I Hate Rebates »
I refuse to shop at at least one popular computer retailer who would not honor their rebate. Even worse, they didn't mention this until about the fifth time I visited the store to attempt to get my promised rebate. This was even with proof of purchase and proof of rebate (the filled out forms as well as the original advertisement) in hand.
I'm sure that the rules for redeeming rebates make sense, in a Dilbert sort of way. After all, if they don't give out the rebate, they make more money on the product. So why not make it as difficult as possible?
It seems that the process must work something like this:
Step 1. Advertise a product with at least one mail-in rebate so that the price in the advertisement can be as low as possible (perhaps even free).
Step 2. Print the rules for the rebate in as small a print as possible so that people don't realize that there is only one rebate per product per household, at least one form is required (and often more than one), many times you have to request that information specifically or you won't get the rebate and the information required to get the rebate must be submitted to the rebate processor within a miniscule time window.
Step 3. Make the documents required for the rebate as complex as possible. Generally this is the rebate form and a proof of purchase - typically the original UPC code from the product and at least a copy of the receipt. I've even seen some rebates that won't allow a reproduction of the rebate form itself, even though you can only send in one. I guess they don't want you running a rebate clearinghouse.
Step 4. Require the person requesting the rebate to actually check on the status of the rebate at least once before even considering releasing the rebate.
Because of step 4, I now save everything related to a rebate when I purchase a product and submit the forms. A copy of the ad that shows the rebate price, a copy of the filled-out rebate form, a copy of the UPC code, a copy of the addressed envelope. Everything. But even with such precautions, it's come to the point where it's just not worth it anymore.
When I have to make multiple phone calls or store visits just to get my rebate, it's just not worth the $10. Don't get me wrong. I'm not letting them keep the $10 on a rebate that they promised to me. Not by a long shot. But I've recently decided that instead of dealing with it, I just won't buy those products. Sure, good deals are more difficult to come by. But wow - who would have thought how much more pleasant the shopping experience could be once you stop worrying about collecting your rebate?
Update: A recent entry in the category found that over 1300 unopened rebate forms were dumped by a rebate processor for Fry's. Whoops.
Comments (21)
I just refuse to participate in the rebate process. If I don't perceive the value at the full price, then I just don't buy it. I avoid Circuit City and Other retailers that advertise 98% of their products with the rebated price. Why do they call it reBATE? Cause they just keep RE Bateing the trap.
Posted by Bob Glass on December 11, 2003 8:23 AM
I also hate the rebate sale system. More and more stores and now even web sites are quoting thier prices after the rebate. I would like the FTC to require the advertisments to use the real price in the large print followed by the rebate price. I only buy a product that has a rebate if there is no other choice avaliable. Your major electronics stores such as Bestbuy and Staples and etc are off my purchasing list due to thier rebate policy . Now a web site that I had used a lot , Newegg is also joining the rebate mess. It also is now going on my list of no purchase locations. We consumers also have to pay the tax on the actual selling price plus the cost to apply for the rebate, Postage and copying, so the rebate amount is not the true value you are getting on the product.
How can we put a stop or change the current rebate and false advertisement practice the store are all using ??
Complain, complain I guess !
Posted by Don Morrow on September 27, 2004 7:15 AM
I will not buy any items with rebates.If everyone did the same thing.The retailers would stop offering them.Every rebate becomes a nightmare to try to collect on if you as much as get a finger smudge on the form it becomes invalid.WAKE UP AMERICA!Quit getting ripped off.
Posted by Dom on November 14, 2004 8:47 AM
It is also a money ripoff. For example, to make it easy i will simply round off the numbers i use to describe it. Lets say a product is $3000.00 and you can get a rebate of $1500.00. You check out and the total with the tax (10%) is $3300.00. Shouldnt the total including the tax be $3150.00? Why do they want to tax you on the full amount BEFORE the rebate? When you get the rebate in, do they reimburse you for the excese you were charged? NO THEY DON'T! I HATE REBATES AND DO NOT PURCHASE ITEMS THAT REQUIRE REBATES FOR BETTER PRICES.
Posted by Andrew Hohensee on November 28, 2004 3:39 PM
I refuse to buy anything that is attached to a rebate program. I have even gone so far as to get the manager at Best Buy and inform him that I will never buy a product that offers a rebate. I wish there was a national consumers movement to try and bring an end to this rip off system. I would surely support it.
