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Best Buy Sued By Ohio
liryon writes "The Register is reporting that the state of Ohio has sued national electronics retailer Best Buy for misleading customers by repackaging used goods and then selling them as new, and for failing to pay rebate claims. The Register report can be found here, and the original story is here. I guess this is what you get for deciding the customer is not always right." See also the Ohio AG's press release.
This kind of reminds me of a fellow often sighted on the outskirts of the parking lot of the shopping center that houses the Best Buy here in Springfield, Missouri, particularly during big sales. There's a landscaped border to the lot, with small grassy ridges and trees and things, and this fellow will bring a lawnchair, thermos mug, perhaps a parasol for shade, and set up right there on the hill overlooking the entrance with a big posterboard protest sign. I can't remember exactly what the sign said--I'm sure he had different ones on different occasions--but it was basically warnings like not to trust Best Buy's warranty plans, don't shop at Best Buy, etc.
I never quite worked up the nerve to approach him and ask him about it, but I did ask a couple of Best Buy servicepeons I happened to encounter while eating in the nearby Subway one day. Apparently the fellow had bought a video camera, damaged it in a fashion not covered under warranty (apparently dropped it over the side of a boat into a lake or something, I can't remember exactly now) and then got upset when Best Buy refused to honor the service plan.
So now he's getting his money's worth back by carrying out this oddball protest. Takes all kinds, I suppose.
Editor Emeritus and Senior Writer, TeleRead.org
I try to shop online to get a 7% discount avoiding the sales tax penalty for local purchases. I would not mind buy locally but I ran into just as many problems at a local retailer as online.
The only rebate I have been denied was for a ViewSonic monitor I bought from BestBuy about 5 years ago. Back then, the rebates stated that if you do not include all necessary documents, you can resubmit. I forgot to include the UPC symbol and that was a $100 mistake. 8 weeks later, I got the letter stating that I did not include all information and that it would not be paid. 8 weeks is longer than the 30-day return policy. I think nowadays, you have the right to resubmit in these cases. Do not really know but I have not ever bought another viewsonic since and I have not ever forgot to re-read the fine print to know exactly what to send. The rebate hand in the middle of the paragraph what to include. I read the bottom that said it needed the receipt and a sticker from the box. It was my fault but I am still mad about that it was a $100 and local retailers only have customer service going for them.
"Firing customers", and now this?
Doesnt look too good for The Yellow Tag.
Why people ever shop at Best Buy I will never know. Sadly I was tricked into going there just last night...
I have a problem with Best Buy at all times of the year but especially at Christmas when they block off lanes so you can only enter/exit in one spot. That way they have an easier time trapping you in there to tell you that they do not work on commissions but that they are happy to help you look for everything they offer.
The second to last time I went to Best Buy I was looking for a wlan CF card for my iPaq. I went to Circuit City first and they had one for $40. I wasn't a huge fan of the maker (never heard of them) so I went to the Best Buy (less than 2 mi as the crow flies). I went into the area with the CF cards and looked at their gigantic selection of two CF cards. Both were over $75. Immediately the vultures descended on me. For once I had a question, "where are the rest of your CF wifi cards?" "That's it." "Wow, these are expensive." I was then dismissed with a wave of the hand and an insult about my lack of wifi CF card knowledge. I told them to start shopping at Circuit City, their discount couldn't even help to match their prices.
So last night I go in there to pick up a SD card reader. Their selection was, again, fantastically lacking. Five card readers. Two took SD the rest were for Sony format. $35.00 was the cheap one. Huh? Newegg.com here I come. So as I am leaving I am asked why I am leaving without buying anything, "Not here for Madden 2k5?" "No, I was here for an inexpensive SD card reader, it's obvious you don't carry those."
Now I was lying a bit when I said it was $35. It *was* $35 but I was not-so-politely informed that I could buy it at $35 and wait X weeks for my refund to come in the mail. Sorry about that Best Buy but I could get I online for $14 including shipping and no need to wait for my money to come back. Perhaps Ohio should force Best Buy to pay interest on the money while you wait for a rebate... Don't they make you pay back all the interest accrued if you don't have it all paid off when their 0% APR offer is done? It would be nice for them to taste their own medicine for once. Perhaps they would care about their customers more if they did.
