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  • Report:  #68225

Complaint Review: SMC - Specialty Merchandise Corporation

SMC - Specialty Merchandise Corporation ripoff does not even have a list of out of stock items We are paying to be treated like this? I don't think so! Chatsworth California

  • Reported By:
    Charlotte North Carolina
  • Submitted:
    Sat, October 04, 2003
  • Updated:
    Sat, November 08, 2003
  • SMC - Specialty Merchandise Corporation
    9447 DeSoto Avenue
    Chatsworth, California
    U.S.A.
  • Phone:
    800-877-7621
  • Category:

Okay, I signed up and started my own website on my own server and put all the products on it that were in all the catalogs.

I though that since the products were in the catalogs that they would actually be available to sell. OOPS! Mistake number 1.

So I went to www.smcorp.com and checked the "product list" link and found hundreds of items that, not only weren't in the catalog, but even products in the catalog that were unavailable without the date of when they would be available. In other words, products on the site that were available weren't in the catalog and products in the catalog were unavailable on the site. Okay, who sees a catch-22?

When you see this type of logic in a company, don't even bother to ask for an updated list of all the products that are currently unavailbe. I did. Mistake number 2.

I called and politely asked for a current list of out of stock products that were currently in the catalog. I thought I was speaking clearly and in a language that the customer service rep understood, apparently not. "Uh, you want a what?" Excuse me!? So after a few rounds of "Who's on First" I explained the situation slowly, he tried to pass me off to ecommerce and ecommerce said "We don't do that, customer service does", transferred back to customer service, "Why would they say that it was our responsibilty?" Kids, cut the crap and someone get me the darn list!

I called every day for two weeks to get this report, I have sent about 6 emails, I have contacted all the phone numbers and email addresses on the website.

And, of course, no response and no report.

All I got was redirected to a link on the inventory page that gives the list of items that are being discontinued and a small incomplete list of items that are expected to be available on a specific date. There is also a suggest replacement items for about 17 items that are out of stock.

Hmmm. 17 items, not bad for having over 4000 items available, or so they claim. But when I go through the product index in the back of my catalog and type in the product numbers on the smc website, how come I come up with around 100 items that aren't available? And then while I am doing this, why are there several hundred items on the website that aren't in the catalog?

Hmm. Makes you think.

So here I am still waiting for their rendition of the "Out-of-Stock" list. While I am working on creating my own.

The funniest thing happened when I called the number provided for the "own your own smc hosted website" they told me that they understood what I was asking and then had the nerve to ask me if I could provide them with the complete list of items that are out of stock. So I told him. "Yeah right! As soon as I get put on SMC's payroll! I am not doing that, that is their responsiblity, I paid for this membership and I expect to get what I am asking, not only for myself but for all members of this organization."

We are paying to be treated like this? I don't think so!

Let's get everyone together who has ever had a serious problem with service and promises made by this company and get them to be a company that is run by its members!

Jeffrey
Charlotte, North Carolina
U.S.A.

1 Updates & Rebuttals


Jeffrey

Charlotte,
North Carolina,
U.S.A.

over a month and Still no response from SMC

#2Author of original report

Fri, November 07, 2003

It has been over a month since I first posted my ripoff report and I still have not heard from SMC. I did speak with Yvette Sanchez Member Support/Sr. Rep, she can be reached through the customer service number: (800)345-4762 and she assured me that she would call me back in a few days. This was over a month ago. I would not be updating this post unless they lied to me, again.

Have you seen their new commercials? They mention the new address and show a much smaller warehouse. They also show pictures of their staff and they do not look professional at all. They look underpaid and over-worked and underappreciated by SMC.

Did you also know that they charge a full 25% shipping fee for all products along with sales tax in certain states? The reason for this is they don't just use UPS to deliver the products. First they use and independent driver to take the products to the closest UPS hub near your state or in your region, then UPS delivers the item to you or your customer. Why do they do this? It costs a lot more than just shipping with UPS to start with! I checked on a order that I was testing and it would cost around $5.00-$8.00 to ship the order using UPS instead of almost $20 SMC was charging. Can you understand the reason for this? I can't. I hope someone can explain it to me. The site says" How come the shipping rates seem so high? The rates may seem high as a percentage of the White Price. However, when you consider the rates as a percentage of the RETAIL (catalog) prices, they are very reasonable. For example, a 21% freight charge to Zone 6 is only 7% of the catalog price (divide your original freight charge by three, due to the 3x markup from White Price to Retail). Therefore, you'll only need to charge your customer 7% of the RETAIL price, and you'll cover your 21% shipping charge. Of course, you can always charge more or less depending on your business." Nothing about the fact that they use freight and UPS or the reason for it.


As for the the sales tax I didn't know they charged tax. Can anyone tell me if they knew that and where can I find where it says it? All that I can find is the FAQ page that says "What about taxes? All tax questions should be referred to your State Tax Board, due to varying laws state to state." Why would I contact my local tax board to discuss why you charge tax on the west coast and don't tell your members that you will be adding that to the order?


This company, is slowing going out of business, unless people like me and others fall victim to their promises of making money selling their products.

If you would like to file a class action lawsuit or file several complaints of fraud against this company, contact me here by replying to my post.

You may or may not want to read the following, it comes directly from the member site.

Here are the rules for SMC Membership:
STANDARD MEMBERSHIP RULES

Please carefully read these Standard Membership Rules for Specialty Merchandise Corporation (SMC) which apply to all SMC members.

Membership.

Subject to your compliance with these Rules and payment of your membership fees, you will have a membership with SMC, including the right to purchase merchandise from SMC.

Registration.

You agree to provide us with accurate and complete information, including your legal name, address and telephone number. You warrant that any credit card or bank account information you provide is accurate and that you have the right to use the account.

