Dell fined $4m in New York fraud scandal

Dell will now have to clearly and fully disclose its terms and conditions

Dell has been forced to pay $4m (£2.4m) in compensation to New York consumers after being found guilty of fraudulent and deceptive business practices.

The case was initially filed by the New York Attorney General's office in 2007, alleging that Dell engaged in "bait and switch advertising" with respect to its 'no interest' financing promotions.

Dell was also accused of misleading consumers into believing they had qualified for promotional financing, failing fully to disclose the terms of its 'next day' service contracts, and failing to provide consumers with warranty services and promised rebates.

New York attorney general Andrew Cuomo said in a statement that he is encouraging any consumers in New York state who felt that they were ripped off by Dell to file a claim to get their money back.

"Today's announcement is the final step in ensuring that New Yorkers harmed by Dell's deceptive and illegal business practices are fully compensated," he added.

"This deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services to avoid this kind of fraud at the consumer's expense."