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Dell Fined $30,000 for Taiwanese Pricing Errors

By - Source: Tom's Hardware US | B 31 comments

Dell's 'fine' deals turned out to be costly for the PC maker.

In the last month, Dell has faced increasing scrutiny over its apparent price errors on its Taiwanese online retail site.

After being ordered by the Taiwan government to honor purchases for the erroneously priced 19-inch LCD monitor for $15, Dell followed up with a few more pricing errors, leading consumer protection bodies to step in.

Taiwan's Consumer Protection Commission has given a fine to Dell of NT$1,000,000, or just over $30,000 USD.

Now Dell is faced with either paying the fine or going back to honor all the original orders at the erroneously lower prices. While the logical thing for Dell to do is to take the less costly of two avenues, it'll be interested to see if Dell's pride will have anything to do with its next step.

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Top Comments
  • 11 Hide
    Anonymous , July 30, 2009 5:36 PM
    Anyone wants a job with Dell in Taiwan as an online product and price administrator?
    I guess they have one open right now!
Other Comments
  • 3 Hide
    griffed88 , July 30, 2009 4:37 PM
    lol man Dell's suck...
  • 1 Hide
    kingnoobe , July 30, 2009 4:38 PM
    I don't see how dell's pride would affect that decision.. They can't deny they screwed up.. They'll pay the fine any smart company would. Remember it's all about the cash, if dell thought they could save face I'm sure they'd fight it, but this isn't something they can save face on except by admitting to it.
  • 1 Hide
    valcron , July 30, 2009 4:56 PM
    Maybe now Dell will stop miss pricing items for those of us to order them and then have them cancel all of the orders. Still want my 1TB HD for 45/50 dollars.

    Seriously though they should have been fined hire. If this was a first time offense no biggie but Dell has continuously made these so called, "errors" of the years, they knew about them, and did nothing to correct them from continuing to happen. They knew it would keep people coming to their site to look for more is my thought. Basically false advertising/bait and switch.
  • 5 Hide
    amnotanoobie , July 30, 2009 5:01 PM
    $30,000 fine + "shame on them" is better than (approx) $20,000,000 worth of hardware to give away + pride
  • 5 Hide
    jerther , July 30, 2009 5:28 PM
    19-inch LCD monitor for $15, Fined $30,000

    Looks like their typos cost more than those in many articles here ;) 

    cheap shot :p 
  • 11 Hide
    Anonymous , July 30, 2009 5:36 PM
    Anyone wants a job with Dell in Taiwan as an online product and price administrator?
    I guess they have one open right now!
  • 2 Hide
    scook9 , July 30, 2009 5:41 PM
    HP does this too sometimes

    If I am lucky, I will have an OEM QX9300 for my laptop coming next week that I paid only $500 for (they typically go for around $1200)
  • 1 Hide
    pharge , July 30, 2009 6:22 PM
    "Taiwan's Consumer Protection Commission has given a fine to Dell of NT$1,000,000, or just over $30,000 USD."

    According to news, the Taiwan's Consumer Protection Commission (TCPC) has asked Dell to fix the mistake by providing the monitors with 40% off from the lowest sale price... and then wen t up to 25% off from the lowerest sale price... but Dell refused and only want to give out some discount coupons instead... that is why the TCPC fined Dell. In the news... the head of TCPC in Taipei said.. if Dell still refuse to fix the problem in a reasonable way, this fine can be as much as a daily fine.
  • 1 Hide
    grieve , July 30, 2009 6:23 PM
    Make Dell honor the orders and pay the wimpy 30k fine.

