White van speakers

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Not to be confused with White van man.

White van speakers is a scam sales technique in which a salesman makes a buyer believe he is getting a good price on audio merchandise. Con artists in this type of scam call themselves "speakerguys" or "speakermen".

Contents

[edit] Process

The typical white van speaker scam involves one or two individuals, who are usually dressed in T-shirts and jeans or business uniforms. They drive a SUV or a commercial vehicle (usually a white commercial van, which is the cheapest to rent) that often displays a company logo. To find suitable targets, the van operators set up their con in moderately trafficked areas—parking lots, gas stations, colleges, large apartment complexes—or even watch heavy traffic for people driving expensive cars and wave them down. The marks are usually affluent young men, college students, or others thought to have large amounts of disposable income.

After the speakermen attract someone, they immediately launch into a loud, fast-paced, and relentless sales pitch, such as:

"Hey buddy, you want some really big speakers for your house? We are making a delivery, and they made a mistake at the loading docks. We are going to sell them cheap! Pull over!"
"The temps on the docks made a mistake. They gave us 6 sets of speakers instead of 6 speakers. We need to sell them before we get into serious trouble with our boss back at the store."
"The computer order called for too many speakers to get put on this truck, and it will cost the company money to re-stock them."

The operators claim that they work for an audio retailer or audio installer, and that, through some sort of corporate error (warehouse operator mistake, bookkeeping mistakes, computer glitches, etc.) or due to the client changing the order after supplies were purchased, they have extra speakers. For varying reasons they need to dispose of the speakers quickly and are willing to get rid of them at "well below retail" prices. The con artists will repeatedly state the speaker "value" as anywhere between $1800 and $3000, prices often purportedly verified by showing a brochure or a magazine advertisement. They will usually also have an official looking website verifying their claims.

If the mark declines the offer, the speakerguy uses various high-pressure negotiation and sales tactics to change the mark's mind. Among these techniques are producing any other glossy material that details the quality and high retail value of the speakers, and bombarding the potential customer with technical jargon, whether correctly or incorrectly used. If still unable to convince the mark that he is turning down an incredible offer, speakermen will almost always significantly lower the price immediately (the actual cost of the speakers may be less than 3% of the MSRP). Some speakerguys will even suggest that, since the customer got such a great deal, he should pay a little extra as beer money for his supposed benefactor.

If the speaker men reach their self-set sales goal, a number of points are accumulated which, at the end of the sales period, receive a bonus ranging from $200-$2000. The motto is "sell the fuck out" or S-T-F-O for short, and the office pays $20 beer money.

[edit] Economics

Distributors rent a warehouse and obtain licenses and distribution rights, then import large quantities of counterfeit goods. They ship these goods to local warehouses in major cities and hire con men to distribute the illicit goods.

North American distribution operations are in major cities across the continent.[1] The marketers at each office establish a promotion, benefit, and bonus scale for the speaker sales teams. Bonuses may be paid in cash and speakers.

[edit] Online availability

White van speakers and home theater systems are now commonly found online, primarily on Craigslist and eBay, prompting revealing reviews showing these speakers to be outclassed by even inexpensive "home theatre in a box" systems sold by legitimate manufacturers. One published reviewer writes[2]:

"Imagine if a peddler of fake Rolexes, or 'Rolex quality' watches posted a website claiming that their junk that cost maybe $50 to manufacture is worth thousands - that is basically the case we have here."
"The internal electronics such as the crossovers, are by far, the absolute worst I've ever seen in nearly 3 decades as a hobbyist. The DiVinci hucksters have the nerve to advertise their 'high energy crossover', which is a $2 piece of junk - a good crossover is complex, not inexpensive, and is critical to sound quality"
"Just for fun, we compared these Kirsch 803 beasts to a pair of Infinty SM-255's bought off of eBay for $300, using both analogue and digital sources, receivers and high end separate electronics. A sound level meter was used to ensure that the listening occurred at the same volume level."
"One of the girlfriends said it best: The Kirsch sounded like a clock radio compared to the Infinitys and one thought that a clock radio might sound better. Technical measurements confirmed what our ears told us - a ragged response curve that is the worst I've ever seen, bar none."

