[net.consumers] Consumer Buying Clubs

eagan@druxp.UUCP (EaganMS) (04/03/85)

Someone recently posted an article about a consumer buying club
in Austin Texas being sued.
This has me concerned because recently we joined a consumer club
(United Buyers Consumer Club). It is probably too late for me to even
worry about it now, but I would like to know if these clubs
ARE really as good as they sound.

This particular club is a member of Better Business Bureau, has been
in business for 14 years,
and has branches throughout the country.

Also, we know someone who was a member of this one for a few years, and she
has gotten lots of use out of it.
Our membership was about $779.00 total to be paid over a 2 year period,
the third year we pay nothing, then if we want to continue our membership
we pay $60.00/year for the last 7 years (altogether a 10 year membership
but we can cancel anytime after the first 3 years (i.e. after paying
$779.00).

We priced things in the catalogs and they DO seem a lot cheaper than
we would otherwise have to pay.

Please pass me any imformation on clubs of this nature.
Thanks.

werner@ut-ngp.UUCP (Werner Uhrig) (04/06/85)

[you asked for it:  excerpt from today's paper]

UNVERIFIED CLAIMS BANNED IN SUIT AGAINST DISCOUNT BUYING CLUB

A judge Thursday ordered the UNIVERSAL BUYERS CONCEPT, a discount buying club,
not to make any claims of discounts or buisness affiliations that it cannot
verify.

... Several witnesses testified that items they bought through the club could
be found at nearly equal prices in Austin retail stores.  ...[ some examples,
where the club was even MORE expensive] ...

... phone solicitation was used, prices were offered, like a "food processor"
which turned out to be a set of 2 knifes, claims were made about the club
being a member of the BBB and that $1 million bond had been posted.  company
claimed it could sell cars and mobile homes at "fleet prices", and that the
membership was a "LifeTime Membership" ....  About 30% of the furniture
displays were leased.

The judge ordered that the club discontinue all these false statements and
that the leased furniture be labeled as such.

[ While significant discounts are available when buying just about anything
  in quantity, I am more than surprised that someone seems to believe that he
  has received his $700-plus dollars worth.  Employees of large companies like
  Exxon, IBM, AT&T, etc, for many years, have had the opportunity to purchase
  things at large discounts - I remember, that especially cars and major
  appliances were real cheap at Exxon - however, I do not remember that
  such *large* membership fees were required.  I'm really SCEPTICAL about
  any such outfit and would recommend anyone take a real hard look before
  forking over a couple of hundred dollars "in advance"  --  Werner ]