<![CDATA[Consumerist: Pricing]]> http://cache.gawker.com/assets/base/img/thumbs140x140/consumerist.com.png <![CDATA[Consumerist: Pricing]]> http://consumerist.com/tag/pricing http://consumerist.com/tag/pricing <![CDATA[ GM's 'Employee Pricing' Sales Mean Big Discounts On Cars Right Now ]]> GM is desperate to boost its sales this month, so the company is offering some steep discounts under its "Employee Pricing" sale. The car blog KickingTires is covering the discounts and points out that "almost all of the prices are around 10% off, which is big in terms of car sales." For example, you can save $9,000 on a Hummer H3. Of course, you'll spend that much on gas for it in the first week, but there are other options as well, like Saturns, Chevys, and even the 2008 Corvette Z06 (which we mention separately because KickingTires says powerful sports cars are usually exempt from this sort of sale, but not this time).

Maybe you should tap into your home's equity and buy a couple while they're so affordable! Ha ha, we kid.

"Incentives: GM Employee Pricing Sale" [KickingTires]
(Photo: Getty)

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Wed, 20 Aug 2008 19:16:29 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5039724&view=rss&microfeed=true
<![CDATA[ Target's "Buy Two And Save" Speedstick Deodorant Deal Stinks ]]> This is now our third, (yes, our third) post about "buy two and save" or "special value" deodorant two packs at Walmart and Target. This lovely example comes from Tucson, AZ.

Reader Roberto says:

This past August 6th, I was in one of my local Target stores (Craycroft and Broadway) in Tucson, Arizona. I snapped a picture of a “buy two and save” item that I thought you guys might like. The difference is only a five cents, but it’s still more expensive to buy the twin pack of deodorants instead of two.

From now on "buy 2 and save" really means, "pull out your calculator."

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Tue, 12 Aug 2008 10:55:05 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5035997&view=rss&microfeed=true
<![CDATA[ Walmart's "Buy 2 And Save" Old Spice Deodorant Deal Stinks ]]> Quick, what's 2 x 2? Did you get 4.32? No? Then you should be able resist Walmart's "Buy 2 And Save" Old Spice "special."

Reader Austyn, who found the deal at the Layton supercenter in Utah, adds:

Great to know if I go to Walmart I can "Buy 2 and Save!" a grand total of -32 cents.

This isn't the first time we've seen stores futz with unit pricing to screw careless consumers. If you see "Buy 2 And Save," slow down and look for the unit price.

PREVIOUSLY: Target's Degree Deodorant Pricing Scheme Rewards Those Who Pay Attention
Target: Buy 2 And Save! Sort of!

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Sun, 10 Aug 2008 09:10:06 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5035189&view=rss&microfeed=true
<![CDATA[ Kraft is making money by raising prices. ... ]]> Kraft is making money by raising prices. Forbes reports, "Kraft said price increases, which were a response to rising commodity costs, accounted for more than 7.0% of the revenue gain." [Forbes]

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Mon, 28 Jul 2008 13:59:29 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5030055&view=rss&microfeed=true
<![CDATA[ Mystery Popcorn: AMC Theaters Turns Off Screens With Concession Stand Pricing ]]> Care to guess how much your popcorn will cost? That's what reader Gabriel had to do when he saw The Dark Knight the other day.

Last night, we went to see The Dark Knight at our local AMC. Since I bought the overpriced tickets, my cousin agreed to buy the overpriced snacks.

When we stepped up to the concession stand, however, we weren't sure just how overpriced the snacks were because there were no posted prices. AMC had replaced the simple menus with fancy flatscreen tv's. Most of the screens showed combo meals or their incredibly annoying flim-guy diving into popcorn. Where there should have been clearly labeled prices for individual products, however, there were only blank screens. The theater had turned those screens off.

Um, that's a little shady, but they might have just been having technical difficulties. We suppose that's one of the awesome perks of having useless flat screen tv menus.

Then again, maybe they did get tired of people skipping the combo meals to save money. Who knows? Nothing surprises us anymore, sadly.

It's extremely difficult to report this sort of thing to AMC corporate (in our experience, they always forward the complaints back to the manager you're complaining about), so if you want to report this, you're probably going to have to call your department of consumer affairs, your state's attorney general, or perhaps your local government.

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Fri, 25 Jul 2008 10:29:20 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5029074&view=rss&microfeed=true
<![CDATA[ AT&T Will Roll Out Tiered Internet Access In October ]]> If you stream movies or other high-bandwidth content and you're an AT&T customer, get ready to pay more later this year. AT&T will introduce tiered Internet access packages this October, said one of their executives yesterday at an FCC hearing.

"When AT&T provides broadband service by speed, it will do so in discrete, non-overlapping tiers," Quinn said in written testimony. "We will strive to provide service within the speed tier purchased by the customer and, if we find that we are not providing service within the ordered speed tier, AT&T will take action either to bring the customer's service within the ordered tier or give the customer an option to move to a different tier."

There's actually no word on pricing yet, but we're going to make a bold, brave prediction that you'll pay more than your current package for the better tiers.

"AT&T To Create Tiered Internet Access For Subscribers" [CNN Money]
(Photo: Getty)

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Tue, 22 Jul 2008 13:13:51 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5027757&view=rss&microfeed=true
<![CDATA[ Target's Degree Deodorant Pricing Scheme Rewards Those Who Pay Attention ]]> Gavin wants to know what's up with Target's deodorant pricing.

Can you explain to me Target's bulk pricing on their Degree deodorant? As you can see in the attached picture - I could buy one deodorant for $1.82, or a two-pack for $3.89 from my local Target here in Chicago! Am I paying for the plastic they use to keep them together? Neither one is on sale, this is their regular pricing.

This is either Target trying to take advantage of people not paying a lot of attention and fairly assuming that two together will be cheaper than buying two individually, or just bad pricing!

People write us all the time about Target doing this with all sorts of products. We're pretty sure they're banking on you not paying attention.

