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Dell Flubs Online Prices

Online Taiwanese prices drastically below retail values

Jon Hood
ConsumerAffairs.com

July 10, 2009
It's cliché, but consistently true: If it looks too good to be true, it probably is.

Dell is facing the wrath of angry consumers after accidentally offering monitors and laptops online for prices far below their actual retail value.

On its Taiwan website, the company accidentally advertised Latitude E4300 laptops for $560, and LCD monitors for a whopping $15. The posted prices were well below what Dell generally charges; the laptop retails for around $2,100.

Dell has since shut down its Taiwan web site until it figures out what went wrong and corrects course. In a more controversial move, however, the company also canceled all purchases affected by the glitch.

Now the Taiwanese Fair Trade Commission (FTC) wants answers. The agency is investigating whether Dell violated Taiwanese fair trade laws; if so, the company could be fined for up to $760,000. Taiwan's Consumer Protection Commission (CPC) is also looking into the issue.

Dell is already looking to save a little face.

The company promises to keep in touch with customers affected by the confusion and to “demonstrate Dell's respect for its customers.” In that spirit, the company is offering coupons to consumers who found their purchases canceled. Would-be laptop buyers will receive a coupon for $20,000 in New Taiwan Dollars (NT), which translates to about $600 American. Those who attempted to purchase an LCD monitor will get a coupon for NT $1,000, or $30 American.

The Taiwanese Consumers' Foundation (CF) isn't satisfied, however. The commission is urging affected consumers to band together and file a class action lawsuit.

Buyers duped by the misleading prices “are the ones who can authorize the Consumers' Foundation to file the lawsuit on their behalf,” according to Wu Chia-cheng, CF's secretary general.

Wu said that Dell hasn't fully explained how the coupons will work; for example, will affected consumers be refunded the difference, or forced to pay the full price, only to receive a coupon later? He also noted that Dell has not outlined how the coupons may or may not be used.

In a statement, Dell promised that it “is going to contact affected customers as soon as possible to inform them in detail of how the coupons should be used and to make refunds as quickly as possible.”

According to Dell, the two glitches were unrelated, although the company didn't provide further details.

IBM faced a similar situation in 2004, when it advertised CD-ROMs for 1 renminibi (the currency of China); the actual price was 1,600 renminibi. There, IBM bit the bullet and shipped the items at their advertised price.

Dell is the world's second-largest computer manufacturer, behind only Nokia.

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