Sales clerks at national retail chains that carry electronics have been misleading broadcast television viewers about the 2009 transition to digital television, directing them toward unnecessary purchases, a report by the Maryland Public Interest Research Group says.
The consumer advocacy group, along with counterparts across the country, conducted 132 "secret shopper" surveys in 10 states last fall.
The Maryland survey included 10 stores in Baltimore and Baltimore County that belong to five national retail chains.
The surveys found that sales clerks gave out incorrect or misleading information about the date of the transition, the equipment consumers would need and the federal government's coupon program to offset the cost of converter boxes.
"Those mixed signals will cost consumers," said Johanna Neumann, policy advocate for Maryland PIRG.
After Feb. 17, 2009, television signals will be broadcast digitally, rather than in an analog format. Many, but not all, televisions sold since 2004 have a digital tuner - characterized by an input connection labeled "digital" or "ATSC," according to the National Telecommunications and Information Administration.
But viewers won't need a brand new set to continue following their favorite shows. Those who subscribe to cable or other television services won't need to convert their signal. The analog sets will still work with equipment such as video game consoles and DVD players.
However, consumers who rely on conventional antennas for over-the-air broadcast TV and use older sets - mostly purchased before 2004 - will need to buy a digital converter, which will range from $50 to $70. Starting next week, the federal government is giving away two $40 coupons per household to defray the cost of the converters.
Maryland PIRG estimates that 22 million people around the country rely on free over-the-air broadcasting. A majority of those people are seniors or part of other vulnerable populations, Neumann said.
"A lot of them are turning to retail electronics stores for information," Neumann said.
But about four out of five sales staff at those local retailers gave out incorrect guidance about the converter boxes and the coupon program, according to the report, which was released yesterday.
Around Baltimore, the researchers went to RadioShack, Circuit City, Wal-Mart, Target and Best Buy. Nearly two-thirds of sales staff gave out incorrect information about converter boxes and three out of four clerks misled consumers about the coupon program, according to the local survey.
Half were wrong about when the conversion would take place, and half tried to "up-sell" consumers by directing them to unnecessary, more expensive products.
Thirteen percent of the stores surveyed were selling analog televisions. All had incorrect or hard-to-read labels to warn consumers about the digital transition.
The groups are calling for state attorneys general to enforce consumer protection laws when stores mislead consumers. They also want the federal government to do more to educate the public and to protect cable subscribers from unnecessary charges related to the transition.
Best Buy spokesman Brian Lucas disputed PIRG's findings, saying that the surveys were conducted before details of the coupon program and the converters had been established. But Neumann said they surveyed stores from September through December and confirmed their findings by surveying stores in Virginia and Texas last month.
Lucas also named several steps the store has taken, such as pulling its analog televisions in October. Last month, Best Buy trained in-store staff about both the converters and the coupon program. Stores have applications for the coupons/
In addition to posting information on its Web site, www.best buy.com/dtv, the company also has set up a customer hot line: 877-BBY-DTV9. At a later date, customers will be able to purchase a converter - and redeem their coupons - by calling that number, he said.
"We've tried to make sure we've presented all the information," he said. "We need to update it as the details get clear."
The report supports anecdotal evidence that people are confused about digital television and other available technology, said Steve Hannan, executive director of the Maryland Consumer Rights Coalition. "Consumers are confused about what the 'D' means," he said. "For the FCC, it's digital. For retailers, it's HDTV."
Digital television refers to the digital broadcast signal itself, whereas high-definition television, or HD, is one digital television option that offers enhanced picture quality.
"Retailers need to educate their staff," Hannan said. "The 'D' is what is causing everyone problems. They are looking to sell televisions."
Lucas, of Best Buy, agreed there is some confusion about the terminology, but they try to match people with the right solution - even if they ask for HDTV when a converter is really all they need.
However, "we don't want people coming into our stores thinking they have to buy a plasma television in order to watch television," he said.
Also, manufacturers are just starting to make the digital converter boxes, so consumers are going to have to check stores to see if they are available. "They're not going to have enough in stores when Christmas comes around to give these as a gift," Hannan said.
Catonsville residents Frank Spence and his aunt, Debby Dehne, had varying levels of familiarity with the pending digital television transition as they browsed in the Best Buy near Security Square Mall yesterday.
Spence knew a change was coming and thought "if you don't have the right TV, it might not work at all," he said.
His aunt, however, had the right idea - knowing they could purchase a converter box rather than a TV. But she hasn't yet decided what she's going to do.
"Manufacturers, they just want you to update all your stuff," she said.
liz.kay@baltsun.com
Consumers can find more information about the transition to digital television at www.baltimoresun.com/consuminginterests.