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Some Newegg Customers Received Fake Intel Core i7s

Several readers have mentioned the strange goods that some customers received from Newegg in place of the Intel Core i7 920 processor they ordered. Word on the problem first surfaced on TribalWar on Thursday evening. Newegg still hasn't commented on this. It's not known whether it happened as a result fraud by another Newegg customer, in shipping, or where. The "processors" are made of aluminum, and the "fans" are some kind of synthetic molded material. The "factory seal" was printed onto the box; the holographic stickers on the boxes were also faked. The first part of this video shows the bogus goods. At this writing Google News lists a handful of blogs mentioning the fakes.

25 of 447 comments (clear)

  1. Re:Display models? by jonbryce · · Score: 4, Insightful

    The display models would come in real boxes with correct spellings, possibly with some disclaimer about the parts inside not being real.

    Also the parts inside would probably be real ones that failed quality control so they would look a lot more realistic.

  2. Dropship? by John+Hasler · · Score: 2, Insightful

    Does Newegg warehouse their stuff themselves or have it drop-shipped?

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    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  3. no way newegg's fault by crazybit · · Score: 4, Insightful

    They won't shoot themselves on their foot like this. As someone said, problem must be in some other part of the distribution chain.

    Newegg's reputation is a critical part of their business, people buy on newegg because they expect that - on these type of situations - newegg won't screw the customer.

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    - Human knowledge belongs to the world
  4. Been a newegg.com customer for a long time by erroneus · · Score: 4, Insightful

    There is no way they are directly involved and there is no way they won't make good on the substitute goods. NewEgg will likely ship out replacement processors to those who got fakes and deal with the matter themselves. From all my experiences with them, they have given me 0.00 trouble when dealing with a return or exchange. There are few companies I recommend to anyone, but newegg is one of them. There will be no "egg" on their faces when this is all settled. Above everything else, newegg values its reputation and treats its customers right.

    (Should they not send replacement processors to the customers, I will presume there is good reason... they have always treated me well.)

    1. Re:Been a newegg.com customer for a long time by erroneus · · Score: 2, Insightful

      Dang, you're right... and when I have a problem at target or walmart, they always send a limousine to pick me up!! If I had to drive myself to target or walmart to deal with returns or defective stuff, I would think that would be kinda parallel to the returns policy of newegg, but since I get free limousine service when I need to resolve a problem with target or walmart, I think you are right -- newegg is a bit cheap when they have policies like this.

    2. Re:Been a newegg.com customer for a long time by Pyrion · · Score: 2, Insightful

      Except when it doesn't happen. That's the problem with inconsistency. It's great when you actually get that kind of service, but if great service isn't official policy, then you cannot reasonably expect to get great service all the time. Whereas you can reasonably expect to get screwed by them sometime, even if it's statistically unlikely.

      --
      "There is much pleasure to be gained from useless knowledge." - Bertrand Russell.
  5. asian counterfeits? by unix_geek_512 · · Score: 5, Insightful

    These look like professionally done asian counterfeits to me. It's quite likely organized criminals are involved since it took a lot of resources to custom print the boxes and labels, and make the foam HSFs and fake cpus.

    This isn't something the average joe or jane can do in his or her grandma's basement, you've got to have access to professional printing equipment at the very least.

    Chances are a substantial number of real CPUs were stolen and replaced with these fakes.

    1. Re:asian counterfeits? by nurb432 · · Score: 2, Insightful

      Its not THAT hard to do this at home. Good color laser and good paper could do the box. The rest, any highschool student with some basic tools could do.

      Rather funny if you ask me, I'm surprised its taken this long for something like this to happen in the mainstream

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      ---- Booth was a patriot ----
  6. and your worried about counterfeit TUNES? by Anonymous Coward · · Score: 4, Insightful

    ya like this is what they really should be focusing on organized CRIME
    not some kid downloading a music or tv episode.

  7. Reputation by sconeu · · Score: 5, Insightful

    Look at all the comments here. Reputation is a major thing.

    If a company has a reputation for doing right by its customers, as long as addresses a situation like this, it will be OK.

    Now compare this to the reputation that Fry's or Tiger Direct had (don't know if either has improved). Would they get the benefit of the doubt this way?

    Just goes to show that doing good is just good business.

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  8. Not buying Neweggs explanation by viking80 · · Score: 4, Insightful

    "Newegg is aware of a shipping error that occurred with certain recent orders of the Intel Core i7-920 CPU. After investigating the issue internally it appears one of our long term partners mistakenly shipped a small number of demo boxes instead of functional units. Our customer service team has already begun proactively reaching out to the affected customers. In line with our commitment to ensure total customer satisfaction, we are doing everything in our power to resolve the issue as soon as possible and with the least amount of inconvenience to our customers."

    Why would Intel make a demo box with multiple spelling errors like a poor chinese user manual, and include stapled blank paper and broken plastic parts, and then get it mixed up in the mfg. channel? NO CHANCE. PERIOD.

