The Arizona PIRG Education Fund survey of TV
retail stores finds consumers are getting Mixed Signals
Read the Report.
In one year, 22 million
Americans who rely on free over-the-air analog broadcasting – including many
elderly and other vulnerable populations will be at risk of losing access to TV
which for many is a primary source of news and emergency information as well as
entertainment.
On February 17, 2009 all TV
stations will begin broadcasting exclusively in digital signals. If you have an
older analog TV and you receive over the air television your TV will go dark
unless you retrofit it with a digital converter box. Consumers with cable or satellite service
will not be affected.
Many consumers are just now
hearing about the government-ordered digital transition and they are going to
electronics retail stores to ask questions about what is necessary to maintain
their TV reception.
The Arizona PIRG Education
Fund and State PIRGs across the nation conducted “secret shopper” surveys at
132 electronics’ stores in ten states – including Arizona
- to determine if America’s
big electronic retailers are properly preparing their customers for the digital
transition. The results were released
today in their new report: “Mixed
Signals: how retailers mislead consumers on the digital Television (DTV)
transition.”
“The results of our survey
are clear,” said Nick Theisen, spokesperson for the Arizona PIRG Education
Fund, “retail sales clerks are providing inaccurate or misleading information
about the upcoming digital transition and these mixed signals will cost
consumers time and money.”
The transition to a digital
system was first mandated by Congress in 1996.
Broadcasters, manufacturers and retailers were informed. Twelve years later and just one year out from
the date of transition, the Arizona PIRG Education Fund report documents that accurate
information about the transition is hard to come by in most retail stores.
It is important to know that
next year’s change does not require any household to purchase a new television
set. Households with older sets still
receiving analog signals via antenna need only purchase a basic converter box
that costs approximately $40. And, the
government is offering up to two $40 coupons per home to offset the cost of the
most basic converters.
However, some sales clerks
tried to persuade the Arizona PIRG Education Fund “secret shoppers” to buy new,
expensive digital televisions or premium converters, which will not be covered
in the government’s coupon program.
“To consumers, it does not
matter whether sales clerks were intentionally misleading our secret shoppers
to sell more expensive items or they were simply misinformed” continued Theisen.
“The result is the same: consumers will pay too much for unneeded equipment or
services.”
Nationally, almost half of
sales staff surveyed did not provide accurate information on the date the
transition would take place – answers ranged from “sometime soon” to “probably
not until 2010.”
Here in Arizona we found the following:
- 90% of sales staff provided
inaccurate information about converter boxes.
- 80% of sales staff provided
inaccurate information about the coupon program.
- 70% of sales staff provided
inaccurate information about the transition date.
- 60% of the stores surveyed
still had analog TVs on their shelves.
The Arizona PIRG Education
Fund called on retailers to properly educate their employees and their
customers about the digital TV transition.
“To protect consumers against
misinformation or fraud, retailers must insure proper information about the
converter boxes they sell and about the government sponsored coupon program
designed to off-set the cost of the converter boxes is readily available,” said
Theisen. “Retailers must also properly
label analog TV sets that are still on their shelves with warnings informing
buyers about the need for a converter box after next February.”
Theisen also recommended that
the government step in to enforce penalties against retailers that mislead or
misinform consumers to reap greater profits from the sale of unnecessary
equipment.
Additional tips for consumers
are included in the Arizona PIRG Education Fund report which is downloadable at
www.arizonapirg.org. Consumers can also go online at dtv.gov or call the toll-free
government number 1-888-388-2009 to find out more about the government
sponsored coupon program.
