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Dell Chastized Over Customer Service

The Register is reporting that Dell recently agreed to give into demands from the UK's Office of Fair Trading and alter the agreements that accompany their hardware. From the article: "The OFT has spent the past few months sparring with Dell over the company's terms and conditions. The two organizations recently agreed to settle their issues with Dell changing contracts and making them "fairer to consumers," the OFT said. The specific changes, however, remain secret as neither the OFT nor Dell will reveal exact terms and conditions alterations and as Dell has kept old contracts online."

23 of 169 comments (clear)

  1. Leveling the field by Beuno · · Score: 4, Insightful

    Finally some stories are kicking in that the balance is being pushed in favour of consumers instead of the other way.
    I think corporations should be punished heavily when they try to get away with abusive practices to trim down the ammount of users that get abused and also to be fair to the corporations who really do make an effort in being fair.

    1. Re:Leveling the field by slashdot-jake · · Score: 3, Interesting

      And as a result of all it's cost cutting and cut-throat business tactics, Dell may eventually implode under itself. I'm not saying it will happen overnight, but like many here on Slashdot, I work "in the industry." I work for a small computer sales/service retailer, and over the past 2-3 years I've experienced a sharp increase in the number of Dell computers coming in for service, relative to the number of other brands. Granted, many were for virus/spyware infections, and the large number may be more because of larger market share. Beyond viruses though, I have seen more than enough Dell components fail, particularly the lower end/bargain models, both Desktops and Laptops. Ordinarily that wouldn't bother me, but I've heard from customers how bad Dell support is now, with the call centers moved offshore. I've had to fix Dell computers still covered under warranty because the owners got so fed up with trying to get help from the support lines.

      A number of years ago, Dell built it's business up on quality parts and service- winning numerous awards for customer service, and were recommended all around. The beige box Dells in particular, which went for over $1500, were pretty solid machines. Back when profit margins were high enough to cover the costs of quality support. Now the conditions of the market have changed, and Dell has to trim the fat off what's already become an anorexic business model to stay competative. People who once came in to my shop swearing by Dell now swear AT Dell, and promise to never buy anything Dell again, after their 6 month old Inspiron 1150's LCD inverter burnt out, and Dell refused to replace it, even though it had a year warranty. Despite numerous calls, all the call center would say is insert the recovery CD and reinstall the operating system.

      Bottom line- Dell became the bohemoth it is now based on reputation of quality machines. Take the quality out, and they are just another retailer. They still enjoy brand recognition, and the higher end systems aren't too bad. But they grow marketshare by offering $299 PCs, and $699 laptops to anyone who thinks any Dell is a good Dell, even if on the cheap (without understanding that You Get What You Pay For). As a result, it's userbase will slowly erode away.

    2. Re:Leveling the field by cortana · · Score: 3, Insightful
      I think corporations should be punished heavily when they try to get away with abusive practices to trim down the ammount of users that get abused and also to be fair to the corporations who really do make an effort in being fair.
      ???

      If you don't like their customer service, don't buy their products. The market will decide whether good customer service is worth the extra cost.
    3. Re:Leveling the field by RsG · · Score: 3, Insightful

      And when all or most of the competing companies offer equally cruddy customer service? What then? Just "don't buy from any of them", and do without any support at all?

      The market isn't some mystical force. It isn't sentient, and it doesn't make decisions, no matter how we sometimes anthropomorphasize it. It's a semi-rational human construct that behaves predictably - and it cannot magically "correct" itself if the circumstances don't allow it.

      For market correction to occur spontainiously, there have to be a least two different choices facing a customer, and he has to have access to accurate information about what advantages and drawbacks each choice offers. If either the customer has no source of accurate information before making a purchasing decision, or if he doesn't have two different choices (two identical choices or only one choice are both possible reasons), then the market doesn't correct.

      If you're getting bad support, you've already made a purchase, and the company has gotten your cash. You can avoid them in the future, and tell others to do so as well, but it is entirely possible for a company to get by on one time customers alone. You'd have to know that the company had crappy tech support before you bought their product - and where are you going to get that information? Maybe the only people you know who bought from them never used their tech support. Going online doesn't help either - too much whining one the one hand and too much astroturfing on the other.

      And if you do know that company X has crappy support, then you still need a company Y to turn to that is better in this regard. If no such alternative exists (or is feasble for your circumstances), then there is nothing you can do.

      Free market capitalism is not a panacea. It's better than the alternatives, granted, but it does have drawbacks - and one of those drawbacks is the damage lack of accurate information and choice can do to customers.

