BAIT & SWITCH

SCAM ALERT!!

What is this alert about?

There is a practice among disreputable Internet merchants to advertise high-ticket items substantially below dealer cost (especially in shopping comparison venues) and at some point or at multiple points after the sale is processed, advise the buyer (or worse leave the buyer to regretfully discover) that the deal was too good to be true. Somewhere along in this unpleasant buying experience one or more undesirable outcomes are the result:

  1. The buyer winds up paying more than expected.
  2. The buyer receives less than expected.
  3. They are so disgusted or confused by the entire experience that they lose interest in buying even from a legitimate Internet merchant who offers honest discounts & service.
  4. They get burned altogether and are left only with expensive legal options to recover their money.
  5. The offending merchant changes his name and address yearly after complaints pile up.
  6. The buyer cuts his losses and buys from a high-priced local store just to assure a straight deal.

We decided to investigate this matter firsthand and if you would like to read the story, click here:

Here’s the bottom line with this merchant:

  1. They are going to charge your credit card and keep the money for at least two months.
  2. As the customer becomes more desperate and fearful of having been scammed, the merchant will suggest lower cost alternatives that they can make a profit on.
  3. The actual model ordered will never actually be shipped unless: (a) there’s a factory price reduction during this period that now permits the merchant a profit (in which case any number of legitimate merchants could have offered the same thing, or (b) the merchant finds a refurbished unit or one with missing parts or accessories such that they can make a profit.
  4. You’ll never get your money back unless you:
    • Agree to a 5% - 20% order cancellation fee
    • Chargeback your credit card
    • If you paid via debit card or even worse, check or bank wire, your only recourse is a lawsuit or complaint to the BBB, your state attorney general, or state consumer protection agency, all of which offer dismal likelihood of success and big hassles.

How did this come about?

As a historical note, many of these practices began in the consumer electronics industry with unscrupulous hustlers and merchants in urban areas when camcorders became popular years ago. These merchants would advertise popular models at $100’s below cost, take your money, and after you paid, hand you the camcorder without the factory carton, packing, instructions, warranty, plastic bags, batteries, other accessories, remote control, whatever else. If this was a problem for you (which of course it always was), the salesman would explain that none of these items were included, and nowhere in his advertising did it say so. They would offer to sell you the items “a-la-carte” such that the total resulted in a good profit for them. If the customer had a problem with this, they pointed to the big sign at the front register that stated: “NO REFUNDS” or “ALL RETURNS SUBJECT TO RESTOCKING FEE OF XX%”, so the buyer either got stuck for about 10% - 20% of the sale or ponied up the several hundred additional dollars for the rest of the otherwise standard factory accessories they assumed were included in the first place.

What can a buyer do to protect themselves?

  1. Always pay via credit card, not debit card, check, money order or wire transfer, unless you trust the merchant. Where available, PayPal also offers decent protection from scams.
  2. Before even contacting the merchant, check customer comments and merchant ratings on the shopping venues and generally on the Internet as such sites as: www.resellerratings.com

Here’s an example of the type of merchant you’ll want to stay away from:

http://www10.shopping.com/xMR-PriceMad.com~MRD-304852~S-3?NPP=90

Meanwhile, be sure to pay only by credit card when the merchant’s reputation is in doubt, and cancel the deal at the first sign of the electronics “Shell Game”.