Best Buy Lawsuit regarding pricing

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http://www.courant.com/news/local/hc-watchdog0302,0,5198012.column?coll=hc-utility-local

Best Buy Confirms It Has Secret Website

March 2, 2007

Under pressure from state investigators, Best Buy is now confirming my reporting that its stores have a secret intranet site that has been used to block some consumers from getting cheaper prices advertised on BestBuy.com.

Company spokesman Justin Barber, who in early February denied the existence of the internal website that could be accessed only by employees, says his company is "cooperating fully" with the state attorney general's investigation.

Barber insists that the company never intended to mislead customers.

State Attorney General Richard Blumenthal ordered the investigation into Best Buy's practices on Feb. 9 after my column disclosed the website and showed how employees at two Connecticut stores used it to deny customers a $150 discount on a computer advertised on BestBuy.com.

Blumenthal said Wednesday that Best Buy has also confirmed to his office the existence of the intranet site, but has so far failed to give clear answers about its purpose and use.

"Their responses seem to raise as many questions as they answer," Blumenthal said in an interview. "Their answers are less than crystal clear."

Based on what his office has learned, Blumenthal said, it appears the consumer has the burden of informing Best Buy sales people of the cheaper price listed on its Internet site, which he said "is troubling."

What is more troubling to me, and to some Best Buy customers, is that even when one informs a salesperson of the Internet price, customers have been shown the intranet site, which looks identical to the Internet site, but does not always show the lowest price.

Blumenthal said that because of the fuzzy responses from Best Buy, he has yet to figure out the real motivation behind the intranet site and whether sales people are encouraged to use it to cheat customers.

Although Best Buy also refused to talk with me on specifics of the intranet site or its use, it insisted that its policy is to give customers the best price.

"Our intention is to provide the best price to our customers which is why we have a price-match policy in place," the company said in a written statement to me. "As prices and offers may vary between retail and online, our stores will certainly match BestBuy.com pricing as long as it qualifies under the terms and conditions of the price match policy."

"As a company, everything we do revolves around our customers' needs and desires. It is never our intent to mislead them as their loyalty is incredibly important to us," the statement said.

Then they threw in this interesting line: "Although we have an intra-store web site in place to support store operations (including products and pricing), we are reminding our employees how to access the external BestBuy.com web site to ensure customers are receiving the best possible product price."

That last sentence seems to indicate that Best Buy, which is supposed to be staffed by tech-savvy employees, is putting the blame on memory lapses: that employees have somehow forgotten how to access BestBuy.com from the store.

Having been to many Best Buy stores where some helpful employees showed me how they access the intranet and Internet, I can assure Best Buy officials that the re-education process will probably not be lengthy.

After making sure the computer is turned on, employees should click twice on the Yahoo Internet icon and then type in BestBuy.com.

This is not the first time the giant electronic retailer has gotten into trouble misleading customers. The firm, based in Minneapolis, operates more than 1,100 electronic retail stores in the U.S., Canada and China. It has more than 125,000 full-time employees.

Attorneys general in New Jersey and Ohio have accused Best Buy of deceptive sales practices, repackaging used merchandise and selling it as new, and failing to pay rebates and refunds. It paid $135,000 in New Jersey three years ago to settle that state's suit, which was based on hundreds of consumer complaints. The Ohio case is ongoing.
 
Were used to companies telling lies, and doing dirt. But fucking over the consumer at the POS is really really really bad business.



"Hi, I saw this on the site for $699 do you have it."

"Yes we do but its really $999."

When a company lies about cleaning the environment or not using Chinese labors. Not much we can do. But they're basically kicking you in the face at the POS in a store.
 
Worked there for two years. This is a load of BS. I quit there last June. I had access to just about everything in the store. The intranet site they speak of like many corporations houses all of their training material and employees can check on compensation and such. They also have the ability to check all store inventory within a certain radius.

It also has a link to Bestbuy.com on it. When you click the link o the intranet it brings up the bestbuy.com site. Not an internal version. This story is a load of crap about the site. Though I have known Best Buy to "ahem" leave off certain instant rebates or the web staff didn't update web pricing where the POS system did. At that point it's ALWAYS the store advertised price since on Best Buys disclaimer on their website they are not responsible for misprints or pricematch web sites at all.

Even though I think the company is PURE evil and I had a pretty high position, I think this is load of crap and people making assumptions.


EDIT: The biggest thing I hated was lack of consistancy. They are sooo big a company they have to rely on the local management to keep the stores honest and as long as the stores are making budget they didn't really care how they were doing it. Luckily I worked in a store where the management team wasn't like that, but we were the exception. I have met dirty store managers and management staff, more so than not for that company.

But it's retail and it's all about milking the money out of the uneducated consumer to them (and I have seen the high fives when they do).
 
[quote name='fenderhutz']Worked there for two years. This is a load of BS. I quit there last June. I had access to just about everything in the store. The intranet site they speak of like many corporations houses all of their training material and employees can check on compensation and such.

...

Even though I think the company is PURE evil and I had a pretty high position, I think this is load of crap and people making assumptions.[/QUOTE]

You obviously weren't a 33rd degree Best Buy employee, so you didn't get to see the real intranet with the customer-screwing pagan click-ables.
 
I was actually told by a BB employee recently that they would NOT price match their website. I told him I would just walk out to my car, order the product from their website and request in store pickup. He then changed his story and said they would price match the website. This was the same guy that overheard me telling another customer that the Wii used standard SD cards and accused me of lying because they required a "special" memory card that cost twice as much. What pinheads.
 
[quote name='Machine']I was actually told by a BB employee recently that they would NOT price match their website. I told him I would just walk out to my car, order the product from their website and request in store pickup. He then changed his story and said they would price match the website. This was the same guy that overheard me telling another customer that the Wii used standard SD cards and accused me of lying because they required a "special" memory card that cost twice as much. What pinheads.[/QUOTE]


this is why I need to get a laptop with wifi, so if they give me shit about not price matching the web site, just go to a wifi hotspot, order it online and pick it up.
 
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