OT: Dell sued over 'false' ads claims

[Meng Cheah]

*Dell, the world's largest computer maker, is facing legal action in 
China over allegations of false advertising.*

The group has been sued over charges its laptops contained a different, 
cheaper chip than those advertised.

According to state media reports at least 20 lawsuits have been filed 
against the Texas-based firm.

In a statement on its Direct2Dell website, Dell admitted it had made an 
"unfortunate and unintended marketing mistake" and apologised for the 
error.

Dell said had contacted customers and explained the difference between 
the two chips and offered full refunds to any customers who were still 
unsatisfied.

*Update delays*

Spokeswoman Sharon Zhang said the error took place after the firm began 
to switch the chips used in certain laptop models, but sales brochures 
and order forms were not updated in time.

The problems centre on Dell's Inspiron 640M laptop, according to 
marketing materials the model was fitted with Intel's T2300 chip which 
allows a computer to run multiple software applications at the same time.

However, in China, and some other countries Dell instead fitted the 
laptops with the T2300E chip which did not support this function. The 
chip also costs $32 less than the T2300.

A report in the China Daily newspaper said the first case accusing Dell 
of false advertising had been filed in Shanghai on 26 July, and a 
further 19 were filed on 8 August in Xiamen.

The court action could hinder Dell's attempts to lure customers away 
from rival Lenovo, the market leader in China.

http://news.bbc.co.uk/2/hi/business/4785641.stm
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