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Don't Buy MDG: They Scam You

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kylo4

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One of the posts at epinions states that they tried to sell a laptop that they say "the battery is not included and is extra." Another person stated the same thing. They put the oldest chips and hardware in your machine. My family was conned by the illegal "bait and switch tactic". We were advertised one thing and went in and told it wasn't good, and so we ended up leaving (we knew nothing about computers at the time) with a machine that was $1000 more (my parents paid $2000) for a machine that isn't even as good as the $1400 iMac, and we all know Macs are a couple hundred more expensive than PC's.

If you go on their website, it states that their computers have "lifespans" some of which, 4 years, would be of equal value to an iPod or Playstation 2. The link is below.

Here's the link: http://www.mdg.ca/en/products/desktops/

They advise anyone who was conned to contact the Better Business Bureau of Canada or file a lawsuit. They are Canadian operated so anyone can contact the BBB.

I also found out the drivers on this computer are from 2001, and we bought the computer in September 2006, and it has Microsoft Word 2003. How can I update the drivers? Apparently I can't because its too old. They put old parts in the computer. With a 1.86ghz Core2duo processor, 1GB of ram, iTunes songs still freeze when using coverflow. Wow.

Here is a story from an actual employee there. Everything he said matched my experience. What upsets me the most out of all of this is that every day there are people just like my family being conned, and whether or not you believe that the following guy is a real employee, everything he says is true nonetheless.



MDG has a Scam

I am an MDG employee. I am one of the few that work there and also have a conscience. I hate my job and will be quitting soon once I can find one of similar pay, but I feel it is necessary to inform customers of what is really going on with this computer retailer.
I have been working at MDG for a little over 3 years and have seen all the scams. I will attempt to explain how they work and how you the consumer need to know and report them if you think your a victim of it.
I am not bitter at the computer industry nor do I hate my boss or have any vendetta against the company other then they are ripping people off. You may have seen ads for computers on TV, in the newspaper, and on the radio.
All MDG advertisements prey on customer lack of knowledge of both computer hardware and knowledge of hardware pricing. You will get several different ads and compare them, the thing most don’t see is what is omitted or what is purposely included specifically to draw your eye into having something that the competitor doesn’t have. I’m sure Futureshop Staples and a bunch of other guys do it too. That part isn’t illegal as far a I know.
So now you decide that an MDG computer seems to be a good deal so you try to get one.
There are 3 lines of computers that MDG sells

Horizon
Vision
Apton

Profit on these systems are starting at different levels so your salesperson will treat you differently depending on what you are looking for, Remember all MDG sales persons are commissioned so they often feel that wanting an inexpensive system means you are not worth their time and effort. Sometimes they will even try to convince you they are non-commissioned. It’s a lie.

Lets do TV first.
You call in and ask for a TV system (it doesn’t matter what model it is they all have scams)
First you can’t get any newspaper systems or systems advertised on their website except if it is meant to be sold as a “TV” system. This is because the TV systems are quite a lot more money. But they do offer financing.
The salesperson you are talking to has one job only. Generate revenue while giving the appearance that the customer is getting a good deal. All financing is rated at 28.9% and there is also a financing fee on top. This financing fee is based on the amount of loss the salesperson may expect to lose. I’ve heard as much as $300 and as low as $100 plus there is a shipping fee also that can be the same range. So expect to pay a couple hundred more then advertised in fees just to get the computer. If you say you will credit card they will add 3% for a little extra profit or sometimes if the system is low margin then they will say financing is the only option available. If you mention cash or check certified or whatever you will just start to get transferred around till you give up.
Now if you call and want a bunch of upgrades then they may be nicer to you. Antivirus, floppy drive, more ram, and what ever else you want will all be sold at super high markups. If an OEM antivirus is normally retailed at $12 they will sell it for $49 or more. And then they may actually try to help you if the overpriced upgrade can cover the loss of the advertised systems.
Just so everyone knows
Horizon is normally below cost.
Vision is about zero cost
Apton is normally above cost
With every system they will try to sell upgrades and accessories to improve their profits.

None of this is illegal unless they play the transfer game till you give up.

I’ve even heard of salespeople taking all the info as though they are going to sell the PC to you and just never put the order in. If you call to check, there will be no record and you will have to start all over. (Most just give up).
Bear in mind that MDG wants to sell computers and most people use financing and pay shipping and buy a bunch of overpriced upgrades and they pay a ridiculous price that after everything is finished is normally 2X more expensive then other big boxed retailers. That’s how MDG makes their money and why they won’t stop doing it.
You can probably also understand how it would be difficult to police this type of sales tactic since its something very hard to prove one customer at a time.

