Know the failure rate of the product you're buying.
The best way to establish the actual value of an extended warranty is to know the failure rate of the product; then you can make a better guess about whether it's financially acceptable to you. For instance, the warranty website SquareTrade estimates failure rates for Wii consoles at 2.7% over 3 years, and they sell their Wii warranty for $30.

To a perfectly rational person, that insurance is worth exactly 2.7 percent of $200, or $5.40. But it can be worth more to someone who fears financial loss of the product or the inconvenience of repairs.

Finding failure rates can be difficult, though. Here's a list of generic failure rates from data released in 2006, or you can sometimes find info by Googling the name of the item + "failure rate." You might also want to find out beforehand how responsive the manufacturer is with defective products—Nintendo, for example, has a pretty good reputation when it comes to fixing devices that break through no fault of the owner.

If you're buying something that gives you pleasure, put off any decision about a warranty for a week or two.
The NYT article cites some research by psychologists that indicates consumers who are buying products that make them happier tend to buy more extended warranties. You might think this is because they tend to break down more, but you'd be wrong—with the exception of the Xbox 360, which I believe has a failure rate of somewhere around 11,000%, it's household appliances like washers and dryers that break down more frequently. And yet, fewer customers buy those extended warranties, and pay less for them when they do.

If you get a good deal on something, don't even consider an extended warranty at the time of purchase.
Because you'll be so high on the fact that you got a good deal, you'll fall right into the trap described above of being more risk-averse than normal, and hence more likely to throw away your savings at the register on an overpriced extended warranty.

"Don't Worry, Be Happy: The Warranty Psychology" [New York Times]
(Photo: shalf)

Two groups of 30 people watched the same video clip, individually, on the same television. Half were told to expect a better experience thanks to HD technology, an impression backed up by posters, flyers and an extra-thick cable connected to the screen. The other half were told to expect a normal DVD signal.

Guess which group reported a clearer, crisper viewing experience, though they were watching the same clip on the same equipment? Yep, that'd be the group told to expect high-definition video.

We presume it's only a matter of time before this study makes its way into the Best Buy sales staff training manuals.

Think yourself a sharper TV picture [New Scientist] (Thanks, Ron!)
The emperor's clothes in high resolution: An experimental study of the framing effect and the diffusion of HDTV [ACM]

(Photo: satinpeter)

Michael says:

I checked the availability of a HDD that's on sale there on the Best Buy web site, and it reported that it was in stock at this location. I drove to the store, and when I didn't see any on the shelf I asked a sales associate. He informed me that they were all out of stock and that the web site takes about 6 hours to update the inventory, and that that was the reason for the discrepancy.

I didn't trust him, however, so when I got home I logged back onto the Best Buy site and ordered the HDD for in-store pick-up at the same location, and wouldn't you know it, about a half an hour later there was a message in my inbox letting me know that my order was ready to be picked up! I drove back to Best Buy once again to pick up my HDD and asked the employee at the customer service counter why I was told that the drive was not in stock when it obviously was. Her response was just a sort of awkward shrug and an "I dunno." In the end at least I got my HDD, but I sure wasted a lot of time (not to mention gas) driving around unnecessarily.

You have to admit, however, that his "the website is wrong" line did effectively get you to go away, albeit temporarily, which we can only assume was its intended function.

(Photo:dooleymtv)

The company wanted to repair their television, but Tavie and Gina wouldn't accept anything other than a refund, considering their experience with this particular television and Funai in general. They are, however, satisfied, and have ended the Boycott Funai campaign on Twitter. Tavie wrote to Consumerist:

The refund check was sent by Fedex and received on Tuesday. Gina has deposited the money. Oddly, Mr Guerrero [Louis Guerrero, Assistant Customer Service Manager at Funai USA -Ed.] still hasn't sent a box for us to return the tv, so we still have its corpse (which will soon be replaced with a Sony.) I've posted one last update on the Twitter page about the satisfactory resolution to our dealings with Funai.

If you have a problem with Funai that regular customer service can't resolve, here's who you can contact:

Level 2 Customer Service Hotline
Level2@funaiservice.com / (888) 290-0871

We're very glad to hear of their success! Thanks to Brandon, who provided the escalated contact information for the person at Funai who was able to help.

Here's what the rest of us can take away from this story. Tavie and Gina always interacted with Funai in a mature and professional manner. They always kept in mind the very reasonable things that they wanted from the company - either a new replacement television, or a refund of the original purchase price - and stood firm. Well done!

PREVIOUSLY:
Funai Knows TV Broke Under Warranty, Hopes You Go Away

Here's how it works:

Simply drop your clean used toy(s) in the mail, when we receive it in our warehouse we will have it cleaned and disassembled. The rubber, silicone, hard plastics, metal, e-waste and motors will be sent to recycling facilities that process the materials for reuse. Did you leave the batteries in? Don't worry, we dispose of them responsibly.

Recyclers will receive a $10 gift card to another erotic emporium for every box accepted.

Sex Toy Recycling Program [Official Site] (Thanks, TRANSRACIALNYC!)

(Photo: soylentgreen23)

When Jeremy saw an external hard drive he wanted was $59.99 in-store only, he overlooked the tiny print that said "Prices, promotions, styles and availability may vary by store and online." And then he got into some trouble that caused him to write this letter to Target customer service:

I went in the Target store located in Charlottesville, Virginia to purchase a Seagate 250GB external hard drive. According to my research on the target.com website before I arrived, the in-store price was $59.99. However, when I arrived to purchase it, the price had gone up to $84.99. I had the electronics clerk take a look to verify pricing. He checked the website and it continued to state that the cost was $59.99. The clerk then requested the store manager 'David' to come to the front. David verified that the website indicated a cost of $59.99, but he pointed out that the fine print said that 'prices may vary'. Unfortunately, the website didn't indicate the range of prices that I may have to pay, much less indicate that the price may be up to 40% more than advertised.

