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Congratulations, You’ve Won (NOTHING) at Car Dealer

Have you ever noticed the way some car dealers advertise to get you into the showroom? They often promote a variety of sweepstakes with terrific prizes.

One such car dealer in North Carolina recently ran a “$25,000 Monte Carlo Game.” They sent out lottery-like tickets inviting recipients to scratch off the boxes and if they got a match, they would win between $100 and $25,000.

Buick Scratch Off

A consumer who got the mailing scratched off the various boxes as shown above, and the second row matched with three 7’s on both sides. It looked like he won $5,000, so he called the dealer and was told to come right down to the showroom. When he got there, there were a whole lot of other people huddled around a prize table that had been set up. The consumer was then told that he had to check the confirmation code on the board to see if it matched, and of course, it did not. He was then given the bad news that he did not win the $5,000. And they pointed to a small asterisked disclosure that said as much:

*MOUSE PRINT:

asterisk

Our consumer rightly felt that he had been scammed and complained to the state Attoney General and the consumer reporter at the local TV station. WRAL ran a story about the promotion. They spoke to a lawyer representing the car dealer who asserted that the mailing was not misleading, but could have been misunderstood by recipients.

Right now, the North Carolina Attorney General is investigating seven dealerships in the area who are promising everything from cash to new cars.

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Wayfair’s “Way Day” — Deal or Dud Day?

Playing off of Amazon’s wildly successful “Prime Day” last July, Wayfair.com declared its own holiday savings event last week called “Way Day.” In TV ads, they claimed to offer the lowest prices since Black Friday on that day.

Way Day

To see if “Way Day” was hyping more discounts than they were actually providing, MrConsumer “randomly” chose 10 items from their various merchandise categories the day before Way Day, April 24, so they could be compared to the discounts offered on the same items the following day. We had no idea which items would be on sale and which would not be.

Wayfair before

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“Way Day” arrived, and here are Wayfair’s prices for the same items during their big sale.

*MOUSE PRINT:

Way Day prices

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Obviously, only checking 10 items is not a scientific, projectable survey. Nonetheless, the results of this spotcheck are interesting. Half the items were the same price or virtually the same price on “Way Day” compared to the day before. For example, the Price Pfister faucet was $82.86 on Way Day compared to $82.99 the day before. The GE dishwasher, however, didn’t even budge a penny from its $803 price.

But there were significant savings on some of the other five items. The pair of lamps dropped from $75 to $60.99. The rug went $277.99 down to $182.06. But the barbecue grill was only $6 less.

In total, the 10 items in our cart were selling for $1923.69 the day before the sale, but dropped to $1773.90 — for a “Way Day” savings total of $150.

So it looks like if one picked and chose carefully on “Way Day” and were familiar with Wayfair’s everyday prices, you could save some real bucks. Otherwise the savings might have only been slim or none.

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Walk Through Kohl’s Doors and Lose Your Right to Sue?!

Mandatory arbitration clauses that forbid class actions have been in the news lately as Congress and the president last fall struck down a new consumer rule prohibiting such clauses in contracts with banks.

Way before this action, Kohl’s department store cleverly stuck a clause into the terms and conditions on its website banning customers from getting together to sue the company.

*MOUSE PRINT:

Kohl's class action waiver

It is not so out of the ordinary to see arbitration clauses forbidding class actions on retailers’ websites. What is unusual is the fact that Kohl’s seems to be saying that this restriction even applies to people who shop in their stores.

*MOUSE PRINT:

Kohl's waiver 2

It says if you shop in their brick and mortar stores you are subject to the same restriction, and that “shopping in our stores constitutes your acceptance these terms.” Elsewhere in the terms it says if you don’t like these restrictions “you should not and are not allowed to…make purchases in our stores.”

What? So merely walking through the doors of a Kohl’s store I lose my right to be part of a class action against them? It sure seems so. (There is an argument to be made, however, that the combination of BOTH using their website AND shopping in their stores is what triggers the class action restriction. However, if that were true then only people who did both would lose the right to sue and certainly Kohl’s wants to prevent Internet users who never shopped in their stores to be covered by the class action prohibition.)

We asked Kohl’s how in the world the class action waiver could ever apply to people who only shop at their stores and were never put on notice that entering their stores triggered this restriction. (Last I checked, there was no notice on every door notifying shoppers they were about to lose those some consumer rights upon entering.)

The company did not respond.

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