Posted by Allen Fraley on December 12, 2004 9:19 PM
I hate rebates more than anybody. You send in all this crap and cut upc's off boxes and still get a letter back saying you wont get the rebate because of this or that. I'll want to sock every person that tries to sell me a rebate! I don't care if the rebate is 99% of the sale price it's not worth it. I think rebates are just a scam to get your mailing/consumer info and they make you jump so many hoops they probably only end up paying ten percent of them.
Posted by sik of this @#$% green on January 5, 2005 10:32 PM
I also hate rebates. I no longer shop at Bestbuy, Circuit City and Staples. And now that Newegg.com also joined the rebate mess. My shopping there is over also. I will search for a new computer hardware site, without rebates. I agree that all advertised price should be without the rebate first in the bigger print,then include the rebated price if necessary. But we all know this will never happen because the FTC is in bed with the coporate world.
Posted by D Morrow on January 16, 2005 9:16 AM
I would rather if the retailers had to put up with the retailing fiasca then foist it on the consumer. "Here, YOU keep the UPC and deal with those bastards"
Took me 5 months to claim a rebate, and yes, I had to annoy them with 3 emails.
Posted by Anish on January 19, 2005 6:49 PM
I hate rebates more that you hate rebates. I have been burned many times by attempting to collect rebates from Fry's Electronics. I have even been refused a rebate because of an incorrect form the store printed out for me and then failed to honor it. I have also been unable to return merchandise because I cut the UPC symbol from the packaging. I will never participate in a rebate program again.
Posted by T Lipman on January 21, 2005 3:09 PM
I hate rebates too. But, you can't deny that there are some great deals out there if you have the fortitude to battle over the rebate. In my experience, I have had to fight for each and every rebate I've ever applied for, but I consider that's part of the game, and it always feels great to win in the end. DON'T GIVE UP and don't give in, and you'll get your rebate every time.
By the way, I do think there's a conspiracy in corprate America to rip off millions and millions from consumers in many ways. Rebates, 50% of which go unclaimed, are only one of the ways consumers are getting systematically screwed. UPC scanners in stores is another. I'm scrupulous with checking each and every receipt I get from a retailer and AT LEAST 30% of the time, something's scanned wrong, or my change is wrong, to the retailer's benefit. Curiously, it never happens the other way around, i.e., to my benefit. WalMart, to cite just one example, is notorious for this. They always say "I'm so sorry", and correct the "error", but this happens so regularly, it can't be an honest mistake; I'm convinced it's a colossal systematic ripoff by corporations that most consumers never even notice, and they reap billions annually, a dollar at a time.
Posted by JOE C on February 5, 2005 1:37 PM
I too am frustrated at the rules and the time they make you wait. They require a street address, even though there is mail theft on my street, but I have to mail it to THEM to a mail box! I have stopped buying items that have a 10 dollar rebate, and send them certified and 20 minutes of study time to get the 200.00 one. Is it true that 50% are never sent in/? What a mess!
Posted by Brad Potter on March 20, 2005 5:03 PM
Rebates are just another way for the retailers to make money and screw the consumer. I get so sick of opening a sales ad from Best Buy or Circuit City and noting that 90% of their products require that you submit a rebate. Wake up folks! It is human nature to put off or just plain forget to mail in things like this and these retail giants who do everything to prove to you that you are their best friend RELY on this human nature to net them more money! Just think about it...during xmas, if just 100 people forgot to mail in rebates that total 50 to 100 dollars, Best Buy will make $5000 to $10000 more dollars doing absolutely NOTHING! Looks like I'm in the wrong business! I'd love to just sit on my ass and make a very EASY $10,000! I am absolutely REFUSING to buy anything that requires rebates from now on. I wish everyone in the country will soon do the same. THEN you will start to see lower prices, as they will become desperate for your business. STOP GETTING SCREWED!
Posted by Pat Wheeler on March 29, 2005 12:40 AM
Well...I have some input although it may not be the most welcome on this particular site. My job is managing the Rebates and Sample offers for a Fortune 500 company (manufacturer) that sells it's products through many of the retailers you mention. Therefore, I am in a unique position to give you all some insight to the system from at least one side of the redemption process that you normally don't see.