One online technique used on Craigslist is for the seller to post ads for the speakers for their "retail price", which is often in the thousands of dollars. Then the seller will post another ad with different wording at a "deal" price, a fraction of the original price. Both ads will have links to the phony speaker brand's web site. The higher priced advertisement is a red herring that is meant to fool any prospective buyer into thinking that they have done their due diligence.

[edit] Techniques used

The brand name of the speakers is often confusingly similar to a well-regarded speaker manufacturer. For example, the reputations of manufacturers such as Klipsch, Paradigm, Dahlquist, and Wharfedale are used to sell low-quality speakers with fake brand names like Kirsch, Paradyme, Dahlton, and Grafdale.

"Matrix Audio Concepts" is another fictional brand that returns additional related websites with an Internet search query for that term. Some sites, such as for "Theater Research" and "Theater Innovations", also list customer service telephone numbers or support e-mail addresses. These methods of contact are often dead ends.

Another recent technique is to parrot but not mimic, the names of reputable companies. For example, Genesis Media Labs is a white van scam name that trades on the American "Genesis" brand of loudspeakers [3][4], while DiVinci trades on the name of the Swiss "DaVinci" company. That company makes some truly incredible claims, as one reviewer wrote[2]:

"I visited recently with an old friend, a leading British audio writer, who upon seeing the eBay ads and the Divinci website first thought it was someone's idea of a joke -- his take in typical British understated fashion -- The claim that this logo was on half the speakers in Britain is rubbish, the products are so poor that they do not even rise to that level (rubbish), and the purveyors are simply scoundrels."

Interestingly, those who initially feel they made out OK soon change their tune: it is easy to find discussion forum threads where the products fail after a brief period of time, or where buyers find that the Genesis Media Labs or DiVinci warranties are worthless.

[edit] High definition

Another line that appears is the shock people have when they try to hook up the home theatre system to high definition (HD) sets and find out it cannot be done—the claim of HD compatibility made for the white van system is just another element of the scam.

One reviewer writes [5]:

"Look at the back of the 2098. Not even component video, much less HDMI, just an S connection (ok for an old VHS VCR) and a single, outdated 'AC-3' connection. It forces you to find a DVD player that still has the Dolby Digital decoder built in - these will usually be older models such as the Sony 400 model, that may lack progressive scan, and the sampling rate will be lower than current players.
As noted the DiVinci video connections are primitive - lack of HDMI or even component video outputs is inexcusable for a $ 389 receiver, much less one that claims to be worth thousands. As if the spoof reviews, awards, and fabricated engineering citations (they should be ticketed for selling the cheapest of Chinese junk) aren't enough, these shysters have the nerve to claim the unit is "HD compatible". This p.o.s. lacks the inputs and outputs necessary to get the advantages of HDTV - the only more absurd and outlandish claim I've seen is for the 'precision Lynxis crossover' in their speakers - which is wired precisely so the 4 driver '4 way' system in effect becomes a 2 way system - absolutely flabbergasting."

[edit] Options for those scammed

Law enforcement officials are often reluctant to get involved in these transactions, despite their questionable legitimacy. Employers with proper business licensing often hire independent contractors to sell the speakers on the street from white vans.

In Pennsylvania, the act of selling white van speakers is punishable by up to five years in prison and up to a fine of $10,000.[6]

Dissatisfied buyers are usually unsuccessful in obtaining a refund, particularly since locating these workers and their warehouses is seldom easy. This is because white van salesmen list their operational hours to be between 9 and 5, when in fact they are only at the warehouse for one hour in the morning, usually between 8 and 9. Moreover, returns are only allowed within three business days. Therefore, although the legality of this business model is questionable with regard to trademark infringement, unfair competition, false advertising, and possibly income tax and sales tax evasion, buyers generally have little ability to take direct legal action. However, if you deliver the notice of cancellation within three business days and you take the speakers to them early in the morning, you may be able to return them.

However, there are some things the conned or the simply disappointed can do. A disgruntled buyer may file a complaint with the state Attorney General, alleging that the seller intentionally misled him to believe he was purchasing high quality goods from a reputable manufacturer. They may also report the seller to their state's Internal Revenue Service.

