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Exclusive: Post-bankrupt Circuit City not honoring price match guarantee

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Business and Law
By Rick C. Hodgin   
Friday, November 28, 2008 10:19
Raleigh (NC) - TG Daily has received a report of consumers being deceived by false advertising at the Capitol Blvd. Circuit City (CC) store in Raleigh, NC. One couple, when trying to purchase a $2200 Sony HD TV, told Hodgin of their fate. The CC clerk agreed to honor the competitor’s price, but then intentionally rang up a lesser model at the checkout. When the couple saw what they thought was a mistake, the clerk replied, “I cannot honor that price on that TV,” and was determined to sell them the lesser TV or make no sale. The couple ultimately went back to the competitor and bought the TV there. The event took place over one week ago, long before Black Friday.


Circuit City’s 24-month credit

The couple had shopped at h.h.Gregg and found the Sony 1080p model they wanted. While the price there was good, h.h.Gregg only offers 12-month in-store credit. The couple knew of Circuit City’s offer of a price match guarantee and 24-month in-store credit. Rather than buying the HD TV at h.h.Gregg at that time, they decided to shop around for the better deal.

The couple left h.h.Gregg and, after dropping the wife at home, the husband continued to CC to find out what models they had. They had the same one in stock and on the floor right then the sales clerk agreed to match the price. He also offered them their 24-month in-store credit line - as advertised.

The consumer said “It sounds great, but I will need to speak with my wife. I'll be back.” He left the store to go home and consult, but it was too late that day to come back and buy the TV.


Bait and switch

Upon returning the next day, a different sales clerk again offered them the same price-match guarantee and the same 24-month in-store credit line. The couple agreed and went to checkout. There, they applied for the credit and the sales clerk rang up the Sony HD TV. However, when the consumers looked at their receipt they noticed the clerk rang up a different model. When the husband confronted the discrepancy, the sales clerk replied, “I cannot match that price on that TV. This is the best I can do.”

The clerk rang up the lesser model at the agreed upon price intentionally hoping the consumers wouldn’t notice. And while the capabilities of the alternate Sony HD TV are similar, and probably wouldn’t even be noticed by most when it’s delivered at some point in the future, these consumers knew exactly what they were looking for – model and all.

The consumer was quite angry at this point. He asked the sales clerk very clearly if they had agreed on the price on that model on the floor, and he said "Yes." He asked the clerk why he had done this, and again the clerk replied he could not sell that TV at that price. The consumer then asked to speak to the manager and was told that he was the manager. They withdrew their application for credit and left the store.


Lies and deceit

Circuit City lied to the consumer on the floor by agreeing to sell the TV at the price match guaranteed price. The clerk then switched products during checkout without telling them - hoping the consumers wouldn't notice. When they did, the clerk said they could not sell that TV for that price, and that the consumers had the choice of either buying the lesser model, or paying a higher price for the TV they wanted.

In the end, the consumers went back to h.h.Gregg and bought the TV with h.h.Gregg’s 12-month credit.


Note: While this article was posted on Black Friday, the event took place over one week prior.


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