Best Buy sued over price-matching denials

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24 Mar 09 18:03 by Jared Newman in category Uncategorized To news archive

A lawsuit alleging deceptive price-match practices at Best Buy stores will proceed under Class Action Certification in New York State, a US District Court judge ruled last week.

We recently covered HDGuru’s own struggles with price matching at Best Buy, and now the website breaks this story, reporting that New York state residents can join plaintiff Thomas Jermyn in the class action suit. In a complaint, Jermyn alleges that Best Buy uses its price match policy "as a ploy, to lure unsuspecting consumers into its stores and to induce them to purchase its merchandise, while allegedly having an undisclosed ‘Anti-Price Matching Policy,’ pursuant to which employees aggressively deny customers’ legitimate price match requests."

The complaint is backed by internal documents, dispositions from two current Best Buy employees and claims from former employees that the retailer promoted an anti-price-matching policy among managers and other key personnel. Best Buy allegedly taught employees how to deny price matches, offered financial incentives that were partly based on this practice and overall denied roughly 100 valid price matches per week, the complaint says.

There appears to be a proverbial smoking gun in HDGuru’s story, in which a member of Best Buy’s Competitive Strategies Group makes light of shoddy price-matching practices in a company memo, but the validity of this document is in dispute. A commenter — whose IP originates from Best Buy headquarters, HDGuru notes — accused the website of "selective editing" and "poor journalism." Best Buy also tells Ars Technica that the memo’s author is a "long-standing employee with a sense of humor."

Michael Braunstein, the attorney representing Jermyn, encourages people interested in joining the lawsuit to contact him at mbraunstein@kgglaw.com or (845) 356-2570. He’ll also listen to complaints from people outside of New York, though they can’t participate in the suit.

On Monday, Connecticut Attorney General Richard Blumenthal said the state is considering its own lawsuit over price-matching. The Hartford Courant, which reported that story, has a copy of the full New York complaint available as a .PDF file.

10 Comments

MP|3
Posts: 2908
Posted on: 24 Mar 09 20:10
test
guest
Posts: 15288
Posted on: 24 Mar 09 20:41
yippy!!! i cant hardly wait.
shaolin007
Posts: 883
Posted on: 24 Mar 09 21:11
"The court decision lists parts of an internal Best Buy document dated 10/19/2006, written by Phil Britton, a member of Best Buy’s Competitive Strategies Group. Its entitled “Competition Insider Templates”, here’s an excerpt:
“Price Matches
It looms on the wall, on a 9 foot sign. Our Price Match policy. There it is plain as day in English (Y en espanol para los de usted que puede leerio.) However, just because it is our policy, do we abide by it? Does it really help the customer?
What is the first thing we do when a customer comes in to our humble box brandishing a competitor’s ad asking for a price match? We attempt to build a case against the price match. (Trust me, I’ve done it too). Let’s walk through the “Refused Price Match Greatest Hits:”
Not same model? Not in stock at the competitor? Do we have free widget with purchase? Is it from a warehouse club (they have membership fees, you know)? Limited Quantities? That competitor is across town? We’ve got financing! Is it an internet price? It’s below cost!…..”"

After reading that, I hope they get nailed to the wall. That is just ridiculous.
guest
Posts: 15288
Posted on: 24 Mar 09 23:20
Doesn't there need to be actual damages of some sort for a law suit? As much as I personally dislike Best Buy (their prices aren't that great and their after-sales customer support is horrible), I don't see actual damages here. If you walk in to Best Buy with a competitors ad which advertises a lower price than Best Buys price for the same item, and they don't match it, why wouldn't you just go to the competitor and buy the item? Who/what is forcing you to buy the item at Best Buy? I sincerely hope people soon learn to think for themselves and get over this law-suit crazy mentality every time they don't get their way on something. We're already paying higher prices than necessary because of the lawyers' fees.
guest
Posts: 15288
Posted on: 25 Mar 09 00:31
It's pretty ridiculous, but it seems like a joke that should've stayed in house. Still, not funny?
shaolin007
Posts: 883
Posted on: 25 Mar 09 01:11
@Compuser


I think they do. It could fall under false advertising.

Corporate site says:

"Store Price Guarantee: Best Buy will match any lower advertised price from local competitors for the same product."

It doesn't say anything about, "Well, when we feel like price matching. It just says they do."

If they were smart, they would take a play from Walmart's book. Price match it regardless if you are going to lose money on it. A happy customer will always be back and spend in your store. Walmart estimates that the average joe will spend over 100,000 dollars or more in their lifetime at a Walmart store. To them, losing a few bucks to keep your business is no big deal because they know they will get it back. Seems to work for Walmart just fine.
Zod
Posts: 438
Posted on: 25 Mar 09 02:15
I'm not sure about best buy usa, but I am about best buy Canada. I bought guitar hero world tour for 197.99 off their website. Walmart put it on for 149.96 a few weeks later. I sent them an email asking for a PM.. they matched it plus 10 percent of the difference. It took them a few days to do it.. but it was a pretty painless process. I did it by email, which is very unpersonal.. if they were going screw me over you'd think it be via email, but they didn't. Haven't tried to PM there in person before.
BitRate
Posts: 410
Posted on: 25 Mar 09 10:53
Worst Buy strikes again!
johnzap
Posts: 498
Posted on: 25 Mar 09 12:11
Note to the editor: please correct the following sentence:

"In the ruling, Jermyn alleges".

It's not a ruling, right? Judges make rulings. In this case, it should be "In the complaint, Jermyn alleges".[IMG]file:///C:/DOCUME%7E1/PT00016/LOCALS%7E1/Temp/moz-screenshot.jpg[/IMG][IMG]file:///C:/DOCUME%7E1/PT00016/LOCALS%7E1/Temp/moz-screenshot-1.jpg[/IMG]
guest
Posts: 15288
Posted on: 25 Mar 09 16:09
done. thanks!

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