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Buy.com gets nailed for $600,000!

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Buy.com gets nailed for $600,000!

Old 10-11-00, 06:53 PM
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Remember that Hitachi monitor mis-price at Buy.com from last year? Well apparently someone filed a class action lawsuit and as a result, Buy.com settled out of court for almost $600,000.

If you ordered one of the monitors and got rejected, check your mail for the official notice.

Its great that finally the consumers are getting some rights when it comes to theses pricing "mistakes."

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[This message has been edited by Odie (edited October 11, 2000).]
Old 10-11-00, 09:21 PM
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I've moved since the fiasco and the mail forwarding order has expired. Where did you hear about this? I need to find out who to contact to make a claim

-Zutton
Old 10-11-00, 09:35 PM
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I got an email eariler today from some lawyer types notifying me

Here's what it said about a change of address:

quote:<HR>If your mailing address has changed since February 8, 1999, you must send an e-mail to [email protected]. Your e-mail must contain your name, former mailing address and new mailing address.<HR>


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Old 10-11-00, 10:10 PM
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I ordered one, but I don't remember how much it cost. Does anyone know?

And Odie, could you paste the full text of the email/mail here?
Old 10-11-00, 10:21 PM
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cool..lets keeps these up..soon, when a price mistake goes down, they will think twice about not giving it to us..(who cares if it puts them under)
Old 10-11-00, 10:25 PM
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It's a long one so here goes:


SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF ORANGE

HANK BARBER, et.al. ] Case Number 806372
vs. ] Class Action
BUY.COM INC. ]
___________________________]

NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT

THIS NOTICE MAY AFFECT YOUR RIGHTS --- PLEASE READ IT CAREFULLY

If you are a consumer who, during the period February 5, 1999, through and including February 8, 1999, purchased or attempted to purchase a Hitachi Superscan 753 computer monitor from Buy.com Inc. for $164.50 and who have been unable to do so because Buy.com, Inc. refused to provide the product in question at that price, you may be a member of the Settlement Class described herein.

THIS NOTICE IS NOT AN EXPRESSION BY THE COURT OF AN OPINION CONCERNING THE MERITS OF ANY CLAIM OR DEFENSE OR THE TRUTH OF ANY OF THE ALLEGATIONS OF THE PARTIES

Introduction
1. On or about March 4, 1999, the plaintiffs in this matter filed a proposed class action lawsuit against defendant Buy.com. The lawsuit alleged that the defendant had offered items for sale on its Website at a substantially reduced price, and then had refused to consummate sales at the price indicated. In particular, it was alleged that a Hitachi Superscan 753 computer monitor was for sale at $164.50 for a three day period and that the defendant refused to sell that item for that price. In the alternative, the plaintiffs alleged that if the posting of the $164.50 price was an error, the error amounted to negligence in that the defendant did not have sufficient safeguards in place to discover an inaccuracy in pricing.
2. Buy.com denied and continues to deny all of the allegations in the complaint. Specifically, Buy.com contends that the listing of the Hitachi Superscan monitor at a price of $164.50 was a data entry error, and that the intended price was $564.50. Buy.com further contends that the error was not the result of negligence in that it had sufficient safeguards in place, and this inaccuracy was the result of a clerical error in incorrectly reviewing a printed price report.

Class Certification
3. On September 22, 2000, the court granted preliminary approval of an opt-out class comprised of consumers as described above pursuant to California Civil Code section 382 and the California Consumers Legal Remedies Act. An opt-out settlement means that individuals who do not wish to participate in the settlement process and share in the settlement proceeds may remove themselves from the action and proceed on their own to seek legal redress if they so desire. Any person who elects to opt-out of this settlement will not share in the settlement proceeds.
a. The distribution of settlement proceeds to individual claimants will begin once the settlement is approved and final. If you wish to object to this settlement, you must follow the procedures described in paragraphs 11 and 12 below, by the objection postmark deadline.

