Re. KXTDA at Low Low Prices on the web:
Panasonic *is* cracking down, they are vigorously pursuing action against at least one case of the type you've described.
Offers to sell at "low low prices" via the web are de-facto fraudulent because:
1) Only certified dealers are allowed to sell KXTDA.
2) Certified dealer contract forbids advertising of prices on web sites.
3) In the event someone tried (2) they would lose (1) and therefore be unable to provide access to the firmware which is required in order for the system to operate, and unable to provide any kind of warranty support for the products.
4) If I'm not mistaken (I am not a lawyer), there is a standard legal presumption of warrantability for new merchandise unless specifically disclaimed by wording such as "goods sold as-is." Therefore unless these companies disclosed that they could not provide firmware or support, and that the customer was basically "on their own," such sales would be fraudulent because the customer would presume that, at minimum, warranty repair support was available.
5) Some of these types of sellers make claims on their websites about the pricing & advertising policies of the manufacturers of goods they sell. Some of those claims are patently false and misleading, and therefore damage the reputation and brand equity of companies whose merchandise are sold with reference to those claims. Those claims are also fraudulent because they are false and misleading with respect to the manufacturers' intentions.
As I understand it, Panasonic's rationale for (2) is that those sellers cannot provide adequate service to distant clients, including on-site service, and are therefore having a negative impact on Panasonic's reputation and brand equity.
Panasonic's firmware is intellectual property; Panasonic has every right to set terms and conditions for access, as does any other software maker. Since a PBX is intended for connection to a public network, where there is a risk that incorrect installation & programming can result in hacker attacks that cost clients significant money (e.g. $20K for a weekend's worth of hacked calls to Timbuktu on client's lines), Panasonic is fully justified in taking steps to assure that its dealers are technically qualified through a certification process and dealer contract. In other words, Panasonic's restrictions on access to its firmware are not arbitrary or capricious, they are demonstrably well-founded.
Therefore what I recommend when you run into a client who says "but I found it at Low Low Prices on ScrewMe.com's' website," is to send them a written statement explaining that those sales are most likely fraudulent, and explain the details. A full explanation will at least inform them of what they're getting into. Write up a standard document on this, so you can email or fax it to prospects when this issue comes up.
We are under NO obligation to meet ridiculous prices set by fraudsters who can't support the product. We are under NO obligation to support systems that were sold through fraudulent selling tactics, any more than we are obliged to support systems that were outright stolen from someone else's warehouse. And as a matter of business ethics, we shouldn't provide aftermarket support for those systems because doing so is basically facilitating the fraudsters getting away with it.
Also we shouldn't get upset when we run into a prospect who tries to torque us by referring to someone's fraudulent selling on the web as justification for demanding a price cut. After we explain the circumstances to these prospects, they will either a) seek our services or those of reputable competitive dealers, or b) buy from the fraudsters and get screwed. If they choose to do the latter, we can't do anything about it, any more than if they choose to buy stolen goods with the serial numbers scraped off. Consider that those prospects are "lost causes" from Day One, and go on to your next sales case.
What I'd really like to see happen, is for legitimate certified dealers to get together and launch a class action suit against the fraudsters, on the ground that the frauds are directly impacting our own legitimate business in the same manner as the purveyors of stolen software impact legitimate software sales and support.
If there are any lawyers in the house, I'd love to know what you have to say about this.
-George Gleason, PBX Engineer (I'm a geek, not a lawyer!) Cooperative Digital 510-843-2667 extn 205
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