Best Buy Accused of Overcharging 301
An anonymous reader writes "Connecticut's Attorney General Richard Blumenthal has accused Best Buy of overcharging its customers. His accusation is that customers see one price on Best Buy's website, in stores salespeople would show them a different internal site from a kiosk. Best Buy denies the charges. 'Previously, the company confirmed that store employees have access to an internal Web site that looks nearly identical to the public BestBuy.com site, but the company's policy is always to offer customers the lowest quoted price unless it's specifically identified as a deal available only to online shoppers. Jerry Farrell Jr., Connecticut's consumer protection commissioner, said the lawsuit should be a warning to companies to be more transparent in their business practices.'"
Re:About damn time (Score:5, Informative)
OLD NEWS (Score:1, Informative)
From Feb 2007
http://www.techdirt.com/articles/20070209/124307.
March 2007
http://www.courant.com/news/local/hc-watchdog0302
Repost? (Score:5, Informative)
Totaly true! (Score:4, Informative)
To be fair to best buy though once I had the print out it took them about 15 seconds to give me the monitor for the 350, but it would have been nice if I hadn't had to have diven back home to get it for the right price.
Re:subject (Score:5, Informative)
The accusation is that the internal website had higher prices, and when a customer quoted the external website, Best Buy employees would show them the internal site and say "no, this is the advertised price on the site". They're saying that the internal site was designed to intentionally mislead and overcharge customers.
I don't know about you yanks... (Score:4, Informative)
If you find a discrepancy, file a complaint [competitionbureau.gc.ca].
Re:old (Score:2, Informative)
Dupe (Score:4, Informative)
http://yro.slashdot.org/yro/07/03/03/0423239.shtm
Best buy already fessed up on this.
Re:About damn time (Score:3, Informative)
Customer: "Where are the 256MB sticks of PC 2700 for $19?"
Employee: "We sold them much faster than we expected to. It must be that great special. Can I show you these 512MB sticks for $39.99?"
Re:old (Score:3, Informative)
Connecticut's attorney general announced a lawsuit Thursday against Best Buy Co. Inc., accusing the nation's largest consumer electronics retailer of deceiving customers with in-store computer kiosks and overcharging them.
Article date? Yesterday. This isn't just people complaining anymore.
Shocked? Why? (Score:4, Informative)
the value of best buy's service plan (Score:5, Informative)
Re:subject (Score:4, Informative)
Company's Policy bullshit.. (Score:1, Informative)
I left that company long ago. I go back to talk to the eternal drones, the employees that have been there for 5 years... they tell me they're noticing the company is shady, it reports good earnings during down times by cutting labor massively (truth; fulltime = 28 hours, part time = 4 hours, january... and fire as many part timers as possible
It's not enough to ride a legal case on, you need hard evidence that shows that yes all this "shady business" is really shady business and yes it's violating actual laws. The SEC and attorney generals and everyone are starting to find that evidence. BestBuy is starting to crumble, and if it doesn't shape up it will fall. If we could dump everything bad about BestBuy into the open right now, the SEC would come by and inform them they have to STOP ALL TRADE until further investigation (i.e. death).
Re:the value of best buy's service plan (Score:5, Informative)
The only time it makes sense to take on of the plans is if the cost of the item is so high that you can't afford to replace it if it does break, and you can't go without it. Anything else ends up being a bad financial gamble.
Re:Eh (Score:3, Informative)
This news about Best Buy using the bait and switch tactic has gone much further back than people realize. I used to work in a Dallas-area Best Buy 5 years ago and we were taught as associates to use the method (although it was never called "bait-n-switch" for obvious reasons) to upsell customers to bring in more revenue and inflate numbers. I was told by my supervisor on one occasion that we would explain to our customer how we didn't have the computer he was looking for, but the next closest store that had it was over an hour away. My supervisor's intent was to upsell the computer package even though we did indeed have in stock the computer he was looking for.
