Monday, March 8th 2010

Intel Steps into Alleged Counterfeit Core i7 920 Sale Issue

After last week's report on some of Newegg.com's customers receiving what the store calls "demo boxes" that it described to have been accidentally shipped by one of its "long term partners", Intel stepped in with a clarification on how it looks at these anomalies. In a statement to HardOCP.com, Intel's Dan Snyder said "Intel has been made aware of the potential for counterfeit i7 920 packages in the marketplace and is working to how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits. Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help."

The "examples" Intel is referring to in the statement are these so-called "demo boxes", apparently 300 of them, which could be out on the loose. Meanwhile, Newegg.com is making efforts to get in touch with each of the affected customers and rush-delivering genuine merchandise or providing 100% refund, depending on what the customer chooses. While the whole episode seems to have taken a toll on Newegg's image as one of the most reliable, efficient, and competitive online retailers which it built over years, in the line of fire seems to be its "long term partner", a certain distributor in charge of these Intel processors. The same company sent cease and desist letters to some online publications to withdraw their reports on this issue, blaming them for publishing "untrue statements" about it. However Intel's statement adds clarity to the issue. Indeed some customers may have received "counterfeits", and indeed there are no such things as "demo boxes", at least as far as Intel is concerned. That said, whoever is behind these "demo boxes" still stands to face the law for infringement and imitation of Intel's product design, and trying to profit from it.


Sources: HardOCP.com, TechEYE.net
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104 Comments on Intel Steps into Alleged Counterfeit Core i7 920 Sale Issue

#2
FordGT90Concept
"I go fast!1!11!1!"
They had to at some point. There is a criminal amongst its ranks or distribution chain.
Posted on Reply
#3
mikek75
Obviously being in the UK I couldn't use Newegg anyway, but they've really shot themselves in the foot by the claim that they were "demo boxes". Thats just outright dishonest lies. Any company can be caught out by counterfeiters, but the only way to deal with it is complete honesty and acceptance. "Bullshit baffles brains" only works on officers, it destroys reputations. The Newegg PR dept want sacking for this!
Posted on Reply
#4
Pickles24
I imagine it's not a good Monday morning at the Egg today..
Posted on Reply
#5
Mescalamba
Did I get it correctly that those CPUs are "fake"? Hows that even possible?
Posted on Reply
#6
btarunr
Editor & Senior Moderator
by: Mescalamba
Did I get it correctly that those CPUs are "fake"? Hows that even possible?
Simple, they're not CPUs, but pieces of metal and plastic that make the package look real from the outside :)
Posted on Reply
#7
Mescalamba
by: btarunr
Simple, they're not CPUs, but pieces of metal and plastic that make the package look real from the outside :)
Just "OMG".
Posted on Reply
#8
Yukikaze
by: mikek75
"Bullshit baffles brains" only works on officers
I take offense :nutkick:

Whoever pulled this switcheroo off better be, for his sake, waaaay gone and with a good escape plan, or his ass will get sued into the next dimension so quick he won't even be able to afford a lawyer - That's even aside the criminal case.

Me ? I wanna see him caught and put on trial. Ordering a 300$ CPU and getting a a PoS fake ranks high up on the list of sucky things that could happen in eCommerce.

Newegg really did shoot itself in the leg with their public statement, though.
Posted on Reply
#9
mlee49
I'm glad to see Intel speaking out. They need to confirm or deny that these Demo units were made.

I'm still smelling mafia ties to these productions. Who knows could have been a couple college guys that swapped a pallet of 920's at Neweggs distrobution center.
Posted on Reply
#10
tigger
I'm the only one
This wasnt no college guys,it took some sort of production setup to create 300 of these fakes.i'd say some sort of organised crime ring myself,with a patsy in the db centre to do the switch.I bet there are a few db workers who have gone afk ;)
Posted on Reply
#11
Pickles24
Thing is.. D&H Distributing is threatening HardOCP.com for investigating, and supposedly throwing them under the bus.. Everyone is pointing fingers and someone will pay a hefty price..
Posted on Reply
#12
newtekie1
Semi-Retired Folder
by: mikek75
Obviously being in the UK I couldn't use Newegg anyway, but they've really shot themselves in the foot by the claim that they were "demo boxes". Thats just outright dishonest lies. Any company can be caught out by counterfeiters, but the only way to deal with it is complete honesty and acceptance. "Bullshit baffles brains" only works on officers, it destroys reputations. The Newegg PR dept want sacking for this!
You do realize that it is far more likely that D&H told newegg they were demo boxes shipped on accident, and newegg just passed the story on, right?

