Cash-back schemes are a popular way of grabbing people’s attention, particularly when it comes to computers and printers. But is there more to them than meets the eye?
Late last year the Commerce Commission urged consumers to approach cash-back offers with caution. It cited a “significant number of complaints from consumers” who attempted to fulfil the cash-back offers only to find the process wasn’t nearly as simple as they’d been led to believe. In many cases people were being forced to jump through hoops or wait for months before seeing any money.
We’ve also received complaints from members about various cash-back schemes. One member purchased a Hewlett Packard laptop in April last year based on the $200 cash-back offer. Six months later she got in touch with us, saying she was still struggling to get the money, and feeling like she was being “fobbed off with excuses”.
We had to get involved before Hewlett Packard contacted our member to apologise and offer a free MP3 player for her trouble. This isn’t good enough – consumers are being led to believe the process is simple and occurs within a reasonable timeframe.
My advice? Avoid being tempted by cash-back offers! If you really want to go with one, carefully read the terms and conditions – there’s bound to be a lot of small print.
One important thing to note: because the offer is being made by the manufacturer, many retailers are refusing to deal with any problems that arise. Legally they can do this, although the Commerce Commission doesn’t believe they are able to step back completely.
Before you let one of these deals influence your buying decisions, stop and ask yourself: is it worth all the potential hassle?
A few tips
Here are some tips from Choice (the Australian counterpart of Consumer) about dealing with cash-back offers.
Has anyone else been burned by cash-back offers? Still waiting to get your money? Let us know by posting below!
Tristan Clark - Technical Writer
Enjoy the blog? Join the Consumer Facebook fan page.
Purchased an HP Notebook last year and posted off the $100 Cashback form (which I printed off) well before the stated time.
No payment has been received to date, but when I phoned last week, was told that it would be 4 to 6 weeks for the payment to be sent -- said that some mail had been lost. Amazing, as that was part of the advertising.I am waiting for my cheque!!!!!!!!!!!!
Last year I purchased an Acer laptop and went to the Acer NZ website to file the claim. Up comes a screen trying to replace the cashback offer with a (second) year's insurance - doesn't the company have faith in its own computers? Brushed that aside and proceeded with the claim, only to find I had been directed to the Australian site, which was for Australian residents only! Fortunately, DSE was able to direct me to the well-hidden NZ claim site. Since then, Acer has corrected the erroneous redirection.
Purchased a HP laptop in October 2008 for a small business and received cashback Cheque in the mail Sat 7th March 2009.4 1/2 months later. Haven't banked cheque yet so hope everything is OK and above board.
Purchased a Compaq laptop in mid November last year and still waiting for $100 cash back which a confirmation email from HP claimed would be deposited in my bank a/c by 12 Feb 2009. Have phoned & emailed (twice) - was told my bank a/c no. was incorrect (but it wasn't). Would never purchase on this basis again!!!!!!!!!!
Have just rung the 0800 number again (in Sydney) to follow up on the $100 cashback still not received - was told would take another 3-4 weeks!!!!!!
I've always ated the idea of cashbacks, and never bought a product offering one. I did however contemplate that if i ever was tempted I should tell the shop I would buy the product , but only if they deduct the cash back and they can fill in the formsand jump through the hoops to claim the money back for themselves. So overall, if they receive the cashback, they'd be no worse off - but the hassle rests with them.
I purchased an Acer Extensa 5620 laptop with a $99 cashback from Dick Smith in Dunedin, New Zealand, last September. I have just received a cheque for the cashback after five months. During that time I have been subjected to a complex series of apparent delaying tactics, the latest of which was that my cashback had been cancelled because I had now elected to accept an extended warranty. This was, of course, nonsense. I am intelligent, cautious person, and I followed Acer's cashback instructions to the letter. I kept copies of everything, including my communications with the company which were only in writing. I have formed the clear impression that Acer intentionally creates obstacles in the claiming of cashbacks, and that, while this may not technically be fraudulent, it is nevertheless a nefarious business practice. If you have any doubt about my concern, I suggest that you Google 'Acer cashback'. I have made a complaint to the Commerce Commission and the Australian Complaints Board, and I have notified "Fair Go". Anyone who is attracted to purchasing an item because of the cashback should check very carefully to ensure that the advertised scheme is kosher. I am sure that there are some perfectly legitimate cashback schemes available.
I purchased an HP laptop in November last year I got an email saying I could expect my $100 cask back by 1/2/09. It's now 15/3/09 and I'm still waiting. For those of you who finally got your money do you have any tips?
