Final Court Decision Reached In G.e. Dishwasher Recall Case

Attorney General Spitzer today announced a court decision in the General Electric dishwasher recall case. Spitzer issued the following statement as part of a presentation to the Good Housekeeping luncheon forum in New York City.

"I am pleased that the Appellate Division of State Supreme Court has upheld an important decision for consumers that found General Electric engaged in fraud and deceptive business practices during its 1999 recall of 3.1 million fire-prone dishwashers," Spitzer said.

The Appellate Division, First Department upheld the decision of Supreme Court Justice Louise Gruner Gans ordering GE to pay restitution to thousands of consumers who were duped into buying new dishwashers when a quick, inexpensive repair was available.

The decision also affirms the lower court's order requiring GE to publicize the decision in newspapers across the state and to pay for a third party administrator to send letters notifying consumers about GE's false and fraudulent statements to all who participated in the rebate program or who contacted GE about the recall.

GE also is required to publish notice of consumers' right to a free repair to ensure that the fire hazard is eliminated.

The courts also rejected GE's argument that the Attorney General's office could not act to protect consumers against its deceptive acts because a federal regulatory agency was monitoring the dishwasher recall.

"My office is committed to vigorous enforcement of the consumer protection laws in New York State," Spitzer said.