Archive for February, 2008

What Went Down Inside Starbucks Yesterday? [Starbucks]

starbucksisclosed.jpgSo just what went on inside closed Starbucks across the nation from 5-9pm last night? According to comments on the Starbucks Gossip blog, they staff watched videos, learned how to pull the perfect espresso shot, relearned the importance of making creamy foam on top of lattes (NO EXCUSES), found out where the power buttons on the verisimos are, how to, and the importance of, cleaning, roleplayed through customer service situations, and chugged 10 espresso shots. One commenter says, “Just got back from my meeting, and I have to tell you, it was great. We went over what we needed to: espresso quality, milk quality, and customer care.” Such things pass for great after your stock drops 50%.

(Photo: gilsonrome)


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Is It Legal To Use Out Of Date List Prices For Comparison On Sales? [Misleading]

con_salestag.jpg 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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Obama on John Lewis

Barack Obama:

John Lewis is an American hero and a giant of the Civil Rights Movement, and I am deeply honored to have his support.

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Countdown to March 11: Mississippi

For now the attention may be on the four state showdown next Tuesday, but the Mississippi primary will follow just one week later on March 11th. In preparation, the first Obama for America Mississippi headquarters is opening in downtown Jackson.

Grassroots supporters in Mississippi have been organizing on their own for months though, meeting in small groups and helping spread the word about Barack to friends, family, and neighbors. The Columbus Dispatch reported on a gathering last Saturday night:

The spirited ongoing presidential contest is bringing out its own brand of fellowship among supporters, as organizers for Sen. Barack Obama … gathered for pizza and beers at a local bar and planned “house parties” along with sign-making workshops in anticipation of the Mississippi primary that they say will likely attract thousands of new voters and put the often overlooked Magnolia State primary in the national spotlight.

The event was a grassroots organizational meeting, coordinated through my.BarackObama.com,  dubbed “Barack the Tavern.” Local supporters met at Dave’s Darkhorse Tavern in Starkville, where they got to know one another and talked about campaign strategies.

Darrin Stewart, a 22 year old supporter who attended the gathering, said that “This is the first time in my life when I’m actually standing behind someone like I’m standing behind Obama.”

The SunHeraldreported:

Former Gov. Ray Mabus told reporters on a conference call on Monday that nearly 1,000 people have volunteered in Mississippi to assist Obama’s presidential bid.

… Mabus said there are many voters who have not committed to a candidate so the campaign isn’t “taking anything for granted in Mississippi.”

If you live in Mississippi, there are number of ways that you can help out right now. Sign up to volunteer to canvass in your neighborhood, make phone calls, become a neighborhood captain, a church captain, or house an out of state volunteer.

 

Check out MS.BarackObama.com for more news and info from Mississippi.

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Unlawfully Detained At Home Depot For Not Showing Receipt [Receipt Controversy]

homedepotcops.jpgReader Matt has launched the dreaded EECB (Executive Email Carpet Bomb) on Home Depot—attaching a copy of a formal complaint that he filed with the Metropolitan Police in Washington, D.C..

In addition to poor customer service and an inadequately maintained and stocked store, Matt says he was illegally detained by the Metropolitan Police and forced to return to the store to show his receipt to a Home Depot employee.

According to his police report, the officer stopped Matt without reasonable cause and forced him to comply with “store policy.” Matt feels that this was a violation of his 4th amendment rights.

Why are the Washington D.C. police enforcing Home Depot’s “store policies” as if they were laws? Nothing better to do?

Here’s Matt’s letter to Home Depot’s CEO Frank “Li’l Frankie” Blake:

Dear Mr. Blake,

Since purchasing my home in March 2007, I’ve spent nearly $10,000 on various projects around my home; most of that was spent at my local Home Depot in Washington, DC. Despite the poor inventory, poor customer service, long check out lines, disorganization of the store, rummaged-through/opened/broken/incomplete items sold, and many other problems with the store, I’ve shopped there because it’s local and has a good-sized lumber/drywall supply. After a recent incident, however, I’ll likely not return and instead will probably drive a few miles further to a Lowe’s in Maryland or Virginia in the future.

Long story short, I refused to show my receipt to exit the store, and was detained illegally (albeit briefly) by a uniformed Washington, DC Metropolitan Police officer in the 5th District on February 21, 2008. I’ve submitted a formal complaint to the police department, which is attached. I refuse to be treated like a criminal and be held at your store illegally in the future. As you probably know, most retail shrinkage/loss occurs as a result of internal theft by employees, not customers, so the store “requiring” customers to display receipts at exits likely isn’t doing much good anyway (not to mention that customers are not legally required to display receipts).

In addition to this incident, I’ve experienced the below within the past few months:

-Lack of knowledgeable sales staff

-Discourteous sales staff

-Inattentive sales staff

-Trouble receiving replacement parts missing from a ceiling fan kit; the local Home Depot associate actually opened up a new box for a different fan, gave me parts he assured would work, and sent me on my way. The parts didn’t fit my fan at all, and now the local Home Depot has yet another opened and incomplete item; the Chinese manufacturer was more efficient and shipped the parts to me as a courtesy.

-Saw used for cutting/ripping plywood and other lumber has been out of service for some time (forcing me to go elsewhere)

-Initial refusal by a cashier to allow an exchange of a Commercial Electric brand item; she claimed that the item was not purchased at a Home Depot, even though this brand is sold exclusively by Home Depot (after wasting 30 minutes of my time, a manager overrode the decision)

-Inaccurate inventory numbers, resulting in perpetually out-of-stock items (e.g.: one time, the store’s inventory system indicated to a sales rep that the store had hundreds of an item in stock, yet no associate could find the large, oddly-shaped item, forcing me to go to a competing store out-of-state, which has helpful staff and plenty of the item readily available)

-A store security guard grabbing my person and my purchased items and not allowing me to leave the store; my father had the receipt and already left the immediate area (Again, this type of action is unlawful; store employees or contractors have no legal right to touch/assault customers or prevent them from leaving, even if no receipt is shown. After purchasing the items, a customer’s obligation to the store ends.)

