Dell is getting sued for Bait and Switch

Sun Baked

macrumors G5
May 19, 2002
14,874
57
If they don't use the "credit score" and uniformly aply a rather normal standard, they can get slammed very heavy for this type of fraud.

Financial crimes related to loans are heavy penalties for any company.

However, selling low priced computers and advertising an introductory rate is a common business practice -- but you do have to let people know ahead of time.

---

The bait and switch is especially bad, since some of these people do have credit cards they can use -- but the salesperson talks them into Dell financing, or automatically switches them to it according to some reports.

Dell and Rip-Off Reports
 

clayj

macrumors 604
Jan 14, 2005
7,477
205
visiting from downstream
In case you didn't know, or didn't get to the end of the story, the law firm that's suing (Lerach et al) is widely known as a corporate shakedown artist... they sue EVERYONE for huge sums of money just so they can force settlements. These guys are SCUM, no matter who they're representing.
 

Chip NoVaMac

macrumors G3
Dec 25, 2003
8,894
31
Northern Virginia
Sun Baked said:
If they don't use the "credit score" and uniformly aply a rather normal standard, they can get slammed very heavy for this type of fraud.

Financial crimes related to loans are heavy penalties for any company.

However, selling low priced computers and advertising an introductory rate is a common business practice -- but you do have to let people know ahead of time.

---

The bait and switch is especially bad, since some of these people do have credit cards they can use -- but the salesperson talks them into Dell financing, or automatically switches them to it according to some reports.

Dell and Rip-Off Reports
The problem is consumers. they don't read the terms closely.

Add to that I had no problem in getting the interest free financing.
 

Chip NoVaMac

macrumors G3
Dec 25, 2003
8,894
31
Northern Virginia
clayjohanson said:
In case you didn't know, or didn't get to the end of the story, the law firm that's suing (Lerach et al) is widely known as a corporate shakedown artist... they sue EVERYONE for huge sums of money just so they can force settlements. These guys are SCUM, no matter who they're representing.
Guess they had to get one last lawsuit in with the new law. thanks to the likes of them, the consumers may loose long term.
 

daveL

macrumors 68020
Jun 18, 2003
2,425
0
Montana
In the wake of Enron, et al, I'm not surprised by this at all. Dell has been in a very awkward position for several years in that they have to meet the very aggressive growth/profit expectation of their investors. That's very difficult to do in a commodity market like Intel PCs; even IBM gave up.
 

imac9556

macrumors 6502a
Jul 12, 2004
539
7
DELL DESERVES IT!
I got screwed by them too, they charged me for something that was supposed to be free as "gift", and they said they will fix the problem by contacting my sales person. Well that jack@ss lady never called me back who setup the order and I ended up have to pay for the laptop bag.
Thinking about it, I should sue them too!
 

Mechcozmo

macrumors 603
Jul 17, 2004
5,215
2
Just because of the fact that I hate Dell's as computers, :D

But I hate lawyers who sue for no reason. But if that nurse has a valid case, then let those lawyer's fly!
(It's 21st century warfare. We don't shoot them, we sue them!)
 

clayj

macrumors 604
Jan 14, 2005
7,477
205
visiting from downstream
Mechcozmo said:
Just because of the fact that I hate Dell's as computers, :D

But I hate lawyers who sue for no reason. But if that nurse has a valid case, then let those lawyer's fly!
(It's 21st century warfare. We don't shoot them, we sue them!)
See, the problem here is that law firms like Lerach seek out people like the woman who's heading up the class action suit, just so they can shake down companies like Dell. It's law firms like this that cause us all to pay more for the things we buy on a daily basis... just as BASF makes the things you buy, better, Lerach makes the things you buy, more expensive. I ain't saying that Dell's innocent of wrongdoing, just that they may be getting screwed over here by a bunch of overzealous attorneys.

Thank goodness for the recent law that restricts class action cases to Federal court. It'll definitely put a crimp in the lifestyle of jerk lawyers who do nothing but sue, sue, sue.
 

