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Verizon FiOS: Price Increase Masks Upgrade

Verizon has been rolling out its FiOS fiber optics service and has touted its benefits in advertising. Like other providers, the company has been offering a “triple play” — telephone, TV, and Internet services in one package for only $99.99 a month.

Last year’s ads typically looked like this:

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While in the big print it claimed “fastest Internet, period”, the package they were advertising actually  provided the slowest speed FiOS offered:

*MOUSE PRINT: “blazing-fast 5/2 Mbps.”

A download speed of 5 Mbps is nothing special (except compared to dial-up and slow DSL speeds). In fact, Comcast’s standard download speed is 6 Mbps. So, some people not knowledgeable about comparative speeds could have been misled.

Fast forward to 2008. Sharp-eyed consumers may have been dismayed to see Verizon’s current advertising for the triple play because the price was no longer $99.99 but rather $109.99.

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This time, the company made no superiority claims about the “fastest Internet”, but buried the most important fact in the fine print:

*MOUSE PRINT: “20/5 Mbps blazing-fast Internet”

Verizon actually quadrupled the download speed and more than doubled the upload speed for only $10 more a month (plus a “free” HDTV), when you sign a two-year contract.

For once, the mouse print had good news for customers.

Disclosure: Consumer World, the publisher of Mouse Print*, is a member of Verizon’s Consumer Advisory Board, and receives a small contribution from Verizon to carry out its consumer education mission.

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Quicken: The Software That Becomes Crippleware

quickendeluxe.jpgSince the beginning of January, owners of Quicken 2005 have been bombarded with reminders (via pop-ups when starting up the software, and by mail) that on April 30, 2008 many important features of the program will stop functioning. Mouse Print* this week will examine the stark contrast between these current elaborate disclosures and how poorly new customers are warned before purchase that the software will become substantially disabled in three years.

In a January mailing to Quicken 2005 customers, the company warns:

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When starting up the software in 2008, this pop-up warns of the forthcoming crippling:

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For many users, the ability to download statements from their bank and stockbroker monthly, get stock quotes, as well as being able to pay bills and transfer money online, are key reasons to use Quicken.

After presenting the bad news, Intuit, the maker of Quicken, offers the solution: buy an upgrade to Quicken 2008. In the past, for many users this has not been a huge issue because Quicken Basic has always been free after rebate when purchasing the company’s tax preparation software, TurboTax. This year, as noted in last week’s edition of Mouse Print*, the company discontinued Quicken Basic and made its substitute product (Starter Edition) incapable of importing existing Quicken files. That forces customers to buy an upgrade for $59.99 (less during promotions) to Quicken Deluxe.

Incidentally, the company says it is costly to support prior versions of Quicken, and that is why they discontinue these critical functions every three years. They apparently have not changed the technology they use to communicate with banks and brokerage firms, however. That would have been an understandable reason for the nonfunctionality. It appears that the company just deliberately disables the online functions to enable it to generate more income from current owners.

Okay, so Quicken has a three year life for certain important functions. How do they convey that critical limitation to prospective customers?

*MOUSE PRINT: On the spine of the 2008 box, buried within the copyright notice, in type so small the actual notice is less than an inch wide, it says (enlarged below):

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The disclosure merely says that online features are subject to change in accordance with the “discontinuation policy” (previously called their “sunset policy”) listed on their website. The “subject to change” language also appears in a tiny footnote on the back of the box. Similar non-specific notices appeared on the 2005 Quicken box.

In no way, shape, or form is this adequate notice that the Quicken product you are about to buy will have key features of the software disabled/crippled in April three years after the date on the box. The essence of consumer protection (and fair dealing) is to provide the customer with all the relevant facts before purchase so they can make a more informed buying decision.

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Retailers’ Return Policies: The 2007 Fine Print

Over the last few years, retailers have been busy tightening their return policies to reduce the incidence of both fraudulent returns and those made by consumers taking advantage of the store. Here are the links to major retailers’ policies, and all their fine print.

*MOUSE PRINT:

Holiday Return Deadlines and Restocking Fees

Amazon.com Jan. 31 (most items shipped 11/01 through 12/31). 15% restocking fee on open computers. Additional rules may apply.
Best Buy January 31 for purchases November 1 or later; 15% restocking fees on certain opened items.
Circuit City January 25 most items; Jan. 8 for 14 day items including computers; some 15% restocking fees.
Costco No deadline (but 90 days for TVs, computers, cameras, port. music players, cell, projectors)
Kohl’s No deadline (with receipt)
Macys.com 180 days from purchase; 25% restocking fee on furniture.
Marshalls January 5 (for purchases Oct. 28 – Dec. 5).
Office Depot By January 25 for furniture and technology purchased November 15 or later.
Overstock.com By January 10 for items purchased November 1 or later. Fees apply if opened or used.
Sears 90 days; 30 days home electronics, mattresses; 15% restocking fee in many categories.
Staples No deadline for office supplies. (January 6 for electronics & furniture bought since Nov. 23)
TJ Maxx January 5 (for purchases Oct. 28 – Dec. 5).
Target 90 days from purchase (15% restocking fee on portable electronics, digital cameras, camcorders; specially marked clearance items only qualify for current sale price).
Toys R Us 90 days (45 days for unopened electronics, video products, collectibles, more). For online orders, postmark by January 4th.
Wal-Mart 90 days (15 days [PCs, portable players], 30 days [cameras], or 45 days [PC accessories.])

Many happy returns.