For Best Buy being on nearly every block here in Minnesota (there are 5+ within a 5 mile radius of me) they suck. How the hell did they get so popular? People are really willing to put up w/lack of choice and expensive prices?
I'm sorry, I forgot I was in Microsoft-taught hell.
an interesting little insight from a disgruntled staff member.
Top 5 things Best Buy doesn't want you to know
I should have posted this long ago. As a former employee, here is an insider's look at the top 5 things from the HT department of Best Buy (where I worked) that I guarantee they do not want their customers to know.
5. Barely legal bait and switch schemes. They push the limits of the laws with many of their flyer ads with some cheap product, like a 40 dollar DVD player to get you in the store, in hopes of encouraging you to buy something better, ie more expensive. That's the salesmen's job under any circumstance, so it doesn't change with these cheapo sales events either.
4. Open box items are usually returned items, not something that just happened to get opened in store, which rarely happens. I've seen many store employees try to avoid saying it was returned, in fear of losing the sale. Also most employees don't take the time to properly label the open box tags so you may think you are getting all accessories when you are not.
3. I've discussed this before, but here is more on this subject. As part of employee training, monster cables are drilled into employee's heads as a part of all applicable sales add ons from day one. In fact it is part of the "Total Solution" mechanism in place that all employess are to follow during their sales routine. Employees are told straight up that monster's products are superior, but never given any detailed reason why this is supposedly so. The employees I witnessed would typically memorize much of the fluff that was written on the package, on their own behalf, as a way to more quickly answer customer questions, preserve "expert" status, and eliminate possible reservations that the customer might have about spending more on something that was already provided in the box. In fact, this was often lied about. Employees don't like telling customers that zipcords come with their dvd player when asked. If they employees are forced into telling a customer, they will be quick to point how poor in quality they are in comparison to monster's products. One manager would actually say "The only thing (the customer) better be using zipcords cords for is to hold their trunk shut after they've just bought something". AR cables and recoton cables are seen as a failure of doing a proper sale at Best Buy and used only as a last ditch effort to get the customer to buy a little something extra. If an employee doesn't ask you "do you want cables, an antenna, blank discs, tapes, etc. with that?" when you are buying an applicable product, then they are simply not doing their job as instructed.
2. Employee know how. There was a recent Home Theater magazine article on the knowledge of Circuit City, Ultimate Electronics, and Best Buy employees. The rag was trying to determine how well each store knew their stuff. I knew what the results of this absolutely retarded article were going to be before I even began reading it, but as a former employee I read it anyway for curiousity's sake. The results, of course, depended on the individual knowledge of the employee that the writers happened to speak to.
Best Buys's policy is for each employee to know as much as they can about the products they sell in their primary area of responsibility. Yet, in order to do so they have to research the product almost entirely on their own time. During slow times throughout the day when you would think an employee could do a little studying, typically this is when the merchandising manager obegins running around being his/her most concerned about the store's cleanliness and the straighntess of the product on the shelves etc., so employees rarely get to know their products that well and also because of the constant product turnover. Also keep in mind when selling something such as a DVD player you can
Payback's gonna be a (mutli-million) dollar bitch, eh Best Buy?
Gives the people at http://www.bestbuysux.org/
some hope....Maybe other states will look into doing the same....Read some of the stories-it's pretty shocking.....
Last time I went in there, they treated me like a total crook, and had the blue shirts follow me wherever I went....Bastards!
-thewldisntenuff
My MythTV HowTo
The customer is not *always* right. The business is not *always* right. No one is always right. That's why treating your customers with respect (which sometimes means saying "no" to the truly asinine requests) is the best way to be successful.
Having been a Best Buy employee for three very long months in 1999, I can tell you that respect for the customer is *far* from BBUY's focus--it's all about PSPs, PSPs, PSPs--that's Product Support Plan, or BBUY's in-house extended warranty. I was told to lie about service policies, suggest that the product would be broken and unusable in a year without the PSP, and even offer discounts off of an item's price up to the amount of the PSP (and I worked in PC & Home Office, so the PSP was $199)--ANYTHING to get the customer to buy the damn thing.
