Electronics

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

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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Comcast’s 2-Year “Guaranteed Rate” Increases

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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The Catch in Verizon’s $84.99 Triple Play Deal

Verizon FiOS has been advertising a great package price online for Internet, telephone, and FiOS TV — just $84.99 a month for a year. That is less than most competitors, and many consumers rave about FiOS.

Here is their online animated ad (for which you need Adobe Flash player to view). Click the replay button if the animation has ended.

Did you catch that pop-up disclaimer at the end that was on the screen for less than two seconds? (You can hover over the “legal” button with your mouse to freeze it in place — something we guess most consumers probably wouldn’t know to do.)

*MOUSE PRINT:

$109.99/month for months 13-24, two-yr agrmt req’d plus taxes and fees.

We would venture to say that most consumers didn’t catch the fact that you must sign a two year contract to get this deal, and that the bargain $84.99 price only lasts for the first year. The price then jumps up $25 a month to regular price (apparently) for the second year.

Imagine the customers’ shock when they open their Verizon bill in month 13! And, if they want to cancel at that point, they are in for a second expensive surprise. Also not disclosed in the ad is Verizon’s new $360 early termination penalty (which is evenly pro-rated over the life of the contract).

Mouse Print* invited Verizon to comment on this story, but as of publication time, they had not yet done so. This post will be updated should they respond this week.

As we have repeatedly said, companies need to be more upfront about their pricing in their advertising, so their customers are not hit with unexpected charges.

IMPORTANT DISCLOSURE: The editor of Mouse Print* is a compensated member of Verizon’s Consumer Advisory Board, which advises the company on policy and public issues.