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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:

quickenwarn.jpg

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

quickenpopup.gif

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):

quickensunset.jpg

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.

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ID Vault: Million Dollar Protection Policy?

With so many phishing attacks and incidents of ID theft occurring, many consumers are leery of entering into any financial transactions online.

Where there is fear, however, there is also a business opportunity to allay those concerns. Enter ID Vault. It looks like a thumbdrive that you plug into an available USB port on your computer. It stores your usernames and encyrpted passwords, and automatically transmits them securely when you log into a financial or retail website. It can also determine if you are visiting a real site, or a scammer’s copy. Bottomline: it protects you.

They are so sure of their technology that they offer a “$1,000,000 Guarantee” that promises to cover your losses if your login credentials are stolen and used fraudulently. Quoting from their press release:

Consumers can now bank, shop and invest online with total confidence, knowing that even if their personal information were stolen while using ID Vault, GuardID will reimburse them for any losses up to $1 million.

“We are so confident that ID Vault 2008 will protect consumers from online identity theft and fraud, that we put our money where our mouth is, and will refund any losses consumers incur, up to one million dollars, when using ID Vault,” said Jerry Thompson, CEO of Guard ID Systems.

And on their website, here is the big print of their $1,000,000 Guarantee:

ID Vault guarantee

Of course the devil is in the details.

*MOUSE PRINT:  The company may have led you to believe you will have more coverage than they actually will provide (depending on the circumstances). They will only cover you up to $100,000 per account, not $1,000,000 as you might have expected.

“Should we determine that the account was exclusively accessed online using ID Vault prior to the theft of your account credentials, we will reimburse any direct loss, up to $100,000 per individual account and up to a maximum of $1,000,000 over the lifetime of your ID Vault subscription and subsequent renewals.”

In a sense, that is like buying a million dollar fire insurance policy, but only being able to collect $100,000 per fire. Granted, if you are lucky enough to have a millon dollars, and spread it out over 10 different accounts, then you would indeed be qualified to be reimbursed for $1,000,000.

The restrictions in the policy also require you to be 100% faithful to ID Vault as the means of logging into your accounts. You cannot access them on your work computer, or anywhere else, unless there is an ID Vault attached. (And they will compare your financial institution’s records of your accesses with the list of accesses tucked inside your ID Vault. If they don’t match exactly, you lose the coverage.) 

So, what may seem like a simple $1,000,000 guarantee promoted in advertising, is in fact full of strings and loopholes, as any other insurance policy would be.