State Attorney General Richard Blumenthal ordered the investigation into Best Buy's practices on Feb. 9 after columnist George Gombossy disclosed the website and showed how employees at two Connecticut stores used it to deny customers a $150 discount on a computer advertised on BestBuy.com. Says Gombossy,
'What is more troubling to me, and to some Best Buy customers, is that even when one informs a salesperson of the Internet price, customers have been shown the intranet site, which looks identical to the Internet site, but does not always show the lowest price.
[State Attorney General Richard Blumenthal] said that because of the fuzzy responses from Best Buy, he has yet to figure out the real motivation behind the intranet site and whether sales people are encouraged to use it to cheat customers
And here's the main article...
SPOILER:
Under pressure from state investigators, Best Buy is now confirming my reporting that its stores have a secret intranet site that has been used to block some consumers from getting cheaper prices advertised on BestBuy.com.
Company spokesman Justin Barber, who in early February denied the existence of the internal website that could be accessed only by employees, says his company is "cooperating fully" with the state attorney general's investigation.
Barber insists that the company never intended to mislead customers.
State Attorney General Richard Blumenthal ordered the investigation into Best Buy's practices on Feb. 9 after my column disclosed the website and showed how employees at two Connecticut stores used it to deny customers a $150 discount on a computer advertised on BestBuy.com.
Blumenthal said Wednesday that Best Buy has also confirmed to his office the existence of the intranet site, but has so far failed to give clear answers about its purpose and use.
"Their responses seem to raise as many questions as they answer," Blumenthal said in an interview. "Their answers are less than crystal clear."
Based on what his office has learned, Blumenthal said, it appears the consumer has the burden of informing Best Buy sales people of the cheaper price listed on its Internet site, which he said "is troubling."
What is more troubling to me, and to some Best Buy customers, is that even when one informs a salesperson of the Internet price, customers have been shown the intranet site, which looks identical to the Internet site, but does not always show the lowest price.
Blumenthal said that because of the fuzzy responses from Best Buy, he has yet to figure out the real motivation behind the intranet site and whether sales people are encouraged to use it to cheat customers.
Although Best Buy also refused to talk with me on specifics of the intranet site or its use, it insisted that its policy is to give customers the best price.
"Our intention is to provide the best price to our customers which is why we have a price-match policy in place," the company said in a written statement to me. "As prices and offers may vary between retail and online, our stores will certainly match BestBuy.com pricing as long as it qualifies under the terms and conditions of the price match policy."
"As a company, everything we do revolves around our customers' needs and desires. It is never our intent to mislead them as their loyalty is incredibly important to us," the statement said.
Then they threw in this interesting line: "Although we have an intra-store web site in place to support store operations (including products and pricing), we are reminding our employees how to access the external BestBuy.com web site to ensure customers are receiving the best possible product price."
That last sentence seems to indicate that Best Buy, which is supposed to be staffed by tech-savvy employees, is putting the blame on memory lapses: that employees have somehow forgotten how to access BestBuy.com from the store.
Having been to many Best Buy stores where some helpful employees showed me how they access the intranet and Internet, I can assure Best Buy officials that the re-education process will probably not be lengthy.
After making sure the computer is turned on, employees should click twice on the Yahoo Internet icon and then type in BestBuy.com.
This is not the first time the giant electronic retailer has gotten into trouble misleading customers. The firm, based in Minneapolis, operates more than 1,100 electronic retail stores in the U.S., Canada and China. It has more than 125,000 full-time employees.
Attorneys general in New Jersey and Ohio have accused Best Buy of deceptive sales practices, repackaging used merchandise and selling it as new, and failing to pay rebates and refunds. It paid $135,000 in New Jersey three years ago to settle that state's suit, which was based on hundreds of consumer complaints. The Ohio case is ongoing.
I didn't bother to post this when I saw it on OT because I didnt post the article that I saw on there several weeks ago stating that they had one but not outright proving it like this one does. Yeah, and Im not supprised either, **** Best Buy.
Master Tailor Toprem Spaztastic, level 75 Drizzlecaller of Karana. Member of Clan Ta Veren
I don't see how their intranet is a big secret. Most companies have their own internal web and I figure prices sold at BestBuy.com would be considered a separate entity from their retail stores. Now if there is a policy to defraud and mislead consumers, that is another issue however such a policy would have been leaked a long time ago.
There's no requirement to have the same price online as you do inside the stores. Usually the prices on the website are a little higher, if there's a discrepancy. This is usually attributed to bulk shipping to stores as opposed to individual shipping to customers. (As most companies have "free" shipping policies when you order certain $$ amounts, this money has to be made up somehow. Spreading it into the cost of everything usually works.)