Besides that, the only way they could have shot themselves in the foot would be to not take care of the customers, and they did that very quickly. They can say whatever story they want.
Posted on Reply
#13
n-ster
I wonder if this hurts their (newegg's) sells. I mean, despite this, they are the most trusted and have great customer service.

and +1 to newtekie1
Posted on Reply
#14
DannibusX
I can't wait to see how this story unfolds. Props to Newegg for getting their customers squared away quickly.
Posted on Reply
#15
OVRKIL
The question now is where did those 300 920s go? Has there been a flood or them on ebay!?:shadedshu You would think that the perps would try to get those sold ASAP!
Posted on Reply
#16
btarunr
Editor & Senior Moderator
The thing is customers shouldn't care who D&H is. It's Newegg they're dealing with, not its suppliers. So to the customer, it's Newegg that called them "demo boxes", aside from the fact that they're now resolving the issue.

Now to the above if you reply "then it shouldn't matter what story Newegg tells its customers", then the reply is "no, it does matter. When customers pay $300 for something, they deserve to know exactly what was shipped to them, and why they should spend another $10 shipping it back to Newegg to get a replacement or refund."
Posted on Reply
#17
newtekie1
Semi-Retired Folder
by: btarunr
The thing is customers shouldn't care who D&H is. It's Newegg they're dealing with, not its suppliers. So to the customer, it's Newegg that called them "demo boxes", aside from the fact that they're now resolving the issue.

Now to the above if you reply "then it shouldn't matter what story Newegg tells its customers", then the reply is "no, it does matter. When customers pay $300 for something, they deserve to know exactly what was shipped to them, and why they should spend another $10 shipping it back to Newegg to get a replacement or refund."
Very true, but the customers that are digging deeper to discovery that they really aren't demo boxes, are also the ones that will care who D&H is.

The customers that shouldn't care who D&H is are the customers that shouldn't care if they really are demo boxes or not, and are the same customers that only care that they get what they paid for in the end.

The customers that paid $300 don't care what was shipped to them, they don't care if it was a demo box or a counterfit, they just want what they originally paid the $300 for. And newegg is assuring that, as they are sending out replacement very quickly, I believe with overnight shipping if what I've read is correct, without the customer sending the original "demo" box back.

And fankly, if I was one of the customers that recieve one of those bad units, my only concern would be getting the right part that I paid for, not why I got what I got. Newegg could tell me aliens came down and abducted my i7, I wouldn't care, as long as a real i7 was shipped to me.
Posted on Reply
#18
mlee49
Highly doubtful Newegg will request people to pay anything to return their item for refund/replacement.
Posted on Reply
#19
btarunr
Editor & Senior Moderator
by: newtekie1
Very true, but the customers that are digging deeper to discovery that they really aren't demo boxes, are also the ones that will care who D&H is.

The customers that shouldn't care who D&H is are the customers that shouldn't care if they really are demo boxes or not, and are the same customers that only care that they get what they paid for in the end.
No, the customers are digging deeper into whether it was "demo boxes" or "counterfeit merchandise" that was shipped to them. They are entitled to know that, just as you're entitled to know how many calories a serving of your cereal gives you. That said, since they're dealing with Newegg and not its suppliers, it's between them and Newegg. Hence "demo boxes" comes to them from Newegg.
Posted on Reply
#20
newtekie1
Semi-Retired Folder
by: btarunr
No, the customers are digging deeper into whether it was "demo boxes" or "counterfeit merchandise" that was shipped to them. They are entitled to know that, just as you're entitled to know how many calories a serving of your cereal gives you. That said, since they're dealing with Newegg and not its suppliers, it's between them and Newegg. Hence "demo boxes" comes to them from Newegg.
That is an undeserved sense of entitlement. They are only entitled to what they originally paid for. It would be nice to know the truth, but they certainly aren't entitled to any thing beyond what they originally paid for.
Posted on Reply
#21
btarunr
Editor & Senior Moderator
by: newtekie1
The customers that paid $300 don't care what was shipped to them,
Oh they do, that's why it became such a big issue, and not one of the many customer discrepancies Newegg addresses on a daily-basis.