Most of the complaints here refer solely to the retailer end. However, in contrast to Retailer rebates...there are a number of rebates you'll come across that are not RETAILER sponsored but are actually MANUFACTUER sponsored. They may be promoted via the retailer, but it is being paid for by the Manufacturer. For instance, Company XYZ makes a product that Fry's stocks and now Fry's wants XYZ to sponsor a rebate. Many of these rebates are negotiated by the retailer's buyer (Fry's) and the XYZ company agrees to do this and pays for the rebate as a trade off to obtain valuable off shelf/floor space or gain ad space. These are not cheap for the maufacturer (XYZ) as they have to pay for production of any collateral pieces, insertion fees, set up of the offer redemption, the fees to process the offer (done by a 3rd party) and then the face value and mailing cost of those redeemed. It is also not necessarily something the manufacturer WANTS to do but they are willing to in order to get that exchanged value (floor space, ad, etc.).
Yes money is made by both parties in the form of increased sales during the promotional period (hopefully anyway). However, In respect to non-redeemed rebates,in this case, it is not the Retailer that makes more money (i.e. unpaid rebates in their pocket theory)..it is the Manufacturer who doesn't have to pay as much to cover that promotion. (Of course this is reversed if it is the Retailer who is paying for the rebate.)
I'm happy to confess that the company I work for does not purposefully make rebates difficult to understand or to redeem. In fact it is the opposite mindframe for us. Our "consumer experience" is very highly regarded as a valuable method to stay in business in the very competitive market place we are in...therefore as part of the overall consumer experience we would not care to taint it with a negative rebate process. Our invalid rates (those that don't qualify)are at an industry low of around 8-14% depending on varying conditions. Most of the invalid reasons are truly because the consumer didn't read the terms of redemption which we clearly spell out in larger text with the Mail To address. We also pride ourselves in secondary resolution of those rejected....going above what most other companies are willing to do to approve (force validate) if a consumer calls us with a complaint about their rejection. In fact that is why we prefer to handle all our consumer calls whenever possible.
Unfortunately, the latest trend with the retailers we deal with is to force us to have our rebates managed by fulfillment companies of their choice vs our existing process with vendors who understand our higher standards. This creates a problem as we have little or no control over the offer set up as well as the processing (including rejection) methods and the consumer complaint resolution. I've seen these rebates escalate to a norm invalid rate of 35% and higher with some more recently at the 80-90% when the fulfillment company they used launched an online rebate submission process. What a mess that was. They had to turn around and re-validate every consumer response that they had marked invalid. How nice to receive a rejection postcard and then 2 weeks later receive a check---probably without explanation. What fools we all must look like. Oh...I'm rambling now.
As to the required proofs of purchase. Well believe it or not those are required by LEGAL departments to try to deter fraud and limit risk. I've personally analyzed our data and found consumer fraud even with all the precautions of proof of purchase. I'm also a member of a National Mailing and Rebate Industry Fraud task force along with USPS and FBI. You may or may not be shocked to hear that there are actually people out there who dumpster dive to retrieve UPCs, buy and sell UPCs and offer forms, manufacturer counterfeit receipts and more...all to fraud the retailers or manufacturers for unearned rebates. They use PO boxes (hence the street addy requirement) to try to avoid detection and also to keep their personal assest (house) from being involved as it is a Federal Offense. Many of the fine print terms and conditions you see are because over time companies'LEGAL and Finance departments have had to get involved to add terms to avoid issues with fraudulent claims....NOT to purposefully make it difficult for the average honest buyer to redeem---that is an unfortunate by-product sometimes.
If a rebate requires an original form, it is to control circulation----i.e. you budget for 100,000 forms at a specific redemption rate, but you end up having someone copy them and suddenly your budget is blown. Again it is a LEGAL department requirement to limit risk. You'll see less and less of this since a lot of offers are posted on websites; hence you can't tell a download from a copy.