My purchase date of an HP PC was 20/9/08, I immediately sent all my details for the cashback, received my first confirmation email from HP on 24/11/08 to say that my claim had been processed, and to advise my cheque would be received 7/2/09. This date came and went, then I received an email saying that I only had a short time to send in my cashback claim!! so I sent back my confirmation email from them. Got no reply and this is when I started sending an email quite regularly demanding that my cheque be sent. I finally received my cheque last week. I would not be tempted by a cashback ever again. I think they depend on people giving up or not claiming in the first place. Why don't they just reduce the price by the amount of the cashback, and save everyone all this hassle and bad feeling towards the company. It is not good publicity for them and certainly not good customer service.
I too have had the cashback offer, I duly filled in the details, posted the paperwork off to some Aussie address, and was pleasantly surprised to have the cheque arrive in my mailbox well within the noted timeframes. The purchase was an Acer computer, so I can quite happily report to all and sundry that this one worked! I think some of these companies, if not all of them, to some extent rely upon we customers just not bothering with the process. I'd heard bad reports about these cashback offers before I purchased this computer so was determined that there would be at least ONE customer who was going to pursue the matter. I'm very pleased with the outcome.
I purchsed an HP printer from Harvey Norman Early November,
I did all the filling in of details and sent it off. Had no reply within two months and contacted Harvey Norman who admitted the contract was with them. A month later still nothing so went back to Harvey Norman taking the receipt. Was then told I needed documentation that I had sent the details to HP. I then went back with the email confirming registration and they said this was not enough detail.
I then advised the manager I would take the case to court and at that stage they put the refund into my Mastercard account.
My husband died last yr and I needed to take a death certificate into Vodaphone to cancel his mobile phone. He had set up the contract for mine and even tho they had had the death cert.for his, they told me I couldn't take his name off the billing unless I took another cert. in. When I tried to contact them to take it further I ended up in a call centre in Cairo ! I then phoned Consumers Institute and was told that they would get in touch with V'phone PR man who promptly phoned me full of apologies. All sorted out and I have been given 6 months credit by V"phone. Many thanks to Consumers Institute and 'Top Marks' to Vodaphone. What would we do without you Consumers Institute
Megan Jenkins
On 12 October last year I bought a Hewlett Packard dv5-1005TX laptop computer that came with a $100 cash back promotion. Their promotion said “Once your claim has been received and verified, please allow 75 days for receipt of your promotional offering”.
That same day I submitted my claim online which was immediately acknowledged by Hewlett Packard. I sent in the documentation that they required and waited,...and waited,...
After 108 days I received an email from them saying:
"Your reward for HP Cash Back Blizzard NZ has been processed.
Thank you for participating in HP Cash Back Blizzard NZ. HP is happy to inform you that your reward has been processed and should be received by 10/04/09. Please see below for fulfillment details."
Clearly I am being screwed around. They received the details online 108 days before, so nothing had to be processed as it was all computer-done; they received a copy of the receipt etc as they request about 4 days later at which stage they had to just check it off and send me the cashback. This does not take another 104 days!
And they have the audacity to say that I would have to wait almost another 3 months to get what they should have paid a month earlier! I emailed them pointing out that I was far from happy with them.
Then today, about 2 months later, I received email from them saying:
"Due to the overwhelming response to HP reward programs some delays may have been experienced when responding to your enquiry.
A large number of payments and products have been dispatched and we would ask that you check your bank statements for the last quarter for any payments referenced ‘HP CASH’ or ‘HP CASHBACK’."
What? Don't they even know if they have paid me or not? Clearly I am being given the run-around and there is no record in my bank account of having been paid by them.
The email also said:
"How to Check the Status of Your Claim
You can check the status of your claim by visiting www.hp.co.nz/retailpromotions and select the promotion you entered and click on ‘CHECK CLAIM STATUS’. Enter the email address and password you used when first completing your claim online or your claim code on your email confirmation document."
The site that the link takes you to does not have a ‘CHECK CLAIM STATUS’ to click on. A search of all of their promotions on that site does not have anything relating to the cash back scheme for the dv5-1005TX computer I bought.
I wonder if they will ever pay up.
I'm about to buy another lap top for my son. Guess who isn't on the list of prospective suppliers? They won't be on the list when my wife, my other son or I buy another computer - or the ones after that. Screw your faithful customers HP, and it will cost you one hell of alot more than $100!
I bought a laptop from Smith City with a cashback offer. I duly photocopied and sent all the information on to Australia and have not heard a thing. I have read and heard about the difficulties experienced by others and after reading the Consumer article I guess it is not worthwhile even persuing. I wont be returning to Smith City again!
I too have been waiting since sept 2008 for $100 cash back from HP. It has been somewhat heartening to learn that everyone is being told the same stories. I will continue to pursue this and will never buy a HP product again and NEVER a cash back from anyone
Good Luck everyone
I bought my HP computer from Harvey Norman in August 2008. I am still awaiting my cashback offer even though I received an email saying that it would be processed by the end of February due to the overwhelming response. I won't hold my breath by the sounds of it!