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Fri, 18 Jul 2008 13:33:51 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5026512&view=rss&microfeed=true
<![CDATA[ Starbucks Charged Me Extra For The Vanilla In My "Vanilla Latte" ]]> Let's say, hypothetically, that a regular latte at Starbucks costs $2.65. Let's say that there's a separate menu item posted called "Vanilla Latte" and it costs $2.95. Let's also say that a regular latte with "syrup" (vanilla, for example) is $2.65 plus $0.30, or $2.95. Why then does a "Vanilla Latte" cost reader Jayne $3.25?

Jayne says:

On two different occasions, I have visited a particular Starbucks and ordered a Vanilla Latte, priced at $2.95. Twice now, I have been charged an extra $.30 for the vanilla flavoring, bringing the price of my $2.95 drink up to $3.25.

The first time, I let it go, thinking it was a simple mistake and hey, it was only $.30. But then, the same thing happened today. I politely asked the cashier why I was being charged extra for the vanilla in my Vanilla Latte (a Vanilla Latte is a separate menu item, priced exactly $.30 higher than a plain latte with no flavor). The cashier looked at me as if I was crazy and said, "Well ma'am, you ordered a Vanilla Latte", as if that was supposed to make it all clear. I explained that had I ordered a plain latte and asked for an added shot of vanilla, I could understand the extra charge. But, the cashier was having none of my logic. I asked for a manager and when I was told that one was not available I gave up, sensing this was an argument I wasn't going to win.

Think about how many people go to Starbucks on a daily basis for their drink of choice. Now, imagine that Starbucks overcharges each and every one of those people, just $.30 or so, each time. How many of those people do you think would notice or complain? Starbucks is probably making a killing off of their regular customers who just swipe their cards or fork over the cash without a second thought. Just as a warning, if it happened to me twice in a week, it might be happening to others out there as well. Make sure you're being charged for exactly what you ordered!

We think that if it says "Vanilla Latte $2.95" and you order "Vanilla Latte," you should get it for $2.95.

If a store isn't charging you the posted price for what you've ordered, you should report it to their corporate headquarters, and if they don't take care of it, your attorney general. You may be thinking, "There's no way our attorney general will give a crap about me being overcharged $0.30 a few times." You're probably right. However, you should know that San Diego's AG busted Baskin Robbins for shorting people on their so-called "pints" of ice cream, so you never know what will interest an AG...

(Photo: Travelin' Librarian )

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Fri, 18 Jul 2008 12:28:14 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5026493&view=rss&microfeed=true
<![CDATA[ Coca-Cola: Expect Higher Prices After Labor Day ]]> The U.S. Coca-Cola market just isn't what it used to be — bottler Coca-Cola Enterprises' profit fell 23% due to commodity costs and sluggish U.S. sales. The solution? Raise prices. You can expect battled Coke to cost a little more after labor day.

Coca-Cola Enterprises, which has about 80 percent of the United States market for Coke, said it would raise prices after Labor Day because of higher commodity costs and declining American soda sales. It said prices would go up by a percentage in the mid-single digit to high-single digit range. Bottlers set prices for retailers like grocery stores.

Hey, at least they didn't change the bottle size, right?

Biggest Bottler of Coke Plans to Increase Prices [NYT]
(Photo: balmes. )

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Fri, 18 Jul 2008 10:59:31 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5026488&view=rss&microfeed=true
<![CDATA[ Grocery Shrink Ray Hits White Rain Shampoo, But It's Still "33% More" ]]> Reader Luke noticed that the grocery shrink ray mercilessly zapped his bottle of White Rain shampoo— but mysteriously left the "33% more" label untouched. 33% more than... what exactly?

Luke says:

I've been using White Rain shampoo for years. It's in every Walgreens in the nation, and it is the cheapest shampoo ever. It's a dollar a bottle. It's always been a dollar a bottle. Ask anyone. It's also always been in a 590 mL bottle. But now they changed it to a 532 mL bottle. They still insist it's "33% MORE" than something.

Well, it certainly isn't 33% more than it used to be.

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Wed, 16 Jul 2008 11:59:58 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5025827&view=rss&microfeed=true
<![CDATA[ P&G Will Raise Prices Up To 16% On Products Such As Tide, Head & Shoulders, Etc. ]]> Procter & Gamble has announced that you will pay more for your Tide and Head & Shoulders and all their other consumer products. P&G is raising prices by as much as 16% on "fabric, home and hair care, bar soaps, and health and shaving products." P&G is the manufacturer of popular brands such as Gillette and Ivory soap.

A P&G spokesperson told the Boston Globe:
"We don't price in anticipation," Fox said. "We only price to recover costs."

The company has already raised prices 4-8% in order to counter the skyrocketing cost of raw materials such as "pulp, used in paper, tallow, an animal fat used in soap, and oil-based products such as plastics."

Oh well, at least they're being straightforward about it! Honesty is better than the Grocery Shrink Ray.

P&G will boost product prices by up to 16% [Boston Globe](Thanks, Jill!)
(Photo: kandh07 )

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Wed, 09 Jul 2008 12:51:57 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5023380&view=rss&microfeed=true
<![CDATA[ Do Not Be Lured Into Target's 2 For $4 Heinz Ketchup Trap ]]> Andrew writes in to let us know that he's started to look more carefully at prices when shopping at Target... and so far it's saved him $0.61 on ketchup...

I was in the grocery section of my local Super Target today and noticed the pricing for Heinz Ketchup. They had a 2 for $4 "deal" for the 32oz bottles (64 ozs total) which I almost just threw right into my cart until I saw the 64oz bottle for $3.39. The exact same quantity of ketchup, but one is $0.61 cheaper. Had I not been an avid reader of this site, I might have been suckered into the 2 for $4 deal without even looking at the prices. Thanks Consumerist! Every penny counts these days, and you just save me 61 of them!

If you spot any deals that aren't really deals, snap a picture and send them to us at tips@consumerist.com.