My company has greatly reduced the volume of rebates it will agree to run because we have not found them to be that effective of a way to market our products. Additonally, our $$ risk has escalated because forms are now printed at the register which alerts consumers who had purchased the product regardless of the rebate to now redeem---further escalating our redemption rates. Hey, we love the names (but only if you've given us permission to contact you), but if the cost is more than our margins can bear, we can't afford to do it. We are moving more to temporary price reductions, instore-instants, and BuyOne/GetOne type offers. Yes, the redemption is 100%, but we don't have to cover the costs of processing, consumer issues, etc., and our consumer is instantly gratified. Unfortunately they think it is the retailer that gratified them when it was us, the manufactuer, that paid for it.
With all that said, let me add that I can't speak for other companies that use rebates as a method to market their products and/or increase sales. Maybe there are some out there that purposefully try to mess up the consumer's claim to the rebate. If so, then they should be boycotted---I fully agree with you there. But, with a little patience and some trial and error you can learn which manufacturer's will go the extra mile for you and then you should reward them with your loyalty.
I rebate for my personal purchases. Of 37 rebates last year I had only 2 complaints. One was for an incorrect amount on the check which I couldn't seem to explain to the call center rep so I just ate it since it was $5. Another was for extremely delayed payment (but I did get it).
Let me close by offering some tips on how to get your rebates paid.
1. READ the offer very carefully before you buy. This is to ensure you bought the correct product and that the rebate is still valid. If it is a form that is printed at the Point of Sale (at the register on the tape) don't feel like you can't ask for an immediate return if you don't like the terms once you've read them.
2. Do not rely on store personel to help you interpret the offer. Many times they will tell the consumer what they want to hear to make the sale. What ends up happening is that when the rebate request gets to the fulfillment company, the qualifying terms were not met. The fulfillment company has no idea that Joe Blo salesperson at the store told you "Oh...don't worry they'll redeem it." Instead call the 800# on the form and ask in advance if there is anything that you need clarified.
3. If you do not think you can meet the timeline requirements stated in the offer (for those who procrastinate) don't buy the product based on the rebate price. Our rule of thumb is to allow any responses that come in up to 3 days late without question. Any after that are denied. I don't know what other companies allow but my guess is what you see on the offer is what they enforce.
4. Make copies of everything before you mail. A proof of mailing (available at the USPS for $0.85--unsure of exact cost) goes a long way to prove that you mailed it within the required timeframe (darned postmarks!!!). It may not make sense for a $2 rebate but it sure would for a $50 rebate.
5. If you are a return addict (and you know who you are), don't buy based on after-rebated price. Companies do not allow returns of items with missing UPCs because this is one way a consumer can fraud the company (i.e. apply for the rebate and then return the product for the purchase price). Also, that is a costly return for the manufacturer because the item can't go back on the shelf but must be sent back for repackaging. If it is an item you want to return due to defection and they give you a hard time because of no UPC then the least they should allow is a replacement item. If they still refuse, file a claim with the BBB.
6. Know who you are really dealing with on your complaint and be nice to that Consumer call Rep. If you are nice and easy to help they will be more willing to go the extra mile. If you don't feel that you are getting your due attention ask them POLITELY to speak to a supervisor and so on. Remember, sometimes you are dealing with a 3rd party....a fulfillment company who is also handling the complaint calls for the rebates. They are just following guidelines set up for each offer by the company sponsoring the rebate (retailer or manufacturer). They do not necessarily have the power to change your rebate status---so be patient as sometimes they also have to do some digging and calling. If you can't get resolution with the fulfillment center/3rd party...start complaining to the retailer and the manufacturer. If the form or receipt says "Manufacturer Rebate" start with the Manufactuer.
7. Do your homework before you call. Know the FTC regulations on how quickly rebates should be paid and don't be afraid to quote it if the delay has extended payment past the acceptable timeframe. (Sorry I don't have that info on hand or I'd add it for you too).
8. There is a rebate tracking website that you can use for free. I think it is Rebate-Tracker.com . You can log in all your rebates and track them so you know when to follow up etc. (of course this is for hard core rebaters but most of you seem like you've given up on it so maybe it is moot).
Good Luck. And just keep asking---you'll get it if the company cares at all about your business.
Posted by Missy on April 7, 2005 10:34 PM
Epson/Fry's owes me for a $50 rebate...EVERYTHING is correct...and timely.
BestBuy beat me for $150 on a monitor last year and I will not let this happen again...and BB will never see my money again.
