Office Depot computer scans gave fake results
consumer.ftc.gov
consumer.ftc.gov
In this company, someone up the chain of command knew they were doing this. Someone at some point was presented with "we'll give them fake scan results to upsell our services" and said "yes".
Why is that person not being charged with fraud, just like I would have been? What makes it just a fine and a slap in the wrist just because they're a big company?
I wasn't surprised to learn it was from the same director as The Smartest Guys in the Room (Enron Documentary). Bethany McLean even makes an appearance.
[1] https://www.pcmag.com/news/266065/fbi-busts-international-sc...
There may be a sign-up bonus (rarely) or a golden parachute (even more rare), but the whole idea of the bonus is to be tied to the company performance.
https://www.macrotrends.net/stocks/charts/GS/goldman-sachs/n...
I don't see why this is supposed to be a problem. (Barring "require", but I'm betting you're just exaggerating there.)
Any incentive is going to encourage the incentivized party to break the law. That's the point of the law, protecting some people from what other people want to do to them.
Right now, I'm incentivized to take all your money, because more money is better than less money. And there have been people who saw this fact and decided the problem was the concept of money. But those people were and are insane.
I don’t think so. All you need is a simple quota that is too high to be achieved naturally. A common example is credit card signups. The company requires some percentage of a worker’s customers to be signed up for the company card. That percentage is too high to be achieved by honest means. Result: workers lie about the card, get people to fill out the form by saying it’s just a bonus card, or just sign people up without their knowledge.
I’d bet the same sort of thing happened here. They had a quota where a certain percentage of customers who came in for a free diagnostic had to be sold services. The actual percentage of customers who needed work done was lower than that. Result: workers fake the need for service, and executives keep their hands squeaky clean.
As I recall, Dilbert nailed this one decades ago. "Welcome to sales training. We don't ask you to act illegally, but it's pretty much the only way to reach quota. That's it for training."
It works best at large, high-turnover companies; even if only 10% of the people you hire are willing to break the law, you filter out the honest people pretty quickly. And once fraud is common enough, it becomes culturally accepted, or inescapable via rules like "fire the bottom 20%". Sometimes it even ends up taught as a "best practice" to honest hires who don't know better. Hence credit card signups, hence fake Wells Fargo accounts, hence Comcast assigning reps to upsell on a percentage of all calls, even cancellations and complaints.
Heck, this is pretty much how game dev 'crunch time' works too; it's not scheduled, so there's no one to blame, but development targets get set so that it's a predictable outcome on every project.
Barring "require", but I'm betting
you're just exaggerating there.
Imagine a delivery company where drivers are given a schedule based on average traffic conditions; and to reward hustle and punish laziness, drivers are fired if they're late too often. It's official policy that drivers should not speed. Sounds reasonable enough, right?Now imagine a driver for that company who has just been delayed by worse-than-average traffic. Not their fault, a crash caused a tailback. They can speed to get back on schedule, otherwise they'll be fired.
Would you consider it an exaggeration to say the driver had been required to break the law?
UPS set delivery targets for drivers that were too high to consistently achieve. When drivers fell behind, they sped and caused accidents, so UPS installed speed monitoring. Drivers switched to leaving the rear door open between nearby stops, so UPS installed door sensors. Drivers started leaving seatbelts unbuckled, so those got sensors.
UPS essentially frames this as fighting Goodhart's Law with brute force, trying to track so many metrics that they can't be gamed. Except, of course, that the targets aren't realistic. What actually happens are results like drivers sitting on buckled seatbelts, moving heavy packages in injury-causing ways, or marking "signature required" packages as no-shows without knocking to shave off time. None of that is permitted, UPS fires people who are caught doing it, but the rest of the time when it isn't caught, it's all convenient cost-savings.
There's nothing wrong with holding individuals accountable for their response to incentives, but it's possible to do that while also holding people accountable for the incentives they create.
My understanding is that UPS has partially bypassed this by setting per-route targets which update independently, but within a multi-driver route it could still apply. FedEx dodged it by franchising so that slow workers outright went into debt to the company, but then got sued on employees-as-contractors grounds. Overall, though, I think it's a huge and underrated effect limiting Taylorism. Designing strictly around efficient workers isn't viable if you can't find a lot of them, and using multiple workflows is rarely cost-effective.
There's a story in Rivethead about a car-assembly stamping job that was assigned to two people splitting tasks, but could be done by one person working very smoothly. New guys would do it in pairs, but experienced workers could each do a half-shift solo and duck out to the bar for the other half. As far as I know, time-motion studies never put an end to that, because it was too scarce a skill to schedule and organize for. (Of course, the inability to squeeze out more productivity has consequences for automation, but that's another story.)