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Wed, 09 Jul 2008 10:54:38 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5023309&view=rss&microfeed=true
<![CDATA[ AOL Just Wants To Be Left Alone ]]> Please just leave AOL alone! AOL is raising their dial-up internet access prices by $2 for everyone who refuses to promise not to call technical support.

From CNET:

The Time Warner division told subscribers last week that beginning July 27, it would raise its monthly dial-up rate from $9.99 to $11.99 per month. Subscribers who specifically sign up for a plan with limited technical support can keep the $9.99 rate, though, but they won't get phone-based help unless dealing with an Internet connection issue.

Hey, mom? What's dial-up? [CNET]

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Wed, 02 Jul 2008 17:57:39 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5021630&view=rss&microfeed=true
<![CDATA[ Risk-Based Pricing Is A Myth ]]> Credit card companies need to penalize bad behavior with outrageous fees to keep credit affordable for the rest of us, right? Yeah, not so much. Credit Slips blogger and Georgetown Law Professor Adam Levitin argues that risk-based pricing is a myth that credit card companies exploit to escape well-deserved government regulation.

As an idea, risk-based pricing isn't all that bad: consumers pay for credit based on their risk. But with credit cards, only interest rates and late fees are arguably "risk-based."

Interest rates are a terrible way to counter risk. Responsible cardholders never carry balances, so fiddling with their interest rates mean nothing. Kicking consumers with retroactive penalty APRs means that creditors failed to properly assess the risk in the first place; if creditors were truly risk based, they would respond to increased risk by slashing credit lines.

Late fees are equally terrible. Most creditors have three tiers of late fees. It doesn't matter if you're late by one hour or one month, even though the two clearly show different degrees of risk.

Or as Levitin puts it:

Suffice it to say that it is a real stretch to say that credit card pricing overall is risk-based; certain elements of card pricing are partially risk-based, but many are not. Moreover, there is no empirical evidence connecting the advent of risk-based pricing to lower costs of credit to creditworthy consumers or greater credit availability to subprime borrowers. There is a study that correlates late fees and overlimit fees with banks' aggregate cardholder risk, as well as with banks' market power, but there is no research connecting fee levels, which are often one-size fits all, with individual cardholder risk. The putative benefits of risk-based pricing depend on pricing being sensitive to individual level, not aggregate level risk, so that low risk cardholders don't subsidize high risk cardholders.

In any case, the benefits that the card industry attributes to risk-based pricing are explained at least as well by other factors: lower costs of funds explain lower interest rates to creditworthy consumers (issuers’ annual net interest margin has been fairly static for the last two decades), and securitization is at least as good of an explanation for the expansion in subprime lending.

So why do credit card companies pretend to use risk-based pricing? To evade government regulation. Professor Levitin makes a convincing six-point case for the government to lasso creditors with powerful regulations, but we'll let you read the full paper for yourself to see why.

The Credit Cardholders' Bill of Rights [Credit Slips]
All But Accurate: A Critique of the American Bankers Association's Study on Credit Card Regulation [SSRN]
(Photo: Getty)

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Sun, 29 Jun 2008 22:30:22 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5020642&view=rss&microfeed=true
<![CDATA[ Massachusetts Supermarkets Want To Remove Price Tags From Items ]]> A bill is advancing through the Massachusetts legislature that will allow supermarkets to leave off item price tags and instead force customers to rely on electronic scanners spaced throughout the store. Although prices will still need to be displayed on store shelves for most items, you'll have to rely on your memory and your faith in the store's scanner system at checkout. John Hurst, the president of the Retailers Association of Massachusetts, "said consumers will benefit in the form of lower prices and shortened lines once stores no longer need to devote resources to item-by-item pricing." But kjd aa- [thump]

—sorry, we just fell out of our chairs laughing at the idea of a supermarket out there that will heroically pass the savings downstream to consumers instead of profiting directly from it.

The bill’s critics, which include the Massachusetts Public Interest Research Group and the ConsumerWorld.org Web site, say consumers will suffer because they may be forced to wander as far away as 5,000 feet in a particular store to scan an item and check its price. If a retailer opts for the scanning system alternative, prices would still need to be displayed on store shelves for most items.

The critics say it will be harder to catch overcharges at the cash register, and the scanning machines may not pick up on sale prices or special prices for customers with loyalty cards.

"Consumer groups worry that item pricing could go away at supermarkets" *warning! obnoxious ads* [Enterprisenews.com] (Thanks to Linus!)
(Photo: Getty)

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Wed, 25 Jun 2008 10:57:30 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5019520&view=rss&microfeed=true
<![CDATA[ Medium Bags Of Popcorn Often Hold More Than Large Tubs ]]> If you buy the large tub of popcorn at the movie theater for the free refills, go for it, tubby. But if you're buying it because you just want the biggest size available, UC Irvine professor and author Richard McKenzie says to watch out if the medium is a bag while the large is a tub:
If you're in a cinema which gives you a choice between buying a medium bag of popcorn and a large tub of popcorn, there's a greater-than-50% chance that the medium bag will actually contain more popcorn than the large tub.

Here's more of Professor McKenzie's thoughts on popcorn economics:

The prospects of getting more popcorn in the medium than the large is higher here, since the medium is a bag with flexible sides and the tub has rigged sides. Both mediums and large sizes in Winston-Salem are bags with flexible sizes. There I always got more in the large (not much more!). Here, a little more than half the time I got more in the medium. It all depends on the clerks, and how she/he holds the bags and then chooses to literally stuff the bags by pressing the popcorn down. But then the ounce measures are not a firm indicator of value, since a higher weight can mean more bottom of the popping cabinet crumbs and un-popped kernels.

