Consumer Protection In The News

Consumer advocacy group says 4 of 5 clerks are giving incorrect information

By Liz F. Kay

Sales clerks at national retail chains that carry electronics have been misleading broadcast television viewers about the upcoming transition to digital television, directing them toward unnecessary purchases, a report by the Maryland Public Interest Research Group reveals.

The state consumer advocacy group, along with nine of its counterparts across the country, conducted 132 "secret shopper" surveys in 10 states last fall, including stores of five national retailers in Baltimore and Baltimore County.

They discovered that sales clerks gave out incorrect or misleading information about the date of the transition, the equipment consumers would need and the federal government's coupon program to offset the cost of converter boxes.

"Those mixed signals will cost consumers," said Johanna Neumann, policy advocate for Maryland PIRG.

After Feb. 17, 2009, television signals will be broadcast digitally, rather than in an analog format. Many televisions sold recently already have a digital tuner, but viewers won't need a new set to continue following their favorite dramas.

Those who subscribe to cable or other television services won't need to convert their signal, and the analog sets will still work with equipment such as video game consoles and DVD players.

Consumers with older TVs could also buy a digital converter, which will range from $50 to $70. Starting next week, the federal government is giving away two $40 coupons per household to help people buy the converters.

Maryland PIRG estimates that 22 million people around the country rely on free, over-the-air broadcasting for news and information about emergencies, as well as for entertainment, Neumann said. A majority of those people are seniors or part of other vulnerable populations.

"A lot of them are turning to retail electronics stores for information," Neumann said.

But about four out of five sales staff at those retailers gave out incorrect guidance about the converter boxes and the coupon program, according to the report, which was released today.

Around Baltimore, nearly two-thirds of sales staff gave out incorrect information about converter boxes and three out of four clerks mislead consumers about the coupon program, according to the report. Half were wrong about when the conversion would take place, and half tried to "up-sell" consumers by directing them to unnecessary, more expensive products such as digital televisions, which can cost hundreds of dollars.

At the 13 percent of stores that are still selling analog televisions, all of them had incorrect or hard-to-read labels.

"You should put a warning ... about these televisions' ability to work" after next February, Neumann said.

The groups are calling for state attorneys general to enforce consumer protection laws when stores mislead consumers. They also want the federal government to do more to educate the public and to protect cable subscribers from unnecessary charges related to the transition.

This report provides data to support anecdotal evidence that people are confused about digital television and other available technology, said Steve Hannan, executive director of the Maryland Consumer Rights Coalition. "Consumers are confused about what the 'D' means," he said. "For the FCC, it's digital. For retailers, it's HDTV."

Digital television refers to the digital broadcast signal itself, whereas high definition television, or HD, is one digital television option that offers enhanced picture quality.

"Retailers need to educate their staff," Hannan said. "The 'D' is what is causing everyone problems. They are looking to sell televisions."

Also, manufacturers are just starting to make the digital converter boxes, so consumers are going to have to check stores to see if they are available. "They're not going to have enough in stores when Christmas comes around to give these as a gift," Hannan said.