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FTC Tells CompUSA to Pay Up QPS Rebates
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."
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.
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.
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.
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