The local police should also be contacted. Law enforcement could issue citations, as rarely do the speakerguys obtain the proper permits and license to sell "out of a vehicle". However, this is not always the case. The reason why speakermen work for companies is because these companies shield them from potential lawsuits often by providing tax identification codes, licenses to sell out of vans and other guidance on how to avoid law enforcement and civil suits. Many of the sales take place in the parking lots of Best Buy, Home Depot, Wawa Stores, or Circuit City with video surveillance equipment installed, making video evidence of the act likely, and where ATMs are handy for their customers. In Pennsylvania, however, police seldom do anything because white van operations are technically legal.

[edit] Brands reported to be sold out of white vans

  • Acoustic Monitor, Acoustic Studio Monitor, Acoustic Response, Acoustic Image, Acoustic Lab Technology[7][8]
  • Advanced Sound Technologies (AST)[8]
  • Audio-Tech, Audio Tech Pro[8]
  • Audiofile[7][9]
  • BSS - Brendle Sound Systems[10] (No relation to BSS Audio, part of the Harman Pro Group)
  • Cerwin Vega (counterfeit)[11]
  • Cleo Acoustics (Singapore) [12]
  • Denmark[7][9]
  • Dogg Digital, Digital Dogg Audio[13][7][8]
  • DanWave, Dan Wave[8]
  • Dahlton[7][8]
  • Digital Pro Audio, Pro Audio, Digital Audio, Digital Audio Professional Speaker Systems, Digital Audio Skyline, Digital Research[7][9][8]
  • DiVinci[9][8]
  • Dynalab[7][9]
  • Epiphany Audio[7][14]
  • Fleetwood Audio[15] (no relation to Cadillac Fleetwood)
  • Genesis Media Labs[8]
  • Grafdale[7][8]
  • Hauffman[8]
  • JBL (counterfeit)[11]
  • Kirsch[9][8]
  • Linear Phase[9]
  • London[14]
  • Matrix Audio[8]
  • Millennium Theater Systems (MTS)[9][8]
  • Olin Ross [16]
  • Omni Audio[7]
  • Palermo[17]
  • Paradyme[9]
  • Proline Acoustic[8]
  • Protecsound (PTS)[7][18]
  • PSD[7][8]
  • Samaurai[9][8]
  • Skyline[9]
  • Theater Logic[19]
  • Theater Research, Theatre Research[7][9][8]
  • Vokl Audio (aka Danish Audiophile Loudspeaker Industries)[20]

[edit] White van products with websites

[edit] References

  1. ^ Scam Shield - Distributor Locations
  2. ^ a b eBay Guides: Kirsch, Genesis Media Labs, DiVinci & White Van Speakers
  3. ^ Genesis Loudspeakers by Genesis Advanced Technologies
  4. ^ Genesis Model 5.2 review at Stereophile Magazine
  5. ^ eBay Guides: The Di Vinci AV 2098 Receiver , and the White Van Scam
  6. ^ [1] Walsh, Lawrence. August 27, 2003. "Purchase of bootleg speakers is not worth the treble." Post-Gazette.com.
  7. ^ a b c d e f g h i j k l m Kuro5hin story
  8. ^ a b c d e f g h i j k l m n o p q r ScamShield Listing Canada
  9. ^ a b c d e f g h i j k l ScamShield Listing Colorado
  10. ^ Bss M-250's - 440 Forums
  11. ^ a b ProSoundWeb Live Audio Board: The White Van Scam
  12. ^ Singapore Hardwarezone Forum: Scam at around Sim Lim Area - Warning
  13. ^ Santa Barbara BBB News: Dogg Digital Audio
  14. ^ a b ScamShield Listing Tennessee
  15. ^ Ripoff Report: Fleetwood Audio
  16. ^ ScamShield Listing California
  17. ^ ScamShield Listing Texas
  18. ^ Ripoff Report: PTS Protecsound
  19. ^ Remote Central: Theater Logic Home Cinema L6
  20. ^ Audio Asylum: Any one heard of VOKL AUDIO?

[edit] External links

A great deal of information and warnings on the topic of "white van speakers" can be found using search engines. Some of the more informative links include:

[edit] See also