    This is obviously corporate communication lies. I wonder why Newegg, with a large set of loyal customers feel the need to lie so blatantly to its customers. Do they think they are idiots, or is lying just accepted?

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    1. Re:Not buying Neweggs explanation by icegreentea · · Score: 4, Insightful

      They're probably repeating exactly what their supplier told them. Yeah, sure it sounds fishy to Newegg. But until they have actual proof of what happened, its not very nice to go about accusing a long time partner of naughty deeds (or broadcasting that to the whole world... they're probably sending some really angry emails and phone calls right now). Remember, when you have long term suppliers and buyers like this, you actually create a real relationship, and that relationship is worth more than just the money and product changing hands. You don't want to terminate or damage that relationship more than you have to.

    2. Re:Not buying Neweggs explanation by ryanw · · Score: 2, Insightful

      Remember, when you have long term suppliers and buyers like this, you actually create a real relationship, and that relationship is worth more than just the money and product changing hands. You don't want to terminate or damage that relationship more than you have to.

      Agreed, but how many people are going to be skeptical to order from newegg now due to trying to protect the relationship with the partner. Newegg might want to not reitterate whatever the supplier is saying in protecting themselves a little more. A statement like this would be more effective, "We have received a limited number of complaints from customers receiving their orders. We are immediately sending out replacement products to these customers and will investigate this situation to insure it doesn't happen again."

      This wouldn't throw anybody under the bus, keep everyone at ease thinking that newegg backs their customers, and then they can work on figuring out the situation at hand.

    3. Re:Not buying Neweggs explanation by tftp · · Score: 2, Insightful

      It is entirely probable that these items were just 'demo units' meant for store windows and displays

      A demo box wouldn't contain anything inside. It would have anything you need just printed on the surface of the box. It wouldn't be weight-matched to the real deal. And it wouldn't include a stack of blank paper. Finally, it wouldn't include the fake CPU. If you must have something there, it would be a piece of cardboard with a photo, but as I said there is no need to have anything inside of a demo box. The box wouldn't have spelling errors either.

  9. Re:Video Games by interval1066 · · Score: 3, Insightful

    Agreed, seems a little elaborate for a customer or even Newegg insider, I wonder if their supplier is playing fast and loose with the merchandise. A white plastic mold of a fan with a sticker of flan blades on top? That's going far for a simple return.

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  10. Re:Newegg has responded by interval1066 · · Score: 3, Insightful

    The first link says "After investigating the issue internally it appears one of our long term partners mistakenly shipped a small number of demo boxes..."
    My ass. Demo units with misspellings? Give me a break.

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  11. Re:Newegg has responded by Captain+Spam · · Score: 5, Insightful

    It's called "diplomacy" and "dodging potential legal charges". Yes, a statement like that, given what people are saying, sounds ridiculous and utterly absurd to us, but what are you expecting them to say on official or semi-official channels? "After investigating the issue internally, it appears one of our long-term partners are fucking retards who thought they could get away with blatant fraud"? Saying anything like that would get them run up on slander in a heartbeat. Even implying it was anything remotely illegal on their distributors' ends could get them in legal hot water. Even if they could prove beyond the shadow of a doubt that it was willfully fraudulent and a company-wide conspiracy at the distributor to screw over Newegg and its customers, they'd still have legal fees and time wasted to deal with it. Sorry, man; that's the legal system for you.

    And after all is said and done, that distributor, who may have served them well for years and was suffering a single isolated incident at the time, wouldn't be so eager to continue doing business with Newegg, costing them a chunk of their supply chain. Not to mention the PR disaster that would result as cooler-headed customers would start to wonder what's going on with a company that flies off the handle and calls out their partners publicly like that.

    Rather, the better answer would be to appear as diplomatic as possible in official channels, not assign blame directly, offer refunds or exchanges as customers demand, and quietly drop the distributor under breach of contract grounds if Newegg finds reason not to trust their cheating asses any more. Demanding any more from them is just letting petty bitterness boil over.

    And alternatively, how much more detail were you expecting them to give in one tweet? :-)

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    Demanding constant attention will only lead to attention.
  12. Re:Well something fishy is going on by Aussie · · Score: 4, Insightful

    What the hell is twitter?

    Listserv for the ADD generation.

  13. Re:Not me! by Pyrion · · Score: 2, Insightful

    More accurately, if you bought Intel, you'd have a first post, albeit at a premium. If you bought AMD, you might have had a first post, but they're all at a significant discount so wtf do you care?

