Australian Competition and Consumer Commission v Dell Computers Pty Limited (Includes Corrigendum Dated 16 August 2002)

The Australian Competition and Consumer Commission brought proceedings against Dell Computers Pty Limited, alleging misleading conduct under the Australian Consumer Law. The dispute centred around Dell's advertising practices, specifically the way they presented the prices of their computer products. The ACCC claimed that Dell advertised prices without clearly disclosing a compulsory delivery charge that was added to the final price, thereby misleading consumers about the true cost of the products.

The primary legal issue before the court was whether Dell's advertising practices constituted misleading conduct under section 18 of the Australian Consumer Law. The court had to determine if the way Dell presented product prices was likely to mislead consumers regarding the true cost of the products. This involved an assessment of whether the delivery charge was sufficiently disclosed and whether consumers were misled by the omission of this information in the advertisements.

In examining the evidence and arguments presented, the court found that Dell's advertising practices did indeed mislead consumers. The court held that the compulsory delivery charge was not clearly and expressly stated in the advertisements, and this omission was misleading because it caused consumers to believe that the advertised price was the final price they would pay. The court ordered that Dell be restrained from advertising product prices without clearly stating the delivery charge. Additionally, Dell was required to publish a corrective advertisement to inform consumers about the true cost of the products, and to pay the ACCC's costs of the proceedings.

The court's decision emphasised the importance of transparency in advertising to ensure consumers are not misled about the true cost of products. The orders given were aimed at rectifying the misleading conduct and ensuring that consumers were adequately informed about all charges associated with the advertised products.