Rebates >Monsoon >EZ Electronics
$29 Pyramid
DEAR DOG: EZ Electronics’ web site
claims that it provides wholesale
prices, but how on earth could they
sell an Alienware Area-51 PC for
100 dollars? I think you need to
warn readers.
—JOSIAHTHE DOG RESPONDS: An Alienware PC
for $100? An Xbox for $25? A Panasonic
42-inch plasma TV for $200? The Dog
tried to investigate the outrageous
claims by first going to EZ Electronics’
web site (www.ezelectronics.net),
which was temporarily disabled. A
Google search however pointed the
Dog to some functional pages beyond
the home page. It appears that EZ
Electronics asked consumers to pay
for a “report.” According to the web
site: “After purchase of report, you will
recieve (sic) a password to view your
position on the list. When your name
moves into the ‘Next to receive’ box, you’ll be con-
tacted by e-mail to verify shipping info. Enjoy your
free electronics.”
Although it’s not entirely clear how EZ
Electronics operated its business, Robert
FitzPatrick president of PyramidSchemeAlert.org,
said it has the characteristics of a pyramid
scheme—a form of fraud that’s been on the rise
on the Internet.
Whether through “gifting clubs,” a clas-
sic pyramid arrangement, or a straight-line
matrix, someone is going to lose, FitzPatrick
said. You might be promised the opportunity to
recoup your investment plus a handsome profit,
FitzPatrick said, but it’s all just a mirage.
One web site, Cockeyed.com, works out the
numbers based on people who paid $29 to line up
for a laptop from another defunct web site that
offered people a “cheap” deal. If you’re first in
line, you won’t actually get a notebook until 77
people pitch in $29. If you’re the twentieth person
in line, 1,540 need to join before you reap any
rewards. If you’re number 100, 7,700 people must
join. You get the idea. Overall, 98.7 percent of the
people lose their $29.
FitzPatrick said that while most states have
laws against “endless chains,” they’re not a
top priority of law enforcement agencies. The
Internet age has spurred tons of quick-cash sites
that use pyramid schemes to offer notebooks and
other electronics for low prices.
EZ Electronics did respond to two e-mails from
the Dog. In one, an unidentified company rep said:
“EZ Electronics is closed and will never again
reopen. Therefore warning people off has become
a moot point. Problems with our payment process-
ing service as well as other difficulties with com-
puter attacks have rendered the site inoperable...
without the ability to take orders, the system can-
not work. We are proud of the electronics that we
have sent out; though, now that we are processing
full refunds to our customers, those electronics
are coming directly out of pocket. Our intentions
are and were pure. However we are limited by ourmeans, so we have chosen to do the honorable
thing and clear full refunds at our own expense,
rather than the dishonorable thing, which would
be to file bankruptcy and steal money from inno-
cent people (as this would go greatly against my
personal values).”
The anonymous source did not respond to the
Dog’s request for details about how the network
operated. The Dog did receive another e-mail
from a person who identified himself as Michael
Dunteman from Ez-Toyz.com who said: “I am the
contact for the hosting and domain registration.
Ez-Toyz initially held hosting services for several
sites, this site was one of several that were hosted
by the organization. Unbeknownst to Ez-Toyz, the
web site http://www.ezelectronics.net was registered,
paid for, and operated by a minor. Upon that being
brought to the attention of Ez-Toyz, via customer
complaints, the site was removed and the domain
has been maintained for the sole purpose of allow-
ing customers to contact the company for refunds.
“I cannot offer any further insight, as I do not
have that information at my disposal. Thank you
for your understanding. Please refer any cus-
tomer inquiries to [email protected] so as to
ensure prompt refunds.
“The site for EZ Electronics will not reopen on
Ez-Toyz hosting at any time in the future. This user
violated our user agreement... in the interest of
ensuring that the customers of that site receive their
due refunds, we will only host the site for e-mail
purposes and not for any new sales. Thank you for
bringing the page to our attention. We will ensure
that the posting information for the site is changed.”
Well that clears things up a bit. nEZ Electronics offered such things as an Alienware
PC for $100 and a Microsoft Xbox for $25 if
consumers paid for the privilege of being on the
product waiting lists.Got a bone to pick with a vendor? Been spiked
by a fly-by-night operation? Sic The Dog on
them by writing [email protected].
The Dog promises to get to as many letters as
possible, but only has four paws to work with.