Bait & Switch: Hospitality Industry
Be careful whom you give your business card to. Several business people have reported this situation: You go out to eat at a fine restaurant, probably not too far from your place of business. Someone enters soon after you and takes a seat He orders a meal and, upon leaving, stops off to say something to you like, “Nice to see you,” or “That looks good, I think I’ll order it next time.” He smiles and waves, then disappears from your life. When you go to pay your bill, his charges have been added to yours. He presented your business card and told the cashier that you said you’d pay.
All hospitality businesses are subject to this scam. You order tickets, get a hotel room, have a meal, or book a flight. When you get your credit card bill the charge is twice or more than what you expected. The company you dealt with quoted you one price and charged you another. Be sure to see the price in writing before agreeing to any offer, and keep the written receipt.
Travel Industry wire reports that online booking companies use this ploy frequently. “I called Expedia and a very polite, helpful agent apologized for the problem and found my $400 fare,” says Daniel, a microchip designer from Palo Alto, California. “She tried to book it for me - and then informed me that the fare had changed to $900 because fares can change in seconds as tickets are purchased.''
MSNBC followed through on this, speaking to an Expedia spokesperson. “While uncommon, the the two-system format we use will rarely return disparate fares,” says Expedia spokeswoman Katie Deines. “It speaks to the highly dynamic nature of pricing and availability. Expedia works throughout the booking process to verify pricing and availability so we are showing customers the latest information.” But travelers don’t care about the highly dynamic nature of pricing and availability. When they see a low fare one minute and a higher price the next, they call it a bait-and-switch. The price you’re quoted should be the price you pay. Every time.”
Global Travel News remarks, “The sad news is, travelers have to contend with this practice. Airlines and online travel agencies protect their claim by using words such as “for as low as” or “travel with rates as low as…” These are gray phrases wherein they only claim that they MIGHT give you the fare they advertise but they can’t really guarantee them.”
Hotels often offer low prices, but hide the bait-and-switch in the fine print. You may arrive at your destination to find that you have been placed in a small or poorly situated room (such as next to a busy restaurant or near the elevator), or one with a single bed. Services promised are often not applicable to your room, such as free breakfast or Internet service. The hotel has a room available that provides all you want, but it will be considerably more expensive.
MSNBC also reports this scam, “The California Department of Justice recently announced the arrest of Orange County travel agent Ralph Rendon. “The suspect allegedly ripped off dozens of senior citizens who wanted to travel to Cuba for religious and cultural purposes,” says the California Attorney General. The scam targeted Jewish and Greek Orthodox seniors trying to congregate with people of their own faith on the Caribbean island. After the 34 victims forked out five-figure deposits, Rendon announced their trips were being blocked by the Treasury Department and refused to refund their money. According to state investigators, he used the money to lease a brand new Mercedes, pay his rent and hire a divorce attorney.”
When you go to a fine hotel, you would think that the stores in its lobby offered only the finest merchandise. Experienced travelers have been finding knock-off items, such as watches, jewelry, handbags, luggage, electronics, and pirated CDs and DVDs, in many hotels in Europe and Asia. They are advertised as the real thing and offered at “discount” prices that are far more than the counterfeits usually sell for.
Hotels.com has been advertising that they will find exactly what you are looking for, exactly where you want it. There’s a good reason they include that in the ads. Many Caribbean Island hotels have been advertising that they are “on the beach,” or “in the center of the action,” when they are actually quite far away. Joe Yogerst of Forbes Traveler Magazine reports, “Unsuspecting travelers can get scammed into rooms only a few notches above a pig sty, places like the Hotel Carter in New York, which recently topped TripAdvisor’s list of the Top 10 Dirtiest Hotels in America. A manager at the Hotel Carter — who requested anonymity — said, “We know about the list. We’re doing OK. We’re still busy.” Then there’s the centrally located Park Hotel in London, which one TripAdvisor reviewer dubbed a “typhoid cubicle.””
Christopher Elliott another travel columnist, collects experiences reported by frequent travelers. The most common is charging for items that were not used. Many hotel rooms come with a self-service refrigerator and snack items, with outlandish prices, such as $5 for a Snicker’s Bar. If you simply accept the room as is, you may find that you are billed for items not used, although they truly are now missing from your room. Most likely they were never stocked to begin with. The bill for these items probably will not appear on your hotel charges but be placed directly onto your credit card. Your “use” of the hospitality items was not discovered until after you checked out. By the time you get the bill it’s too late to disprove it.
Monday, February 23, 2009
Monday, February 16, 2009
Consumer Safety & Awareness Part 8
Bait & Switch: Retail Stores and Services
We previously discussed how a mattress company was cited for bait and switch. All types of stores do it, and many get away with it. There are a number of variations used. Food stores like to advertise for their lower quality meats, and when you see how much fat, bone, and gristle there is, they hope you upgrade. Stores frequently display poorer items on the same shelf with the more profitable one.
