Cheap PCs Come Under Fire

The Amazing Exploding Modem

EMachines' unsatisfactory rating was based on customer complaints of defective equipment, problems with returns and exchanges, and failures to receive advertised rebates. While many complaints have been addressed by eMachines, other complaints remain unresolved or unanswered, according to the BBB.

One such hapless eMachines customer was Lisa Holmes. She says her modem exploded one day while she was surfing the Internet with her new eTower.

"I was on the Web looking for health information and I heard a loud pop and I could smell something burning," Holmes says. Five months and two defective eMachines later, she is still waiting for her replacement.

Stephen Dukker, eMachines president and chief executive officer says complaints are to be expected with the high volume of PCs shipped since November of last year. "There is no way you can ship 200,000 PCs a month and not drop a few balls," he said.

He says that eMachines switched modem suppliers in June because of "isolated" problems with several PCs. He feels that claims of poor customer service are anomalies.

IBM, a major desktop PC manufacturer, has received 33 complaints over the past three years from the local BBB. According to the BBB, it has responded to each complaint. EMachines has had 39 reports filed against the firm -- approximately half of those are unresolved.

EMachines is not a member of the BBB. As a rule, the BBB does not endorse, recommend or disapprove of any product, service, or company.

Consumers have also complained to the South Jersey BBB regarding DirectWeb, claiming the company has failed to deliver PCs after credit cards had been debited. In a letter to the BBB, DirectWeb stated it is backlogged with orders and doing its best to fill current ones.

Regulators Caution Consumers

The Federal Trade Commission has expressed concern over consumer confusion regarding three-year Net access contracts used to subsidize low-cost or "free" PCs. Although there's no confirmation of a formal investigation, the FTC does urge consumers to understand what they are getting themselves into before they sign lengthy agreements.

"The commission would want to make sure companies would fully disclose all the terms of a contract," says Howard Shapiro, FTC spokesman.

The attorney general's offices in New York and Florida are also taking closer looks at "free" PC schemes; however, neither will confirm nor deny a formal inquiry.