Terms of the Settlement
4. Class counsel and counsel for Buy.com have reached a proposed settlement which has obtained preliminary approval of the Court. The proposed settlement provides for payment of the sum of five hundred seventy five thousand dollars ($575,000) to a settlement fund. In addition, Buy.com has agreed to maintain improved operating procedures to (1) reduce the risk of inadvertent pricing errors; (2) improve its customer service department; and (3) reduce the possibility that any customer might misconstrue an acknowledgment of order from Buy.com to be an acceptance of contract. These modifications include, but are not limited to, additional verification of pricing changes, better accessibility of management to sales and order reports, new billing procedures, and changes in the Company's form acknowledgment of receipt of order and form Terms and Conditions. Defendant shall maintain these policies in effect while offering merchandise and/or services for sale on the Internet to the general public. Defendant may change such policies in response to changing market conditions or for any other reason without notice or leave of Court provided that any policy change, deletion, or addition results in better procedures for achieving the three goals set forth in this paragraph than existed as of February 5, 1999.
5. In exchange for the monetary payment to the settlement fund and the agreement to modify its operating procedures, all members of the class who do not opt-out of the settlement shall release and shall conclusively be deemed to have given full general releases of Buy.com and its employees, representatives, administrators, attorneys, and insurers contributing to the settlement (in their capacity as insurers for Buy.com), lenders, shareholders, officers, directors, divisions, affiliates, partnerships, partners, parent and/or subsidiary corporations, assigns, heirs and successors in interest and each of them, from any and all claims, demands and causes of action arising out of, connected with or incidental to the subject matter set forth in the class action lawsuit or any other complaint wherever and whenever filed. This release includes a waiver of the provisions, rights, and benefits of California Civil Code section 1542 and any similar, comparable, or equivalent law of any state or territory of the United States or principle of common law. In that regard, all members of the class who do not opt-out of the settlement waive California Civil Code section 1542, which states:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR
AT THE TIME OF EXECUTING THIS RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR
Members of the class should understand that the facts for which this release are given may hereafter turn out to be other than or different from the facts now believed to be true, but that nonetheless, each member of the class who does not opt-out of the settlement accepts and assumes such risk and agrees that this release shall be and remain in all respects effective and not subject to termination or rescission by virtue of any such difference in facts.
This settlement is the result of extensive negotiations between counsel after Class Counsel engaged in substantial investigation, document review and discovery. Settlement discussions were supervised by the Hon. Barnett Cooperman (Ret.).
6. The amount each class member will receive is not known at this time. It will depend upon several items, including the number of class members who opt-out of the settlement. The settlement fund, less Court-approved attorneys' fees, costs, expenses and reimbursements, shall be equally divided among class members. Each class member shall receive one share of the fund, regardless of the number of monitors a class member attempted to purchase.

If you do not opt-out of the settlement, your share of the settlement proceeds will be mailed to the billing address you gave for the credit card you used in attempting to purchase a Hitachi monitor from Buy.com.
NO CLAIM FORM OR OTHER ACTION ON YOUR PART IS NECESSARY.

If your mailing address has changed since February 8, 1999, you must send an e-mail to [email protected]. Your e-mail must contain your name, former mailing address and new mailing address.


Class Counsel a nd Class Representatives
7. The court has appointed the following Class Counsel: Louis M. Marlin of Marlin & Saltzman, 203 N. Golden Circle Drive, Suite 310, Santa Ana, CA; and Gary Sodikoff, Attorney at Law, 219 E. Washington Avenue, Santa Ana, CA 92701. The Court certified the following Class Representatives to represent the settlement class; Hank Barber, Quoc Thai, Daniel Billeci, Dale Magner, Ping Kwong and Maryam Al-Dhalimy.
8. Class counsel believe that class members are best served by participating in the proposed settlement. Plaintiffs' Counsels' investigation and analysis has lead them to the conclusion that the settlement is in the best interest of the class.
9. All petitions for attorneys' fees and expenses are subject to Court approval. In this case, Class Counsel will apply to the court for reimbursement of their actual out of pocket costs, and an award of attorneys' fees in the sum of $190,000.
10. All class members have the right to comment in support of, or in opposition to, the above-referenced application for attorneys' fees and costs. In order to do so, you must follow the procedure described below.

