ADCTA Praises Custom Department for their timely action against Dell

 Custom Department ordered against Dell India for their unfair trade practice by misusing IPR Border Protection rule.

ADCTA submitted several representations to custom department explaining in detail about cheating to Indian Consumers by Dell India after registering UPRN with Misleading and wrong documents. Due to UPRN registered in custom Department all shipments of Dell Brand laptop under import suspended for clearance and Dell India substantially increased the prices of Dell Brand Laptops in India market 


The issue came in to light when Dell India increased the prices of LAPTOP in India despite of prices of Laptop were reduced in International Market. ADCTA started investigating this issue at their own and collected information from various sources. Government of India introduced several policies encouraging to parallel import so that Indian consumers may get the commodity at international competitive price. A Bill in support for parallel import already passed Lok Sabha and Rajya Sabha, Parallel import is a mechanism to control the price by importing the genuine commodity from traders in International market. Since Indian consumers are suffering a lot because of heavy price increased in consumable goods, ADCTA requested to Dell India for immediate stop the unfair trade practice. After repeatedly request Dell India did not bother to stop their unfair trade practice. On respond to our request Mr. Mahesh Inder Singh Bhalla, Executive Director (Dell India) openly challenges that Custom will not clear importers shipment without NOC from Dell India, which they will not issue to any Parallel importers. Mr. Bhalla continuously requested ADCTA to support their (Dell) stand against parallel importers. 

Dell India is a Single Brand Retail Outlet of Multi National Company who managed to stop the parallel import of Dell Brand Laptop in India and due to this action Indian Traders from IT Industries incurred potential loss in the tune of App. Rs. 500 Crores in the last three months i.e. Jan, Feb, March. In case other MNC had followed the same as Dell India, the loss to Indian consumers would have crossed 100000 crores (one lac crore). More over in case the same would have been followed by Pharmecutical Industries then it would have been disaster for Indian public.

The order issued by SIIB directed that Demurrage, detention and warehousing charges arising due to suspension of clearance are liquidated amounts and are to be borne by the right holder M/s Dell India Pvt. Ltd. SIIB department also clarified that due to Dell India Pvt. Ltd. Importers have suffered heavy financial loss and mental agony..

According to Mr. Mahinder Aggarwal, President (ADCTA), this entire episode came to the notice when office of the commissioner of custom, Mumbai issued an alert circular (No LRM/TARGET-55/2008-09) with directions that all the consignments found to contain Dell laptops or portable computers shipments, under import by parallel importers are subject to be suspended/hold for Dell's clearance.

President – ADCTA along with other members apprised to the officers of custom department about the unfair trade practice done by Dell India of cheating with Indian consumer by the misuse of Intellectual Property Rights (imported goods) Enforcement Rules, 2007, and Illegal Alert Circular issued by SIIB (IPR Cell), ACC, Mumbai. 

The unfair trade practice by Dell India (Cartelization, against the customer's interest) and custom department action are against the consumer benefit, and mechanism to control the prices.

The unfair trade practice by Dell India and custom department action, are against the consumer benefit, and mechanism to control the prices. 

A state judge in Albany, NY has found that Dell "has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates."

In addition, the judge also found that Dell Financial Services "has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions, fraudulent, misleading and deceptive practices in credit financing and improper debt collection practices."

Swarn Singh, Joint secretary, ADCTA said, “During the meet, the produced documents by the association were up to the satisfaction of the custom officers.  It was assured by custom officers that they will not let Dell India allow unfair trade practice on account of cartelization, which is illegal.”

To strengthen ADCTA findings, Mr. Shyam Modi, Chairman – ADCTA briefed about the recent price increase of 7% by Dell on Laptop's irked the whole IT Industry. He alleged that Dell India is charging much higher prices from customers in India than price available in open international market.

The association called the entire episode as preplanned by Dell, so that they can sell their laptops to Indian customers at very high price because of their monopoly which was managed by Dell after restricting the import consignments of other importers by misusing Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007. 

We are thankful to Custom Department for issuing such order which is an example for all multinationals companies for not involving in unfair trade practice.

5-Apr-2012 09:52:38