ReplayTV Apologizes for Service Flap

[Gregg Lengling]

SANTA CLARA, Calif. - Digital video recorder maker ReplayTV (news - web sites) is apologizing to customers after many were lured to buy a machine through an offer of three years' of free service that the company now says it made by mistake.



The Santa Clara-based company said Tuesday that boxes of its lowest-end model were "mistakenly labeled" with the reduced price offer, which has been rescinded. In addition, ReplayTV says the company's call center employees mistakenly told some customers the new lower $149 price for the unit included three years of service.


"ReplayTV will work with customers to verify mistakenly labeled product by retailer and date of purchase through product serial numbers and receipts," ReplayTV said in a statement.


DVRs are the latest alternative to VCRs, and an unknown number of customers recently took advantage of ReplayTV's dramatic price drop to $149, thinking the deal included three years of service, which is needed for the devices to work. The devices previously sold for $499 and service costs $12.95 a month or a one-time payment of $299.


ReplayTV said it would honor the three years of service offer "for those customers who were confused by these mistakes." A spokeswoman was unsure how many customers qualified.


Heading into the thick of the holiday shopping season, several retailers, including Amazon.com and Circuit City, advertised the reduced price, saying it included three years of free service.