beware: costco membership scam
22 years ago
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anyone used direct buy?
Comments (43)From the Connecticut Post, May 18,2011: A Connecticut federal judge has rejected as "meager" the proposed settlement of a nationwide, class-action lawsuit against DirectBuy Inc. for fraudulent pricing practices. "The court cannot conclude that this settlement falls within the range of reasonableness," U.S. District Judge Janet C. Hall said yesterday in a written opinion. Judge Hall explained her decision by noting that the proposed settlement called for DirectBuy to provide free memberships worth some $3,000 each to approximately 800,000 class members. "The best possible recovery...may amount to well over $2 billion," Judge Hall wrote. "In light of this best possible recovery, the Settlement Agreement -- which the court has calculated as being worth, at most, between $15 million and $27 million -- appears quite small." In late April, the attorneys general of 27 states, as well as those from the District of Columbia and Puerto Rico, objected to the proposed settlement, arguing in a 36-page amicus curiae brief that it "offers no real benefits to consumers. "The proposed settlement is, in essence, a sales vehicle for defendants designed to drive current and former customers into membership renewal contracts and to the same manufacturers and suppliers from whom defendants have acknowledged receiving kickbacks and incentives," the brief stated. DirectBuy promotes itself as an insider's buyers' club where members can purchase brand-name goods directly from manufacturers at wholesale prices. In addition to annual fees, members pay anywhere from $3,000 to $7,000 to join the privately held company's "clubs." The 2009 lawsuit (Wilson et al v. DirectBuy, Inc., et al) accused the Indiana-based company of fraudulent misrepresentation, alleging it received tens of millions of dollars in kickbacks and incentives from suppliers and manufacturers, inflating the cost of its goods well above the advertised wholesale prices. The lawsuit accused DirectBuy of failing to disclose this arrangement to customers until early 2009. DirectBuy spokesman Mike Georgeff told Consumer Ally in April the company was confident Judge Hall would approve the settlement. While yesterday's decision was disappointing, he said it wasn't completely unexpected. "We were disappointed to learn of Judge Hall's decision, but not entirely surprised given the great deal of publicity that has surrounded this case," Georgeff told Consumer Ally. "We were hopeful for a quick resolution to this matter which would have ultimately benefited class members. While we disagree with the decision, we look forward to successful closure of the matters at hand, and will continue to work with the attorneys general of any state to ensure we remain compliant with all state consumer protection laws," he added. The consumer advocacy group Public Citizen, which represented a class member who objected to the terms of the proposed settlement, applauded Judge Hall's decision. Had the proposed settlement stood, the group said a statement, more than 836,000 class members would have been forced to relinquished "a broad set of claims" against the company in exchange for extended DirectBuy memberships. "We are pleased that the judge agreed with our argument that the proposed settlement was essentially a coupon of little or no value to the class," Michael Kirkpatrick, the Public Citizen attorney representing one of the objecting class members, said in a statement. "Absent class members should not have valuable claims released in exchange for so little." Public Citizen also cited other class-action suits against the company, which alleged a number of abuses, including high-pressure sales tactics to pressure consumers into spending thousands of dollars on DirectBuy memberships, as well as prices that often result in little or no savings compared to traditional or online retailers. "Within the last several years, a number of lawsuits have been filed in addition to this one, accusing DirectBuy of misrepresentation, fraud, and coercion, " Judge Hall noted in her decision. Consumer Ally wrote about several of the lawsuits in an October 2010 feature on the company....See MoreCostco Lennox Unit a Good Deal?