by: newtekie1
they don't care if it was a demo box or a counterfit, they just want what they originally paid the $300 for.
Then they do care, and since their receipt of merchandise got delayed by a week if not more, they all the more deserve to know what went wrong.

by: newtekie1
And newegg is assuring that, as they are sending out replacement very quickly, I believe with overnight shipping if what I've read is correct, without the customer sending the original "demo" box back.
I've a copy of the email Newegg sent to affected customers. It goes like this:
Dear Valued Customer,
It's been brought to our attention that you may have received a Demo Version of the Intel Core i7 Processor you recently purchased. We would like to first and foremost apologize for any confusion this may have caused you. Please take a moment to examine the product you received thoroughly to determine if you in fact received the wrong product. The Demo Version of these CPUs were purchased between March 1, 2010 through March 4, 2010 and will have FPO/BATCH# 3938B006 printed on the product's packaging. Additionally, the Part Number on the heat sink will read CNFN936612 and there will be no wiring on the heat sink itself. If you have determined that you received the wrong product, please except our deepest apologies. To resolve this matter immediately, simply forward this email to both xxxxxx@newegg.com and xxxxxx@newegg.com and state which of the two following options best suit you:
Full Refund - We are more than willing to issue an RMA for a full and complete Refund.
Replacement for the Correct Product - If you are still interested in the product, we will issue an Advanced Replacement RMA to get the product to you immediately.
We would like to once again extend our sincerest apologies for the inconvenience and we appreciate your cooperation in this matter. Kindest Regards.

Once You Know, You Newegg.

Your Newegg.com Customer Service Team
So it requires you to follow a standard RMA procedure - another couple of days' delay (in sending the item to newegg, them processing it, them approving it, ), and then shipping you a new chip.
by: newtekie1
And fankly, if I was one of the customers that recieve one of those bad units, my only concern would be getting the right part that I paid for, not why I got what I got. Newegg could tell me aliens came down and abducted my i7, I wouldn't care, as long as a real i7 was shipped to me.
Lucky for you. If I were a smalltime system builder running behind a deadline, I'd be mad pissed at receiving a demo box that could hurt my business (overstepping deadlines).
Posted on Reply
#22
AsRock
TPU addict
by: mikek75
Obviously being in the UK I couldn't use Newegg anyway, but they've really shot themselves in the foot by the claim that they were "demo boxes". Thats just outright dishonest lies. Any company can be caught out by counterfeiters, but the only way to deal with it is complete honesty and acceptance. "Bullshit baffles brains" only works on officers, it destroys reputations. The Newegg PR dept want sacking for this!
They said there supplier said they were demo boxes not newegg. So Newegg are not covering any thing up as we know.

EDIT:

by: btarunr
The thing is customers shouldn't care who D&H is. It's Newegg they're dealing with, not its suppliers. So to the customer, it's Newegg that called them "demo boxes", aside from the fact that they're now resolving the issue.

Now to the above if you reply "then it shouldn't matter what story Newegg tells its customers", then the reply is "no, it does matter. When customers pay $300 for something, they deserve to know exactly what was shipped to them, and why they should spend another $10 shipping it back to Newegg to get a replacement or refund."
Every single item i had to ship back to newegg has been FREE to do.
Posted on Reply
#23
btarunr
Editor & Senior Moderator
by: newtekie1
They are only entitled to what they originally paid for. It would be nice to know the truth, but they certainly aren't entitled to any thing beyond what they originally paid for.
That's like saying you paid $500,000 on a house and your builder promised to give it to you in "a guaranteed" one year, and ends up taking two years to do that, and that your knowing the truth behind the delay is an "undeserved entitlement".

Besides, we're missing the point. According to Intel, these are certainly not "demo boxes". So one of these: Newegg or its supplier, is in for trouble...part of what's making news.:)
Posted on Reply
#24
WhiteLotus
That's a nice email that btarunr posted. It is nice of them to offer the choice, instead of just making them have the CPU.
Posted on Reply
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