I contacted guest relations and spoke with Kelly. She was very polite and helpful. She called the store in question and informed me that the in-store price was indeed $59.99 and that a mistake had been made. As I needed the item quickly, I had to use another retailer. Not only did I end up having to shop Best Buy, I wasted time going into the
Target store just to find out that I could get it for almost $20 less at Wal-Mart.

As I don't like to give Wal-Mart my money and I simply dislike Best Buy's sales tactics, I was very pleased to have a Target store open in my area. However, needing this item on short notice and doing the proper research to determine price, location and availability, I was under the impression that Target would be able to provide me this unit at the price indicated at the store indicated. I learned that I was mistaken.

Kelly informed me that to know what a price was at a particular store, I would have to call them to find out. I find this method of determining store pricing very unfortunate, especially in 2009. I neither have the time nor inclination to make phone calls to stores and be put on hold until someone can determine what a unit's price is. The entire point of a web presence is information, preferably accurate information.

Prior to the Target store opening in my area, I had to shop Wal-Mart or Best Buy. For all their other, serious issues, they at least had accurate information on their website. I could determine online what the actual cost was as well as availability.

I would request that I'm contacted when this oversight is corrected so that my family can start shopping Target again.
Thank you for your time and consideration.

Despite the total ubiquity of these "web price may vary" policies at retailers, we get a lot of angry emails like this one. Customers want to use the website to research prices and availability at a given store, but stores have yet to develop a way for consumers to reliably do so. The dance will likely never end.

(Photo: pdxmac)

Just got off the phone with the Tivo customer support, where I was informed of an unfortunate new charge your readers might be interested in. According to the customer service rep, starting in April 2009 there is now a $150 fee to transfer "lifetime" service from one unit to another during a repair, regardless of whether the unit is under warranty or not, which is certainly a change in terms from when the lifetime service was sold. Unfortunately, the transfer fee makes any repairs not cost effective, since you could rent a DVR from your cable provider for many, many years, during which your Tivo would probably die again, necessitating another $150 transfer fee.

I found myself in this boat this morning, when my Tivo series3 died. Cost to fix and transfer lifetime service: $349. No thanks. Neither the Tivo customer service department nor the account cancellation department, who were both very nice, had the ability to rescind the lifetime transfer fee, which would cost tivo nothing. In response, I have cancelled the one tivo I still had on a month to month plan.

In order to make financial sense, the DVR needs to last four three and a half years after the customer purchases a lifetime service plan, assuming that the user purchases a cheaper 3-year plan instead of lifetime service. The $150 transfer fee means that a lifetime plan is now an even poorer investment.

(Photo: reflection717

Just had a fantastic customer service experience with Tivo that I want to share with you and your readers. I love my Tivo and just like they say, I could never return to normal tv again. I have been a loyal customer for 3 years, and have even bought my folks a Tivo through my account.

Recently I noticed that my regular billing cycle was costing me 18.95$ a month. As an avid consumerist reader I should've known better than to just shirk off auto-payments and know what is being debited from my account. I logged into tivo and saw that they have been charging me 18.95$ a month for the last year and a half (when my service plan ended) while only charging my folks' Tivo at 10.95$ a month for the same level of service.

I picked up the phone with a calm, polite and collected attitude and was greeted by the cheery Yasmina. She informed me of how I was being charged their baseline price from when my Tivo subscription had ended, 18.95$ a month, though now the costs were 12.95$ a month. She agreed it seemed unfair but her only resolution was to sign up for a new contract to take advantage of the new price-scheme. She then passed me to Cindy in Advanced Customer Service. Cindy was great - we chatted about the rainy weather in Indiana where she lived and worked and the heat wave in NYC.

Without me even once referencing my conversation with Yasmina, Cindy solved my problem. She cut my monthly service fee to 12.95$ price scale AND set me up with 3 months free service as a 'thank you for understanding.' All those tips about being polite with CSRs paid off for me. I even beat her to the punch and asked for the customer survey, and she was so pleased to hear that!

Thanks Tivo for your great customer service and thank you Consumerist for arming me with great strategies to make my CS trek less daunting - and surely much more enjoyable for both Yasmina and Cindy!

Yay! Good service, a company that sees the point in keeping longtime, loyal customers!

(Photo: mightyb)

Here are just a couple of examples from the HD Guru report:

Sales Pitch: Their Geek Squad Black Tie Protection pamphlet says that if your product requires 4 repairs, "we'll make sure that you get a new one."
Truth: Contract says "new" can mean refurbished or rebuilt, at Best Buy's discretion.

Sales Pitch: Pamphlet says on TVs 30" and up, you'll get a loaner if they can't fix yours on the first visit.
Truth: There's no mention of a loaner TV anywhere in the contract, so you'd better hope your Best Buy honors pamphlets.

Sales Pitch: If they can't repair your TV, they'll replace it with a product of equal value, or reimburse you fair market value for it.
Truth: "Fair market" means what they determine it's worth at the time of the repair. As an example, HD Guru points out that this past April Best Buy recalled a house brand LCD HDTV that sold for "up to $1000" and was less than 3 years old. The fair market value compensation it gave out: "gift cards amounting to $500 or about half of the original purchase price."

Click over and read the full report for more details on the truth versus fiction of Best Buy's warranty programs, and to read the company's official response to HD Guru's questions.

