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How to Avoid Tech Rip-offs PDF Print E-mail
Written by Bruce Naylor   
Monday, 25 February 2008

How to Avoid Tech Rip-offs

Last week I received the new TigerDirect catalog. My experience with them has always been good, and I turn to them when looking for cool tech stuff. On the back of the catalog was a large add for a USB AirCard, that allows fast EV-DO internet connection with decent speed. The card was $29.00 after a $50 mail in rebate. It appeared I would receive a $75.00 gift card.

After reading the ad, I saw the monthly service from Sprint was only $59.99 per month. This is a pretty good deal for a mobile broadband connection, that would allow me high speed broadband anywhere! I next proceeded to read the fine print.

Gotcha # 1 The $59.99 monthly charge didn’t include a $6.84 per month USF fee, a .75 cent Administrative Fee, a .20 cent Regulatory Fee. So the real monthly fee before state and local charges come to $67.51 per month before taxes and state and local fees.

Gotcha # 2 In small print was a $36 activation fee, and if $200 early termination fee. These junk fees are subject to change period. So according to the fine print those junk fees can change to any amount at any time.

Gotcha # 3 There is no roaming to boot. You also are not permitted to share the internet connection as well.

Gotcha# 4 The mail in rebate requires purchase by 2/29/09 and activation by 3/1/08. Wow how umm generous

Gotcha # 5 What about that $75 gift card? Well you have to #1 Buy the AirCard, #2 Activate the service , and #3 purchase a laptop => $399

In my opinion although the ad is truthful, it is also deliberately confusing and perhaps deceptive. The $75 Gift Card in large print, the data plan for a low $59.99 per month. These practices are not unique to tech. This seems happening with more and more industries such as cable operators, cell phone providers, banks, credit card companies and others.

So here are some do’s and don’ts

Do: Read everything carefully, Read the fine print! The devil is always in the details.

Do: Ask the company what the entire bill is, not the advertised price, ask about things such as auto renewing contracts, cancellation fees, and other hidden fees.

Do: Understand everything you are committing to; if you are signing a contract, make sure to enter the expiration date in you calendar.

Do: Document your conversations with the company including the date of call, the person you spoke to, and make notes about the conversation.

Do: Pay by credit card and not a debit card. There are huge differences between them.

Do: Understand cancellation and refund policies. Be alert for things like restocking fees.

Don’t: Don’t let price be your guide. Look for the best quality, features, and service your budget will allow.

Don’t: Sign anything you don’t fully understand. If your looking a complicated, or expensive purchase you may even want to consider consulting you accountant or attorney before hand.

Don’t : Assume anything. Get everything in writing, read it, and read it again.

Don’t: Purchase based on a mail in rebate price if you are a procrastinator or too busy to follow up for it.

Don’t: Purchase extended warranties on most electronics, This a huge profit center for retailers, and manufactures. One possible caveat is for laptop computers due to the expense of a broken display.

And finally, ..

Do: Purchase from a well known, and respected source. It is better to pay a little more, and have the peace of mind that you will get a good product, backed with good service at a fair price.

 

 

 

 

 

 
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