Bad Customer Experience from COSTCO on XBOX ONE Purchase.

  • Bought Xbox One from Costco on 21st November 2013.

  • Items missing in box went back got a refund, as I was advised they could not sell Console on the 21st November 2013 after they already done so.

  • I was advised I could pay and pickup a console on Friday 22nd November 2013 & that one will be held for me till 25th November 2013 as I could not make it before then.

  • Called Microsoft and told them items missing, in box, and they just said write a letter to U.S. Microsoft Corporation about the early sale of the Xbox One which I wasn't interested in doing.

  • Annoyed at Microsoft as they don't allow email contact or contact in Australia you have to post a letter, which I found odd.

  • Went and picked up pre order on 21st Nov 2013 from EB Games for Assassins Creed Black Flag Buccaneer Edition I looked frustrated guy asked me what happened and I told him at Campbelltown EB, not showing any receipt that I had been sold a console early, as I got refund.

  • I went today to COSTCO to pickup the Xbox One was advised they cannot sell it to me as they blocked my membership to only purchase this item as I advised EB Games Ryde or Parramatta that I got console early and I was apparently flashing a receipt in front of them, no where near Campbelltown where I actually went.

  • I was advised a Buyer will call me today to discuss issue with me, no contact made at all.

  • Will chat to this Buyer person when they call me as to why I couldn't purchase the console, I found that really weird, I wasn't advised I could not talk to anyone it was top secret to talk about my bad experience.

  • Went and bought Xbox One from Harvey Norman & Just move on… :o)

Sorry about long post before, boy was I frustrated! 90min drive return and no console…

Related Stores

Costco Wholesale
Costco Wholesale

Comments

  • +78

    Wow that was difficult to read…

    • +13

      I gave up at On

    • Yeah, can't believe how many people don't know how to write a sentence.
      I gave up after trying to read one point about 3 times to work out what the f he was trying to say!

      • +2

        I read the whole thing, but still didn't get wtf the person is trying to say?!?!

        3 mins of life wasted that I will never get back…

  • So what's the problem now? They wont give you the missing items?

  • +2

    Never have had an experince like this with a SONY product

    To be fair, Microsoft had nothing to do with it, except the possibility of the missing items in the box. I disagree with them not selling you the console just because you told an EB Games' employee about it.

    Call or write a letter to head office.

  • +17

    Why did you go to Costco the day before release to buy one?

    Also I see you're new here, so I'll give you some advice: if you don't take the time to make your post comprehensible, few here will be able to give you the advice you want.

    • +5

      I concur.

      I think you need to do the following things:
      1) what is the result you actually want? you already received a reasonable result from Costco and yet you complained again to eb games and microsoft which got you in further trouble. And you are asking in ozbargain for different avenues to complain again.
      It's like you are just looking for sympathy.

      2) apologize and ask for your membership to be unblocked.

  • +1

    Sucks, hope you got your money back,

    Screw the Xbox and buy a PS4, trade in your Xbox One game for a PS4 version and forget about this whole experience.

    Buy a Xbox One next year when TitanFall and Halo come out.

  • +1

    Sorry guys I was just annoyed and frustrated that I drove out and they wouldn't allow me to purchase a console.. all sorted found a fifa edition at Harvey Norman so bought it and its all there.. time to play =)

  • +10

    Bought Xbox One from Costco on 21st November 2013. = you purposely went before release day and bought something you knew wasnt for sale then complained to MS and Costco i guess hoping to get something out of it?

    what items were missing? I just got mine from Auburn Costco, the boxes are all sealed. twice in fact, over the FIFA slide on cover.

    where did you pickup the xbox from and how did the process work? curious, because a lot of what you are writing sounds like shit.

  • Yes box was sealed twice over, tampering looked evident and manager saw that and no I didnt purposely go to costco just to purchase an xbox one that I didn't even know they stock, I had gone to purchase other items. I asked a sales assistant will they be selling it they said yes and sold the item on their own account after asking management, at no time did I beg for this item to be sold to me on that day.

