Internet

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The Price They Advertise is Not the Price You Pay

  Enough is enough. Isn’t it time that cell and cable companies stopped advertising seemingly low monthly prices for their service, while tacking on a multitude of junk fees, undisclosed charges, and taxes that significantly boost your bill?

Recently the Huffington Post did an exposé, using Verizon FiOS’ new pick your own channel bundle for $74.99 as an example. When you added all the other charges, you actually had to pay over 60% more than the advertised price.

*MOUSE PRINT:

Huffington Post
Click to Enlarge

There were equipment/HD fees, FDV administrative fee, broadcast TV fee, regional sports fee, franchise fee, USF fee, federal/state/local taxes, etc. There could also be installation fees, activation fees, and early termination fees depending on the offer.

Verizon is certainly not alone in tacking on all these fees. Comcast and Time Warner are equal opportunity offenders, as are the wireless cell companies.

Is it any wonder that these types of companies rate low in customer satisfaction surveys and on trust indices?

Maybe there needs to be a requirement, like airfares, that a single all-inclusive price must be the amount advertised, and not these bait and switch prices.

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Elaborate Fake Schools Lure Students, Fool Employers

  Last week, the New York Times featured an extraordinary in-depth investigative piece about a company in Pakistan that has allegedly created over 100 fake high school and university websites (see list) that hand out fake degrees.

Diploma mills are nothing new, but these websites are slickly produced with great graphics, and have detailed information at every link.

Branton
Click above

Many of these schools are adorned with logos from known and unknown accreditation organizations, student testimonials, and even links to reports about the schools on CNN.

Example 1:

This CNN iReport touts the success of Brooklyn Park University:

CNN
Click above

*MOUSE PRINT:

That report really is at CNN.com — no tricks. How did it get there? The entire iReport section is a place for average citizens to upload news stories that they witnessed. CNN has a small disclaimer on each story that it has not been verified by the network.

Example 2:

And then there are student testimonials on some of the college sites like this one:

testimonial 1

*MOUSE PRINT:

What’s this kid, maybe 19 years old? That means, according to his testimonial, that he started working as a supervisor at the age of 12. And it seems he not only got a bachelor’s degree from Woodrow University (above), but he liked the experience so much that he got another bachelor’s degree from Johnstown University — all by about the age of 19.

degree 2

In fact, this guy is a male model and his pictures are for sale on Shutterstock.

*MOUSE PRINT:

Shuttterstock model

Example 3:

And the pay for professors must be pretty low because this teacher of business management coincidentally also moonlights as a model.

*MOUSE PRINT:

"professor"

Scam schools attract two types of students: those trying to pull one over on others by getting a bogus degree, and those who think they are applying to a genuine school to get an online education. Both may pay thousands of dollars for something that is ultimately worthless.

And then there’s another potential victim — all of us — who may come in contact with one of these people who was hired unwittingly by an employer who took their resume at face value without further checking.

The company denied the charges in the NYT story. Nonetheless, Pakistan’s equivalent of the FBI raided the company’s offices, seized computers and arrested 45 employees the day after the story was published. And CNN has removed iReport stories about (only some of) these schools from its website.

May 27th update: The president of the company behind these schools was just arrested in Pakistan.

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Ambiguous 2-Fer Offers

  Everybody loves a bargain, and when a company offers a second product free or at reduced price, that can be an attention-grabber.

The problem is that too often companies advertise 2-fer offers that are ambiguous at best, causing the shopper to jump to a conclusion about pricing that might be erroneous.

Example 1:

4.95 checks

Okay, what are these people offering? Is it two boxes of checks for a total of $4.95 and you get a third box free? Is it merely buy one box for $4.95, get a second box free? Or is it $4.95 for each box, and if you buy two, you get the third box free?

MOUSE PRINT*:

The answer in this case: This is a straight buy one box for $4.95, get another one free. (That’s an amazingly low price until you factor in mandatory handling charges of $3.45 per box.)

Example 2:

49 cents checks

Now, what’s this deal? Is each book of checks 49 cents? Is one box 49 cents when you buy two other boxes for $13.44 each? Are two boxes $13.44 period?

MOUSE PRINT*:

The answer when you clickthrough to their website is that this is a buy one for regular price offer, get the second box for 49 cents. So, apparently the first box is $12.95.

Incidentally, two many of these cheap check printers do not disclose how many checks are in a box. If memory serves correctly, it was standard practice to get eight books of checks in a box, or 200 total. Now some sellers only provide 150 checks, and others only 100.

Example 3:

Staples paper

So cases of paper are $4.99 after rebate at Staples “when you buy two.” So do you have to buy two cases at regular price and then get the third for only $4.99? Or are two cases $4.99 total? Or are cases $4.99 each, but you have to buy two of them to get that price?

MOUSE PRINT*:

In this example, unlike the check ads, the stated price is meant to apply per item. So, paper is $4.99 each case, but you must buy two to get that price each.

With these three examples, you have to wonder if sellers ever look at their offers to make sure that they are clear and unambiguous.