That place is as close to evil as any company that exists. Not honoring rebates is probably in one of their SOP manuals.
If you cater your business to the most vocal, whiny, ignorant, unscrupulous customer, you will fail. "No sir, you can't return those underpants. It appears you have worn them as evidenced by these brown streaks here. Yes sir, I know they say the customer is always right, but I don't have to put up with your shit."
for the first time in years, and it will probably be the last time.
I wanted a bluetooth keyboard for my notebook and some other accessories. I got all the accessories and then I was looking at the keyboards. The sales girl came and said that if I'm going to get a keyboard, I should get the extended warranty.
She didn't even try to see how interested I was in the keyboards or try to convince me to buy one. When I said "that's okay", she said I should read about it and shoved a brochure in front of me. I said "no thanks", and she angrily shoved it even closer and said "I really should at least read it; it's a great deal". I ignored her and she kept trying. I finally just abandoned my cart full of things I'd already decided to buy right in front of her and walked out of the store.
In summary, I didn't RTFA, but I hope this lawsuit breaks them.
I had fun getting Best Buy and Circuit City to go back and forth concerning the 50in TV I have in my living room now. I got the price down 500 dollars just from them going back and forth. J
On August 29, 2003, the Panasonic 27" television that I purchased at the Best Buy store in Columbia, MD was replaced with a model comparable in specification, according to the 4-year Performance Service Plan (hereafter PSP) that I purchased with the unit. The salesperson informed me that, under the PSP, if anything ever goes wrong with the television, I can bring it back to the store for repair or replacement. When the original unit was replaced, the salesperson informed me that, under the PSP, the remainder of the 4-year term of the PSP would carry over to the replacement unit.
Since my roommate and I found a substitute for the unit in the interim, the unit sat unmoved and unopened in my parents' house for approximately 120 days. (Yeah, I know. I probably should have checked it out, but I mean, i didn't really have the room to open this thing, especially when I didn't immediately require its use.) When I opened the unit that was given to me as a replacement, it turned out to be defective, with considerable cosmetic damage in the form of cracks and warps in the case. On January 6, 2004, I returned to the Best Buy store in Columbia, MD to have it repaired or replaced according to the PSP, the salesperson at the store told me that the PSP did not cover physical damage. I told the store salesperson that the unit was in that condition when I opened it. Then the salesperson said that the situation would be different if the unit did not function. I then told the salespeople that I did not turn the unit on, so I did not know if it functioned at all. Once it was determined that the unit did not function, the store salesperson agreed to send the unit to their authorized repair facility, saying that they would contact me when it was returned. They did not contact me. On February 3, 2004, I finally contacted the store myself--at which time I found that the unit had been in their possession for the past 3 weeks--and they told me it was repaired and I could pick up the unit. When I arrived, the store salesperson told me that the unit was not able to be repaired. When I asked for the unit to be replaced according to the PSP, they told me that I must have caused the damage myself, and that it was therefore not covered under the PSP. This is unacceptable, as the salesperson who sold me the unit and the PSP told me that if anything goes wrong with the TV, I could return it for repair or replacement, and since the full disclosure of the terms of the PSP were not given to me until after I purchased it.
So yeah, I probably should have checked it out to make sure it was ok, but I didn't really feel the need - the box had no signs of damage or trauma, was sealed, etc, etc. But that will surely be a lesson to me not to trust Best Buy ever again, ESPECIALLY not their so-called "service plan."
For more stories - FAR more offensive and appalling than this one, I might add - check out http://www.bestbuysux.org/.
a 42 inch widescreen hitachi. Its been working wonderfully.. ..but now I know why the workers there seemed so reluctant to actually SELL me the damn thing, when I flat out refused the warranty. (fyi, most warrantys are total scams. The product is expected to work anyways. The company is under obligation to sell you a working product. If it doesnt work, they have to replace it.)
Heck, they wouldnt even help me and my buds load the thing into the van. _WE_ lifted it onto the trolley bed. WE pushed it outside. WE loaded it onto the bed.