Shelf placement is a trick all stores use. Products they want you to purchase are placed between waist and head level, with lower profit items on the bottom. Companies actually pay stores for ideal placement. Rather than doing this in cash, which may be illegal in some jurisdictions, they give the store discounts and extra products.
Electronic products are used in borderline bait and switch ploys. Stores may advertise for last year’s product and place it next to this year’s. Lower quality components are featured with the hopes that after you listen to the poor sound, you’ll switch up.
Digital camera scams abound. Many of them follow the same pattern and we have discovered eleven complaints against nine different companies using the same formula. Computer magazine Maximum PC explains a typical example: You order a specific camera by telephone, mail or Internet. Months later, you still haven't received it. You call the vendor, and you're given a song and dance about it being back-ordered because of X excuse, (but) would you like to buy the camera bundle with some accessories for $1,700? If you fall for the up-sell ... you'll notice that your package bundle includes (only) the battery and charger (which are normally included with the camera for MSRP). If you give up and cancel the order, you've wasted a ton of time, you don't have a camera, and the company has had your $600 for three months.
In November, 2008, the following action was taken:
Texas Attorney General Greg Abbott today charged two online digital camera and electronics retailers with conducting an unlawful bait-and-switch sales scheme. Today’s enforcement action seeks restitution for Texans who suffered financially because of the defendants’ unlawful conduct.
According to state investigators, Broadway Photo, L.L.C. and Starlight Camera & Video Inc., both of Brooklyn, N.Y., attempted to attract customers by offering the lowest retail prices on price-comparison Web sites. Once customers selected merchandise and made credit card purchases via the defendants’ Web sites, customers were notified that their orders had been processed. Despite the order-processing notice, customers were subsequently asked to call a specified telephone number to confirm their orders.
However, rather than use the calls to confirm customers orders, the defendants instead initiated aggressive, high-pressure sales pitches promoting over-priced accessories, including memory cards and batteries. The defendants’ telemarketers insisted these upgraded accessories were needed in order for the customers’ confirmed merchandise to function normally.
When customers refused these offers, the defendants told the customers the confirmed merchandise was substandard and lacked warranties. The defendants’ telemarketers encouraged customers to purchase different, more expensive products. If customers refused, the defendants canceled the orders, claiming the products were indefinitely back-ordered. When the defendants actually did ship orders, customers who intended to purchase new merchandise often received used or refurbished products.
In 2002, a federal court in Nevada issued an order against a BTV Industries e-mail scam that offered free video-game consoles but instead routed people to a pornography Web site charging $3.99 per minute. “According to the FTC, in the "bait-and-switch" scheme consumers received unsolicited spam e-mail messages claiming that the recipients had won a free Sony PlayStation 2 or other prize through a promotion supposedly sponsored by Yahoo. In fact, the e-mail messages directed consumers to an adult Internet site through a 900-number modem connection that charged them up to $3.99 per minute of use. Apparently, when consumers responded to the e-mail informing them that they had won the game system, they then were routed to a Web page that imitated an authentic Yahoo page. That page then instructed consumers to download a program that would purportedly permit them to connect to a "toll-free" Web site where they could enter their name and address to request a PlayStation. Yet, when consumers adhered to these instructions, they were connected to a pornographic site by way of a 900-number, where they then incurred per-minute charges.
In October 2008, a Hess Express gas station in West Roxbury, Massachusetts was “fined for displaying gas prices that weren’t what they were selling. The bait-and-switch occurred for a 15- to 25-minute period on Sept. 18 around 2 p.m. It is a clear violation of consumer rights, according to the city’s Inspectional Services Department. When prices go up, they must change the signs first and then the pumps, according to ISD. When a price change was done, the station had neglected to change the price on pumps.”
A newly discovered, but not too infrequent trick of automotive dealers, is to entice people in stating that they offer the top price on trade-ins. The salesperson refuses to give the trade-in price until a car is selected. Once that is done, a very low trade-in is offered, often raised slightly upon complaint. If the buyer backs down, the salesperson insists that he has to pay for the new car anyway since the paperwork was completed while they were negotiating. In some cases the used car had been brought to the service center for “evaluation,” and the dealership refused to give the car back, again saying the deal was completed.
This October, in Tallahassee, Florida, a Central Florida internet pharmacy company was sued by the attorney general, because “the company engaged in a “bait and switch” scheme, luring consumers into providing their credit card information by advertising prescription diet pills for significantly reduced prices. The company would then bill consumers for the prescription diet pills but would send herbal supplements instead of the purchased pills.
