Archived: Feb 25, 2008

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Digital transition not so smooth for many customers

New report finds some area retailers misleading customers

By Ryan Cardarella

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“*Retail clerks are providing inaccurate or misleading information about the upcoming digital transition, and these mixed signals will cost consumers time and money.*”
– Sam Bingham, WISPIRG

Ahead of the upcoming digital television transition slated for Feb. 17, 2009, a new report released by the Wisconsin Public Interest Research Group (WISPIRG) claims that local retailers are misleading consumers about the changeover.

Using secret shoppers at 132 electronic retailers in 10 states, the report found that sales staff frequently misled customers about new conversion boxes, the government coupon system, and the actual transition date. Shoppers asked uniform questions, including when the specific transition date is, how much converters cost and what the details of the government coupon program were.

According to the report, the transition will force 22 million Americans with older analog television sets to purchase a digital conversion box by the aforementioned date. The transition does not affect cable and satellite users, and the government is offering two $40 coupons per home to offset costs, with most boxes running about $40. The coupons expire after 90 days and do not cover more expensive converters.

Milwaukee findings at area retailers Best Buy, Circuit City, RadioShack, Target and Wal-Mart found that half of the sales representatives questioned by secret shoppers provided inaccurate information about the new conversion boxes, and over a third provided inaccuracies about the coupon program and transition date.

Some area retailers also tried to up-sell customers to a more expensive converter, or attempted to sell customers a brand-new television set, and many did not properly label analog sets for sale that will require the converter.

“The results of our survey are clear,” said Sam Bingham of WISPIRG. “Retail clerks are providing inaccurate or misleading information about the upcoming digital transition and these mixed signals will cost consumers time and money.”

Bingham stated that stores are simply not doing enough to educate customers or their staff on the transition, but stopped short of accusing retailers of purposely misleading consumers for profit. He said that the main purpose of the report is to ensure that correct information is getting out to consumers well in advance of the transition.

“To consumers, it does not matter whether sales clerks were intentionally misleading our secret shoppers or if they were simply misinformed, the result is the same,” said Bingham.

Representatives from Best Buy and Circuit City claimed that their employees are well equipped and ready to help customers with the transition.

“We have literature in the store on the coupon program and our staff is well informed on the transition,” said Trey Hill from the Mayfair Best Buy. However, Hill added that the majority of customers are interested in buying a new television, and called the transition “an excuse for people to buy a new set.”

Recommendations in the report include making sure sales representatives are adequately educated on the transition, consumers are aware of the coupon program, and analog TVs still on sale are properly marked.

“We are just trying to give retailers a kick in the butt,” said Bingham.

For more information on the transition and the report itself, visit wispirg.org.

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