Retail

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Kleargear.com: Complain About Them, Get Dinged $3500

An Internet seller of novelties, gadgets, and toys found a unique way to discourage customers from writing negative reviews about the company. It threatened to bill customers $3,500 for taking any action that negatively impacted the company’s reputation or products.

Jen Palmer and her husband found out about this policy the hard way when she posted a complaint about the company online after waiting over 30 days for her order:

KlearGear story
Watch KUTV TV news video

Three years after she posted the complaint, her husband received a bill for $3,500 as a penalty for his wife having posted the complaint online, and his nonpayment of the “fine” was reported to the credit bureau.

How did the company make known to customers they could suffer these consequences for exercising their constitutional right to free, truthful speech? The provision was tucked in the “terms of use” section of the website.

*MOUSE PRINT:

KlearGear terms

The company defended its practice to the TV station, but curiously that penalty clause has now disappeared from the company’s website.

Nothing like a little media attention to an outrageous practice to bring people to their senses.

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What’s the Beef?

It is, or should be common knowledge that some supermarket chains “zone price.” That means the price of items can vary from one neighborhood to another, usually depending on the level of local competition.

Stop & Shop, a large regional chain in the Northeast, uses zone pricing so it was no surprise that one of its big featured items recently was advertised at different prices in different stores.

What seemed like a very good price reduction, 40% off on porterhouse steaks (usually $11.99/lb, now $7.19) was actually lower two towns over where it was advertised for only $4.99 a pound.

SS Choice SS Select

MrConsumer raced to the meat counter to look at the $4.99 steaks but was immediately disappointed because the steaks were not well-marbled — a sign they would not be a very flavorful or tender steak.

*MOUSE PRINT:

The reason these steaks were cheaper also became apparent — they had a “Select” sticker on the package.

Most beef sold at retail is graded by the USDA. The highest grade is “Prime” followed by “Choice” and then “Select.” While “Select” steaks may be healthier because they are less fatty, they are likely not as tasty, tender, and juicy as a “Choice” or “Prime” steak.

If you look back at the advertisements above, you will see the USDA Choice shield on the steak on the left, but it is missing from the steak on the right. The steak on the right says “Select Fresh Bone-in New York Strip Steak, …” The average person would probably have skipped over the word “Select” because it appears to be used fancifully (like “hand-picked”) rather than indicating that the advertised steak is USDA Select grade.

While one might reasonably expect the advertised price to vary from one location of a chain to another, one would not expect the grade or quality of the same advertised product to be different as well.

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Target Finds Sneaky Way to Make Robocalls

Target’s red debit card provides a host of benefits that few department stores offer: free shipping with no minimum from their .com store, an additional 5% discount off most purchases, and a 30-day extension to their regular return policy.

When MrConsumer recently applied for a Target debit card, he was taken aback by the company’s tricky maneuver to allow it to make robocalls to its cardholders’ cellphones.

When one applies for the card in-store, you fill out the simplified application that appears on the little signature screen of the credit card terminal at the customer service desk. In addition to entering your social security number on one screen, and your date of birth on another, two screens also come up requesting your home phone and cellphone numbers.

*MOUSE PRINT:

Target

On the left of the two phone number screens is a disclosure granting Target permission to make robocalls to your cellphone. MrConsumer only provided a home phone (a landline) and left the cellphone screen blank. The application did go through.

Why did Target tuck that disclosure into the on-screen process, while leaving all other disclosures to a fine print booklet? The reason is that the FCC requires companies to get the consumer’s explicit written permission before any robocalls or texts can be made to a wireless telephone.

Most consumers probably won’t catch the disclosure, and won’t they be surprised when Target targets texts to them.