The sad thing is many US companies that do not have a presence in the EU are falling for it and collecting the tax. .
It's not the only trick that some US (but also Australians, Canadians etc) companies are doing to collect extra (but illegal money). The most common trick is to detect your location and shows theire prices in Euros but NOT exchanging them but rather showing the same price in euros.
For example a dating site (http://www.internationalcupid.com). Their normal one month Platinium membership costs $35.95. If they detect that you're belonging to a European country, the same membership with the same facilitities costs 35.95 Euros while the exchange rate is 32.92 Euros. Once I sent them a complain email stating that this is illegal asking them to refund me the difference otherwise I'll report then, and ...voilla in less than 24 (!!) hours not only they issued a FULL refund but they offered me a complimentary Platinium Membership for 3 months !!
But even known sites like pctools.com are doing the same
It's not the only trick that some US (but also Australians, Canadians etc) companies are doing to collect extra (but illegal money). The most common trick is to detect your location and shows theire prices in Euros but NOT exchanging them but rather showing the same price in euros.
For example a dating site (http://www.internationalcupid.com). Their normal one month Platinium membership costs $35.95. If they detect that you're belonging to a European country, the same membership with the same facilitities costs 35.95 Euros while the exchange rate is 32.92 Euros. Once I sent them a complain email stating that this is illegal asking them to refund me the difference otherwise I'll report then, and ...voilla in less than 24 (!!) hours not only they issued a FULL refund but they offered me a complimentary Platinium Membership for 3 months !!
But even known sites like pctools.com are doing the same
Oh well now that is screwed up IMO. That is a practice I would NOT do myself. I list everything in US dollars only and do not expect someone to pay more or less depending upon where they live.
Oh well now that is screwed up IMO. That is a practice I would NOT do myself. I list everything in US dollars only and do not expect someone to pay more or less depending upon where they live.
In no way I wanted to blame all US companies. The big part of them are honest companies. But always there are some "smarties".
Seems to me the US went to war over a similar thing over 200 years ago.
Being a historian by profession and such, I wonder if there isn't just a little difference 240 years ago it was the Americans paying the taxes (or not paying). It's not like the EU wants to tax Americans in America, is it?
sent them a complain email stating that this is illegal asking them to refund me the difference otherwise I'll report then,
Where is it illegal though? Not in the USA. They have to pay a fee to convert Euros to Dollars so giving it to you for the exchange rate that day is also unfair to them. You got very lucky someone offered you anything.
In the USA, in towns close to the Canadian Border, especially along the New York State Thruway which is a highway that gets a lot of Canadian traffic, for years you could use Canadian Dollars to pay but at the exchange rate of $2 Canadian = $1 USA. That rate continued for years and years, even during times where the Canadian dollar was actually worth more than the American dollar- but the thing is- it's only worth more to some banker or currency trader on Wall Street. In the small towns and the people collecting the money, real places, won't take Canadian money. If you try to pass a Canadian quarter as an American one you may get it thrown back at you if the seller notices it. You can't say "but it's worth 27 cents" because it ain't worth anything to me if I can't put it in a vending machine or whatever else I might do with a US quarter.
The fact it costs more to do business in another currency should be a natural advantage for a company native to the local currency to open- they should be able to compete for cheaper locally than an overseas company.