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The Emerging RadioShack/Netflix Debacle

New submitter DigitalParc writes "RadioShack recently launched a promotion for 6 months of free Netflix service with the purchase of a laptop, tablet, or phone. This ended up being a fantastic deal, until the shoddy redemption site they were using for the Netflix code redemption was exploited and many of the codes were stolen. 'Users on slickdeals, a deal-finding and sometimes deal-exploiting website, found that the URL of the redemption website could be changed upon trying to enter a code, resulting in a valid Netflix subscription code being generated. Within hours, many of Netflix codes that were allocated to this promotion were stolen and some were redeemed or put up for sale on eBay.'"

28 of 122 comments (clear)

  1. oops by sootman · · Score: 3, Insightful

    I'm surprised Netflix would agree to a partnership like this and not be in control of how the codes were handed out.

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    1. Re:oops by Drethon · · Score: 5, Insightful

      If Netflix sold the time codes to RadioShack up front, I don't think they particularly care what happens to them. Not that I found anything that says one way or the other what happened.

    2. Re:oops by maliqua · · Score: 4, Insightful

      this seems to be a big deal for no reason, a large corporation has to eat the cost of a few Netflix subscriptions and get a website patched.

    3. Re:oops by farble1670 · · Score: 3, Insightful

      If Netflix sold the time codes to RadioShack up front, I don't think they particularly care what happens to them

      they certainly do care about customers being pissed off at netflix because of RS's screw up. i know, it's technically RS's fault, but companies don't want their name associated with any sort of bad experience.

  2. Slickdeals Dark Side by pwileyii · · Score: 5, Insightful

    I hate it when people have the impression that they are entitled to steal from others. I use the SlickDeals website and a lot of time they have some great deals, but if you dig deeper into the forums on that site, there is a dark side. This is my opinion, if you took a code and used it for yourself, you are stealing, but maybe the temptation was a bit too great. It is like finding a 20 dollar bill on the floor and keeping it. You know it isn't yours, but the person of irresponsible enough to lose 20 dollars so they kind of deserve it. If, on the other, you generated hundreds of codes and start selling them on Ebay, you are stealing and being a complete dick. That is like watching someone drop their wallet, pretending not to notice, picking it up when the person is out of sight, cleaning out all of the cash, and then tossing the wallet in the dumpster outside.

    1. Re:Slickdeals Dark Side by mythosaz · · Score: 2

      There's a fine line between straight up fraud and obviously unethical (but within the rules) behavior by frequenters of deal sites.

      Your average SD or FW user will gladly stack unintended coupons, order obvious price errors, price-match to after-rebate prices; they'll cycle and trade online payments to churn giftcards and reward points -- all because the fine print allows them to. Once you've decided that, "Hey, the system lets you, so it's fair game," or "They screw us, so lets screw them," it's not far to just trying to redeem codes by trial and error.

    2. Re:Slickdeals Dark Side by jedidiah · · Score: 2

      Do the rules allow for the attempted action or not?

      That's all that really matters. If you created a bad set of rules that led to unintended consequences you don't like, then you should honor your side of the bargain. The fact that you are an idiot should not make you immune from your own stupidity.

      This goes triple for corporations that are supposedly run by professionals and should know better.

      "Gaming" the rules is the same as following them.

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    3. Re:Slickdeals Dark Side by jandrese · · Score: 2

      I've never heard of Slickdeals, but your post makes it sound like the website equivalent of that friend who always has some scheme that's totally going to work this time and he's found a way to beat the system. But he's always broke and angry because his last sure-fire scheme didn't work out. Or worse, he's happy because he yelled at some poor CSR for an hour and got some token "go away" prize that was worth marginally more than his initial investment.

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    4. Re:Slickdeals Dark Side by mythosaz · · Score: 5, Insightful

      "Gaming" the rules is the same as following them.

      To the autistic, with no understanding of (or regard to) ethics or morality, you're 100% correct.