"Richard McKenzie's Popcorn" [Portfolio] (Thanks to Jon!)
(Photo: SMN)

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Sat, 14 Jun 2008 20:11:50 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5016524&view=rss&microfeed=true
<![CDATA[ Decoy Pricing Explained With Sex ]]> If you found our oddly popular post on decoy pricing too brainy, commenter SuffolkHouse offered an excellent concrete example that should drive the point home:

Sally and Tammy are both hot, but Sally's sister is a prude. This makes the fact that Sally puts out salient to me. I attach that meaning to Sally, but not necessarily to Tammy.

PREVIOUSLY: How Sellers Manipulate You With Decoy Pricing

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Fri, 13 Jun 2008 15:49:47 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5016349&view=rss&microfeed=true
<![CDATA[ How Sellers Manipulate You With Decoy Pricing ]]> Sometimes numbers lie. Assuming you have no innate preference towards either of the two colors, it might be hard to choose between a red Civic and a blue Civic. If instead you have a choice between a red Civic, a blue Civic, and a red Civic without air conditioning, the choice becomes much easier. Dan Ariely in his book Predictably Irrational says his research shows that most people would choose the red Civic with air conditioning over both the other cars. Details inside.

Regarding the graphic above, Ariely writes:

Option (A) is better on attribute 1—let's say quality. Option (B) is better on attribute 2—let's say beauty. Obviously these are two very different options and the choice between them is not simple. Now consider what happens if add another option, called (-A). This option is clearly worse than option (A), but it is also very similar to it, making the comparison between them easy, and suggesting that (A) is not only better than (-A) but also better than (B).

It's called decoy pricing, and stores use it all the time to get you to buy what they really what you to buy.

For instance, as another example in the book shows,

An ad for an Economist subscription gave 3 options

1) Print-only for $59
2) Web subscription only access for $125
3) Print and web access for $125

Obviously 3 looks like the best deal. In an experiment Dan ran with this setup, 16 subjects chose option 1, zero chose option 2, and 84 chose option 3.

What if we remove option 2 and have people choose between print-only and print and web access, all at the same rates? The results should be the same, right, after all, it's the same deal. Instead, the results changed dramatically. 68 chose print-only and 32 chose print and web access. It was only by option 3's relation to option 2 that made option 3 look so good. The subscription marketers at the Economist knew this and used it to boost their sales.

Can you recall any instances of decoy pricing you've seen?

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Thu, 12 Jun 2008 18:03:58 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5016019&view=rss&microfeed=true
<![CDATA[ Grocery Shrink Ray Hits Dawn Soap ]]> The grocery shrink ray continues firing unabated, this time scoring a direct hit on Dawn soap. Reader Courtney reports that Dawn containers, once a proud 740 ml, have now shrunk to a mere 650 ml—a loss of 90 ml of bleach-alternative cleanliness!

Even worse, the new containers are elongated, giving consumers the false impression that they are receiving more soap. It goes without saying that the price remains the same. Very dirty, Dawn.

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Sun, 08 Jun 2008 21:15:40 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5014428&view=rss&microfeed=true
<![CDATA[ Linens 'N Things Marks Product Up $10 During Free $10 Gift Card Promotion ]]> Jim from Blueprint For Financial Prosperity writes:

I thought I'd send along an interesting find from when I visited a Linens 'N Things (the one going through bankruptcy), they had some Rowenta Irons marked UP by $10... and then had a $10 LNT gift card promotion sign right next to them. It's no wonder they're going bankrupt! I think they need to be a little more savvy than this. I mean, are consumers so stupid that they won't notice that the $10 LNT gift card promotion is on a produce with a handwritten price that's $10 higher than retail?

We think this is evidence that Linens 'N Things has just given up. They're not even trying anymore. How sad.

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Fri, 09 May 2008 12:45:03 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5008431&view=rss&microfeed=true
<![CDATA[ American Airlines Is Losing $3.3 Million <em>A Day</em> ]]> Every day, American Airlines gets up in the morning, looks in the mirror, thinks about the $3.3 million dollars it lost yesterday, brushes its teeth and gets ready to lose another $3.3 million. Fortune says the hemorrhaging began in January, and while red ink is no stranger to the airline industry, they're running out of things to cut.

Fortune interviewed American Airlines' CEO Gerard Arpey, who had this to say:

In this climate, Arpey won't rule anything out. If Delta were able to complete its purchase of Northwest, American would be toppled from its perch as world's largest carrier. And a combined United and Continental would be even larger. That would leave American in arguably the weakest position among the network carriers. But Arpey says the size of his company doesn't matter as much as the strength of its assets. "We believe we will remain competitive irrespective of any consolidation that occurs," he said. "The real challenge is being profitable."

Later, as we were walking down the jet bridge, Arpey paused. "There is no business," he said, "that can go on forever selling its product for less than the cost to produce it."

Meanwhile, the Wall Street Journal notes that the airlines are finally starting to raise ticket prices along with the increased fees and surcharges. Travel blog Jaunted says:
Mergers would allow airlines to trim routes and, by reducing capacity, further raise prices, though carriers say that's not the plan. (Riiiiight.) This is all good news to one company, though. Virgin America is keeping fares low by burning through investor cash...
Enjoy that while it lasts.

American Airlines loses $3.3 million a day[Fortune]
Airlines Finally Passing Higher Costs on to Passengers [Jaunted]
(Photo:Zonaphoto)

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Wed, 30 Apr 2008 16:59:35 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5007387&view=rss&microfeed=true
<![CDATA[ Grocery Shrink Ray Hits Edy's Ice Cream ]]> Attention Ice Cream Lovers: The evil entity wielding the grocery shrink ray has pointed its malevolent device at Edy's Ice Cream. The standard jug of ice cream is now 1.5 quarts, down from an already-shrunken 1.75. The price, naturally, is exactly the same.

Will the grocery shrink ray ever stop? Or will our generation tell our wide-eyed grandchildren stories of the halcyon days of half gallon ice cream containers? Will they even believe us?

