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 Circuit City's Price Guarantee A Sham
Posted Mon December 25, 2006 5:17 pm, by Alan S. written to Circuit City
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Below is the text of a letter sent to Circuit City Stores Inc. on November 24, 2006.
Mr. George D. Clark Jr.
Exec. VP and Pres. of Retail Stores
Circuit City Stores, Inc.
9950 Maryland Drive
Richmond, VA 23233
Dear Mr. Clark:
I wish to complain about certain unfair and deceptive trade practices recently engaged in by the Circuit City store located at 110 Federal Road, Danbury, CT 06811.
On November 17, 2006 I purchased an Olevia Model 232V 32 inch LCD TV from Circuit City. The price (both in-store and on web site) was at the time $899.99. Prior to making the purchase I asked the sales associate who was helping me whether I would be entitled to a partial refund should Circuit City put this item on sale on "Black Friday", November 24th. (My question was actually rather pointed. I had learned from an Internet search earlier that day that Circuit City reportedly planned to sell this item on Black Friday for $474.99. I also knew that Circuit City states on its web site that it has a price guarantee policy.) The sales associate assured me that Circuit City has a price guarantee policy and that I would be entitled to a partial refund should Circuit City actually advertise the item for sale at a lower price on Black Friday. Relying upon this representation, I purchased the TV on November 17th, rather than waiting for Black Friday.
Note that Circuit City's price guarantee actually appears on its web site. It reads as follows: "If you've seen a lower advertised price from another local store with the same item in stock, we want to know about it. Bring it to our attention, and we'll gladly beat their price by 10% of the difference. If you see a lower advertised price (including our own sale prices) within 30 days of your purchase, we'll refund 110% of the difference. Our policy applies only to advertised prices. It does not apply to special offers or promotions, including rebates, free-with-purchase offers and special financing. Unfortunately, we are not able to provide price matches online, so please visit the closest Circuit City store to take advantage of our Price Guarantee." A screen shot of Circuit City's price guarantee policy, taken from its web site, is enclosed herewith. I see nothing in this written policy which would exclude items advertised for sale by Circuit City on Black Friday. The proviso that the policy "does not apply to special offers or promotions, including rebates, free-with-purchase offers and special financing" is, at best, ambiguous. It would clearly invite mischief to permit Circuit City to exclude certain advertised sales, by secretly deeming them "special".
Circuit City did in fact place the Olevia Model 232V on sale for $474.99 on Black Friday, as a "6 Hour Special" which began at 5 AM, and it advertised the same in a newspaper insert on November 23rd. Indeed, the item is advertised quite prominently, at the top of the first page of the insert! There is nothing in the advertising insert (including the copious extremely fine print) which would appear to exclude the advertised items from the scope of Circuit City's written price guarantee. A photocopy of the relevant portion of the newspaper insert is enclosed for your inspection.
I went to Circuit City today, at 9 AM, before the expiration of the "6 Hour Special" and sought the refund I had been promised by Circuit City's sales associate the previous week. (According to the store's written policy, which appears on its web site, I am contractually due a refund of (899.99-474.99) x 1.1 = $467.50.) The store manager declined to honor the sales associate's oral promise and the store's written policy, asserting by fiat that Circuit City's price protection guarantee is not applicable to the Black Friday sale. Note that this is contrary to the representation made by the sales associate when I made my purchase and also contrary to the price guarantee stated on the store's web site. Refusal to honor this policy is dishonest and a breach of contract.
Moreover, as if to add insult to injury, when I asked whether I could purchase another TV at the sale price the store manager asserted that there were actually none in stock. Given the very prominent location in the advertising insert for this item one would tend to conclude that that there were none of these items in stock on the eve of the sale and that Circuit City intended to bait and then switch its customers.
Curiously, while I was at Circuit City today I met another gentleman from Danbury, "DM", who had a similar complaint. He told me that he had bought a flat panel TV about 26 days ago and had asked the sales associate what kind of accommodation Circuit City would make if the item were later to go on sale. He informed me that the sales associate had represented that a partial refund could be obtained if the same item when were to be advertised by Circuit City at a lower price within the next 30 days. Mr. "M" told me that the store manager had also refused to honor for him Circuit City's price guarantee. You may expect to receive a similar letter of complaint from Mr. "M".