    --
    "There is much pleasure to be gained from useless knowledge." - Bertrand Russell.
  14. Re:From Intels Elbonian manufacturing plant by Hurricane78 · · Score: 1, Insightful

    How dumb do you think people in these poor countries are?? Sounds pretty arrogant to me, considering you got Alabama and Utah in your backyard, and politicians saying on live TV that you should appeal to the “supernatural powers”. ;)

    --
    Any sufficiently advanced intelligence is indistinguishable from stupidity.
  15. Re:Well something fishy is going on by e3m4n · · Score: 2, Insightful

    this makes the most sense to me. From all the stories of counterfeit goods coming out of china, I'd say someone at D&H thought they were getting something too good to be true, and really was. Its not always hi-tech that gets counterfeit. I saw a show where friggen TOOTHPASTE was being counterfeit. How much more could it possibly cost to make something that actually cleans your teeth as opposed to what ever was in the tubes. Another story involved a death of an infant because the parents thought they were feeding the baby real formula and the baby died because it received no nutrition from the formula being sold. The irony of the whole situation is that the old time communist are sitting back saying 'see i told you so' with regards to how capitalism has brought about the worst in behavior there.

  16. Re:Video Games by hairyfeet · · Score: 4, Insightful

    There is NO way it is a customer snowjob, as according to this even Newegg admits it was done by a supplier, but they are claiming it was "demo models" that were sent out. Of course we all know this is bullshit, as Intel would have no need to fake their own boxes for a demo model, nor would they use modeled plastic for a HSF, they would just put a bad binned chip in the box and be done with it.

    My guess is either the supplier is trying to save face as someone on the factory floor swapped out a load of the real ones for these premade fakes, or someone on the docks had cooked up a shipment of fakes and loaded them in place of the real chips. Considering how much this supplier has to lose by burning Newegg I really doubt the supplier themselves did this, as Newegg has never struck me as the type that would deal with "fly by night" businesses in their supply chain. From the looks of it Newegg as always is being good about treating their customers right, so as long as they make good on the chips it will only make me shop there even more.

    After all, anybody can have a problem in their supply chain, things can go wrong, there are always thieves or shippers that will treat a delicate item like a tire chuck. To me it all comes down to how they treat you when something like this happens. It is easy to do business with someone when everything goes right, it is how they treat you when something goes wrong that matters. The few times I've had to deal with Newegg when something went wrong they have always been top notch about it, and I'm sure these folks with have their new Intel chips express mailed right out.

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  17. Those were NOT Display models! by Tsu+Dho+Nimh · · Score: 3, Insightful

    The display models would come in real boxes with correct spellings, possibly with some disclaimer about the parts inside not being real.

    Also the parts inside would probably be real ones that failed quality control so they would look a lot more realistic.

    No, I've worked with Intel's display boxes. Intel's display boxes, such as are used for making stacks of product at trade shows or for ads and store displays, would be a real box (no typos and no hologram) with clearly fake parts inside only if necessary (anything that fails QC is supposed to be chopped in half!). For trade show decor, real boxes with a cardboard filler for strength is all they get, maybe a chunk of wood for weight.

    That font and type quality on the box is NOT Intel ... too fuzzy, like a cheap screen printer was used. When you are making thousands of boxes at a time, you can use better printers.

    My guess is that someone in the supply chain made up a batch of these - enough for a case or two of them - and quickly switched the case for a case of genuine parts. Newegg is reporting 200 fakes, that's $80,000 which would be plenty to pay for cheap boxes and some filler bits.

  18. Re:It's not the first time for NewEgg by Anonymous Coward · · Score: 1, Insightful

    but upon installation, we were seeing various odd problems. Suspecting a driver issue, we left them in and returned home. Never resolved the problems. Pulled them a few months later on the next visit.

    The lesson you should have learned is to not leave questionable hardware in production systems for an entire quarter. You knew the return policy, and the second you suspected a problem you should have yanked those things or at least opened up some type of support case with Intel. Had you done your job, you'd have discovered the knock-offs within the standard return period, and been able to get them swapped or at least credit.

    The second lesson you failed to learn, is that it pays to keep an attorney on retainer. I'm not saying sue them, but a nice polite note on the lawyer's letterhead can work wonders... just let them know that you feel they are party to the counterfeiting since they are unwilling to take back a known fake, and that you'd much rather just get it resolved than have to get the courts involved. Chances are they would rather just take them back & eat the loss than pay their lawyers to even read your letter, let alone pay them to defend against a lawsuit from you, and possibly Intel as well. If that doesn't work, notify Intel, the FTC, the FCC (chances are the chips don't meet FCC regulations anyhow), the BBB, and whoever else might be interested... and then send them another polite letter informing them of your actions. Don't threaten to sue, if you really want to go down that road don't tip your hand with threats or angry language.

  19. Re:Video Games by AmiMoJo · · Score: 2, Insightful

    Don't know about the US but in the UK and AFAIK all of Europe your consumer rights override the EULA. If there is a problem with it you can return it for a working replacement or a refund, end of.

    They will try to tell you otherwise, that opened software cannot be returned because you might have copied it (despite all the DRM) but your consumer rights trump all their own little rules. That's why "sold as seen" is meaningless too, no matter what the item still has to be "fit for purpose" so at best they could only claim you agreed to any cosmetic issues.

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