"Extended Warranties: What You See Is Often Not What You Get - An HD GURU Investigative Report" [HD Guru]
(Photo: Robert Scoble)

I just had a great customer service experience that I thought I should share with you guys. I bought a pair of V-Moda Vibe Duo headphones with the inline mic for my phone from Amazon.com about a year and a half ago. They came with a nice pouch and fabric covered cables which pretty much prevented them from getting tangled up and fit my ears much better than other headphones I've used. I really loved the headphones and took them with me everywhere I went. As a result, they eventually started showing signs of wear. A small part of the fabric covering the cable came loose causing the wires to become exposed (which was fixed with a little glue), the wire mesh from one of the in-ear buds fell off, and occasionally one of the sides would emit a tiny bit of static. Basically the issues weren't big enough of a deal to warrant buying another pair so I emailed V-Moda for an estimate on repairing them.

Within a day, I received a response by Joanna who asked me to send the headphones in (with proof of purchase) for them to check out. I sent them the headphones and within 3 days of shipping them out, basically the day they got them, I received an email from Josh stating my new pair was in the mail. This took me completely by surprise because I was expecting them to send me an estimate on the repair, not replace them altogether for free! Also, their warranty is only for a year and it is only supposed to cover defects, not wear and tear from constant use. Needless to say, I am completely thrilled with V-Moda at the moment for the awesome customer service they provided. Yes, some will probably say this isn't a big deal since they're only a set of headphones but I paid about $90 for them (a far cry from my usual $12 pair) and I really didn't want to buy another set. Also, the set they sent me was the upgraded version that came out after I had purchased mine so I got a better set then the one I had. The entire replacement process was quick, total time from initial email to getting the replacement was about a week, and I'm ecstatic to be using a comfortable set of headphones as opposed to the Apple ones, which tend to really hurt my ears. Thanks for taking the time to read my email and keep up the great work.

Xavier

Very nicely done, V-Moda! It's not a huge deal, but nice to see a company standing by its products.

"The Seven Types of Employees You Meet at Best Buy" [Gizmodo]

On June 5th, 2009, I departed Best Buy after almost 3 years of working there (9/15/06 - 6/5/09). I had only recently become full-time, and I had enrolled in 401k when it was available. After I left, I was told my account wasn't large enough to transfer, and was given a choice: I could either roll it over into an IRA, or receive a taxed direct deposit for the amount, which came to approximately $900.

Having just moved from NJ to TX, putting $900 in the bank would be a great replenishment for the costs of moving, not to mention would cover my first month's rent and other bills while I worked toward getting a steady job. I called Best Buy's "eGo" HR system(1-866-692-2947), dialed the prompts, and spoke with a woman who informed me that, unless I had an account with www.mybbyrewards.com, I wouldn't be able to access my money. What??

Turns out, verifying my home address, phone number, social, and date of birth over the phone simply isn't enough proof that I am who I say I am. If I can't log in to their website, absolutely none of that personal information matters. The rep coolly expressed how sorry she was (I wish I had gotten her name) and offered to send me a password reset. With no other options, I accepted and hung up. "Okay," I thought, "so I have to wait a few days. No big deal, right?"

Yesterday, the password (which had to be mailed to my address in NJ, as they couldn't even update my home address without being able to log-in to that website) was finally received and emailed to me. I went back to mybbyrewards.com, logged in and...no. "There have been too many attempts to log-in and this account has been locked. You will need to request a new password." !!

Understandably frustrated, I called the 1-866-692-2947 HR number to speak with a supervisor. I've read this site for a while and knew not to yell or scream, and also to immediately ask for a supervisor, as the line-level rep probably wouldn't be able to help me. I first spoke with Rosie, who tried to access the account herself and confirmed the "account locked" message. After she took all of my personal information to again verify who I was, she found me a supervisor by the name of Ariel, who also attempted to access the account and again verified that it was locked. From there, it was back to the script: "I'm sorry, but the only way to get in is to have your password reset."

At this point, there doesn't seem to be anything I can do. Thanks to this completely broken system, there's almost a thousand dollars of money - MY money - tied up, and no one seems to be able or willing to do a damn thing about it. The staff at the HR number were quick to suggest that I don't use the website when I get my password, but instead, call a different number and use the password there. Despite my arguments, Ariel seemed to be on auto-pilot as she repeated, ad nauseam, "No one at Best Buy will be able to access your account." I asked her for someone higher than her, such as an Executive Care line or email, but she instead re-routed me to a line that is only valid for active employees.

Patrick wrote back to us Monday with the good news that he finally got ahold of his 401(k) bankroll. Hopefully he doesn't do something silly with it like go investing in the stock market.

(Photo: Vincent J. Brown)

Despite their fancy ads in reputable photography magazines, these Brooklyn-based con artists have been ripping people off for decades: using bait and switch, calling up customers to harass them into buying extra batteries or accessories, leaving threatening voicemails, overcharging credit cards, and charging phony "restocking fees".

Following a lengthy investigation, the NY Attorney General's office announced yesterday that it has closed down two stores completely, fined all seven businesses a total of $655,000 plus $100,000 legal fees, forced the remaining stores to overhaul their work practices, and is monitoring the businesses to ensure they comply with the law.

According to the AG's office:

Once an order was placed, the companies would call consumers and try to sell them additional or "upgraded" merchandise at inflated prices. If the consumer refused to purchase the additional merchandise, the companies would cancel the sale or claim the item was backordered for months. If the consumer did agree to purchase the additional merchandise, the companies would send them lower-quality merchandise than what was promised, or merchandise that the consumer never ordered in the first place. When customers tried to return the items, they would either be denied or be slammed with undisclosed fees.