The intresting thing is there's no specific source of "piety" in the religiously/ philosophically divided West. Even if someone's moral failings get exposed, currently, every devil has an advocate.
The problem is complexity creep really and there is little serious effort in "code maintenance". The law itself demonstrates such problems. The Justinian Code was one example of a famously successful refactoring and ironically its creator despite his talent was also very corrupt.
One ancient solution which probably wouldn't scale well with needed complexity was "reading of the laws" - a periodic reading aloud of all laws on the books and if any were forgotten and went unobjected to they were automatically repealed as essentially irrelevant.
Just hard limiting complexity isn't a very good solution given increased complexity of the world and scale it often ammounts to "if I can't understand it ban it". It is populistic and anti-intellectual and a bit of a meme - that what can be easily understood is better and what can't is worse. Except reality doesn't work that way - the main reason why we bother with extra complexity and difficult to understand fields is because it works better.
Needless complexity may be a good concept to define abusability but defining it is tricky just like pinning down Hollywood accounting - where do you formally draw the line between overmarketing and intentionally torpedoing profit margins without proof of intent?
True now, too; notably, by way of the legal doctrine of respondeat superior.
The modern breakthrough seems to be ability to act without any direct action. Indirect communications mean that a speaker doesn't need any connection to the person whose action they're compelling, and mass communications mean that the threshold of explicitness drops from "reasonable person understands" to "someone is crazy enough to take this literally". Math-washing and automated systems make it possible to take a decision you can't explain and apply it to an unknown set of people. The result is everything from Wells Fargo fraud to legal systems that bill suspects for their own wrongful searches.
It's not a new thing, and that's worth remembering, but we seem to have gotten vastly better at it in the last few decades.
These days, we've gotten much better at directionless provocations.
'Stochastic terrorism' was coined back in 2011 to describe mass media rhetoric which produces statistically-predictable violence from an unknown source. Where Henry spoke to his court and produced a murder by his knights, someone speaking online or on television can stir violence from someone they've never met, who will quite likely be the sort of person easily written off as "disturbed" or "not behaving rationally". The specific occurrence is accurately dismissed as unpredictable, without admitting that on average such actors will be exposed to the content.
Similarly, giving an employee a target creates an obvious expectation. If you direct someone to triple their sales in a month, they might tell you "I think that's impossible to do legally." If they then do it anyway, you lack plausible deniability even if you didn't instruct them to commit a crime. But today, you can punch a sales target into HR software and assign it, with no feedback channel, to 1,000 employees you'll never meet. Some will break the law, but when the whole thing goes Wells Fargo, you had no reason to know. If employees complain up the chain, the message can disappear or decay "between" layers, with no way to show that any one party knowingly concealed anything.
This seems to happen everywhere conspiracies and fraud used to operate. The "smoke-filled rooms" choosing political nominees get replaced with common-knowledge biases across donors and superdelegates. Price-matching means cartels get replaced with 'independent' but reciprocal high prices. Targeted bribery gets replaced with generalized expectations of favorable laws, post-retirement board seats, and so on. Honestly, the more surprising thing at this point is when people do make these things explicit and get caught.
> Honestly, the more surprising thing at this point is when people do make these things explicit and get caught.
I suppose the effort involved to insulate oneself from liability is eventually seen as an unnecessary burden when one is accustom to getting away with things. I imagine a thief on his first heist who has spent a great deal of time planning and plotting only to find that it was actually quite easy to pull off, the security wasn't nearly as strong as he expected. Maybe on the next heist he is less cautious, and on the next heist even less, until he gets to the point where he's casually strolling in wearing flip-flops and sunglasses and just takes what he wants. Of course this is when he gets caught and the news paper shows this ridiculous image of an offensively cavalier thief who is supposedly a great heister. Then the public is shocked how such a dope could be a great thief (where is his mask and great stealth), but they only know the lazy thief, not the thief when he was disciplined. The lazy or stupid thieves are the ones that get caught.
When I was younger I briefly worked for Wells Fargo as part of their mortgage pipeline. It was immediately clear to me that their quality control system was deliberately designed to incentivize employee fraud in favor of getting mortgages sold.
