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December 18, 2008

Beware of Digital Transition Scams

As with any new product or service that comes out, there are scam artists waiting to take advantage of people concerned about the digital transition coming this February. We've been talking about what to expect and giving advice and information on this issue, including the TV converter box coupon program, for awhile now, so I hope that we've helped ease you through the transition. However, if you are getting your information from other sources, make sure to remain skeptical.

For example, the Better Business Bureau has been alerting consumers to beware of a misleading advertising campaign by an Ohio-based company called Universal TechTronics. Apparently, the company has been running ads across the U.S. promising free television channels, services and digital TV converter boxes, but are really a bait and switch tactic that prey on consumers’ lack of knowledge about digital TV conversion requirements.

The BBB investigation found that Universal TechTronics was offering "five-year warranties" for $59 that must be purchased with their "free" digital TV converter boxes. With shipping and handling fees rolled in, the total cost per box is nearly $100. However, these are most likely the same boxes consumers can buy in electronics retail stores across the country using the aforementioned $40 U.S. government coupons that make the total cost to consumers about $20 per box.

"The bottom line is that these ads confuse and mislead consumers," said Steve Cox, BBB spokesperson. "Unfortunately consumers who do respond may find that not only will they not receive free products and services as implied by the ads, but they will end up paying more than they would have by taking advantage of the really good deal being offered through the DTV coupon program."

The AARP is also warning it's members about DTV transition scams, advising them to watch out for phony rebates and grant money, bait and switch scams, and expensive help you really don't need.

If you aren't ready for the transition, check out the blog posts I linked above or go directly to the source for the most up-to-date information at DTV.gov!

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