Next is retail.
Retail in store computers is 99% person to person. Almost never phone sales. That is unless it is an Apton system or something with very high profit.
It is hard to summarize all the scams in a few words but ill try.
First the upgrades:
Processor is advertised as a 3.4 Pentium or something like that and a free upgrade to a Duel core processor. So they will give you the slowest duel core processor available at the time 2.8, 3.0 are the 2 MDG are currently using depending on stock. MDG doesn’t even carry any 3.6 Hyperthred processor and the Duel core verson is about $800 more and you won’t get one no matter what. Some of the stores have been known to give a D processor witch most don’t know is a Celeron D at 2.8-3.4 or what ever they feel like. If you bought a PC from MDG check that first and call Consumer affairs first before complaining to MDG. They will simply pretend it was a mistake and give you the lower end Duel core. But most people don’t even know they are getting screwed. Morality plays no part in MDG just $$$ they will often try to please the 2 customers after ripping off the last 50, its all a numbers game.
Ram is often upgraded too; the sales person will always try to talk you out of it though. He will say the upgrade is lower end ram or its much slower or something like that. As an example the ad says 1GB DDR 2 MEMORY free upgrade to 2GB. The sales person will say the 2GB is DDR 1 ram it is older and not as fast. (Saving the company money plus you don’t get that upgrade you walked in expecting to get) or the 2GB RAM is 266MHz speed and the 1GB is 533 MHz so the 1GB is faster. Or sometimes it will be explained that the 1GB is Brand name Ram like Kingston but the 2GB is just generic. This is all just a way to draw you in from advertisements and then screw ya when you get in the door. You the customer would expect to get the same type of ram as the original but that is never the case.
It goes on like that for almost all the upgrades.
The 19” or 20” monitor is generic or only has a short warranty, but this 17” or what ever is cheaper for the store is better so buy that one instead. (saving the store about $100.)
The 250GB hard drive is faster then the upgraded 500GB or the 500GB is generic but the 250GB is brand name.
It has a High speed DVD burner but is not compatible with certain media so upgrade for $ to one that is more compatible. (both are the same drive)
Free Printer after Rebate. The sales person will tell you it doesn’t come with INK so you can upgrade for more $. (Good luck on getting the rebate back) Always read the rebate paper before leaving. We are often told to give out expired rebates. Only 1 out of 100 customers would call us about it after they left.
The sales person will use every angle they have to stop you from getting the upgrades and will always encourage you to buy extras instead.

By the end of the deal 80-90% of customers would be buying a computer that has swapped parts and is ridiculously over priced. Of those customers there would be only 1 or 2 out of a hundred that we scammed would complain. If there was a complaint the salesperson or manager would try to work an angle to not lose any money. Only if they felt it would result in a complaint to better business bureau or consumer affairs will they then give in.

There are many more scams too but it would take forever to list them all. I will monitor this forum and give feedback if necessary. I’m not trying to hurt MDG as a retailer. I just want them to clean up there act so I can sleep with a clean conscience at night. I am no saint and have been part of this company for a long time so feel free to hate me. I do regret being part of it but we all have to eat don’t we.
 
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kylo4

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I discussed this in another thread and this deserves its own.

I'm not that happy with this computer, mainly because the salesman completely ripped us off $1000. Then I go to the website and it said the lifespan for this computer is 4 years. 4 years? 4 years? The Pentium 2 is still working (better everyday now that I'm cleaning out the spyware) since 1998. It's almost 10 years old. My PS2 is nearly 5. That's garbage if they say it lasts 4 years. It should last for 6 or 7 at the least. It's not a $1800 disposable product. It does not run on a lithium battery like an iPod. That's lame.

Here's the link: http://www.mdg.ca/en/products/desktops/

I have the vision. Mind you it has half those features and ended up costing around $2000 because of that snaky salesman who is a complete liar and conned us because they don't care about the customers, only their commission. Like telling us we didn't need a big HD because songs for your iPod don't stay on the computer. Or that 1GB of ram is better than 2 because 1GB runs smoother. He is so full of crap. Because I knew about 2% about computers then it annoys me now that I know probably more than he does.

The $200 warranty they con you into buying is absolute garbage too. It states on there "any spyware, shareware, malware, trojans or third party software that damage your computer will not be fixed." Everything is a third party software product down to the mouse! Then in small print it says they will choose what they want to fix. Bunch of con artists.

Well apparently MDG is the top seller in Canada. Apparently. They have 28 locations around Canada and were founded in 1991. Friends of mine recommended them and I wish they hadn't. I really hate that place for what it did. Even car salesman have more integrity than conning you out of an offer like they did. You trust that that person is knowledgeable and will help you, and want the original sale, not to actually lie to your face. There is a site I found today with hundreds of complaints, some similar to mine. I didn't even pay for the computer, my parents did, and I can only imagine how upset they are.

I just found a new site, check out the first two posts to get the drift: http://www.epinions.com/msg/show_~th...ms/pp_~6#posts

I just found this in my warranty:

Warranty Information

All hardware provided by and installed by
MDG Computers Ltd
is covered for ONE (1) YEAR parts and THREE (3) YEAR labour
from the date of purchase, verified by your invoice.
Please supply a copy of your invoice should warranty service
be required.

