Technologizer posts about Consumer Issues

Oh No, the “Free iPad” Offers Are Here!

By  |  Posted at 12:00 am on Monday, February 1, 2010

157 Comments

What’s the surest sign that the iPad is the world’s hottest tech product right now? It may not be Steve Jobs telling us it’s magical and revolutionary, or the avalanche of coverage on tech blogs. Maybe it’s the arrival of cheesy ads that dangle free iPads in front of people–almost two months before the gizmo even goes on sale.

Earlier today, I was on Facebook, and saw this ad:


Free iPods for 45-year-old males? I’m 45! I’m male! What a happy coincidence! What a rare opportunity!

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The Consumerist has conducted a superb, important investigation into a Best Buy “optimization” service that involves the Geek Squad pre-tweaking PCs on sale for alleged performance and usability benefits, for a  $40 surcharge. The investigation’s conclusion: The service can make it hard to buy a computer for the advertised price, and the benefits, if there are any, aren’t worth forty bucks.

It’s certainly true that many new Windows PCs aren’t as well configured as they could be–some, in fact, are so laden with demoware and other stuff that it’s downright annoying. Here’s an idea: Why doesn’t Best Buy, a tremendously powerful company in the industry, use the leverage it has to convince PC makers to do a better job in the first place, rather than trying to squeeze an extra $40 out of consumers?

Posted by Harry at 7:31 am

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How I Accidentally Agreed to Pay $300 a Year to a Company I’d Never Heard of, for a Service I Didn’t Want

By  |  Posted at 9:20 am on Friday, November 27, 2009

28 Comments

On Tuesday, I mentioned that I’d recently purchased a background check from Intelius and found that I’d unwittingly become a member of something called SavingsAce, a shopping club that costs $24.95 a month. I said that the Intelius customer service rep I’d spoken with had denied that the company had given my credit-card info to SavingsAce.

After I wrote that piece, I contacted a public-relations person at Intelius. She said that the service rep had given me faulty information: Intelius had indeed given my information to SavingsAce. But only after I’d granted permission, she said.

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EFF Outlines “Terms of (Ab)Use”

By  |  Posted at 10:12 am on Wednesday, November 25, 2009

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Yesterday, the Electronic Frontier Foundation (EFF), a consumer watchdog, embarked on a new project called Terms of (Ab)Use. Terms of (Ab)Use is the EFF’s attempt to enable people to understand what their End User License Agreements (EULAs) mean.

The EFF views EULAs as private contracts that enable online service providers to circumvent existing law and dictate their legal relationship with customers. They are frequently written to be one-sided in favor of the service provider, and are “designed to be beyond judicial scrutiny,” it said.

The organization’s objective is to cut through confusing legalese, and state what the contracts say in plain language. That goal is laudable, and could lead to greater transparency, but I wonder whether it is a problem that end users actually care about.

Do the majority of people even read EULAs before they click “Accept”? It’s doubtful. People just want to use the service, whether it be Gmail or an online game, and the provider determines how its service should be used.

The EFF needs to communicate the value of what it is doing to the public in order to be successful. Unfortunately, it is facing an uphill battle.

If a bridge collapsed, people would demand consequences. Yet, software failures are accepted, and the cost of those failures is passed onto consumers. With the exception of businesses that have iron-clad service level agreements, we are accustomed to a one-sided relationship with software vendors. There is no real framework for liability in the software industry.

It takes a group like EFF to stand up for users’ rights.



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Vertrue, the World’s Most Saintly Company

By  |  Posted at 3:32 pm on Tuesday, November 24, 2009

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As I mentioned earlier today, I recently discovered that I was a newly-inducted member of something called SavingsAce, a discount club that had begun charging me $25 a month. I called it, canceled, and got my twenty-five bucks back. I also asked how I came to be a member, and the rep told me that I’d agreed to join in return for a $10 discount on a purchase I’d made from information provider Intelius. I had indeed made a purchase at Intelius, but remembered neither agreeing to join SavingsAce nor being offered $10 back. So I called Intelius.

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Online Merchants: It’s Not Our Fault Our Customers Are Chumps

By  |  Posted at 9:43 am on Tuesday, November 24, 2009

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Over at Cnet, Greg Sandoval has blogged about the post-purchase online marketing tactics that the U.S. government is currently investigating. These are the discount offers you get at checkout that involve you agreeing to a monthly charge that’s explained only in fine print. The “deals” are powered by marketing companies such as Affinion, Vertrue, and Webloyalty.

Sandoval has quotes from three of the merchants–Orbitz, Priceline, and United Online–insisting that the offers are sufficiently explained and that the companies don’t pass on customer information to third parties without permission. Which reminds me of a famous piece of video, also involving corporate executives apparently believing that insisting something makes it true:

Orbitz, Priceline, and United Online seem to be saying that if any consumers get confused by the offers and sign up without intending to, it’s the consumer’s own fault. But as Sanodval says, if it’s really true that the companies involved insert these offers into the sales process for their customers’ convenience, and that consumers understand what’s going on, the fix here is obvious: Have the shopper enter his or her credit-card number one last time to confirm acceptance of the offer.

I’ve  already stopped doing business with Orbitz after it slipped items I hadn’t asked for into my shopping cart and later told me it was doing so for my convenience. But did I mention that I recently found myself a member of something called SavingsAce, which costs $24.95 a month–and that I’m not sure how I got signed up? (SavingsAce is a program run by a division of Vertrue, one of the marketing companies under investigation.) I’m about to waste some time calling SavingsAce up and attempting to get my first twenty-five bucks back.

As I’ve said before, I hope that these sleazeball tactics disappear from the Web, one way or another. Legislation would be fine. But so would the merchants in question deciding that they’re driving away customers by treating them like stooges.



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The Sordid World of Post-Purchase Marketing

By  |  Posted at 1:25 pm on Wednesday, November 18, 2009

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Earlier today I was squawking about the sales tactics of PeopleFinder’s Stud or Dud? iPhone app: Once it has your credit-card info, it attempts to use a discount to convince you to sign up for various services that cost $24.95 a month, a price that’s mentioned only in fine print. As I did my grumbling, I didn’t realize that the U.S. Senate had been conducting a hearing on tactics of this sort, which are widely used by some of the largest e-commerce companies in America. Michael Arrington of TechCrunch has a good summary, and embedded this news report:

One of the companies that’s made millions off these shenanigans is Orbitz. Last March, I blogged about the related indignity that company puts its customers through: tacking travel insurance and limo rides onto their airfare purchases and forcing them to opt out (if they notice the charges) rather than opt in.

If you read every single word on every page during a sales transaction with companies that do this, you might avoid any unexpected charges. But dealing with this stuff makes an online sales transaction feel like it’s pockmarked with land mines that might go off at any moment. And it leaves me feeling like the e-tailers in question–some of who otherwise have extremely respectable sites–think their customers are patsies.

Isn’t a company’s reputation worth more than any few million dollars? Wouldn’t it be nice if corporate America quietly decided that treating consumers this way wasn’t worth it before the Feds force them to cut it out?



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