NetSuite is facing a lawsuit from a skin care product retailer that alleges an overzealous salesman led them to buy a software system that utterly failed to meet its needs.
Gulf Coast Medical Group LLC, a Florida company that does business under the name of SkinMedix, had outgrown its website and shopping cart platform in September 2012 and began looking for a replacement that could manage both sales and back-office functions, according to a complaint filed this week in U.S. District Court for the Northern District of California.
Its existing system was managing an inventory of 3,000 products but SkinMedix needed something that could eventually handle a 20,000-item inventory.
After doing some research, SkinMedix president Aaron Kozol contacted NetSuite and subsequently "communicated extensively" in early 2013 with a salesman there, Donald Bizzaro, according to the complaint.
"Because of the high cost of NetSuites software solutions, Mr. Kozol specifically inquired about whether NetSuite could deliver a business solution that met all of SkinMedix's needs," the complaint states.
Bizzaro is "an aggressive salesperson" who told Kozol NetSuite's software would indeed satisfy SkinMedix's needs, it adds.
"In his overly zealous efforts to induce SkinMedix to purchase services from NetSuite, Mr. Bizarro made numerous false representations of fact," the complaint states.
Kozol had told Bizzaro that SkinMedix's Web store loaded pages slowly and inconsistently, and the company wanted a replacement that would deliver "ultra-high speed page loading and image rendering," according to the complaint.
Bizzaro told Kozol NetSuite could design and host a SkinMedix website that would provide "sub-second" page rendering. Kozol also stressed that NetSuite's software had to provide automatic currency conversions for people visiting the site from countries beside the U.S., as well as ARB (automatic recurring billing and reship), according to the complaint.
ARB "is an internet function where a customer can agree to have a seller automatically (a) send the customer a desired product on a recurring basis and (b) bill and charge the customer for the sale, eliminating the need for the customer to manually order the product each time the customer wants to purchase it," and was essential to SkinMedix's growth plans, the complaint states.
In response, Bizzaro told Kozol NetSuite's technology could meet all of these demands and a completed site would be ready for testing by August 2013, a few months before the busy holiday shopping season, according to the complaint.
Based on Bizzaro's assertions, SkinMedix signed a three-year software license with NetSuite and hired it to build the website.
"Immediately before executing the contract with NetSuite, Mr. Kozol contacted Mr. Bizzaro to express his concern that there did not appear to be any reference to the ARB functionality in NetSuites proposed contract documents," the complaint states.
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