All of the companies further limited customers' ability to return merchandise by requiring them to speak to a live customer representative during limited business hours, and then refusing to answer those telephone calls.

If you believe you were ripped off, submit a claim to the New York State Better Business Bureau through December: (212) 533-6200.

Bait and switch: Online electronics stores caught in fraud [cnet] (Thanks to Joel!)
(Photo: SoulRider.222)

If you recall, I wrote a confessions regarding RadioShack's sales practices back in 2008. I feel an update is now in order. It may also have something to do with me going to college soon and no longer needing a job that requires deceiving the customer daily to pay the bills—but I digress.

Should you go to RadioShack for a purchase, here's some tips to remember.

#1 — ALWAYS, ALWAYS, open the box and check the merchandise in store if possible.

RadioShack stores sell returned merchandise all the time. Sometimes it's cordless phones that have sold and come back to the store 4 times, or it's an antenna that's missing a remote (not that the staff will tell you), or it's a cell phone that a manager wants sold.

The main reason RadioShack hocks used merchandise as new is due to how the returned merchandise is sent to the RS refurb center. The returning store receives no credit if the product is damaged or missing an included part. Sending in distressed merchandise results in the loss being charged against the manager's quarterly bonus—so a situation exists where store management has incentive to resell used products as new.

So, open the box and test the product in store before leaving. Be sure to check the bubble-packed product for taped corners or stapled ends.

#2 — Cell phone deals.

RadioShack has a price match policy for its corporate stores. Here's the fine print, so when the manager/salesman tries to dodge the rebate you'll be ready.

The actual ad must be present,and on paper. No photocopies or duplicates.

No mail in rebates can apply, although instant ones do.

Don't be afraid to bring in several favorable ads. You can only use one per phone, but this way if one flier is disqualified you can still use "the backup."

The way modern phone programming works, there's no reason why the cell phone you just bought shouldn't be making calls before you leave the store. While it's normal for data programs to take longer to work, if your new phone isn't making calls before you leave, ask why. Don't buy the salesman's stock line of 1-4 hours provisioning time. Phones I sold that didn't work the day I sold them generally stayed broken until the customers returned them the next day.

Sometimes there are network outages, but confirm this by asking for the store's Sprint/ATT demo to see.

#3 — Keep the receipt.

RS's customer research system sucks. Plain and simple. Unless you bought a service plan (and I sure hope you didn't fall for that hustle) or agreed to sign up for email registry with a name and address, the ticket is essentially lost after 90 days. Plan accordingly when filing the receipt.

---

And here's some new sales hustles to watch for:

RSAP card

You don't want a credit card with a 23% APR, do ya? And no, it's really not free for 90 days or a year with purchase-that lovely APR is still charged against the balance,and if you're one millisecond past 90 days or a year all that accrued interest charged over that timeframe is added to the balance.

Personal Data

A lot of stores are catching heat for not meeting credit metrics, so any request for your name, drivers license, or SS# should be qeuried immediately. Some stores have lied and ran customers credit info illegally to keep corporate off their back,so be aware.

E-mail capture

Pretty harmless, just make sure you use a spam box so you can get the occasional coupon for $10 off a purchase over $40.

Wireless Pitches

DO NOT HAND OVER YOUR PHONE. Headquarters was getting real crafty teaching psychology via a method about asking a question about your cell phone battery, and using that to twist the conversation into a cell phone discussion. If an associate asks about how your cordless phone,or cell phone battery works make it clear right there you're not buying a phone from them. That'll kill the pitch, and the look on the salesman's face will be well worth the trip to the Rat Shack.

Service Plans

Very simple. MFR warranty on everything in the store usually lasts a year except on Apple products. It's not smart to pay RadioShack an extra $3.99+ for something that came with the product. Even headphones are better off replaced at the mfr level than at RadioShack, because all the store does is send the broken product to.. drum roll please... the MFR! All the service plan pays for is the right to use RS's glacially slow repair process.

DTV Antennas

Before going into the shack to buy an antenna, verify whether your old antenna works well first with the box. I've found that the indoor antennae sold by the shack with 'amplifiers' and 'multi-gain' switches suck so badly a set of 1982 era rabbit ears get better reception. Steer clear of indoor antennae period, and search elsewhere if your current set are broken. Outdoor antennae have worked a lot better, but again make sure to have your current set re-aimed to your DTV broadcast antennae in whatever major city is near you before spending $$ on new equipment.

---

Last tip—if you're buying a big-ticket item, be sure to ask for the store's district office direct line. If something goes sideways and the manager won't fix the situation, asking for it then will tip the manager off that you mean business, so they'll obviously play damage control—which won't be in your favor. So request the number at the counter before there's a problem, and if you run into problems call it directly. This will catch the moronic store staff off-guard, so there will be no time for lies or damage control on the part of the store staff.

This should help save some Consumerist readers any headaches on dealing with the rat shack. I'm glad that after more than a year I'm finally free of the joint.

We asked D. how you can identify whether a store is corporate owned or not:

Check the top of the receipt. A corporate store will have a store number printed at the top in 01-6XXX format,although the 6 can be a different number too. Products sold from corporate stores can be returned/exchanged at franchise side locations,and vice versa.

RELATED
"6 Confessions Of A Former RadioShack Employee"
(Photo: strangelv)

In the TV spot titled "True Stories," a Best Buy associate relays a story about a customer who calls with some very specific questions about a TV. Turns out he's calling from a Walmart. Her response: "You're obviously calling us because we're knowledgeable. We've got the price match guarantee, so why don't you come on in?"

