Rebate or Rip-Off?

by THUY TRAN

Everybody likes to save few bucks out of their spending, but sometimes saving money can be expensive. I have had few experiences with mail-in rebates which were offered from hardware and software manufactures. In september 1997, I bought a Best Data modem from Comp USA with a price of $92 and it had a $40 manufacture mail-in rebate. I filled out the form, attached the UPC code from the modem box and original receipt and mailed them to the Best Data Rebate Center. I waited and waited, but my mail-in rebate check never came to my mail box. During the Thanksgiving break in 1997, I decided to give them (Best Data) a call and also wanted to check the status of the rebate. Their customer representative said that I had to wait at least 3-4 months to receive the rebate check. However, it has been about 13 months and I have received nothing from Best Data. Are they lying to the consumers? or did the mail just get lost? Or paperwork mix-up? No one knows what would be a reason.

Another example is from the Farmington Hills accountant who bought a $199 Iomega Zip drive which offered him a $50 rebate. He filled out the rebate form, clipped the UPC code from the box, attached his receipt and mailed them to Iomega. And then he waited. And waited but he heard nothing from Iomega after six weeks. He called the Iomega customer services. The company made an excuse of the "overwhelming" response to the promotion. They asked him to re-submit his documentation. He did what they said and called them back after another six weeks. The representative apologized and told him that he expected to receive his rebate check shortly. After seven months battling with Iomega, he finally got his rebate.

According to the study of PC World magazine, they found that there are a tremendous complaints about rebate promotions offered by Microsoft, NEC, Phillips, US Robotics and many others. Many complaints were about delays and relating to Iomega's rebate program. Although the specifics products and offers vary considerably, the complaints are remarkably consistent: misleading promotions, lengthy delays in processing checks, and paperwork mix-ups.

Fraud is rarely the issue with tardy rebates. Most of the problems can be chalked up to poor planning. Hardware and Software companies are hoping that although rebates will entice consumers to buy their products, most people will never actually get around to dealing with all the rigmarole required to redeem them.

"Although no federal regulations specifically govern rebates, at some point repeated delays become a material misrepresentation", says Allen Hile, assistant director in the Federal Trade Commission's division of marketing practices.

So what would you do? Would you buy a product with a regular price or a price with mail-in rebate?

Read more about this issue in the next article, "How To Get the Most From Rebates

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