Renewal Fees.

For an annual renewal fee (which is currently $29.95 but may be increased at any time at SMC's discretion) you will be entitled to receive updated catalogs, price lists and other information available to SMC members. We reserve the right to change prices or institute new fees at any time.

Cancellation.

You may cancel your membership at any time. If you cancel within 30 days of joining SMC, you may call toll free 1-877-523-9088 for easy return instructions on how to return you membership materials request a full refund of any membership fees you have paid (excluding shipping and handling).

Suspension.

You are responsible for all charges incurred, including your initial membership fee in accordance with the payment plan you agreed to when joining, your annual renewal fee, and payment for any merchandise or materials you order from SMC. If you fail to pay for any purchases from SMC, or if your account is delinquent, your account may be suspended or canceled at SMC's sole discretion. Your account may be suspended if you become inactive or do not place at least one order per year. If your account is suspended you may reactivate your account by paying an activation fee (which is currently $49.95 plus shipping and handling but may be increased at any time at SMC's discretion).

Termination.

SMC may immediately terminate your membership if you breach any provision of these Rules or if you fail to pay any fees or charges when due. We may also immediately terminate your membership if you (a) engage in any unlawful, unfair or deceptive business practice, (b) fail to conduct your business in an honest and ethical manner, (c) use SMC's name in the conduct of your business or infringe on any SMC trademarks, (d) engage in any tortious conduct or violate any applicable law or regulation, or (e) do anything to degrade SMC's goodwill or reputation.

Compliance.

You are solely responsible for all aspects of operating your business. You agree to comply with all applicable federal, state and local laws, ordinances and regulations in connection with the operation of your business and the sale and marketing of our products. You agree to indemnify and defend SMC from any claims or demands in connection with your negligence, misconduct or violation of any laws.

Taxes.

You are solely responsible for calculating, collecting, withholding, reporting and paying any and all applicable taxes, duties and levies, including without limitation states and local sales and use taxes, and federal and state income taxes.

Trademarks.

You may not use the names Specialty Merchandise Corporation or SMC, the SMC logo or any other trademarks of SMC or its affiliates.

Warranty Exclusion.

SMC IS NOT LIABLE FOR ANY LOSSES, COSTS OR DAMAGES ARISING DIRECTLY OR INDIRECTLY FROM YOUR MEMBERSHIP, THE SERVICES WE PROVIDE OR THE SALE OF OUR PRODUCTS. ALL PRODUCTS AND SERVICES ARE PROVIDED "AS IS." NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE CONDITION, QUALITY, DURABILITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE IS GIVEN OR ASSUMED BY SMC OR ITS AFFILIATES, AND ALL SUCH WARRANTIES, REPRESENTATIONS AND TERMS ARE HEREBY DISCLAIMED AND EXPRESSLY EXCLUDED. NO ADVICE OR INFORMATION GIVEN BY SMC OR ANY OF OUR REPRESENTATIVES SHALL CREATE ANY WARRANTY.

Damage Limitation.

OUR CUMULATIVE LIABILITY TO YOU FOR ANY AND ALL CLAIMS RELATING TO OR ARISING OUT OF YOUR MEMBERSHIP SHALL NOT EXCEED THE TOTAL AMOUNT OF THE MEMBERSHIP FEES YOU HAVE PAID TO US WITHIN THE PRIOR YEAR. SMC AND ITS AFFILIATES SHALL IN NO EVENT BE LIABLE FOR ANY PUNITIVE OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EVEN IF ANY EXCLUSIVE REMEDY PROVIDED FOR IN THIS AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE.

Claims.

You will promptly notify us in writing if any third party makes any claim of infringement of any copyright, trademark or patent. If in our judgment the sale or use of any SMC products may be found to infringe the property rights of a third party, we may, at our option, require you to return the infringing products for a merchandise credit or exchange.

No Agency.

You agree and acknowledge that you and SMC have an independent business relationship. Nothing provided for in your membership shall be deemed to create a partnership, franchise or joint venture, and neither party is the other's partner, franchisee, employee, agent or representative. You have no right to obligate or bind SMC in any manner whatsoever, and nothing herein contained shall give or is intended to give any rights of any kind to any third persons.

Third-Parties.

These Rules are intended and agreed to be solely for the benefit of you and SMC and its affiliates, and no other party shall accrue any benefit, claim or right of any kind whatsoever hereunder.

Arbitration.

Any controversy, dispute or claim of any nature whatsoever arising out of, in connection with or in relation to your membership or these Rules, or otherwise involving you and SMC, including the issue or arbitrability of any such claims, will be resolved by binding arbitration before a retired judge at JAMS in Los Angeles, California. If you are not a resident of the United States, the UNCITRAL Arbitration Rules shall apply and JAMS will be the appointing authority. The prevailing party will be awarded all costs and expenses, including without limitation all arbitration, expert witness and attorney fees, costs and expenses.

California Law.

Your membership agreement is deemed to be entered into and performed in Chatsworth, California. Your membership shall be governed by and construed in accordance with the laws of the State of California without regard to conflicts of law provisions. You consent to exclusive personal jurisdiction and venue in Los Angeles County, California, and agree that it shall be the sole forum and venue for any and all disputes involving SMC.

Miscellaneous.

If one or more provisions of these Rules shall be held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not be construed as a waiver. Neither these Rules, nor any of your rights or obligations arising under your membership, shall be transferable to any third party without SMC's prior written consent.

Amendments.

The Rules may be revised or amended by SMC at any time in its sole discretion, by posting the revised Rules at www.smcorp.com, and the amended Rules will become effective 30 days after posting.

Entire Agreement.

These Rules and your SMC Membership Application constitute the complete and exclusive agreement between you and SMC, and supersede any other promise, representation or agreement, whether written or oral.

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