    I'm curious about your box being sealed twice over and no tampering when management advised me they openned all twenty units that had been delivered to them.

    Also if you went today, you know the xbox one is not on display it is only a A4 page saying see a staff member for this item.

    Once you pay for the item you pick it up at collections.

    It had no kineckt sensor which is a large item and controller which is also a large item also the fifa download card was not handed to me.

    Both items are normally console locked or traceable as per serial numbers on box as you purchased one today you'll notice on the box it has serial numbers for these items clearly written they are useless without console.

    • +4

      From your post, Costco not selling the Xbox One to you was their revenge to you for informing EB Games that they sold you one early. It was nice of them to allow you to purchase it a day early, and it probably got them into a little bit of trouble as it sounds like EB had complained it.

      Went and bought Xbox One from Harvey Norman & Just move on… :o)

      Good for you, that's what I would have done.

    • neither items are console locked. You actually get a ticket from someone in the game console area, they write the item ID/code on it and when you check out you pay for it then go to the pickup window and get it.

      You get given a sealed console, plus an additional Fifa 2014 cardboard redemption code.

      Odd you say kinect wasn't in the box, it's heavier than the console pretty much. I call bs on all of this.

      'then I went and told EB that Costco broke street date embargo'

      • I have been to Costco on many occasions I have never seen dedicated staff around the games area, this is new and a manager wrote the ID/ code down for the registers or else how would I have paid. =)

  • +2

    It's a bit crap that they blocked your membership. Because ultimately Costco did the wrong thing by selling early. I'd be asking for a full refund on your membership.

    But, god forbid you are able to play a game early. Scandalous. First world problems.

    • "It's a bit crap that they blocked your membership"

      how would Costco be able to narrow down OPs membership number/ID by being told by a third party EB store that they broke the embargo?

      nothing in this thread is legit, it's all bullshite.

      • -5

        Its called common sense, if they have only sold one console early like in this situation it doesn't take Einstein to figure out a membership number.

        Also you say the kineckt is heavier than the console, so when you picked up your unit you knew exactly how much it weighed and you could tell if something was off without opening it?

        By the way find it funny I got worked up because I was in the situation your jumping up and down screaming bs reading my post, love to see you in the situation one day =)

        Chereos Mate..

        • how do you know that if they sold one to you, they didn't sell one to millions?

          I went there today - no signs up - i had to ask.

          it seems from this you tried to extract compensation from Costco, DENIED. From MS, DENIED. From EB? DENIED

        • -2

          Because clearly the manager advised this on thursday when it was refunded only one sold.

          You might want to use glasses next time you go, I went in 10am when they opened and right next to the xbox 360 250gb there was a laminated sign up for xbox one advising to ask staff assistance with this item and a code on it.

          Ohh and like you advised earlier if no signs up how did you even know they sold them, dejavu exactly what I done on thursday…ask.

          Compensation for what? =s if I wanted compensation I wouldn't of let them refund the one I purchased and make a you tube video for everyone to see that I got one in Aus before anyone else.. Also not go back to purchase one.. are you like PR for Costco.. sounds like it.. have a good one champ..

        • +3

          that's BS… or maybe i need my eyesight fixed as well.

          i was at costco auburn on FRI, and the only thing out of the normal day to day that i could notice was there was no frigging parking in the centre. i had to park at bunnings which sheets me….

          BUT… in store, i can honestly say i did NOT notice any big sign of people dancing around the new XBOX ONE —- heck, only now do i realise why it might have been so busy.

    • Absolutely.

      Costco should've behaved a bit more maturely. If they did him a favour by selling it early, maybe they shouldve requested that he keep it on the "down-low".

