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FTC Tells CompUSA to Pay Up QPS Rebates

Posted by ryuzaki0 on from the check's-in-the-mail dept.

prostoalex writes "FTC told CompUSA they will have to keep their word on paying out rebates for QPS equipment purchased at CompUSA. QPS is currently bankrupt, according to the article, although it's not clear whether they went out of business before or after the promised 6-8 weeks deadline came. CBS MarketWatch says this should spur rebate re-evaluation among other electronic retailers. The habit of offering rebate incentives seems be especially notorious in the consumer electronics and computer hardware industries as a third of shoppers for such goods bought a product with a rebate offered. Reason for such popularity? 41% of shoppers never send in their rebates."

8 of 324 comments (clear)

  1. Just ban rebates by Anonymous Coward · · Score: 5, Interesting

    Rebates serve 3 purposes. One is to take advantage of people who don't send them in. Another is to trick people by offering rebates that expire too soon for people to actually get them (see Tiger Direct - rebates often expire in a few days). And lastly, in a corporate environment I've heard of _people_ getting rebates for corporate purchases - this amounts to a way of bribing purchasers or other such corruption. If you want to offer a discount, just reduce the price. There's no ethically decent reason for rebates.

    1. Re:Just ban rebates by sosegumu · · Score: 3, Interesting

      Rebates serve 3 purposes. One is to take advantage of people who don't send them in. Another is to trick people by offering rebates that expire too soon for people to actually get them (see Tiger Direct - rebates often expire in a few days). And lastly, in a corporate environment I've heard of _people_ getting rebates for corporate purchases - this amounts to a way of bribing purchasers or other such corruption. If you want to offer a discount, just reduce the price. There's no ethically decent reason for rebates.

      Rebates are also a way of squeezing out smaller competitors. I'm a VAR reseller who makes most of my money with services but we can usually match or beat Dell's price on an equivalent computer. But it's hard to compete with a $100 rebate on a $500 machine.

      Of course I *could* offer rebates too, but obviously I can't risk losing my customers by pulling the kind of rebate shennanigans that apparently go on.

      --
      It's easier to wear the spandex than to do the crunches. --David Lee Roth
  2. I deliberately don't consider rebates when buying by rollingcalf · · Score: 4, Interesting

    The article said 41% of consumers don't send in the rebate paperwork. Well I send in close to 100% of mine, and I fail to get the checks for about 41% of them. So they will maintain their 41% non-payment rate one way or another.

    Now I stop thinking about rebates before purchasing and only buy based on the full price. If one thing is plain $50 and a similar product is $60 with a $20 rebate, I'll buy the $50 one.

    If I do buy something with a rebate, after buying I'll send in the papers and hope to receive the money and if I get it, it's a bonus. But I won't factor it into my purchase decision because I don't trust that I'll actually get it.

    --
    ---------
    There is inferior bacteria on the interior of your posterior.
  3. Re:Common sense by wk633 · · Score: 5, Interesting

    I read the directions and send them in religiously. Got a card back from Belkin saying I hadn't sent in 'some required information'. Not enough info on the card to tell me what information, or what rebate, or when. So what the hell do I do? Stop buying Belkin is about all I can do.

    I get 90% of my rebates back, but those that I don't- I really have no recourse, and it's a ripoff.

  4. The State Goverments likes it that way by Anonymous Coward · · Score: 5, Interesting

    They really have no incentive to change it. Since the rebates NEVER refund the taxes, the states get a extra windfall in taxes.

    It just another conspiracy to collect more taxes.

  5. Do not forget those who live outside the USA... by InvalidError · · Score: 4, Interesting

    1) Mailing the claim can cost as much as $10 with reception confirmation and other such options... make that $2 for plain enveloppe and international postal charges.
    2) Cashing the refund can cost over $5 for people without USA-funds banking accounts.
    3) Most rebates I have seen have a disclaimer that says they will be honoured at the manufacturer's sole discretion.

    Because of this, I only buy into rebates when the base price suits me - FutureShop having a $110 CDN Audigy2 sale plus $45 mail-in is nice when the next lowest regular price around is $115 - this is how I discovered that USA rebates cost about $10 to claim... so that $45 rebate barely covered taxes, postage and cash-in costs so the card cost me about $110 net.

    All in all, rebates are annoying and doubly so when they are in some other funds, not worth bothering with if under $20 - I prefer waiting a little longer until the "rebate" price becomes the regular price since rebates usually mean pending price adjustments and new models.

  6. Re:Common sense by Eccles · · Score: 3, Interesting

    Six months ago, PNY claimed I didn't send the UPC from the product for a $30 rebate. How do I prove otherwise?

    --
    Ooh, a sarcasm detector. Oh, that's a real useful invention.
  7. Re:Rebates should be illegal by M.+Piedlourd · · Score: 5, Interesting

    They (the gov) don't even have to outlaw rebates. Just make it false advertising to put prices in ads or store displays with the rebate amount already subtracted.

    We have a law in Connecticut that deals with this. If a retailer advertises a price for a product, they must accept that price at the point of sale, whether or not that price includes in small print "after rebate." So if Crazy Bob's Komputer Outlet wants to sell RAM chips for "$1.99!!!*" they have to take $1.99 at the register. If they want to offer a mail-in rebate, they have to advertise the product as "$91.99 with a $90 mail-in rebate!!!!" We also have a litigious Attorney General who is pretty zealous about enforcing this law, so we find that it accomplishes its purpose.

    * after rebate