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Old 12-15-2006, 08:07 PM   #1 (permalink)
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Circuit City Price Guarantee / Price Match / Price Protection - Breaches

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Last edited by 3bikes; 11-27-2009 at 01:27 PM.
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Old 12-18-2006, 12:36 PM   #2 (permalink)
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Local Store

I thought I would be able to get Best Buy and Circuit City to hook me up some awesome deals as well.

I told them, I can get that from Newegg for $20 less!

They told me their "Price Guarantee" was for Local Stores only. And with the item being in local stock. And they pretty much covered themselves in all areas. Just read their policy on it! Special deals, prices, etc... Not covered!

You didn't mention anything about this part during your post. So naturally I wanted to respond and let you know this so you could post the story behind why you posted your post. Which store didn't honor this, and for what reason? What other store had a lower price? What was the item, what was the price?

You've left out a whole lot of information here!

Last edited by www2000; 12-18-2006 at 12:39 PM.
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Old 12-20-2006, 10:10 AM   #3 (permalink)
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I really dont mean to sound like a complete jerk but, COME ON!?!? You are really going to sue circuit city over something like this? Maybe a part time job would keep you more busy. If you think circuit city doesnt have every single angle already covered you are wrong and you are going to lose your case.
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Old 12-25-2006, 11:19 AM   #4 (permalink)
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Circuit City Price Guarantee often not honored

In response to WWW2000, the text of a letter I wrote to Circuit City will explain the factual background of my complaint and small claims case. As you will see, my facts are quite unlike yours and they fit squarely within the terms of Circuit City's written price guarantee (as it appeared on the CC web site at the time of my purchase).

In response to SellYourStuff: Yes I really do intend to sue, and in fact I already have filed the papers. The matter should come up for trial in in 3-6 months. No, I do not believe Circuit City has every angle covered and that I'm am going to lose my suit. I feel that the facts and the law are very much in my favor. Assuming my small claims case is heard by a fairly reasonable and conscientious magistrate I believe I will win. I feel that Circuit City's conduct toward me is unconscionable. They did almost exactly the same thing to a fellow shopper from my area (see letter below) and I can see from various Internet postings that CC has engaged in a pattern of breaching its written price guarantee in stores all over the country. So, my suit is not just to vindicate my own rights. I am acting as a "private attorney general" to vindicate the rights of consumers at large. Perhaps if others who have been similarly injured join me in bringing suits of this nature we can begin to expect Circuit City (and other retailers) to behave a bit more ethically.

Note that Circuit City has recently revised the price guarantee that appears on its web site. See
http://www.circuitcity.com/ccd/lookL...Oid=105471&c=1
While the price guarantee now has more specifically decribed limitations, events such as the Black Friday sale are not among those enumerated. Circuit City has the means to exclude events such as Black Friday from its written price guarantee if it wishes to do so. It has not chosen to do so.

Anyone wishing more information may contact me at 3bikes@snet.net.

-------------------
Mr. George D. Clark Jr.
Exec. VP and Pres. of Retail Stores
Circuit City Stores, Inc.
9950 Maryland Drive
Richmond, VA 23233

Dear Mr. Clark:
I wish to complain about certain unfair and deceptive trade practices recently engaged in by the Circuit City store located at 110 Federal Road, Danbury, CT 06811.
On November 17, 2006 I purchased an Olevia Model 232V 32 inch LCD TV from Circuit City. The price (both in-store and on web site) was at the time $899.99. Prior to making the purchase I asked the sales associate who was helping me whether I would be entitled to a partial refund should Circuit City put this item on sale on “Black Friday”, November 24th. (My question was actually rather pointed. I had learned from an Internet search earlier that day that Circuit City reportedly planned to sell this item on Black Friday for $474.99. I also knew that Circuit City states on its web site that it has a price guarantee policy.) The sales associate assured me that Circuit City has a price guarantee policy and that I would be entitled to a partial refund should Circuit City actually advertise the item for sale at a lower price on Black Friday. Relying upon this representation, I purchased the TV on November 17th, rather than waiting for Black Friday.
Note that Circuit City’s price guarantee actually appears on its web site. It reads as follows: “If you've seen a lower advertised price from another local store with the same item in stock, we want to know about it. Bring it to our attention, and we'll gladly beat their price by 10% of the difference. If you see a lower advertised price (including our own sale prices) within 30 days of your purchase, we'll refund 110% of the difference. Our policy applies only to advertised prices. It does not apply to special offers or promotions, including rebates, free-with-purchase offers and special financing. Unfortunately, we are not able to provide price matches online, so please visit the closest Circuit City store to take advantage of our Price Guarantee.” A screen shot of Circuit City’s price guarantee policy, taken from its web site, is enclosed herewith. I see nothing in this written policy which would exclude items advertised for sale by Circuit City on Black Friday. The proviso that the policy “does not apply to special offers or promotions, including rebates, free-with-purchase offers and special financing” is, at best, ambiguous. It would clearly invite mischief to permit Circuit City to exclude certain advertised sales, by secretly deeming them “special”.

