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Scammers Exploit DTV Coupon Program
Posted: 09 April 2008 07:13 AM   [ Ignore ]
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Apparently a bunch of scammers are using the Digital TV coupon program to make a quick buck, taking pre-orders for a converter box that doesn’t exist and then doing a bait-and-switch for a different box.

It’s via an online outlet, according to the report.

Saw this on Slashdot today ...

http://tech.slashdot.org/article.pl?sid=08/04/08/2245248

Scammers Exploit DTV Coupon Program
Analog TV users must purchase a DTV converter box before broadcasts go digital in 2009, and the US Government is offering $40 coupons to support the transition. The coupon program requires retailers to become certified by the NTIA (the Government body running the program) before processing orders for the boxes. Apparently the certification program is a bit lax, as the frenzy to purchase DTV boxes using these coupons seems to have drawn unscrupulous fraud artists into the mix. Memsen, via its web site convertmy.tv and its hardware partner Maxmedia, partnered apparently to pull a bait-and-switch game on unsuspecting consumers and the US Government

Maxmedia and convertmy.tv (CMTV) together promoted the Maxmedia MMDTVB03, which appeared to be the most feature-rich of the coupon-eligible converter boxes. The box drew public interest and even coverage by 3rd-party review sites.

CMTV quickly took pre-orders for the box, and promised delivery first in April, 2008, and later pushed the date back to May. The company immediately redeemed the Government coupons (in violation of the program rules, which prohibit back-ordering) and charged customer credit cards. Early-adopting consumers were willing to overlook these practices, feeling they would eventually own the best box on the market.

CMTV yesterday announced that they would not be shipping the MMDTVB03 at all — it would be replaced by the MMDTVB02, which they claim will have a better picture. Of course, the “new & improved” box will not ship until June. As an alternative, CMTV indicated it would allow customers to switch to an inferior box for $5 less.

Consumers are outraged by CMTV/MaxMedia’s bait-and-switch tactics but are having difficulty finding out who these companies really are. Neither company publishes physical addresses or phone numbers on their web sites, and consumers have resorted to their own detective work to find the info.

As of April 8, 2008, the convertmy.tv web site is still accepting and processing orders for the “new” MMDTVB02 — in clear violation of the NTIA program rules, which only allows coupons to be applied to DTV boxes on its approved list.

[ Edited: 28 May 2008 11:07 AM by Jason Unger ]
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Posted: 11 April 2008 06:02 AM   [ Ignore ]   [ # 1 ]
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Buyer Beware!

You can find more information about DTV on one of the government websites:
http://www.dtv.gov/
https://www.dtv2009.gov/

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Posted: 11 April 2008 09:42 AM   [ Ignore ]   [ # 2 ]
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Looks like the big-box guys are in trouble, too, re:DTV transition.
http://www.electronichouse.com/article/fcc_slaps_retailers_with_fines_for_violating_dtv_rules/

The Federal Communications Commission just fined Wal-Mart, Best Buy, Circuit City, Sears and other retailers a combined $3.9 million for not properly labeling analog-only TVs that will need converter boxes after the switch to digital broadcasts in 2009.

According to FCC rules, stores must display or affix a “consumer alert” label to analog-only equipment. The FCC says it warned the companies about the violations and potential fines after conducting inspections of 2,200 stores and 36 web sites last June.

The FCC also handed down $2.7 million in fines to companies violating other digital-TV rules that involve shipping analog equipment and blocking such technologies as the V-chip. The companies have 30 days to appeal the fines.

I’ve seen so many ads for DTV stuff these days. They seem to be on non-stop, at least here in DC.

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