I purchased a Compaq laptop in October last year with $100 Cash Back deal; did the online entry and posted off the form. Have enquired 4 times and been told claim was 'pending' but finally received an email today stating that claim was declined because they did not receive proof of purchase.
This is rubbish. I am going to take this further. Have already contacted Fair Go.
Bought a Compaq Desktop in May 2008 from the Stationery Warehouse. I received the $100 cash-back in a reasonable amount of time as stated in the cash-back offer.
Guess I am among the lucky few to have a positive experience about 'cash-back' offers.
I bought a HP pavilion dv5-1006TX laptop from Noel Leeming Sept 08 and sent everything to cash back. i waited 3months- way longer than the "maximum 75days to process" i called HP and been told that they were extremely busy and they will process my cash back as soon as possible. I received an email from HP the next day with all my correct details and says that i will receive my $200 cash back before 21 Feb 09. 6th April i emailed them and been told I will get a repay in 72 hours. more then a week later, I still didn't received anything so I called them and i've been told that the payment had been made in 21 Feb and had been returned to them. I insist them to read the account number they "paid" into which is wrong bank, wrong branch number with right base number and suffix. This is ridiculous, I still have the confirmation email i received from HP with all my correct details on it. I've been told I will receive my $200 cash back definately in less than 2 weeks. now, two and a half weeks later, im still waiting. im so pissed off and decide to take to the next level.
I seem to be having the exact same problem as many of you. I too brought an HP laptop back in October 2008 and sent away my details for cash back that same day. I received an email saying thanks and it had been processed. It is now May and I have rung the 0800 number about 15 times and keep getting told they have lost my bank account details so I provide them again and again and again but STILL have not received this. WHAT ELSE CAN I DO!?????
I Brought a new HP computer October last year, I did not buy it just because of the $100 cash back, However i sent thru an application for the cash back.
when I called HP 2 weeks ago to see were it was they said they couldnt send it to me because of my address, so i gave them my address agian and still havent recived anything from them.
I hope people that are in the same boat as me are goign to do something about this, and i would appiratite it if the consumers instute could help us out.
I also bought a laptop last year and still waiting for the cash back. It all seems a bit f a con. Can no one help us and expose this> I went into Dick Smiths and they were very uniterested. Not great service. It is a marketing ploy that we have been tricked into
Here is a quote from auctions on TM by NZLaptops. "Seller Comment: All items are to be considered second-hand (ex-lease or refurbished) unless listed as brand new items. Under the consumer guarantees act we have the right to replace, repair or refund at our discretion. We do not have to give a refund in the event you have changed your mind about a particular item. All returns attract a 20% restocking fee."
My question is, Is the replace, repair or refund at THEIR discretion, and Can they charge 20% restocking fee on ALL returns.
My concern is that businesses are mis-interpreting the Consumer Guarantees Act and consumers are being mislead as to their real rights under the Act.
I am still waiting for my cash back. for My computer purchased October last year.
Purchased a HP Pavilion Laptop filled in the form and sent it off well before 14th November 2008...... and till date have not heard nor got any cheque back from HP..... its been 7 months the leaflet mentioned the cash back would be processed within 75 days.... no news as yet :(
There was a cashback offer running when I bought my Linksys Gateway (WAG160N) in November 2008.
I applied for the $50 cashback by sending off the necessary documentation (within a week of purchasing the unit) and, despite exchanging numerous emails, have still not received payment.
:-(
I purchased a Laptop April 2008 with a $200 CashBack. The online form was filled out and printed off and mailed to HP with the proof of purchase and seriel number details etc. At no point was I advised there would be a "validated email sent" once they received the documentation. Luckilly I kept copies of everything. After a couple of months we discovered it supposedly takes 75 days to receive the refund. Still nothing. I couldn't find a contact number or fax or anything to try chase up my claim. November 2008 came by and I managed to find a postal address and forwarded a letter together with copies to to HP chasing my rebate. I gave up after no response or refund. Over the past six weeks my husband found a note on HP's website about non-refunded claims so I emailed it all through again with scanned copies of all the documentation and notes accordingly of dates posted etc. After a few emails back and forth with a gentleman from HP's nominated company CrossMark in Australia, they are saying a different company dealt with claims before they CrossMark took over late 2008 and all 'validated claims not paid out yet were passed onto CrossMark'. Mine apparently wasn't in there so they are presuming it wasn't validated. An error on the part of HP's nominated companies should not be a reason to ignore my claim. My last email advised this matter is not at an end and I will be contacting Fair Go and the Consumers Institute as well as loding a cliam with the Disputes Tribunal. Fingers crossed!
This is only a preview. Your comment has not yet been posted.
As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.
Having trouble reading this image? View an alternate.
Posted by: |