Computer giant Dell fined in Taiwan over consumer dispute

Jul 30, 2009
Dell headquarters in Round Rock, Texas. Taiwanese authorities on Thursday fined US computer giant Dell one million Taiwan dollars (30,500 US) for customer rights infringements after it failed to honour an online price offer.

Taiwanese authorities on Thursday fined US computer giant Dell one million Taiwan dollars (30,500 US) for customer rights infringements after it failed to honour an online price offer.

The punishment came after Taipei City Government received more than 1,400 complaints against Dell after it charged customers more than it had advertised on its website.

In the most recent incident, the company's Latitude E4300 , which usually retails at 60,900 Taiwan dollars, appeared online at less than a third of the price, reportedly prompting bargain-hunters to place up to 100,000 orders.

"Dell was insincere in resolving the disputes and refused to accept the 25-percent-off compensation deal advised by the city government," said Chen Po-ching, the city's senior consumer rights official.

Municipal authorities said they would consider imposing repeated fines or even barring Dell from selling its products online if the company fails to provide an acceptable compensation package within two weeks.

Dell apologised to customers for the pricing errors in a statement on its Taiwanese website but is yet to comment on the fine.

It will charge customers who placed orders the correct price but has also offered a voucher of 20,000 Taiwan dollars per customer in compensation.

The cabinet-level Fair Trade Commission has also launched a probe into whether is guilty of false or misleading pricing of its products. The company could be fined up to 25 million Taiwan dollars.

(c) 2009 AFP

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