“[I]t is a mistake to rush to impose the individual ethical responsibility that the corporate structure deflects. This is the temptation of the ethical which, as Zizek has argued, the capitalist system is using in order to protect itself in the wake of the credit crisis - the blame will be put on supposedly pathological individuals, those’ abusing the system’, rather than on the system itself. But the evasion is actually a two step procedure - since structure will often be invoked (either implicitly or openly) precisely at the point when there is the possibility of individuals who belong to the corporate structure being punished. At this point, suddenly, the causes of abuse or atrocity are so systemic, so diffuse, that no individual can be held responsible… But this impasse - it is only individuals that can be held ethically responsible for actions, and yet the cause of these abuses and errors is corporate, systemic - is not only a dissimulation: it precisely indicates what is lacking in capitalism. What agencies are capable of regulating and controlling impersonal structures? How is it possible to chastise a corporate structure? Yes, corporations can legally be treated as individuals - but the problem is that corporations, whilst certainly entities, are not like individual humans, and any analogy between punishing corporations and punishing individuals will therefore necessarily be poor. And it is not as if corporations are the deep-level agents behind everything; they are themselves constrained by/expressions of the ultimate cause-that-is-not-asubject: Capital.”
Not that it proposes any answers necessarily. Your post just reminded me of this quote.
Another option I see is that the CEO of a company would be automatically personally held responsible for any wrongdoing. There is of course a lot of stuff you could say to shoot that down, for instance that employees might try to do a joe job on their CEO, but a CEO is also in the position to enact meaningful oversight by creating corporate structures to ensure compliance.
About time. One of my first tech jobs was with Office Depot, where I was hired on as the technology lead, thinking that I was going to be sharing my 2008 era knowledge. I still remember feeling excited and sharing with the store my first laptop sale, explaining how I was able to sell a Windows Vista Basic machine with a copy of Windows XP and a stick of memory. My boss was quick to tell me that they don't make any money on that stuff and selling high end items with the amount of time that I spent doing that sale was actually hurting the store. So I could either lose my job or sell extended warranties and services, and earn 5-10 dollars a sale. I was 20 years old, wanted a new iPhone, and was living with my parents, so my path was pretty clear.
At Office Depot, we had two kinds of warranties, either a "Kit" or a stand alone warranties. With services, we had the "make your computer faster" and "so you just bought this pos, lets make it faster". With warranties, I went straight for the scare tactics, such as your printer ink cartridges could leak all over over or the new chair you bought could have a castor leak grease, both of these were not covered under the normal warranty, but for 25-100 dollars, you could be protected from the unpredictable. With services, we just put your new computer on a cabinet where we ran a flash program that showed "vulnerabilities", and for 100 dollars, we could patch up this machine that would have been hacked to shreds by the Chinese if it were not for us brave souls.
I made two grand that month and was given an award by the Office Depot district manager. I felt like shit too. I was able to get my conscience back after helping people under the table when they bought one of our bullshit comfort blankets and wouldn't anything other than the shredder kit - which included a bottle of literal synthetic snake oil.
Awesome. You used the term "under the table", which I've always understood to mean a cash transaction that won't be reported in tax filings.
This seems like a bit of a stretch. Just because you haven't heard a term used in different contexts doesn't mean it's invalid. On review of the same text I may have rephrased it, but while imperfect, it's still understandable in the context.
Happens a lot, in many types of companies and policies, that helping the customer has to be "under the table" / "off the books" :-/
And people wonder why the High Street is failing?
They’re old relics that need to die like Sears did. They’re not innovating, they’re getting desperate as we’ve seen RadioShack in early 2000’s leading up to its bankruptcy in 2015.
Furthermore, they pay poorly to their employees, and there is a whole bunch of toxicity in there. Best Buy was on its way on the same path but they’ve saved themselves by a narrow margin. I still despise their “Geek Squad”. They take advantage of uninformed consumers and it’s sleezy. It makes me angry just thinking about it.
The leaders and executives that run these businesses are completely and utterly out of touch with their core business values, innovation and having a vision for the company. Spineless bozos.
I go in, I get what I need, I pay, I go out. Might be a different company with the same name and logo.
There were so few sales people there that it took about 15 minutes standing at the counter to actually purchase it. The whole counter was completely unattended for that entire time.
In this case, it's actually very possible that the clerk really thought that incredibly stupid statement about a product that the store was selling.
On the other hand, I've found that sales attracts and retains incredibly unethical people, too, so that's still a possibility as well.
He never really did anything just stood there and yelled. I just kind of ignored him at that point. I found the pens I wanted and he followed me back to the register. That was when the threats of calling the cops came.
I dunno, I could understand if I'd looked or acted shady or something. But I was on my way home from work, dressed reasonably, shaved and groomed and all that.
I even told him i'd wait for them to show up and we could all have a nice talk. By that point, the cashier had finished, he'd made no move to call so i left. He kinda followed me to the door and just stood there while i walked away.