Instead of Terry Schaivo, our congress should flay these people.
Posted by gregg bratt on April 14, 2005 9:50 PM
I hate rebates also because I'm a customer, not a bank offering loans. Imagine if every business offered a rebate? Your haircut is $20 but if you fill in this rebate and wait 6 weeks you can get it for free.
Posted by JT on July 22, 2005 4:36 AM
i object to being screwed with all the computor and electronic dealers with their rebates.. I dont know how to beat it since all the stores do it .. is it a conspiracy that will spread to all other products to screw the consumer??
we should ask our congressman to make a law to outlaw the prectice
Posted by levine on December 9, 2005 12:22 PM
I was ripped off by Circuit City also and have to talked to several others who were told they would recieve a product free through the rebate. The rebate forms printed out as two separate forms and were only honored by the manufacturer as one being valid and could not be used in conjunction with the other. Is there anything we can all get together and do? Respond to borntorun62@hotmail.com. I have been advised a class action lawsuit is well in order.
Posted by Tammy on January 23, 2006 9:34 PM
OK all of you people need to get lives and stop complaining to get rid of rebates. If you hate them so much why do you keep applying for them.. "I just bought it for the rebate" If I want to buy something I will pay the price regardless if theres money back. If I dont get it fine. I am not going to call everyone down over it. I admit I work in a rebate center. I love helping my customers get there rebates provided they do everything correctly, which includes keeping copies, That has to be the most important thing. I will also admit that we handle several different rebates (staples, circuit city, officemax, ace etc… ) So for example if you were to purcahse a san disk, HP, playo etc. most of the time they do not come to our center. When you apply on staples easy rebate they are directed to different centers that process the rebates. If you were to look at your rebate form they would say mesa arizona, and not to our centers in el paso tx, or miami FL. It is just a system so you dont have to go through the hassel of mailing them in. But to get information on them you must call there center and not Staples. Stop telling us we have to deal with it, because really its not our problem, HP/ San Disk, who ever will handle it. If they wont unfortunatly its not our problem.
We have 2 locations that you may be speaking with. Guatamala has to be the most stupid people, and I would reccomend asking if your canada or guatamala because they NEVER provide the correct information, and you guys are the ones paying for it. Trust me I know. I have went into sooo many records that the have screwed over royally.
Any one who has purchased they products between 11/25 and 12/31 there was a 6-8 week period because we have hundreds of thousands of rebates coming in. Same as faxes allow at least 2 weeks for them to be updated. Especially now since Guatamala is handling them and they dont know how to do faxes. Sorry to admit but it is probley getting deleted if its to hard for them to understand.
I would really recommend for the most part mailing them into us. to our resubmissions address.
I forgot one more little thing, will you please stop telling us to get real jobs. We live in a very small community that the only thing that is keeping us going is our Mill thats is on the verge of shutting down. Just last year our hospital lost 37 beds. I am a nursing student trying to work my way through school. They are teachers, accountants, welders and electritions (the list goes on) who work there but with out leaving the town we love soo much this is our only option. So stop calling us down saying we are all a bunch of uneducated junkies looking for our next fix. We have families that we love and need to house, cloth and feed
Posted by Jenny on February 27, 2006 2:31 PM
I work for a rebate company called YA out of Mesa AZ and Young America, any idea how i can help take down these lying, cheating and stealing fraud artists?
Posted by Anonymous on June 21, 2006 7:23 PM
Well Boys and Girls, here is yet another voice to add to the din. I'm in the process of being screwed at this very moment. I claimed two rebates (yes, two are allowed according to the rebate form) on ATI graphics cards. The return address on the denial/resubmission postcard contains Young America, so I presume that Young America is the rebate processor. The reason stated for denial is that I failed to provide a valid original upc. BS. I have copies of everything, a witness, and, I taped the upc cutouts to each form! I made two separate mailings, but do you think the form tells me which one is disputed? No.
Among those that I've written to so far, is Buy.com - the folks from whom I made the purchase. To their eternal credit and my great surprise, they have voluntarily credited my Visa card $60.00 dollars, even though I'm only disputing one of the two $30.00 dollar rebates! This came from their customer service folks and was not anything that I asked for. That my friends, is customer service above and beyond. I am happily doing what I can to publicize this. Do you think they have earned my future patronage? You best believe they have. In fact, I'll purchase from them even if I pay a bit more. To quote Warren Buffett, "Price is what you pay, value is what you receive". Amen.