The Settlement Approval Process
11. A final settlement approval hearing will be held on December 1, 2000 at the hour of 1:30 p.m., in Department C-67 of the Orange County Superior Court located at 909 N. Main Street, Santa Ana, California 92702, before the Hon. Robert Thomas. At that time, the court will consider evidence and argument regarding the fairness, adequacy and reasonableness of the settlement so the court can determine whether to grant it final approval; and the amount of any award of attorneys' fees and costs to plaintiffs' counsel. Class members are entitled, but not required to attend. Any member of the class who is satisfied with the proposed settlement need not appear at the hearing to recover settlement proceeds.
12. At the final settlement approval hearing, any member of the Class may appear in person or through counsel and be heard to the extent allowed by the court in support of, or in opposition to, the fairness, reasonableness and adequacy of the proposed settlement. However, no party will be heard in opposition to the proposed settlement and no briefs or papers submitted by any such party will be considered unless, at least 10 days prior to the date of the final settlement approval hearing, such person(s): (a) files with the Clerk of the Orange county Superior Court, 700 Civic Center Drive West, Santa Ana, California, a statement that indicates a basis for such opposition and (b) serves copies thereof (and any other papers or briefs it files) with the court, and in person or by mail upon each of the following:

Attorneys for the Class Attorneys for Buy.com
Louis M. Marlin, Esq. Michael T. Hornak, Esq.
Marlin & Saltzman Rutan & Tucker
203 N. Golden Circle, Suite 310 611 Anton Blvd., Suite 1400
Santa Ana, CA 92705 Costa Mesa, CA 92626

The Opt-Out Procedure
13. You may elect not to participate in this settlement. If you so elect, you will not receive any portion of the settlement proceeds and you will not be bound in any way by the settlement. If you elect to opt-out of the settlement, you are free to pursue any claim you believe you have against the defendant on your own. Class Counsel will have no obligation to assist you in that regard. If you wish to opt-out of the settlement, you must send an e-mail to [email protected] on or before November 21, 2000. The e-mail must contain your name and must state, "I HEREBY STATE THAT IT IS MY WISH TO OPT-OUT OF THE BUY.COM SETTLEMENT."

Additional Matters
14. As a member of the Class, you may communicate with, seek the advice of, or enter an appearance through counsel of your own choice. Any member of the class who does not enter an appearance either individually or through counsel of his/her own choice will be represented by Class Counsel, who are proponents of the settlement, and will have no individual liability for attorneys' fees and costs, both of which are payable from the Settlement fund.
15. If the settlement does not receive final approval by the court, the case will continue to be prepared for trial.
16. This Notice summarizes the basic terms of the settlement. For more detailed information you may review and copy the pleadings, records and other papers on file at the Superior Court Clerks office at 700 Civic Center Drive, West, Santa Ana, California during regular business hours. You may also seek additional information from Class Counsel.

PLEASE DO NOT ADDRESS QUESTIONS OR REQUESTS FOR INFORMATION TO THE COURT

Dated: September 22, 2000 __/s/ Robert Thomas____
Robert Thomas
Judge of the Superior Court


Old 10-11-00, 11:01 PM
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Guess we won't be seeing any 10 off 30 coupons this century.
Old 10-11-00, 11:19 PM
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quote:<HR>Originally posted by iggystar:
Guess we won't be seeing any 10 off 30 coupons this century.<HR>


I agree....also say bye bye to the low preorder prices......they will have to make up for this somehow!!!



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Old 10-11-00, 11:35 PM
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Just a quick thank you to those posting contact info and the email message.

-Zutton

Old 10-11-00, 11:42 PM
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I ordered one and was disappointed that I didn't get one. I never thought someone would sue and that it'd get this far. $600,000 doesn't seem like a lot especially after court fees and everything. How much do you suppose will be awarded to each individual?
Old 10-12-00, 12:58 AM
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I don't shop at Buy.com much anyway, so I don't really care. Although the coupons were mighty nice...

quote:<HR>I ordered one and was disappointed that I didn't get one. I never thought someone would sue and that it'd get this far. $600,000 doesn't seem like a lot especially after court fees and everything. How much do you suppose will be awarded to each individual?<HR>
I don't know. $5.75?
Old 10-12-00, 01:12 AM
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$5.75? eh, well, i didn't lift a finger for it. sure why not? i guess i can afford that subway combo for lunch now.

couldn't interest anyone in opting-out of the settlement could i?

[This message has been edited by quietsoul (edited October 11, 2000).]
Old 10-12-00, 01:32 AM
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I just got my NOTICE OF PENDENCY E-mail today as well. By estimate it looks like class menbers will get $100-200 as of right now. This could change if; it is NOT settled on Dec 1st,or if the lawyers file over $200,000 worth of "out of pocket" expences.
Cool.
Old 10-12-00, 01:46 AM
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Yes, the *only* possible visible result of this lawsuit is that buy.com will be more careful about mispricings and probably tighten up on coupons.

