Real Deal: Liquidation lesson

Wait until you see Gerry's brand new $1400 television. He shopped and compared and ended up at a liquidation sale where he decided the price was right.
 
Gerry Waino, bought TV
"I thought it was the perfect deal so we bought it."
 
So he got the box home, opened it up, and well look. Yup. The big screen is shattered, ruined and unfixable.
 
Gerry Waino, bought TV
"We were ballistic, we were very, very angry!"
 
Here's the real deal: we found liquidation sales are not always a bargain.
 
Deirdre Cummings, Masspirg
"It's the wild west so to speak for consumers."
 
When the store's in true liquidation it means it's bankrupt and a third party is hired to come in and sell every bit of merchandise they can. The signs go up and they try to convince you the prices are going down.
 
Deirdre Cummings, Masspirg
"The consumer needs to remember that often times that's just hype."
 
So, rule one: first comparison shop.
 
Make sure you know the real price of your potential purchase. And beware of fake markups where liquidators artificially raise the price and then lower it.
 
Deirdre Cummings, Masspirg
"Their sales aren't really in fact sales!"
 
Rule two: open the box before you leave.
 
George Noone bought a home theater system and when he got it home, it was the European version with a plug that was useless in the US! When he tried to exchange it they refused.
 
George Noone, bought home theater
"I thought it was very unfair, I was very upset."
 
And Gerry, of course, took the worthless TV back to the store, because everyone knows they have to take back a defective product, right? Nope. They told him you bought it, you own it, you've got to talk to the manufacturer.
 
Gerry Waino, bought TV
"I was just shocked by that it makes no sense to me!"
 
But Jerry had followed rule number three: always pay with a credit card.
 
He called his credit card company, disputed the charge, and hopes the amount will be erased from his bill. But even so we found that won't always work; because rule four: standard shopping rules may not apply.
 
Regulations for liquidations are set in bankruptcy court rulings like this and they may allow 'as-is' purchases, in which case you're stuck with what you get, and the rules are different for every liquidation.
 
Hank Phillippi Ryan, Investigative Reporter
"How is a buyer supposed to know what the rules are?"
 
Deirdre Cummings, Masspirg
"It is very difficult for a buyer to know what those rules are."
 
Liquidators are required to post their rules and return policies just like any other store, but we know that doesn't always happen. So if you don't see signs that give you the scoop -- make sure you ask before you make your purchase.

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