  • +15

    It took me a few reads of that, it's not very clear but it sounds like:

    1. COSTCO sells Xbone to you early.
    2. Xbone has missing items from the box.
    3. COSTCO gives you a refund but won't give you another early one. They will put one aside for you to sell when launched.
    4. You dob them in to Microsoft and an EB Games store for selling it early, but don't provide any proof.
    5. Go back to COSTCO after launch date and they refuse to sell you the one they set aside for you.
    6. They claim that someone dobbed them in by showing their receipt to an EB Games store (separate store to the one you actually told, and you didn't show your receipt to the one you did tell either).
    7. COSTCO have blocked your membership (Because they have presumed that you were the one who dobbed them in)
    8. COSTCO promised to have one of their staff call you about the incident which they didn't do, and threatened you not to tell anyone about what they have done.
    9. You bought an Xbone from Harvey Norman instead.
    10. You are also frustrated that you have made three 90 minute return trips to COSTCO in this ordeal (4.5 hrs total travel time wasted + time in store)… Trip 1: Original Purchase + Trip 2: Return Item + Trip 3: Refuse to sell new one

    If this is correct, then it sounds like there are some very serious issues with COSTCO:

    1. Doing the wrong thing (Selling Xbone early) in the first place
    2. Taking revenge on a customer by banning them from their store for their mistake.
    3. Basing their ban on hearsay evidence which could have originated from another COSTCO customer who also got an early Xbone. Even if it did come from you, they have no right to ban customers for it.
    4. No refund on your COSTCO membership which they banned.
    5. Attempted censorship of bad experience by use of threats
    6. Not calling customer back when promised
    7. Possible loss of membership benefits tied to other purchases (eg: Extended Warranties) - Tied to blocked membership
    8. Possible loss of future savings by not being allowed to shop at their store - as membership blocked
    9. Wasted time in dealing with them and travel time to/from the store
    10. No compensation from the store for wasting your time to such a high degree and all these shonky practices.

    Lucky we don't live in America, otherwise you could sue them for $2,000,000 for all they pain and suffering they have caused.

    But still, I agree that you have been wronged, they should be shamed, and you should be made right.

    I know that Today Tonight/ACA thrive off these things… damn parasites… but could still be to your benefit. There is also Fair Trading who may be able to help, and a formal complaint to Microsoft (not that it is their fault, but their brand has been implicated and they have a relationship with COSTCO - which looks bad on them for authorising a company with shonky practices to sell their product).

    • +2

      I don't think they banned his membership. Just blocked his membership from purchasing another Xbox One.

    • +2

      Hi The Land of Smeg,

      The author has significantly changed his whole description. However, note that it was implied that he was the only person that managed to get a hold on the product as Costco doesnt normally allow a hold.

      Note as well that the membership was blocked (further to discussions with a 'buyer') not banned. That is a significant difference.

      As an Ozbargainer, I have received significant deals. Some of them were mistakes made by the sellers. Some sellers on good faith accepted the transaction, some sellers rescind the transaction (which is not in contradiction with the Trade Practice Act/Fair Trading).

      I believe we win some, and will lose some. If you are an experienced Ozbargainer, you will understand that. Your comments are pretty unreasonable, exaggerated and not proportion to the issue at hand here.

      I would like retailers to see that Ozbargainers are deal hunters but are also reasonable and nice to deal with.

      • +1

        I absolutely agree. I'm not going to fight over a few pennies and I'm understanding when mistakes are made. For example, items missing from the box is something I would be understanding about (as long as they made it right eg: repair/replacement). My assessments are based on the understanding that they blocked/banned him that they store - the OP is not very clear in his rumblings.

        If they did block him from purchasing from the store completely, I don't think that he is entitled to large amounts of money (as people do when they sue in the United States), but I do believe that he deserves to be compensated for such a monumental stuff up (eg: Gift card), that is not something I would let slide.

        If they did not block him from purchasing from the store completely, just from that particular purchase, it is not nearly as bad. BUT, it is still very nasty of them to trick the OP into coming back to the store and then refuse the sale, and I do not believe that they had grounds to refuse the sale (as it was really their mistake in the first place).

        On the flip side, regardless if COSTCO found out about their mistake from the OP's purchase or from another customers' purchase, I don't think that it is very nice for the purchaser to make or attempt to make some noise (especially to the manufacturer and competitors) about the fact that they got it early. COSTCO was doing their purchasers a FAVOUR, they do not deserved to be reported for it - but still not grounds to refuse a sale.