      Also, the person you replied to said that misbehaving corporations need to be "punished", right? Isn't that exactly what the free market correcting itself is supposed to be about? Ie, people voting with their wallets, and leaving bad companies in favour of better ones.

      --
      Erotic is when you use a feather. Exotic is when you use the whole chicken.
    4. Re:Leveling the field by Changa_MC · · Score: 3, Insightful
      The US laws are supposed to be about allowing freedom for everyone, not protecting business, but they are becoming increasingly against businesses. Microsoft was persecuted by the EU, which apparently doesn't trust people to choose to associate with businesses on their own, and the fines were wrong.

      You need to substantiate some of this. What specific laws are you thinking of? In my opinion, US laws increasingly support business interests over individual rights, ala DMCA and other restrictive anti-consumer legislation.

      While computer geeks and big spenders have options like linux and OS/X, typical consumers have a choice of MS Windows or no computer. That means 90% of the consumer market is locked into using Microsoft, so the EU correctly recognized them as a monopoly. When they illegally leveraged that monopoly to expand their business in other markets, the EU fined them. In what way do you see their attempt to protect free market fair trade as wrong?

      --
      Changa hates change.
  2. Wayback machine? by fabu10u$ · · Score: 4, Insightful

    After they change the online copies, of course, won't you be able to diff them with the Wayback Machine?

    --
    They say the mind is the first thing to ... uh, what's that saying again?
  3. OK... by Frosty+Piss · · Score: 4, Funny

    "We've changed the contract, but we aren't telling you how..."

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:OK... by joe+155 · · Score: 4, Funny

      thats the old way of doing it; "I changed our deal, pray I don't change it further..."

      --
      *''I can't believe it's not a hyperlink.''
    2. Re:OK... by RsG · · Score: 4, Funny

      Yeah, except that if Vader used Dell parts, his respirator would crash every half hour. Plus, instead of the neat black colour scheme, his armour would probably have holstein spots. And he'd have to deal with their tech support, which make Sith lords seem charming and helpful by comparison...

      --
      Erotic is when you use a feather. Exotic is when you use the whole chicken.
  4. Re:hm... by joe+155 · · Score: 4, Informative

    figured I might as well expand...

    # limited liability for negligence to the price of the product

    If you agree a price and they accept then they can't later alter this so I fail to see too many problems

    # excluded liability for consequential loss arising out of breach of contract

    This might need looking at although I can't imagine too much which could go wrong, if the product isn't of a merchandisable quality then you can get your money back anyway (because of the statutory rights) - there are also rights to protect you from misleading advertising - if they fail to deliver then you can simply get your money back without too much trouble.

    # excluded liability for oral representations not confirmed in writing, and

    No contract is worth anything if it is not in writing so I can't see how this is a problem

    # required the consumer to notify Dell of any errors in its confirmation of the consumer's order immediately

    You'd expect this anyway, if they refuse to help then cancel because it is within your cooling off period

    - this all seems like it could be solved fairly easily anyway... you can't sign away statutory rights so consumers are safe as far as I can see...

    --
    *''I can't believe it's not a hyperlink.''
  5. Another non-story by dave420 · · Score: 4, Insightful

    Nothing important, nothing final, nothing being made public. Pure speculation ensues.

  6. We could use some of that in Canada... by Anonymous Coward · · Score: 4, Informative

    Dell's customer service in Canada has fallen so far in Canada over the last 5-7 years that as an IT consultant, I now include "avoid Dell" in my equipment recommendations to my clients. I have read their legals and there are so many "escape clauses" built in that I doubt that Dell could be forced to service anything no matter the cause if they stuck to the exact letter.

    Worse still is their telephone support. I often run across people whose Dell machines have run into problems, and where a clueless telephone support tech has caused them to lose all their machine's data. One client, a tax accountant, lost an extire tax season. I know, I know, backup data - but I think everyone here knows how likely you are to get most users to reliably do so. This is just one of many horror stories.

    I would just love it if Dell Canada were forced to take on some accountability for its products. Then perhaps the small business people they have actually hurt would find they had more when fighting with Dell to get a machine they thought was under warranty working again. At least for now, some have found that their only remedy is to sue.

  7. Scope of OFT's investigation by jrumney · · Score: 3, Interesting

    I wonder if OFT is also looking at Dells practice of advertising incredibly cheap computers then trying to convince people who call up to order that they need to pay an extra £100 to upgrade the RAM from 256Mb to 512Mb if they want to use broadband, because this PC they advertised "will only work with dialup". Or trying to upsell to the next model up, because this PC is end of line stock, and will "not work anymore in six months time".

