BBB Warns of Company Taking Advantage of DTV Confusion

6/23/2008

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BBB is alerting consumers to beware of a misleading advertising campaign by an Ohio-based company called Universal TechTronics. Ads are running across the U.S. promising free television channels, services, and digital TV converter boxes, but are really a bait and switch tactic that prey on consumers’ lack of knowledge about digital TV conversion requirements.

A BBB investigation found the company peddling “five-year warranties” for $59 that must be purchased with their “free” digital TV converter boxes. With shipping and handling fees rolled in, the total cost per box is nearly $100. BBB believes that these are the same boxes consumers can buy in electronics retail stores across the country using $40 U.S. government coupons – making the total cost about $20 per box.

Universal TechTronics’ ads imply that their converter boxes are free and will provide free channel reception, similar to the type of services consumers receive through cable or satellite providers. Ads state, “No Bills: New ClearView TV receives free channels, no need to pay for cable to get the new digital picture quality and sound,” and “Public to Get Free TV Without Gov't Coupon!” Additionally, the ads use the term “Miracle ClearView TV” to disguise the product and further deceive consumers.

Universal TechTronics has several product lines and also does business under the name Heat Surge LLC. In the past nine months BBB has received nearly 200 complaints about the company’s business practices. The company has an unsatisfactory rating with the BBB. Complaints against the company concern slow delivery or non-receipt of product, difficulty reaching customer service representatives, delays in refunds after returning items, product quality issues, and advertising claims.

Nationwide, 70 million TVs rely on antennas to receive over-the-air signals, making about 34 percent of all U.S. households at risk of losing broadcast reception to at least one TV set (on February 17, 2009) as a result of the digital transition according to the Leichtman Research Group. Nearly half of the households that could lose television service after the transition aren’t prepared for the switch. Viewers who get reception with rabbit ears or an antenna, or who don't have a digital TV, will need a digital converter box to receive television programming. Television sets made after March 2007 already have digital tuners built into them, as required by federal law. Analog sets hooked up to cable or satellite systems will not be affected by the switch to digital TV and won't need a converter box.

For more information about digital TV conversion consumers can call the DTV hotline at, 888-DTV-2009, or visit: www.dtv2009.gov/FAQ.aspx.

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