All these types of actions I saw when working there from 2002 - 2003, and I would hate to think how far back it went before that.
Re:the value of best buy's service plan (Score:5, Informative)
In fact, it almost *always* is a bad financial gamble...take cell phone insurance plans for example (most people are probably familiar with those). The last time I purchased a cell phone w/plan I calculated, given the monthly insurance payment and the value of the phone, using the formulas for Expected Value [wikipedia.org] and Present Value [wikipedia.org] (using short term bank CD rates for interest), that the insurance companies figure that there is better than 90% chance that every person who purchases the insurance on their cell phone will end up using it before the insurance company receives payments in the amount of the original purchase price of the phone. In other words, if you believe that your chance of having a total loss on your phone is less than 90% certain (assuming that you don't plan to break it on purpose to collect, which would be fraudulent and is probably why the insurance companies chose this high rate, to cover the costs of the people that do this so that their insurance money wasn't 'wasted') before you have paid an amount equivalent to the phone then you should *not* purchase the insurance. It would be cheaper to simply buy a new phone at full (or probably reduced price, but I didn't even factor that into my calculation so how much *worse* of a deal would the insurance be if we accounted for depreciation of the phone? Probably push that probability over 100% which means that the insurance company wins no matter what happens) price on the off chance that you lose it or it breaks. I would imagine that most consumer product insurance, with the possible exception of really big ticket durable goods like cars, is scaled like this to account for all of the cheaters since most people who buy this type of insurance plan to collect at some point in the future.
Futureshop the same (Score:3, Informative)
The other day, I went to FS to buy Satellite radio receiver and a home kit. FS didn't have the cheaper but good SkyFi 2 receiver I wanted. It had it on sale in the flyer but there was probably only one in the store. They say the Skyfi 3 is on sale and much better. They offer to me to use their computer to look up the product. Great! Go on newegg.com
I would recount that BB staff spent 35 minutes looking for a radio saying it was in stock, couldn't find it, offered a raincheck and never called me back. But that's another story....
Re:About damn time (Score:5, Informative)
Not that I give a damn about their business practices, but I used to be a sales associate at Best Buy, in the computer department.
You have to trust me when I say this: The people in the store have NOTHING to do with this. We never hid sales items.
Here's the real story. Every Friday or Saturday, we'd get the weekly ad which went live on Sunday. In my store, we got two trucks a week, Wednesday and Friday, after close of business. Sometimes they were 48', sometimes 53'. If we didn't have the ad by Friday night, we could usually tell which stick of ram would be on sale because we got a box of it, probably 20 units or more. As I recall, there were usually three brands - kingston, ValURam, and one other that I forget. Every week, one of the 256 MB sticks would be on sale, and usually a laptop stick as well (I worked there around 2000-2001). So, when we knew, we'd stock as much of it as possible to have it close on hand.
With no exceptions, on Sunday morning at open of business (11 am), the first people in the store would be headed straight for the computer department counter, to buy all the ram they could. Usually, it said something like "limit 2 per" on the ad, but when it didn't say that, boy was it not a fun day to hand out the ram. Anyway, by 6 pm - close of business - on Sunday, all the ram was gone. We of course still had the two other brands in the same size which were $20 more. But, by Tuesday, the customers were incensed about the lack of advertised items.
I cannot count the times I was accused by outraged, misinformed customers of bait-and-switch when I'd show them what we happened to have in stock, be it ram or computers. No, sir, I'm sorry that we don't have any more of the $350 E-Machine computer in stock. Perhaps when you see a computer deal that's insanely cheap, you shouldn't presume that you are the only person within 50 miles that will want to purchase it. Yes, sir, we did have them in stock. Yes, sir, we got a shipment of 30 of them last Friday, and we anticipate getting another 15 Wednesday, and probably some more this Friday. No sir, I can't hold one for you.
Whatever. Ask me anything you want, I worked there long enough to know how almost everything works. I'll reply truthfully.
~Wx
Re:About damn time (Score:3, Informative)