Professional Wrestler Magazine claims that a bait and switch was used to attract people to a wrestling event. “TNA really pumped up the audience with word of a "big announcement that will change the wrestling world." They even ran advertisements of the "big announcement" bearing Mick Foley's image on some of the biggest wrestling websites. And they saved the "big announcement" for its over-hyped "historic" show at the Hard Rock in Las Vegas.” The announcement was simply that he had brought stock in a company related to the wrestling industry.
Television news shows use the same ploy to get you to stay tuned for a major announcement after the commercial, assuming that you will watch the ad while waiting for the totally unimportant item. They build up the tension by having the news announcers state that it was coming up three or four times, and then not giving the information until the end of the show.
The Atlanta Journal Constitution reports complaints about carpet cleaning companies who put advertising coupons in your mailbox or in the glossy inserts in the newspaper with "specials" like $5.95 per room or whole house for $49.95. Once they arrive, they offer a more expensive service giving a variety of reasons. If you turn them down, they use inexpensive inert chemicals that can sometimes harm rugs, do a rapid job, take your money and leave.
We previously discussed how a mattress company was cited for bait and switch. All types of stores do it, and many get away with it. There are a number of variations used. Food stores like to advertise for their lower quality meats, and when you see how much fat, bone, and gristle there is, they hope you upgrade. Stores frequently display poorer items on the same shelf with the more profitable one.
Shelf placement is a trick all stores use. Products they want you to purchase are placed between waist and head level, with lower profit items on the bottom. Companies actually pay stores for ideal placement. Rather than doing this in cash, which may be illegal in some jurisdictions, they give the store discounts and extra products.
Electronic products are used in borderline bait and switch ploys. Stores may advertise for last year’s product and place it next to this year’s. Lower quality components are featured with the hopes that after you listen to the poor sound, you’ll switch up.
Digital camera scams abound. Many of them follow the same pattern and we have discovered eleven complaints against nine different companies using the same formula. Computer magazine Maximum PC explains a typical example: You order a specific camera by telephone, mail or Internet. Months later, you still haven't received it. You call the vendor, and you're given a song and dance about it being back-ordered because of X excuse, (but) would you like to buy the camera bundle with some accessories for $1,700? If you fall for the up-sell ... you'll notice that your package bundle includes (only) the battery and charger (which are normally included with the camera for MSRP). If you give up and cancel the order, you've wasted a ton of time, you don't have a camera, and the company has had your $600 for three months.
In November, 2008, the following action was taken:
Texas Attorney General Greg Abbott today charged two online digital camera and electronics retailers with conducting an unlawful bait-and-switch sales scheme. Today’s enforcement action seeks restitution for Texans who suffered financially because of the defendants’ unlawful conduct.
According to state investigators, Broadway Photo, L.L.C. and Starlight Camera & Video Inc., both of Brooklyn, N.Y., attempted to attract customers by offering the lowest retail prices on price-comparison Web sites. Once customers selected merchandise and made credit card purchases via the defendants’ Web sites, customers were notified that their orders had been processed. Despite the order-processing notice, customers were subsequently asked to call a specified telephone number to confirm their orders.
However, rather than use the calls to confirm customers orders, the defendants instead initiated aggressive, high-pressure sales pitches promoting over-priced accessories, including memory cards and batteries. The defendants’ telemarketers insisted these upgraded accessories were needed in order for the customers’ confirmed merchandise to function normally.
When customers refused these offers, the defendants told the customers the confirmed merchandise was substandard and lacked warranties. The defendants’ telemarketers encouraged customers to purchase different, more expensive products. If customers refused, the defendants canceled the orders, claiming the products were indefinitely back-ordered. When the defendants actually did ship orders, customers who intended to purchase new merchandise often received used or refurbished products.
In 2002, a federal court in Nevada issued an order against a BTV Industries e-mail scam that offered free video-game consoles but instead routed people to a pornography Web site charging $3.99 per minute. “According to the FTC, in the "bait-and-switch" scheme consumers received unsolicited spam e-mail messages claiming that the recipients had won a free Sony PlayStation 2 or other prize through a promotion supposedly sponsored by Yahoo. In fact, the e-mail messages directed consumers to an adult Internet site through a 900-number modem connection that charged them up to $3.99 per minute of use. Apparently, when consumers responded to the e-mail informing them that they had won the game system, they then were routed to a Web page that imitated an authentic Yahoo page. That page then instructed consumers to download a program that would purportedly permit them to connect to a "toll-free" Web site where they could enter their name and address to request a PlayStation. Yet, when consumers adhered to these instructions, they were connected to a pornographic site by way of a 900-number, where they then incurred per-minute charges.
In October 2008, a Hess Express gas station in West Roxbury, Massachusetts was “fined for displaying gas prices that weren’t what they were selling. The bait-and-switch occurred for a 15- to 25-minute period on Sept. 18 around 2 p.m. It is a clear violation of consumer rights, according to the city’s Inspectional Services Department. When prices go up, they must change the signs first and then the pumps, according to ISD. When a price change was done, the station had neglected to change the price on pumps.”
