Topic: Has anyone actually filed an FTC complaint? (Read 4047 times)

There is obviously a WIDE gap in the market place and anyone with the know how and ties in India, China or Europe could just as easily start up a run and get something to market as fast or faster than BFL. If Avalon can do it... there are certainly people who could do it as well and even faster. I can't see this being a 1 horse race with Avalon being the only supplier too much longer. At some point there will be a new player in this fight. In the mean time the FPGA's and GPU's are making bitcoin well enough for the next few months to come, maybe more, considering the slow trickle of Avalon's that will come online. I can't see why anyone would buy any BFL products from this point forward... and hopefully we all will see a new player come to the market place soon. The market could see someone come in with a much smaller and more efficient chip and at a lower cost simply to bury BFL before it even gets anything out the door. 

PayPal does have a policy relating to processing transactions for the sale of digital currencies.  I can't see that policy extending cover anything and everything Bitcoin related, though.  If they intervened here, it would be more likely to be because products haven't been delivered in a timely manner than because the hardware itself is Bitcoin related (there's nothing stopping you using PayPal to sell Bitcoin T-shirts, for instance).  Again, this isn't likely to happen unless customers open disputes with PayPal and they have no incentive to do that while BFL is honouring refund requests.


It's precisely this "must have an ASIC ASAP" attitude which allows BFL to do what it's doing.  People could cancel their orders/hold off ordering until BFL has actually delivered and closed the order/delivery time gap but they want to be "in on the ground floor of the next big thing".  BFL exploits that just as pirate did, but at the end of the day the choice to hang in there is being made by BFL customers - their fear of missing a "once in a lifetime chance" is greater than their fear of being screwed by BFL.  Nobody "needs" an ASIC right now just as no-one "needed" to give their BTC to pirate.  At the end of the day, people are responsible for their own bad choices even when those bad choices have been encouraged by others. 

Hell, you don't even hear BFL customers complaining that the timeline between delivery of Batch 1 and the bulk order (which would have given early adopters a significant advantage) has been compressed any more - lots of them are planning to order more units and they want those units sooner rather than later even if it means hash rate will climb much faster than under the original timeline.

That's the beauty here! The BFL captives investors watch as ASICMiner brings 6+Th online and Avalon guys start getting their rigs, so they get antsy and complain to BFL, who mysteriously has a new policy of transparency. Never mind that none of their new fairytales timetables are met either, it keeps the captives investors from getting too restless, their products are JUST around the corner afterall...just as they have been since June of 2012. When that begins to wear thin the magical unicorn blood chips go to the 24hr bumping facility for a couple weeks, the packagers, testers, blah blah. There's always some new juicy tidbit or perty picture to keep people thinking their money making machines are JUST around the corner.

As to new customers where are they supposed to go? bASIC is gone and Avalon is only doing batches. Meanwhile Josh and BFL customer service are inexplicably on different pages about just how long an order placed now will take to deliver. The most public version being the most favorable to BFL's bottom line of course.

It doesn't make any sense at all to me to hold onto an order through all that scammy shell game crap, but obviously people are doing it, and many of those people are otherwise perfectly reasonable folks. Ask them what they're thinking. I know a lot of the newbies that are mulling it over have no idea about BFL's history and haven't a clue who they're getting into bed with. Certainly if there was another vendor with a bottomless pre-order window and a slick deceptive marketing strategy then people would be torn between the two, but Tom already closed shop and got HIS scammer tag. BFL is still kickin and now people have only one scammy vendor to order from.  

By the way, on BFL forums, there are a few users complaining they can't pay with Paypal. Some think it is a site error and BFL staff says they don't know, just try again.

I wonder if Paypal found out that BFL is doing Bitcoin Related transactions. I recall on the forum people said Paypal will cancel orders if they know it is Bitcoin related. Any truth to this?

Perceived value of order position really only applies to those who ordered very early, though.  It doesn't explain the willingness of people to order now, knowing that they'll be waiting at least 2-3 months to receive their units and it doesn't explain those who can't wait to use their discount vouchers (having already waited 9 months for their first units, they're willing to order more and wait months to receive those - knowing that the hash rate will have risen considerably by the time those units arrive).  

The only way BFL ASICs are going to be delivered in a reasonable amount of time is if production greatly outstrips the rate of new orders - and that's not likely to happen any time soon given that people have only 60 days to use their discount vouchers once BFL ships.  No-one at BFL is even giving an estimate on when they expect to have caught up on back-logged orders any more, but it's not likely to be in the first half of this year.  As things stand now, it's going to be a very long time before BFL has ASICs available for immediate delivery and anyone who can step in to fill that gap has the chance to take market share away from them. 

