Complaint Review: Simulated Environment Concepts

In the fall of 2007 we started seeing tanning salon trade journal advertisements for the SpaCapsule Hydro-Massage unit. The magazines called it one of the hot products for 2008. The full page ads stated things like our customers have purchased over $8,500 of SpaCapsule Massage BEFORE the SpaCapsule got here. Its simply amazing Steve Stern, Tans Unlimited, Inc, Denver, CO. Our prayers had been answered. Here was a product that would save us through the slow tanning season July through November.

On September 24, 2007 I talked to Mr. Frank Mineo, a salesmen with Simulated Environment Concepts of Miami, Florida (SEC), about purchasing a SpaCapsule Hydro-Massage Unit for our mom and pop tanning salon in Colorado Springs. He offered to lease us a SpaCapsule for $27,450. The verbal terms were $480/month for 4 years and no payments for the first year. He also offered a 5 mile exclusive on the unit. We signed and faxed an application and were instantly approved by GE Money Bank.

What we actually got was a 14.99% credit card with a $28,700 balance and a $30,000 limit. I dont know how much the monthly payments will be but I suspect they will be significantly higher than $480/month. The 1 year of deferred interest will be waived if we completely pay off the account within 1 year. Since that time we have had 4 sales calls from SEC trying to sell us a SpaCapsule leaving me with the impression that they are not giving a lot of consideration to the 5 mile exclusive.

On October 8, 2007 the SpaCapsule was delivered and an installation representative from SEC installed the unit. The Audio/Video unit was defective so a replacement was ordered. Later that day the unit began leaking water and a replacement hose was ordered. The following day the A/V unit was replaced and the installation representative and my electrician replaced the hose. He then left town to do another installation in some other state.

That evening a customer was using the unit and gallons of water began pouring out of the back of the unit. We contacted SEC and they sent another replacement hose and authorization for my electrician to replace the hose. The hose was replaced and the unit appeared to be fixed.

A few weeks later the aromatherapy unit was not working properly so I opened the unit up and discovered the fan assembly broken and dangling by the power wires. I received a replacement unit and had to chisel out the glue that held it in place to replace it. For a $28,000 unit I was disappointed that they choose to glue the unit in place instead of using proper mounting hardware.

On March 13, 2008 a customer was using the unit and it began pouring water out of the back again. At this point we did what I think any normal business person would do. We told SEC to refund our money and to pick the design flawed piece of junk up before it killed someone. There are no water leak detectors in the unit and the unprotected 220 volt plug is located at the base of the unit where water pours out when the hose breaks. They responded by saying that they would never give us a refund.
The SpaCapsule website offers an optional currency adapter for the unit to be used in a self-service environment. The owners manual has the following contradictory warnings:
WARNING: NO ONE SHOULD BE ALLOWED TO USE THE SPACAPSULE UNSUPERVISED
DANGER: DO NOT PERMIT ANY ELECTRICAL APPLIANCE WITHIN SIX FEET OF THE HEAD OF THE MACHINE

We informed the BBB of the situation and filed a charge dispute based upon defective merchandise with GE Money Bank. We also placed one thread on a tanning discussion forum board asking if anyone else had their salons flooded by the SpaCapsule..

On March 19, 2008 SEC made a written offer to us of either fixing the unit and compensating us $2200.00 for the nuisance OR replacing the unit with a brand new one. This offer satisfied the BBB and GE Money Bank and they both closed the issue.

On an April 8 phone call, Allen Licht, the Managing Director of SEC repeatedly told me that the SpaCapsule was safe because it used distilled water and distilled water was non-conductive. True, distilled water is non-conductive but distilled water poured on our carpet is highly conductive as is the sample we tested from the SpaCapsule.

On April 24 we saw a Good Morning America segment on the SpaCapsule and decided to accept their offer of replacing the unit with a new one. We were told by Allen Licht in a phone call that they would not replace the unit because we were disloyal customers as we involved the BBB, GE and that we had discredited them all over the internet.

On May 8, SEC in writing agreed to replace the unit if we signed a document stating:
(1) We agree to never again request a refund
(2) We agree to never post derogatory remarks about their company, products or service and to post good-faith remarks about them on the internet
(3) We agree to never request refunds or obligations to GE Money Bank

At the advice of our attorney we did not sign the document. He has also advised us that we can not use the SpaCapsule even if it is repaired again. Given its document history of hose failures, we could be held accountable for negligent manslaughter if a future hose break electrocuted someone.

We filed a second dispute with GE Money Bank and received a response telling us to work it out with SEC.

The warranty states that the unit is free from defects in material and workmanship. It states that SEC is not liable for any damages or lost income. It also states that any disputes must be settle in a Miami court and the loser pays all attorneys fees. Although our attorney says we have a very good case, we cannot afford to hire an attorney in Florida let alone take the chance of paying for a team of SECs attorneys.

We put the unit up for sale on Ebay for 10 days with a hidden reserve and starting bid of one cent. The units condition and history were accurately and honestly described. There were over 200 views on the ad and 17 bids. The high bid was $16.50.

We feel like we have been ripped off, blackmailed and lied to. This thing has been a lemon from day one. We have a broken SpaCapsule that we can not use and an account with GE Money Bank that is accruing interest every day. At this point we would not trust SEC for maintenance support even if the unit was replaced. We are the victims not them.

Craig
Colorado Springs, Colorado
U.S.A.