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May 14, 1999 11:15 AM PDT

Sites open Web's complaint window

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A number of online complaint services are hoping to make money by resolving consumer disputes with Net retailers, but some observers question whether there is enough demand for such services to succeed.

David Horowitz, for example, is relaunching his Fight Back site in a few weeks with an e-commerce feature, while newcomer Complain.com, which went into public beta today, plans to officially launch June 1.

The sites will join the likes of Complain To Us, which launched in 1997, as well as free sites such as Cemptor, which rolled out in March.

"We had been doing this pro bono, but now we'll be charging a flat fee if I'm the one who personally gets involved in writing a letter and following up complaints from our Web site," said Horowitz, a nationally syndicated consumer columnist and host of the television series Fight Back! With David Horowitz.

Horowitz will charge $25 for any cases that he personally pursues, while all other complaint resolutions will be free of charge.

"Consumers will get access to me, our brand name and experience in linking up with major companies The customer is never right, Part Deux to make sure the complaint goes to the right person quickly," he said.

But Horowitz noted that the "consumer is not always right" and that he would not hesitate to determine the company had acted fairly if that were the case.

Meanwhile, Complain.com will charge $19.95 to draft a complaint letter to a company's chief executive and the head of customer service operations, said chief executive Steven Ericsson Zenith.

Consumers can fill out a form with information about the product or service they purchased, what went wrong, the actions they have taken to resolve the dispute, and the resolution they are seeking, Zenith said.

"The people who come to our site will have likely contacted us after they tried to get a hold of the company's customer care department and either failed or had an unsatisfactory experience in getting things resolved," he said.

Four weeks after Complain.com sends the letter to the company, the consumer will receive an email inquiring whether the issue has been resolved. If the problem still exists, Zenith said, a copy of the complaint letter will be faxed to the chief executive. After that, consumers will be referred to Complain.com partners, including law firms, to pursue further action.

Despite the growth in e-commerce and customer service issues, one analyst questions the viability of the model.

"It seems strange to pay someone to write a letter for you, when the Internet allows you to send email to the company," said James McQuivey, an e-commerce analyst with Forrester Research. "But if a site aggregates the information so consumers can see what experience customers are having with a particular company and their products, then that could be useful."

Complain.com and Cemptor both plan to add a database feature to their sites and hope to become places where consumers go to get information before doing business with a company.

So far these sites have not seen overwhelming demand for their services. Cemptor has received 15 complaint requests since its launch in March and has resolved about a third of them, said founder Bill Tran. Although the company does not charge for its service, it plans to make money by selling ads on its site.

The speed with which complaints about a company can travel on the Internet has corporate America worried. For example, Chase Manhattan Bank owns the domains Chasesucks.com, IhateChase.com, and ChaseStinks.com, while Walker Digital, a company founded by Priceline.com chief executive Jay Walker, registered Priceline-sucks.com and Pricelinesucks.com.

Spokesmen for both companies declined to comment on why the domain registrations were created. But Ken Herz, a spokesman for Chase, said, "We value customer feedback?and we can sometimes learn from negative feedback."

"The Internet is such a widespread communications forum that many retailers do their best to avoid complaints for fear it will take off like wildfire," said Robert Smith, executive director of Shop.org, an online retailers association.

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RIP OFF BY CYBERPOWER INC. IN CA.
by March 29, 2005 4:55 PM PST
IF YOUR THINKING ABOUT BUYING A COMPUTER OR LAPTOP PLEASE STAY AWAY FROM CYBERPOWER PRODUCTS. NOT ONLY HAVE I GOT ADEFECTIVE LAPTOP FROM THIS COMPANY BUT OTHER PEOPLE AS WELL HAVE COMPLIANED. MY LAPTOP WAS DEFECTIVE SINCE DAY ONE. I HAVE COMPLAINED TO THE BBB IN CA AND OTHER PLACES HAVE HAD NO LUCK IN SOLVING MY PROBLEM WITH THIS CO. I EMAILED THE MANAGER MR. VONG AND STILL DIDN'T GET ANYWHERE ON THIS MATTER. THE COMPANY IS NOW AVOIDING ME THINKING I WILL JUST GO AWAY AND FORGET, WRONG I WILL FIGHT FOR MY CONSUMER RIGHTS
ON THIS MATTER. NOW AND DAYS THE COMPAINES WE DEAL WITH ARE ONLY INTRESTED IN GETTING THERE MONEY AFTER THAT WE DON'T EXIST. IT'S ASHAME HOW COMPAINES DO BUSSINESS TODAY VERSE 10 OR 20 YEARS BACK. THE OLD SAYING THE CUSTOMER IS ALWAYS RIGHT!!! NOT IN THIS DAY AND AGE. SO BEWARE WHEN YOU ARE BUYING PRODUCTS OF ANY KIND OVER THE INTERNET . YOU MAY PAY FOR SOMETHING AND NEVER GET IT OR GET SOMETHING THAT IS DEFECTIVE LIKE I DID AN UNABLE TO USE IT. I SPENT 2047.00 ON SOMETHING I CAN EVEN USE AND I DON'T EVEN HAVE IT IS IN THEIR WAREHOUSE AND I DON'T KNOW IF I WILL EVER SEE THIS MATTER RESOLVED. SO BEWARE AND BE CAREFUL.......DON'T END UP LIKE I DID.
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