This is the eventual clusterfuck I was imagining would happen.

People see others get theirs, and then pound the doors demanding on where their device is.

One lone BFL guy isn't going to be able to tell them it will ship in June or July. It'll end in a clusterfuck in one way or another. That is my 2 LTC (if I had any!)

I didn't forget about greed as a factor, I just recognize that BFL recognized the greed factor when they planned their scammy bait and switch. The order line queue system has ensured that the vast majority of people that have been swindled will not cancel due to the perceived value of their order position. That's what makes them captives, so that they can experience the 3rd degree Stockholm syndrome previously alluded to.

Legal action for what?  There's a massive difference between a company breaking some regulation and being potentially open to fines and customers having a viable lawsuit against them.  To date, they haven't refused anyone a refund.  While I think that their marketing has been extremely deceptive (which may - in itself - be of interest to consumer protection agencies), what are anyone's actual, provable damages at this point?  What - exactly - makes BFL customers entitled to more than just a refund?

On the one hand, BFL's repeated assurances over the past few months that delivery is only a few weeks ago have no doubt been relied upon by some customers (despite repeated evidence that such assurances cannot be relied upon).  On the other hand, customers have actively chosen not to cancel their pre-orders as the price of Bitcoin rose - they have essentially done nothing to mitigate their "damages".  

While BFL may be technically on the wrong side of consumer law in this situation, that's not necessarily any great advantage to their customers until and unless they start refusing refunds.


You forgot greed.  People aren't cancelling their orders because they want to be among the first to mine with ASICs.  If someone else was offering large quantities of ASICs available for delivery right now, I suspect BFL would see a lot of cancelled orders.  Batch 1 and 2 customers might still hang in there, but I suspect that many people who can't expect to see a BFL ASIC until mid-year even if there are no further schedule slips would jump ship.

Investors with 3rd degree Stockholm syndrome and a community with a long history of defending it's scammers are in BFL's favor. Toss in the occasional sock-puppet poster and a PR shock jock figurehead that verbally assaults any outspoken outliers. Voila, successful vaporware business. Box of fans table for none ready in just 4-6 weeks.

I'm frankly surprised no one has pursued legal action against BFL at this point.

You would never know unless you go through with it, your best bet is to look into it yourself call the FTC they got a hotline and ask them questions.

Ok, so we can get compensation for lost revenue as a preorder customer. 

I am just trying to understand the purpose.  Not taking sides, just trying to figure it out.

Right off the BFL website


This is a clear cut FTC violation. Nov +30 days = months ago lol

I got a letter from my attorney generals office, then a response from BFL. It was online.
My state AG asked me if I was satisfied with the outcome, or if I wanted to pursue.
The reason I did not pursue was cause of the responses like dykast said, but that was also 6 months ago.
If the FTC fines them the fine may be compensation from losses resulted in late delivery, meaning you the customer will get a direct payment from the FTC as settlement.
I hope you understand all of you that pre-ordered invested in BFL have already lost revenue from their performance. They were supposed to be the first to market... that was one of the huge selling points they had.


That says returns not refunds, you must have the product to return it lol

https://products.butterflylabs.com/sales/guest/form/

Not trying to defend them.  Just showing you it isn't that hard to get a refund.

Their site explicitly says that they do not offer refunds, now. I believe the reason that the FTC exists partially is to protect consumers. If the ones that are mad just get a refund, that hardly protects others from having illegal business practices used against them.

If 5000 people have already filed complaints, it would also make anyone thinking about placing an order potentially not if the FTC were to be walking in any day to shut them down and levy fines.

Listen clearly... this is not a "hey everyone, click this link and file an FTC complaint against BFL", I want to know if lots of people have or not. That is all. Troll once the results are in however you'd like.

While I understand people being mad and frustrated.  They offer refunds to anyone.   

What do you want to get out of the FTC complaint?

Refund doesn't mean they haven't broken the law. Again, I am just wondering how many people have. I didn't say that I even have a preorder. Just wondering since it seems to be threatened regularly.

Uh, refund.

Are you in the US? Did you just file online? Did you get anything more than a thank you for your submission? Unless they need specific more information, most people never hear another thing from them.

I guess that was the second part of the question. If you did file, have you heard anything else? And how did you pay? BTC or credit card?