Bait and switch: Online electronics stores caught in fraud
Like N.Y.-area icon Crazy Eddie in the '80s, seven contemporary online merchants were caught in fraud.
(Credit: sybsa.org)Seven online merchants operating more than 40 Web sites have agreed to pay a $765,000 settlement following an investigation by the New York State Attorney General's office, the AG's office said.
"These companies engaged in the worst kinds of consumer fraud, from classic bait-and-switch schemes to blatant lies and bullying sales tactics," New York Attorney General Andrew Cuomo said in a news release that went out Thursday. "Let this be a message to online merchants everywhere: such abuse of consumers and violation of the law will not be tolerated."
All of the companies were based in Brooklyn, and while their names invoke digital photography, many also sell gear ranging from projectors to HDTVs and computers.
Five of the companies--Best Price Camera, Foto Connection, 1 Way Photo, 86th Street Photo, and Broadway Photo--agreed to change their business practices, according to the release, while the other two--Camera Wiz and Sonic Photo--will close. A full list (PDF) of the companies and Web sites involved in the settlement is available at HDGuru.com.
In the bait-and-switch routine employed by these merchants, the bait is prices that are significantly lower than those of other merchants. The switch occurs after the customer places the order, according to the AG's news release:
Once an order was placed, the companies would call consumers and try to sell them additional or "upgraded" merchandise at inflated prices. If the consumer refused to purchase the additional merchandise, the companies would cancel the sale or claim the item was backordered for months. If the consumer did agree to purchase the additional merchandise, the companies would send them lower-quality merchandise than what was promised, or merchandise that the consumer never ordered in the first place. When customers tried to return the items, they would either be denied or be slammed with undisclosed fees. All of the companies further limited customers' ability to return merchandise by requiring them to speak to a live customer representative during limited business hours, and then refusing to answer those telephone calls.
If you bought an item from one of the named retailers and believe you qualify for restitution, you can submit a claim to the New York State Better Business Bureau from July through December.
For more advice, check out the N.Y. Attorney General's online buying tips and the buying online section of CNET's TV Buying Guide.
David Katzmaier reviews HDTVs for CNET. 
This reminds me of the experience I had a couple years ago with "Broadway Photo"...
The order was cancelled after I refused (by phone) to purchase any of the dozens of "extras" that were being forced down my throat.
The guy reminded me of a timeshare salesman.
It's nice to see a small amount of justice in the world.
www.resellerratings.com
http://donwiss.com/pictures/brooklynstores/
A very low price for high end photographic equipment, place the order they call you, then you find out that it's just the camera body - none of the normal accessories are included. By the time the accessories are added the cost is more than purchasing from a reputable dealer.
They tried this one on me about 6 years ago (no I didn't fall for it), the question I have is why did it take so long for any action from the authorities.
Not everything is a bait and switch.
Now, if the ad said it was the full camera with lenses, you'd have an argument. But usually, it will says (Body Only) in the header or description.
When you order a body-only camera, those stores will call you back and tell you that you get the camera body only and in order to use it you need to purchase the battery for $100, the charger for $150, the neck strap for $50, the manual for $20, the software for $100, the body cap for $20 and the camera that you order is acutally a cheap made-in-china version, you need to pay another $200 to upgrade to the made-in-japan.
What if you don't want to buy any of those stuff? Well, they either cancel your order, put you on back order or send you the stuff that you didn't order, and good luck on returning that item.
Before I first got my DSLR, I had spent many hours researching, and when I ran into one of these scammers I knew right away that there was something fishy about these guys. Their prices were rediculously low and too good to be true. Just google their names and you'll find a lot of complaints about them. They don't let you go easily if you just want that $1200 Canon 5D Mark II body.
jmbf_k7 and FargoUT, time for you two to wake up. and stop being so gullible.
There is something very fishy going on here: #1, that it took so long to crack down on these scammers, when people have documented this stuff for years (the photos of all the Brooklyn shyster-operation storefronts have been around for years), and #2, why the "settlement" was so trivial. I'd say that these people have probably done more than their share of paying off law enforcement figures, among other things.
At least Madoff got 150 years.
As I said, when you see all the company's names on the CNET site you think these guys must be legit.
Anyhow, I'm talking to Amazon after talking with these idiots, and I say, ......So listen, how come the Neanderthals over at Whatever Photo have the unit for a couple hundred cheaper? Guy just laughed and said....... dude, buy from Amazon, bestbuy, walmart or any other reputable reseller...... go with these hole in the wall guys; and you'll get messed around one way or the other.
He then said, believe me, if they're selling a unit for 500 that we have for 799, most people know damn well something ain't quite right.
. A few years ago, I attempted to order a receiver from 6th Ave Electronics online, but soon after, realized that it was missing a needed feature, so I called to cancel the order and change it to another model, one that was discontinued. The person I spoke with said that they didn't have that one in stock anymore. He looked on his PC and I was waiting for the "For this much more, I can" line, but he said he would just send me the more expensive model that was the next step up from the original one for the price I had paid for the one I had ordered online. It came a few days later, and it's been great, it's not a grey market item or a refurb, and I got it for a great price. Since then, I and some of my friends have bought items from them and all has gone well. I also had good luck with B&H over the last half dozen years.
NYC camera and electronics retailers have a bad reputation, and much of it is truly deserved, but some are decent enough.businesses.
- by canon40d June 30, 2009 12:26 AM PDT
- In the last 3 years, I have ordered over $6000 worth of photographic equipments from 2 New York and New Jersy retailers and they're are B&H and Buydig/Beach. These guys are reputable dealers, their prices are cheaper than your local brick & mortar stores but not rediculously cheap that once you look at the price you know they're all BS. You get what you order with B&H, Buydig/Beach, Adorama,, Newegg or 17th Street and never have to deal with a phone call from them (if you order a $8000 600mm f/4 L IS lens, they may contact to confirm your puchase and that's it). Just check the reviews on resellerratings.com if you're not sure.
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- by sythara June 30, 2009 7:46 AM PDT
- B&H is not on the list.... right? (unless I missed it)
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- by tzetter July 2, 2009 1:18 PM PDT
- I've always had a great experience with B&H, highly recommended. Shopped both in their store and on the web and always legit.
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Showing 1 of 2 pages (51 Comments)Their prices are well within 5-10% margin from big retailers like Amazon which simply means their overhead is much less due to more efficent business practices and/or cheaper labor.