A wonder they gave me an evil eye when i shoved to trolley back into the store. There were SIX employees just watching me and my friends at work.
Yargh. Bestbuy sucks.
Heck, they used to have good deals on dvds, now they dont even have that anymore.
no
I can say that the accusations are 100% true. How do I know this? Because on one occasion, I had a manager personally show me how to operate the shrink-wrap machine. Working in PCHO, the 'printer to push' routinely changed depending on how much ink we had in stock. Being told to sell Packard Bell computers was a hoot, when I knew them to be the shittiest things on the planet. PSP's (extended warranties) were drilled into our collective heads every day, and despite protestations to the contrary, the saleskids *DO* get a kickback from them. That's why they're paranoid about scribbling their employee number on the back of the form. What's incredibly amusing is that after having worked 2 winters and a summer with them, i was spit out by their automated interviewer for being unqualified. The manager wanted me badly, and even reset the program twice and told me which answers to choose, but alas, alack, the computer just knew too much.
Recovering BBuy lackey xxxxxx, stores xxx and xxx.
(Wouldn't they like to know... afterall, I am an eyewitness to their illegal actions)
I suspect that one of these choices is incorrect. Correct.
While I'd really like watching the state collect a huge sum of money for each violation, it would be tough to prove every single violation. The State knows it, BestBuy knows it.
In the end, I expect a big settlement. Best Buy will admit that they have done nothing wrong, and agree that they won't do something wrong again in the future.
The lawyers involved will recieve a payment of 200 million, the state will recieve a check for 5 million. Oh, and the people actually harmed will get some in-store settlement checks.
They'll end up giving out settlement checks for $4.93 to each customer who is or was a resident of Ohio during the time of their doing-nothing-wrong, and end up with a quarter of them actually redeemed, usually spent on items costing ten times the settlement check, ensuring continued profits for the company.
Just once, I'd like to see the lawyers and state paid with in-store credit settlement checks.
frob
//TODO: Think of witty sig statement
I work at best buy as a computer tech, in the new 'Geek Squad' outfit. Every day I deal with customers that were blatantly lied to by the sales people about PSP's. Each product has a different status, some are replaceable, others have to be repaired, for a general rule of thumb, anything over a couple hundred dollars is being sent out to repair. Meanwhile every sales person is told to tell people the PSP replaces products right on the spot for 'any reason'. Also regarding computers, people are also told PSP covers stupidity, by that I mean it supposedly covers any viruses that get in there, or if you hose your Windows install. On top of that the techs dont know anything most of the time and just act as F10 techs, if it cant be fixed in a half hour we're supposed to charge the 60 dollars to do a OS reinstall. Geek Squad is a joke and the people who founded it are too busy reveling in the money that they got when Best Buy bought it out and is treating it as such. We're supposed to have a 48 hour turn around time, falsely advertised as such on the website. Realistically its more like 10-30 days! The stores are understaffed and underpaid, and overworked. Everyone is expected to work on at least 4 computers at a time, but nothing ever gets done, because we're all ordered to sell In-home services and PSP above working on computers and actually getting that stuff done. Don't shop at bestbuy, and above all don't bring your computers to Geeksquad unless you want to wait a couple weeks. But i'm pretty sure if your reading slashdot you probably don't need somebody else to work on your computer! Posted anonymously just in case someone from work reads this!
The easy way to shop at these 'burb chains is the same way you shop in the "camera district" in major cities.
Walk in, tell them what you saw in their ad, tell them what it comes with, tell them that's all your going to pay and that's all you want, no shit, and you want to be holding the item FIRST and inspect it FIRST before you hand over any payment.
Q. "But we can't give it to you at that price without..."
A. "FUCK YOU. Good day." (walk out)
Q. "That price only includes A, B, and C, not D, E, and F, I guess the ad was wrong..."
A. "FUCK YOU. Good day." (walk out)
Q. "We don't have it in stock, but we've backordered it for you..."
A. "FUCK YOU. Good day." (walk out)
Q. "You're going to need X, Y, and Z in order to make it work. Now I know you didn't ask for them, but..."
A. "FUCK YOU. Good day." (walk out)
Q. "That price is acutally only after rebate/only applies to gray market model/only applies to members of our sales club..."