(Photo:Kris)

PREVIOUSLY: Breyers Ice Cream Shrinks To 1.5 Quarts

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Tue, 29 Apr 2008 12:12:33 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=385225&view=rss&microfeed=true
<![CDATA[ Buy More, Waste Money: Target's Large Box Of Dryer Sheets Costs 32% More (Per Sheet) ]]> Reader Andrew wants to remind everyone to wear their calculator wristwatches while shopping. You can save money without using a coupon... or avoid paying 32% extra (per sheet) for no reason. It depends on how you look at it, we suppose:

I'm hardly the first to point this out, but had to snap a few pics of the dryer sheets I was buying yesterday at Target.

Note these are regular price items (no sales/clearance). Buying the 120 ct box is a 32% price jump (per 100 sheets).

Another reason to wear your calculator wristwatch at all times when shopping...

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Tue, 22 Apr 2008 12:34:30 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=382611&view=rss&microfeed=true
<![CDATA[ Dell's Website Prices Are Based On Caprice And Whimsy ]]> Reader Tom noticed something weird as he was checking out Dell's online store: Dell's website can't seem to get its facts straight and keeps spitting out different prices for the same computer. So Tom ran a test in which he accessed Dell's website with two separate computers, using the same browser, login info, and navigation process. He checked the prices for Dell's Vostro system on their Small Business Desktops Dell Deals page, as well as their Vostro page. As you can see, there were some anomalies.

Tom said he "tried to control all the variables: Same date/time, same browser, same external IP address, same Dell login, same navigation process (Dell.com>Small Business Desktops>Dell Deals) & (Dell.com>Small Business Desktops>Vostro), and exact same visible URLs." Here are screenshots from the Dell Deals page: as you can see (with some squinting), there is a sizable difference between the dual-panel Vostro system. Computer 1:delldeals1.jpg
Computer 2:
delldeals2.jpg
Next, Tom tried to check the price on the dedicated Vostro page. Again, the prices were different. Computer 1:
vostro1.jpg
Computer 2:
vostro2.jpg
Pretty bizarre. Do any of our helpful Dell-employed readers have an explanation for this?

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Fri, 11 Apr 2008 12:12:08 EDT Alex Chasick http://consumerist.com/index.php?op=postcommentfeed&postId=378569&view=rss&microfeed=true
<![CDATA[ Fancy Feast Pricing Scheme Rewards Those Who Pay Attention ]]> Reader T says:

This is regarding something that has always bothered me. While grocery shopping today, I decided I'd better pick up some cat food. I always buy a case of the Fancy Feast 3-Flavor Variety Pack, sliced. That's the only stuff my cat will eat. I promise, I've tried everything else. So, I'm looking over my two choices, which are a 12 pack (4 of each flavor) for $8.29, or $3.684 per pound, and a 24 pack (8 of each flavor) for $17.65, or $3.92 per pound...
As usual, I become irritated because the larger box actually costs MORE than buying two of the smaller boxes. I would love to buy just one size large of the stuff, but the Purina company has made it impossible for a half-way intelligent person to do so. So, as usual, I buy two of the smaller boxes. Once at home, I decide I'd like to email the Fancy Feast people and inquire as to why this situation exists. So I sent them a little note that read: Shopping today, I noticed the 12 can size of the 3-Flavor Variety pack (sliced) costs less per pound than the 24 can size of the exact same product. I can buy two of the 12 can size boxes for about $1 LESS than I can buy one 24 can size. I think consumers naturally think that buying in larger quantities will save them money. I've noticed it has been this way for many, many months, so these are not products that are being discontinued, or are on sale, etc. Why would anyone purchase a 24 can box of your product when they can buy two 12 can sizes for $1 less. Can you please explain this pricing structure to me? It makes no sense. Thank you. So I guess we'll see what they say. Thanks for the work you do.
You know, T., this sort of pricing is much more common than you might expect. It seems that retailers have realized that people take for granted that the "larger size is cheaper by the pound" and are taking advantage of this assumption.

By paying attention to unit pricing, you've attained the next level of Consumer Ninja-ism. Congratulations!

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Thu, 10 Apr 2008 17:13:12 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=378450&view=rss&microfeed=true
<![CDATA[ Wrigley's To Introduce New "Slim Pack" Gum Packaging With Two Fewer Sticks, Same Price ]]> con_wrigleysnewpackaging.jpg Sometime soon Wrigley's will start promoting its new Slim Pack packaging in select markets, and nationwide by 2009. It's slimmer! It's easier to carry! And it's got 15 sticks instead of 17—for the same price! A Wrigley's vice president told Brandweek that consumers wouldn't care that they're getting less product: "To them the value goes up because they're getting a better tasting product in a better package." Ha ha consumers sure are stupid, aren't they, VP of Wrigley's?

Okay, so it's not like more expensive gum causes cancer or anything, but we thought you'd like to know why Wrigley's is bragging about their new packaging in the near future. From Brandweek:

When asked if the package shrink would turn consumers off to the product, Paul Chibe, Wrigley's vp North American consumer market-gum, said consumers wouldn't care if they were getting 15 sticks of gum instead of 17 sticks. "To them the value goes up because they're getting a better tasting product in a better package. Price is not the way the consumer is looking at this," he said.
 
Brian Morgan, senior research analyst at Euromonitor, Chicago, concurred: "[Package shrink] is the strategy that has been used in many categories to accomplish a price increase without consumers really noticing or to smooth over the negative reaction."
 
Morgan added that, in the gum category more so than in other categories, consumers would likely respond positively to slimmer packaging: "Packaging innovations like that do make a difference, independent of what that does to the price."
 
Though the new packaging is, in effect, a price increase, Wrigley is hailing it as a packaging breakthrough. "Consumers like the fact that [the envelope] is slim, sleek; it feels very contemporary," said Chibe.
Hmm... maybe consumers are kind of stupid.
 
"Chew on This: Less Gum, Same Price" [Brand Week]

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Thu, 27 Mar 2008 15:27:01 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=372723&view=rss&microfeed=true
<![CDATA[ This E-Zip Comfort Electric Bike Cannot Be Purchased Anywhere ]]> An affordable electric bike that can go 18 mph for over 20 miles, but isn't sold online or in stores? Detroit, you clever fox, you've done it again!