A newly discovered, but not too infrequent trick of automotive dealers, is to entice people in stating that they offer the top price on trade-ins. The salesperson refuses to give the trade-in price until a car is selected. Once that is done, a very low trade-in is offered, often raised slightly upon complaint. If the buyer backs down, the salesperson insists that he has to pay for the new car anyway since the paperwork was completed while they were negotiating. In some cases the used car had been brought to the service center for “evaluation,” and the dealership refused to give the car back, again saying the deal was completed.
This October, in Tallahassee, Florida, a Central Florida internet pharmacy company was sued by the attorney general, because “the company engaged in a “bait and switch” scheme, luring consumers into providing their credit card information by advertising prescription diet pills for significantly reduced prices. The company would then bill consumers for the prescription diet pills but would send herbal supplements instead of the purchased pills.
Professional Wrestler Magazine claims that a bait and switch was used to attract people to a wrestling event. “TNA really pumped up the audience with word of a "big announcement that will change the wrestling world." They even ran advertisements of the "big announcement" bearing Mick Foley's image on some of the biggest wrestling websites. And they saved the "big announcement" for its over-hyped "historic" show at the Hard Rock in Las Vegas.” The announcement was simply that he had brought stock in a company related to the wrestling industry.
Television news shows use the same ploy to get you to stay tuned for a major announcement after the commercial, assuming that you will watch the ad while waiting for the totally unimportant item. They build up the tension by having the news announcers state that it was coming up three or four times, and then not giving the information until the end of the show.
The Atlanta Journal Constitution reports complaints about carpet cleaning companies who put advertising coupons in your mailbox or in the glossy inserts in the newspaper with "specials" like $5.95 per room or whole house for $49.95. Once they arrive, they offer a more expensive service giving a variety of reasons. If you turn them down, they use inexpensive inert chemicals that can sometimes harm rugs, do a rapid job, take your money and leave.
Monday, February 9, 2009
Consumer Safety & Awareness Part 7
Bait & Switch: Household Alarms
Home alarm companies so overuse bait and switch that they need an entire section to themselves. The large national companies’ advertisements appear to offer a free or inexpensive home alarm system, but once you get to the sales pitch, with a salesman in your living room or kitchen, you discover it only covers a few doors and perhaps no windows (substituting an interior motion sensor that supposedly covers all windows). Then they offer small add-ons at “low cost,” which, once added up, comes to a substantial selling price. Your house, no matter who you are or where you live, is always more complex than the initial basic system. But if you do not purchase it today you will not be able to get all of the great side products they are offering at the same price tomorrow.
ADT is a national alarm company that has ads in magazines, mailers, on television, and on the Internet. A typical ad states that their “state-of-the-art system includes”
a) Front and back door protection. If you have any additional exterior doors they are extra.
b) Infrared motion detector. Singular. One is included in the package. These are line of site detectors only, so if an intruder bypasses the area covered by the motion detector they will not set off the alarm.
c) Lots of add-ons such as a way of turning the alarm on and off, window and lawn signs, emergency buttons, and a siren.
There are no window alarms included. No glass breakage. Their initial system is free, except for a $99 installation fee and a 36-month monitoring contract that costs $35.99 monthly, or $1,295.64. How good is this system? So good that as soon as they come to your house (we actually invited them in) they prepare a list of things you need to add on. In our case they ignored the basement window, our glass-enclosed sunroom, and the garage. Strange, as the salesman was working on commission.
Consider your house. Calculate the number of entry doors you need to alarm, and the number of windows that an intruder can enter. Do not forget to include basement and second story windows that can be accessed, no matter how difficult it may seem to you, from a garage or add-on roof. Does their two-door and a motion sensor system cover your house?
Their online site does supply one price. Their top-rated alarm panel costs an extra $349. Every other product has this statement “Click Here To Schedule Your FREE Risk Assessment. “ The salesman will count every window on your first floor and basement as well as potential points of entry elsewhere. For each window he will recommend, at an additional price, a window alarm and glass breakage alarm (because a thief can break your window and disconnect the alarm). How much more will this add to your cost?
