MDG'S BAD BUSINESS PRACTICES

05/22/07

MDG’s Bad Business Practices

By Lee Hanlon

A bad place to buy TVs, computers, laptops, and software is MDG Computers Canada, Inc. The only good thing about MDG is their in-house financing and support technicians. Unfortunately they have a bad reputation when it comes to customer service and contracts. MDG contracts are not only illegal, but also unfriendly to customers.

For example clause 14 (RETURNS, REFUNDS AND EXCHANGES) of MDG’s contract states “As permitted by law, there are no returns, refunds or exchanges of any kind, whatsoever. All sales are final. We may in our sole and absolute discretion, choose to accept a return, however, depending on various factors, including but not limited to; passage of time from purchase date, condition of the returned goods, any such return will be subject to a minimum restocking fee of 20% of the total original purchase price.” MDG’s position on this policy also includes goods that were defective at no fault of the customer.

Another illegal clause that can be found in the same contract is clause 23 (APPLICABLE LAW). This clause states that “This agreement is governed by and interpreted in accordance with the laws of the Province of Ontario and Canada, as applicable. Regardless of the place of your permanent residence, you consent to the exclusive or joint jurisdiction of the courts located in either Mississauga or Oakville, Ontario, over all matters relating to this Installment Loan Agreement and that any and all claims arising between the parties shall be made before and be resolved by the aforementioned courts.”

Clause 23 is illegal because MDG cannot dictate to the customer where legal proceedings are held. At common law, there are two places where legal proceedings can be held. Either in the jurisdiction where the place of business resides, or in the jurisdiction where the customer resides. And as MDG also conducts their business in British Columbia they have to, by law, initiate any legal proceedings against BC located customers in the Province of BC.

MDG’s argument for defective goods, at no fault of the customer, returned is their warranty policy. At common law, a warranty, also known as a guarantee, is a legal binding contract in which the seller promises the buyer that the statement he makes about the quality of merchandise are true. After experiencing MDG’s unfriendly customer service and defective goods I took it upon myself to google “MDG complaints” I found numerous complaints about MDG’s products and poor customer service.

This is what some of them had to say:

“MDG is very misleading in their advertising and use it to their advantage in pulling a fast one over on people not familiar to computers. I gave them a chance back in 1995 and got that bad gut feeling with them then and wisely chose not to buy from them. They were only one store back then just off Brown's Line in Toronto. I tried again in 2001 with similar feelings after talking with a salesman. They use to sell via the shopping channel as well but I have heard that with all the problems they had, the shopping channel just doesn't deal with them anymore and would rather deal with Dell. This whole thread would be a good testament to that. I would not deal with MDG but would rather spend my money more wisely on another manufacturer's system. Bait and switch tactics, out of stock on X-boxes and incompetent warranty repairs (if you can even get them) are just the tip of the iceberg here. It's a real shame that Steve Nash has to associate with them. I guess money talks.”

“On Saturday, March 3, I purchased a Vision S system from the Etobicoke store, when I set up the computer on Sunday morning; the system advised me that it had an invalid product key. Calling MDG Technical support, I was told that this was a Microsoft problem. After more than 2 hours on the phone with Microsoft support, the problem was not resolved and I was told to take the machine back to the store. I re-packaged the equipment, took it to the store and explained the situation. They said it was not MDG’s problem but Microsoft’s and that I had to call MicroSoft again. I said I wasn’t going to do that as my first try in dealing with them was unsuccessful so I wanted a refund on the product. I was reminded that there was a “No Return Policy”. I said that would apply if the product was fully functioning but since there was a defect it shouldn’t apply. In pressing for a refund, I was told that I would have to talk to the Store Manager who was not in at the moment but would be in at noon. I asked that I be given some paperwork to indicate that I was leaving the computer at the store and they refused to provide anything. I asked that the machine but accepted for a service to re-install Windows Vista but was refused. Thinking the store to be reputable, I left the equipment with them. At 12:45 I called the store again to be told that the manager had been in but went out to the MDG head office and would be back in a couple of hours. I called again at 3:00 and was told that the manager was busy and could not take my call and to call back. At 3:40, I called again and was told he was still busy but would call me in 20 minutes. At 4:20, I called and finally reached him. I asked him if he was aware of the situation and he said he was and said immediately we don’t give refunds. It’s up to you to contact Microsoft to get a new product key. I said it was not my problem with Microsoft but theirs and that it wasn’t an acceptable solution to me. He then said that they had no proof I had even left my computer there. I asked him to repeat that and he did, basically threatening me that they would not even return the equipment I had paid for . I asked him if he wanted to be sued and he said – “Sue me – I don’t care”. I then said that I would be calling the police for assistance and he said “bring the police anytime”, The Toronto Police arrived at the store at about 6:00 pm , The officers took my statement and they went in to talk to the manager. The manager admitted that he had my computer and that I could take it or any other similar machine in the building. It was still not an acceptable solution as I could not be guaranteed that the product key would be valid and it would become my problem again. After a week equipment is still in the Etobicoke store and I refuse to deal with the manager and staff of that location who treated me so with such disrespect, animosity and threatening manner. Head office has been no help whatsoever - buyer beware.”

“Let's get these jokers! What a poor excuse they have for "customer service"! Class action sounds like a great idea with me. I just got my CPU back after 8 days in their shop and the tech completely ruined my system. He removed just about everything and gave me poor excuses about why this was and why there was no other way than for me to purchase Microsoft this that and the next thing to get up and operating again. What a crock!!! And the rudeness level was quite something too.”

“I have been having problems with MDG. The laptop I received does not work, as well, the software back up cds that came with the laptop are also defective. When I spoke with the MDG customer service rep, she was rude, impolite, unhelpful, and disrespectful. The tone of her voice also showed signs of disrespect. And although the problems with the software and the laptp was at no fault of my own, MDG advised that if I want my laptop to be repaired at their Vancouver, BC outlet that I would have to pay for shipping costs. The only choice I had was to send the laptop back to the originating sender and wait for them to send me a replacement. But this customer service rep wasn't the only disrespectful employee. The sales rep, knowing that I was going to be late for class was very pushy in getting his sale. Because of him I was almost late for school. If it wasn't for the fact that I need a laptop, and that this is the only way I can afford to purchase one, I would have cancelled the contract and returned all of the items and gone to Future Shop or London Drugs to purchase one. My advice...... MDG is not a reliable company. And when I replace my home pc, MDG will be a last resort company to go to.”

“Bought a Vision system 2 years ago from MDG and will never buy from them again. Although the post-purchase help line support is pretty good, that's all they have going for them. I was sold a very junkie tower with a power supply that wobbled and rattled. I found out much later that they also switched the good Intel CPU fan for a no-namer. It too was also noisy and junkie. Bought it here in Toronto in the Bay and Gerrard area. I've since gone elsewhere to replace the tower with a proper power supply and get a good quiet fan installed. Moreover, when I went to buy the computer, the "deals" that they advertise in the paper are not necessarily applicable at all stores. You walk in expecting the advertised deal and then they say that they don't offer that deal at that store. They then try to sell you something else. Classic bait and switch. I don't trust MDG anymore and never will again. You shouldn't either. They are good marketers and slick salespeople. Beware.”

These are just a few of the hundreds of complaints against MDG. Recently the State of New York filed a law suite against Dell for fraudulent business practices. And as MDG’s main office is in Ontario, the Province of Ontario should take the same action against MDG. Other known complaints are on file with Phone Busters which deals with fraudulent complaints. It is high time that businesses like MDG should be shut down.

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