Jon'sLightBulbs

macrumors 6502a
Jan 31, 2005
524
0
Chicago
clayjohanson said:
See, the problem here is that law firms like Lerach seek out people like the woman who's heading up the class action suit, just so they can shake down companies like Dell... I ain't saying that Dell's innocent of wrongdoing, just that they may be getting screwed over here by a bunch of overzealous attorneys.
Actually, soliciting unsubstantiated lawsuits is unlawful in most jurisdictions; it's called barratry, and it's prohibited and sanctioned under rule 11 of the federal rules of civil procedure (and its state court progeny).

Of interest:

Par. 21 of Lerach's complaint: "Dell's sophisticated operational systems are well known in the industry and are frequently the subject of news articles and business case studies."

Immediately followed by par 22: "In contrast to Dell's sophistication, Dell admits that its consumer customers are unsophisticated. In recently filed legal proceedings to protect Dell's trademark, Dell claimed: 'Because Dell sells its products over the internet to anyone who wishes to purchase them, the relevant consumers include many who are relatively unsophisticated.'"


Amazing what a little crafty wordsmithing can yield. :D Draws an evil caricature of Dell using the beheamoth's own words.


More importantly, if anyone believes that this lawsuit is unsubstantiated on the pleadings alone, par. 36(b) of the complaint alleges:

"The full terms of ... agreements... are not revealed until the first bill is sent to the consumer. At the time the customer recieves his/her first bill and the terms of defendants' financing, the return period for the computer has already passed. Financing class members are left with loans with much higher annual percentave rates and other hidden fees than they believe that they agreed to in their original application. "

Overzealous lawyering this is not.
 

savar

macrumors 68000
Jun 6, 2003
1,952
0
District of Columbia
clayjohanson said:
See, the problem here is that law firms like Lerach seek out people like the woman who's heading up the class action suit, just so they can shake down companies like Dell. It's law firms like this that <snip> Thank goodness for the recent law that restricts class action cases to Federal court. It'll definitely put a crimp in the lifestyle of jerk lawyers
who do nothing but sue, sue, sue.
Hell, I don't feel any sympathy for large corporations. I would fleece them too if I had a law degree right now.

The real problem is the perverse incentives that our tort system provides. For a law firm to sue a company costs them very little...the largest expense is the opportunity cost. (If they lose the case, they lose the money they might have won on a better case.) Arbitrarily limiting class action lawsuits is the wrong, wrong answer.

How about if the loser pays for some portion of the winner's court fees, according to how indelible the blame is. I believe in the UK you have to pay the defendants legal fees if you lose. If big firms aren't doing anything bad, then they shouldn't have anything to fear in standing up for themselves.
 

Mechcozmo

macrumors 603
Jul 17, 2004
5,215
2
clayjohanson said:
See, the problem here is that law firms like Lerach seek out people like the woman who's heading up the class action suit, just so they can shake down companies like Dell.
I hate lawyers like that... didn't read enough about that law firm. My dad is a general surgeon, you want to talk about malpractice lawyers being ****ers...


But it is Dell... decisions, decisions... :p
Damn lawyers.
 

acedickson

macrumors 6502a
Dec 6, 2004
727
0
ATL
Glad I didn't buy anything from Dell, let alone finance anything. That's horrible to pull a scheme like that.
 

Chip NoVaMac

macrumors G3
Dec 25, 2003
8,894
31
Northern Virginia
savar said:
Hell, I don't feel any sympathy for large corporations. I would fleece them too if I had a law degree right now.

The real problem is the perverse incentives that our tort system provides. For a law firm to sue a company costs them very little...the largest expense is the opportunity cost. (If they lose the case, they lose the money they might have won on a better case.) Arbitrarily limiting class action lawsuits is the wrong, wrong answer.

How about if the loser pays for some portion of the winner's court fees, according to how indelible the blame is. I believe in the UK you have to pay the defendants legal fees if you lose. If big firms aren't doing anything bad, then they shouldn't have anything to fear in standing up for themselves.
Hence I am thinking with the new law this week or last, we are throwing out the baby with the bath water. My only hope is that the federal courts will step up to the plate to protect consumers, than the "big money" interests.
 

SteveC

macrumors 6502
Jul 7, 2003
438
0
This is the most hilarious part of the article:

A Dell (Research) spokesman said it is the company's policy to not comment on any pending litigation, but that the company will continue to focus on offering impressive services to customers at a good value.
LOL LOL LOL

*Riiiiiight.........* *rolls eyes....*
 

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