I feel kinda bad for the cashier. He was young, looked like a highschool student or something. He looked really uncomfortable and really tried his best to be completely uninvolved. I was extremely polite with him. Told him to have a good evening and thanked him profusely for the pens. This seemed to anger the security guard more.
n.b. I worked for them as a part-timer (aka 'Rookie Agent') from 98-00 while I was in high school before the company was acquired by Best Buy. I stopped working there when the founder decided to unexpectedly let go of all of the part timers for whatever reason.
I’m not sure what point you’re trying to make?
As a friend, I setup a precision workstation for a small business owner. Part of this setup was a hardware raid 1 array. (He wanted a fast machine that was very reliable. His money, ¯\_(ツ)_/¯).
He took it to the Geek Squad to have a printer setup on it. These idiots destroyed the raid array while doing idk what complimentary scan or wtf ever. The friend had also stopped using the dropbox drive and used the regular user's folders to save stuff.
This did not end well. It was judged to be my fault for using poor quality hardware and software. He bought a gaming desktop from Best Buy. I learned a lesson.
In the UK, Office Outlet (formerly Staples) was placed in administration last week. [1]
Is there a business that doesn’t try and suck out your wallet with ad-ons, premium packages and options of dubious value?
1) Circa 2009, scammy "PC Diagnosis" scam starts.
2) Feb 2012, class action filed against Support.com for scareware up-selling a subscription service. [1]
3) Nov 2016, two TV affiliates run similar tests finding they're ripping off customers. [2]
4) Nov 2016, Office Depot discontinues the scam.
[1] https://en.wikipedia.org/wiki/Support.com
[2] https://www.pcmag.com/news/349821/office-depot-caught-sellin...
I feel like this could use a postmortem more than what feels like a congratulatory press release.
I'd be curious to know if there were complaints filed with the FTC prior to November 2016.
Support.com followed similar practices of other scanning software like MBAM (MalwareBytes) and SAS (Super Anti Spyware) at the time. In fact, Support.com acquired Super Anti Spyware.
The big problems were:
a) their staff is incredibly poorly trained, mostly because they barely pay above minimum wage to these workers, their training barely covers more than the UI of their tools and they're pushed on resolution time. These workers don't have much skill and don't have much reason to care. They basically don't know the difference between spyware/adware and infections.
b) Office Depot was upselling this on brand new computers which are bundled with loads of adware. Effectively they were telling customers that their brand new computers were infected.
Support.com is an incredibly stupid company who repeatedly hired their business development people from failed companies (ex-Radio Shack, CompUSA and Circuit City hires were the rule, not the exception). That said, they weren't the only bad actor here.
Also, nobody should be surprised that this company was founded by Mark Pincus of Zynga fame.
The reality is that everyone gets an urgent call from a sales rep about some vague characteristics of your water that urgently need to be corrected by one of their $7,000 water softening systems that nobody actually needs. The salespeople are relentless, they call daily, and insist on finding a time when "both spouses" will be home to listen to their pitch. I haven't been subjected to that but I'm sure it doubles their chances of one person caving to their high pressure sales tactics.
When I first came across this, I was stunned that a big name retailer with a lot to lose would do something so shady and unethical. I wonder if they even actually do test the water and would notice or tell you if it was actually loaded with lead or something else.
(Relevant to your post, if you actually want a water test (in the US), check with your state's cooperative extension -- they probably offer something unlikely to be associated with salesmen, e.g. Virginia: https://ext.vt.edu/food-health/home-water-quality.html )
I don't know how prevalent this was, but I was trained to lie to customers in order to sell them. I was told the warranty would cover any damage to products at all, and 5 months in I finally read the fine print and realized I'd been used to scam hundreds of people. Quit shortly after.
In a standard class action lawsuit, the lawyers for the plaintiff (if successful) get a pretty nice cut of the settlement, and the remainder is dispersed to class members.
But if the settlement is with the FTC, does it get its own cut, or does the entire settlement amount go out to class members?
https://www.nytimes.com/1992/06/12/business/accusation-of-fr...
Funny, that's precisely what I would suspect it was.
I was only using it to help someone who couldn't work out how to do something really basic, just get music from their PC to their phone or whatever.
It felt to me like Apple was deliberately making things overly difficult to force less-patient people into their ecosystem of paying for songs on every device separately and not downloading drm-free mp3s that you actually own. This was a long time ago.
I was left thinking that there's no way a billion-dollar company could put out something this unintuitive and shitty unless they had an ulterior motive.
I forget the details but it was super painful and I will lead a happier life if I never have to deal with it again.