices Act.

In a statement, the ACCC said Dell's advertising misled consumers by failing to clearly indicate that delivery charges were compulsory; what these charges were; and the cash price of their goods, by not stating the delivery-inclusive price in situations where the delivery charge did not vary.

Among the remedies the ACCC is seeking are declarations that Dell Computer breached the relevant provisions of the Act; injunctions restraining Dell from advertising in the same way in the future; orders requiring Dell to publish corrective advertisements in the publications where the original advertisements appeared; refunds of the delivery charges for affected consumers; community service orders; and costs.

A Dell spokesperson said the company would be defending the action, and that it had never knowingly misled a customer. Both the Dell spokesperson and an ACCC representative said they were unable to comment further because the matter was now before the courts.

Staff writer Vivienne Fisher reported from Australia.