David Goldstein Reports

LA CRESCENTA (CBS) ― He took the blame. Now, he's taking his company to task. The former manager of a local Office Depot who was fired over our recent undercover investigation of his store's warranty tactics now tells CBS2 investigative reporter David Goldstein he was only acting on orders from above.

"Do you think this policy was dishonest?"

"Yes."

"Lying to the customer?"

"Of course."

Former La Crescenta Office Depot manager Ed Kurkurian reveals what he says was the company's secret policy. Designed to get consumers to buy expensive extras on computers. One he says was handed down from his district manager to some Office Depot stores in Southern California.

"What specifically did he tell you to do?"

"Go ask questions and ask if they want a warranty. If customer doesn't want a warranty, go in back and pretend like you're looking for computer and come back and say no. We're out of stock."

"That's lying to the customer?"

"Yes."

We went undercover – and exposed it in our hidden camera investigation.

"Do you have any of these in stock?"

We sent in two people to the Office Depot location in La Crescenta. One asked for a laptop but didn't want an extended warranty.

"They sold out this morning."

He was told the computer was out of stock. Five minutes later we sent in a second person who asked for the same computer – only this time she agreed to pay for the warranty.

"I do have this one. So do you want to go ahead and get it?"

Miraculously, it appeared.

"That's dishonest?"

"It is dishonest."

This former salesperson who wants to remain anonymous says it was standard policy in La Crescenta.

"If a customer doesn't want to buy the extended warranty, we don't have it in stock."

"Are you refusing to sell laptops to people who don't want to buy expensive warranties?"

During our original investigation Kurkurian refused to talk to me. When we exposed what was going on, Office Depot fired him, saying he was to blame for instructing salespeople not to sell computers without warranties.

"Why did you decide to speak out now?"

"To clear my name."

He said he was told by the district manager to do everything – the manager even telling him the company loses money if they don't sell the warranty.

"Every $400 laptop we sell, the company loses $99."

And there are now allegations this so-called unwritten policy stretched even farther than Southern California, perhaps all around the nation. With hundreds, or even thousands of consumers affected.

The story was picked up by Laptop Magazine.

"We were really pleased you guys did a hidden camera investigation."

They did their own investigation and heard from Office Depot sales associates from around the country.

"At Office Depot in at least six regions of the country associates are routinely turning away customers who won't buy an extended warranty."

When we conducted our undercover investigation Office Depot told us the problem was confined to the La Crescenta store – but days later they sent out this memo to stores across the country, warning salespeople "under no circumstances...should an associate refuse to sell any product because the customer is not interested in purchasing an add-on product."

Office Depot says the memo is "not an indication of a widespread issue, but a demonstration that we put the customers first."

"You have this one in stock?"

Kurkurian claims he never personally refused to sell a laptop without a warranty. But he knows it was being done daily at the La Crescenta store – and others in Southern California. In fact, the company kept a daily record of how many warranties were sold – and pressured everyone to push them to customers.

"Everything was warranty, warranty, warranty."

I spoke with the district manager. He refused to comment about the allegations. Office Depot sources say as many as nine employees have been disciplined nationwide for refusing to sell laptops without warranties.

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