Consumer Rights Campaign, advice on my opening barrage requested.

Entimp

Hi all. First post, and glad I found this site... I could spend forever reading these posts here. A wealth of information.

Before I do.

A small request. I am trying to fix a consumer rights issue with the company Blackberry, one that affects UK customers.

I have started a Change.org campaign to resolve this issue and am about to post my first letter to the company in the UK and US. They have been contacted before and do not seem to acknowledge that there is an issue.

As I am new to this game... would any of you feel inclined to read my letter and let me know what you think?

Is it confusing, too strong, perhaps too weak? Should I add anything else and remove something you don't feel is right?

I would dead chuffed at any replies of advice.

Many thanks in advance.

Dear Blackberry / Research in Motion




This letter is addressed to yourselves on behalf of the change.org petition page: Stop Blackberry/RIM over charging UK customers in purchasing applications and customers of your company based in the United Kingdom. A link to the petition group can be found at the end of this correspondence.


In the interest of transparency for this campaign, this is a public and open letter addressed to yourselves. It will be available to view at the aforementioned Change.org page for this petition.


You will be aware of a particular situation that affects UK customers whilst using your 'Blackberry App World' store. The gateway that allows owners of Blackberry tablets and smart-phones to purchase applications for their devices. We use the expression 'You will be aware' as you have been contacted by a number of your customers regarding this problem and have made public statements acknowledging this problem. These statements were made many months ago and no change has been implemented.


The issue is two-fold, one quite serious in terms trading legality.


One:


There is no direct parity between UK and US currencies, £1.00 does not equate to $1.00 despite the pricing structure your store promotes. At the time of writing this, 30th of September 2012, the exchange rate is:
£1.00 (British Sterling) = $1.61 (US Dollars)


As an example, the following 'app' is available on your store: 'Galaxy on Fire 2 HD' published by 'Fishlabs Entertainment GMBH'. The product price is listed at £10.00 to British users of your devices. However, to users outside the UK it will listed at a purchase price of $9.99.


For the record, $9.99 is currently equal to £6.19 (not £10.00). You are charging UK customers at a rate of about 162 percent over that of US customers.


We would like to point out that your peers in this industry offer transparent systems of purchase reflecting international currency rates. To name some; Apple, Google, Amazon and thousands of small businesses that understand there is a great difference between £1.00 and $1.00.


There are a number API's (application programming interfaces) that offer real time currency conversion for online retail purposes. It is hard wonder why a large technology company at the cutting edge of software development is unable to produce its' own in-house conversion software or make use of a 3rd party alternative.


We, the signatories of this petition implore you to introduce greater level of transparency in the purchases of apps from the 'Blackberry App World' and ensure prices reflect differences in UK/US currencies.


Two:


We would like to draw your attention to a paragraph from the 'Consumer Protection from Unfair Trading Regulations 2008' a statuary instrument, and thus UK law. A link to this schedule can be found at the end of this correspondence.


We refer you to section 5.

1. Making an invitation to purchase products at a specified price without disclosing the existence of any reasonable grounds the trader may have for believing that he will not be able to offer for supply, or to procure another trader to supply, those products or equivalent products at that price for a period that is, and in quantities that are, reasonable having regard to the product, the scale of advertising of the product and the price offered (bait advertising).

In plain words, one may not advertise a product at a given price and fail to supply it at that said price. Note the final two words: Bait Advertising. Knowledgeable practice of this activity could very easily be considered to be fraudulent activity.


Referring to another example of 'app' software you sell to demonstrate this point; 'Monopoly for the BB Playbook'. The software is listed at a price of $6.99 to UK users. The users may click to purchase this app, proceed to sign in and checkout making the purchase.


The issue is this: the purchase price is changed to UK sterling and rounded up to £7.00 where the customer may not notice this change or understand the fiscal consequences of this change.


To make this clear, £7.00 is equal to $11.30 and thus an increase of $4.31 on the initial advertised price. A markup of 162 percent on the price that was initially advertised.


Your store may be described as confusing at best and fraudulent at worst. Would customers be entitled to a refund on previous purchases based on the advertising they encountered via your store?


We the signatories urge you to fix this issue very soon, it is confusing, disingenuous and potentially illegal.


In the interests of transparency to potential signatories to this campaign and yourselves, our intentions are to take this further in the event that these issues are not resolved in a timely manner and satisfactorily. This will not be limited to media/news organisations, technology blogs/sites, consumer rights organisations and legal channels.


We expect to hear from you within 10 workings days (Friday, 12th day of October 2012) acknowledging receipt of this correspondence and how you intend to address these issues.


Many of the signatories to this petition are loyal and ardent customers of the Blackberry brand and would like to stay so. They feel they are being treated unfairly and overcharged for the products you supply.