Because California has strict liability laws, there is, hidden in their web site, the required “Contract for our California Customers.” Most likely these apply to every state. Here are a few things you need to know copied directly from their site. This is lengthy, but, as with all fine print contracts, please read it through completely. As you go through these statements, ask yourself why they feel they have to include them.
a) You agree that: if you terminate this contract during the first year, you will pay us $450.00, if you terminate this contract during the second year, you will pay us $200.00. These amounts are agreed upon damages and are not a penalty.
b) We have the right to increase the annual service charge at any time after the first year.
c) You agree to pay all directly or indirectly imposed false alarm assessments, taxes, fees or other charges of any police or fire department, or any other governmental body. You agree to pay all telephone or signal transmission company charges for area code, telephone numbering or other changes. You agree to pay us to reprogram the system if necessary to comply with any area code, telephone numbering or other changes. You agree to pay to us any increases in our cost for facilities used for transmitting alarm signals under this Contract. You agree to pay a service charge if our representative responds to a service call or alarm at your premises because you improperly followed operating instructions, failed to properly lock or close a window, door or other protected point or improperly adjusted CCTV cameras, monitors or accessories.
d) It will be extremely difficult to determine the actual damages that may result from our failure to perform our duties under this contract. You agree that we and our agents, employees, subsidiaries, affiliates and parent companies are exempt from liability for any loss, damage, injury or other consequence arising directly or indirectly from the services we perform or the systems we provide under this contract. If it is determined that we or any of our agents, are directly or indirectly responsible for any such loss, damage, injury or other consequence, you agree that damages shall be limited to the greater of $500 or 10% of the annual service charge you pay under this contract. [Editor’s note: The annual service charge under this contract would be $360.] These agreed upon damages are not a penalty. They are your sole remedy no matter how the loss, damage, injury or other consequence is caused, even if caused by our negligence, gross negligence, failure to perform duties under this contract, strict liability, failure to comply with any applicable law, or other fault. At your request, we may assume additional liability by attaching an amendment to this contract stating the extent of our additional liability and the additional cost to you. You agree that we are not an insurer even if we enter into any such an amendment.
e) In the event any lawsuit or other claim is filed by any other party against us arising out of the services we perform or the systems we provide under this contract, you agree to be solely responsible for, and to indemnify and hold us completely harmless from, such lawsuit or other claim including your payment of all damages, expenses, costs and attorneys' fees. These obligations will survive the expiration or earlier termination of this contract. These obligations will apply even if such lawsuit or other claim arises out of our negligence, gross negligence, failure to perform duties under this contract, strict liability, failure to comply with any applicable law, or other fault.
f) If the system is ADT Owned, we have the right upon termination of this Contract, to remove, disable or abandon all or any portion of the ADT Owned system. You are required to provide us access to the system for removal and we have no obligation to repair or redecorate your premises after any such removal. We do not waive our right to collect any unpaid charges by such removal, disablement or abandonment of the ADT Owned system. If the "Customer-Owned" box is checked, the equipment will become the property of the Customer upon payment of the Total Installation Charge including Sales Tax in full. ADT yard signs and window stickers shall remain the property of and may be removed by ADT, even if the "Customer -Owned" box is checked. Your right to display them on your property during the term of this Contract is not transferable.
g) However, there may be areas where we determine, in our sole discretion, it is impractical to conceal the wiring. In such areas, wiring will be exposed. Upon completion of the installation of the alarm system, we shall thoroughly instruct you in the proper use of the alarm system. We shall not be liable for loss due to water intrusion, mold, fungi, wet or dry rot or bacteria.
h) During the first three (3) months after installation, we will repair or, at our option, replace any defective part of the System, including wiring, and will make any needed mechanical adjustments, all at no charge to you. We will use new or functionally operative parts for replacements. At your request we will repair or replace the equipment we provided at our then-prevailing prices.
Most likely all national home alarm companies have similar policies. From what we can tell, all similar alarm companies use the same lack of pricing formula and also provide only a very basic system.
We do recommend home alarm systems, but believe it is far better to deal with a local alarm company. They usually know what is happening in the area and can recommend a system that is best for your neighborhood rather than a generic anywhere-in-the-country setup. If possible get at least three estimates. While they are looking over you house, ask questions about your current home situation – alarm experts love to point out weaknesses in your security. They will spot where you need to add a lock, an outside light, or other simple and inexpensive solutions to problems you might not even realize you have.
You have all heard of the medical alert alarms offered by various companies, especially useful when an elderly or sick person is living alone. Many of the home alarm companies can provide such remote pendants that do the same thing for a considerably lower cost. They work anywhere in your house. Now you can also get such systems in the form of a brooch or a wristwatch. Most of them are waterproof so can even be taken into the shower, but ask before you do so. They are tied into the home monitoring system and while they have an initial reasonable cost, there should be no extra monthly monitoring fee. When the alarm buttons are pressed, it sends a signal through your home system to alert the monitors. They can be used in case of injury, fire, home invasion, or any other emergency. They are far more reasonably priced than the nationally advertised security products for which you have to pay additional monthly fees. For what those national medic alert companies charge for monthly service, you can have your entire house monitored for break-in, fire, and medical assistance. So if you are planning on getting a home alarm, it is wise to pay the extra for fire monitoring and purchase one or two of the remote personal pendants.