    5. Re:Slickdeals Dark Side by mythosaz · · Score: 2

      Your average SD or FW post is just good deals - people posting things on sale or clearance, your basic YMMV closeout. ...plus the usual kickback from referral sites.

      Your average SD or FW power user is busy combining those deals with price-matches to things that are obviously after-rebate or typos on models in competitive ads, etc.

    6. Re:Slickdeals Dark Side by afidel · · Score: 2

      Contracts are contracts, if you think for one microsecond that a corporation won't do EVERYTHING in its power to screw you over using the fine print you're delusional AND lucky to have never been screwed in that manner. For the rest of us we've learned that the corporations have zero ethics or morals so we feel free to treat them in the same way. It's like people who feel they owe a former employer anything after they have left, why? I might feel an obligation to former coworkers as I've often developed personal relationships with people I'm around for around half my waking hours, but I feel zero obligation to the corporation once the employee/employer relationship ends.

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  3. Re:RS is liable by mythosaz · · Score: 5, Funny

    The preceding was post brought to you by the year 1981.

  4. Re:Debacle? by DarkOx · · Score: 2

    My guess would be Netflix does not care or does not care much. Radio Shack probably paid them something for those promo subscriptions. If anything Radio Shack will now have to buy more from Netflix to ensure they can provide them to their own legitimately entitled customers.

    Even if it was a handshake deal where Radio Shack gets to offer a free month of Netflix to entice customers and Netflix gets a shot a retaining some of those subscribers who might not otherwise try the server they probably still don't really care much. It isn't as if Neflix does not offer a free month to all new subscribers anyway! I would guess Netflix's own promo system is smart enough to not let you sign up for a free month multiple times from the same billing address. Where as with these promo codes, each code is probably good for a month of service. So at worst they suffer a few dead beats for a short period. Bandwidth isn't free but I would still guess Netflix incremental per customer costs are very low. Who knows maybe even a handful of cheats will decide they like the service enough to hang around and start paying.

    Also on the Netflix side, I'd guess if you use more than a handful of promo codes over a period of a year or so it triggers at least an automated account audit and they probably know what campaign the codes belong to; how far will they go to prove you did not buy 6 PCs from Radio Shack, I don't know. They can probably catch the worst abusers if they care to try.

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  5. Re:RS is liable by Cinder6 · · Score: 3, Insightful

    Honest question: 7-11 sells random audio adapters, cheap soldering equipment, and wiring?

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  6. Radio Shack by fred911 · · Score: 5, Funny

    You've got questions?
                                            We've got stupid looks.

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    1. Re:Radio Shack by n7ytd · · Score: 5, Funny

      You've got questions?

      We've got cell phones!

  7. Re:RS is liable by StormCrow · · Score: 2

    You mean you can actually still buy that at Radio Shack?

  8. Re:RS is liable by TheCarp · · Score: 4, Informative

    Last time I was there I picked up an LM7505 voltage regulator and a 24 V center tapped transformer. I mean yah, I would normally order that from mouser or someone else; or drive 45 minutes to the good hobby electronics store, but for just a couple of basic things, RS is not so bad.

    Where does 7-11 keep those? Is it near the slurpees?

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  9. Re:why not tie to phone numbers that RS asks for by Charliemopps · · Score: 2

    Refuse to give your number and then I chew out the clerk. I even refuse to give my zipcode. I refuse to participate in data mining myself and they should be ashamed of themselves for asking.

  10. Re:RS is liable by Anonymous Coward · · Score: 2, Informative

    A few days ago I went to radio shack to buy some capacitors. They also carry things like resistors, LEDs, breadboards, etc. They also have a lot of the MAKE electronics books and kits to learn electronics. I've also bought things like relays, soldering supplies, etc.

  11. Re:why not tie to phone numbers that RS asks for by LordLimecat · · Score: 4, Insightful

    Thee clerk has a (crappy) job to do. You should be ashamed for yourself for venting about corporate policy decisions to a clerk who has nothing to do with them.