        • Hi

          From your last message, I don't think you are unreasonable. I personally think that the main problem is with the buyer.

          It seems like he just wants to complain. I think there are only a few good reasons you should make a complain, which includes but are not limited to:
          1) You have suffered emotional pain and you need to release that pain.
          2) You want to attain a benefit.
          3) You would like to provide constructive feedback.

          Once you know why you want to complain, then you need to determine what are the outcomes that are satisfactory. This author has done none of the above.

          The other thing to consider is where the shop is. It is not a Myer or David Jones. Costco is like as a 2 dollar shop but sell premium stuff at a really cheap price. Like TPG, Exetel….

          So dont expect too much

        • +1

          Thanks for deciphering land of smeg!! much easier to read then op lol

    • +1

      Someone should just edit your post into the top, everything clarified!

  • Interesting that you were able to get one early, that could have been a costly mistake there - FAR more costly than loosing your business.

    I have a mate who is a manager of a local EB Games, he says that the fines are pretty huge for selling games/consoles before their release date, and that it's not uncommon to have stock of those items out the back for a week or so.

    From what I can find, some sellers were fined $2,000 per game sold before the release date when Pokemon X&Y was released earlier this year. I don't really want to know what the penalty for selling an XBox One early would be.

    • I doubt this is true, in Australia there are no LAWS against this and contract laws generally don't allow provisions for any "fees" which can be construed as being a fine. It might affect future business dealings (Microsoft would not want to sell to COSTCO anymore, or maybe not as good business terms or prices) but they can not issue fines.

      • +3

        It is not uncommon for a breach of contract to come with monetary penalties that can be construed as "fines". Returning your video late would be an easy example.

        • +1

          Those are called 'liquidated damages' which is an approximation of loss and has to be reasonable. So if you failed to return a video, then the store loses on possible revenue from renting out the movie again. So it's reasonable they charge you a fee for doing so.

          If on the other hand the video store charged you $40 a night, then it would be an artbitrary fee and would be considered a penalty. These aren't illegal, just not enforcable.

        • I can see you're quite an expert in this area. What if EB games corporate fines its franchisees?

          EB games in one place sells game/system early. A close EB games loses sales as a result.

          Or perhaps you can suggest any practical reason why the entire world sticks to sale embargos if there was no penalty for selling a game early.

        • As mentioned there ARE pentalties for business to business contracts. Businesses are capable of forming contracts between themselves on terms they feel fair. So they can have penalty clauses.

          So if they are charged $2,000 for every game on embargo they sell then they can be sued for it.

        • Ok, the only reference that you've made to penalties is that they're "not enforceable", but also say that they "can be sued for it" I'm pretty confused by your multiple answers.

        • The "fine/penalty" was "not enforcable", but if the business enters into a legally-binding contract with such clauses, they "can be sued" for breaching that contract if they don't pay the remedies they agreed to in the contract.

        • What's the difference between a "fine/penalty" and a "remedy"?

        • A fine/penalty is not enforceable if the contract is a consumer contract. They are if the contract is between 2 businesses (or more equal parties) then penalty clauses can be enforced and you can sue for damages (the remedy).

        • I'm not completely confident in these 3 varying viewpoints here, and it's been years since I did contracts at uni.

          I'll just assume that something bad happens if you break embargos, otherwise people would break emarbgos.

      • They do when it's business. Penalty fees vs liquidated damages applies more in consumer type contracts.

        • Wrong wrong wrong. So many people here type without knowing what they are talking about.

        • Right right right. So many people here type without knowing what they are talking about.

        • I shouldn't be so mocking.

          The changes in this area is fairly recent - See Ringrow Pty Ltd v BP Australia Pty Ltd from 2005 which dicussed proportionality which is a new concept in the award of damages into Australian law.

        • "Where a pre-agreed amount is to be paid in compensation, such as LDs for delay, then that amount must be a genuine pre-estimate of loss. If not, it is likely to be a penalty and therefore unenforceable." - http://www.dlapiper.com/australia/contractual-penalties/

        • Go read the case in context not just quoted excerpts from a case about consumer penalty clauses. I'm not going to hold your hand to do it.