CLASS ACTION LAWSUITS HELP *LAWYERS* NOT CONSUMERS.

"...an award of attorneys' fees in the sum of $190,000"

Not bad for a days work. Let it go people... not getting in on a misprice is hardly the worst thing that can happen to you. Sheesh.
Old 10-12-00, 10:09 AM
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OK, explain something to me....
Why is it evry time one of these piece of crap etailers (read amazon, buy, etc) is forced to own up to thier mistake do peope come out on this board and piss and moan aobut how this is going to hurt them.
Guess what, they screwed themselves...They felt that because they are an e tailer, they could get away with this kinda crap. They have now learned that that is not true. Yes, in the short term, it may hurt your chance to get a cheap DVD or two, but overall, this is a good thing!!!!!

Personaly, I dance with glee every time buy.com stock goes down. I will most likely have a going out of business party when they finaly die. They are absolutly one of the worst companies out there. If you love buy.com that is great, go and email them a nice warm fuzzy letter about how you dont hate them, and you love them, and they are the best thing since sliced bread. While your at it, write a letter to an inmate at the local prison, its the same callaber of people who work at buy, you should get along very well with them.
Old 10-12-00, 01:44 PM
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quote:<HR>Originally posted by Aaron Campagnone:
OK, explain something to me....
Why is it evry time one of these piece of crap etailers (read amazon, buy, etc) is forced to own up to thier mistake do peope come out on this board and piss and moan aobut how this is going to hurt them.
Guess what, they screwed themselves...They felt that because they are an e tailer, they could get away with this kinda crap. They have now learned that that is not true. Yes, in the short term, it may hurt your chance to get a cheap DVD or two, but overall, this is a good thing!!!!!

Personaly, I dance with glee every time buy.com stock goes down. I will most likely have a going out of business party when they finaly die. They are absolutly one of the worst companies out there. If you love buy.com that is great, go and email them a nice warm fuzzy letter about how you dont hate them, and you love them, and they are the best thing since sliced bread. While your at it, write a letter to an inmate at the local prison, its the same callaber of people who work at buy, you should get along very well with them.
<HR>


- Here's someone who makes me feel glad to be a part of the human race. I guess that you probably grow your own food, make your own clothing, and provide entertainment for yourself since all retailers make mistakes and you would prefer not to patronize their place of business. I'm sure that everyone here has had a bad experience or two with an on-line retailer at one point or another. These retailers have the same problem that all retailers have, a good work-force. So when something like a mis-priced item occurs or you get bad service, wouldn't it be better to let it go and chalk it up to one of those things that happen instead of thinking that it was done intentionaly and carry a grudge?
Old 10-12-00, 02:12 PM
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Well, once again we have been proven the biggest nation of whiners ever. I am sure I will get flamed on this post, but I don't really care. I make no secret that I am a huge buy.com supporter, but this post has nothing to do with that, this has to do with people in general when it comes to these situations. The e-tailing world is different than the B&M world and people have to have the mental capacities to understand that. Key difference, you can't print a retraction. People know this, and exploit it as much as possible.
People on bargain boards have the word out within minutes of a new posting of a great "deal", that you should "catch while it lasts". Why are all these postings written like this? Because they know it is a mistake, and that as soon as it is caught, it will be fixed. It is a mistake. Last time I checked we all make them. To say you want a company to go out of business for a mistake is childish and preposterous.
In the case of the Monitor thing, people were pissed b/c some got it, and some didn't. buy.com did the honorable thing, and shipped all the product in stock at the huge loss. I think that was more than fair. All this lawsuit shows me is that America has become more and more the land of the irresponsible. All I ever hear is how "I deserve this", "they are trying to screw me", "**** these big companies", "we'll show them", etc. It is all a bunch of crap from a bunch of whiners.
You tried to screw a company on a deal you knew was a mistake. And lest you protest, almost everyone knew it was a mistake, b/c that is how it was posted on the bargain boards. Since you didn't get the deal, your reaction should have been to walk away thinking it would have been nice to get the monitor for that price. Instead, "I'm entitled to the monitor, I am going to sue" is the outcome. In my opinion, ridiculous, and a waste of my money as a tax payer to have a judge listen to this crap. I hope everyone enjoys whatever money they get. If this great thing we call
e-tailing fades away in the future, I guess we will all know who to blame.
Old 10-12-00, 02:17 PM
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Quick side note to Aaron:

What's the deal? Pretty harsh words about buy.com. What did they do to you? Did they deliver one of your DVDs after street date?
Old 10-12-00, 02:18 PM
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That is exactly what I do, but when a retailer (or e-tailer) continualy screws me over (I have had 3 bad experiences with BUY, and not one of them was a "super special coupon thing") I do get angry and stop using them. Also, if I hear bad things about a place, I am less likely to give them the benifit of the doubt. I dont go around hating all retailers....Waldenboks comes to mind as one I absolutly love, as well as CompUSA. Both have been extreamly helpful when I have had problems with products purchased there, and even helped out when it was an item i did not buy there, but they sell.