A. "FUCK YOU. Good day." (walk out)
It's easy. Salespeople are assholes or pimply-faced teenagers without a clue anyway, they don't come in any other flavor. Use and abuse them and get what you want, ream them hard in the ass if you can, or walk out with your money and don't give it to the chickenshits.
I normally buy pc stuff online, but any electronic equipment I buy in a physical store 95% of the time I shop at best buy.
I have a best buy card, I buy stuff with rebates all the time, I've successfully used the PSPs. This was all shopping in NY, and OH stores. I have never had a problem with a rebate, return, or anything like that.
I can only conclude that either I've been very lucky for the last 6 years, or else there are alot of morons out there who can't fill out rebates properly and don't know how to finesse their way into a successful return/exchange.
The price is wrong, bitch.
Speak truth to power.
Man, the one thing that cracks me up more than anything.... you know, the $100/ft oxygen free copper wire that supposidly has less resistance therefor better sound than lamp cable from the hardware store...
Anyways, the ignorance finally showed with the release of the TOSLink fiber optic cables used that carry the digital data (SPDIF format I believe).
Monster and other companies sell high grade TOSLink fiber optic cables that, according to the packaging, provide better sound than the factory throw ins.
It costs more than your SC to SC multimode fiber optic patch cords that you would use for a gige switch. Shit, probably more than a SM MRTJ cable for 10gig...
But the truth is, it works just as good as the cheapo. ZERO difference. It is all ones and zeros. I have a 10$ cable I used between a PC and my MD deck, and also between two MD decks. The secret is, there is a hidden option to enter a service mode where you can video the errors received on both toslink and the optical pickup.
The fact it, it is false advertising. Sure it might have more plastic wrapped around it and look cooler, but it is all just a plastic lightpipe (unlike computer cables which are indeed glass). I saw zero errors on the most budget cable out there.
Don't, (jibbie wack), don't believe the hype.
Southeastern Virginia REPRESENT!
I purchased a Toshiba notebook about this time last year. I really needed it because I was going out of town. The local BestBuy was out of stock, but a store about 1hr away had one. They said I could have it shipped down, and it would be there in time, but only if I bought it at that store. Considering there was a sale ending that day, which gave me $150 off the notebook, I thought sure, why not.
... but what didn't make sense to me is why the 3 different people I talked to to make _sure_ it would be okay told me it was no problem.
... as mentioned in many other posts, one of BB bigest problems is many of their employees don't know jack, whether it be about the merchandise or store policy. Though I thought the manager did good though to resolve my first issue.
So, the "delivery" day came and went. No call. I called them up -- the unit hadn't even left the store where it originated from. I asked my local store if I could drive up to get it. They say, "shouldn't be a problem, but call their store first to make sure".
Sound advice. So I called. The person said "Sure! That's no problem what so ever. We have it back in the warehouse."
So, I called my local BB to let them know I actually was picking it up, they said no problem.
I ended up driving through one of the worst thunderstorms of the year to get to this store.
I get there, and after about 30 minutes of hassel, I find out I can't pick up the unit. Even though had my receipts, showing I had purchased the item. My computer was not even a 2 minute walk away, after a 1 hour drive, in the back warehouse. I fought with them for another 30 minutes... no good.
Apparently, since I "bought" the computer at the other store, they had to recieve the merchandise and scan it into their system before I could have it. This made sense to me
Needless to say I wasn't happy. And the manager knew it.
They ended up giving me a $50 gift card for my troubles, and the word of the manager that he would personally deliver my unit to my local best buy in the morning, after which it was all mine.
Sure enough, he did. I was still pretty pissed, however, I felt the manager did what he could. I could understand why I couldn't pick it up (the inventory was not technically their anymore, but my local stores, who needed to scan it into the system), but not why they didn't tell me that before.
Second story. When I first started shopping around for the aforementioned notebook PC, I went to BB. I was looking at the model I was most interested in, but the screen was totally screwed up. It *looked* to me like someone had jacked around with the font settings, and made it unreadable.
