Web Sales v. Brick & Mortar

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March 6, 2007

What is the merchant’s obligation when a special is advertised “internet only?”

This article posted today on CNN poses an interesting question: What are the legalities of offering special offers online but not for in-store purchases?

The story states that when consumers went to Best Buy in person expecting the same low price as the internet was denied the savings when the employee of Best Buy pulled up what appeared to be the same site and showed a higher price.

As it turns out, Best Buy has a “secret website”. The real purpose behind the website is unclear. It appears, however, that the customer has the burden of proof and the insider website used by employees serves to refute any internet specials.

And this is not the first time Best Buy has been in trouble. New Jersey and Ohio have both cited Best Buy for deceptive sales practices, failing to give rebates and refunds.

Still, what is the merchant’s obligation when a special is advertised “internet only” and a consumer requests the same price in person?

The Attorney General in Connecticut is still investigating the Best Buy incidents and has yet to make formal charges, A. G. Richard Blumenthal stated that “Best Buy officials have yet to formally talk with the attorney general’s investigators, instead opting to send “a written communication.”

“That communication was less than explicit'” Blumenthal said, “Their responses seem to raise as many questions as they answer. Their answers are less than crystal clear.”

This issue could give firm guidelines on the differences between Internet and in-store pricing.

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