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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Violation of FTC Mail Order Policy

“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.”

Misconduct Type
Consumer Affairs
Enforcement Agency
FTC
Contracting Party
None
Court Type
Administrative
Disposition
Fine
Date of Penalty
4/2/1998
Contractors Involved Penalty
Total
Dell, Inc. $800,000
Further Information Released
FTC Press Release 8/23/2006

Federal Contractor Misconduct Database