Unfortunalty I do not grow my own food etc. I still use many retailers, just not the ones that suck. Why is it so hard for people to understand that just because someone is an e-tailer, they are not exempt from following the same rules of buisness as any other retailer in the US!!!

I am also glad to see I make you proud of being a member of the human race. Its nice to see I have that much effect on one person. Makes my day a little better
Old 10-12-00, 04:18 PM
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I think that most will agree e-tailers have provided us with the means of getting goods cheaper or even for free. If it wasn't for them I wouldn't have half of the DVDs I own. There is no need to be greedy and whine about not getting a mistake. If it wasn't a mistake and a means to deceive then that's a different story.
Old 10-12-00, 04:57 PM
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I don't object to people letting us know when there has been a problem (although, I wish people would post more when they have a good experience). It's the combined knowledge that we gain by reading the posts that let's us make informed decisions.

What I find particularly distasteful is when an individual says that they can't wait to "dance on that companies grave" or "dance with glee when their stock goes down." That goes way beyond informing to downright nasty and immature.

Unfortunately, all of us will, once or twice in our lifetime, work for a company that is less than efficient and may very well lose income or our entire job because of these mistakes. When you wish for misfortune to a company as a whole, you may be condemning many, many innocent people to hard-times. Take the information here and make your own, personal judgement on whether you want to do business with any one company. Stay away from the rediculus "I hope you get cancer and die" statements. It only lessens your credibility and make you look the fool.
Old 10-12-00, 05:07 PM
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Keep those lawsuits going! We really appreciate all those people who are too lazy to actually work for a living and want to try to suck the blood from hard working people.



Old 10-12-00, 10:20 PM
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I think Buy.com should have been left alone on the monitor deal , they screwed up ....
I also think Amazon should get the ass ripping Buy.com got , not because they made mistakes but because they got caught screwing with prices and then decided to not sell the items when the price went the wrong way in thier " Test " . Flame away , Amazon deserves the $575,000 settlement 1 million times more than Buy.com ever did .
Old 10-13-00, 07:41 AM
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quote:<HR>Originally posted by Tankusuker:
Keep those lawsuits going! We really appreciate all those people who are too lazy to actually work for a living and want to try to suck the blood from hard working people.



<HR>


I agree Tankusuker....these misprices on itmes are so obvious that one has to know it is a misprice or found out about the misprice through a message board and took advantage of the situation!!! If you choose to take advantage of a situation like this, do not expect the store to honor your order!! Should I file a lawsuit everytime Best Buy has a $3,000 TV listed on a sign in the store for $2,000 due to an employee's honest mistake??? NO!!! The only people making any money off of these lawsuits are the attorneys. If I pick up a copy of ID4 at Best Buy with a price tag of $7.99 on the cover....I know damn well this disc sells for at least $19.99!!! I also know that someone in the store made a mistake...it was not intentional!!! When buying anything in life....be prepared to pay what that item is worth...misprice or no misprice!!! If you find out the true price at the register...do not whine about it....pay for it or leave it at the register for them to restock!!

I will also give a to this topic at hand!!!

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Old 10-15-00, 10:53 AM
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I've been using buy.com for years - I love them - have order problems about 1 out of 3... but they always take care of it. Their customer support is great - for me - I've called their customer support 20 or 30 times and they take care of things to my satisfaction 100% of the time. I didn't really like Reel.com that much and would order from buy.com, but with their demise I notice that the other sites don't feel like they have to compete as much. Buy.com's profit margin is very narrow - as big as they are, I'm surprised they are so accomidating. For the people who hate buy.com - what fantasy world do you live in that has an ecommerce site that gives lowest prices and best customer service? There are no perfect etailers - I'll take a few shipping blunders in trade for super low prices. This 600K settlement can't be good for consumers looking for low prices.

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