Not again: Dell accused of not honoring warranties

Citizens for Responsibility and Ethics in Washington (CREW), a consumer advocacy organization, launched Dellception.org to highlight accusations that the Round Rock, TX refuses to honor its “next day service” plans.

CREW also filed a complaint with the District of Columbia Attorney General, asking for an investigation into the experience CREW executive director Melanie Sloan had with Dell when the company refused to honor its “Next Day Parts and Labor On-Site Response.” D.C., as well as other states, prohibits these deceptive trade practices. In a January 2009 settlement with 34 state Attorneys General (not including D.C.), Dell agreed to pay $3.35 million to resolve allegations of deceptive advertising and its failure to honor warranties.

Noted blogger, Jeff Jarvis has made a career of bringing Dell customer service issues to light. The company has made significant efforts to improve its tarnished image and was recently rated on par with its peer companies, although not as high as Apple in customer service and support. The last thing the company needs is additional negative press about its service plans. For the uninitiated, service plans are the lifeblood of many retailers. Often products are sold at or below cost, with the service plan providing profit margins.