Vigilant consumers who aggressively pursue legal remedies when defrauded are a boon to society. They deter fraud, ensure corporate accountability, and make for an honest marketplace - even while benefitting themselves and everyone else. We discuss a recent example of an unfair business practice, and how the persistent consumer's dogged pursuit paid off for everyone.

The Sales Pitch: New Capability

In early 1999, an electronics company proudly announced the advent of hand-held devices ("PDAs") with new capabilities. You could transfer data to and from your personal computers to this PDA, so that you didn't have to re-enter the data ever so frequently in your PC, said the manufacturer.

Obviously, this was a very big attraction to most busy people, because PDAs were extremely convenient and portable. You could carry telephone numbers of clients and friends with you, and call people from wherever you were. You could make or change appointments on the go. And you could keep important notes, addresses, and reminders with you at all times. What a piece!

Making It Work: The Runaround

So thought everyone, including our vigilant consumer, C. He purchased the PDA which sold for about $25, took it home, and entered several names and numbers. When comfortable with the PDA's functioning, he turned to the Owner's Manual to find out how to transfer these to his PC.

Hidden deep in the Manual, he discovered that actually, he could transfer the data only to another identical PDA. Having already invested time and money in buying one, and entering data in it, he decided that he was better of by simply having another PDA for a backup. So he went to the store, bought one, and inquired of the salesman about the connecting cable. "That should not be a big problem. Just contact 1-800 ...," said the salesman referring him to the manufacturer.

C promptly called the manufacturer, who in turn referred him to three "authorized dealers" who could sell him the necessary cable and software for transfer not only to another PDA but also to a PC. Faith being restored, he called the first dealer on the list, who quoted a price of $42 for that. Flabbergasted at the price - more than the cost of the PDA itself -- he called the other two - who gave him the same price! Left with no choice, he placed the order and thought his worries over.

Not quite. When he received his shipment, he discovered that the cable was incompatible with the inlet slot on his PDA marked "computer." Promptly, he called the dealer to complain that they had sent him the wrong cable. The customer service representative asked for the model number of his PDA and the cable, and blandly stated that the cable was the correct one. C persisted, so he was referred to the next level - the Sales Manager. "Sir, I've sold thousands of those cables, and they fit the model of the PDA you have," advised the sales manager. How can you argue with that?

The Deception Uncovered

A frustrated C then called the manufacturer again. He first spent half an hour trying to get to the right department (ever wonder how much time we waste following electronic instructions that require us to divine how the business you're trying to call has organized itself?). Finally, C managed to reach a human being, who heard his grievance, put him on hold, and after what seemed like ages, transferred him to her boss.

"Oh, that model. The software for transfer to PC is still under development, and it should be available for purchase in another 2 months," he said paternalistically. "What?" Exclaimed an exasperated C. "Why don't you tell people this up front? Why did you give me such a runaround?" "I'm sorry, sir, but that's another department and I'm not responsible for that," said the boss (ever heard that one?).

Bringing to Book

Most people would have given up, certainly by now. But not C. He contacted us, and we brought a class action against the manufacturer for deceptive trade practices, fraud, and other wrongs. The manufacturer pooh-poohed this crybaby C whining over a small $25 PDA. So what if the cable and software was 6 months late? That's within "industry norms," it said. No one else had complained, and besides, if C didn't like it, he could just return the PDA. Never mind the time C wasted, the runaround, annoyance, aggravation, and inconvenience - all because of the manufacturer's deception.

Not quite, said the Court. When the manufacturer sold a product touting specific capabilities, the manufacturer also had an obligation to make sure that the necessary accessories were made reasonably available. In other words, the cable and software should have been available at least together with the PDA itself. And "industry norm" is no answer: a layman who buys a $25 item is not an "industry expert" to know that.

In short order, the manufacturer decided to settle the case rather than risk a trial and additional exposure. The settlement, approved by the Court, provided significant benefits to the consumers - and a cash incentive award to C for his efforts that resulted in a benefit to thousands of consumers.

Have You Been Defrauded?

This type of unfair practice - to put it mildly - is rampant in the marketplace. And if you thought the manufacturer here was some johny-come-lately, think again: It was one of the biggest names in consumer electronics in the world. Deceptive conduct, as we are reminded time and again, knows no boundaries.

Fraud victims owe it to themselves to do something about it. By pursuing legal remedies, they would contribute to integrity in the marketplace, helping consumers and themselves. Dishonest businessmen should be hounded out of the market.

So, if you have encountered deceptive or unfair conduct, but thought the amount too small to warrant pursuit, think again! You could be surprised. Call us for a Free Initial Consultation