-Common items out of stock (one more than one occasion, I couldn’t find a CPVC 1/2″ elbow; this is a very common part, and it’s frustrating to have to rig several components together to complete a project)

-A 40-minute wait to even speak to someone about ordering a sheet of laminate countertop material (I recently built my own kitchen cabinets and counters); three other associates were present and available in the department, but claimed that the one busy associate was the single person in the store who could give me a rough guesstimate of price (I gave up and drove a few miles out-of-town to Lowe’s, which had a handful of popular styles of laminate sheets in stock, unlike Home Depot).

When I first arrived to DC, I was happy to hear that there was a Home Depot in town, as I was familiar with the “You can do it, we can help” attitude portrayed in advertisements. My experiences (only some are list above) have proven, however, that the Home Depot is most certainly not in a position to help as advertised. In fact, I wish I would have spend the thousands of dollars at Lowe’s or other stores. Even with a further distance to travel and possibly higher prices, I wouldn’t have left the store stressed out or frustrated nearly every time.

Mr. Blake, I realize this is a long e-mail, but I hope you– as Home Depot’s CEO– will consider what I’ve said and work to institute changes at the Home Depot in our nation’s capital; until then, though, I’ll likely find a store that’s well-organized and staffed with persons who are helpful.

In addition, I read today that Home Depot recently posted its first-ever annual sales decline, with a 27% drop in the fourth quarter of 2007. With those losses, I’m surprised that Home Depot hasn’t gotten back to basics like having good customer service, sensible policies, and treating customers as they should be treated.

Please feel free to contact me via e-mail or telephone at [redacted] should you have any questions.

Yours,

Matt

http://consumerist.com/assets/resources/2008/02/detainedatthehomedepot-thumb.jpg


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O’BAMA

Celebrate St. Patrick’s Day in style…

Now at Store.BarackObama.com

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Animals Bring Phishing Call To Life [Videos]

funnyanimals.jpgChris went ahead and added some animal pictures to make a video of that phone call between a scammer and a Southern gentleman. A weasel plays the Indian phisher, a houndog plays the gentleman, and a goose plays his wife. Go back to the post and watch it, it’s even funnier than the original.


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A new meta-analysis showed that popular anemia … [Pharma]

A new meta-analysis showed that popular anemia drugs Aranesp and Procrit increase the risk of death in cancer patients by 10 percent, a statistically significant number. [NYT]


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Happy Resolution To Very Strange Circuit City iPod Touch Bait And Switch [Success Stories]

goldentouch.jpgCircuit City lied to Ian about giving him a discounted iPod Touch, but now he has a satisfactory resolution. He writes:

After writing a number of emails to Circuit City and after a making few more (fruitless) calls, I tried something new and posted my story to their public online customer service forums. The forum manager responded very quickly and promised that someone would call me back to resolve things. I received two calls last Thursday from Circuit City staff who wanted to help fix the situation;

…unfortunately I was on a plane at the time, and had meetings all weekend that prevented me from calling back. But this morning, I got a third call, this time from a supervisor in the Sales department (the same department which had originally called me).
Unlike the customer service people I spoke to last week, the supervisor I spoke to today was incredibly friendly and helpful - after I explained the situation in detail, he apologized, then explained that what happened was NOT how Circuit City usually does business, that I was not the only person who’d experienced trouble last week, and that the issue has now been dealt with.
The supervisor then offered to give me an additional discount on the item, which I was happy to accept - and I picked up my new iPod this evening. It’s charging and syncing as we speak!
It may be time-consuming and rather annoying to have to fight for your rights as a customer, but it’s important to do it… and although it took a few days, Circuit City really did step up in the end, acknowledge the problem and make it right.
And I’m happy to report that they’ve kept a customer today.

Interesting, Ian wasn’t the only one who experienced the bait and switch. But by escalating his issue and posting it in their online public customer service forum, he was able to get a very satisfactory solution. Another technique to remember. They might be able to ignore calls and emails, but dirty laundry up in their base is hung for all to see, and so sometimes they try to clean it quickly.

PREVIOUSLY: Very Strange Circuit City iPod Touch Bait And Switch

(Photo: Dan_H)


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Comcast Stacks FCC Hearing Seats With Sleepy Shills [Net Neutrality]

chillinglikeashilling.jpgComcast admitted to paying its employees to sit in at a F.C.C. hearing on net neutrality at the Harvard Law School today, depriving angry protesters from their right to sit in those folding chairs. Despite the venue being filled to over capacity, keeping some people from entering, not everyone inside seemed appreciative of their privilege. One Comcast employee admitted on tape, “I’m just getting paid to hold someone’s seat, I don’t even know what’s going on.” According to SaveTheInternet.com, the Comcast employees, “arrived en masse some 90 minutes before the hearing began and occupied almost every available seat, upon which many promptly fell asleep.” The stacked audience’s behavior was limited to wearing a yellow highlighter, sleeping during the proceedings, and loudly applauding when Comcast VP David Cohen got on the mic.

Comcast PR rep Jen Khoury told Portfolio, Comcast informed our local employees about the hearing and invited them to attend… Some employees did attend, along with many members of the general public,” adding that, “For the past week, the Free Press has engaged in a much more extensive campaign to lobby people to attend the hearing on its behalf.”

Whichever side you believe, one thing is for certain: Comcast employees don’t get enough sleep (exhibit A, exhibit B).


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