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Yuuup, Storage Wars Auctions May be Rigged

Storage Wars MrConsumer admits it — he is a fan of Storage Wars, the A&E cable series. In the show, the contents of abandoned storage lockers are auctioned off each week to the highest bidder. There are four recurring and quirky cast members, who, along with members of the public, bid blindly on these storage lockers in the hopes of finding some treasure amongst the junk. The cast members almost always win a storage locker in each auction, and many times they find an antique or other unexpected treasure worth thousands of dollars.

Now, one of the four regulars, Dave Hester (famous for placing bids by exclaiming “yuuup”), alleges in a lawsuit that the show is rigged. He claims, among other things, that the producers “salt” lockers with high-value items to heighten excitement when a successful cast member “finds” it, and that they assist the less well-financed cast member bidders who would not otherwise have enough money to pay for the storage lockers on which they are bidding.

Hester spoke out about these problems to A&E executives, suggesting that these practices were in essence rigging a game show, which is against federal law. Hester says he was then fired after the producers had already exercised an option to renew his $25,000 per episode contract. He filed a lawsuit against them last week.

*MOUSE PRINT: Excerpt from lawsuit:

Storage Wars suit

As a regular viewer, MrConsumer always wondered about several things in this “reality” show:

1. With dozens of bidders present at most auctions, how is it that the cast members almost always seem to be the winners?

2. Why would cast members bid often thousands of dollars for abandoned junk, that on its face, is worth no more than a few hundred dollars?

3. If such valuable items were stored in these lockers, why wouldn’t the true owner have paid the minimal storage bill or removed the valuable items before failing to make monthly payments?

4. With cast members seemingly only bidding against each other as the prices rose beyond what an average citizen would bid for a pile of used household goods, were the producers subsidizing those above fair market value bids?

Now we may know the answer.

*MOUSE PRINT:

As we have asserted before, some of the worst mouse print is the mouse print that is missing. There is no disclaimer in the television program credits stating that the producers of the show offer financial assistance to some bidders and that some items are “found” for dramatic effect.

A&E has had no comment on the lawsuit yet, but earlier this year said in a statment, “there is no staging involved. The items uncovered in the storage units are the actual items featured on the show.”

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Apple iPad Version Changes Confuse Buyers

Last week, one retail chain was offering the iPad “3” for only $399.99 — $100 off the regular price. [Hint: if you run to Micro Center, you might get one. Ends 12/12.] MrConsumer’s friend who had just purchased an iPad 2 for the same price was not too happy, but he wondered how in the world this chain could be selling the iPad “3” for $100 less than the full list price knowing that Apple closely controlled advertised retail prices.

As it turns out, Apple had recently discontinued the iPad “3” and had quietly introduced an iPad “4”, which might explain the discount. Much of the confusion, however, has to do with Apple’s decision not to explicitly name each new iPad by number. There was the original iPad, then iPad 2, then iPad (no number, but referred to by retailers as “third generation”), and now iPad with Retina Display (again no number, but referred to by retailers as “fourth generation”).

So if you are looking for the latest “iPad”, you might wind up with either the “iPad 3” or the “iPad 4” because they are both just called iPad (sans number). What is the difference between the two? You have to look at the fine print.

*MOUSE PRINT:

iPad 3 and 4

They both have the same gorgeous Retina display. The primary differences are three for the iPad 4: the Facetime camera is better, the processor they say goes twice as fast, and iPad 4 has that new obnoxious connector that makes all your old i-accessories obsolete.

So, if you are shopping for an iPad, and you pick up a box, how do you know if it is an iPad 3 or 4? You have to look at the tiny label to find the model number.

*MOUSE PRINT:

ipad 3 label

One 16-gig white iPad 3 has a model number of MD336LL/A for example, while a similar iPad 4 has a model number of MD513LL/A.

In our view, Apple made a big mistake to not clearly identify iPads after the iPad 2 by number to avoid consumer confusion.

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AMEX Allows You to Opt-Out of Mandatory Arbitration

In a rather unusual move, American Express is letting cardholders opt-out of the mandatory arbitration provision in their credit card agreements.

*MOUSE PRINT:

AMEX

The rejection notice (a sample is here) must be mailed by February 15, 2013 or 45 days after you make your first purchase with the card, whichever is later.

They are also instituting a mediation program to resolve disputes. But, the new agreement requires if you are not able to resolve the problem with customer service, that you file a notice with them before resorting to mediation, arbitration or court.

Why did AMEX decide to let you opt-out of required arbitration?

One consumer lawyer put it this way: “Just another attempt to make the arbitration provision bulletproof. What could be fairer than giving consumers the choice to opt-out?”

Everyone knows that opt-out rates are very low, and since there is a relatively short deadline, few people are likely to do it. The result: virtually all cardholders will be left without the legal remedy of going to court over a major problem (or be part of a class action for smaller but widespread issues).

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