Dell rebuked over hidden delivery charge

 

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Posted on 28 May 2008 at 10:01

Dell has been censured by the Advertising Standards Authority (ASA) for failing to include delivery charges in its headline prices for new PCs.

The company came unstuck with a mail out to businesses, which offered a PC for £249 and a laptop for £199.

The text underneath the price of each machine said the prices excluded VAT and delivery, but it wasn't until the smallprint at the foot of the page that Dell revealed the delivery charge was £51.06 excl VAT (£60 inc VAT) per system.

Dell argued that business customers "would expect there to be delivery charges and would look to ascertain the total cost, including delivery", and that the delivery charge was given due prominence.

However, that didn't wash with the ASA, which "reminded Dell that non-optional charges imposed on all buyers should be included in the headline price".

The ASA also ticked off the company for failing to mention the rate of VAT. "We considered that, because the mailing did not include prominent information about the VAT rate payable or the price inclusive of VAT, the mailing breached the Code."

Curiously, Dell also listed a "collection charge" of £57.58 inc VAT per system, suggesting that customers would have to pay more to pick up a PC than have it sent to them. However, the ASA adjudication says that Dell is "no longer charging customers for collection and explained that the reference to a collection charge was printed in error".

Author: Barry Collins