Wednesday, April 4, 2007

Microsoft accused of bait-and-switch

According to a post on Slashdot, a class action lawsuit has been filed against Microsoft corp for deceptive marketing practices. The suit claims that Microsoft allowed PCs to be labeled Windows Vista compatible when the PC was only able to support Windows Vista Home Basic, a stripped down version of the software that excludes features like the "Aero" on-screen appearance, Media Center PC interface, and Flip 3D window-switching. Consumers were led to believe they had purchased a PC that had the capabilities to handle all the new features of Windows Vista which Microsoft has been advertising in their unprecedented marketing campaign for the system. Microsoft contends that it went above and beyond to try and communicate the computer specifications necessary to run the new system but the lawyer representing the plaintiffs indicates that this information was not conveyed in the "Windows Vista Compatible" stickers.

This lawsuit could do a lot of damage to the Microsoft image the company has been working so hard to improve. Any time there is a new product launch there is the need for positive publicity to ensure the product does well on the market. A lawsuit like this will surely cast a shadow over the company and the new product, especially if Microsoft loses the dispute.

This is similar to the case of Intel which we read about in Naked Conversations. They realized their new chip was not compatible in a small number of computers but chose to ignore the issue. When this was discovered the small problem became a big one and the product suffered immensely. I do not foresee this happening to Microsoft to that extent but consumer confidence will surely be affected by the negative press. Robert Scoble had better be ready.

1 comment:

Tricia Lyons said...

After reading your post about this possible lawsuit against Microsoft, I decided to read the Slashdot article. I completley agree with what you said about this attempt as a deceptive marketing practice. It is obvious that the product would have not been as successful if customers knew ahead of time the limitations of it only being applicable to the stripped down version.

Lawsuits like this one do cause a big stir and cause for concern among consumers. Although personal preferences determine what product is best for a consumer a known past of being deceptive or skirting around the truth is always detrimental to any question because it begs the question of how does one know when a company is being completely truthful. The example you gave from Naked Conversations rings true in the possibile negative effects that can result from a situation like this one.

I thought this was a great article and believe that the effect on such a huge conglomerate such as Microsoft will not be horrific. But I am curious as to what stand you think Robert Scoble should take on this particular issue?