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Dell Computer Fined Over Software Offer

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Bloomberg News

Dell Computer Corp. agreed to pay an $800,000 fine to settle charges it misled consumers who ordered special software that wasn’t immediately ready for shipping, the Federal Trade Commission said. Dell will pay the largest penalty ever levied for violating an FTC rule designed to protect consumers who order by mail or over the phone. The FTC alleged that Dell, the largest mail-order distributor of personal computers, in late 1995 advertised the Dell Software Suite as being a component of its Dell Dimension computer system. When consumers ordered the system, the software wasn’t included. Instead, they received a coupon to get the software “when available.” Round Rock, Texas-based Dell said the delays occurred because of bugs discovered in a package of free promotional software advertised between November 1995 and February 1996. Separately, Dell said demand for PCs remains strong, and prices have not changed since Compaq Computer Corp. warned that weaker-than-expected demand caused a glut of machines in inventory.

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