That, says Barry Judge, chief marketing officer, is a perfect illustration of Best Buy's point of differentiation. As the electronics retailer joins the ranks of those trying to convince consumers its prices are in line with Walmart's, highlighting the price match guarantee was deemed essential. Target has been fighting a similar battle for months, though it has yet to mention Walmart by name in any advertising.

This raises the inevitable question: what kind of person has the Best Buy TV department on speed dial?

Best Buy Challenges Walmart on Employee Smarts [Advertising Age]

Phil writes (to Best Buy):

I called the Best Buy store in [redacted] on 6/10 looking for a Mini-SD flash card. I specifically asked for Mini-SD and explained that I did not want a Micro-SD card. I need a second one for an older model camera. The person who answered the phone assured me twice that they stocked both Micro and Mini SD cards. Great, I thought.

I get to the store today, and no one knows what a Mini SD card is. Two employees assure me that I'm looking for a Micro SD card. I explain I need a Mini SD card for a camera and NOT a micro SD. The employee continues to tell me that they only have Micro SD cards and that he's certain the camera I am using needs a Micro SD card.

This is not true, and I'm a little worried that someone at a tech store doesn't know BASIC differences with flash memory. I'd expect this at Kmart or WalMart, but the Best Buy employees, so I thought, would know something about the products they sell. I also did not appreciate being told I was looking for the wrong card when I was not. The employees obviously don't know their merchandise.

Just wanted to know I usually have no problems at best buy, but I was really upset with my experience today. It's my favorite store for electronics. But after I walked out this morning, I went on Amazon and in 30 seconds got EXACTLY what I needed for $4 new.

I am disturbed that your employees at the [redacted] store tell customers they have products in stock when Best Buy doesn't carry them. I repeated my request to confirm the product and was assured that they had it. I wasted time looking for a product that best buy doesn't have. I also do not appreciate the employees trying to convince me that I'm looking for something that I don't want to buy.

Perhaps I'll stop going to Best Buy for things that are readily available online without the headache.

That doesn't sound like a bad idea, Phil. We're glad you stood your ground and refused to buy the wrong format.

(Photo:epicharmus)

1. We have no formal training in the field of consumer electronics.
2. We make little off the big-ticket items, so we smother you with accessories.
3. There are times when you should purchase extended warranties.
4. It doesn't matter whether we make commission, we're all equally pushy.
5. No receipt? No problem!
6. We offer expensive services I think a 12-year-old could perform.
7. Forget what your parents taught you—complaining usually gets you what you want.

Check out her explanations for each of these at the blog. I'm not sure I agree with all of these items, but the theme of general incompetence and overchargitude certainly apply to every big-box electronics store I've visited.

7 things electronics salespeople won't tell you. [Crave]

(Photo: agentpercival)

The third rendition of Apple's "it" device, which the company revealed Monday at the WWDC Keynote, comes out June 19. A 16GB model will cost $399 ($199 if you're eligible for a subsidized upgrade with an AT&T contract extension) and the 32GB 3G S will be $499 ($299 with an upgrade). Plus an $18 upgrade fee. Good news for holdouts who don't need the freshest iPhones in their pockets: the suddenly obsolete iPhone 3G has dipped to $99 with a subsidized upgrade.

Unfortunately for Verizon customers, Apple said nothing at the press conference about breaking the AT&T exclusivity shackle that remains in place until next year.

Apple's speedier, feature-rich new iPhone 3GS [Consumer Reports]
iPhone 3G S First Take [CNET]

The state and Better Business Bureau received over 2,000 complaints about Conn's in the last three years alone.

In complaints, according to the state, consumers said Conn's delayed repair appointments for weeks or months, didn't repair items properly, ignored calls, and ultimately, refused to give refunds or replace the defective products. Often, customers who paid between $100 and $1,000 for a warranty received used, refurbished goods instead of new products, the state claims.

In complaints, according to the state, consumers said Conn's delayed repair appointments for weeks or months, didn't repair items properly, ignored calls, and ultimately, refused to give refunds or replace the defective products. Often, customers who paid between $100 and $1,000 for a warranty received used, refurbished goods instead of new products, the state claims.

The state seeks civil penalties for every instance of deceptive sales practices, but one wonders whether this will dissuade the company from its evil warranty-hawking ways.

Texas AG says Conn's didn't honor warranties [Houston Chronicle] (Thanks to everyone who sent this in!)

(Photo: ashi)

"DMN reporter tests RadioShack's gadget trade-in program; RadioShack tests reporter's patience" [Dallas Morning News] (Thanks to Trevor!)
(Photo: Robbert van der Steeg)

He writes, "Come on, why print on the card that it expires in July 2009 when it couldn't possibly last beyond April 2009? I guess I'm lucky, at least I haven't gotten a bill for ongoing card maintenance. Anyway, that's the last item I ever buy from Creative Labs, I hope the rebate tactic was worth losing a customer."

If you take advantage of a Creative Labs rebate, use it immediately. Or better yet, don't take the bait the next time Creative dangles a rebate offer in front of you. They're not kidding about it being a "Creative rebate."

Click the image for a full-size version.

(Photo: cpchannel)

What's so great about B&H? Try dirt-cheap prices, uber-knowledgeable salespeople, and a sense of trust the store cultivates with its customers. Says Joel:

The most amazing thing is that I have often gone into B&H to purchase a specific product, only to be talked into something cheaper. For example, once I went in to buy a field video monitor to use for some interviews I was conducting. I expected to pay $600 until the salesperson said, "Why don't you just get one of these cheap consumer portable DVD players? They have video inputs, they work just as well, and they're under $100." This was no accident. "The entire premise of our store is based upon your ability to come in, touch, feel, experiment, ask, and discuss your needs without sales pressure," B&H's website says.

