Best Buy Adds Disclaimer To Secret Website

In response to being sued and humiliated on the internet over their "secret website," reader MK says Best Buy has added a disclaimer that warns customers that the in-store kiosk doesn't display the same prices as the public website.

For those of you new to this issue, Best Buy was caught using a duplicate website to fool customers who tried to compare internet prices with in-store prices.

Customers who asked why the price was higher in the store were often told that "the sale must have ended" in the time it took them to drive to the store. They were then told to "check the website" to see for themselves, then were shown an identical-looking website that displayed different "in-store" prices.

We think Connecticut Attorney General Richard Blumenthal said it best back in May (right after he sued Best Buy):

"Best Buy gave consumers the worst deal - a bait-and-switch-plus scheme luring consumers into stores with promised online discounts, only to charge higher in-store prices," Blumenthal said.

"The company commonly kept two sets of prices - one on its Internet site and an often higher set on its in-store, look-alike, available on kiosks. The in-store site was an Internet look-alike, commonly with higher prices, which were charged to consumers. Best Buy broke its promise to give the best price - an Internet version of bait-and-switch - a technological bait-and-switch-plus.

"Best Buy used in-store kiosks to conceal lower online prices and renege on its price match guarantee. Consumers seeking bargains were led to believe that lower online prices had expired or never existed. Best Buy treated its customers like suckers, not patrons to be prized."

We hope this disclaimer puts a stop to that sort of behavior.

Connecticut Attorney General's Office
Press Release

STATE OF CONNECTICUT
NEWS RELEASE

ATTORNEY GENERAL RICHARD BLUMENTHAL
DEPARTMENT OF CONSUMER PROTECTION COMMISSIONER JERRY FARRELL, JR.

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Attorney General, DCP Commissioner Sue Best Buy For Deceiving, Overcharging Customers

May 24, 2007

Attorney General Richard Blumenthal today announced a lawsuit against Best Buy alleging the chain used in-store computer kiosks to deceive consumers about product prices and overcharge them.

Blumenthal worked with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr. to bring the lawsuit.

Best Buy operates an internal site accessible only at kiosks in its stores. The site is virtually identical to BestBuy.com, the company's web site, except for listing in-store instead of online prices. Consumers access information at the in-store kiosk by clicking on a tab labeled "BestBuy.com," even though they are not connecting to the internet site.

Since 2005, the company's stores have pledged to match any lower online price, including from their own Internet site. Many Best Buy salespeople falsely told consumers searching for or seeking to confirm lower online prices that the kiosk connected them to BestBuy.com. When the site displayed the higher in-store price, salespeople allegedly suggested that consumers, who thought they were viewing BestBuy.com, previously misread the lower online price or the online price had expired.

"Best Buy gave consumers the worst deal - a bait-and-switch-plus scheme luring consumers into stores with promised online discounts, only to charge higher in-store prices," Blumenthal said. "The company commonly kept two sets of prices - one on its Internet site and an often higher set on its in-store, look-alike, available on kiosks. The in-store site was an Internet look-alike, commonly with higher prices, which were charged to consumers. Best Buy broke its promise to give the best price - an Internet version of bait-and-switch - a technological bait-and-switch-plus.

"Best Buy used in-store kiosks to conceal lower online prices and renege on its price match guarantee. Consumers seeking bargains were led to believe that lower online prices had expired or never existed. Best Buy treated its customers like suckers, not patrons to be prized.

"Best Buy must do better. Consumers must recognize instantly and easily that the in-store kiosk is separate and distinct from BestBuy.com. Our action seeks to compel Best Buy to fix its deceptive kiosks, eliminate confusion and fulfill its price match policy. I will also seek restitution for consumers and civil penalties," Blumenthal said.

"It is extremely unfortunate that this company misled consumers as to what the 'best buy' actually was," Farrell said. "Putting into their stores a kiosk that led shoppers to believe they were getting the online price when that was far from certain, seems to have been an intentional effort to mislead. I hope that this lawsuit, filed under the Connecticut Unfair Trade Practices Act, puts retailers on notice that purposeful efforts to mislead consumers will be met by equally purposeful and vigorous enforcement of the law."

In reaction to Connecticut's investigation, Best Buy in March added a banner to its in-store site reading "This Kiosk Reflects Local Store Pricing," but Blumenthal and Farrell said the kiosks remain deceptive. The kiosk's appearance remains virtually identical to BestBuy.com; customers still access information by clicking a tab marked "BestBuy.com."

"The store's minor changes to its kiosks - made in response to my investigation - are inadequate and incomplete," Blumenthal said. "The in-store kiosks are still mislabeled 'BestBuy.com,' falsely leading consumers to believe they are connecting to the Best Buy Internet web site."

Best Buy has ten Connecticut stores. They are in Orange, Danbury, West Hartford, Manchester, Newington, Waterford, Meriden, Norwalk, Enfield and Stratford.