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DTVPal preorders being cancelled by FreeDTVShop

post #1 of 12
Thread Starter 
Through no fault of Mosquito Productions aka FreeDTVShop, my two pre-ordered DTVPal CECBs have been cancelled along with everyone elses. Seems Echostar has tossed a money wrench into the mix with both an eleventh hour price jackup and further obfuscating availability issues.

I'm off looking at alternatives now. Thankfully my coupons don't expire until mid-July so I do have some wiggle room.
post #2 of 12
Quote:
Originally Posted by Bob A (SD) View Post

Through no fault of Mosquito Productions aka FreeDTVShop, my two pre-ordered DTVPal CECBs have been cancelled along with everyone elses. Seems Echostar has tossed a money wrench into the mix with both an eleventh hour price jackup and further obfuscating availability issues.

Echostar's 50% price increase suggests an internal political war within senior management ranks regarding the CECB product. Sounds like a poorly-run company....

In a time of price inflation, one could understand possibly a 10% price hike, but 50%??
post #3 of 12
Those of you following the Satellite Guys' thread, do I read that right that the DTVPal is currently being sold at WalMart in Puerto Rico?
post #4 of 12
Here is my cancellation. It should be noted that the sale has already occurred and payment made. You cannot come back after the sale and say we now want more money or we will take money back from your credit card.
The available product has to ship as agreed to after payment had been made. Otherwise a class action will have to occur to enforce perforance of the sales agreement.

June 14, 2008

To Our Dear DTVPal Customers:

It is with deep regret that I am writing to inform you that Mosquito Productions and FreeDTVShop.com will no longer be offering the Echostar/Sling Media DTVPal converter box. This is a decision that is out of our control. Up until Monday, June 9th, we had solid committments from Sling Media (a wholly owned subsidiary of Echostar) and our distributor that we would receive stock of the DTVPal during the week of June 16th. We worked extremely hard to establish this distribution channel for the DTVPal over the first 6 months of the year.

On the evening of June 9th, Charlie Ergen, CEO of Echostar Corporation, announced on his Charlie Chat television program on the Dish Network that the DTVPal would be selling for an increased MSRP of $59.99 instead of the original $39.99 MSRP that had been consistently stated by Echostar since January, 2008. This announcement was a surprise to us, as well as our distributor and representatives at Sling Media, especially given that the product was due to be released in approximately one week.

It was a disappointment as well. Ever since January, there have been claims through press releases and other Charlie Chat programs that Echostar was looking to be a leader in the DTV Coupon Program by keeping their MSRP at $39.99. This was a real beakon of hope for a lot of customers that had been disappointed to see that other converter boxes were $10 to $40 more than the $40 coupon value. At FreeDTVShop.com, we had no choice but to set our price at $42.50, which was the lowest price point we could meet without losing money on the unit. We certainly don't expect any company to willingly lose money on a product, which may have been the case with Echostar at the $39.99 price. However, given all the attention that has been focused on the DTVPal up until this point, we would have expected an announcement of a change in price and availability to be made more than one week in advance of the product's release. We would also expect all established distribution channels to be honored. This simply is not the case.

Given the level of scrutiny that has been placed on retailers like us to help ensure consumer protections in the TV coupon program, we hope that the NTIA reviews these latest developments with the DTVPal. If you have any questions or comments that you would like to voice about these changes, you can contact the NTIA's Coupon Program 24-hour hotline at 1-888-DTV-2009 or email them by going to https://www.dtv2009.gov/EmailUs.aspx

We understand that this change is leaving some customers with rapidly approaching coupon expiration dates in a bad situation. For those of you that pre-ordered that DTVPal, we apologize, but have no choice but to cancel your order with us. You are free to use your coupons at any NTIA approved retailer. This cancellation process may take a few days to complete, but you can use your coupons immediately.

We do not have any further information about the availability of the DTVPal, so please allow other customers a chance to get through our phone lines to inquire about other products. We will continue to offer the widest selection of coupon eligible converters on the market today, and our selection will continue to increase over the coming weeks and months.