So, if Best Buy, or any other company, set up a clone website only available on the intraweb inside the stores in order to be able to order products at the retail price (you as a customer came to the store after all), I don't see why that isn't reasonable. If you have to order something because the retail location is out of stock then you shouldn't be charged for that inconvenience.
... At least, that's how I treat my customers when that happens. I couldn't confirm that Staples does or does not have such a setup going; I've seen no definitive evidence for or against it, although I've seen some very strange printouts that customers tend to bring me.
If you love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home and leave us in peace. We don't seek your counsel, we don't seek your arms. Crouch down and lick the hand that feeds you. May your chains set lightly upon you, and may posterity forget that you were our countryman. - Samuel Adams
Sites like Bestbuy and circuit city show the option of buy it online or pick up in the store and I know BB lets you seach the stor's inventory to see if they have it.. (I looked for a camera and it said my local store didn't have it but one across town did)
Wth that kind of access to the stores via the online site.. people would natrually ASSUME that the two sites were one in the same.
I don't see how their intranet is a big secret. Most companies have their own internal web and I figure prices sold at BestBuy.com would be considered a separate entity from their retail stores. Now if there is a policy to defraud and mislead consumers, that is another issue however such a policy would have been leaked a long time ago.
It is not that they have a Intranet it is the fact that they would tell customers that the online advertised web price was expired. If you asked for proof they would walk over to a PC and pull up their Intranet with non-sale prices and try to sell it to the customer at the higher prices.
If you go into a store, ANY store, expecting a price you saw on their website...
Take a dated printout with you. Make sure that date is within their current sale ad. Usually Sunday to Saturday. This will solve 99.9% of your problems, and actually make it faster, and easier on the grunts you're going to be dealing with.
or how about they just pull up the right website if they have to check the price. That seems even easier.
Not that easy. Web site price varies by region of the country, due again to shipping constraints, etc. Some companies like Wal Mart, this kind of thing is borderline irrelivent, they've got a billion distribution facilities. Other companies will have 3-4 faciltiies servicing 300 stores each, and your distance from that facility determines the price.
Furthermore, if you have a price one day, it might not be the same on the next -- prices change daily, but most big chains are required to honor prices on a week-to-week basis.
Finally, it's done to save me half an hour trying to figure out why the price you're quoting me doesn't come up on the website. :P Usually the biggest cause of this is that a customer comes in on Sunday wanting a price that was on there on Saturday. (Different sales week, different advertisement, and I'm under no obligation to meet that price. And that's probably the answer you're going to get without a dated printout.)
Not that easy. Web site price varies by region of the country, due again to shipping constraints, etc. Some companies like Wal Mart, this kind of thing is borderline irrelivent, they've got a billion distribution facilities. Other companies will have 3-4 faciltiies servicing 300 stores each, and your distance from that facility determines the price.
Furthermore, if you have a price one day, it might not be the same on the next -- prices change daily, but most big chains are required to honor prices on a week-to-week basis.
Finally, it's done to save me half an hour trying to figure out why the price you're quoting me doesn't come up on the website. :P Usually the biggest cause of this is that a customer comes in on Sunday wanting a price that was on there on Saturday. (Different sales week, different advertisement, and I'm under no obligation to meet that price. And that's probably the answer you're going to get without a dated printout.)
Its just not ethical. If your job is to rip off customers, well I feel sorry for what you do for a living. It doesnt take 30minutes to type in your zipcode on the corporate website.
Simply put, not all companies will honor the prices on their Website, Wal-Mart for example, good luck getting them to do so. Best Buy will do so if you show them the price on the actual internet. Not every employee realizes that the website you see on the computers on the intranet isn't the "real" Bestbuy.com, however, it does have all the prices that they are supposed to honor in store on there. Otherwise, policy dictates that if you want the web price, you have to order it and set it up for in store pickup, but most managers will bend that if you take the extra 5 seconds of your precious time to show them that the internet version of the site shows a different price.
Mind you, the policy doesn't state that they must honor the web price, if it's different from the in store price... and as noted, other stores operate in the same fashion. So, y'all can continue to harp on about how EEEEEVIL Best Buy is, or take a moment and apply some logic to something. Best Buy's goal is not to defraud or screw customers, though everybody seems to think so *shrug* I just never understood it, then again, many of those that do seem to ignore when similar things happen in other stores, so... *shrug*
When I bought my daughter some stuff from the jc pennys website, I had to enter the catalog number I was using so they could load the right set of prices.