E-Zip Comfort Electric Bike [Walmart] (Thanks to Jeff!)

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Sat, 22 Mar 2008 00:43:47 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=370897&view=rss&microfeed=true
<![CDATA[ Gillette Charging An Extra $5 For One Additional Razor Blade? ]]> amazingturbofuckingjetrazorblades.jpg Reader Jordan says that Gillette is adding a razor blade to their 4-pack. And raising the price $5.
A couple of weeks ago, I was at Target, and I saw that all of their Mach 3 cartridges were on clearance. As a Mach 3 user, I was kind of concerned as to what was going on. I hoped that they weren't discontinuing the Mach 3 and Mach 3 turbo and forcing everyone to buy their newest razor.

Last night I was at the grocery store and wandered down the shaving aisle, and lo and behold, Mach 3 razors now only come in a 5-pack. Not only that, the price has been jacked way up. A 4-pack of Mach 3 turbo blades was about $8.99. The new 5-pack costs $13.99. So they give you one extra razor for 5 bucks. Thanks, Gillette. I am now switching to Schick.

Ouch.

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Wed, 12 Mar 2008 21:41:40 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=367232&view=rss&microfeed=true
<![CDATA[ Is It Legal To Use Out Of Date List Prices For Comparison On Sales? ]]> Last week we pointed out how Apple artificially inflates the discount of its refurbished units by using the original introductory list price as a comparison, even if the price has since dropped and the true list price is now lower. Now a reader writes in to say he caught Toys R Us doing the same thing on sale prices of Playstation 3 bundles and 30 gig Zunes. Our question: is this legal? New York City's consumer protection law seems to imply that—at least for retailers doing business in NYC—it's not, unless you clearly indicate the trail of price reductions, something neither company is doing.

The reader, Gizmo Sprocket (we'll call him GS), noticed the price difference on the PS3 bundle.

con_ps3saleprice.jpg

The implication is that Toys R Us is discounting the console further from the list price, but GS knew that the list price is now $499 no matter where you buy the console—hence, this was no discount at all. He decided to ask Toys R Us what was going on:

There was no option for simple pre-order questions or to report problems with the website.... So I navigate phone-tree hell and finally get somebody on the phone. They insisted that the list price was $599. I explained that the initial launch PS3 bundles were indeed listed at this price, but the item they mentioned was not $599. There was some discussion surrounding that the launch PS3 was an entirely different model and SKU- including a 60gb model (not 80) and didn't include Motorstorm as indicated in this online listing. In fact, this sku was always $499. [see image at left. -Consumerist] con_ps3listprice.jpgThey went to the Sony store online and told me they searched on SonyStyle for "PS3" and again insisted that the list price was $599. I repeated the search on my end of the phone call and saw what they saw.

They then conceded there was a problem (finally) and said it would be looked into. I asked if they would honor selling me this PS3 for $100 off the list price as Toys R Us Dot Com showed they were selling it (the list price actually being $499 not $599 as listed) and they said they would not.

Note: Today we visited the Sony link and any mention of a price had been removed. Here is the original page as sent in by GS, taken earlier this week. He continues:
I am not sure this is illegal or unethical- as a consumer I was prepared to buy it for $399 if they would honor that price. I am still prepared to buy the 80gb motorstorm bundle for $399 if they would honor that price, but that is besides the point.

So- it is definitely illegal to indicate an inflated list-price in NY State and probably other areas. As I live in NY State and this product would be shipped to NY State. Toys R Us Dot Com markets in NY State and it would seem that this consumer protection applies. This could be an innocent mistake, but part of me thinks it would be reasonable for them to honor their posted discounted price in either proportion ($100 off of $599 is a discount of 16.66667 percent) or as a drop of $100 off off the $499 actual list. Either way I'd buy it..

What are your thoughts?

The next day, GS found a similar pricing issue on Toys R Us with a Zune:
con_zunesaleprice.jpg I check Techbargains.com occasionally. At lunch i noticed a clearance sale over at Toys R Us dot com. I wondered if the list price issue was fixed on the PS3 so I clicked through techbargains and then clicked for items over $100 and found the 30gb Zune listed.. the list price is noted as $249.99 and then, below it- Our price: 199.99... I just checked on http://www.zune.net/en-us/products/compare.htm and found the 30gb is listed at $199.00. The price was dropped when the new Zune models were announced. Now what is really troubling is that this page is supposed to show things on a clearance sale! It says so at the top of the page.con_zunelistprice.jpg
 
Gizmo Sprocket makes an interesting point from a business liability perspective: if you list an inflated percentage of savings based on an out-of-date list price—which is what Apple does on its refurbished products—and a customer catches it, can he demand you honor that percentage discount on the real list price? If so, that's reason enough to start being completely honest with list prices, "original prices," and reductions.

As to the legality of it (we're getting there, we just had to get through a lot of backstory first), here's the actual law in New York City:

Rules of the City of New York -
Title 6
Department of Consumer Affairs

§5-91 Reductions Based on Advertiser's Own Price; "Formerly," "Regularly," "Reduced," "Percent Off," "Save," and Similar Terms.

(a) Immediately preceding price. If an advertiser uses the words:

          "percent off"
          "formerly .., now ..."
          "reduced"
          "reduced to"
          "regularly..., now ..."
          "now only"
          "save $ ..."
          "was ..., now ...,
          "item now $ ..."

or any similar term implying a reduction from a prior price charged by the advertiser, the price to which the reduced offering price is being compared must be the advertiser's bona fide selling price for that item or service unless the advertiser clearly discloses another basis of comparison or qualification.

(b) Intermediate reductions. If the term "originally," or any similar term, is used in any advertisement, the price stated as the "original" price must be the advertiser's bona fide selling price for the same article or service prior to intermediate reductions, and the price immediately prior to the current reduction must be disclosed, unless intermediate reductions are clearly indicated by the language used.

