OFT persuades Dell to delete 'unfair' small print in contracts

OFT persuades Dell to delete 'unfair' small print in contracts

Dell, the world's largest computer maker, yesterday agreed to an Office of Fair Trading request to strike out "unfair" small print in its contracts following a wave of complaints from consumers.

The OFT said it had identified a number of terms used by Dell which it considered to be inconsistent with the Unfair Terms in Consumer Contracts Regulations 1999 and other rules governing distance selling, and were therefore "unsuitable for use in consumer contracts".

The OFT said Dell will separate its consumer and business terms, and change the small print which had limited the company's liability. It will also remove some of the "unreasonable" obligations it placed on consumers trying to return a faulty product.

Dell manufactured and sold 18% of personal computers retailed in the world last year. Its combination of product development and aggressive marketing has helped drive computer prices down sharply, but critics say it is prone to using the small print in terms and conditions when customers try to complain.

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The OFT said it had raised the issue with Dell after it had received complaints through Consumer Direct and trading standards offices. The OFT has said it planned more such interventions in response to similar complaints.

Christine Wade, OFT director of consumer regulation enforcement, said: "Distance selling, be that by mail, phone or the internet, does not exclude businesses from ensuring their contracts are fair to consumers and compatible with the law.

"I'm pleased that Dell has worked with the OFT to modify important aspects of its terms and conditions, such as those relating to time of delivery and liability for faulty goods, in the light of the OFT's concerns."

Dell said: "We understand that this is a fairly routine activity which the OFT has also carried out to help other businesses working in the consumer sector. As a result of the review, our terms and conditions are now written in a much clearer language to the benefit of our customers. Dell has a very strong focus on improving our customer's experience and we expect to spend over $100m in support of this goal this year alone."

The company has been under pressure in the past year as competitors such as Hewlett-Packard have cut their prices and as a result gained market share. In May, Dell warned that first-quarter earnings and sales in its current financial year would not meet market expectations.

Dell opened a manufacturing plant in Limerick in 1990 to serve Europe, the Middle East and Africa. It recently started selling flat screen televisions alongside its computers and associated products.

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