Go visit, if you can. They're on 9th Ave and 34th Street in New York, but don't go on Friday because they're closed for Shabbat.

Why Circuit City Failed, and Why B&H Thrives [Inc. Magazine]
(Photo: F33)

Such a merger could have colossal implications for gamers. An Apple-controlled EA could tip the handheld game market toward the favor of the iPhone/iTouch, keeping its handheld titles off its rivals, Nintendo's DS and Sony's PSP. Apple could shut Microsoft out of Xbox 360 exclusives. Steve Jobs could name himself the next Madden cover athlete.

Time will tell if Apple's bite matches Adami's bark.

Facebook's 'Porn Cops' are Key to its Growth [TheStreet, via Kotaku]
(Photo: brokentrinkets)

In a letter to Panasonic consumer affairs division manager, Michael Marino, Jr., he explained the situation:

The Panasonic DMREZ47VK is an inherently defective product. The problems I am having with the unit, which I will describe shortly, are duplicated by virtually everyone else who owns the model. A quick glance through the product reviews on Amazon.com, and other sites bears this out. Apparently, this was a poorly designed product that received little quality control. The problems consist of regular and random unit freezes, requiring me to physically unplug the unit from the wall to regain function, and an annoying habit of Mode indicator overlays randomly appearing in the picture (eg, "Play") while viewing a DVD. These problems are extremely annoying, and completely detract from my expected use and enjoyment of the device. Quite simply, I did not spend $250 for a device that works properly occasionally.

During the course of my ownership, over the past year, I have contacted Panasonic on numerous occasions in an attempt to either correct or resolve these problems. Unfortunately, the summation of these attempts has been a complete waste of my time, and lack of concern for your customer.

I have wasted hours on hold.

I have endured several indecipherable phone calls with foreign support agents

I have attempted several firmware updates, that do not address the issues

I have written in several e-mail support inquiries that went unanswered

I have written in several e-mail support inquiries that were finally responded to a month later with a useless canned reply

And basically, I have reached the end of my patience with this company and this product. Quite frankly, I have endured far more than any customer should be expected to endure.

This problem isn't unique to David. Online reviews of the same product recount similar problems. Most of the four-and five-star reviews on Amazon come from customers who recently purchased the appliance, and long-term owners with defective units use the reviews section to vent. Their problems are similar to David's. From the one-star reviews:

I purchased this player last summer, but didn't realize it had problems until I tried to set it up to automatically record which was about 2 months after I got it. When it automatically recorded 3 shows but not another automatically, I just assumed I set it up wrong. I set up to record again being very careful. I still have problems. Some weeks it will record a show and other weeks it won't record the same show.

Although this unit has a great set of features & capabilities, it has so many fundamental problems that it's given me nothing but headaches. I even bought a second unit to compare & found that it had *the same problems*! This is not a case of me getting unlucky & buying the 1 bad manufactured unit—these are flaws in the software & programming itself!

Many calls to Panasonic customer service (after looong waits & painful menu navigation & customer service reps who were not very helpful) resulted in 2 firmware upgrade discs being mailed to me in 8/07 & 11/07. They didn't fix the problems.

My unit is now at the local Panasonic authorized repair center, awaiting new parts, which will leave me without my player for about 3-4 weeks in total, if I get it back when they claim it will be done.

Will new parts fix a fundamentally flawed device when firmware upgrades didn't? Maybe. Panasonic has offered a similar repair deal to David, but he's had enough. Instead of waiting a month or more to see whether his problems might be repaired, he wants a new VCR.

Customer Reviews: Panasonic DMR-EZ47V Up-Converting 1080p DVD-Recorder/VCR Combo with Built In Tuner [Amazon]

Radio Shack Employee Arrested for Punching Customer [WEAU] (Thanks to lilboisleepy!)

http://dealnews.com/Airlink101-Digital-to-Analog-Converter-Box-for-0-free-shipping/292372.html

I recently came across this ad for a digital converter box which uses language to suggest that it has HDMI capabilities. They suggest this by saying that they will ship a free hdmi cable with purchase of the unit.

What makes this a concern is that there are many people out there that are looking for digital converter boxes with more capabilities than RF out. There are many LCD televisions out there that do not have an ATSC tuner thus they would need another way to receive digital broadcasts via sources like DVI or component.

What Meritline is doing is cashing in on this unending quest by a small group of people by including the words HDMI with search terms for the converter box. Upon inspection of the box, it has no HDMI output capabilities.

The deal circuit has picked up the item and results are at the top of google searches.

We don't know if Meritline is doing this intentionally or not, but be sure to read the specs of any converter box closely before buying one.

I don't buy a lot of electronics online, so I'm not too aware of what to look out for when it comes to scams.

I just bought a cellphone off of ebay and it was totally a steal: a "new" LG Chocolate off of a seller with near perfect feedback, thousands of past customers, had a great page that guaranteed a 30 day warranty, begging to "contact seller before leaving negative feedback" etcetc. Quick and courteous customer service.

After a little shipping dilemma, I finally got my phone two weeks later, and right off the bat I identified that it wasn't in the same type of box you'd get if you bought a real phone off of the verizon dealer. not a big deal, or so it seems. Well this "new" phone, has a few light scratches on the inner screen, nothing to worry about in my opinion, besides that it was essentially new looking and worked fine. In the battery compartment though, the little dot with the fine red lines to detect whether its been dropped in water- it's just white. So either someone just peeled it off, or it's been dropped in water. but my phone works...? I brushed that off.

