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| Chips Could Prove a Hot Potato for Dell |
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Claims that it deliberately misled customers about a chip used in its machines could lead to computer manufacturer Dell facing hundreds of lawsuits. Customers say their computers were fitted with cheaper, lower quality processors than advertised and accuse Dell of fraud. A first case brought by a single claimant was started in Shanghai on July 26 but has now been joined by a further suit filed by 19 claimants, at a court in Xiamen, Fujian Province, where the company's China headquarters are located. . Xiamen Huli District People's Court has ruled there is a case to answer and now the suit brought by the 19 from Beijing, Shanghai, Shenzhen, Chongqing, Guangxi, Hebei, Shandong and Fujian could be joined by many more. An online bulletin board set up by disgruntled consumers to publicize the issue registered more than 500 people whose computers had different chips to those advertised and all could follow with lawsuits of their own. "My clients bought the Dell Inspiron 640M this June but found out later that Dell used an inferior CPU (central processing unit)," lawyer for the 19, Guo Zhongfang, told China Daily yesterday. The trouble first arose in early June when one computer owner discovered the CPU in his Inspiron 640M was a T2300E instead of the T2300 Dell specified on its website, in advertisements and on specific invoices. He posted the grievance on benyouhui.it168.com, a popular online bulletin board, and uncovered hundreds of similar stories. The T2300E chip costs an estimated US$32 less than the T2300 and reportedly has fewer functions. Zhang Min, the Shanghai man who filed the first lawsuit, says it's a typical case of double standards with Chinese customers being deliberately ripped off. "I tried to negotiate with Dell and simply asked them to change the CPU but they said there was no difference between the two and it was unnecessary to change, "he said. "My lawyer sent them a letter demanding compensation, which Dell chose to ignore, so we decided to sue," he explained. So far in Zhang's case, Shanghai Luwan District People's Court has accepted the suit, but no hearing has yet been scheduled. Zhang's lawyer, Ma Jianrong, is clear about his client's demands: "We require a public apology from Dell, a full refund on the computer 7,995 yuan (US$1,000) plus a fine of the same amount and compensation for related costs," he said. Attorney in the Xiamen case, Guo Zhongfang, is adamant he too wants Dell to be punished. "Dell has defrauded Chinese consumers and should be fined according to the law," he said. "What makes things worse is that they've been arrogant and ignored consumers' complaints. We're not suing for money -- what we want is to hear the truth." Dell China says chip manufacturer Intel stopped producing the T2300 in June and the company was forced to use the T2300E chips instead, International Finance News reported. The problem, the company says, was an innocent case of accidentally forgetting to change information on its website and in advertisements. When China Daily tried to contact Dell China yesterday, the company declined to comment on the case, but said it had previously issued apologies for the mistake and offered refunds to affected customers. This has done little to assuage those who smell a potential lawsuit. According to International Finance News customers in Beijing and Guangzhou are already queuing up to sue and attorney's Ma and Guo say they've received many enquiries about pursuing further cases. (China Daily August 11, 2006) |
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