I apologize to all of our customers for this change, but again, it is a decision that is out of our control. One unfortunate outcome of this cancellation of orders is that the Freedom Calls Foundation (www.freedomcalls.org) will now be receiving thousands of dollars less from us. We have committed to donate 10% of our profits from converter box sales to this foundation that provides telephone and video conference facilities for our troops overseas free of charge. The Freedom Calls Foundation is completely supported by public donations and receives no funding from the military. We do see the irony in a satellite TV company forcing us to cancel orders resulting in a loss of thousands of dollars worth of donations to a foundation that is centered around satellite communications for our troops. If you have it in your heart, please take a few minutes to check out what they do and send a few dollars their way.

Sincerely,
John Buchmann, Owner
FreeDTVShop.com
Mosquito Productions
post #5 of 12
Quote:
Originally Posted by syber View Post

Here is my cancellation. It should be noted that the sale has already occurred and payment made. You cannot come back after the sale and say we now want more money or we will take money back from your credit card.
The available product has to ship as agreed to after payment had been made. Otherwise a class action will have to occur to enforce perforance of the sales agreement.

You miss a key point: the vendor (Sling Media division of Echostar) canceled its contract to supply this product to FreeDTVShop at the agreed-upon price.

The business tactics of Echostar in distribution of this CECB are questionable. I think it's inappopriate for you to make an absolute demand upon Free DTV Shop in this situation - they undertook their due diligence in pre-ordering the product from Sling Media, but Sling Media ultimately breached its duty of fidelity and duty of care.

While I empathize with your irritation at the availability of DTVPal distribution at FDTVS, they should not be compelled to have further dealings with a business entity (Echostar) which FDTVS no longer regards as trustworthy.

If you happen to get enjoyment and pleasure from speculating about frivolous lawsuits, don't be surprised if Free DTV Shop puts up a phenomenally powerful set of counterclaims and affirmative defenses. You might regret the "class action lawsuit" idea.
post #6 of 12
Check your charge statement again, syber. You should find that you are mistaken and payment was not made. Whether you pay with a coupon or not, Freedtvshop does not charge the customer or the coupon until the product is in the shipping process.

As far as I know, the only online retailer who took pre-orders and charged the customers card was Convertmy.tv on the MaxMedia.
post #7 of 12
This is all correct. We have only obtained authorizations against your credit card, PayPal, or Google Checkout accounts. No funds have been captured. It was a pending transaction, and as such, it can be voided without any financial loss. I made this clear in a followup email to all preorder customers this afternoon. The authorizations will be voided as orders are cancelled. This process will take a few days simply due to the number of orders that were placed, but there is no need to get your undies in a bunch.

It's amazing how many people will through out "class action" over less than $15. Is it possible to do a small claims class action?
post #8 of 12
Just take your $40 card and go to your local stores and buy the box. You haven't lost any money.
post #9 of 12
I think an appropriate response to this situation is for every potential CECB purchaser on the planet to cordially invite slingstarechomedia to shove their entire inventory of dishpal converters up where the sun don't shine.
post #10 of 12
What do you guys have against Sling Media?

There were just a distribution partner you need to look further up the distribution channel and find Dish Network.

I have a feeling that nothing about the DTVPal price hike or canceling of distribution will been seen on the News or in Newspaper Print.

I have tried several times in the past to contact those in my state about other problems and never seen any action.

Before I have asked people to contact their local media and was told why should I.

This time I hope some of you do.
post #11 of 12
Quote:
Originally Posted by BaseShip View Post

Just take your $40 card and go to your local stores and buy the box. You haven't lost any money.

The cards weren't already "processed"?
post #12 of 12
Quote:
Originally Posted by WaltA View Post

The cards weren't already "processed"?

freedtvshop didn't take the value or lock it up.

if the coupon isn't expired they say it is good right now.
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