Australian Competition Watchdog Charges Dell for Misleading Prices

Australian Competition Watchdog Charges Dell for Misleading Prices

by  
Seneca ESG  
- November 10, 2022

The Australian Competition and Consumer Commission (ACCC) has initiated federal court proceedings against Dell Australia [0356592D:AU], a wholly-owned subsidiary of US computer company Dell Technologies [DELL:AV], for inflating the discounts of add-on monitors, as reported by Reuters on November 4. The ACCC accused Dell Australia of making deceptive representations on its website about the potential savings a consumer could get if an additional monitor is bought with a Dell computer during the period from August 2019 to December 2021. During the check-out process on the Dell website, the consumer was offered the option of adding a monitor, which was shown with a higher price in strikethrough. Dell states that the inflated discounts were displayed due to an error in Dell’s pricing process and has cooperated with the ACCC throughout the investigation process and refunded impacted customers.

ACCC Chair Gina Cass-Gottlieb reiterated the organization’s focus on sustainability during a speech in September 2022, emphasizing its role to ensure the validity of sustainability information to protect consumer rights and reduce anti-competition behaviors. The ACCC recently authorized a group of companies, including Equinix [EQIX:US], HSBC, and Nike [NKE:US], for a joint procurement process of renewable energy in 2021, as it considered the project likely to lead to environmental benefits, which are in line with public welfare. The regulator also started an internet sweep to uncover false or misleading sustainability marketing claims and reviews.

Sources:

https://www.reuters.com/technology/australian-competition-watchdog-start-proceedings-against-dells-local-unit-2022-11-04/

https://www.accc.gov.au/media-release/dell-australia-in-court-for-allegedly-misleading-consumers-about-the-cost-of-add-on-monitors

https://www.lexology.com/library/detail.aspx?g=8615ab1c-04f5-4022-8773-da3e54894133

https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/equinix-australia-enterprises-pty-ltd-ors

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