Comments (59)joepiccaso53, I think the primary reason is cost, I haven't seen any literature to suggest that aluminum is any more efficient than that of a copper coil: like specifying exactly the difference in efficiency from Coil A that is copper versus Coil B that is aluminum and that is the only difference from one coil to another. I do have literature that says just configuration of the equipment can have a mild impact on efficiency. But only mild meaning like 1% more or less efficient than some other configuration. So not enough to make it ecconomically viable to only do it one specific way. Like vertical only installs vs horizontal only. I have had plans to revisit and remake that video to show further what I believe to be the problem as I have cut the ends of the coils to reveal the tubes that have an uneven surface roughed up if you will with what looks like to be the edge of a file on the inside of the tubes that run thru the evaporator coil. So with all these peaks and valleys inside the tube of the coil the part that seals the tube in a multitude of places is very thin amount of metal. From that perspective it's not hard to imagine where the leaks are forming when the coil indicates leaks inside the fin pack area of the coil and not at the ends of the coil where they are typically chemically sealed in the case of all aluminum coils. This (the roughed up inner tube area) is essentially I believe to create more surface area, causes the refrigerant to tumble thru the coil absorbing more heat from return air blowing across said Evap coil. They were doing this sort of thing with copper coils prior to switching to aluminum. What difference does it make if failure is a given anyway? I mean you can argue copper failed incredibly easy and copper costs more etc. If the coil has a leak it's not going to operate efficiently anyway. Also they used aluminum back in the 80's for evaporator coils I just don't have any video to show that. Often the failure with those was the connection point from aluminum to copper was merely a compression type connection which would fail and no good way to fix it (meaning it wouldn't leak refrigerant) -- refrigerant was much cheaper then like incredibly cheap. The technology to meld the two metals together copper line set to all aluminum coil is leaps and bounds better than the 1980's variety, but the aluminum coils just fail elsewhere. If I had discovered some coil or some method to avoid failure wouldn't that be something to hang your hat on? If you look to that video I posted: I literally show you that aluminum coil failed all along the bottom of that coil. It's an upflow coil. Meaning the condensate waste water it creates is all along the bottom of that coil. Why are these clues important? I believe they show why there is failure and why there will always be failure. That condensate water the coil creates is what is doing it at least in this particular example. Refrigerant leaks can happen due to other reasons besides as I also demonstrated in the video....See MoreWarehouse Clubs
Comments (52)There are just two of us, and I don't even buy meat there, but I'm still very happy with my Costco membership. It's not just the price, although on some things the savings is amazing, but the quality of their products that makes membership worthwhile. We go through a pound of organic mesclun almost every week -- unbeatable at a price that has been between $4 and $5 over the past 18 months. We're lowcarbers, so we also go through a quart of heavy cream each week -- at several dollars less than supermarket prices (most recently less than $3 a quart). The savings from each of these by itself is more than the cost of the annual membership. Somewhat less frequently, we buy butter, eggs, standard and fancy cheeses -- it's the only place we've found Rosey goat cheese (rosemary coated aged goat cheese) -- and their big chunks of cheese actually keep longer than the same ones in smaller packages from Trader Joe's, so it's worthwhile for those cheeses we really love. We live in an area where we can't count on getting good avocados, so I appreciate their bargain price for Wholly Guacamole which I use as a base for my own recipe. And the wild Alaskan salmon burgers they carry are delicious and take less then ten minutes to prepare. Also nuts, pet food, paper goods, fresh flowers, gardening supplies, and the occasional electronic item or appliance. Then there's the savings from contact lenses and glasses, another cover-the-cost-of-the-membership if you need these things (and I think you do have to be a member). You don't to be a member to use their pharmacy, and their prices are great -- hopefully my insurance company appreciates it, but for me it's the convenience of a quick stop while I'm doing other shopping. And their gas is almost always cheaper than even the cheapest gas station around here, and we don't have to go out of our way. I rarely buy other frozen or nonperishable foods because of the quantities, or fresh fish -- it may only be this unit but their fillets have come complete with scales. The only Kirkland brand item that has disappointed us was their coffee, but that may well have been because of how long it took to use it rather than the quality when first opened. Of course, not everything is an incredible bargain. But for those who can't or don't want to take the trouble to cherry pick other stores' loss leaders, or to recognize when the size offered doesn't match their storage or usage needs, they're probably safer at Costco than other places, if only because of their great return policy....See MoreWhat do you think of RH grey card?
Comments (29)I have bought a lot of pieces from RH for many years. I still really like all of them for their classic style. BUT, I am not drawn into their new enormous stores. Although beautiful like a museum, not inspiring for my home furnishing. And I am so underwhelmed by their source books. Page after page of feeling like you are looking at the same room. RH modern is just to expensive and scale of pieces is too large. Styles have changed to more color and pattern. I would like to incorporate that with my RH classic pieces. Not going to find much color or pattern at RH. So, I haven't spent the 100.00 for a membership. I think good point, it's not a Costco membership where you consistently shop there. There was a 400.00 side chair at RH I wanted to purchase and didn't because one, had to buy 100.00 membership to get price and two, there was 199.00 to ship it. Silliness!! At some point, I will likely buy a membership. There is a large piece I want. I really hope they get things in order in their house and stay in business!! The company is in trouble and is certainly looking at what to do now....See More- 22 years agolast modified: 11 years ago
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