News Release

Retailers Misleading Consumers on the Digital Television (DTV) Transition

NCPIRG conducts survey of national TV retails stores and finds that consumers are getting Mixed Signals.
For Immediate Release

In one year, 22 million Americans who rely on free over-the-air analog broadcasting – including many elderly and other vulnerable populations – will be at risk of losing access to TV, which for many is a primary source of news and emergency information as well as entertainment.

On February 17, 2009, all TV stations will begin broadcasting exclusively in digital signals. Consumers with older analog TVs receiving over-the-air television will see their televisions go dark, unless they retrofit it with a digital converter box. Consumers with cable or satellite service will not be affected. 

Many consumers are just now hearing about the government-ordered digital transition and they are going to electronics retail stores to ask questions about what is necessary to maintain their TV reception.

One consumer advocacy organization, NC PIRG, has conducted “secret shopper” surveys at 132 electronics’ stores in ten states – including North Carolina - to determine if America’s big electronic retailers are properly preparing their customers for the digital transition.  The results were released today in their new report: “Mixed Signals: How Retailers Mislead Consumers On The Digital Television (DTV) Transition.” 

“The results of our survey are clear,” said Kat Scott, Citizen Outreach Director of NCPIRG, “retail sales clerks are providing inaccurate or misleading information about the upcoming digital transition and these mixed signals will cost consumers time and money.”

The transition to a digital system was first mandated by Congress in 1996.  Broadcasters, manufacturers and retailers were informed.  Twelve years later, and just one year out from the date of transition, NCPIRG’s report shows accurate information about the transition is hard to come by in most retail stores. 

It is important to know that next year’s change does not require any household to purchase a new television set.  Households with older sets still receiving analog signals via antenna need only purchase a basic converter box that costs approximately $40.  And, the government is offering up to two $40 coupons per home to offset the cost of the most basic converters.

However, some sales clerks tried to persuade PIRGs “secret shoppers” to buy new, expensive digital televisions or premium converters, which will not be covered in the government’s coupon program.  

“To consumers, it does not matter whether sales clerks were intentionally misleading our secret shoppers to sell more expensive items, or they were simply misinformed” continued Scott. “The result is the same: consumers will pay too much for unneeded equipment or services.”

Nationally, almost half of sales staff surveyed did not provide accurate information on the date the transition would take place – answers ranged from “sometime soon” to “probably not until 2010.” 

Here in North Carolina we found the following:

  • 70% of sales staff provided inaccurate information about converter boxes. 
  • 80% of sales staff provided inaccurate information about the coupon program.
  • 30% of sales staff provided inaccurate information about the transition date. 

NCPIRG called on retailers to properly educate their employees and their customers about the digital TV transition.

“To protect consumers against misinformation or fraud,” said Scott “retailers must insure proper information is about the converter boxes they sell and about the government sponsored coupon program designed to off-set the cost of the converter boxes is readily available.  They must also properly label analog TV sets that are still on their shelves with warnings informing buyers about the need for a converter box after next February.” 

Scott also recommended that the government step in to enforce penalties against retailers that mislead or misinform consumers to reap greater profits from the sale of unnecessary equipment.

Additional tips for consumers are included in the NCPIRG report, downloadable at www.ncpirg.org. Consumers can also go online at dtv.gov or call the free government number 1-888-388-2009 to find out more about the government sponsored coupon program.  

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