  12. Run some analytics on the web logs ... undo ... by BitZtream · · Score: 3, Insightful

    the problem.

    Seriously, theres enough info in any default apache or IIS log to find the majority of the bullshit codes generated/stolen. Find anything that looks fake and kill it, anyone entering a killed code, have them call in to activate/get a new code, all these people who steal codes over the Internet generally aren't ballsy enough to make the phone call repeatedly, make sure the call comes from a good solid landline, no VoIP crap, sorry if it effects all 8 of you legitimate users of radioshack and netflix.

    This is (just) a shitty long day for some sys admin somewhere who has to make up for some shitty developers mistake. This is pretty much the status quo is it not? Most if not all of the bad codes will be found out ... if they want to, it may be well worth it for them to have the accounts active anyway for the books or just for possible retention values.

    This is a great example of the no press is bad press mantra. Both RadioShack and Netflix will see increased customer counts for people trying to scam it, slam dunk marketing.

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  13. Re:why not tie to phone numbers that RS asks for by jeffmflanagan · · Score: 2

    The part where your shortcomings as a person enter the picture, and cause you to abuse the clerk is the larger problem.

  14. Re:RS is liable by AK+Marc · · Score: 2

    Last I went to one (it's been years), they had no components. They recommended Home Depot, who did carry solder irons and solder. Radio Shack sold phones, toys, and not much else.

  15. Re:RS is liable by Applehu+Akbar · · Score: 3, Interesting

    I'm old enough to remember real Radio Shack: discrete ham radio components hanging from the ceiling like bats in a cave. Big tubs of resistors and capacitors you could root around in. Racks of tubes. And...customers! I swear I'm not making this part up RS stores had customers in those days!

    Those were the days when ham radio fans had hair, and did not have oxygen tanks.

  16. Re:RS is liable by BronsCon · · Score: 2

    Dude, I'm not 12 :) I just happen to have worked there 15 years ago, so that's what I used as a point of reference. I was raised by a robotics engineer; I grew up in that fucking place... Seeing what it's become today almost makes me shed a tear... almost.

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  17. Re:why not tie to phone numbers that RS asks for by Anonymous Coward · · Score: 2, Insightful

    You know what else you can do to clerks at stores? You can vent about other problems you had before you got to the store, and they usually have to just stand there and take it. You can go in, blame the clerk for potholes, how my boss treated you earlier in the day, getting dumped by a girl, etc., and few a little better. Or if you have nothing to rant about, just call them amusing names for amusement and other stuff you couldn't get away with trying on friends. If you yell at the clerks enough, sometimes, you can get them to work faster or free goodies if the manager thinks you were upset over service. And ever having trouble finding a public trash can? Well, there are more stores than trash cans around where I live, so if you don't want to dump trash in the street, just pick a store and some employee will have to clean it up.

    After all, if they don't want to put up with any such things, they can just quit right there and then.

    Or you could just not be a dick when it isn't going to amount to anything other than getting other people annoyed or upset, whether someone works for a store or not. And if you still insist that employees should be your personal doormat, then consider that saying "no thanks" and moving on saves you a lot of time at least with the same out come as far as policy...

  18. Re:RS is liable by RabidReindeer · · Score: 2

    If the larger store I went to recently is an indicator they have started carrying quite a bit more like the old days....

    Rumor has it that they decided that they were getting trounced on the consumer electronics front and have retreated to some of their more traditional offerings. Not much chance that Wal-Mart's going to be stocking 50 mf capacitors.

    It's also helping (I think) that there are now ways of doing things with electronics that don't involve ultraspecialized chips that have to be wave-soldered onto a multi-layer circuit board. The Arduino and Raspberry Pi provide a lot of power, but they are good matches for simple custom interface circuits, buildable from Radio Shack components.

    Plus, the Shack is selling the Arduino and Pi alongside them.