So, out of curiousity, I thought I'd see what the computer personel said. I knew from the minute this guy opened his mouth he had no clue what so ever.
He squinted at the screen, trying to read the fonts. Thought about it a minute and said "nothings wrong"
I said "You're kidding, right? Did you notice the fonts?"
"Yeah. I can read them just fine," he said
"Well, I can't. And I have perfect vision"
He said, "Well, I have 20/15"
I almost said "So, a person has to have better than normal vision to use this computer?" but instead I left it as is. I sort of shadowed the fellow for the next 15 minutes or so, to hear some of the "fascinating insights" he had about computers when talking with other customers. After one, I spoke with the customer after the fact and made sure he was *properly* informed before I finally left the store.
Anyway
I can't begin to say how happy I am to hear that Best Buy is getting theirs!!
... We don't carry that unit any more. We'd be happy to give you some money that you can spend in Best Buy on another MP3 player.
...
... ever ... ever ... purchase anything from Best Buy ever agian.
Personally I've been missled by their sales associates. I purchased a 40gig Nomad MP3 player. At the time of purchase the sales associate said that I should buy a service plan. His argument was that the batteries are expensive to replace. And with the service plan I just bring in the device and they replace the battery.
Sounded resonable.
Six months later the battery dies.
I bring back the unit and explain that I had the service plan and that I needed a replacement battery. I was told that Best Buy would only replace the entire unit.
Oh and by the way
What! Crazy!
I bought that item on sale. There's no way I can get something comperable and maintain the value of purchasing something on sale.
Okay
Refund the money I spent on this service plan. It is clearly designed so that I can never utilize it.
Best Buy's response: NO
I ended up having to pay $40 for another battery.
Which, by the way, is what I spent on the service plan.
I will never
ever.
--The Dude
Well, while she was taking her final I decided I would go to the local mall and hang out for awhile to burn some time. I ended up at Best Buy (most guys, when left to their own shopping accords with no woman at their hip and money to burn, will end up at an electronics store. Call it Jay's Law). Anyhow, I went inside and was glancing at everything: computer stuff, DVDs, video games, TVs, stereo stuff, etc., basically deciding what I wanted to get that day. I didn't have a cart on me in their defense just because I may have gotten a DVD or a stereo; I wasn't sure yet.
So, about 15 to 20 minutes into the excursion I notice a pretty big guy in tattoos looking at The Sims' latest expansion. A little odd, I decided, that this wanna-be biker guy was checking something like that out. I filed it in the back of my mind and went to look at digital cameras.
Not 5 minutes later I am leaving digicam land to examine TVs and, while deciding between one model and another (had my mind made up at this point as to what I wanted) who do I see but Mr. Tattoo "looking" at plasmas. Now I know I am being tailed. Having time to burn, I decide to have fun with this.
I abandon TVs, deciding any major purchases from this point on will be done at Sears or CC. I walk over to the car stereo section, and change the display test model to the most annoying rap station I could find, then proceed to blast Puff fitty cent or what-have-you at an annoying level. I get the "can I help you?" not too long afterwards and start chatting with the clerk about what subwoofer is the best. Dollar signs in his eyes, I proceed to listen with half an ear as he extols the latest and greatest 12" with case and built-in amp. Meanwhile, I catch tattoo guy moseying on over to check out - I shit you not - Celine Dion CDs that are stationed close to the stereo section!
Breaking the poor salesguys's heart, I interrupt his explanation of how badly I'll need a PSP on the sub and ask him straight up does tattoo guy work for you? He glanced over at the guy and looked back at me and gestured me over to the cable section and said "Yeah, he does. He's security."
I thanked him, walked out the door, and was halfway to my car when I felt a tap on my shoulder. There, in the parking lot, was a manager (the name tag alluded to that fact) and a blue-shirt I hadn't remembered. They asked me to come back inside. Having yet another half hour to burn and wanting to clear my name, I went back in. I was escorted to an office. I was asked why I was wandering from dept. to dept. aimlessly. I was asked where was the DVD I stole. On and on. Finally Minnesota's finest shows up. I plead ignorance, knowing I had done nothing wrong. Finally it comes down to tape (I am running behind at this point, and I don't have my cell on me to call my sister and let her know what's happening. Best Buy, of course, won't let me make the local call. Meh, whatever. I'm having fun.)
