In April, 2010, Minnesota-based Best Buy sued Ultimate Electronics for making advertising claims that it had lower prices than its competitors and shopped them daily to back up the claims.Ultimate Electronics has since discontinued those specific claims and as a result of this, Best Buy withdrew its lawsuit on July 16th.
The BBB Serving Denver/Boulder gives Ultimate Electronics an F rating for not responding to requests to modify ‘lowest prices’ claims, (and for having unanswered complaints). Though the company has discontinued claims that it price-shops Best Buy and other competitors daily, it continues to used ‘lowest prices’ claims.
"It’s good to see that Ultimate Electronics made an effort to resolve the matter with Best Buy. The BBB is still concerned that it states it has the lowest prices," said Dale Mingilton, president and CEO of the BBB Serving Denver/Boulder. "Especially when the BBB in Minnesota found that oftentimes, their prices were actually higher than competitors’. Until they prove or modify that claim, they will continue to have an F rating with the BBB."
According to the Denver Business Journal, Ultimate Electronics denied Best Buy's allegations of false and misleading advertisements in an earlier filing with Minneapolis' U.S. District Court. Ultimate Electronics has declined to comment on the suit.
When it comes to ‘lowest prices’ claims, your BBB offers the following advice:
· Don’t assume that ‘lowest price’ claims are true. You must shop around and make your own comparisons.
· Ask the company what the claim is based on and whether or not they offer any kind of guarantee.
· Many businesses have a meet-or-beat guarantee to try to encourage customers to find lower prices amongst competitors, and therefore feel it is fair to make the claim. Ask for the guarantee’s complete details in writing before pursuing it.
· Get the company’s BBB Reliability Report to find out if they have had any unresolved advertising issues or any other issues before doing business with them.