Home alarm companies so overuse bait and switch that they need an entire section to themselves. The large national companies’ advertisements appear to offer a free or inexpensive home alarm system, but once you get to the sales pitch, with a salesman in your living room or kitchen, you discover it only covers a few doors and perhaps no windows (substituting an interior motion sensor that supposedly covers all windows). Then they offer small add-ons at “low cost,” which, once added up, comes to a substantial selling price. Your house, no matter who you are or where you live, is always more complex than the initial basic system. But if you do not purchase it today you will not be able to get all of the great side products they are offering at the same price tomorrow.
ADT is a national alarm company that has ads in magazines, mailers, on television, and on the Internet. A typical ad states that their “state-of-the-art system includes”
a) Front and back door protection. If you have any additional exterior doors they are extra.
b) Infrared motion detector. Singular. One is included in the package. These are line of site detectors only, so if an intruder bypasses the area covered by the motion detector they will not set off the alarm.
c) Lots of add-ons such as a way of turning the alarm on and off, window and lawn signs, emergency buttons, and a siren.
There are no window alarms included. No glass breakage. Their initial system is free, except for a $99 installation fee and a 36-month monitoring contract that costs $35.99 monthly, or $1,295.64. How good is this system? So good that as soon as they come to your house (we actually invited them in) they prepare a list of things you need to add on. In our case they ignored the basement window, our glass-enclosed sunroom, and the garage. Strange, as the salesman was working on commission.
Consider your house. Calculate the number of entry doors you need to alarm, and the number of windows that an intruder can enter. Do not forget to include basement and second story windows that can be accessed, no matter how difficult it may seem to you, from a garage or add-on roof. Does their two-door and a motion sensor system cover your house?
Their online site does supply one price. Their top-rated alarm panel costs an extra $349. Every other product has this statement “Click Here To Schedule Your FREE Risk Assessment. “ The salesman will count every window on your first floor and basement as well as potential points of entry elsewhere. For each window he will recommend, at an additional price, a window alarm and glass breakage alarm (because a thief can break your window and disconnect the alarm). How much more will this add to your cost?
Because California has strict liability laws, there is, hidden in their web site, the required “Contract for our California Customers.” Most likely these apply to every state. Here are a few things you need to know copied directly from their site. This is lengthy, but, as with all fine print contracts, please read it through completely. As you go through these statements, ask yourself why they feel they have to include them.
a) You agree that: if you terminate this contract during the first year, you will pay us $450.00, if you terminate this contract during the second year, you will pay us $200.00. These amounts are agreed upon damages and are not a penalty.
b) We have the right to increase the annual service charge at any time after the first year.
c) You agree to pay all directly or indirectly imposed false alarm assessments, taxes, fees or other charges of any police or fire department, or any other governmental body. You agree to pay all telephone or signal transmission company charges for area code, telephone numbering or other changes. You agree to pay us to reprogram the system if necessary to comply with any area code, telephone numbering or other changes. You agree to pay to us any increases in our cost for facilities used for transmitting alarm signals under this Contract. You agree to pay a service charge if our representative responds to a service call or alarm at your premises because you improperly followed operating instructions, failed to properly lock or close a window, door or other protected point or improperly adjusted CCTV cameras, monitors or accessories.
d) It will be extremely difficult to determine the actual damages that may result from our failure to perform our duties under this contract. You agree that we and our agents, employees, subsidiaries, affiliates and parent companies are exempt from liability for any loss, damage, injury or other consequence arising directly or indirectly from the services we perform or the systems we provide under this contract. If it is determined that we or any of our agents, are directly or indirectly responsible for any such loss, damage, injury or other consequence, you agree that damages shall be limited to the greater of $500 or 10% of the annual service charge you pay under this contract. [Editor’s note: The annual service charge under this contract would be $360.] These agreed upon damages are not a penalty. They are your sole remedy no matter how the loss, damage, injury or other consequence is caused, even if caused by our negligence, gross negligence, failure to perform duties under this contract, strict liability, failure to comply with any applicable law, or other fault. At your request, we may assume additional liability by attaching an amendment to this contract stating the extent of our additional liability and the additional cost to you. You agree that we are not an insurer even if we enter into any such an amendment.
e) In the event any lawsuit or other claim is filed by any other party against us arising out of the services we perform or the systems we provide under this contract, you agree to be solely responsible for, and to indemnify and hold us completely harmless from, such lawsuit or other claim including your payment of all damages, expenses, costs and attorneys' fees. These obligations will survive the expiration or earlier termination of this contract. These obligations will apply even if such lawsuit or other claim arises out of our negligence, gross negligence, failure to perform duties under this contract, strict liability, failure to comply with any applicable law, or other fault.
