Think twice before buying a digital TV converter box from this man

As if the digital TV transition weren't perplexing enough, consumers now need to worry about being conned.

Polls have consistently shown that many people are confused by the upcoming digital TV transition -- the government-mandated switch by most broadcast TV stations to all digital signals starting Feb. 18. There's a lot to be confused about. People aren't sure if they need a new TV to continue receiving over-the-air signals, or if they should apply for the two $40 coupons available to any U.S. household to purchase a converter box so an old analog set can pick up the new digital broadcasts.

The friendly folks at Universal TechTronics say they are here to help.

In newspaper ads nationwide (above example is from the Cincinnati Enquirer), the Canton, Ohio-based company has been offering two free digital-to-analog converter boxes (a previous version of this post said analog-to-digital), without the hassle of applying for those government coupons. All you need to do is buy a five-year warranty at $59 for each of the Miracle ClearView TV boxes, which according to the ad is, "a real steal."

The problem, according to the Better Business Bureau, is that unsuspecting consumers are the ones being stolen from.

The ads are "a bait-and-switch tactic that prey on consumers' lack of knowledge" about the conversion, the Better Business Bureau said in a recent warning. The group noted that, including shipping and handling, each box ends up costing significantly more than if you used a $40 government coupon for any of several converter box models that sell for from $49 to $59. If ordered within 72 hours of the ad's publication, the box costs $68.30 (including shipping), according to the company. After 72 hours, the total goes up to $97.30.

"They’re really targeting the senior citizens who are going to be confused and not up-to-date on the technology,'' said Alison Preszler, a spokeswoman for the Council of Better Business Bureaus.

The ad is designed to look like a news article ...

... and features that smiling older gentleman displaying his actual warranty certificates (download a more readable copy of the whole ad here). The Better Business Bureau has seen the ad appear in newspapers in Portland, Ore.; Memphis, Tenn.;  Atlantic City, N.J.; Charlotte, N.C.; and the state of Ohio (if you've seen others, let us know in the comments below).

The converter box program, run by the National Telecommunication and Information Administration, began Jan. 1, and this is the first large-scale scam the Better Business Bureau has seen, Preszler said. The group has reported problems before with the company, which also does business as Heat Surge, distributing electric fireplaces with "Authentic Amish Crafted Premium Wood Mantles" (There is no claim of Amish workmanship on the converter boxes.)

The NTIA also has had problems with Heat Surge. In the spring, the company was removed from a list of retailers certified to accept the government's converter box coupons because its advertising was misleading because it was selling the boxes under the Universal TechTronics name, NTIA spokesman Todd Sedmak said.

The agency is investigating to determine if the company has violated any program rules or federal laws, Sedmak said. Although the ads say that the Miracle ClearView TV box is certified by the NTIA, it isn't on the list of certified boxes.

John Armstrong, vice president and general counsel of Heat Surge, said the converter boxes were certified models made by Philco that have been rebranded Miracle ClearView, with extended warranties. Heat Surge decided to offer an alternative to the coupon program after being decertified by NTIA, he said.

“We thought what we could do is offer a warranty that goes well beyond what a consumer could find at a retail outlet,” Armstrong said. He said the ads were not misleading.

-- Jim Puzzanghera

Puzzanghera, a Times staff writer, covers tech and media policy from Washington, D.C.

Photo: A Universal TechTronics ad from the May 20 edition of the Cincinnati Enquirer, courtesy of the Better Business Bureau.

Comments

[Rick Sroka]

What about the little handheld color TVs? Mine is 16 years old and works off batteries, my auto outlet, and/or a dc voltage converter. Will they all need converter boxe ? If so, are there any that are minaturized and work with these types of TVs?

[Jim M]

All analog TV's will need converter boxes unless you are tuning in a low power TV station.

While most of the converter boxes I have seen are fairly small, they are still bigger than most of those handheld sets.

Sorry.

[Domingo A. Trassens]

This is not the only case… Always before to buy a digital device – TV, monitor, computer, MFP,….- you have to think twice and maybe more…In special, when the device offers “magic” functions with cheaper prices, “coupons” and rebates plus rebates… Since two years ago, till now I am waiting a “$100-rebate” that offered a very good “brand” of PCs for a fabulous configuration of desktop machine. By the way, after one year, I had to change its hard-disk drive days after the guarantee expired…

Domingo
http://www.comlab-corp.com
http://spaengclub.blogspot.com

[John Baker]

It should also be noted that people who already receive cable or satellite will NOT need the converter boxes. Only people who get their signal via antenna will require converters.