Example: "Originally $75; then $68; now $65"; "Earlier this year $75; now $65"; "Further reduced to $50."

(c) Comparison not recent. If a claim is based on a past bona fide selling price of the advertiser prior to the recent, regular course of business, the advertiser must clearly disclose that fact.
Example: "Last year $40, now $20."

That seems to be saying that, if you're going to list original prices in order to accentuate the appeal of your discount, you have to show a clear trail of the item's pricing history—sort of like how Filene's Basement or Daffy's lists an original price, a reduced price, and then the current sales price on their tags.

RELATED
"You Can't Discount The Past, Apple"
(Photo: Getty)

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Wed, 27 Feb 2008 15:23:08 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=361491&view=rss&microfeed=true
<![CDATA[ Not to be outdone by the national players, ... ]]> con_tinyuscellularstar.jpg Not to be outdone by the national players, regional cellphone company U.S. Cellular has announced a $99 unlimited calling plan "for a limited time." $15 more adds unlimited text messaging, and $10 more adds unlimited data usage. [IntoMobile]

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Fri, 22 Feb 2008 19:43:29 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=359930&view=rss&microfeed=true
<![CDATA[ Get Out Your $#%@# Checkbook! Here Comes "Food Inflation" ]]> meatguy.jpgThink you're paying too much for food now? You're going to pay more in 2008 according to Reuters.

"There's going to be real food inflation in this country," C. Larry Pope, president and chief executive of U.S. beef processor Smithfield Foods Inc., said at the U.S. Agriculture Department's annual outlook conference.

Prices of grain futures have surged lately. For example, wheat futures have more than doubled on the Chicago Board of Trade over the last 12 months. Pope said meat shoppers eventually will pay for the rally because farmers who raise livestock cannot absorb the sharp escalation in feed costs.

Pope said the rip-roaring rallies in corn, soybeans and wheat would be good for farmers, but are "scary" for companies like Smithfield and the rest of the livestock industry.

"I think we need to tell the American consumer that things are going up," he said in a speech. "We're seeing cost increases that we've never seen in our business."

Hasn't someone figured out how to feed the damn cows grass again? Wasn't Michael Pollan in charge of that?

Food industry says prices headed up again in '08 [Reuters]
(Photo:amyadoysie)

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Fri, 22 Feb 2008 16:24:00 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=359844&view=rss&microfeed=true
<![CDATA[ Sam's Club Charges More For Bulk Check Purchases ]]> con_samsclubcheckprices.jpg An alert reader noticed that something looked fishy on the Sam's Club order screen when he was ordering new checks—if you decide to order double the number of checks, your price-per-box magically goes up the tiniest bit. We figure the amount is so small that most people don't even notice it, or they notice it but figure they'll still save time and shipping so it's worth the 3-5 cents extra. Still, it's a sneaky thing for a bulk discount store to do.

(Thanks to Eric!)

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Fri, 15 Feb 2008 19:48:41 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=357272&view=rss&microfeed=true
<![CDATA[ Some haggling philosophy from Wise Bread. ... ]]> Some haggling philosophy from Wise Bread. [Wise Bread]

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Tue, 12 Feb 2008 15:49:24 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=355649&view=rss&microfeed=true
<![CDATA[ Best Buy Hikes Price On Popular Budget Laptop, Gets Caught ]]> con_bestbuylaptop.jpg If you were eyeing the "budget-priced" Gateway P-6831FX and thought about picking one up at your local Best Buy, you'll want to wait until this Sunday, February 17th, when Best Buy says it will lower the price again. We say "again" because Dan over at Crave caught Best Buy raising the price by $349 after it was released, from $1350 to $1699, for no apparent reason other than it was selling well.

We called Gateway and they laid the blame directly at Best Buy's feet, saying the P-6831FX was "selling like gangbusters," prompting the retail giant to raise the price by $350. We asked Best Buy about the price discrepancy late Wednesday, and the retail giant said they would get back to us. While Gateway offers a series of similar laptops online, called the P-171 series, the P-6831 is available only though Best Buy.
Crave reports that Best Buy has since contacted them and announced they'll be dropping the price to $1199 come this Sunday—but in the meantime, it's still premium-priced at the ridiculous $1699. Even for a didn't-do-your-research tax, that's pretty steep.

"When is a bargain laptop not a bargain?" [Crave]

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Mon, 11 Feb 2008 19:24:56 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=355255&view=rss&microfeed=true
<![CDATA[ Best Buy: Name Your Own Price For This DVD ]]> Reader Jared says:

I was at Best Buy looking for 'The Fountain' on DVD. I found three copies in the drama section, and three different prices. No tricks here, no collector's / special editions. Just the standard widescreen version at name-your-own-price. Guess they're trying to emulate Radiohead?
Shhh! Don't give them any ideas.
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Mon, 11 Feb 2008 10:49:06 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=354950&view=rss&microfeed=true
<![CDATA[ KFC Is Sneaking Extra Profit From Bigger Orders ]]> If you're planning on buying some Hot Wings from KFC in Colorado Springs, Colorado, your cheapest option is to buy them in sets of six no matter how many you want. KFC charges you slightly more per wing as you buy more—"Guess they just hope nobody's good at quick math," our reader Jay writes.

(Thanks to Jay!)

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Thu, 07 Feb 2008 17:49:34 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=354024&view=rss&microfeed=true
<![CDATA[ Harbor Freight Sure Knows How To Have A Blow-Out Sale ]]> Reader Kyle says:

I saw this last week in the Harbor Freight store in Casselberry, Florida. I wasn't sure if I could pass up such an amazing deal but, somehow, I was able to exercise restraint.
You're a strong man, Kyle. ]]>
Tue, 05 Feb 2008 08:20:19 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=352623&view=rss&microfeed=true
<![CDATA[ DirecTV Raises Rates, Warns Customers Not To Switch To Cable ]]> DirecTV is jacking up rates by 4% as of February 27 and is reminding newly disgruntled customers that DirecTV still ranks higher than cable according to the American Customer Satisfaction Index. Most customers can expect a $3-$5 increase, but don't count on award-winning customer service.