  8. Clause F1R3 by pookemon · · Score: 5, Funny

    "All fires must be extinguished before the return of the product to Dell for servicing."

    --
    dnuof eruc rof aixelsid
  9. The last four computers... by subxero37 · · Score: 4, Informative

    that I've worked on were all Dells. Two of them had the same motherboard, both of which were completely dead, and both of which were no older than six months. When I called Dell to request new motherboards (since the machines were under warranty) they promptly told me that they could not replace motherboards. They then offered to send me new heatsinks. Yes, because heatsinks dissipate heat so well when they're placed on a component that can't be turned on. I was never able to coax them to send me new motherboards. I now have two dissatisfied customers. Surely, someone should kick their ass.

  10. Serves 'em right! by epp_b · · Score: 5, Informative

    Hey, I'd be pretty ticked at them too if they sold me a several-thousand-dollar network cable.

  11. I don't think it's related but... by Xest · · Score: 4, Interesting

    Dell carries out extremely deceptive marketing practices in the UK, they often advertise on TV and by mailshot really low price laptops and such, however if you phone up for the offer they wont sell you it and will offer you it at a higher price, even if you give the specific offer code. When I spoke to trading standards they acknowledged it's a problem but that as long as they can prove they've sold a few at that price then it doesn't matter if they then try and screw a few thousand other people on it.

    Dell definitely needs kicking into shape, their customer support is attrocious and some of the tactics they use are borderline, or at least should be outright illegal.

    It's just a shame that trading standards are merely getting them to change license agreement or whatever instead of really doing what needs doing - hitting them where it hurts with fines/legal proceedings as they deserve for their disgusting practices.

  12. Their reputation is costing them business by Anonymous Coward · · Score: 5, Interesting

    I was about to buy a laptop from them and did a little online research. The stories of incredible bad service that I read convinced me that it was too much of a gamble. Most of the stories revolved around people spending weeks and months trying to convince Dell that their hardware was broken so they could return it for repair. I didn't buy a laptop from them.

    This situation is way past ironic. Dell got its start by convincing customers that it was safe to buy computers on line. The service was good. Dell sold good hardware that didn't break but if it did break, there was no problem getting a quick repair or a new machine. Boy, have things ever changed!

    My WAG is that there won't be a Dell in five years.

  13. Re:hm... by Turn-X+Alphonse · · Score: 3, Informative

    The UK is different from the US. We don't go "oh the market will sort it's self out", we go "oi, you stick to the rules or you fuck off". That way if someone is being a bitch to their customers or using too much bullshit to get the truth out of them, people like Trading standards and other government bodies come in. They check it out and get it sorted.

    We're an odd little place and like everyone to play fair no matter what, not just assume the cheats will get theirs via the customers.

    --
    I like muppets.
  14. Re:hm... by DRJlaw · · Score: 4, Informative

    # limited liability for negligence to the price of the product
    If you agree a price and they accept then they can't later alter this so I fail to see too many problems


    Your Dell laptop explodes due to a faulty lithium ion battery and burns down your house. Dell's liability is limited to the price of the laptop. I see a problem.

    # excluded liability for consequential loss arising out of breach of contract
    This might need looking at although I can't imagine too much which could go wrong, if the product isn't of a merchandisable quality then you can get your money back anyway (because of the statutory rights) - there are also rights to protect you from misleading advertising - if they fail to deliver then you can simply get your money back without too much trouble.


    Consequential damages may be but are not necessarily related to warranties of merchantability and/or truth in advertising. Dell sells you 50 rack mount servers for a video production project that starts on 8/7/2006 and promises a delivery date of 8/1/2006. Dell fails to deliver the servers until two months after the delivery date. You've lost 7 weeks of production time. Those weeks of delay may be compensable as consequential damages.

    # excluded liability for oral representations not confirmed in writing, and
    No contract is worth anything if it is not in writing so I can't see how this is a problem.


    The Statute of Frauds says otherwise. The common law says otherwise. There are plenty of ways to prove the existence of a contract that do not rely on a signed writing. I find it odd that you believe that Dell can make such representations and simultaneously protect itself from liability for making them.

