Top bar

About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Dell, Inc.

Misleading Advertisements

Date: 05/13/1999 (Date of Press Release)

Misconduct Type: Consumer Affairs

Enforcement Agency: FTC

Contracting Party: None

Court Type: Administrative

Amount: $0

Disposition: Administrative Agreement

Synopsis: “Dell Computer Corp. and Micron Electronics, Inc. have agreed to settle Federal Trade Commission charges that their computer lease advertisements violated federal laws. According to the agency, both Dell and Micron disseminated misleading ads for consumer leases by placing material cost information in inconspicuous or unreadable fine print or omitting such information altogether. The proposed settlements with Dell and Micron would require the companies to provide consumers with clear, readable, and understandable information in their lease advertising… The proposed consent agreements that the FTC negotiated with Dell and Micron would settle the charges and prevent the companies from engaging in similar acts and practices in the future. Under the proposed order, Dell would be prohibited from failing to disclose clearly and conspicuously (in a manner that an ordinary consumer could read [or hear] and comprehend) that any advertised terms pertain to a lease offer. Both Dell and Micron would be prohibited from making any reference to any charge that is part of the total amount due at leasing signing or that no such amount is due, unless the ad also states with equal prominence the total amount due at lease inception. The companies also would be prohibited from running ads that highlight low monthly payments, unless the ads also state, clearly and conspicuously that (1) the advertised transaction is a lease; (2) the total amount due at lease signing; (3) whether or not a security deposit is required; (4) the number, amount, and timing of scheduled payments; and (5) that, for open-end leases, an extra charge may be imposed at the end of the lease term.”