Warranty of Operating System Software or other software sold
and installed by "MDG Computers Ltd" is limited to the
replacement and/or original installation of that software.

Subsequent software configuration errors and/or conflicts are
the sole responsibility of the purchaser and are not covered
under warranty.

Physical hardware damage and/or damage caused by DUST build-up
is NOT a Manufacturer's defect, and not covered under warranty.

Registration and Activation of MS WINDOWS and MS WORD is the
responsibility of the purchaser.
 
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pohatu771

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Warranties are rarely a deal. My girlfriend was buying a mouse for her computer, and when she went to pay (at RadioShack), the salesman asked which warranty she wanted. I had walked away. They got an extra $3 out of her because she didn't know that "none" was an option.

In related news, Logitech has a warranty of their own. I don't know how long it is, but I'm sure it's at least one year.
 
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kylo4

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Just thought I'd mention that I *just* noticed now that those dingbats installed the front usb ports/headphone jack UPSIDE DOWN. Wth is wrong with them? That is a terrible mistake. My parents might sue them for the price of the computer.

pohatu, explain this: They sell you a printer with a rebate, but the rebate is actually months expired! Tell me they can't be sued for that, or for lying to your face. I personally am contacting Peter Silverman from City News and the newspaper to stop advertising them. I strongly believe if you read some of the shorter posts (I realize my post was a lot of reading, I apologize) you will see they are big scammers.

That warranty was for parts and labour and for a replacement. Would you opt out on on for your iPod if it broke once in the first year? (I don't have applecare but might get it)
 

pohatu771

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I didn't say they were right... I actually said nothing about them at all. I mentioned RadioShack.
 

kylo4

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I apologize for making it sound like I argued, when I reread it, it sounded that way. What I intended was to just use you username to say something to you. I apologize for the confusion. It is still hard for me to pick up on cues here too you know :)
 

mrdantownsend

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The sad thing is that they probably get away with it with about 90% of their customers, because hardly anyone knows better.

Definitely contact the local paper, and if you have a local Arnold Diaz type of guy, report it there too.
 

pohatu771

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I've never seen anyone tell you how long their products last- especially if they're short times.

Food is about the only thing where a manufacturer gives you a timeframe.
 

kylo4

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Thanks for all of the responses everybody, It's interesting to read that some of you have had problems as well.

I haven't properly typed out what I want to say but rest assured it will be literate and obscenity free, (everything I generally write an article on is)

I talked my parents into seriously taking them into small court for the cost of the computer (they can have it back, I don't care) because they did an illegal term called "bait & switch".

They also advertise in their fliers (now) that you can get a free x-box 360 with any desktop or laptop+ model. None of which are advertised in the flier but that statement is written on every page.

I'd also like to state if I hadn't before that they installed the usb and headphone ports on the front upside down. I don't know what techs would do that unless they aren't qaulified.

A friend of mine noticed that also on their website, they guarantee "health benefits" from buying their computer. Nope, it has nothing to do with getting a job there, it has to do with "no strain on the eye from looking at the monitor".

I'd also appreciate if any of you could Digg this: the link is in my sig.
 

papayaninja

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kylo4 said:
I'd also like to state if I hadn't before that they installed the usb and headphone ports on the front upside down. I don't know what techs would do that unless they aren't qaulified.
I'm not sure what the big deal about that is... Just flip the USB cable over and you're all set.
 
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LukeA

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papayaninja said:
kylo4 said:
I'd also like to state if I hadn't before that they installed the usb and headphone ports on the front upside down. I don't know what techs would do that unless they aren't qaulified.
I'm not sure what the big deal about that is... Just flip the USB cable over and you're all set.
The USB standard has something to do with the USB symbol on the connector facing up.
 
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kylo4

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papaya, sure I can flip it over but they installed the entire thing upside down and the pictures on the front are upside down as well. Its annoying and the apple cable twists because its upside down. It wasn't installed properly. The part inside the computer is literally upside down! The mic and headphone pics on the black part on the front are upside down! We're getting them to redo it but then they might switch parts or do something else stupid. Like put a usb 1 port instead.

Apple cable, what should be facing up? Apple logo or usb connector icon.
 
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papayaninja

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kylo4 said:
papaya, sure I can flip it over but they installed the entire thing upside down and the pictures on the front are upside down as well. Its annoying and the apple cable twists because its upside down. It wasn't installed properly. The part inside the computer is literally upside down! The mic and headphone pics on the black part on the front are upside down! We're getting them to redo it but then they might switch parts or do something else stupid. Like put a usb 1 port instead.

Apple cable, what should be facing up? Apple logo or usb connector icon.

Who cares? If it plugs in and it works it's fine with me. I guess I can see what you mean about an annoyance, but that aspect at least isn't something to sue them over. Heck, just use Firewire :D
 
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