[Mike Dills]

You need it if you get over the air broadcasting with your analog TV.
You don't need it if you have wired tv, e.g. cable, fios and or satellite.
There plain and simple.
email me if you have preguntas.

[Wow]

Wow, what kind of newspaper would allow an ad to run that made itself look like a news article? If my local paper allowed an ad like that to run, I would never buy from them again.

[Irvine Reader]

It was in either the Saturday or Sunday edition of the Orange County Register within the last two weeks. It was the exact same ad. I read it and knew it was a con at the time and was hoping that no one would fall for it.

[Bill]

I bought a Channel Master CM-7000 DTV converter box from a mail-order place, www.solidsignal.com, online, and very pleased with the service and the unit. Best feature is an S-video output jack which offers better color. You can use your $40 coupon numbers online to obtain the discount from SolidSignal. (those coupons are actually precharged, one time only debit cards) To apply for those cards, go to https://www.dtv2009.gov/ This is recent experience, totally on the level, no scams involved. BTW, the pictures and sound are excellent.

[BOb C]

>>In newspaper ads nationwide (above example is from the Cincinnati Enquirer), the Canton, Ohio-based company has been offering two free analog-to-digital converter boxes,<<

Either the LA Times, or the newspaper ad itself (which I can't quite read), has it backwards. These boxes are to convert digital to analog, not the other way around.

[Jim Puzzanghera]

Thanks for pointing that out Bob. It was my bad. I meant that the box converts an analog tv to a digital one. But you're absolutely right, the box technically converts the digital signal to analog. I'm fixing the post to reflect that.

[scoot]

"“We thought what we could do is offer a warranty that goes well beyond what a consumer could find at a retail outlet,” Armstrong said. He said the ads were not misleading."

That's a bunch of crap. How can a *warranty* cost as much as the units retail for?

[Denice Rhodes]

You are right to say that many people are still confused about the transition to digital television and this company is not the only one that wants to prey on people's lack of knowledge.

Our non-profit, the Urban Progressive Foundation has been actively working with seniors and other groups to provide straight, clear and understandable information to help them through the transition.

Later this week, I will be traveling to Wilmington, North Carolina, where the first full blown transition test-run will commence. If you can't make the trip, allow me to be your eyes and ears. Visit my blog http://digitaldynamo.blogspot.com/ and website www.transition2DTV.com to for more information.

[Cyndie]

I'm concerned about the thousands of people who were/are unable to purchase their converter box within the 90-day expiration date for many legitimate reasons. (Having to rely on others, not having the right funds at the right time, being hospitalized or having other health concerns that kept people from being able to adnere to expiration date, etc.)

Why was an expiration date necessary in the first place? Why can't they remove the expiration date or extend it for everyone? Many of our most vulnerable citizens will be without TV come February 2009 because they couldn't afford the full price of the converter box. Is anyone else of this mind-set?

[Salli]

While I think what the company in this article is doing is simply appalling and predatorily, I also wonder if other companies out there are doing something just as sneaky and wrong. For example, I use to have this TV top receiver box called a WebTV that was used with ones television, phone(landline), and keyboard used to access the internet. Now, knowing about the WebTV, I wonder if these converter boxes (like the WebTVs can also send signals back to the producer of the box about ones viewing habits etc.) can phone home with the users private user information. Hmmmm I may never know.

Also, I agree with Cyndie, coupons should not have had such a small time frame. When they were first being offered, no tv stations were broadcasting local channels in digital so one would not know if the "box" was functioning correctly or not to know if they needed to return the it or not.

[H-F]

Quote: "What about the little handheld color TVs? Mine is 16 years old and works off batteries, my auto outlet, and/or a dc voltage converter. Will they all need converter boxe ? If so, are there any that are minaturized and work with these types of TVs?"

Apparently there is such a thing as a portable converter box -- I bet it's bigger than your mini-TV! See this CNET article: http://reviews.cnet.com/digital-tv-converter/