Dell Australia misled customers with ‘shocking’ false discounts

Customers who purchased Dell monitors as part of an online sale several years ago will be refunded, after the Federal Court found the Australian branch of the technology company misled consumers with “shocking” false discounts.

The Australian Competition and Consumer Commission (ACCC) launched legal action against the company last year over a sale between 2019 and 2022 which offered customers discounts on computer monitors if they were purchased as bundle packages along with a desktop, laptop, or notebook device.

ACCC Commissioner Liza Carver said Dell Australia admitted during the court proceedings it misled customers because most of the time, the monitors were not sold at the supposed original price touted before the discount.

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“In some cases, consumers paid more for the add-on monitor advertised as ‘discounted’ than they would have paid if they had bought it as a stand-alone product, which is shocking,” she said.

“This case serves as an important reminder to Businesses that suggestive upselling or bundling of products must not mislead consumers as to the deal they are getting.”

Dell Australia made more than $2 million from selling add-on monitors between August 2019 and mid-December 2021.

The ACCC said more than 5300 monitors were sold at a price higher than the advertised discount.

The company has been ordered to offer full or partial refunds.

The Federal Court has also ordered that it appoint an independent compliance professional and issue corrective notices to every customer who purchased an add-on monitor during the relevant period.

Submissions on penalties and costs will be heard at a later date.