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.

Violation of FTC Mail Order Policy

Date: 04/02/1998 (Date of Penalty)

Misconduct Type: Consumer Affairs

Enforcement Agency: FTC

Contracting Party: None

Court Type: Administrative

Amount: $800,000

Disposition: Fine

Synopsis: “Dell Computer Corporation, the country's largest direct seller of personal computers, has agreed to settle Federal Trade Commission charges that it violated the FTC's Mail Order Rule when it advertised and sold a "Dell Dimension" computer system bundled with a package of third-party software that was not ready to be shipped. The company, which is based in Round Rock, Texas, has agreed to pay an $800,000 civil penalty -- the largest penalty ever paid by a single defendant for a violation of the Rule… The FTC's complaint detailing the allegations states that Dell violated the Mail Order Rule by: soliciting orders for merchandise, either by mail or phone, when it had no reasonable basis to expect to be able to ship some or all of the merchandise within the time stated in the solicitation, or if no time was stated, within 30 days of receiving a properly completed order; failing to offer the buyer the option of either consenting to a delay in shipping or to cancel the order and receive a prompt refund; and failing to offer the buyer a prepaid means to exercise those options.”