Dorine: The "toaster PC firm" is in a bit of trouble with its customers !! -- and AOL wants to spread these devices around <G>... I knew there was a good reason I sold my AOL at about $165/share....Check this article out...
<<Posted at 06:36 a.m. PDT; Wednesday, June 30, 1999
Microworkz customers see red
by Peter Lewis
Seattle Times technology reporter
Microworkz, which drew national attention last week over a possible deal with America Online centering on a low-priced PC the Lynnwood-based computer maker is offering, has been the subject of numerous consumer complaints over the past year.
The consumer protection division of the Washington state Attorney General's Office has logged 37 complaints dating back to last summer. Most were filed in the spring, with consumers angrily accusing the company of failing to deliver products or refunds as promised.
Microworkz Chief Executive Rick Latman was at once apologetic over the complaints and defensive about the company's efforts to clean up its act. All computer manufacturers draw consumer complaints, he said.
"We grew way too fast for our own britches," he said, calling the spring "a pretty sad time." "There's some pretty disgusted stories about people getting the runaround."
Last week, the small computer maker enjoyed national publicity after it was reported that it was discussing a possible deal with AOL involving the iToaster, a $199 non-Windows PC that Microworkz plans to introduce July 15. The company received mentions earlier this year when it began offering a PC for $299.
Among the complaints lodged against the company is the case of Amy and Jason Zerba of Bothell, who said they walked into the Microworkz showroom (then in Seattle's Lake City neighborhood) Feb. 13 and ordered the "Workz Pro" model for $1,474.95, paying by credit card. The salesman told the couple that, because of back orders, it would be three to four weeks before the computer would be ready.
A month later, Amy Zerba called Microworkz and learned the computer was still not ready. When she checked back two days later, a customer-service representative told her production time was running four to six weeks, and promised to call back that day. The rep didn't call.
Over the next several weeks, the Zerbas had numerous contacts with the rep, who, much to Amy Zerba's irritation, persisted in calling her "girlfriend." When Amy Zerba asked for a refund March 30, the rep said the Zerbas' account would be credited within five to seven business days. It was not.
In her April 23 letter to the attorney general, Amy Zerba wrote: "I am 8 months pregnant and the stress of this has become intolerable. $1,500 is a lot of money to us. We want that money refunded to us now."
Reached last night, Amy Zerba said Microworkz finally refunded the money about May 1. "It was an unbelievable struggle to either get the machine or get a refund back," she said.
Herb Barrett of Alamogordo, N.M., is still waiting for his money. In a June 1 letter to the attorney general, Barrett described himself as disabled and dependent on disability benefits.
In March, he joined a state vocational rehabilitation program that enabled him to enroll in a computer engineering school, entitling him to a $600 check to purchase a minimal computer.
He purchased a $499 PC from Microworkz after he saw the company's ad in PC Computing magazine. A sales rep assured him it would be in his hands by May 3.
When May 18 rolled around and Barrett still had not received his computer, he asked for a refund. He said he was assured he would receive one within 30 days. He still hasn't received it. The ordeal has been a "nightmare in hell," he said.
Latman said yesterday that Barrett was mailed a check two days ago. "Mr. Barrett should have it any day," he said.
While taking full responsibility for the company's failures, Latman also sought to minimize the damage. He said the number of complaints had dropped off in recent weeks. "We're never going to have this problem again," he said.
Latman insisted that Microworkz has responded to every single consumer complaint filed with either the attorney general or the local Better Business Bureau, and that all refunds have been paid even if the state attorney general's records don't reflect them.
Yesterday, assistant state attorney general Regina Cullen said the act of responding to a complaint does not necessarily satisfy a consumer. She also noted that her office hasn't received independent verification from consumers regarding charge backs on their credit cards.
Asked if the negative publicity might affect the reported discussions with Microworkz, an AOL spokesman had no comment. Last week, Latman fended off questions regarding the reports that AOL was interested in acquiring Microworkz, but acknowledged that he was talking with AOL about a "co-branding" deal.
Latman has been under increasing scrutiny since the reports of the AOL talks emerged. Yesterday, MSNBC reported that Latman has had problems in previous ventures.
He acknowledged last night that he has been sued by five former associates over a Web-site deal. Latman said he knew only one of the investors, who he said proposed creating "a bikini site" as a way to draw male customers to Microworkz' online site. Latman said he pulled out when the other investors wanted to shift the focus to an "adult Web site." Latman said the suit is in mediation.
Latman is the grandson of Leon Schwab, the so-called "pharmacist to the stars" whose Sunset Boulevard drugstore in Hollywood was frequented by movie stars. It closed in 1983.
Copyright © 1999 Seattle Times Company>>
seattletimes.com
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BTW: I have not seen the SI beta site yet. The old one still works for me <G>. |
