PC World's parent company was left red-faced and considering its
legal options this week after it was found guilty of mis-selling
computer equipment. A Yorkshire court heard how buyers were fooled
into thinking that they were getting new computer equipment while
they were – in fact – not only getting second-hand kit, and in one
case a laptop with a long history of trouble.
By Peter Hayes for The Register
This article has been reproduced from The Register, with
permission.
The five day-long case, which concluded this week, was brought
under the 1968 Trade Descriptions Act. The court heard that on 3rd
April, 2002 a customer bought a Toshiba 1800-814 laptop from a
Yorkshire branch of
PC
World while another customer
bought an Apple 700
CDRW
on 31st December the
following year from the same out-of-town outlet. Both believed that
the equipment was "ex display" or "otherwise new".
DSG Retail Ltd, which owns
PC
World, as well as
Dixons, Currys, and The Link, explained that the two cases were
"honest mistakes" caused by its computer system and individual
error. However this brought no favour from the court.
North Yorkshire Trading standards proved the "description" part
of the case by producing till receipts from both days. It is
understood that investigations into the extent of this practice was
responsible for the delay in bringing the cases to court.
Judge John Foster fined
DSG
Retail Ltd £5,500,
awarded its wronged customers £2,184 compensation, and ordered the
company to pay the £28,000 prosecution costs.
DSG
immediately said that it would consider an appeal.
Blatantly wrong
Matthew Boxall, for Trading Standards, said: "These computers
were sold on information that was blatantly wrong. The company
hadn't done enough to prevent the wrong impression being given -
this case shows there are serious consequences.
"The judge has imposed a significant fine, awarded substantial
costs and fully compensated the victims. He has made it quite clear
that businesses - whatever their size - cannot escape their
responsibilities. It's great news for consumers and for those
businesses who do all they can to prevent similar problems arising.
It shows it pays to get it right."
To make things worse the judge attacked the "due diligence"
defence (which could be used to present cases as "honest
accidents") and stated that the amount of staff training at the
individual
PC
World store wasn't long enough to
prevent such mistakes happening.
In the case of the Toshiba laptop, the customer only found it
had been pre-owned when he complained to Toshiba itself about its
performance. The model had been owned by a commercial company, but
had been returned after various faults had emerged.
PC
World said in a statement: "This was an
unfortunate case of human error and there was no intent on our part
to mislead the customers. We have comprehensive processes in place
to ensure that mistakes are not made and during the hearing the
judge praised our procedures. We are disappointed with the outcome
and we are currently considering an appeal."
Trading Standardsis interested in any other customers
(irrespective of UK location) who believe they have also received
secondhand equipment from
PC
World (or any other
retailer) which was advertised as new. They can be found under
Trading Standards in the phone book or via http://www.bt.com/.