These issues are important to us, thus we ask that you respond with the greatest urgency in this matter and restore our faith in your services within the UK.


References:


Change.org petition to introduce change at Blackberry/RIM/Blackberry App World: LINKS REMOVED as per FORUM RULES


The Consumer Protection from Unfair Trading Regulations 2008:
LINKS REMOVED as per FORUM RULES




We look forward to hearing from you very soon.


xxxxxx xxxx and the Signatories of this petition.

SuperHan

I don't really understand.

Whenever I go to buy something from the Blackberry App World, the price is always listed in sterling, I do not see a dollar price. So where are they advertising these dollar prices to UK consumers? Granted, they are expensive prices, but nobody is forcing you to use Blackberry.

And your argument for Apple... Look at Apple hardware. the $49 iPod Shuffle retails at £40 in the UK. $49=£30ish. The $399 iPad retails in the UK at £329, not the £265 straight conversion price. The iTunes store sells US songs at 69c, 99c and $1.29. The UK sells at 59p, 79p and 99p. There's a mark up here too.

I mean, I give you that it's not really very fair, but I'm guessing that as most retailers are playing by this game that it isn't illegal. When you go abroad, you are advised to never accept transactions in GBP, as the retailer will apply an unfair conversion rate, and possibly commission. Maybe RIM are doing this to the point that it equates to £1=$1?

If it upsets you so much, I think the answer will be to switch to a company that you perceive to be fairer, such as Google or Apple.

Entimp

I assume you have a BB. Visit the uk based webstore for a purchase.

The point is, apps are advertised and listed in $ but when you check out they are the same numerical value in £.

So a price is listed as $10 but you pay $16.

This also isnt a hardware issue, but issue of prices of software.

somethingcorporate

But before you click buy does it ever show you £10?

If it does then I do not think you have a leg to stand on.

Also, there is absolutely no rights to pay the same price as another country and as post 2 identifies Apple (along with a whole bunch of other companies) offer country discriminate pricing.

Entimp

Not sure how simple I can make this.

You search for App 'X', you see it listed as $6.99

You click purchase and the price changes to £7.00 ($11.30)

Entimp

somethingcorporate wrote: »

Also, there is absolutely no rights to pay the same price as another country and as post 2 identifies Apple (along with a whole bunch of other companies) offer country discriminate pricing.

For the record, Apple have a straight conversion of $0.99 to £0.69 for app purchases. Reflecting currency rates.

BB charge 1 for 1 and then hike the price up 162% on checkout.

bod1467

I think the point being made is do you SEE the £7.00 price BEFORE you complete the transaction? (I don't have a BB so I have no idea). If you DO see it then you have the option of pulling out of the transaction.

I can sort of understand the point about bait advertising though - you are being lured by one price and charged another, even if you DO see it before final payment.

bris

You point is invalid, there is no law that states the company much charge the same price in the UK and the US. In case you haven't noticed the US and UK are two different countries with different tax rules, our VAT is 20% for a start. Why would you think that just because it's $10 in the US it must be the equivelant in pounds?

wealdroam

Does the US dollar price include Sales Tax?

This tends to vary from state to state, and so is often not included in displayed prices.

If sales tax were to be added to the dollar number, the figure would be neared the pound number, wouldn't it?

shaun_from_Africa

As an example, the following 'app' is available on your store: 'Galaxy on Fire 2 HD' published by 'Fishlabs Entertainment GMBH'. The product price is listed at £10.00 to British users of your devices. However, to users outside the UK it will listed at a purchase price of $9.99.


For the record, $9.99 is currently equal to £6.19 (not £10.00). You are charging UK customers at a rate of about 162 percent over that of US customers

In a free market, they can charge UK customers whatever they feel like. There is no law that states they must charge the direct £/$ conversion.

This is done by just about all companies that sell to many countries.

http://www.amazon.com/Leatherman-Black-Finish-Sheath-830246/dp/B0009JS2ZW/ref=sr_1_3?s=hi&ie=UTF8&qid=1349011743&sr=1-3&keywords=leatherman+wave
$75

or from Amazon UK
http://www.amazon.co.uk/Leatherman-Wave-Multi-Tool-Oxide-Finish/dp/B0009JS2ZW/ref=sr_1_2?ie=UTF8&qid=1349011734&sr=8-2
£79

Entimp

Ok, let me make it easier.

You walk into a high street store in the UK.

You see a product, any product in the UK.

The display price is in $ and is $10.00 in the UK.

It is displayed and listed in $ on the UK App store!

You pick it up, go to the checkout. And are charged £10.00.

Those prices are not the same.

The first price you saw was in $, it was advertised to you in $, they want you to consider buying it for $10.00 but will switch the price to £10.00 on checkout.

So why is it right to be charged £10.00 on checkout? over $16.00?