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McAfee’s Rebate with Built-in Costly Time Bomb

  Tiger Direct recently advertised an amazing giveaway: a PNY 128 gig USB 3.0 thumb drive and McAfee Multi Access free after rebate. A supposed $149 value for free!?

McAfee

How can they do this? The secret is in the rebate offer.

*MOUSE PRINT:

McAfee-2

You actually have to install the software and sign up with your credit card initially to automatically renew the service after the first year. You are not allowed to cancel the renewal until 10 months of service have elapsed.

Who is going to remember ten months from now to cancel this service?

Incidentally, the annual service sells for between $69.99 to $99.99.

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Intuit/TurboTax Caves to Consumer Pressure

  After three and half weeks of stringing criticism from customers and the media, Intuit, the maker of TurboTax Deluxe, threw in the towel on January 29. The popular tax preparation software had been stripped of key functionality in a ballsy and blatant money-grab to extract an extra $30 to $40 in upgrade fees from regular users. The company is now going to offer free automatic upgrades to TurboTax Premier and Home & Business from within TurboTax Deluxe — the very thing we first called for back on January 6.

The company also vowed to restore all the missing pieces to TurboTax Deluxe next year.

Intuit president Brad Smith posted this apology on his Linked-in page:



Customers who already paid the $30 to $40 upgrade fee or who bought a higher edition of TurboTax will still be able to get a $25 rebate, but in many cases, it may not cover all their extra costs.

Intuit was taught a valuable lesson (again), but its history of practices designed to gouge its customers suggests it probably hasn’t really learned anything.

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More TurboTax Pricing Games

  TurboTax DeluxeOur trusty mouse caused a little bit of a stir with last week’s story about Intuit yanking out key functionality from TurboTax Deluxe, and selling it back to customers via a $30 – $40 upgrade charge. There are now over 1400 one-star reviews on Amazon with consumers fuming over the changes and charges.

Game 1:

In the course of testing TurboTax Deluxe 2014, we discovered something curious with respect to the price they were charging for upgrades. If you needed to enter detailed information about investment transactions, for example, the program threw up this roadblock and advised that you would have to upgrade to “Premier” for an extra charge of $30.

$30 Upgrade to Premier

When going back to that section subsequently, on occasion the program would change the price for the required upgrade:

*MOUSE PRINT:

$25 upgrade fee

The fee dropped from $30 to $25. Going back another time, however, it was back up to $30. There was no rhyme or reason for the varying prices. Also, in the self-employment income section, the user is alternately presented with either a $30 or $40 up-charge to go from TurboTax Deluxe to “Home & Business.” Maybe Intuit is testing various price points to see what amount will be most palatable for users.



Game 2:

Another strange pricing disparity cropped up last week on the TurboTax website. When we first checked prices for downloading the desktop version from their website on December 25, this was the pricing shown:

ttpricing-12-25small

TT Deluxe was $59.99, with federal and state forms included.

Roughly two weeks later, on January 9th, it looked like things had changed.

*MOUSE PRINT:

TT prices 1-9

Now it says that for $59.99 you seemingly only get the federal return because it says “state additional.” Clicking on the state additional link does not exactly clarify matters.

state additional

Well, which is it, Intuit? Is state included or not? There is a big difference between “state additional” and “additional state.”



Game 3:

And one last example. In the pricing charts above, buying TurboTax directly from Intuit seems to give customers a $10 discount off what appears to be the regular or list price. According to both Amazon and Target, however, the “list price” for each of the four editions of TurboTax 2014 is $10 lower than Intuit represents. For example, while Intuit says that TurboTax Deluxe is regularly $69.99 but is now on sale for $59.99, Amazon and Target say that $59.99 is the list price for TurboTax Deluxe to start with. Hmmm.