If you wish me to remain a Circuit City customer I would urge you to take appropriate, corrective action.
I have brought this matter to the attention of Richard Blumenthal, Attorney General of the State of Connecticut. I reserve the right to pursue independent legal action against Circuit City.
Sincerely,
/AS/
Postscript: As I received no answer from Circuit City to the above quoted letter, I have filed a small claims action, seeking the jurisdictional limit for such claims in Connecticut, $5000. This suit alleges breach of contract, promissory estoppel and violation of Conn. Gen. Stat. Section 42-110b (Connecticut Unfair Trade Practices Act). Punitive damages are available under CUTPA.
He is what I want from Circuit City:
Conduct your business honestly and ethically. Don't be a corporate Gonef. If you promise your customers that they will be entitled to 110% of the difference if they buy an item from CC and if CC then places that same item on sale for less within 30 days, then honor the promise. If you do not intend to honor this promise then remove it from your web site and cease using it as an advertising ploy. Pay me what you owe me pursuant to the terms of your written price guarantee.
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by Ken Raym Posted Fri January 26, 2007 @ 7:28 PM
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The same exact thing happened to be in Ocala, Florida but the TV was
on sale again the day after Black Friday so I got my refund but they
would not give me the extra 10%. I was going to sue them also. I
would love to hear how this turns out.
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by e.a m. Posted Mon January 8, 2007 @ 7:28 PM
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Can't believe the way Circuit City conducts business. You have a good
case I believe (showed this to a friend that does research for a local
office)People deserve better service than CC is offering. Don't let CC
employees get you down.People here are with you on this.
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by David Drury Posted Tue January 2, 2007 @ 9:42 AM
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It is my experience that Circuit City uses the ambiguous wording in
its price protection policy to allow them to essentially make up the
rules as they go along. As a consumer, you are subject to the whim of
the personnnel in the store when you visit them to ask for them to
honor the price protection guarantee.
I recently purchased a Sony XBR 2 LCD TV at their store in Henrietta,
NY. A few days later, a local electronics store offered the same item
at a price that was $170 lower thatn the price I paid at Circuit
City.
I went back to Circuit City, and after waiting about 20 minutes so
that "the manager" could give approval, I was told that they would
honor the lower price. However, because a coupon was involved, they
would not match the 110% difference as stated in the guarantee.
However, their policy states as follows: "When calculating a local
competitor's price we will only consider the competitor's net price at
the point of salewe will not take into account mail-in rebates or
other forms of deferred savings." Since the net price I would have
paid at the other store on that day was lower, I felt that I should
have recieved the 10% difference as well.
Granted, this is only $17, and on a purchase of this amount, it is
hardly worth quibbling over. However, I feel that a good retailer will
live up to the spirit of the policy they offer. I feel that Circuit
City is trying to aggressively address the isues created by fraudulent
returns, but in doing so is actually alienating good customers that
they should be working to bring back to their store.
Over the past year I have spent nearly $4,000 at Circuit City, but
after this experience, I will only return there for an item or price I
cannot get elsewhere, and will instead shop at stores where I know I
will be treated fairly. It seems to me that while Circuit City saved
themselves $17 yesterday, they will lose a lot more than that in the
long run on the profits they could have made on my future purchases. I
guess that is their loss!
David Drury
Henrietta, NY
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by Lee H. Posted Tue December 26, 2006 @ 5:12 AM
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I suspect that within the six hour black Friday ad, there is a limit
to the number supplied.
Whereas the product was no longer available, by your own admission,
when arriving at the store at 9:00 AM, you would not be entitled to
relief under the quoted price protection policy.
I would further question your small claims action, whereas there would
further be no need to this letter. If something favorable should
happen within said action, I would hope we hear back from you.
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by ChrisMcD Posted Mon December 25, 2006 @ 9:22 PM
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NO ONE and I mean NO ONE will do a price guarentee on a doorbuster
item on Black Friday.... it is even stated in their add that they will
not honor any price matches on Black Friday....sorry your S.O.O.L....
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by Tina N Posted Mon December 25, 2006 @ 7:25 PM
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No one does a price match on Black Friday. And you are a childish
person calling people names in a business letter.
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