    # required the consumer to notify Dell of any errors in its confirmation of the consumer's order immediately
    You'd expect this anyway, if they refuse to help then cancel because it is within your cooling off period


    I would not expect this at all. The consumer makes an offer for a specified piece of equipment. Dell purports to accept the offer but specifies different equipment. Under the law of contracts the consumer is not obligated to do anything because Dell has failed to accept the original offer, and in fact made a counteroffer (mirror image rule). The professional sales organization shifts the effort required to catch and correct errors onto the consumer. You believe that this is equitable?

    Four strikes. You're out.

  15. In other news.... by Proudrooster · · Score: 4, Funny

    In other news, Dell has customer support!?! Wow, I had no idea. Where do I get the number for this customer support, instead of the number for the prescripted question answer line?

  16. My Dell Hell Story by DellFraud · · Score: 3, Informative
    For anyone out there that thinks Dell has good customer service. Try again. This is the worst company that I have ever dealt with. I am still trying to fight with them so I won't give all the details yet, but if I ever get my money back from them, I will be posting even more details. I have contacted several lawyers and asked them to file a class action lawsuit against them for consumer fraud, but all of the lawyers are afraid of Dell. The biggest reason is because there is a binding arbitration clause buried in the sales contract. If there are any lawyers at there that would be willing to help me out with this case I would be delighted to work with you to hold Dell accountable for their actions.
    • Purchased new computer from Dell on 08/24/03.
    • On 03/23/04 the computer just started overheating and shutting off.
    • They replaced the processor, heatsink and fan unit on 04/04/04 and the problem went away. BTW, I had a next day business warranty with them and they were not able to fix my problem from 3/23/04 until 04/04/04.
    • On 12/29/04 I contacted Dell again because this problem was happening again. After discussing with them explaining to them that this is a product defect and that they can not fix the problem they told me they would replace the parts again, I was told with an updated part, unfortunately I find that hard to believe because it was the exact same part number as the first time.
    • They replaced the parts but because I knew the problem would happen again I made them give me an additional year on the warranty. They told me they would extend the warranty, but I would have to pay for it and then they would reimburse me. I payed the money and then they told me that they couldn't reiimburse me. I fought with them until 04/11/05 to get them to give me my money back.
    • At this point, I thought the problem was fixed because it hadn't overheated or shut off for a very long time. Then I found out when they replaced the parts on 12/29/04 they also replaced the BIOS to A33 on the computer and when the computer started overheating it would only run at 1/2 the speed as what I was sold. Eg. I bought a 3.06GHz and it would only run at 1.56GHz
    • On 05/11/06, I contacted Dell telling them that their "solution" to the problem was not acceptable. I was told that I needed to upgrade my BIOS to A38 and turn Intel SpeedStep off in the BIOS. I did and the problem still existed.
    • I called on 05/16/06, telling them that the solution did not fix the problem and they told me that they had no way to fix this technical support problem. I then told them I wanted a new computer. They agreed to this and I was told that I would be getting a new computer that was equivalent or better in every way.
    • On 05/31/06, I received the new computer and 45 minutes after it was turned on it crashed. There was something wrong with the graphics. I explained to them that there was a problem with the new computer and they said that I would have to go through the normal troubleshooting procedures. I told them that I was sending back the new system and that I wanted my money back on my orginal system.
    • On 06/22/06, I was told that Dell would refund me my original system cost minus 25% depreciation to the original form of payment.
    • On 06/27/06, I informed Dell that the original credit card that I used I know longer had the account and I was told that I had to provide them with written verification that I know longer had an account with the credit card company. I contacted the credit card company and had them fax the requested information to Dell and they said that it was not sufficient to "bypass or circumvent the normal processes".
    • On 07/07/06, I informed Dell that this was not acceptable and they would need to provide me exactly what it is they need from the credit card company and / or find an alternative method of payment even though I closed the credit card account which was the original form of payment on Nov. 4th 2004!!!!
  17. Semi-related question - Refurbished parts? by Beek · · Score: 3, Interesting

    A salesman (not for Dell obviously) once told me that Dell sometimes uses refurbished parts in new machines, and that it's mentioned in their Terms of Sale. Sure enough, the terms contained this: > Dell will ship products that have the functionality and performance of the products ordered, but changes between what is shipped and what is described in a specification sheet or catalogue are possible. The parts and assemblies used in building Dell products are selected from new and equivalent-to-new parts and assemblies in accordance with industry practices. Spare parts may be new or reconditioned. So how suspect is this? I have a feeling the salesman was blowing smoke because he couldn't match Dell's price. I haven't been able to find many complaints about this clause anywhere on the net.