Special Reports

LOS ANGELES (CBS) ― CBS 2 News goes undercover to expose a "secret policy" at a local Office Depot. A policy that could force you into purchasing an expensive extended warranty in order to get in on the low advertised price! CBS 2 Investigative Reporter David Goldstein has the story.

At an Office Depot in La Cresenta, we uncovered a hidden policy -- one that determines if you're able to purchase a laptop.

David Goldstein: "That's dishonest?"

Former Employee: "It is, it's very dishonest. But we have to follow our rules."

Any time you buy a computer or big ticket items these days; you're hit with a big pitch to purchase an extended warranty or extra software.

"This is a really good deal because you save at least $200," sales represented pitched to our undercover producer.

It's the store's way to make more money.

"All of the money you pay for a warranty is profit. It's really an amazing rip-off in terms of the price they charge people for warranties," said consumer attorney Harvey Rosenfeld.

But what's allegedly happening in this Office Depot store in La Cresenta goes beyond just trying to convince customers to buy some extras. Listen to this insider – who describes what he says is the store's secret policy.

Former Employee: "No laptop will leave the store without a warranty whatsoever."

He doesn't want to be indentified. But this former sales person says the unwritten rule is "no warranty – no laptop." He claims it came from the manager who allegedly told them to lie to the customers about whether the computer was in stock.

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

We went undercover to check it out.

Undercover Producer: "Do you guys have any of these in stock?"

Sales Representative: "I could double check for you."

Undercover Producer: "Ok, could you please?"

First we sent this man in to try and purchase a laptop.

Sales Representative: "Did someone explain to you regarding this special we have?"

The salesman tried to sell him a warranty for $169.

Undercover Producer: "No I don't have enough money for that."

We said no. The salesman checked the storeroom and came back.

Sales Representative: "They sold out this morning."

He said out of stock. We asked for another model.

Sales Representative: "No sir too."

Undercover Producer: "You're out of that one too?"

Sales Representative: "Yeah I am."

Undercover Producer: Both of these?

Same answer. Minutes later we send in this woman, who asked for the same laptop.

Undercover Producer 2: "That sounds like a good deal."

This time we agreed to the warranty.

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

Undercover Producer 2: "You have this one?"

Sales Representative: "I actually have both of them."

Both were in stock.

She actually brought one out of the storeroom to sell us. A few days later we tried again.

Undercover Producer: "What about these? Do you have any of these?"

Sales Representative: "I don't have that either."

No warranty. No laptop. But minutes later they found it. With a warranty the same laptop appeared.

"That's false advertising. It's a bait and switch practice that should be stopped," Rosenfeld said.

David Goldstein: "Are you refusing to sell laptops to people who don't buy a warranty or expensive software?"

I tried to get answers from the manager, Ed Kurkurian.

David Goldstein: On two occasions we sent someone in. The first person didn't want warranty and was told computer not in stock. The second person wanted warranty or software and salesperson brought it out from backroom."

Manager Ed Kurkurian: "I have no comment on that, I don't know…" 

David Goldstein: "How do you explain that?"

Manager Ed Kurkurian: "I have no explanation, sir. You can call our corporate office."

We did just that. Office Depot investigated and told us in a statement:

"A manager at that store was providing guidance for offering warranties that was inconsistent with the company's practices. We have taken appropriate actions, including the termination of the store manager. We have no reason to believe that this conduct is occurring at any other locations."

Our source says it was going on since before Christmas hundreds of customers may have been turned away and denied the right to buy a laptop without added extras.

Former Employee: "It is, it's very dishonest. But we have to follow our rules."

We went into several other Office Depot locations in Southern California. Most of them hit us up for the extended warranty, but when we declined to purchase it, they did offer to sell us the laptop -- unlike the store in La Cresenta.

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