Internet Rip-Offs Revealed by E-Commerce Hotline Callers - Industry Trend or Event

Edge: Work-Group Computing Report, Sept 20, 1999

Consumers dealing with Internet customer service nightmares have exposed several online scams and problems to analysts at the Computer Economics E-Commerce Hotline.

The most common problem among callers involves Internet orders that were never fulfilled or were incorrectly fulfilled. For the majority of these problems, consumers have been unable to contact customer service agents or find any kind of resolution.

"We have been talking to some very frustrated consumers, and you can be sure that they have not only voiced their displeasure to us, but also publicized their problems among their friends and family," said Computer Economics E-Commerce Hotline director Catherine Huneke. "The vendors who fail to address these problems are losing much more than the individual customer."

Callers to the E-Commerce Hotline have purchased a wide variety of products, ranging from books to computers and home furnishings. They have spent up to $3,000 on these purchases and very few have received a product or been refunded money even after attempting to communicate with the merchandisers. The majority have run into problems when dealing with an intermediary Web company who refuses to assist consumers in resolving a third-party manufacturer's mistakes.

"Our callers have been particularly annoyed when faced with out-of-state manufacturers who failed to fulfill orders," said Huneke. "Often times, these manufacturers only take orders from the Web intermediary and are not equipped to handle customer service issues. When the intermediary fails to help the consumer deal with the manufacturer, it causes difficult problems for the consumer and brings the Web model of an intermediary or infomediary into question."

Consumers who call the Computer Economics E-Shopping hotline receive information on taking a course of action to help solve these customer service difficulties. Depending on the nature of the problems, Computer Economics assists consumers in filing formal complaints against online companies with poor customer service. To access the Computer Economics E-Shopping Hotline, consumers can call 800/326-8100, ext. 116 or e-mail complaints to shopping@compecon.com.

Computer Economics is an independent research firm specializing in helping IT decision makers plan, manage, and control IT costs through advisory services, analyst support, an innovative Web site, and printed reports. Based in Carlsbad, Calif., Computer Economics serves 82 percent of the Fortune 500. FMI: http://www.computereconomics.com.