Dell is facing new legal problems as the company was sued by New York Attorney General Andrew Cuomo. According to Cuomo Dell is guilty to have used "bait and switch" tactics to sell its computers and for failing to honour service agreements.

"At Dell, customer service means no service at all. Dell's consumers were intentionally misled, and they had to pay for that privilege," Cuomo said in a statement. "I hope this lawsuit sends a message to companies large and small that delivering a product is simply not enough. The promises they make must be delivered as well."

The lawsuit was filed a day earlier in the New York Supreme Court. In his legal complaint, Cuomo claims that Dell and Dell Financial Services LP engaged in fraud, false advertising and deceptive business practices. The New York AG also said Dell tried to deter customers from using the company's support system by subjecting them to lengthy waits, disconnections and shuttling from one representative to another.

According to Cuomo, the state had received an "unprecedented number of complaints," totaling about 700.

In an official statement Dell denied the charges. "We are confident that our practices will be found to be fair and appropriate," Dell’s spokesman Bob Pearson said. "While even one dissatisfied customer is too many, the allegations in the AG's filing are based upon a small fraction of Dell's consumer transactions in New York."

Dell also said that it has sold close to six million computers during the period the lawsuit covers -- 2003 and 2006. During this period the Texas-based company has registered a 12 percent decline in complaints against Dell and 43 percent against Dell Financial Services with the Better Business Bureau.