Suit Planned Over GE Dishwasher Recall

New York state’s attorney general said he plans to sue General Electric Co., claiming GE persuaded thousands of consumers to buy new dishwashers when defective machines involved in a recall were repairable. Atty. Gen. Eliot Spitzer said GE concealed information about inexpensive procedures available to fix a fire hazard linked to a defective switch in some GE and Hotpoint dishwashers. A spokesman for Fairfield, Conn.-based GE denied the allegations. GE in October issued a recall for about 3 million dishwashers made between 1983 and 1989 after about 50 reported instances of melted energy-saver switches and seven instances of fires in the units. Spitzer claims that, instead of informing customers that the problem could be fixed in minutes for about $75, GE encouraged them to buy replacement machines, offering rebates of $75 to $125. At the same time, he said, GE was providing commercial customers with repair information, kits and videos and a $15-per-unit labor allowance. GE shares fell $4.66 to $131.00 on the NYSE.