    GEEZ 30k is pennies to Dell... Why even bother.
  • 1 Hide
    pharge , July 30, 2009 6:26 PM
    oops.... sorry.... misread the news.... "by providing the monitors with 40% off from the lowest sale price... and then wen t up to 25% off from the lowerest sale price..." should be first 25% off and then went down to 15% off....

    sorry about the wrong information.....>_
  • 0 Hide
    computabug , July 30, 2009 6:35 PM
    Too bad I missed those deals... If I got one, I'd make sure Dell fulfilled it... no matter how many phone calls it took.
  • 1 Hide
    bk420 , July 30, 2009 6:56 PM
    LOL, $30K i bet dell uses that much in electricity everyday.
  • 4 Hide
    Hellbound , July 30, 2009 9:06 PM
    In June of last year my brother and I walked into a Fry's electronics store in Concord, CA to buy a couple of video cards. I noticed they had geforce 9800gtx+ for $99. We each picked one up, went to the check stand thinking nothing was wrong. The lady at the checkout scanned mine, looked at me, then told me she would be right back. When she returned she had a completely different card, same model, just made by someone else and told me it would be $216.48. I quickly knew something was up, and they had pulled a switch.

    Long story short, they tried to tell me they didn't have those cards advertised at $99, those were $199 cards. Luckily for me, my brother still had his.. They "found" my card and sold it to me for $99. In the end, they lost a customer.

    Companies need to honor price mistakes, even if it costs them allot.
  • 0 Hide
    Anonymous , July 30, 2009 10:20 PM
    lol Companies don't need to honor anything. They just want your money, and they want a large chunk of it. What to do in a would run by A**Ho*es.
  • 4 Hide
    dave_cable , July 30, 2009 10:43 PM
    I Got this gem from Dell back in March 09.

    "Dear Customer,

    I am sorry to inform you that Dell has canceled your recent order for the Vizio 32” LCD HDTV due to a pricing error. The price shown was incorrect, and was far below the correct price for that product. As indicated on our web site, as well as in our catalogs and other advertisements, Dell reserves the right to cancel orders resulting from pricing errors. Because of the large difference in price, we have not reinstated your order, but we invite you to visit dell.com to re-order at the correct price.

    We value our relationship with you, and we sincerely regret this error and the resulting inconvenience. Please be assured that we are working hard to prevent errors such as this one, and to improve your overall customer experience with us.

    Sincerely,

    The Dell Customer Care Team
    "

    I'd like to know where my justice is? Looks like the Taiwan government knows how to take care of their citizens...
  • 0 Hide
    anhxeom , July 30, 2009 11:12 PM
    I got this today in the email, it was just a few days ago they were selling the Canon SD1200 for $114.......


    Dear ************,

    Thank you for your recent order for the Canon PowerShot SD1200 Camera. Unfortunately, there was a pricing error on your order; as a result your order was cancelled. We apologize for any inconvenience this may have caused.

    If you would like to purchase this Canon PowerShot SD1200 Camera at the advertised price of $165, please visit www.dell.com starting July 30th 2009 through August 8th 2009. Add the coupon code below to your order when you check out to receive the camera at the discounted price of $165.00 before tax and shipping.

    Your Coupon Code is: *************

    We truly value our relationship and reputation with our customers. Please be assured that we are working hard to avoid this type of inconvenience in the future.



  • 0 Hide
    doomsdaydave11 , July 31, 2009 1:04 AM
    griffed88lol man Dell's suck...

    With the recent price drops and hardware selection improvements... Dell is slowly getting better imo.
  • 2 Hide
    computabug , July 31, 2009 3:14 AM
    dave_cableLooks like the Taiwan government knows how to take care of their citizens...

    It's not taken care of enough. I say force dell to fulfill every single order.
  • 0 Hide
    leafblower29 , July 31, 2009 6:01 AM
    Dell should be fined that much for existing.
  • 0 Hide
    liemfukliang , July 31, 2009 11:30 AM
    DAMN. I write a long comment, and my internet is slow. I have to restart again >:p . My point is I have been in a such situation. One of Indonesia flagship IT online store was selling ATI Radeon Flagship about 200 YEN! Since the store is flagship, I really thing there is a real promotion. I buy it. Check out. Everything was ok until I got email like above comment. They say I have the wrong price, bla... bla... bla. Event Rp 1 they don't give me coupon / discount / some compensation. This event acually is really great grow a carefull input and responsible attitude.
    Here is the detail blog about it --> http://ficforlife.com/2008/10/bhinneka-tidak-bertanggung-jawab-2.html.
    Ok I thing I just copy paste this text in some place before I hit the submit button.
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