f) If the system is ADT Owned, we have the right upon termination of this Contract, to remove, disable or abandon all or any portion of the ADT Owned system. You are required to provide us access to the system for removal and we have no obligation to repair or redecorate your premises after any such removal. We do not waive our right to collect any unpaid charges by such removal, disablement or abandonment of the ADT Owned system. If the "Customer-Owned" box is checked, the equipment will become the property of the Customer upon payment of the Total Installation Charge including Sales Tax in full. ADT yard signs and window stickers shall remain the property of and may be removed by ADT, even if the "Customer -Owned" box is checked. Your right to display them on your property during the term of this Contract is not transferable.
g) However, there may be areas where we determine, in our sole discretion, it is impractical to conceal the wiring. In such areas, wiring will be exposed. Upon completion of the installation of the alarm system, we shall thoroughly instruct you in the proper use of the alarm system. We shall not be liable for loss due to water intrusion, mold, fungi, wet or dry rot or bacteria.
h) During the first three (3) months after installation, we will repair or, at our option, replace any defective part of the System, including wiring, and will make any needed mechanical adjustments, all at no charge to you. We will use new or functionally operative parts for replacements. At your request we will repair or replace the equipment we provided at our then-prevailing prices.
Most likely all national home alarm companies have similar policies. From what we can tell, all similar alarm companies use the same lack of pricing formula and also provide only a very basic system.
We do recommend home alarm systems, but believe it is far better to deal with a local alarm company. They usually know what is happening in the area and can recommend a system that is best for your neighborhood rather than a generic anywhere-in-the-country setup. If possible get at least three estimates. While they are looking over you house, ask questions about your current home situation – alarm experts love to point out weaknesses in your security. They will spot where you need to add a lock, an outside light, or other simple and inexpensive solutions to problems you might not even realize you have.
You have all heard of the medical alert alarms offered by various companies, especially useful when an elderly or sick person is living alone. Many of the home alarm companies can provide such remote pendants that do the same thing for a considerably lower cost. They work anywhere in your house. Now you can also get such systems in the form of a brooch or a wristwatch. Most of them are waterproof so can even be taken into the shower, but ask before you do so. They are tied into the home monitoring system and while they have an initial reasonable cost, there should be no extra monthly monitoring fee. When the alarm buttons are pressed, it sends a signal through your home system to alert the monitors. They can be used in case of injury, fire, home invasion, or any other emergency. They are far more reasonably priced than the nationally advertised security products for which you have to pay additional monthly fees. For what those national medic alert companies charge for monthly service, you can have your entire house monitored for break-in, fire, and medical assistance. So if you are planning on getting a home alarm, it is wise to pay the extra for fire monitoring and purchase one or two of the remote personal pendants.
Monday, February 2, 2009
Consumer Safety & Awareness Part 6
Household Bait & Switch
Bait and Switch has many variations. Some service franchise companies use this technique to get you to sign an annual contract, then they inform you that what you have is bare minimum and will not satisfy your needs. Since they already have you under contract, their new sales pitch is worded so you think you are getting something special.
Lawn care companies promise to do monthly fertilization, using chemicals specifically formulated for your needs. Each month they alter what they use to attack early spring weeds, long-term problems, and even provide special pre-winter care. What they do not offer, and charge extra for includes grub control, shrub and tree fertilization, and dethatching. They push you to have these services. Their service is usually only for limited lawn space. To do your entire yard may double the advertised cost.
I have a personal problem with these services. My yard consists of half lawn and half flower and shrub areas. I once tried a lawn care service that promised that their technique would do no harm to my plants, yet the serviceman destroyed an area of pachysandra, a mugu pine, and some hosta. When I complained they said there was nothing they could do.
Pest control companies also offer annual contracts, but they rarely cover everything. There are many established and documented scams involved in insect control, such as finding evidence of infestation without finding any insects (because the insects are under your foundation or inside the wood), using improper or short-lasting chemicals, or even dropping insect pests from bottles and then showing you that you need extra service.
The South Carolina Consumer Affairs Bureau handles a large number of complaints against pest control companies. Their web site has this warning, “Pest control fraud is prevalent in areas where you are more likely to have problems with insects. This con game usually takes the form of a termite inspector who appears and informs you that termites have infested your home and if you contract for his services today, you will receive a discount. Always avoid such pressures. It is extremely doubtful that your house will start tumbling down around your ears that very day. Besides not applying pesticides properly, the pest control con artist may not use a recognized or effective pesticide. As a matter-of-fact, they may apply nothing but some chemically smelling liquid. Don't deal with door-to-door pest control operators. If you need their services check the yellow pages, call them and ask for an estimate based on your needs.”
You can have problems with companies that service inside the house as well. National carpet installation services offer low prices and quick installation. They, though, may attempt to get you to purchase better quality, explaining that the one on sale is not good for your situation, and charge extra for the under pads. The same can apply to companies that install or refurbish cabinets, wallpaper, or do household cleaning.