          But as I've said above, contracts such as consumer contracts can't have penalty clauses which is all the ANZ case reaffirms. I never denied that and said as much above.

          Basically the case indicates (as well as other cases) there's a sliding scale for these things. Business to business contracts are much more likely to be acceptable as penalties and B2C contracts as demonstated by the case you provided above. In a business to business situation, the proportionality rule means it needs to be all out of proportion and it's not as simple as saying "hey that's a penalty clause". What is all out of proportion in a B2C contract may be a very different thing then a B2B contract.

          The courts particularly dislike getting involved in B2B contracts with these sorts of clauses because they are considered bargaining equals in the contract and can agree to all sorts of things where as in a B2C contract, the consumer has little to no bargaining power and as the business can dictate terms, then the courts are willing to consider penalties much more freely.

          Edit: You also selectively left out the following from your link " 'penalty must be judged 'extravagant and unconscionable in amount'. It is not enough that it should be lacking in proportion. It must be 'out of all proportion'.'". Which backs up what I've been saying. The sliding scale for a business is completely different to what it is for a consumer. All out of proporition is a huge test to apply and when two parties are dealing with large sums of money and damages what is 'out of all proportion' is (and I loath to use this word) proportionate.

  • +1

    From what I know about MS from work (not related to the game industry though).

    This call product EMBARGO. Goods are shipped but it are strictly not allowed to be displayed, sometimes even promoted, and sold before a very specific time. It would be listed as detail contractual terms between MS and all its supply chain and of course the retail shop. Any violation of this terms, MS has every right to claim a sizable damage from the offending party.

    In your case, COSTCO made a huge mistake by selling XBox One before the embargo, and it seems they are trying to do whatever as it have never happened. This pretty much tell you how much it is at stake. It is not just "one unit sold before embrago". It is a huge bleach of contact terms, with MS.

    That explains the denial of the sale from COSTCO, the promise of a call back which never happened (And if they did call you back , one would only imagine it would be a secret deal being offered to you to shut you up), and MS and EB make a big fuss about it. Everyone you talked to regarding this matter fuel the saga and believe me, people will get sacked and there would be blood.

    Itsn't it wonder to be in such a drama?

    Now back to reality and starting playing some awesome games.

  • +2

    So I just got a call back from the manager that refused to sell me the item yesterday just now.

    She advised error on their behalf she appologised and said no ban you can come in and purchase this product today.

    I also advised I couldn't sit around for a buyer to call me and went and bought it at Harvey Norman and paid extra for ext warranty that costco offer on membership.

    She advised to go get a refund and purchase from Costco which obviously I will not do now.

    She also advised the buyer will call me today and explain himself for what he did with my membership so lets see what he has to say.

    Clearly advised not impressed and Costco will get a written complaint for the service I received.

    • +21

      Paid extra for warranty !?!
      What sort of Ozbargainer pays extra for warranty when the Australian Consumer Law covers it.

      • He bought from Harvey Norman. Nuff said.

      • The kind that can't string a coherent sentence together.

  • How much was the Xbox One at Costco?

  • $579.99 at costco.. consumer law last time it took me 3 weeks to sort out issue with ps3… instant swap if fault evident is worth a few extra bucks I guess.. especially for xbox one cd drive issue and green screen of death…

    • I see you have had an experience with consumer law.. I don't want to go off topic but would you be willing to give me advice on my latest post? Much appreciated.

  • -2

    Given what people have said about embargo's, Costco should be kissing your ass. Hope you kept the original receipt. It's your bargaining tool with Costco - go for a freebie (or ten) LOL. It's not blackmail, you are doing them a favour in the long run. Hehe.

    • +2

      You must be joking!

      To be honest, Costco will just ignore any fines proposed by Microsoft. In addition to that, they can argue that they promptly resolved the issue by taking back product.

