Legal rights
15 April 2010Cash-back schemes
Cash-back offers are common, especially when it comes to computers and printers. Rather than drop the price of an item, some manufacturers differentiate their product from the competition by offering say $100 or $200 cash-back "via redemption".
But it seems that in many cases, redeeming the offer isn't as simple as people are led to believe in the store. We've received many complaints from members struggling to jump through the hoops required to get their cash back. In one case, a member waited over six months to get their money, and that was only after we got involved.
Another member recently bought an Acer computer with an advertised $100 cash-back offer. He first registered the computer warranty online, then received an email to redeem his $100 at another website. When he filled out the online form, he was asked to post a copy of the claim form, a copy of the invoice, and a cutting of the barcode on the side of the box. But he'd already thrown the box out and Acer told him he couldn't claim the cash-back without the barcode.
Acer says it needs this information to make sure a claim is valid, that the barcode sticker on the box could be (and in some cases has been) copied or photographed in store to make a fraudulent claim, and that's why it requires the original.
Who's responsible?
Acer says it's the retailer's responsibility to make sure the instructions and the terms and conditions for the cash-back offer are given to the customer – if not, it says the retailer is liable.
On the other hand, many retailers have told customers to take their cash-back problems to the manufacturer – that it's the manufacturer's offer, not theirs, and they have no responsibility for it.
This isn't good enough. Squabbling between the manufacturer and retailer over who’s responsible shouldn't be the concern of the consumer. Retailers are the manufacturer's agent and if they're advertising and selling products with cash-back offers, then they should take some responsibility for ensuring their customers get their cash-back. Would it really be so difficult for them to phone up the manufacturer and say, "We'll vouch that Mrs Jones bought computer serial number XYZ on this date. Please give her the cash-back"?
Even the Commerce Commission says "we are cautioning retailers selling computers and computer manufacturers that they are pushing the boundaries" of the Fair Trading Act, which says consumers can't be misled about a product or service.
Before you consider a cash-back offer, ask yourself if it's really worth the hassle. Make sure you read the terms and conditions of a cash-back offer carefully – the devil could be in the detail.
Marc Wendelborn, Research Writer
Comments
After the hassels with cash back offers (I gave up in the end on one offer as it wasn't worth the stress and trouble) I now actively avoid any products offering a cash back and I suggest other consumers should do the same then it will disappear.
If the product is discounted it should be up front and immediate. I believe this system is in use as very few cash backs actually reach their conclusion and it allows the product to be offered as what looks to be a lower price.
I'm with Dennis on this - I have purchased printers etc several times with cash back deals - at best I finally got the cash 3 months later, at worst this took repeated phone calls and emails.
I suspect they factor in people giving up on the process - it's shoddy business practice and as Dennis says - why not offer the discount up front on the purchase price..
I purchased an HP printer that had a $200 cashback which made the purchase very attractive and I wanted the printer offerred. Cash back "Visa Pressie Cards" arrived afer 75 days as promised. So I am satisfied - however it does seem to be a circuitous process. I too has to cut out a barcode from the printer box which was difficult adn ridiculous. The deal needs to be completed by the retailer on the spot so that everyone gets what is promised.
We purchased an HP printer with an $50 cashback. The advertising said we would receive the card within 75 days of sending all the stuff in. It is now about 100 days later and no cashback. The retailer refuses to deal with the problem, and has told us we need top contact HP. Emails to HP go unanswered, and the phone number they have is just an automated helpdesk, and there is no way to speak to a real person. Pretty shabby HP. I won't be buying another HP product again, if they can't sort out a simple cashback process.
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