The bMighty Blog -- Business & E-Business

The $54M Lawsuit -- Or How Not To Treat Your Customers

Posted by Naomi Grossman Wednesday, Feb 13, 2008, 12:11 PM ET

Best Buy lost a customer's laptop, gave the customer the run around, wouldn't fess up, and then, finally made a paltry settlement offer ostensibly in the hope that she would go away. She did -- and then came back with a $54 million lawsuit. That's one way to make them think twice about their customer service.

The story goes like this: Raelyn Campbell bought a laptop at a Best Buy near her DC home in 2006. She paid an extra $300 for an extended warranty which came into play a year later when the power switch on her laptop broke. In May, she said she was told the computer would be fixed in two to six weeks.

Campbell apparently received the runaround from Best Buy "agents" for the next four months until Campbell finally discovered that the computer had in fact been lost. She finally received an offer of compensation -- a $900 Best Buy gift card -- but by then the chain store's treatment of Campbell had so inflamed her that that was not going to do it.

MSNBC quotes Campbell on the initial offer: "It wouldn't even cover the cost of replacing the computer, let alone the software, or my time. And why would I want to go spend money at their store again after the way I was treated?"

MSNBC also quotes the store's general manager, Robert Delissio, who replied to complaints made by Campbell's friends. "For every customer that has had an unpleasant experience I can show you hundreds who have had a great experience. I have been in retail for a long time and the one conclusion I have come to is that not every customer can be satisfied," Delissio wrote in an e-mail supplied by Campbell to MSNBC.

Delissio's attitude is one that smaller businesses would do well not to emulate, especially in light of what came next. When Campbell consulted a lawyer, it turned out that because her tax returns were on the computer that Best Buy lost the company was in violation of Washington DC's security breach notification law, which, according to MSNBC, "requires companies that have lost a consumer's data to tell them. To date, she has not received that notification."

The $54 million lawsuit was filed, an amount Campbell has acknowledged, was used to attract attention. All she wants, she said, is compensation for damages, an explanation as to how her laptop was stolen, and a promise from the company that it will train employees on privacy issues and procedures.

Whether Campbell gets all she wants remains to be seen but she has definitely made some noise and given Best Buy something of a black eye. Could all this have been avoided? Mistakes happen but had Best Buy contacted Campbell immediately, apprised her of what was going on, offered her fair compensation, and perhaps most significantly, treated her with respect, it is more likely than not that not only would she not be filing suit but also most of us would not be hearing about this case.

Smaller businesses can't afford to make these kinds of customer service mistakes. But at least their larger size peers are doing it for them.

Campbell is keeping a blog of her trials and travails with Best Buy. It's sure to make for some entertaining -- and educational -- reading


Business & E-Business | Retail | Sales/Marketing




This is a public forum. CMP Media and its affiliates are not responsible for and do not control what is posted herein. CMP Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of CMP Media LLC and may be edited and republished in print or electronic format as outlined in CMP Media's Terms of Service.

Important Note: This comment area is NOT intended for commercial messages or solicitations of business.


Spotlight on Solutions
(Sponsored By Cisco)


Explore the bMighty Blog
Most Recent Posts
bMighty Blog Topics
     
bMighty Bloggers
bMighty Blog Roll



Browse by Category
Imaging How-To Center

Document imaging basics, plus how to select a solution

go

FREE Technology Services Locator!

Search our database of 200,000 solution- provider locations by business activity, technology, vertical market, and customer size. Find a technology partner NOW.

go

Tech Term of the Day: P2P TV

TechEncyclopedia gives you the meaning of today's word, plus more than 20,000 additional IT terms and definitions.


InformationWeek Business Technology Network
InformationWeekInformationWeek 500InformationWeek 500 ConferenceInformationWeek AnalyticsInformationWeek CIO
InformationWeek EventsInformationWeek ReportsInformationWeek MagazinebMightyByte and SwitchDark Reading
Digital LibraryIntelligent EnterpriseInternet EvolutionNetwork ComputingNo Jitter
space
Techweb Events Network
InteropVoiceConWeb 2.0 ExpoWeb 2.0 SummitEnterprise 2.0 ConferenceMobile Business ExpoSoftware ConferenceCSI - Computer Security Institute
Black HatGTECEnergy CampMashup CampStartup Camp
space
Light Reading Communications Network
Light ReadingLight Reading EuropeUnstrungLight Reading's Cable Digital NewsConstantinopleInternet Evolution
Heavy ReadingLight Reading Live!Light Reading InsiderEthernet ExpoOptical ExpoTeleco TVTower Technology Summit
space
Financial Technology Network
Advanced TradingBank Systems & TechnologyInsurance & TechnologyWall Street & TechnologyAccelerating Wall StreetBank Systems & Technology Executive SummitBuyside Trading SummitInsurance & Technology Executive Summit
space
Microsoft Technology Network
MSDN MagazineTechNetThe Architecture Journal
space