      Instead of having a blackmail stance, you should always use a goodwill stance. Each store manager probably has a goodwill limit they can offer.

      Talk nicely, talk gently and never threaten. If it doesn't work, then you ask yourself how much time will it take to get what you want. If you think it is worthwhile, then you file a written complaint.

      For example, Myer didn't want to price match and told me to buy it from David Jones. I wrote an email and they post it straight away. Or just post on their facebook.

      • You think Costco would just ignore any fines imposed/proposed by Microsoft? Then what, Microsoft refuses to allow them to purchase any future consoles/games?
        Surely that wouldn't work too well

  • +10

    What a terribad thread.

    Costco have one of the BEST return policies in the industry, and yes perhaps they made a mistake and sold you a console early - but they accepted the refund!
    WTF more do you want?

    A lot of people don't understand that a shop is a business and the relationship goes BOTH ways - you have the right not to shop at a store just as they have a right not to serve you at the store. If you are proving to be worth less than the potential profit you may/will bring then they are well within their rights to ban you.

    Crying to Microsoft and EB to try and get some form of compensation is such a petty act; Why would Costco owe you any compensation whatsoever? Yes, they might give you something out of goodwill but there is NOTHING they owe you after offering a refund.

    • +1

      Agree with fatal here. Costco made a mistake by selling it to you early, but you did get the console early. Items were incomplete so when you took it back they realized their mistake and offered a refund.

      First world problems. People from other parts of the world like those devastated from the latest typhoon don't even have a proper house to sleep tonight. *SMH.

      If the items were complete would you have posted and complained here at all? (Probably you would be ranting about these disc read errors.)

  • …. hard to read as…

    you purchased it on the 21st…
    missing items
    got a refund same day? (i presumed)…

    you upset because you couldnt repurchase - hence your 'bad customer experience'
    … what if the original sale was an error - FYI companies get fined/lose financial backing for breaking street dates.

    if they took back the unit then i'd say thats a win.
    there's plenty of places you can still get a xbox one

    "Went and bought Xbox One from Harvey Norman & Just move on… :o)
    Sorry about long post before, boy was I frustrated! 90min drive return and no console…"

    so did you get a console from HN or not? ….:\

  • Hey spoonmugen yeh I got one from HN.. I know three people with disc read errors already with the console, anyone having an issue with it? Mines working fine for now… (",)

  • +2

    3 mins of my life I'm not getting back!

  • When my mate went into Costco to get an Xbox all the sales staff he dealt with could say was "lol wrong choice get a ps4"

    They are not very professional in Costco

    • Personally i find sales staff nowadays to be late teenagers to 25. To save costs.
      Therefore I normally take their word as a grain of salt.

      Please do not let this thread be another ps4 vs xbox one debate! Most of you would already know which one is superior.

  • -2

    This is not relevant to Costco but my son picked up his Xbox One console on the release day. It was a pre-order. Took it home, hooked it up and……nothing happened.

    He attempted to load the initial update and 15 hours later……….still nothing.

    Returned the console to the retailer thinking it was faulty and was given a replacement. Took it home, set it up and…..it took 4 hours for the initial update but at least it did the update.

    Placed a game disc into the drive and………….nothing happened. Reboot, tried again. Nothing! Reboot again, placed the game disc in and 5 hours later…..still nothing.

    I returned the console to the retailer and got a full refund.

    I will never touch another Microsoft console again. EVER!

    We'll try PS4.

    • I'm merely speculating here, but having two faulty consoles in a row is extraordinarily bad luck. That said it looks like quite a few are suffering from the disk drive issue. I do not have all the information available, but assume that the server that held the initial update would have been absolutely slammed on day one of release, explaining the slow update times.

    • It's Microsoft, what do you expect?

  • Microsoft take this stuff very seriously Costco can right to sell new stuff take off them or Microsoft can total pull out there stores. Havery Noman that sold few games cash in hard to staff before release date we are talk like a week they put in console and play it did not disconnect it from internet Microsoft found out that Havery Noman store no longer sell new games and staff console ban from online game store and over internet game play.

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