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August 2, 2010

Dish Network: #1 in Customer Satisfaction?

Filed under: Electronics — Edgar (aka MrConsumer) @ 3:46 am

In several TV commercials, the President of Dish Network touts the company’s low prices and success in becoming number one in customer satisfaction. In fact, he unequivocally proclaims:

“Dish Network is ranked number one in customer satisfaction among ALL [emphasis added] cable and satellite providers.” [Commercial one, and commercial two. ]

Not so fast, Mr. Ergen. There is a nearly unreadable disclaimer on the screen.

*MOUSE PRINT:

“According to the 2010 American Customer Satisfaction Index (ACSI) survey results for the US largest cable and satellite TV providers. The claim excludes fiber optics carriers.”

If you look at the actual survey results from the University of Michigan for May 2010, you discover the true ranking of companies:

*MOUSE PRINT:

Funny thing, the real number one-rated company for customer satisfaction is Verizon FiOS and the real number two company is AT&T U-verse. In essence, Dish is saying, if you exclude the number one and number two company, we are number one! That is kind of like Alamo declaring “We are number one (if you don’t count Hertz and Avis)”.

Dish Network was invited twice by Mouse Print* to comment on its advertising practices but did not respond.

Disclosure: MrConsumer is a member of Verizon’s Consumer Advisory Board (but even if he wasn’t, Dish Network’s ads would have been subject of a Mouse Print* commentary).

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July 26, 2010

30 Day Risk Free Trials and Lowball Prices

Filed under: Electronics,Internet,Retail — Edgar (aka MrConsumer) @ 5:40 am

Most of us are used to seeing infomercials where a product is offered with a free trial period. You pay the advertised price, and then if you decide you don’t like the product, you return it, and get your money back.

Now, there is a new breed of promotion,  like this PowerMeter ad. It appears you pay $9.95 for the device that measures the speed of your golf swing, and if you don’t like it, you can return it within 30 days.

If on the other hand you like it,  you might assume that you just keep it. Not so fast.

*MOUSE PRINT:

“If after 30 days you still like the Medicus Power Meter, then it’s just 4 payments of $19.95″ … PowerMeter website

So the $9.95 advertised price is the price of the “risk free trial”, not the price of the item. If you keep the PowerMeter, it will cost you a total $89.75 . 

The total price of the item may come as a surprise to purchasers who assumed the price  that was advertised was in fact the price of the product. To make matters worse, most infomercials that use this new technique of advertising, don’t disclose the actual cost of the product itself in the commercial even in mouse print. 

Incidentally, if you don’t keep the product, it isn’t even clear if you get your $9.95 back because this was not a “free trial” but a “risk free trial.”

Thanks to Eric from the Montgomery County Office of Consumer Protection for this submission.

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June 28, 2010

Which Company Really Offers the Most HD?

Filed under: Business,Electronics — Edgar (aka MrConsumer) @ 5:02 am

For a while last year, it seems like every cable and satellite provider was claiming to have the most HD programming. If they all claim to have more, someone’s not telling the truth.

Here is DirecTV’s “To Tell the Truth” commercial claiming to have more HD than Dish Network or cable.

But then you had Comcast claiming to have more HD than satellite:

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Can you believe anyone? DirecTV challenged Comcast’s claims before the National Advertising Division (NAD) of the Better Business Bureau, where the organization reviewed Comcast’s claims in TV commercials such as:

· “More HD”
· “Comcast has more HD than satellite. More HD than anyone.”
· “More HD choices”
· “More HD Options”
· “You might think DIRECTV has more HD than Comcast but you’re wrong!”

Here is part of NAD’s ruling.

*MOUSE PRINT:

“Following its review of the evidence, NAD determined that DIRECTV currently offers the most HD channels and Comcast, by combining its HD channels and HD On Demand library, currently offers the broadest selection of HD programming. NAD also determined that “claims like ‘More HD Choices’ or ‘More HD Options’ is a logical way to describe the combination of linear HD channels and HD content On Demand available to Comcast subscribers.” However, NAD also found that, depending on the context in which such claims appear, they could also be reasonably interpreted to mean “More HD channels” – as the challenger argued. NAD recommended that that the advertiser modify five separate commercials to avoid consumer confusion.”

The bottom line is that both companies confused the public as to the quantity of HD offerings they had. So if you are shopping for a new provider, look at the channel lineup of each company to see what is actually being offered in your area.

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May 17, 2010

When is a Wal-mart Rollback Not a Price Reduction?

Filed under: Electronics,Retail — Edgar (aka MrConsumer) @ 4:43 am

T.B. of Ohio wrote to Mouse Print* about a V. Smile V. Motion learning system he saw in April at Wal-mart advertised at a “rollback” price of $49.00.

He questioned the legitimacy of the discount, given the fine print and his personal experience in buying the item previously.

*MOUSE PRINT: The rollback sign was posted on 2/17/10.

What’s wrong with that? T.B. bought the very same item at the very same price at the very same Wal-mart two and half months earlier —  in December 2009. He even provided his sales receipt as proof:

So how could there be a rollback with no savings? A Wal-mart spokesperson responded to Mouse Print*:

“Walmart has recently said that we are stepping up both the number and depth of Rollbacks and communication of those Rollbacks to our customers. Yes, this toy was on Rollback last fall for the Christmas Holiday. We have simply extended the savings beyond our normal 90-day Rollback period on this toy, and the date on the sign reflects the date the Rollback was re-posted in the store.”

Who knew that a rollback was only temporary, first of all, let alone that it could be renewed?

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March 29, 2010

Comcast’s 2-Year “Guaranteed Rate” Increases

Filed under: Electronics,Internet,Telephone — Edgar (aka MrConsumer) @ 5:51 am

There is a change in the way “triple plays” for TV, Internet, and phone service are being marketed by major cable companies. Advertised promotions used to be limited to six months or a year at the most. Now many of them are for two years. This can be good or bad, depending on the details (which of course are not always immediately obvious).

Comcast/Xfinity is currently running a TV commercial touting a “guaranteed rate” (in large type) of $99 a month. The announcer even says:

“We’ll guarantee your rate for two years.”

One might come away with the impression that the $99 rate is guaranteed for two years, but that is not so.

*MOUSE PRINT:

In surprisingly large type, but much smaller than the $99 rate, Comcast discloses that the rate  jumps up $16 a month in the second year. Does that disclosure really overcome the other representations in the ad about the $99 price and the oral promise guaranteeing the rate — not “rates” — for two years?

It is unclear whether one would be allowed to cancel the deal after the first year, or if the customer is bound to a two year contract (and possible early termination fees).

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