Circuit City did in fact place the Olevia Model 232V on sale for $474.99 on Black Friday, as a “6 Hour Special” which began at 5 AM, and it advertised the same in a newspaper insert on November 23rd. Indeed, the item is advertised quite prominently, at the top of the first page of the insert! There is nothing in the advertising insert (including the copious extremely fine print) which would appear to exclude the advertised items from the scope of Circuit City’s written price guarantee. A photocopy of the relevant portion of the newspaper insert is enclosed for your inspection.
I went to Circuit City today, at 9 AM, before the expiration of the “6 Hour Special” and sought the refund I had been promised by Circuit City’s sales associate the previous week. (According to the store’s written policy, which appears on its web site, I am contractually due a refund of (899.99-474.99) x 1.1 = $467.50.) The store manager declined to honor the sales associate’s oral promise and the store’s written policy, asserting by fiat that Circuit City’s price protection guarantee is not applicable to the Black Friday sale. Note that this is contrary to the representation made by the sales associate when I made my purchase and also contrary to the price guarantee stated on the store’s web site. Refusal to honor this policy is dishonest and a breach of contract.
Moreover, as if to add insult to injury, when I asked whether I could purchase another TV at the sale price the store manager asserted that there were actually none in stock. Given the very prominent location in the advertising insert for this item one would tend to conclude that that there were none of these items in stock on the eve of the sale and that Circuit City intended to bait and then switch its customers.
Curiously, while I was at Circuit City today I met another gentleman from Danbury, <DM>, who had a similar complaint. He told me that he had bought a flat panel TV about 26 days ago and had asked the sales associate what kind of accommodation Circuit City would make if the item were later to go on sale. He informed me that the sales associate had represented that a partial refund could be obtained if the same item when were to be advertised by Circuit City at a lower price within the next 30 days. Mr. <M> told me that the store manager had also refused to honor for him Circuit City’s price guarantee. You may expect to receive a similar letter of complaint from Mr. <M>.
If you wish me to remain a Circuit City customer I would urge you to take appropriate, corrective action.

I have brought this matter to the attention of Richard Blumenthal, Attorney General of the State of Connecticut. I reserve the right to pursue independent legal action against Circuit City.

Sincerely,
<AS>

----------------------------------------

Text of small claims complaint:

On 11/17/06, Plaintiff purchased an Olevia Model 232V LCD TV for $899.99 from Defendant's store located at 110 Federal Road, Danbury. Prior to completion of purchase, and in response to question posed by Plaintiff, Defendant's agent represented that Defendant would honor its written "Price Guarantee", whereby Defendant promises to refund 110% of the difference between purchase price and lower price advertised by Defendant for same item within 30 days of purchase. In an advertising insert in the 11/23/06 Danbury News Times, Defendant advertised that it would sell the Olevia Model 232 LCD TV for $474.99 on 11/24/06. On 11/24/06 Plaintiff appeared at Defendant's Danbury store and requested refund promised. Defendant's agent refused to honor this request. Plaintiff claims actual damages for (1) breach of contract and (2) detrimental reliance, and actual and punitive damages for (3) violation of Conn. Gen. Stat. Section 42-110b.
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Old 12-25-2006, 05:56 PM   #5 (permalink)
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Hmm

This is pretty interesting, cause you see so many people trying to buy before BF and price match. I was considering doing this, but after doing ALOT of reading and research, the best answer I could get regarding whether to do this or not was YMMV (your mileage may vary). I totally understand where you are coming from, and it really sucks. But you do have to remember, that the ads that are posted pre-BF are really confidential information. Mentioning that you knew ahead of time that the price was going to drop isn't going to help your case. I have no doubt that the store manager knew what you were trying to do (beat all the BF madness, and save some money), and in your case, he's usually the one who makes the the final call, and thats why you hear YMMV. BUT, I do think CC should honor their policy, I too hate hearing these price match policies touted so freely, then being honored subjectively. So... GOOD LUCK!!! I'm not sure exactly how much you're going to need.
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Old 12-25-2006, 10:39 PM   #6 (permalink)
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Circuit City Price Guarantee Breaches

In reply to ajhewitt:

(1) Sure the Circuit City BF advertisement I found on the Internet on 11/16 had once been confidential information. But when I found it on the Internet (as an unintended result of a Google search for a review of the TV I wished to purchase) this information had lost its confidential status. It had been made public, available for all to see on the Internet. One can safely assume that the BF ad I found on the Internet had not been placed there by Circuit City, but rather by some dishonest employee, an employee of CC's advertising agency or the like. The person who put this information on the Internet missapropriated CC's trade secret information and committed a tort. Circuit City is free to seek legal redress against this tortfeasor, and I am sure they will try. (The CC store manager even grumbled something to this effect.) Nevertheless, once this information became public on the Internet anyone - except the person who actually made the tortious disclosure in the first place - was free to use the informtion. I committed no tort by finding it on the Internet, and my use of this advance information about CC's BF sale (described below) was in no way unlawful or unethical.