I'm also going to add the email that I wrote to my congressional representative to the end of this post-- and no, I have not heard a word in response, but, what's the surprise there? I filed a complaint with the FTC and at least got acknowledgment, though I might drop dead from heart failure if they actually took any action! I've emailed KABC News, KCBS and KNBC, plus the L.A. Times. I'm trying to find as many appropriate places to post as possible as I am fed up.
This has all the hallmarks of co-ordinated efforts to enrich someone at the consumers expense. I would gladly join a Class action lawsuit-- but it will be the lawyers that benefit the most. What we need is legislation with teeth, something I doubt we'll ever see considering that, - a) this would likely cost the Government tax dollars, and -b) lobbyists would just "influence" our "Representatives". I strongly suspect that there is financial incentive at the rebate processors to deny some carefully chosen percentage of claims. So many things are numbers games and they know that the odds are in their favor. Even if they are caught red-handed, it seems unlikely that the real culprits will do any serious time. Who said crime doesn't pay? Bernie Ebbers, the architect of one of the great robberies of all time, is still not in jail due to the appeals process. As far as I know, he walks around as free as you please. If he were small time, or worse yet, a minority, he would be buried so deep in jail that you could not find him! And for a far less crime at that. Could be he's hoping to delay as long as possible and then go Ken Lay! Sorry, I know that's cold. It's very disheartening to be so cynical I grant you, but try as I may, I just can't deny what is so obviously true.
The email to my elected Representative. By the way, this was sent from his webpage.
Dear Mr. Rohrabacher,
I'm writing to ask what I can do to help push for legislation to regulate rebate processes. The current state of affairs is a travesty. My most recent disappointing experience involves ATI Technologies. I have documentation that the two rebate claims I submitted met all stated requirements. In addition, I have a witness to my physical actions. These claims were mailed 05/31/06. Today, 07/17/06, I received notification in the mail that my submission was declined. I called the rebate center and was told by the first representative I spoke with that no, the denial card was mailed out by mistake, that my claims were valid, but that I had to wait the full 10 to 12 week fulfillment period. I asked for assurance that the mailed notification was in deed in error, and was told "if you don't receive both checks in the next few weeks, re-submit your claim". Well, I suspect that this too would result in denial as of course the time to submit would be over. I didn't give the 10 to 12 weeks too much thought at first, but upon reflection realized that 10 to 12 weeks seemed unusually long. Sure enough, the terms specified on ATI's rebate form stated 6 to 8 weeks. All of these time frames are ridiculous and nothing more than using customer's money to earn free extra returns. Where is the customer's compensation for lost return on investment? This truly infuriated me, being lied to, so I called back asking for a supervisor. After getting through to a supervisor, I was told that only one of my claims was being processed as valid! This is not acceptable, so I asked for her supervisor. After waiting on hold for several more minutes, the call was disconnected without any warning.
Now I'm well and truly angry and the time for talk is over. I fully intend to post this communication on line in as many places as I can find because I want as many people to see this as is possible. This is the proverbial straw that will push me to install the ability to record my conversations. The next time something like this happens, I'm going to have a recording to post in on line blogs just as did Mr.VIncent Ferrari in documenting his ordeal with AOL. That got some action!
I'm betting that something similar has happened to many folks regarding rebates. I can't help but wonder how many legitimate claims are denied that people either forget about, didn't document, or can't take the time to pursue. It seems that so many things are "numbers games". I would not be surprised to find that a percentage of claims are arbitrarily denied just to play the percentages. I consider this nothing less then outright theft, and I feel that this is at least tantamount to mail fraud.
I will be happy to forward any documentation that may be helpful, or assist in any way I can.
Posted by Aaron Addington on July 24, 2006 6:53 PM
I hate rebates also. I do not buy items with rebates and I tell the store why I am not buying the item.
I think I know why companies use rebates. I figure, from experience, that the consumer will not send in the correct information.
Also, people forget about their rebates because a person normally has to wait eight weeks for the fricking rebates.
Posted by Timothy G. Boudreaux on August 20, 2006 11:41 PM