THAT ADVERTISED COMPUTER DEAL MAY SEEM LIKE a steal -- but after you investigate the store's return policy, you may change your mind about who's stealing from whom.
The vast majority of consumers who call me for legal advice concern cases that are not practical for my law firm to take since the amount in controversy is too small to justify attorney involvement - since my fees would be greater than any potential recovery - and for one reason or another the case cannot be brought as a class action.
One area that comes to mind is PC sales. For example a person buys a $1,500 dollar PC or laptop over the internet from a discount outlet and after they plug it in and turn it on they learn it does not work as advertised. The mousepad is defective, the hard drive is too slow, the laptop's battery life is half of that advertised, the screen is not bright enough - the list goes on and on. They try to return it and they learn for the first time about the small print - they have to pay the cost of shipping and a 15% restocking fee.
To make sure you don't get taken for a ride with your next PC purchase, keep these tips topmost in your mind.
Do Business Above Board: Look for a well-known and respected company
Legitimate retail and mail-order vendors are typically fanatical about customer service and more likely to be flexible in accepting your return of an unsatisfactory system. To find out whom you're dealing with, research the reseller's customer service ranking by reading computer magazines and web sites, and ask friends and family for recommendations when buying locally. As a rule of thumb, be wary of companies that list a post office box as an address or that you never heard of.
Read the Fine Print
Basically, you should ignore any service-related sales pitch -- all promises are worthless unless they're included in the product's written warranty. Most computer sales agreements state -- in small print, of course -- that many of the default warranties are disclaimed by manufacturers
and resellers, although reputable companies usually offer a limited warranty (one to three years on parts and labor, and frequently one year of on-site service for problems that the vendor determines can't be solved over the phone). Some companies may offer a two-week return policy, but who can discover problems in a new PC in such a short time? Your best bet is to do business with a vendor that offers a 30-day, no-questions-asked return policy.
Refuse Restocking Fees
If you're dissatisfied with your purchase, why should you have to pay to put it back on the shelf? Restocking fees -- initiated to deter term-paper-writing students and other customers from buying computers for short-term projects and returning them 29 days later for full refunds -- can range from 10 to 15 percent of the purchase price. Again, read ads carefully and steer clear of vendors that charge restocking fees.
Avoid Exchange-Only Policies
Exchange-only (no refund) policies are rare on PC purchases, but quite common for printers and software. When you're buying a complete system including a computer, printer, and software, ask the reseller to waive the exchange-only policy for the latter components if you decide to return the whole bundle. And make sure to get the agreement in writing. In some cases, a reseller may have an exchange-only policy for software, while the manufacturer or publisher offers a more liberal 60-day satisfaction guarantee. Ask the vendor to honor the manufacturer's policy, or return the software directly to the publisher for your refund. Be aware that the publisher will usually require a copy of your receipt and ask you to mail the software within a given time period, as well as pay for return postage.
Stamp Out Return Shipping
You're finally obtained a 30-day, no-questions-asked return policy without a restocking fee -- only to get stuck on stamps. Many PC vendors require you to pay return shipping for computer equipment you wish you never bought in the first place -- even systems that were dead on arrival. Find a vendor who will agree, in writing, to pay for shipping costs of all returns. And always make sure the package is insured and that someone has to sign for it.
Get Low Price Protection
Nothing's more irritating than buying a Compaq from a computer superstore only to find it cheaper the next day in an office supply superstore. Low price protection -- in which a store agrees to match another reseller's lower price -- can get you your money back, but it isn't a given.
Most retail stores won't match prices with mail-order companies or other retailers located outside the immediate region. And you usually have to provide proof of the competitor's lower price, which may not be advertised for easy clipping. Do your homework before demanding that a retailer match a lower price.
Prefer Plastic
Paying by credit card has some great advantages. First, if you're unhappy with your purchase, you can stop payment by requesting a chargeback from your credit card company. In addition, your card issuer will mediate disputes with the reseller, which provides an extra deterrent against unfair business practices. As another perk, many credit cards -- especially gold cards -- will double your computer's warranty. If a mail-order vendor adds a surcharge for credit card payments, shop elsewhere.
Watch for Jurisdiction and Arbitration Provisions
Some sales agreements require you to litigate any dispute in another state. Fortunately, these jurisdiction provisions are rarely enforceable against an individual who buys a few thousand dollars' worth of computer equipment via mail order. Another annoying clause to watch out for is the arbitration provision. Never agree to arbitrate disputes without first consulting a lawyer. By agreeing to an arbitration provision, you waive your right to sue the reseller in court. You don't want to be forced to spend extra cash hiring an arbitration organization to resolve a small dispute.
Don't Take No for an Answer
What if the reseller flat-out refuses to accept your return? First, make a final attempt in writing to convince your vendor to refund your money before taking legal action. Next, call your credit card company to do a chargeback and to put pressure on the merchant. Then contact
the Better Business Bureau (www.bbb.org) and Federal Trade Commission (www.ftc.gov) and ask them to assist you.
If all else fails, file a lawsuit.
Such suits are usually in the jurisdiction of your local small claims court. Check for the small claims court monetary limit in your state (in California, for example, the limit is $ 5,000). If your damages are above the limit, you must either waive the excess amount or hire a lawyer to file suit in a regular court. The benefit of small claims court is that neither side can bring a lawyer and the case is decided quickly. Be sure to bring evidence of your payment, as well as a paper trail of your computer problems and the vendor's failure to honor its warranty or guarantee. Keep your case simple and don't argue directly with the defendant -- address the judge only.
If your case is straightforward, the court will likely grant you a judgment. The next step is to enforce the judgment -- if the defendant is uncooperative, you might need to hire a collection agency or an attorney to assist you.
Of course, if you do your homework, it's unlikely that You'll find yourself in court fighting off the computer giants. A little prepurchase research into a retailer's policy is usually all it takes to protect yourself against a PC lemon.