Bathroom refinishing companies have been cited many times for bait and switch, poor material, and refusal to stand by warrantees. Here is one example from the Internet consumer organization, CTV: “On May 31, 2006 {company} reglazed my bathtub, at a cost of $175.00, giving me a 5 year guarantee. It is now September 29, 2007, and the bathtub finish is peeling. I called the company, speaking to Will and was told to call him the next week and he would make an appointment to come and repair it. I phoned 4 times in the past two weeks and he has an answering machine, so I left a message. He is never in to take my call and he never returns my call.”
By the way, several companies offer spray-on bathroom refinishing kits for old and worn baths and showers. Attorney generals in several states have filed suits against a few stating that the products are short lasting and nearly useless. It is often less expensive to have a contractor install a new bathtub than to refinish an old one.
One thing to watch for in bathroom remodeling, especially for seniors and those with medical problems, are the advertisements for improved units where no price is listed. Once the salesperson is in your home, you are subject to both bait and switch and high pressure sales pitches for products that cost many times their value.
Window remodeling also attracts bait and switch tactics. The low advertised prices might be for poor quality windows that do not meet the building code in your area. The sizes offered may be irregular, and to fit your windows there is an additional fee. The salesperson may talk you into including features that you do not need.
Home alarm companies so overuse bait and switch that they need an entire section to themselves.
Bait and Switch has many variations. Some service franchise companies use this technique to get you to sign an annual contract, then they inform you that what you have is bare minimum and will not satisfy your needs. Since they already have you under contract, their new sales pitch is worded so you think you are getting something special.
Lawn care companies promise to do monthly fertilization, using chemicals specifically formulated for your needs. Each month they alter what they use to attack early spring weeds, long-term problems, and even provide special pre-winter care. What they do not offer, and charge extra for includes grub control, shrub and tree fertilization, and dethatching. They push you to have these services. Their service is usually only for limited lawn space. To do your entire yard may double the advertised cost.
I have a personal problem with these services. My yard consists of half lawn and half flower and shrub areas. I once tried a lawn care service that promised that their technique would do no harm to my plants, yet the serviceman destroyed an area of pachysandra, a mugu pine, and some hosta. When I complained they said there was nothing they could do.
Pest control companies also offer annual contracts, but they rarely cover everything. There are many established and documented scams involved in insect control, such as finding evidence of infestation without finding any insects (because the insects are under your foundation or inside the wood), using improper or short-lasting chemicals, or even dropping insect pests from bottles and then showing you that you need extra service.
The South Carolina Consumer Affairs Bureau handles a large number of complaints against pest control companies. Their web site has this warning, “Pest control fraud is prevalent in areas where you are more likely to have problems with insects. This con game usually takes the form of a termite inspector who appears and informs you that termites have infested your home and if you contract for his services today, you will receive a discount. Always avoid such pressures. It is extremely doubtful that your house will start tumbling down around your ears that very day. Besides not applying pesticides properly, the pest control con artist may not use a recognized or effective pesticide. As a matter-of-fact, they may apply nothing but some chemically smelling liquid. Don't deal with door-to-door pest control operators. If you need their services check the yellow pages, call them and ask for an estimate based on your needs.”
You can have problems with companies that service inside the house as well. National carpet installation services offer low prices and quick installation. They, though, may attempt to get you to purchase better quality, explaining that the one on sale is not good for your situation, and charge extra for the under pads. The same can apply to companies that install or refurbish cabinets, wallpaper, or do household cleaning.
Bathroom refinishing companies have been cited many times for bait and switch, poor material, and refusal to stand by warrantees. Here is one example from the Internet consumer organization, CTV: “On May 31, 2006 {company} reglazed my bathtub, at a cost of $175.00, giving me a 5 year guarantee. It is now September 29, 2007, and the bathtub finish is peeling. I called the company, speaking to Will and was told to call him the next week and he would make an appointment to come and repair it. I phoned 4 times in the past two weeks and he has an answering machine, so I left a message. He is never in to take my call and he never returns my call.”
By the way, several companies offer spray-on bathroom refinishing kits for old and worn baths and showers. Attorney generals in several states have filed suits against a few stating that the products are short lasting and nearly useless. It is often less expensive to have a contractor install a new bathtub than to refinish an old one.
One thing to watch for in bathroom remodeling, especially for seniors and those with medical problems, are the advertisements for improved units where no price is listed. Once the salesperson is in your home, you are subject to both bait and switch and high pressure sales pitches for products that cost many times their value.
Window remodeling also attracts bait and switch tactics. The low advertised prices might be for poor quality windows that do not meet the building code in your area. The sizes offered may be irregular, and to fit your windows there is an additional fee. The salesperson may talk you into including features that you do not need.
Home alarm companies so overuse bait and switch that they need an entire section to themselves.
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