Scams

by Mike Masnick


Filed Under:
pricing, scams, warranty

Companies:
office depot



Office Depot Employees Blowing The Whistle On Outright Scams

from the reputation-is-a-scarce-good dept

For many years, there have been stories of various shady online electronics (especially camera) retailers (many of whom are based in the same neighborhood in Brooklyn). The main scam is to offer super cheap prices on cameras to get you "in the door" (either online or in person), and then focus on trying to sell you all sorts of massively over-priced add-ons and warranties. If you turn them down, they suddenly "discover" that the original product you ordered is out-of-stock. At times, over the years, various authorities have cracked down on such resellers, though they often pop right back up under a different name.

Still, folks who know the business were well aware of such shady companies and often knew to avoid them... but it's a bit different to find out that some large brand name retailers appear to be doing the same. Laptop Magazine is reporting on a series of whistle-blowing employees at Office Depot, detailing how they pulled off similar scams. The typical "oh, that's out of stock" trick is apparently quite common, but it even gets more advanced, with some employees creating photoshopped price signs, in order to "hide" the price of an expensive warranty add-on in the "list price" for a computer. These practices are quite illegal, and it looks like the report might trigger some FTC interest, especially given the multiple reports, suggesting that this isn't just a few rogue employees.

It does make you wonder what Office Depot was thinking. The obvious answer is: "anything for a sale," but that doesn't tell the whole story. Sooner or later, companies that do this sort of thing are going to get caught -- and when that happens (beyond the fines), the damage to a company's reputation can be massive and debilitating. It just seems like the cost of being outed is so high, it's ridiculous that any company would encourage such behavior.

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  1. icon
    Mzak2233 (profile), 7 Nov 2009 @ 11:58pm

    Well here's the thing I'm a current OD employee going 3 years strong. And I've seen this go down in my store numerous times and guess what it was all done by managers trying to inflate their numbers. Not the company its self and guess what ALL and yes I'll repeat that ALL of the managers doing so were fired. Its not the company that is shitty. Its the people that they allow to work there. It all comes back to them in the end. Personally Ive never turned down a sale because they wouldn't buy ad on items that's completely retarded. I never will. And as for the warranty being a rip off I have to disagree its a money back guarantee in the form of a merchandise card no hassle say a year down the road you drop your $800 laptop or you spill coffee on it anything along those lines you pretty much fucked up the creek out $800 if you didn't get the warranty. And to think were all crooks is idiotic. It all comes down to being moral and doing the right thing. And as we can see in all of society no matter it be retail or car sales or even politicians there is always going to be a few bad seeds out there.

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