Columbia House
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Columbia House operates a music club and DVD club, and as such is a direct seller of DVD movies and box sets, offering its selections through “club membership” agreements.
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[edit] “Club Membership” and the “Director's Selection” in the DVD Movie “Club”
“Membership” means that both Columbia House and the “member” (or, more clearly, the subscriber) have engaged in a legal contract that gives both sides rights and obligations.
- Columbia House has obligated itself
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- to make its entire catalogue content available to its subscribers and to
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- to routinely inform its subscribers of new movies, every 3 weeks, or approximately 18 times per year via mailings that can be sent, at subscriber's option, either by mail or by e-mail.
- The subscriber has obligated himself or herself
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- to purchasing either 4 movies in one year or four movies in two years, depending upon whether or not he or she has the Director's Selection mailings on or off. The mailings are sent either way, but when it's off, this means that for at least the initial contract duration, the customer does not have to reply to each mailing to decline the Director's Selection. When it's on, the customer is obligated within ten days of having received the mailing, to inform Columbia House by mail, by fax, by e-mail, or -by telephone, as to whether he or she wants to buy the movie at the discounted price or not. In that case, if Columbia House does not hear from the customer in time the movie is dispatched at the regular (and higher, or FULL) price. Once received, if the customer does not want the movie, it can be returned within 10 days at CH's expense for full credit. The customer must, in that case, contact CH and ask for a mailer to be sent so that the item can be returned at CH's expense. This is not always a smooth or easy process, as it can be difficult to reach CH and/or to get them to respond.
[edit] Recurring Problems with Mailings
Customers are obliged to contact Columbia House and ask for a return mailer so that the return mail occurs at Columbia House's expense. Delays and disagreements can occur, as neither side has full control over the delivery time of the Post Office. Unless specially ordered, the method of dispatch is normal post, meaning that no tracking system can be employed for either side to have demonstrable proof of who has done what to comply with the terms of the agreement for each shipment.
[edit] “Preferred Membership”
“Preferred Membership” has typically meant that customers have had long periods of time during which they bought movies and/or music from Columbia House. In some of those cases, the “Director's Selection” has been switched off. However, this is also available during all phone offers received from Columbia House, though it is not typically pre-emptively offered. Telemarketers are directed not to pre-emptively offer disengagement of the Director's Selection.
[edit] “Fun Cash” and “Dividend Dollars”
Columbia House offers a point system, where movies bought result in “points” or “Fun Cash” (“Dividend Dollars” was the term used when the movies came in VHS format, which is no longer the case). Fun Cash does not transfer from one subscription to another. There are a number of restrictions to the use of Fun Cash, which generally make regular re-enrollment a lower cost and more tangible option for those interested in savings.
[edit] Columbia House security breach
In 2001, a security breach in the Columbia House website exposed thousands of customer names, addresses and portions of credit card numbers—leaving private information about customers vulnerable to exploit.[1] The issue involved a particular section of the website, which could easily be accessed by deleting a portion of the website address in the address bar, discovered by customer Mark Alway. Upon the discovery of the breach, he emailed the Columbia House staff who were quick to respond to the problem. This event has naturally given rise to concerns over the website's capability of keeping private information safe and secure from hackers or devastating scams. Although no information was reportedly obtained from the temporary breach according to Columbia House, industry professionals were quick to point out that the simple error was the consequence of negligent behavior towards an issue as important as customer information.
[edit] Common complaints and resolutions
- By far the number one complaint is having missed a mailing, for a variety of reasons, having received a movie and been charged full price. This can be avoided by having the Director's Selection switched off altogether.
- When the Director's Selection is automatically switched back on because time is up on the contract, it is easy enough to cancel out and "re-enroll" (as in re-obligating oneself with a new agreement), then re-starting with the latest starter package, which typically involves a number of free movies in exchange for re-obligating oneself.
- Calling in to Columbia House for any reason, in hopes of reaching a live, English-speaking person in their in-bound call center, can be less than pleasant, difficult, or seemingly impossible at times. Dealing with Columbia House online resolves many, though not all of those issues, though having the Director's Selection switched off helps. Customer Service phone number: 1-800-262-2001
- Paying by credit card and falling behind in one's obligations can result in automatic withdrawals of amounts CH feels are owed without further notice apart from the contents of the agreement. This can be resolved by being on an invoicing basis in the first place and paying by money order, purposely avoiding disclosure of one's banking information. Any automated payments, even just for a single movie, can result in automatic deductions. However, the customer is made aware of this right from the start. If you pay for the first movie by card, this will become the default method of payments, unless the customer makes a change in the method of payment and notifies Columbia House. Also, if one changes accounts with a credit card provider, and still has obligations with Columbia House, the credit card company may be obligated to share the new credit card account number with Columbia House to enable automatic withdrawals, in keeping with the agreement.[citation needed] This can cause considerable friction for some customers. Even a canceled credit card account does not mean that Columbia House is unable to collect moneys Columbia House is owed in accordance with the agreement.
- Several people claim to be billed by Columbia House for a contract they never agreed upon and being bound by a contract they have never given consent to. Sometimes an individual is sent a DVD or movie and automatically enrolled in their membership and its obligations of purchasing the other four DVDs or movies to complete their contract—despite of any acknowledgment of the membership or the consent of the person in question.
Please go to www.bbbmwo.ca to file your complaint.
[edit] Other clubs
Columbia House has made forays into other media besides music and movies. For a few years, Columbia House offered a CD-ROM club, allowing customers to buy computer games. It is now allowing members to buy video games from its site, but thus far has not offered a specific club for this. One can also enter into agreements concerning the regular purchase of "box sets", which are compilations of popular TV series. One agreement, allows customers access to any of Columbia House's products. Everything can be sourced via the company website.
[edit] BMG Takeover
Bertelsmann's BMG now owns Columbia House and has taken over the music club. Columbia House continues to operate under the old name but is a fully owned subsidiary of BMG. In the summer of 2005, the music club celebrated its 50th anniversary.
[edit] External links
- Official U.S. site
- Official Canadian site
- Bad Business Bureau, enter "Columbia House" into search function
- Consumer Advocate Site Numerous complains voiced by people involving Columbia House membership/scams
- CNET Article A CNET article documenting the temporary security breach in the Columbia House website
