Mixed Signals: How Retailers Mislead Consumers on the Digital Television (DTV) Transition.
2/13/2008
Executive Summary
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. Consumers with
older analog TVs receiving over-the-air television will see their televisions
go dark, unless they 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.
Florida PIRG and other PIRG's around the country conducted “secret shopper” surveys at 132 electronics stores
in ten states to determine if America’s
big electronics retailers are properly preparing their customers for the
digital transition. The results were
released today in Florida PIRG’s new report: “Mixed
Signals: How Retailers Mislead Consumers on the Digital Television (DTV) Transition.” "Retail sales clerks are often uninformed and are providing inaccurate information about the upcoming digital
transition. These mixed signals will cost consumers time and money,
according to Florida PIRG Consumer Advocate Brad Ashwell.
“To consumers, it does not
matter whether sales clerks were intentionally misleading our secret shoppers
to sell more expensive items, or if they were simply misinformed,” said Ashwell. “The result is the same: consumers will pay
too much for unneeded equipment or services.”
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, Florida PIRG’s report finds that accurate information
about the transition is hard to come by in most retail stores.
“The DTV transition is a
shared obligation,” said FCC Commissioner Jonathan Adelstein. “As the first line of defense, retailers should redouble
their efforts to educate consumer service reps and the public about the
converter box program and the DTV transition generally. A national state of
confusion must be avoided at all costs. We're only going to be successful if
everyone does their part.”
“Too many Americans remain
unaware of the fact that television signals are going exclusively digital in
just a year. The digital transition promises to bring more television
programming with better picture and sound quality, but if consumers aren’t
ready for it, these benefits will be sidelined by the outcry when analog
televisions go dark. We need a comprehensive consumer education plan in place
so that consumers are fully informed and ready for the transition,"
said Rep. Edward J. Markey (D-MA), chairman of the House Subcommittee on
Telecommunications and the Internet.
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. 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 PIRG’s “secret shoppers” to buy new, expensive digital
televisions or premium converters, which will not be covered in the government’s
coupon program.
Nationally, U.S. PIRG
researchers found the following:
- 81% of sales staff provided inaccurate
information about converter boxes.
- 78% of sales staff provided inaccurate
information about the coupon program.
- 42% of sales staff provided inaccurate
information about the transition date.
- 20% of sales staff tried to up-sell surveyors to
digital TVs or upscale converter boxes.
Florida PIRG 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 provide proper information about the
converter boxes they sell and about the government-sponsored coupon program that
is designed to offset the cost of the converter boxes,” said Ashwell. “They 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,” he concluded.
Additional tips for consumers
are included in Florida PIRG’s report, downloadable at www.uspirg.org. Consumers
can also go online at dtv.gov or call the free government number 1-888-388-2009
to find out more about the government-sponsored coupon program.
Florida PIRG is a non-profit,
non-partisan statewide citizen-based public interest advocacy groups.
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