Now it's been two days since I've had it, and I'm really enjoying it. But when browsing through the mobile web I look at "MyLinks", and this is what set me off: a bunch of spanish sites I've never visited, and shocker-porno sites. As I am aware, the MyLinks are saved in the phone's memory rather than on the virtual web, not to mention no one in our plan can read Spanish to save their lives. So putting these all together, this phone has been used, or refurbished. Not to mention the non-lg charger that was part of the package just shattered in my hand upon first use.

Sell the Consumerist has quite a few stories of other users finding porn or such in their supposedly "new" merch. What do you guys think, is all of this worth returning because essentially I've been deceived into buying a used phone marketed as new?

Uh, yes. YES. Are you just trying to tease us? The box wasn't an official LG box, the charger wasn't LG-branded, the phone is scratched, the water damage sticker is missing or damaged with water, and there is evidence on phone's memory that it's been used by someone besides you.

Read up on eBay security here. To initiate a claim, go here: resolutioncenter.ebay.com

The Minneapolis Star-Tribune says that the report was based on conversations with the retailer and has not been confirmed or denied by Best Buy.

"What Circuit City did was a pretty big blunder," said Brady Lemos, who follows Best Buy for Morningstar. "They let their most experienced sales staff go, and it was clear that people who worked there weren't interested in helping you. ... Best Buy must be careful not to do anything to that degree."

Best Buy slashing wages, eliminating jobs in stores [Star-Trib] (Thanks, Amanda!)
(Photo:penner42)

If you can come up with $6.86 million by May 6th, you can fight for the site in an auction, and then maybe sell your own homemade trinkets on circuitcity.com.

"Circuit City wants to sell Web site for $6.5 million" [Richmond Times-Dispatch] (Thanks to globalman!)

RELATED
"CircuitCity.com Threatens To Rise From The Ashes"
(Photo: thivierr)

CircuitCity.com is also temporarily closed, although we anticipate the website will reopen in the coming weeks. Please check back for updates.

What's this? Circuit City may rise again? Well, probably not, but perhaps some poor fool has plans to buy the brand and open a web-only store— similar to what happened with CompUSA.

Only time will tell.

(Photo: qnr)

Here's Doug's story:

I bought a TV at my local Wal-Mart store this morning. I had looked up the TV on Wal-Mart's own website, where the price was $367. They offered free "site to store" shipping where they send it to my local store at no additional cost.

I stupidly assumed that the website price and the store price would be the same. The TV wasn't on display, so a store associate had to go find it in the back somewhere. She brought it out and didn't tell me the price, but went ahead and rang up the purchase. At this point, I should have checked the price, and it was my fault for not doing so, but after I left with the TV I realized they charged $397 for it.

I immediately went back to the store and went to customer service. The easy thing to do would be for Wal-Mart to match their own website price and give me back $30. So I asked about the possibility of that, but they said no. So I brought the TV back inside and returned it, less than 30 minutes after I purchased it. I just could not believe that they won't match the Wal-Mart.com price, since I could order the same TV right now for $367, have it shipped to the same store for nothing, wait 7-10 days to get it (even though the same item is in stock at the store already), and then pick it up from the same customer service desk.

Why go through all that when they could just give me $30 and be done with it? I would have my TV, they would have their money...the same amount of money Wal-Mart.com will get if I do it the round-about way.

Doug emailed Walmart corporate and here's their response:

Thank you for your inquiry regarding the price difference between individual Wal-Mart stores and the price difference between Wal-Mart Online and Wal-Mart Stores. With regards to individual stores, each store is required to manage its own inventory; therefore prices may vary from store to store. Our store managers are given the freedom to lower a price to clear out an overstock item, to reward customers with an in-store sale, or to compete with local merchants. It is not Wal-Mart 's policy to price match our own stores since we are not in competition with ourselves.

With regards to different prices between Wal-Mart Online and Wal-Mart Stores, the merchandise and prices available on our web site do not reflect the merchandise and prices available in our stores. Our stores will not match prices with our online store (or other online stores) because we do not consider them to be in competition with our retail stores. Currently, Wal-Mart Online does not have access to store inventory lists or price lists.

If you would like more information on pricing policy, you may contact your local store management or visit our website at walmartstores.com.

Thank you,

Wal-Mart Customer Relations

We suppose they would have a point... if the TV that Doug was trying to buy had actually been on display at the store in question. It wasn't. It was just sitting in the back... wait, we're thinking about this too much.

Let's concentrate on being helpful and suggest some other retailers that might be interested in selling Doug a television. Where do you like to buy your TVs?

(Photo:genebob)

First, here's what's cool about the service. It makes comparing the "real" value of a sale price easy. It has an uncluttered layout (fig. 1), and the ratings badges are simple and clear. The "Price Trending" data is a terrific way to quickly see whether or not the store is really offering a good deal. You can filter results by score, by date, and by store, to help make searching more useful.

Now here's what needs work.

The search interface is far too simplified for some of the categories. Check out your filtering options when you type "pc" in the product box (fig. 2). As you can see, there's no way to set up categories for operating systems, processor speeds, hard drives, or any other specs that matter to someone shopping for a PC. We're optimistic that this will be improved as the site grows, based on the detailed filtering they offer in some categories (LCD TVs, for example), but currently it casts too wide a net for some searches.

While you can filter searches by manufacturer if you set up a custom product category, you have to do it using the interface shown in fig. 2. In other words, you can't filter out manufacturers once the search results are displayed.

It looks like, as of now, they're only pulling data from 14 stores, but that list includes the big players such as Amazon, Walmart, Best Buy, Buy.com, Newegg, Geeks.com, and J&R. We want more stores. We want every store. We know this is unlikely to happen but it's what we want. And it would be nice to see shipping included in the total price, a la DealRam. (We also want more product categories, but Gazaro says it's already addressing that.)