So, in true NFL action, it comes down to me and the tape. The tape ends up clearing me; at no point do I do anything with any DVD except look at the back of it. After all that, I am escorted from the store by the cop, who says this happens waaaay too often, and told by the manager that I am not allowed there ever.
Needless to say, I'll never browse or buy at a Best Buy again. Their loss; I went to Circuit City and was met with the best of sales staff and dropped $300 on a new TV.
One thing I do recommend when you get good customer service though is to talk to a manager or send a letter. Yeah, it takes 15 minutes from Doom 3 and a stamp, but the feeling afterwards is well worth it. I even got a hand-written letter from the CC employee and a $5 gift card for my feedback. To this day, that $5, the letter, and the amazing customer service has done more for their business for me than anything else. I continue to shop there to this day and extol their virtues to others.
"This food is problematic."
I am a former employee of Best Buy and a current resident of Ohio - I won't say who I am or what I did there but my former supervisor is on their website, on the Executive team list.
I can confirm their rebate practices are less than stellar. For years Best Buy had a "rebate center" in each department that consisted of a rudimentary wire recipe rack, for lack of a better description, with paper coupons from each respective manufacturer. Customers were supposed to use the coupon from the rebate center, send it directly to the manufacturer and wait patiently for 6-8 weeks for their rebate. It was totally hands-off for Best Buy.
Unfortunately, that didn't work very well. Stores were frequently out of the rebate coupons, didn't have the correct ones, the manufacturers would send the wrong ones or too few - whatever the case was, it turned out to be a tremendous headache. Not to mention the "recipe racks" were hard to keep organized and the rebates were freqently misplaced.
Fast-forward to ~1996. In an effort to streamline the process and take some burden off of the sales personnel, the merchandising dept (shelf-stockers) were handed a brand new, nifty, Rebate center that went in the front of the store, organized by department that really ended up just consolidating the recipe racks to a central location. The problem still existed of the missing, disorganized rebate coupons.
Later that year Best Buy decided to make a real effort to fix the rebate problem. That's when the current system was implemented. Corporate management decided to outsource the handling of rebates to Young America, Inc. (www.young-america.com).
Young America did a decent job of handling the rebate outsourcing for a very brief time. I can't speak intelligently of their corporate structure, governance, or policies. However, all of this rebate outsourcing occured during an explosive growth period in Best Buy's corporate history. They are currently opening about 50-60 stores per year in 2004. Between 1993 and 1997 they more than doubled thei size. They had a corporate paradigm shift during all of this when they realized that they were outgrowing their ability to manage it and continue providing the kind of service that enabled them to grow at that rate.
Unfortunately, it seems, the growth spurt never stopped. Eventually the over-riding vision was to break the $20 billion revenue mark. Add-on accessories and service plans became the pot of gold at the end of their rainbow and rebates became the tool to get the sale. This all happened in the mid to late 90's when computer prices were falling rapidly, DVD players were becoming affordable, and the dotcom boom was impending - manufacturers were pushing rebates like mad thus Best Buy was too.
Outsourcing the rebate processing was a mistake for Best Buy. Not that Young America can't handle the volume or the execution - It's because it enables Best Buy to take the hands-off approach and essentially tell its customers that it can't help them because it's being handled by another company. This presents the largest problem for them - they won't stand behind their rebates. Anyone that has tried to resolve a rebate issue should be able to attest that managers at the store level will not do very much to assist in the matter other than hand out the 800-number to Young America. This is unfortunate because the consumer purchased a product from Best Buy and typically makes no distinction between a manufacturer's rebate and where they purchased the product. Consumers rightfully expect a retailer to stand behind the offer they willfully advertised in a weekly sales flyer, not give a brush off that they aren't responsible because the rebate was offered by the manufacturer and is being handled by a third party.
It's not that they willfully and maliciously try to swindle their customers - They truly believe that it absolves them of the responsibility to provide the customer satisfaction in regards to reba
If you do what you always did, you get what you always got.