(2) On 11/17, the day after I found the Circuit City Black Friday ad on the Internet, I went into my local CC store, found a sales clerk in the TV section, and asked him whether the Olevia 232v was in stock. When he replied that it was in stock I very pointedly informed him that I had found the BF advertisement on the Internet and that (to the extent it was genuine) it indicated that the TV I wanted would be marked down from $899.99 to $474.99 on Black Friday. I then very pointedly asked him whether I would be entitled to a refund of the difference if I bought the TV for $899.99 on 11/17 and if it were in fact placed on sale for $474.99 on BF. The sales clerk replied, quite explicitly, that I would be due a refund, in accordance with Circuit City's price guarantee. I then bought the TV, relying upon the sale's clerk's representation of fact. If the sales clerk had told me that BF sales are excluded from Circuit City's price guarantee then I could have chosen to either buy the TV at full price or wait until BF, stand in line at 5 AM and take my chances that I would actually get the item I wanted at the BF sale price. I was deprived of this choice because I relied upon the sales clerk's representation that I could safely make my purchase on 11/17 because the store's price guarantee would apply to items advertised for sale on BF. The sales clerk's statement was an affirmative representation of fact respecting the scope and meaning of Circuit City's of written price guarantee. Under a Connecticut law, the Connecticut Unfair Trade Practices Act (Conn. Gen. Stat. Section 42-110b), as interpreted by the regulations promulgated by the CT Commissioner of Consumer Protection, it is an Unfair Trade Practice to make such affirmative representation of fact with respect to a guarantee and then not fulfill the obligations under the guarantee. Thus, CC has violated CUTPA and under the statute I am entitled to actual damages, and punitive damages in the discretion of the court. I am also entitled to damages under a quasi-contractual legal doctrine called "detrimental reliance". Circuit City is estopped from denying that its price protection guarantee applies to BF sales because I clearly relied upon the sales clerk's representation that the guarantee does apply to BF when I made my purchase.

(3) Yes, of course I was trying to avoid the BF madness by making my purchase on 11/17 and by relying upon the fact that CC's written price protection guarantee would entitle me to a refund of the difference. There is nothing illegal or unethical on my part in trying to do this. What I did was simply rational. If Circuit City did not wish me to avail myself of this very rational means for avoiding standing on line at 5 AM on BF they could have posted to their web site a written price guarantee that explicitly excluded price matches for BF sale items. They could have posted signs in their stores, 30 days in advance of BF, saying that their price protection guarantee did not apply to BF sale items. They could have warned their sales clerks to not represent that the price protection guarantee is applicable to BF sale items. They did none of these things. By no objectively reasonable interpretation does CC's written price guarantee (as it appeared on the CC web site on 11/24) exclude FB sale items. According to the above-mentioned the regulations promulgated by the CT Commissioner of Consumer Protection, a business that advertises a price guarantee must clearly disclose any limitations that apply to such guarantee. Do you see any clear disclosure by CC on its web site that its price guarantee does not apply to BF. I don't see any clear disclosure to such effect. What I see is a very clear offer to sell me a TV with a very clear price protection guarantee. I accepted that offer by purchasing the TV. Now I expect CC to hold up its end of the bargain and honor the terms of its price guarantee.

(4) In the face of complaints such as mine, Circuit City could have amended the wording of its written price protection guarantee to prospectively exclude specific sale events such as BF. But they have not done so. If you look at the price protection guarantee as it appears on the CC web site today you will see that they have tightened up other limitations, but there are still no explicit exclusions of sales such as BF. Indeed, rather than reducing the scope and attraction of its price guarantee, CC has increased its gravitational pull. The day after BF CC increased the refund to for TVs under its price guarantee from 110% to 125%.

So, ajhewitt, I'm sorry but I cannot agree with you. Legally and ethically it is CC that is in the wrong.
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Old 12-25-2006, 10:52 PM   #7 (permalink)
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I am so sick of this kind of unethical business practice by these huge corporations... it is ridiculous. Go get 'em!

I was in Circuit City last year trying to deal on a 42" Panasonic Plasma and the sales person did not know math very well apparently because when I asked if I could get $400 off a $3600 plasma, he said no... the most we could knock off would be about 10%. LOL

Then when I said that 10% would be great, I will take one, he walks off to talk to the manager and comes back with his tail between his legs telling me NO.

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Old 12-25-2006, 11:52 PM   #8 (permalink)
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I hope your lawyers are better than their lawyers because you'll lose on this one. The Black Friday “6 Hour Special” sale squarely falls under the "does not apply to special offers or promotions" clause as the "6 Hour Special" sale is a special offer and or promotion.
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Old 12-26-2006, 08:09 AM   #9 (permalink)
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heh

dude, when I said "GOOD LUCK", I really meant it... I'm cheering for YOU... I"m on your side, so I hope your suit works out in YOUR favor NOT CC's. Please have a couple eggnogs and calm down a tad plz.
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Old 12-26-2006, 12:22 PM   #10 (permalink)
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Well the "6 hour sale" is a special promotion, hands down no doubt about it. I would also guess the TV had some type of rebate or "instant savings" when you check out. I went to CC on BF and everything was on sale but out of the 5 things I bought they all had mail in rebates.

If you have that much time to spend on something like this then if it would make you happy go for it, thats why we live in a free country. But make no mistake about it, you are going to lose.
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