Finally, Gazaro focuses solely on comparing the current price to past prices, so the deal it ranks highest may be for a subpar device that no savvy shopper would touch. In the Digital Picture Frame search, for example, the frame that ranks a 9.7 score (almost perfect) is an off-brand, low-rez frame with a mediocre rating from Amazon customers.

Update: Gazaro notes that "the deal score (e.g. 9.7) factors in a bunch [of] market-oriented indicators as well," not just pricing history.

Bottom line: You'll still have to do your own research on quality and usability, but Gazaro is a good way to provide more insight into the price.

Gazaro.com

tking says:

My problems started when my Dell Vostro 1510 laptop wouldn't keep the power cord plugged in without extra effort. The first tech support person was more interested in replacing the power supply, I was told not to worry about the plug. The second request got more attention after I also uploaded a picture of the power jack now missing the center plastic part to let them see first hand. They sent a guy to repair it (who didn't seem to know what kind of computer he was fixing when he came). I wasn't home at the time and when he was done told my wife he left it in sleep mode. After he left she went to wake it up and start using it to update the budget and do a little online shopping.

That's when she started to realize that something was wrong. She couldn't get it to boot up… sometimes the screen would flicker, sometimes nothing at all. I picked up the laptop during my lunch break and took it back to work to look at it. I managed to use a Windows system restore to get booted, but required another service request to figure out all the fun new warning messages I was receiving. That support person was able to get that part straightened out (somewhat, it still seemed a bit off) so I shut the laptop down and took it home with me at the end of the day.

After that, the next fun time started when I wanted to use the laptop to work on some emails… it wouldn't go more than a few minutes at a time without rebooting, sometimes it would just go black and freeze. So the second support request of the day (and 4th overall) I ended up running diagnostic test after diagnostic test. The next new fun problem came up when during the tests I started getting yellow vertical lines down the display . Now they say I need another new motherboard and now a new video card.

To sum up… 4 tech support requests and 1 on-site visit (so far, plus 1 tomorrow).

The math looks like this:

1 bad motherboard + 1 Dell repair = 1 more bad motherboard + 1 newly created bad video card + 1 more Dell repair

I'm a little afraid the next repair will result in missing the display or keyboard or something altogether.

Oh dear. Well, it seems that you've got the situation in hand, despite the tragic results.

We've all got our fingers crossed for you. Right guys? Cross your fingers for poor Mr. tking, damn it.

Good luck.

Extended warranties are a huge source of profit for the store — and (according to our sister publication Consumer Reports) a big waste of money for consumers.

CR says:

When you take out an extended warranty, you're essentially making a sucker's bet. You're gambling on a series of events happening at precisely the right time under precisely the right circumstances. These include:

* That a product will break exactly after the manufacturer's warranty has expired and precisely when the extended warranty is in effect. Sure, it's possible, but unlikely.
* That the cost of the repair will exceed the cost of the warranty. Surveys of Consumer Reports subscribers reveal that the costs are fairly close most of the time.
* That the product is likely to break in the first place. According to our data, most products are quite reliable and have not broken during the first three or four years of ownership.
* That you're going to want to have the product fixed. Perhaps surprisingly, many readers surveyed said they didn't bother seeking repairs because they desired a replacement product that had either new features, more power, greater flexibility, more advanced technology, or improved energy efficiency.

Now that that's out of the way, here are some ways to protect yourself when making a major electronics purchase.

1) Pay with a major credit card that offers purchase protection and extended warranty protection.
You may not like credit cards. In fact, you may hate them. In that case, consider a charge card. For the small annual fee, a charge card will offer you many of the same warranty protections that Best Buy and it's ilk are trying to sell you. If you eventually enter into a dispute with the store, it pays to have someone on your side. Do you think Best Buy is going to argue with itself on your behalf just because you bought a warranty from them?

2) Open the box before you leave the store and inspect the item. If you find old phone books or a severed head instead of your new laptop, it will be easier for everyone if the store knows that there's no possibility that you were the scammer/decapitator. If the item is broken, your warranty might not cover the "accidental" damage. If you don't inspect the item in the store, they will assume that you are the guilty party and no amount of arguing will convince them otherwise.

3) Check to make sure the serial number on the item matches the serial number on your receipt. Sometimes people switch broken items for new ones and return the box. If your receipt doesn't match the serial number of the item, the store will assume that you are the one who switched it and the manufacturer may void your warranty. Again, do this before you leave the store so there can be no question about it.

If you are concerned about not having enough money to fix the item after the manufacturer's warranty is expired — ask the store what they charge for an extended warranty and put that amount of money in your savings account. If the item never breaks, you've still got the money —plus interest. If it does break, you'll have money for repairs.

For more in depth information about how to specifically protect yourself from being sold a "box full of crap," (bathroom tiles instead of a hard drive, a disc that says "redneck shit" instead of the game you wanted, etc. click here.

(Photo:wiretap studios)

From This Week In Consumer Electronics:

In addition to Ritz Camera stores, the chain owns Wolf Camera, Kits Cameras, Inkleys and the Camera Shops, as well as the Boater's World chain. The company's lenders had ordered it to boost reserves, and the company's boating chain had been hampered by previously rising gas prices, Ritz said in an affidavit. The chain also said it was pinched by a reduction in photo finishing revenues.

Update: A reader, Karl, writes in to point out that Ritz Interactive, the online component of Ritz, is not included in the bankruptcy and will operate as usual. On their press release they say, "We will continue to work with them as a distributor, but we source through multiple distributors, so we have other options."

"Ritz Camera Files Ch. 11" [TWICE] (Thanks to Klay!)

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All of our Ritz Camera posts
(Photo: goosmurf)