Here are the new rates:

  • PREMIER™ $104.99/mo.;
  • LO MÁXIMO™ $104.99/mo.;
  • PLUS HD DVR™ $72.99/mo.;
  • PLUS DVR™ $62.99/mo.;
  • CHOICE XTRA™ $57.99/mo.;
  • FAMILIAR ULTRA™ $54.99/mo.;
  • CHOICE™ $52.99/mo.;
  • FAMILIAR™ $45.99/mo.;
  • PREFERRED CHOICE™ $32.99/mo.;
  • SELECT $45.99/mo.
Everyone with a package that isn't still offered will pay an extra $3. Customers with a promotional rate won't see an increase unless they switch packages.

DirecTV's email to customers:

Effective February 27, 2008, the monthly price of some DIRECTV® programming packages will change.

Please click here (PDF) for pricing information in English and Spanish.

[...]

For seven years running, DIRECTV has had higher customer satisfaction ratings than cable, thanks to loyal customers like you. Thank you for your business.

Sincerely,
DIRECTV, Inc.

According to the ACSI, DirecTV earned a D- in customer satisfaction, slightly beating out cable's failing grade.
http://consumerist.com/assets/resources/2008/01/ACSI%20Truth-thumb.jpg
Not exactly service to boast about.

Q1 2007 and Historical ACSI Scores [American Customer Satisfaction Index]
(Photo: cmorran123)

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Sun, 27 Jan 2008 20:42:16 EST Carey http://consumerist.com/index.php?op=postcommentfeed&postId=349448&view=rss&microfeed=true
<![CDATA[ Home Depot Lets You Keep $199 Power Tool That Rang Up For $0.01 ]]> Penny%20Toy.jpgJohnny was pleasantly surprised when the $199 power tool he grabbed off the clearance rack rang up at the self-checkout for just $0.01. Home Depot, of course, stopped him before he could leave and asked for the item back, but Johnny wasn't fast to part with his new toy.
I told the manager well that's to bad because I ALREADY PAID FOR IT!!! and if you don't return MY PRODUCT!!! that I PAID FOR!!! that I would call the cops because you are now stealing from me. I will call Weights and Measures. OH YEAH and my attorney.
Read the full story after the jump.

Well I never thought I would see the day when I would buy an item in a store, I have the item in my hands with my receipt and a Home Depot employee takes the item out of my hands because they are not sure if I can have this item. Sound funny, WELL, ITS NOT!!!

A few months ago I was in a Home Depot shopping and I saw a Power tool (worm drive) on clearance for 49.95 markdown from $199.99. I really wanted this item but did not have the cash on me at the time (just my luck) so I drove home got my credit card and drove back to the store but I was to late, someone had already purchased the item.

So just the other day I was in the Home Depot again and by lucky found the worm drive on the clearance rack unmarked. I took the item to self check-out and the item came up at a penny. I thought, cool I am getting a deal of a life time here. I then PAID for the item and took my receipt. I checked the UPC on the receipt and on the box just to make sure they were a match and they were.

Then a Home Depot employee came up to me from the self check-out and took the worm drive and said I need to check something I'll be right back and walked away from me with the item that I just PAID for. So after waiting for 6 to 7 minutes a manager came up front and told me that I can not have this item because it is on clearance and once the price falls to a penny it is to be markdown and thrown away. I told the manager well that's to bad because I ALREADY PAID FOR IT!!! and if you don't return MY PRODUCT!!! that I PAID FOR!!! that I would call the cops because you are now stealing from me. I will call Weights and Measures. OH YEAH and my attorney.

So after all that, they finally wised up and gave me back the item that I PAID for. I have never had a retail store do something like to me. They made me feel like I was a thief. Like I did something wrong, when all I wanted was to buy a worm drive that I saw on Clearance. (WHAT HAPPEN TO TAKING CARE OF THE CUSTOMER) because you lost another one to LOWES.

Johnny was more than dramatic—he was right. Scanner errors are only worth a small discount in some states. Now, it would have been more ethical to tell the store about the error and to ask for an additional discount, but since Johnny already paid for the item, it was his.

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Sun, 27 Jan 2008 08:45:56 EST Carey http://consumerist.com/index.php?op=postcommentfeed&postId=349355&view=rss&microfeed=true
<![CDATA[ "Help, I've Been Ripped Off By A Gas Station!" ]]> gasoline.jpgReader Dave thinks he's been purposefully ripped off by a gas station in CT:
Just wanted to let some of the folks living in or traveling in Southeast CT to avoid any of the Sunoco Stations that are owned by "Chucky's".

My wife and I stopped at the Sunoco that is located on Route 1 in Stonington the other night, because they had their lighted sign showing a price of $3.35 a gallon for premium fuel. It was night time and we did not notice until we were halfway thru pumping that the digital readout on the pump read $3.47 a gallon, which is obviously $.12 cents a gallon different.

When we went to complain to the person in the Kiosk, we encountered a very belligerent clerk who basically tried to tell us he knew nothing about the price that was on the huge, lighted sign. Just another example of someone price gouging, but with definitive, and pre-calculated actions to insure he can rip off the most number of people possible. We will never purchase anything from any of the gas stations owned by the "Chucky's" group again!!! Thanks Dave
Not to discourage you from patronizing another gas station, but you might want to consider reporting the station to the Connecticut Department of Consumer Protection. They have a hotline set up for complaints like yours.
Governor Rell's Gasoline Price Hotline: 1-800-842-2649.

If you suspect shenanigans are going on, don't just write to us! Tell the people who can really do something about it.

Energy Information [DCP]
(Photo:Ryan McFarland)

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Thu, 24 Jan 2008 10:48:00 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=348466&view=rss&microfeed=true